Description
The report for the financial year 2010 - 2011 of sesa goal.
Sesa Goa Limited
Annual Report 2011
Delivering
Growth
Long term value
Sustainability
Our Values
Entrepreneurship
We foster an entrepreneurial spirit
throughout our businesses and value the
ability to foresee business opportunities
early in the cycle and act on them swiftly.
Whether it be developing organic growth
projects, making strategic acquisitions
or creating entrepreneurs from within,
we ensure an entrepreneurial spirit
at the heart of our workplace.
Growth
We continue to deliver growth and
generate signi?cant value for our
shareholders. Moreover, our organic
growth pipeline is strong as we seek to
continue to deliver signi?cant growth
for shareholders in the future. We have
pursued growth across all our businesses
and into new areas, always on the
basis that value must be delivered.
Excellence
Achieving excellence in all that we do is
our way of life. We strive to consistently
deliver projects ahead of time at industry-
leading costs of construction and within
budget. We are constantly focused
on it with aspiring to achieve a top
decile cost of production in each of our
businesses. To achieve this, we follow a
culture of best practice benchmarking.
Trust
Te trust that our stakeholders place
in us is key to our success. We recognise
that we must responsibly deliver on
the promises we make to earn that
trust. We constantly strive to meet
stakeholder expectations of us and
deliver ahead of expectations without
compromising our other values.
Sustainability
We practice sustainability within the
framework of well de?ned governance
structures and policies and with the
demonstrated commitment of our
management and employees. We aim
not only to minimise damage to the
environment from our projects but
to make a net positive impact on the
environment wherever we work.
Mission
To maximise stakeholder wealth by exploiting
core skills of iron ore mining, coke and
iron making
To constantly seek high levels of productivity
and technical efciency; to maintain
technological superiority over competitors
To aggressively seek additional resources
To maintain costs in the lowest
quartile globally
To be an organisation with best-in-class people
and a performance driven culture by attracting
and retaining quality manpower
To continue to maintain pre-eminent position in
safety, environment and quality control
management in the respective industry sectors
To contribute to the development of the
communities that the Company operates in
or have in?uence on its business activities
Our Vision
To be one of the top four iron ore
mining companies in the world
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
1
Sesa Goa Limited Annual Report 2011
Company Overview
02 Our Operations
03 Highlights
04 Chief Executive’s Statement
08 Board of Directors
10 Creating Shareholder Value
Business Review
11 Market Overview
13 Financial Highlights
16 Business Segment Review
17 Iron Ore
20 Pig Iron
21 Met Coke
22 Human Resource
23 Risks and Uncertainties
Sustainability
24 Health Safety and Environment
27 Corporate Social Responsibility
Corporate Governance
33 Directors’ Report
39 Annexure-A to Directors’ Report
40 Annexure-B to Directors’ Report
41 CEO / CFO Certi?cation
42 Report on Corporate Governance
60 Auditors’ Certi?cate on Compliance of
Conditions of Corporate Governance
105 Auditors’ Report on the Consolidated
Financial Statements
106 Consolidated Balance Sheet
107 Consolidated Pro?t and Loss Account
108 Consolidated Cash Flow Statement
110 Schedules Annexed to and Forming
Part of the Balance Sheet
118 Schedules Annexed to and Forming
Part of the Pro?t and Loss Account
121 Notes Forming Part of the Accounts
137 Notice of Annual General Meeting
Attendance / Proxy (Annexed)
Financial Statements
61 Auditors’ Report
62 Annexure to the Auditors’ Report
64 Balance Sheet
65 Pro?t and Loss Account
66 Cash Flow Statement
68 Schedules Annexed to and Forming
Part of the Balance Sheet
76 Schedules Annexed to and Forming
Part of the Pro?t and Loss Account
79 Notes Forming Part of the Accounts
102 Balance Sheet Abstract and
Company’s General Business Pro?le
103 Sesa Goa Limited Ten Year Record
104 Statement Pursuant to Section 212 of
the Companies Act, 1956
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
2
Our Operations
Sesa Goa is India’s
largest private sector
iron ore producer
and exporter. It also
produces pig iron and
metallurgical coke.
06
01
05
02
01 Codli Mines
02 Sonshi/Surla Mines
03 Bicholim Mines
04 A Narrain Mine
05 Pig Iron Plant
06 Met Coke Plant
India
Goa
04
03
Note: Map not to scale
Major operating mines are shown in the map
Iron Ore Operations
Pig Iron Operations
Met Coke Operations
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
3
Sesa Goa Limited Annual Report 2011
Consolidated Financial Summary
(in ` crore, except as stated)
2011 2010 Change
Net Income from Operations 9,205 5,859 57%
EBITDA 5,214 3,156 65%
EBITDA Margin 57% 54%
Net Pro?t (PAT) 4,222 2,639 60%
Earnings Per Share (`)
Basic 49.17 32.41 52%
Diluted 48.17 31.62 52%
Highlights
Financial Highlights
` Consolidated EBITDA of ` 5,214 crore, up 65%
` Consolidated PAT of ` 4,222 crore, up 60%
` Basic Earnings per share of ` 49.17 up 52%
` Dividend proposed at ` 3.50 per share as against of
` 3.25 per share declared in the previous year
` Strategic Investment – to acquire 20% stake in
Cairn India Limited.
Business Highlights
` Iron ore capacity expansion is progressing well;
planned investment of approximately US$ 500
million for Goa and Karnataka
` Expansion of Pig Iron and Met Coke on track for
completion by Q3 FY2012
` Acquired the upcoming steel plant assets of Bellary
Steel & Alloys Limited for a cash deal of ` 220 crore
` Amalgamation of Sesa Industries Limited with Sesa
Goa Limited completed
` Exploration - Gross addition of 53 million tonnes of
reserves and resources taking the total R&R to 306
million tonnes
0
2000 4000 6000 8000 10000
2006-07
2007-08
2008-09
2009-10
2010-11
Total Revenues (` crore)
0
1000 2000 3000 4000 5000
2006-07
2007-08
2008-09
2009-10
2010-11
Pro?t After Tax (` crore)
0
3000 6000 9000 12000 15000
2006-07
2007-08
2008-09
2009-10
2010-11
Net Worth (` crore)
0
5 10 15 20 25
2006-07
2007-08
2008-09
2009-10
2010-11
Iron Ore Sales (Mln Tn)
0 50 100 150 200 250 300
2006-07
2007-08
2008-09
2009-10
2010-11
Pig Iron Sales (’000 Tn)
0 50 100 150 200 250 300
2006-07
2007-08
2008-09
2009-10
2010-11
Met Coke Sales (’000 Tn)
Delivering Sustainable Shareholder Value
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
4
Dear Shareholders,
2010-11 has been a mixed year for Sesa Goa Limited.
There was plenty of good news. First, the year
saw the global economic crisis becoming a thing
of the past, with both advanced and emerging
economies registering positive
growth during 2010. This
contributed to resurgence in
steel demand. Second, global
iron ore consumption increased
signi?cantly and demand remained
robust throughout the year. Third,
steel output in China continued to
grow, and with it the demand for
imported iron ore and price.
These positive market conditions
contributed to a 52% increase
in Sesa Goa’s turnover. With this
growth, Sesa Goa today is an
enterprise with a gross turnover exceeding US$ 2
billion.
There were also some factors that adversely afected
our production and sales of iron ore. In an efort to
curb illegal mining, the Government of Karnataka
banned export of iron ore mined in the state since end
July 2010. In addition longer than normal monsoons
in Goa and logistics constraints in Orissa and Goa
further afected ore sales. Despite these constraints,
your Company managed to nearly maintain
production and sales volume levels at par with 2009-10.
International developments in 2010-11 has further
strengthened our conviction of Sesa Goa’s strategic
positioning. In the near future, there is considerable
market potential for a low cost producer like Sesa
Goa to efciently service the global seaborne iron ore
trade. There are, however, some external uncertainties
on the supply side, which are causes for concern.
Sesa Goa is continuously working on reorienting its
plans to meet these challenges. In addition, in 2010-
11, we have taken some long term steps and utilised
our strong cash reserves for strategic investments.
The Macroeconomic Environment
It seems clear that the worst is behind us, and global
economic recovery is on its way. After contracting by
0.5%, world output growth is back
in positive territory at 5%. Emerging
and developing economies continue
to drive most of this growth.
Renewed growth has revived steel
demand. Global crude steel output
increased by 16.8% in 2010. This
provided for strong demand pull
right across the ferrous metal value
chain.
China and India are back on their
high growth momentum. India
grew by 8.6% in 2010-11, while
China recorded a growth of around
10% in 2010. There are some causes of concern in
terms of overheating, but the quarter-on-quarter
Chief Executive’s Statement
Delivering
strong results
“These positive market
conditions contributed
to a 52% increase in Sesa
Goa’s turnover. With this
growth, Sesa Goa today is
an enterprise with a gross
turnover exceeding US$ 2
billion.”
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
5
Sesa Goa Limited Annual Report 2011
growth rates still do not indicate
that these two countries will see a
signi?cant slowdown in the near
future.
Nevertheless, there are some
worries. One of these is high
producer and consumer price
in?ation across emerging markets,
especially in India and China. In
the short term, higher commodity
prices augur well for a company
like Sesa Goa. However, high and
rising cost-push in?ation can
cause social problems in emerging
economies and hinder long term
growth. Already, in an attempt to
curb in?ation, the Reserve Bank of
India has increased interest rates
on seven occasions since April
2010 — the last one being a hike of
50 basis points. Such high interest
rates can have a negative impact on
investments and future growth. So
too oil prices, which remain at high
levels.
The Business Environment
As stated in earlier annual reports,
over the last few years Sesa Goa has
developed a growth strategy with
a focus on serving the increasing
demand for iron ore, especially in
emerging economies, but in most
responsible manner.
Consider China. With a reduction
in steel output in that country in
the second half of calendar 2010,
there were fears of a slowdown in
iron ore imports. It turned out to be
a temporary aberration. China was
at the cusp of two diferent growth
phases. Projects that were part of
the earlier ?scal stimulus were being
completed; hence, steel demand
was tapering of. However, from the
beginning of calendar 2011, China
has launched another round of
economic growth initiatives, with
the focus on social housing and
infrastructure, especially railways.
This has led to major growth in
steel output in China in Q1, 2011,
which has increased both iron ore
imports and prices. This phase of
’steel-led’ GDP growth is expected
to continue in the near future, with
high demand from the construction
industry. In the long run, however,
there will be some slowdown in the
Chinese steel sector as the country
matures into being more consumer-
driven economy.
We are optimistic that the strategic
positioning of Sesa Goa with its low
cost capabilities, easy accessibility
to ports and strong customer
relations will hold us in good stead
to mitigate any downside risks and
exploit the upside opportunities.
I have touched upon the supply
side constraints that we faced as an
Indian iron ore mining enterprise.
The other major iron ore exporting
country like Brazil, also faced issues
regarding environmental clearances
and port logistics. Thus, there were
global supply side constraints in
the seaborne iron ore trade. Hence,
in an environment of fast growing
Chinese demand, the prices of iron
ore increased in the latter half of
2010-11.
Performance
The Company sold 18.1 million
tonnes of iron ore (20.4 million
tonnes on a wet metric tonne or
WMT basis) in 2010-11, which was
marginally lower than the 18.4
million tonnes of iron ore (20.5
million tonnes on a WMT basis) sold
in 2009-10. However, external sales
revenue from iron ore increased by
62% — from ` 5,170 crore in 2009-10
to ` 8,387 crore in 2010-11.
This trend was replicated in the
pig iron business. Although sales
volumes decreased by 5%, external
sales revenues grew by 22% to
` 674 crore in 2010-11.
Sales and production volumes of
metallurgical coke (met coke) were
almost similar at 252,074 tonnes and
263,269 tonnes respectively in 2010-
11. External sales revenues increased
by 6% to ` 152 crore in 2010-11.
Sesa Goa’s net income from
operations grew by 57% to ` 9,205
crore in 2010-11. EBITDA by 65%
to ` 5,214 crore in 2010-11. PAT
increased by 60% to ` 4,222 crore,
and diluted earnings per share grew
from ` 31.62 in 2009-10 to ` 48.17 in
2010-11.
We remain focused on cost control
and productivity. These eforts have
helped to partially ofset the higher
export duties paid out in 2010-11.
Healthy accruals during the year
contributed further to our strong
cash position. As of 31st March,
2011, Sesa Goa had cash and cash
equivalents of ` 10,682 crore. We
have used this healthy cash reserve
to make commitments to strategic
investments that should generate
high returns and diversify the
Company’s business — to which I
now turn.
“We are optimistic that the strategic positioning
of Sesa Goa with its low cost capabilities, easy
accessibility to ports and strong customer
relations will hold us in good stead to mitigate
any downside risks and exploit the upside
opportunities”.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
6
Strategic Developments
We have made two long term
commitments in 2010-11.
The ?rst is a commitment to buy
20% stake in Cairn India Limited
(CIL) as part of the Vedanta Group’s
bid to buy majority stake in that
entity. The value of the 20% stake
is estimated at around US$3 billion.
This will be a ?nancial investment
for Sesa Goa that provides the
Company an opportunity to earn
superior returns in an investment
in a leading hydrocarbons
enterprise, which will bene?t
from value creation as part of the
Vedanta Group while providing
the protection of participating in a
controlling interest.
The proposed takeover by the
Vedanta Group is presently awaiting
Government of India approvals.
In a major development post the
end of the ?nancial year but prior
to writing this letter, we acquired
200 million shares amounting to
10.4% stake in CIL from Petronas
International Corporation Ltd. in
a block deal at a price of ` 331 per
share.
The open ofer closed on 30th
April, 2011. Some 155 million shares
representing approximately 8.1%
of the share capital of Cairn India
Ltd. have been tendered. The total
consideration to be paid for these
tendered shares is ` 5,504 crore
(approximately US$ 1,241 million) at
the ofer price of `355 per share.
Thus, post the open ofer, Sesa Goa
will have 18.5% stake in Cairn India
Ltd — 8.1% from the shares tendered
during the tenure of the ofer, and
another 10.4% from Petronas.
The second is a move to diversify
up the ferrous metal value chain.
We acquired the assets of the
upcoming steel plant unit of Bellary
Steel and Alloys Limited for an all
cash deal of ` 220 crore. Apart from
the direct bene?ts of leveraging
growing opportunities in the Indian
steel sector, this acquisition should
allow us to add value to the iron ore
mined in the state of Karnataka.
At this juncture, it gives me great
pleasure to inform you that the
long pending case regarding the
amalgamation of Sesa Industries
Limited, the subsidiary that
produces pig iron, and Sesa Goa
?nally received the approval of the
Supreme Court. The merger was
completed in February 2011.
I am also pleased to inform you that
we have successfully integrated
the operations of Sesa Resources
Limited (SRL) and the Sesa Mining
Corporation (SMC) — the erstwhile
V S Dempo Limited — with the
Company’s operations. SRL and
SMC continue to perform to
expected levels. We have also
added additional resources in SRL
and SMC post-acquisition through
explorations, thus reinforcing our
sustainable growth strategy.
Growth and Long Term Value
In last year’s annual report, I had
stated our iron ore vision of 50
million tonnes (mt) production and
sales by 2012-13. There has been a
revision to this. In 2010-11, we did
not renew our agreement for third
party operations at the Thakurani
mines in Barbil, Orissa, due to
unfavourable commercial terms,
and terminated our operations in
Orissa. We continue to maintain our
target for increasing ore production
in Goa and Karnataka to 40 mt.
Exploration activities continue as
planned, with 53 mt being added to
the gross reserves and resources. As
on 31st March, 2011, the Company’s
total reserves and resources were
306 mt.
We have progressed on all the
projects to double our iron ore
capacities — and also increasing pig
iron capacities by 375,000 metric
tonnes (MT) . Regarding iron ore,
in 2010-11, although we made
satisfactory progress in logistics,
mining and processing capacities,
however we are awaiting certain
statutory clearances. Expansion of
the pig iron capacity is progressing
well, for completion by Q3, 2011-12.
Sustainability
Sesa Goa remains committed to
sustainable development, which
focuses on maintaining a pre-
eminent position in health, safety
and environment practices, and in
contributing to the development of
communities where it operates. All
our locations, are certi?ed for ISO
9001, ISO 14001 and OHSAS 18001
— except for SRL which is yet to be
certi?ed for OHSAS 18001.
Health and safety always remained a
priority for Sesa Goa. The Company
continues to take a proactive role
in providing the employees a safe
working environment through
responsibility, training, monitoring
and implementing the best safety
practices across all locations.
In 2010-11, our Lost Time Injury
Frequency Rate (LTIFR) reduced
from 1.13 in 2009-10 to 0.86 per
million hours worked in 2010-11.
I am also happy to report that the
Met Coke Division (MCD) achieved
zero lost time accidents for the last
two consecutive years. 2010-11
also saw the Pig Iron Division (PID)
achieve zero lost time accidents.
Nevertheless, I must inform with
deep regret of a fatality, which
occurred at a jetty in Goa where
a barge sailor lost his life in an
accident. We have thoroughly
investigated the causes, and put in
the necessary safety measures.
The community development work
— through the Sesa Community
Development Foundation, Mineral
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
7
Sesa Goa Limited Annual Report 2011
Foundation of Goa and speci?c
need based initiatives — continues
to focus on social projects in line
with our over-all sustainability
objectives. More details on health,
safety, environment and corporate
social responsibility are given in the
chapter on Management Discussion
and Analysis.
In 2010-11, Rs 2,571 crore was
paid by your company in the form
of various taxes, duties, levies,
royalties, etc to Government of India
and other Government agencies.
Outlook
For the near term, we remain
optimistic about the prospects of
iron ore demand and consequently
the price, in the global seaborne
trade. In line with consensus
expectations, we expect global
de?cit in iron ore to continue for
the next two years. In the longer
term, the market will move towards
equilibrium at lower prices as new
capacities for iron ore come on
stream.
On the cost front, we expect
royalty rates, railway & road freight
and export duties to exert some
pressure, while volumes could
be challenged by uncertainties in
policy decisions and hurdles in
logistics. We remain cautiously
optimistic of overcoming such
obstacles.
Corporate Governance
You would recall that in 2009-
10, Sesa Goa was subjected to
investigation by the Serious Fraud
Investigation Ofce, Ministry of
Corporate Afairs, New Delhi. The
investigation is still in progess.
Further update on this issue will be
provided in due course.
Acknowledgement
I would like to take this opportunity
to thank all our employees,
employee unions, my colleagues
at the executive team of Sesa, the
Group Management and the Board
of Directors for their unwavering
support in helping us enhance our
position as the India’s leading iron
ore company.
Thanks are also due to government
departments & authorities, village
panchayats, our solicitor & counsels,
consultants, suppliers, contractors,
various, port authorities and all
other business associates.
We recently announced that our
Chairman, Mr SD Kulkarni, has
stepped down from the Board after
serving the Company for 10 years.
On behalf of the Board of Directors,
I would like to take this opportunity
to thank, Mr Kulkarni for his
substantial contributions, and for
guiding Sesa Goa to its pioneering
position.
The Company has recently
appointed Mr Jagdish P Singh and
Mr Ashok Kini as Directors, subject
to the approval of shareholders
in the Company’s ensuing annual
general meeting. I welcome them
on board and look forward to their
support and guidance in taking Sesa
Goa to new levels of success.
My thanks to our shareholders
for reposing faith in our business.
Let me say to them, “We have the
ability. We have the desire. And we
have the belief that we can and will
deliver our targets.”
P K Mukherjee
Chief Executive Ofcer /
Managing Director
5th May, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
8
Board of Directors
Left to right: Kuldip K. Kaura, Jagdish P. Singh, Amit Pradhan, Arun K. Rai, Ashok Kini, Gurudas D. Kamat, Prasun K. Mukherjee
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
9
Sesa Goa Limited Annual Report 2011
Mr. Pandurang G. Kakodkar
Director
Pandurang G. Kakodkar is a non-
executive independent Director of
SGL. He holds a Postgraduate in M.A.
(Economics) from Bombay University
and was appointed as Director of SGL on
31st March, 2000.
He has over 41 years of experience
in the State Bank of India, retiring as
the Chairman in 1997. He is currently
a private information technology
and banking consultant. His other
directorships include: Goa Carbon
Ltd., Uttam Galva Steel Ltd., Financial
Technologies (India) Ltd., Auditime
Information Systems (I) Private Ltd.,
Fomento Resorts and Hotels Ltd.,
Centrum Finance Ltd., Multi Commodity
Exchange of India Ltd., IBXForex Ltd. and
Anand Rathi Financial Services Ltd.
Mr. Kuldip K. Kaura
Director
Kuldip K. Kaura is a non-executive
Director of SGL. Mr. Kaura is currently
Chief Executive Ofcer and Managing
Director of ACC Limited. Mr. Kaura was
appointed as Director of SGL on 30th
October, 2007.
He holds a Bachelor of Engineering
(Hons) in Mechanical Engineering from
Birla Institute of Technology & Science,
Pilani.
Mr. Kaura retired as the Chief Executive
Ofcer of Vedanta Resources plc in
September 2008. Before joining the
Vedanta group, Mr.Kaura served at ABB
India for 18 years and was the Managing
Director and Country Manager from
1998 to 2001. He has served as member
of National Council of Confederation of
Indian Industries and is ofce bearer of
such professional bodies.
Mr Jagdish P. Singh
Director
Jagdish P. Singh is a distinguished civil
servant with over 37 years of executive
experience in key positions in the
Union and State Government. He is
an alumnus of the Harvard University
where he attended the Kennedy School
of Government as a Mason Fellow. He
also holds a Master’s degree from the
University of Allahabad.
Mr. Singh has occupied varied positions
in his career such as district and
divisional administrator, to later working
as Chief Executive and Chairman of the
Board of numerous corporate bodies. He
was responsible for turning around of
several State and Central corporations
engaged in Industrial and Services
activities such as Tourism, Infrastructure,
Co-operative Finance, Mining and
Minerals exploration. He initiated
measures in amendments in Labour
Laws. He shaped the new National
Mineral Policy in 2008 and piloted its
passage.
He has conducted bilateral and country
speci?c discussions to further joint
economic activities with South Africa,
Australia and Indonesia.
Mr. Amit Pradhan
Whole Time Director, Director - Iron
& Coke
Amit Pradhan is a Whole Time Director
of SGL. Currently responsible for the
Group’s business in Pig Iron, Coke and
Power, Mr. Pradhan joined SGL in January
1990 as Manager - Purchase. Mr Pradhan
holds a Postgraduate in M.Sc. (Physics)
from the Indian Institute of Technology,
Delhi. Mr. Pradhan was appointed as
Director of SGL on 1st July, 2000.
He has 33 years of experience in
materials/project management and
Business Development. Mr. Pradhan was
appointed as Whole Time Director of the
Company efective from 1st May, 2006.
He is also distinguished and listed by the
International Who’s Who Professionals
in 2007.
Mr. Arun K. Rai
Whole Time Director, Director -
Production and Logistics
Arun K. Rai is a Whole Time Director of
SGL. Mr. Rai holds a degree in Mining
Engineering from Banaras Hindu
University. Mr. Rai was appointed as
Director of SGL on 1st February 1999.
He has 35 years of experience in the ?eld
of Mining and allied areas. Mr. Rai was
re-appointed as Whole Time Director of
the Company efective from 1st February,
2009.
Mr. Ashok Kini
Director
Ashok Kini is a non-executive
independent Director of SGL. He holds
a Postgraduate from Madras Christian
College, Chennai.
Mr. Ashok Kini is former Managing
Director, State Bank of India. He was
responsible for the Bank’s IT plans,
from concept and RFP to execution
and vendor management, domestic
distribution, retail business, consumer
banking, marketing/brand management,
etc. He is currently on Board of IndusInd
Bank Limited, Gulf Oil Corporation
Limited, UTI Asset Management
Company and Financial Information
Network & Operations Pvt. Limited.
Mr. Gurudas D. Kamat
Director
Gurudas D. Kamat is a non-executive
independent Director of SGL. Mr. Kamat
retired as Chief Justice of Gujarat High
Court in January 1997. Mr. Kamat is
engaged in judicial work relating to
arbitration and conciliation. Mr. Kamat
was appointed as a judge of the Bombay
High Court on 29 November, 1983. Mr.
Kamat was appointed as Director of SGL
on 23rd December, 2005.
He has over 46 years of experience in
the ?eld of legal practice and judiciary,
having practiced in Bombay as well
as in Goa in various branches of law.
Mr. Kamat was prosecutor for the
Government of Goa from 1967 to 1969
and was a member of the senate and
faculty of law of Bombay University from
1978 to 1980. From 1980 onwards, Mr.
Kamat was an advocate for the Customs
and Central Excise Departments of the
Government of India.
Mr. Prasun K. Mukherjee
Managing Director
Prasun K. Mukherjee is the Managing
Director of SGL since April 2006. Mr.
Mukherjee holds a Bachelor of Commerce
(Hons) degree from Calcutta University.
He is a fellow member of the Institute of
Chartered Accountants of India and an
associate member of the Institute of Cost
and Works Accountants of India.
He has around 32 years of experience in
?nance, accounts, costing, taxation, legal
and general management. Mr. Mukherjee
was rated as one of India’s Best Chief
Financial Ofcers (CFOs) in the year
2005 by Business Today magazine and in
2009, Business World magazine declared
Mr. Mukherjee as India’s most ‘Value’able
CEO.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
10
We are India’s largest producer and exporter of iron ore
committed to providing superior returns and mining
responsibly
Creating Shareholder Value
Organic growth
We have doubled our capacities in
the last 3 years and similar growth
programs are on track to further
enhance our existing operations.
We have continuously increased our
resource base through extensive
exploration.
Additional investment opportunities
Our ?rst acquisition having enabled us
to deliver industry leading growth, we
continue to selectively pursue value
enhancing opportunities where we can
leverage our skills and experience.
Optimise returns
We have a culture of continuous
improvement, and are focused on
maintaining our low cost position. We
are leveraging the Sesa Resources iron
ore acquisition to realise synergies.
Group structure
Our priority is to create value for all
our shareholders through optimising
the capital structuring and means of
delivering returns.
People
Our people are the foundation of
our business and a key ingredient
for our success. Our people strategy
is founded on the recruitment,
development and retention of the
talented men and women who run and
grow our businesses.
Community and Environment
We are committed to the goal of
sustainable development by adopting
leading global standards of health,
safety & environmental management
and community development.
Our expansion programmes
of doubling our current
capacities across all our
businesses are progressing
well.
Gross addition of over 170 mt
of R&R in last 3 years.
Acquisition of assets of
upcoming steel plant of
Bellary Steel and Alloys
Limited
Strategic Investment -
Acquisition of 20% stake in
Cairn India Limited
EBITDA up 65% to ` 5,214
crores, Earnings per share
up 52% to ` 49.17, Proposed
dividend of ` 3.50 per share.
Amalgamation of Sesa
Industries Limited with Sesa
Goa Limited completed
Successfully integrated the
operations of Sesa Resources
Ltd. with Sesa Goa Ltd.
Around 4,600 employees,
including +680 professionals.
LTIFR reduced by 60% over a
period of 5 years.
Touching lives of thousands
of persons directly &
indirectly through its
continuous community
development initiatives.
Growth
Long term
value
Sustainability
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
11
Sesa Goa Limited Annual Report 2011
Market Overview
Sesa Goa Limited (or ‘Sesa Goa’
or ‘the Company’) is part of the
Vedanta Group, a diversi?ed global
metals and mining major. It drives
the Group’s ferrous minerals
business with a commitment to
create a world class enterprise
through high quality assets,
competitive cost of production and
superior returns to shareholders.
The Company’s core business is
iron ore mining. Today, it is India’s
largest private sector iron ore
producer and exporter. In addition,
Sesa Goa produces pig iron, met
coke and provides proprietary
technology in coke manufacturing.
While all these businesses have their
focused markets, their performances
have a strong relationship to the
prevailing economic environment.
Macroeconomic Developments
2010-11 saw the global economic
recovery gaining strength. After a
de-growth of 0.5% in 2009, world
economic output rebounded
strongly to register 5% growth in
2010. Much of this impetus came
from developing and emerging
economies, which witnessed 7.3%
growth in 2010 compared to 2.7% in
2009. Thankfully, even the advanced
economies recovered from a 3.4%
contraction in output in 2009 to a
growth of 3% in 2010 (see Chart A).
Economic growth has a direct
linkage to steel and, hence, iron ore
demand. By October 2010, industrial
production in emerging economies
such as India and China had already
surpassed the pre-crisis levels. Even
some of the advanced economies
witnessed a pick-up in industrial
production.
There is, however, some fear of
overheating in key emerging
markets such as China and India. In
an environment of rising domestic
demand, supply side constraints and
increased speculative activities are
leading to sharp rise in commodity
prices — such as hydrocarbons,
crude oil, minerals, metals and
food. With higher consumer and
producer price in?ation in all key
emerging markets, especially India
and China, it is not surprising that
central banks are raising interest
rates and tightening money supply.
This carries two risks: ?rst, higher
cost of ?nance afecting consumer
demand, current pro?tability and
future investments; and second, the
possible slowing down of economic
growth.
Having said so, the fact is that two
of Sesa Goa’s primary markets —
China and India — have continued
Source: IMF estimates
Source: CSO, National Bureau of Statistics,
China
Source: World Steel Association
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8
Emerging and
Developing
Economies
Advanced
Economies
World
Output
Chart A: Output growth (%)
2009
2010
0 2 4 6 8 10 12
Q4, 2010
Q3, 2010
Q2, 2010
Q1, 2010
Q4, 2009
Q3, 2009
Q2, 2009
Q1, 2009
Q4, 2008
Q3, 2008
Q2, 2008
Chart B: Real GDP growth (%)
China
India
0
400
800
1,200
1,600
J
a
n
-
1
1
J
u
l
-
1
0
J
a
n
-
1
0
J
u
l
-
0
9
J
a
n
-
0
9
J
u
l
-
0
8
J
a
n
-
0
8
J
u
l
-
0
7
J
a
n
-
0
7
Chart C: Global crude
steel production (million tonnes)
Pre-Crisis
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
12
to grow at high rates. Chart B
shows how, from the third quarter
of calendar 2009, both China and
India have registered strong growth
rates with the trend continuing
throughout 2010. Advanced
estimates suggest that while China
grew by around 10% in 2010, India
will register GDP growth of 8.6% in
2010-11.
The Global Iron and Steel Market
The macroeconomic environment
has a signi?cant bearing on
global steel demand and supply.
Estimates suggest that global steel
consumption has grown by around
1.5x of world GDP growth over the
last decade. Steel consumption
has gained traction with global
economic recovery. Chart C shows
that after the dip in mid-2008, world
crude steel production started
recovering in 2009; and by March
2010 it exceeded the pre-crisis level.
Global steel production rose by
16.8%, to 1,414 million tonnes in
2010. With a share of over 44%,
China continued to be the driving
force in the industry. Crude steel
output in China grew by 9.3% to 627
million tonnes.
There were apprehensions in some
quarters about a possible long term
slowdown in the output of Chinese
steel, on account of the completion
of many government-backed
stimulus projects and restrictions
levied by the Chinese government
on energy inefcient steel
producers. That has not happened.
The ?rst quarter of 2011 has again
seen a strong uptick in Chinese
steel production, driven mainly by
the demand for social housing in
the interior provinces of China and
railways.
In the short- to medium-term,
therefore, Chinese steel production
is expected to continue to grow
fairly rapidly. However, over a longer
horizon, one could expect China’s
steel intensity to start declining as
the economy moves away from
being investment-driven to being
more consumption determined.
The growth in steel output resulted
in strong demand for iron ore
and met coke. This, coupled with
logistics and environment related
constraints on the supply side, saw
signi?cant increases in prices of
these raw materials during much of
2010-11.
With its low cost production base
and focus on growing markets,
such as China and India, 2010-11
has been a favourable year for Sesa
Goa. However, from the supply side,
there were some issues, mainly
regulatory in nature, that prevented
further growth. These are detailed in
the business segment review.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
13
Sesa Goa Limited Annual Report 2011
Financial Highlights
Growing demand and greater operational efciencies have contributed to
record sales and pro?ts. It should be noted that after the acquisition of SRL
in 2009-10, nine month of its operations were consolidated in the accounts
for the previous year, versus all twelve months in 2010-11. Table 1 gives the
summarised consolidated pro?t and loss account of Sesa Goa.
Table 1: Abridged Consolidated Pro?t and Loss Account of Sesa Goa
(` in crore)
Particulars 2010-11 2009-10
INCOME
Gross sales 10,151 6,654
Less: Excise duty 64 44
Less: Ocean freight 943 812
Add: Other operating income 61 61
Net Income from Operations 9,205 5,859
EXPENDITURE
Production and operational expenses 3,866 2,616
Administration expenses and selling expenses 133 94
Exchange (gain)/loss on FCCB 49 (122)
Operating PBDIT 5,157 3,271
Less: Depreciation 96 75
Operating PBIT before other income 5,061 3,196
Less: Interest 42 55
Add: Interest, dividend and other income 540 304
PBT 5,559 3,445
Less: Provision for taxation 1,337 806
PAT 4,222 2,639
Less: Minority interests – 10
Consolidated PAT after minority interest 4,222 2,629
Sesa Goa’s Financial Performance, 2010-11
? Gross sales increased by 5S7 to ` 10,151 crore in 2010-11. With this, Sesa Goa has become a company
exceeding US$ 2 billion in turnover on a consolidated basis.
? Net income from operations grew by 577 to ` 9,205 crore in 2010-11.
? Operating P8DIT increased by 587 to ` 5,157 crore in 2010-11. Operating PBDIT margin (operating PBDIT
divided by net income from operations) was 56%.
? Cash pro?ts (P8DT) for 20í0-íí were ` 5,655 crore — an increase of 61% over 2009-10.
? P8T increased by 6í7 to ` 5,559 crore in 2010-11.
? PAT grew by 607 to ` 4,222 crore.
? Propose dividend of ` 3.50 per equity share of ` 1.00 each for 2010-11
? Diluted earnings per share rose from ` 31.62 in 2009-10 to ` 48.17 in 2010-11.
? Net worth in 20í0-íí grew by 627 to ` 12,810 crore.
? As of Síst March, 20íí, Sesa Goa had cash and cash equivalents of ` 10,682 crore — consisting of ` 8,800 crore in debt
mutual funds, ` 1,000 crore in inter-corporate deposits since repaid, and balance ` 882 crore in ?xed deposits, cash
with banks, cash in hand, etc.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
14
Business Development
Having built strong cash reserve
over time, the Company has
started using its balance sheet
strength to make strategic
business investments. In 2009-10,
Sesa Goa planned investment of
approximately US$500 million for
investments in Iron ore expansions
to support higher growth for the
business.
In 2010-11, Sesa Goa made further
commitments to investments, which
are given below.
Investment in Cairn India Limited
In August 2010, Sesa Goa proposed
to take a 20% stake in Cairn India
Limited (CIL) under an open ofer.
Subject to any higher price required
to be paid in accordance with the
SEBI rules on takeovers and mergers
in India, the price payable per share
in the open ofer will be ` 355 per
CIL share tendered. This is part of
the Vedanta Group’s ofer to acquire
majority of CIL shares.
CIL is a listed company. It has a
unique oil and gas exploration and
production platform with the third
largest oil reserves in India, with a
proven management team and a
low-cost production set up. Cairn
India’s principal asset is its 70% stake
in the Rajasthan oil development
project, as well as some 600 km
of heated pipeline from Barmer in
Rajasthan to Bhogat on the Gujarat
coast.
Currently CIL is producing
approximately 125,000 barrels of
crude oil per day, which can be
signi?cantly enhanced subject to
approvals. The project represents
a signi?cant potential resource
base with estimated oil in place in
excess of 6.5 billion barrels. The
global oil and gas markets continue
to be demand driven, and low cost
producers generate high returns on
investments.
For Sesa Goa, this is a ?nancial
investment, which will also support
the Vedanta Group’s long term
growth objectives. The transaction,
which is estimated to be EPS
accretive for Sesa Goa, gives the
Company a stake in a world class
asset with signi?cant growth
potential.
While the Board of Sesa Goa has
cleared this investment, the entire
takeover process is going through
regulatory clearances.
In a major development after
31st March, 2011, but prior to the
release of this document, Sesa
Goa acquired 200 million shares
amounting to 10.4% stake in Cairn
India from Petronas International
Corporation Ltd in April 2011, at
a price of ` 331 per share. This
acquisition is in addition to the
open ofer launched by Sesa Goa on
11th April, 2011.
The Open Ofer for CIL’s shares
closed on 30th April, 2011. A total
of around 155 million shares
representing approximately 8.1%
of the share capital of Cairn India
Ltd. have been tendered. The total
consideration to be paid for the
tendered shares is ` 5,504 crore
(approx. US$1,241 million) at the
ofer price of ` 355 per share.
Consequently, post the Open Ofer,
Sesa Goa will have 18.5% stake in
CIL (i.e. 8.1% through the Open Ofer
plus 10.4% from Petronas).
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
15
Sesa Goa Limited Annual Report 2011
Acquisition of the Assets of Bellary
Steel and Alloys Limited
In March 2011, Sesa Goa acquired
the assets of the upcoming steel
plant unit of Bellary Steel and Alloys
Limited (BSAL) for an all cash deal of
` 220 crore. The secured creditors
to BSAL represented by IFCI Ltd
had taken over possession of the
properties of BSAL in association
with the ofcial liquidator. IFCI
Ltd then conducted a sale process
for the assets of BSAL under the
SARFAESI Act, 2002.
BSAL was in the process of putting
up a steel plant project at Bellary.
The acquired properties of the plant
include a 0.5 million tonnes per
annum capacity steel plant which
is under construction, freehold land
of around 700 acres, building and
structures, plant and machinery
and other related assets. These have
been transferred on an ‘as is where
is’ basis to Sesa Goa.
Sesa Goa has been looking at value
addition in the ferrous metal chain.
As a ?rst step, it had moved into
pig iron production. Now, with this
acquisition, the Company is taking
its ?rst steps in steel manufacturing.
In the process, it is widening its
presence across the ferrous metal
production chain.
The steel plant under construction
is located in the rich iron ore belt
of Karnataka, and provides the
Company a good opportunity to
expeditiously set up a value adding
facility on freehold land which is in
close proximity of state highways,
railways and source of water.
Moreover, this facility provides Sesa
Goa with better opportunities to
add value to the iron ore extracted
within Karnataka — which is in
line with the state government’s
objective.
The Company is presently
conducting a detailed assessment
in order to determine the best way
forward for commissioning the steel
plant at the earliest. However, the
acquisition has been challenged by
JSW Steel Ltd in the Supreme Court
of India, which has asked the parties
to maintain status quo until the
matter is decided.
Merger of Sesa Industries Limited
with Sesa Goa Limited
In 2010-11, after a long legal
process, Sesa Industries Limited
(SIL) was merged with Sesa Goa. On
7th February, 2011, the Company
received the order of Supreme
Court of India that upheld the order
of a Single Judge of High Court of
Bombay at Goa, dated 18 December
2008, approving the Scheme of
Amalgamation of SIL with Sesa Goa
Limited with appointed date of 1
April, 2005.
The Board of Directors, at its
meeting held on 12th March, 2011,
has taken the following decisions:
? Allotted 9,S98,864 equity
shares of face value of ` 1, each
bearing distinctive numbers
859,702,560 to 869,101,423
to the shareholders of the
erstwhile SIL, who were
holding shares as on the record
date, i.e. 28th February, 2011.
The allotment was done in the
ratio of 1:5, with bene?ts of
sub-division and bonus. As a
result of allotment, the paid up
share capital of the Company
has gone up from `85.97 crore
to `86.91 crore.
? Approved distribution of
dividend to the shareholders of
SIL who were allotted Sesa Goa
shares in terms of the Scheme
of Amalgamation. This works
out to `11.05 crore.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
16
Sesa Goa’s primary business is the
exploration, mining and processing
of iron-ore. Its mining operations
are carried out in the states of
Goa and Karnataka in India. The
Company has also diversi?ed its
operations into manufacturing of
met coke and pig iron.
Charts D and E give the share of
each of the operating business in
Sesa Goa’s consolidated external
revenues and consolidated segment
pro?ts (pro?t before tax, interest,
dividend and non-allocable items),
respectively.
Iron ore: This is Sesa Goa’s core
business segment, and contributed
to 91% of consolidated external
revenues and 95% of segment
pro?ts in 2010-11. The Company
has a niche positioning with cost
competitive ore base, and mines
that have relatively easy access to
ports to support the global seaborne
iron ore trade.
Business Segment Review
Chart D: Share of Sesa’s
consolidated external revenues
Pig Iron 7%
Iron Ore 91%
Met Coke 2%
Chart E: Share of Sesa’s
consolidated segment pro?ts
Pig Iron 3%
Iron Ore 95%
Met Coke 2%
Pig iron: This business, carried out
through the erstwhile subsidiary
SIL, has now been merged with
Sesa Goa. It contributed 7% to total
external revenues in 2010-11, and
its share in segment pro?ts was 3%.
The business focuses mainly on the
domestic Indian market, especially
to foundries and steel mills in
western and southern India. It also
exports to the Middle-East and
South East Asia.
Metallurgical Coke (met coke):
The met coke business is larger
than what it seems from its 2%
contribution to external sales
and 2% contribution to segment
pro?ts. This is because 70% of its
sales is to the pig iron division,
which is adjusted in inter-segment
revenues. This business is primarily
a backward integration initiative
to support pig iron. Some of the
production is also sold externally.
Let us look at the developments in
each of these businesses in greater
detail.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
17
Sesa Goa Limited Annual Report 2011
0 200 400 600 800 1000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Chart F: Seaborne Iron Ore
Trade (million tonnes)
geography, the Company is focusing
on developing other markets. With
the growth in the domestic Indian
steel industry, there is a growing
emphasis on domestic iron ore
sales. India’s share of Sesa Goa’s
total iron ore sales has risen from
6% in 2009-10 to 10% in 2010-11.
Similarly, the share of Japan and
Korea has increased from 7% to 10%.
Table 2: Share of Sesa Goa’s Total Iron Ore
Sales
2010-11 2009-10
China 77% 85%
Europe 2% 2%
Japan & Korea 10% 7%
India-Domestic 10% 6%
Others 1% -
Regulatory Issues
The performance could have been
even better had it not been for some
regulatory issues that afected both
volume growth and pro?tability of
the iron ore business in 2010-11, to
which we now turn.
Karnataka Export Ban
In order to curb illegal mining, the
state government of Karnataka
imposed a temporary ban on iron
ore exports from its ten minor ports
since end July 2010. Consequently,
a group of miners including Sesa
Goa, approached the High Court
of Karnataka to revoke this ban.
After the hearing, the High Court
provided six months for the state
government to enforce requisite
regulations to mitigate illegal
mining. To get faster resolution, this
order was further challenged in the
Supreme Court.
The Supreme Court heard the
matter on 12th February, 2011. It
stated that the ban could not be for
an inde?nite period and directed
the government of Karnataka to
Iron Ore
? Net revenues (after
adjusting for inter segment
sales) from iron ore
operations increased by
62% from ` 5,170 crore in
2009-10 to ` 8,387 crore
in 2010-11. This was the
highest ever annual sale.
? Pro?ts before interest,
tax, dividends and other
non-recurring or
non-allocable incomes
grew by 67% from ` 2,926
crore in 2009-10 to ` 4,884
crore in 2010-11.
Markets
Sesa Goa focuses on the global
seaborne trade in iron ore which
caters to the import demand of
various countries, especially China.
Seaborne iron ore trade increased
by 7.3% to 973 million tonnes in
2010. Chart F plots its growth over
the last 10 years – when it registered
a compound annual growth rate
(CAGR) of 9.1%.
During the last decade, China has
emerged as the world’s leading
producer of steel. However, it relies
on imports to substantially meet its
ore needs. Chinese imports of iron
ore have increased at a CAGR of
23% from 92 million tonnes in 2001
to 594 million tonnes in 2010. With
this growth, its share in global iron
ore imports has risen from 20.7% in
2001 to 61.1% in 2010.
In 2010, Chinese import of iron ore
reduced by 3.7% in terms of volume.
Much of this was on account of
supply side constraints in major
iron ore producing countries.
Brazil sufered from production
shortfalls due to heavy rainfall;
while in India, exports were banned
from the state of Karnataka. Both
these countries are also facing
several environmental restrictions
in increasing iron ore supplies.
In addition, development of port
capacities and inland logistics in
Brazil and India has not been in
pace with growing requirements of
the seaborne iron ore trade.
In an environment of strong
demand, these supply-side
constraints resulted in a steady
increase in iron ore prices. Chart G
shows how prices have risen since
Q2, 2010-11.
Table 2 gives the regional
distribution of the Company’s
sales. While China remains the core
Source: My Steel
Source: Metalytics
0
40
80
120
160
200
0
1
-
0
4
-
2
0
1
1
0
4
-
0
1
-
2
0
1
1
0
1
-
1
0
-
2
0
1
0
0
1
-
0
7
-
2
0
1
0
0
1
-
0
4
-
2
0
1
0
0
1
-
0
1
-
2
0
1
0
0
1
-
1
0
-
2
0
0
9
0
1
-
0
7
-
2
0
0
9
0
1
-
0
4
-
2
0
0
9
0
1
-
0
1
-
2
0
0
9
0
1
-
1
0
-
2
0
0
8
0
1
-
0
7
-
2
0
0
8
0
1
-
0
4
-
2
0
0
8
Chart G: Spot Price (FOB $/DMT)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
18
frame new rules for controlling
illegal mining by 31st March, 2011.
Meanwhile, it directed the state
government to allow the exports of
iron ore lying at major ports.
On 5th April, 2011, the Supreme
Court passed its interim order
staying the government ordinance
on issuance of Mineral Despatch
Permits for exports by the state of
Karnataka with efect from 20th
April, 2011.
Export Duty Structure
On 28th February, 2011,
Government of India raised export
duty on both lumps and ?nes to
20%. The efect of this was restricted
to only the month of March in
2010-11, but going forward this will
adversely afect margins.
Operations
The regulatory issues discussed
above made it difcult to increase
production and sale of iron ore.
In addition, there were natural
disruptions like extended monsoons
in Goa. Sesa Goa launched several
internal operational initiatives to
overcome these adversities. These
have helped the Company to
produce 18.8 million tonnes of iron
ore (21.1 million tonnes on a WMT
basis), which is almost in line with
the 19.2 million tonnes (21.4 million
tonnes on a WMT basis) of the
previous year.
Sesa Goa operates mines in Goa
and Karnataka. While for most of
the mines, the Company has direct
ownership in the form of mining
leases from the state governments,
some of these are under third-
party operations. Table 3 gives the
Company’s production data across
diferent states.
Table 3: State-wise production volumes (in
million tonnes)
2010-11 2009-10
Goa 14.4 13.8
Karnataka 3.0 3.7
Orissa 1.4 1.7
Total 18.8 19.2
Note: As international sale prices are quoted
in dry metric tonne (DMT), all our iron ore
volumes are reported on a DMT basis, versus
the earlier basis of wet metric tonne (WMT).
The third-party mining contract
for the Thakurani Mine in Barbil,
Orissa expired on 30th November,
2010. Sesa Goa did not renew
the mining contract because of
unviable commercial terms. Thus,
the Company has ceased its mining
operations at the Thakurani mine
from 1st December, 2010. With
this, the Company has no mining
operations in Orissa.
Iron Ore Mining: A Progress Report
A number of initiatives are being
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
19
Sesa Goa Limited Annual Report 2011
undertaken to expand mining
capacity and logistics at Goa and
Karnataka. The goal is to increase
production at Goa and Karnataka
to 40 mt. These include additional
investment in mining equipment,
processing plants, barges, land
and infrastructures at an estimated
capital expenditure of around
US$500 million.
We have made substantial progress
on the logistics capacity: with
a new railway siding already
commissioned in Karnataka and
work progressing on widening of
the existing roads and building
dedicated road corridors in both
Karnataka and Goa.
We are also adding capacity in river
and port logistics with ?ve new
barges already on stream.
Exploration
Any natural resource based
business with long term growth
priorities must be backed by strong
exploration skills and eforts. At Sesa
Goa, the exploration initiatives are
driven by its focus on sustainable
growth. With this objective, the
Company is continuously looking
to add more resources through
exploration, acquisitions and also
through new mine leases.
During 2010-11, six drilling rigs were
deployed across leases in Goa and
Karnataka. By 31st March, 2011,
over 68,900 metres were drilled.
This resulted in a gross addition of
53 mt to the Company’s reserves,
and resources base prior to a
depletion of 21 mt in 2010-11. Table
4 gives the last three years resource
addition and depletion.
Table 4: Sesa Goa’s Iron Ore Reserves & Resources (R&R), are in million tonnes
Gross Addition Depletion Acquisition Total R&R
2008-09 54 16 - 240
2009-10 64 21 70 353
2010-11 53 21 - 306
Note: Total R&R at the end of 2010-11 is excluding Orissa mine which was included in earlier years.
As on 31st March, 2011, total reserves and resources at the mines that the
Company held on lease and/or right to mine stood at 306 million tonnes.
The reserves and resources position has been independently reviewed and
certi?ed as per Joint Ore Reserves Committee (JORC) standards.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
20
The Company’s pig iron business is
operated by its erstwhile subsidiary,
Sesa Industries Limited (SIL), which
has been merged with Sesa Goa
Limited and now known as the
Pig Iron Division (PID). Having
commenced its operations in 1992,
the PID was the ?rst to introduce
low phosphorous foundry grade pig
iron in India.
Today, the PID produces several
grades of pig iron, including basic,
foundry and spheroidal (nodular)
grades that cater to steel mills and
foundries in India and abroad.
PID also produces slag as a by-
product which is sold to the cement
industries.
The demand for pig iron ?uctuated
throughout the year. Overall,
production reduced by 1% from
280,130 MT in 2009-10 to 276,117
MT in 2010-11. However, market
prices improved and the PID
managed better sales realisation in
2010-11.
Pig Iron
The key data are given below.
` Sales volumes decreased by 5%
from 278,747 MT in 2009-10 to
266,090 MT in 2010-11.
` However, external sales
revenues increased by 22%
from ` 552 crore in 2009-10 to
` 674 crore in 2010-11.
` Pro?ts before interest, tax,
dividends and other non-
recurring or non-allocable
incomes for the pig iron
business increased by 21% from
` 117 crore in 2009-10 to
` 141 crore in 2010-11.
The PID’s facility, located in the
village of Amona, Bicholim taluka,
North Goa, consists of two blast
furnaces — each having a working
volume of 173 cubic metres, with
a combined annual rated capacity
of 250,000 MT of pig iron, with a
consent capacity of 292,000 MT.
The plant adheres to the best
standards of quality, environment,
health and safety. It is certi?ed
to ISO–9001, ISO–14001 and
OHSAS–18001 systems for quality,
environment and safety respectively,
through a third party certi?cation
agency, Bureau Veritas Certi?cation
(India) Pvt. Ltd., formerly known as
BVQI. The PID’s R&D activities have
resulted in reduction in operating
costs, improvement of product
quality and development of new
products for downstream industries.
It has developed special grades of
pig iron to cater to the fast growing
niche market of ductile iron castings
in India.
The Company’s expansion project
is progressing well — after which
the rated capacity of the pig iron
plant will increase from 0.25 million
tonnes per annum (MTPA) to 0.625
MTPA, along with expansion of the
metallurgical coke plant, a new
sinter plant and a 30 MW power
plant based on waste heat recovery.
Commissioning is expected in Q3,
2011-12.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
21
Sesa Goa Limited Annual Report 2011
Sesa Goa's met coke division is
operated as an independent business
unit. The business is primarily a
backward integration initiative to
support the pig iron operations
70% of the met coke output was
consumed internally in 2010-11.
The met coke plant at Amona
produces a range of coke fractions
from over 70 mm for foundries,
20 mm to 60 mm for blast furnaces,
and 6 mm to 25 mm for the ferrous
alloy industries. The product
is mainly of low ash coke. The
principal input, low ash coking
coal, is imported. To ensure stable
raw material supply, the Company
enters long-term procurement
contracts. Coking coal is carefully
blended with accurate controls to
produce the desired high quality
low ash met coke, using the cost-
efective proprietary Sesa Energy
Recovery Coke Making Technology.
This process produces high quality
met coke, and has the lowest
Met Coke
pollution levels among comparable
technologies.
There was moderate growth in
production and external sales.
However, pro?t margins increased
signi?cantly due to higher sales
realisation with an increase in global
prices of met coke.
` Sales volume (internal &
external) was at 252,074 MT in
2010-11.
` External sales revenues
increased by 6% to ` 152 crore
in 2010-11.
` Pro?ts before interest, tax,
dividends and other non-
recurring or non-allocable
incomes for the met coke
business increased by 161% to
` 89 crore in 2010-11.
In line with the expansion of the pig
iron facility, the Company is also
expanding its met coke production
capacity by another 280,000 MT per
annum, which will increase the total
production capacity to 560,000 MT
per annum.
Sesa Goa has developed a
technology for energy recovery in
coke making. This is environment
friendly, characterised by low capital
and operating costs, high levels
of energy recovery, and has the
capability to produce high quality
metallurgical coke. The Company
has received a European and an
Indian patent for this technology.
In addition, the Company has
introduced a German technology
for densi?cation of coal charge,
employing vibro-compaction for
producing stable coal cake with bulk
density. The met coke division has
also set up a state-of-the art coal
carbonisation laboratory for coal
characterisation and evaluation of
coke quality.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
22
The primary goal from a HR
perspective is to a build a robust
and agile world class organisation
with a culture of high performance
embedded in a value system that
promotes respect for individuals,
diversity and entrepreneurship.
In 2009-10, the organisation was
recast into SBUs. The Company
has continued this transformation
exercise through various people
development initiatives. In the
course of 2010-11, a number of
learning initiatives were carried
out. These included management
development programmes for
graduate engineers, training
on structured problem solving,
technical as well as behavioural
aspects, and safety. During 2010-
11, 5,900 man-days of training was
imparted.
The Company has a special focus
to identify and nurture leadership
talent within the organisation.
Assessment Centers were
conducted to identify high potential
employees to be designated as “Star
of Business”. In 2010-11, 34 such
stars were identi?ed, and individual
Human Resource (HR)
development plans were created to
ensure their career progression in
the Company with challenging roles
and assignments.
The Gen-next Operational
Leadership (GOLD) programme
launched in the previous year
continued into 2010-11. The ?rst
batch completed the programme
successfully & a second batch of 37
high potential employees has been
inducted.
Equity-based awards in the form of
a long term incentive plan (LTIP)
are ofered to recognise key, high
performing employees of the
Company. LTIP facilitates alignment
of the interests of management,
including younger high potential
future leaders, with those of the
shareholders. It has proved to be an
efective motivational and retention
tool for high calibre people.
The Company has also rolled out
web-based initiatives called ’Any-
time Learning’ and an e-library.
Through self-learning modules,
these platforms encourage
knowledge sharing and provide
opportunities for employees
to upgrade their technical and
managerial skills.
During 2010-11, an innovative
method of workforce engagement
called the ’Idea Mela’ was
undertaken, which was aimed at
collecting employee suggestions.
Most workforce ideas were related
to productivity improvement,
cost reduction, better safety /
environment practices, quality
improvement and employee welfare.
Over 5,000 ideas were collected
from 2,000 employees, of which
75% were from workmen. Some
600 ideas were considered feasible.
These are being implemented.
Already, the ideas have resulted in a
cost saving of ` 2.5 crore.
To promote operational efciencies
and be in tune with global best
practices in mining and other
functions, employees attended
diferent training programmes,
conferences and visited some
of the world's best mines
during 2010-11. Areas of study
included benchmarking, mergers
and acquisitions, sustainable
development, mining logistics and
climate change.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
23
Sesa Goa Limited Annual Report 2011
Sesa Goa has a robust system of
internal controls that helps protect
the interests of the Company and
its assets from unauthorised use or
disposition. This includes a system
of documented policies, guidelines
and procedures, reviews by
management and extensive internal
audits by reputed international
audit ?rms.
As with any enterprise, Sesa Goa
faces several risks. The main macro-
level risks are given below.
Market Risks
Sesa Goa exports over 85% of its
iron ore production. Being a player
in the global seaborne iron ore
market, the Company’s business is
exposed to adversities in demand
and supply. Moreover, with 77%
of sales being exported to China,
any slowdown in that economy
can afect the Company’s business.
There are two mitigating factors.
First, Sesa Goa’s share of total
Chinese iron ore imports is small,
and there continues to be various
opportunities in China for the
Company to increase its market
presence. Second, Sesa Goa’s low
operations cost also acts as a
signi?cant assurance of its ability to
ride out short term adverse market
conditions. The Company continues
to work towards diversifying
its customer mix in terms of
geography.
Regulatory Risks
The mining sector in India is
subject to an uncertain regulatory
environment. Being a major mining
company, Sesa Goa has exposure
to these uncertainties. In the last
few years there has been several
negative developments in the
export duty on iron ore. In 2010-11,
it was increased to 20% for iron ore
lumps and ?nes. Export bans are
periodically applied to various ores
Risks and Uncertainties
— such as the one that occurred in
the state of Karnataka in 2010-11.
Environmental regulation policies
also remain unclear; and case-
to-case administration of such
regulations leads to uncertainty and
risk in mining activities.
Production Risks
Sesa Goa adopts a sustainable
production platform. Consequently,
the addition of new mineral
resources is critical for sustaining
growth oriented mining and
production plans. As on 31st
March, 2011, Sesa Goa has total
reserves and resources at 306 mt.
It continues to focus on adding
new mineral resources through
exploration and the grant of new
mining leases from central and state
governments. In the last three years,
the Company has added over 170 mt
to its gross reserves and resources
through exploration activities and
70 mt through acquisition. There
are risks in terms of getting the
?nal government clearances for
increasing our current production
capacities. Besides, delays in
allocation of new mineral leases or
changes in the policy on allocation
of such leases in favour of captive
steel companies could afect future
plans of the Company.
Project Execution Risks
Sesa Goa’s aggressive growth
plan initiated in 2009-10 has
resulted in investments in several
developmental projects. Many of
these are linked to creating the
underlying infrastructure to support
logistics of ore. In addition, in
2010-11, the Company has taken
over the upcoming steel plant assets
of Bellary Steel and Alloys Limited.
All these new investments require
project management skills, and have
exposure to project execution risks.
Currency Risks
With a majority of its iron ore being
exported, Sesa Goa’s revenues are
primarily quoted in US dollars.
This gives the Company signi?cant
exposure to foreign exchange
?uctuation risks, particularly in
relation to the US dollar.
Industry Risks
Iron ore production is concentrated
in the hands of a few — with the
top three producers accounting
for more than 70% of the global
seaborne iron ore trade. Such
scale provides these players
with a signi?cant ability to
afect competition, and pose a
potential threat to the Company’s
exports. Sesa Goa continues to
focus on building relationships
with the major customers and
in geographically diversifying its
customer base.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
24
Sustainable Development
Sesa Goa is committed to create
value for its stakeholders in a
sustainable manner, minimise
adverse environmental impacts,
and work in cohesion with the
community, government bodies,
non-governmental organisations
and other groups. Health, safety and
environment (HSE) and corporate
social responsibility (CSR) are of
paramount importance to Sesa
Goa. In addition, the Company’s
sustainable development model
promotes efcient use of resources
such as energy and water, minimises
the negative impact on biodiversity,
and reduces waste and emissions
including greenhouse gases.
As a part of its sustainable
development communication
and reporting system, Sesa
Goa produces every year its
Sustainability Development Report,
complaint to GRI G3 guidelines and
maintaining its appliction level A+
since last 3 years. All the reports are
also available on GRI website apart
from the Companies website.
The Company is signatory to UN
Global Compact from 2009-10, and
submitting the communication of
progress to the principles of UNGC.
Health, Safety and Environment
(HSE)
Sesa Goa’s top management,
through its HSE Committee, steers
the Company’s initiatives by setting
annual targets and reviewing
progress. The emphasis is on
integrating HSE with the decision-
making process. Today, all the
Company’s locations are certi?ed
for ISO 9001, ISO 14001 and OHSAS
18001 — except Sesa Resources
Limited, which is yet to be certi?ed
for OHSAS 18001. Sesa Goa has well
quali?ed HSE and CSR teams across
all its operations. At present, there
are 54 such professionals.
Occupational Health
The Company aims to provide a
workplace that is free from hazards
of occupational illness. The health
of all employees is checked annually
across the group companies. In-
house facilities for occupational
health monitoring are available
in the mines and the factory sites.
Dust, noise and lighting levels are
regularly monitored to ensure good
workplace hygiene. Whenever a risk
is identi?ed, the Company takes
early steps to quantify, control
and prevent it through proactive
measures.
The Company’s doctors impart
awareness about health education
and related issues to the employees
and local communities around its
operations. The emphasis is on
improving health and hygiene and
preventing communicable diseases.
During 2010-11, there were no
occupational illnesses reported in
Sesa Goa.
Safety
The Company aims for zero
accidents and a safe working
environment. This is promoted
through a well established system
of checks and balances, and
the reporting of accidents and
incidents, including the near-
misses. These are thoroughly
investigated to identify systematic
safety de?ciencies. On identifying
such gaps, preventative measures
are put in place.
There is sharing of safety lessons
learned and best practices through
exchange of information across the
group. The organisation encourages
employee participation in safety
committees and safety promotional
programmes. New initiatives are
regularly introduced for continual
improvement in safety performance.
Chart H shows that for the
Company as a whole, the frequency
and severity of accidents (FSI) has
declined from 0.93 in 2009-10 to
0.50 in 2010-11. FSI increase in the
0 1 2 3 4 5 6
SGL Group
Pig Iron
Met Coke
Ship Building
Shipping
Mining
Chart H: FSI measures
2010-11
2009-10
LTIFR reduced
by 60% over
a period of 5
years
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
25
Sesa Goa Limited Annual Report 2011
shipping business is because of a
fatality occurred at one of our jetty
where a barge sailor lost his life
in an unusual accident. The met
coke plant achieved zero lost time
injury incidents for the second
consecutive year and the pig iron
division has also achieved zero lost
time injury incidents during 2010-11.
Environment
Mining is about exhausting natural
resources. Thus, it is important to
replenish as much as possible and
extract ore with minimal peripheral
damage to the environment. Sesa
Goa is conscious of this challenge.
From planting trees at the mining
sites to conserving water, managing
solid waste and reducing energy
consumption, the Company takes
many steps towards environment
conservation and minimising
the impact of mining on the
surrounding environment and
society.
The Company’s responsibility does
not end with operating the mines. It
extends after the mine site is closed.
Sesa Goa ensures regeneration
of the earth that has been mined,
helps sustain the biodiversity
and addresses the needs of local
communities. In the long term, the
goal is to restore the land to as close
to its original state as possible.
The Company has a full-?edged
environment management team
to plan, implement and monitor
environment management
programmes. The focus is on:
` Pre-planning of mining
operations.
` Adoption of new and efcient
technologies.
` Modernisation of equipment.
` Implementing new ways
of operating to minimise
the negative impact on
environment.
` Conserving natural resources
through efcient use.
Energy Conservation
Sesa Goa has established and
implemented clear energy
conservation targets, which vary from
3% to 5% reduction of speci?c energy
consumption across all locations.
Projects for energy conservation
are identi?ed and undertaken in a
systematic manner and are reviewed
every quarter to ensure the targets
are actually achieved.
` In 2010-11, the Company has
been able to maintain speci?c
energy consumptions at 0.106
giga joule per MT (GJ/MT) of
output in mining.
` For the PID, it reduced from
0.560 GJ/MT in 2009-10 to
0.501 GJ/MT in 2010-11.
` In met coke, it reduced from
0.139 GJ/MT in 2009-10 to 0.136
in 2010-11.
Water Conservation
The main focus on the water
management is on reducing fresh
water consumption, increasing the
use of harvested rain water, reducing
speci?c consumption, and increasing
recycling and re-use of treated
efuent. The Company follows the
` In 2010-11, the
Company has been
able to maintain
speci?c energy
consumptions at
0.106 giga joule per
MT (GJ/MT) of output
in mining.
` For the PID, it
reduced from 0.560
GJ/MT in 2009-10 to
0.501 GJ/MT in
2010-11.
` In met coke, it
reduced from 0.139
GJ/MT in 2009-10 to
0.136 in 2010-11.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
26
concept of zero discharge, with a
robust system to undertake and
monitor tight water conservation
targets every quarter. Water
managers are located at each of the
sites to identify water conservation
projects in consultation with the
operating team.
Water conservation is managed
through:
` Continuous use of recycled
water for mining operations
and for bene?ciating iron ore,
thereby reducing freshwater
consumption by about 70%.
` The rainwater accumulated
in mine pits is used for
bene?ciation and spraying.
The tailings generated during
bene?ciation are treated and
water is then recycled back.
` The water requirement of the
pig iron and met coke plants is
met from rainwater harvested
in the exhausted Sanquelim
mine pit and partly through
government supply.
` In case of Karnataka operations,
ground water is used to meet
dust suppression requirements.
This is supplemented by
rainwater harvesting in ponds
during the monsoon, which
is also used for the nursery
plantations.
Total water consumed in mining
operations has reduced from 14.9
million kilolitres in 2009-10 to 11
million kilolitres in 2010-11.
Climate Change
Climate change is an important
aspect to Sesa Goa. The Company
has undertaken steps to measure
its impact on the environment by
periodically mapping its carbon
footprint. The registration of
the ‘Waste Heat Recovery Based
Power Plant Project’ with the UN
Framework Convention for Climate
Change (UNFCCC) has led to
generation of carbon revenue —
which not only makes the project
sustainable but also creates an
additional revenue stream. 1,00,438
CERs was accrued during 2010-11.
During the year, Sesa Goa was
selected as one among the 10
leaders for CDLI (Carbon Disclosure
Leadership Index) shortlisted
companies from 200 CDP (Carbon
Disclosure Project) respondents and
published in the CDP report 2010,
India 200.
Waste Management
Sesa Goa adopts a ‘4R’ waste
strategy - reduce, recycle, reuse and
reclaim. The focus is on improving
material efciency; reducing
waste generation; and enhancing
recovery and reuse of discarded
material. The mining, bene?ciation,
metal extraction and coke making
activities result in the generation of
both hazardous and non-hazardous
waste. An example of waste
management is given below.
Iron ore tailings contain iron
concentrations of around 45%.
Due to increasing cost of land and
scarcity of mining assets, it makes
economic and environmental sense
to reduce the proportion of tailings
in the bene?ciation process. This
was achieved by adding Wet High
Intensity Magnetic Separation
(WHIMS) units to the bene?ciation
plants. Due to this innovation, there
was a gain of ~11,000 tonnes per
year of usable iron ore, representing
around 2% of the feed material.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
27
Sesa Goa Limited Annual Report 2011
Sesa Goa’s approach to community
development is holistic and
long-term. Public Private Partnerships
(PPP) and community consultation
are the core drivers of the
Company’s work with communities.
It engages with its stakeholders
by a consultation process. This,
coupled with base line studies and
need-based assessments, provide
the framework for developing the
various social interventions. Sesa
Goa partners with like-minded
organisations in most of the
projects, such as government
agencies, NGOs, local communities
and panchayats.
Sesa Community Development
Foundation
The Sesa Community Development
Foundation, initiated by the
Company, is registered under the
Societies Act. The Foundation’s core
focus is to foster the development of
the community and youth around
Sesa Goa’s areas of operations in
Goa through providing technical
education and sports training
Corporate Social Responsibility (CSR)
as well as various community
development initiatives. Some
initiatives are listed below.
Sesa Technical School (STS)
The Sesa Technical School was
established in 1994 on an old
iron ore mining workshop at
Sanquelim. STS aims at providing
the youth in and around Sesa Goa’s
mining operations with technical
skills and knowledge to enable
them earn a living. STS students
specialise in becoming machinists,
?tters, electricians or instrument
mechanics, and secure placements
in various nearby companies. For
the last several years, STS has
maintained 100% results in the
Industrial Training Institute (ITI)
trade examinations.
Since the inception 16 batches have
been rolled out making 726 young
Goan's employable till date on their
own merit.
Sesa Football Academy (SFA)
To nurture the talent of Goa's young
footballers, SFA was established in
1999 to ofer junior level training
at Sanquelim, Goa. Its senior level
academy began operations from
June 2008 at Sirsaim, Goa.
Junior Academy
It houses 36 Goan boys. Once in
two years, boys in the age group of
14 to 16 years are selected on merit
and are provided with professional
football training as well as formal
education. The team has won many
championships and its graduates
play for top teams of the country.
Senior Academy
For the last 3 years, Sesa Goa’s
Senior Academy has been an active
participant in the Goa Professional
League, besides participating in the
Second Division of the I-League,
the Governor’s Cup and various
other tournaments. Within two
years of the senior academy
coming into being, eminent clubs
have approached students for
recruitment
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
28
Sesa has two football grounds in
Goa created in restored mining land.
To further nurture the young talent,
a new infrastructure at Sirsaim
was inaugurated last ?nancial
year. Built at an estimated cost of
over `4 crore, it has an all-season
football turf, a hostel facility that can
accommodate 30 boys, an in-house
gymnasium, indoor sports hall,
audio visual room and sauna bath
facilities.
In March 2011, Sesa Football
Academy (SFA) signed Mr Terry
Phelan, a former English premier
league footballer, who represented
his country, the Republic of Ireland,
in the 1994 FIFA World Cup as
the chief mentor for signi?cantly
developing the Academy. The SFA
has also appointed Libero Sports
— a subsidiary of the US-based
Libero Sports LLC — as its strategic
marketing consultants.
Development of Social
Infrastructure
Sesa Goa believes that building
appropriate infrastructure can
help develop communities.
The Company’s infrastructure
development initiatives include:
` Water pipeline at Bagwada,
Pilgaon, Bicholim as a part
drinking water facility to the
villagers. The bene?ciaries are
102 villagers.
` Constructed 115 metre water
canal at Kalsai, Kirlapal Dabal
village in Goa. The bene?ciaries
were 40 farming families.
` Constructed compound walls
and other infrastructure for
primary, middle and high
school at Goa and Karnataka.
` Constructed a large community
hall in village of Navelim, Goa.
` Constructed concrete cement
road connecting the village of
Medikeripura in Karnataka.
` Constructed the Community
Medical Centre at the village of
Megalahalli in Karnataka.
` Constructed watershed
development and drainage
systems at several villages
adjoining the Company’s mines
in Karnataka.
` Created drinking water facility
for around 1,500 people at the
village of Playa in Karnataka.
` Distributed smokeless biomass
stoves to around 700 families in
Karnataka.
Education
Education has been one of the
major focus areas of the Company’s
CSR initiatives. Given below
are examples of the education
initiatives.
` Project Manthan: A school-
based intervention for
promoting adolescent health
and improving educational
outcomes. A total of 13 schools
are covered under the project,
with over 2,600 students as
bene?ciaries.
` Launched a scholarship
scheme called the ‘Sesa
Dnyanjyoti Shishyavritti’ for
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
29
Sesa Goa Limited Annual Report 2011
meritorious students from
Standard 5 to Standard 12. It
has bene?ted 292 students
from 57 schools.
` Launched the Vedanta
Computer Education
Programme called ‘E-shiksha’
in 295 schools in Goa and 250
schools in Karnataka.
` Distributed notebooks to
students of several schools in
Karnataka and Goa.
` Conducted vocational tuition
classes in Karnataka bene?ting
over 900 high school students.
` Started evening study centres
in villages of Karnataka for
Standard 3 to Standard 7
students.
` Distributed balwadi play
equipment to 20 balwadis,
involving 400 children.
` Set up an orientation and
mobility course for poor,
visually impaired students. 20
students were taught various
skills like negotiating steps,
recognising places and daily
living skills. During the 75-day
course, these students were
ofered free boarding and
lodging.
Health Initiatives
Some of the key health initiatives of
2010-11 are given below:
` There are 10 community
medical centres running
around Sesa Goa’s mines and
operational areas. Till March
2011, these have bene?ted
around 118,000 people.
` A mobile health unit was
launched for the South Goa
mines, which covers over
33,670 people.
` An anaemia detection and
treatment campaign was
conducted in the villages of
Pissurlem and Advalpal in
Goa, which bene?ted over 300
women.
` Reproductive child health
camps were organised at the
villages of Mulgao, Piligaon,
Mayem and Surla in Goa, which
were attended by 645 women.
` Organised free eye screening
camps in Goa and Karnataka,
which has led to eye surgery,
cataract operations and free
spectacles to those who were
afected.
` Organised a cancer awareness
and detection campaign in the
villages of Pissurlem, Cudnem
and Surla in Goa, which
covered 133 women.
` As in previous years, organised
a blood donation camp on
1st December, 2010, the World
AIDS Day, where 199 company
employees donated blood.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
30
Sustainable Livelihood
Agriculture Livelihood Promotion
Agriculture is the main source of
income in rural areas. But today,
it is sufering due to various
reasons, such as high input costs,
low returns, shortage of skilled
manpower, lack of interest in
farming and inclination towards
white-collar jobs. Sesa Goa’s
CSR philosophy aims to enhance
the economic life of villagers by
improving farming systems, as well
as developing micro enterprises
to provide alternative means of
livelihood.
The learnings gained through the
Back to Farming project initiated in
Wagona, Kirlapal Dabal panchayat
in Goa motivated Sesa Goa to
replicate it in Cudnem and Navelim
— also in Goa. The project involved:
` Organising awareness
programmes/meetings of
farmers along with village
panchayat members.
` Providing guidance on best
agricultural practices, improved
technologies, hybrid seeds,
proper application of fertilisers,
etc.
` Facilitating farmers in availing
government subsidy on
mechanised ploughing of ?elds
and contributing to residual
share.
` Distributing free of cost
paddy seeds, organic manure,
chemical fertilisers, irrigation
facilities, fencing of ?elds, etc.
` Repairing of sluice gates,
bandharas, bandhs, etc.
Sustainable Livelihood through
Agriculture
For the efective implementation
of agriculture-based community
projects, Sesa Goa has tied up
with Betki Khandola Panlot Sangh
(BKPS), a water-shed organisation
registered under the Societies
Act. At Wadiwada (Goa), farmers
cultivate rice and vegetables in
?elds next to the river Mandovi.
Over the years, a bandh meant to
prevent saline water from entering
the ?elds had got damaged at
many places. A group of 15-20
bene?ciaries took up the task of
strengthening the bandh. Today,
there is a strengthened bandh that
is 1 km in length and with a width of
2.5 metres.
Inland Canal De-Silting in Bagwada
In Bagwada (Goa), an inland water
canal had not been de-silted several
years — resulting in ?ooding of the
?elds during high tide, thus making
it un?t for cultivation. The project
was taken up. Around 600 metres
canal was de-silted, bene?ting
about 70 farmers.
In addition, several farmers were
facilitated with fertilisers and
farming machineries like power
tiller, weed cutting machines, etc.
Other initiatives included training
programmes for women self-
help groups on making arti?cial
jewellery, which were conducted
in Amona-Navelim through the
Amona Panlot Sangh.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
31
Sesa Goa Limited Annual Report 2011
Accolades
Sesa Goa won several awards during
2010-11 in various categories. Some
of these are listed below.
` Awarded the Goan Achievers
Award for Corporate Social
Responsibility at an award
function organised by Navhind
Times and Viva Goa Magazine
in Goa on 28th March, 2011.
` Won the Environmental
Sustainability Excellence Award
2010-11, by the Indian Chamber
of Commerce at Kolkata on
9th March, 2011.
` Conferred the award of being
an ‘Excellent Water Efcient
Unit — Beyond Fence’ at the
Seventh Award for Excellence
in Water Management 2010,
organised by the Confederation
of Indian Industry (CII), Godrej
Green Business Centre.
` Excellence award for
Aforestation for Sanquelim and
overall performance Award for
Codli Mines by Indian Bureau
of Mines (IBM).
` Sesa Goa received British Safety
Councils International Safety
Award 2011 for its 5 units.
` Pig Iron Division and Met
Coke Division received the
’Gomantak Suraksha Patra’ for
safety performance for 2009
during an award function
organised by the Green Triangle
Society of Goa, in collaboration
with Inspectorate of Factories &
Boilers, in May 2010.
` Received the best performer
award instituted by Financial
Express–EVI in the Metals
and Mining category for
its contributions towards
the environment and the
excellence in the area of Green
Businesses.
` Won the runners up trophy
for the Best Corporate Social
Responsibility Award for its
Alternate Livelihood Project
by Bombay Stock Exchange at
its Sixth Social and Corporate
Governance Awards 2010, on
16th December, 2010 at Mumbai.
Cautionary Statement
Statements in this Management Discussion
and Analysis describing the Company’s
objectives, projections, estimates and
expectations may be ‘forward looking
statements’ within the meaning of applicable
laws and regulations. Actual results might
difer substantially or materially from those
expressed or implied. Important developments
that could afect the Company’s operations
include a downtrend in the steel and iron ore
sector, signi?cant changes in political and
economic environment in India, exchange rate
?uctuations, tax laws, litigation, changes in
environment regulations, labour relations and
interest costs
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
32
Enrichment of low grade iron ore
?nes for better resource utilization
Approach and Deployment: Iron ore
tailings contain iron concentrations
of around 45% or more, it may
become economically viable to
extract the iron content from
tailings, and due to the high cost
of land and environmental factors
it is worthwhile attempting to
minimize tailings pond volumes.
This reduction in tailing volume
could be achieved by adding Wet
High Intensity Magnetic Separation
(WHIMS) units to bene?ciation
plant. An in-depth study by
our technical team along with
international experts was carried
Case Study:
to implement the detailed process
and practices were also observed
in other similar industries. It
was decided to install advanced
vertically mounted pulsating
WHIMS instead of alternative
technique of Floatation to get
higher usable iron ore cyclones
?nes recovery from tailing
products. The installation of
WHIMS plant will enable resource
recovery, reducing the quantity of
tailings by about 50%.
Innovation accomplished in
practice and results:
Chemical analysis of tailing
samples indicated the presence of
WHIMS
SMBP, Surla
Fe ~45%, SiO2 ~18% and alumina
~5%. It was observed that Fe
could be increased to 60-62%
by the WHIMS process, which
would also reduce SiO2 and Al2O3
content by 50%. In addition to
the economic bene?t from the
utilization of the waste as a resource
which minimizes additional land
requirement. “This is one of the
path breaking techniques to recover
usable iron ore from tailings”.
Hence management decided to
replicate this best practice to all
the other processing plants and
implementation has already started
in all units.
Due to this innovation, a gain of
~11,000 tonnes/annum (at the rate
of ~2% of plant feed material) usable
ore recovered.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
33
Directors’ Report
To the Members,
The Board of Directors presents the Annual Report of the Company together with the Audited Statements of Account
for the ?nancial year ended 31st March, 2011.
This report, therefore, is drawn for the Company on a stand-alone basis.
2010 -2011
(` in crore)
2009 -2010
(` in crore)
Pro?t before provisions for depreciation and tax 4,468.93 2,715.47
Less: Depreciation 83.13 57.38
Provision for Tax
- Current Tax 963.00 538.00
- Deferred Tax (10.00) 2.00
Pro?t after depreciation and tax 3,432.80 2,118.09
Add: Balance brought forward from the preceding year 297.70 95.57
Transferred on amalgamation of Sesa Industries Ltd. 283.48 -
Pro?t available for appropriation 4,013.98 2,213.66
Appropriations
Proposed dividend/?nal dividend 304.18 270.06
Tax on distributed pro?t 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency Convertible Bonds converted during the year
(inclusive of dividend tax of ` 0.51 crore) 9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited on amalgamation (inclusive of
dividend tax of ` 1.83 crore) 12.88 -
General Reserve 2,500.00 1,600.00
Balance carried to Balance Sheet 1,137.72 297.70
4,013.98 2,213.66
In accordance with the requirements of the Listing Agreement, a consolidated Financial Statement of the Company is
included in this Annual Report. The consolidated pro?t after tax for the group for the year ended 31st March, 2011 is
`4,222.45 crore as against `2,639.04 crore for the previous year. The basic earnings per share (of `1 each) (excluding
minority interest) works out to `49.17 as against `32.41 for the previous year.
Amalgamation of Sesa Industries Limited with Sesa Goa Limited
The Hon’ble Supreme Court of India has vide Order dated 7th February, 2011, upheld the Order of the Single Judge of
High Court of Bombay at Goa dated 18th December, 2008 approving the Scheme of Amalgamation of Sesa Industries
Limited (SIL) with Sesa Goa Limited (SGL) with appointed date of 1st April, 2005.
Consequently the Board of Directors, at its meeting held on 12th March, 2011 allotted 9,398,864 equity shares of
face value of `1/- each bearing distinctive numbers 859,702,560 to 869,101,423 to the shareholders of erstwhile SIL,
holding shares as on Record Date, i.e. 28th February, 2011 and approved distribution of dividend to the aforesaid
allottees in terms of the Scheme of Amalgamation equivalent to ` 11.75 per share of face value of ` 1/-. As a result of
allotment, the paid up share capital of the Company has gone up from ` 859,702,559 to ` 869,101,423.
Consequently, the ?gures of the Pig Iron segment for 2010-11 were incorporated in the company’s results in the
quarter ended 31st March, 2011. The ?gures for 2010-11 are therefore not comparable with those of 2009-10 on
stand-alone basis.
Dividend
The board of directors has recommended a dividend of ` 3.50 per equity share of ` 1/- each for 2010-11, as against
` 3.25 per equity share of ` 1/- each declared in 2009-10.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
34
Operations
A summary on a stand-alone basis of the sales turnover and the working results is given below:
2010 – 2011 2009 – 2010
(All money values are net of freight) Qty. in million
tonnes
Value in ` crore Qty. in million
tonnes
Value in ` crore
Sale of Iron Ore* 14.7 6,736 15.2 4,238
Direct Exports 12.5 6,219 14.1 4,027
Other Sales 2.2 517 1.1 211
Sale of metallurgical coke 0.08 141 0.27 357
Sale of Pig Iron 0.27 664 – –
Pro?t after Tax – 3,433 – 2,118
* Includes 0.312 mt (amounting to ` 99.44 crore) transferred to pig iron division.
Note: Quantitative numbers are reported in DMT basis.
Sesa Goa produced 14.8 million tonnes of iron ore and
sold 14.7 million tonnes of iron ore in 2010-11. This was
marginally lower than the 16.0 million tonnes produced
and 15.2 million tonnes of iron ore sold in 2009-10.
The Company’s production and sales were adversely
afected by the imposition of ban on exports of iron ore
in Karnataka by the Government of Karnataka (GoK),
logistical hurdles and the extended monsoon in Goa
which hampered mining and logistics operations.
Logistic hurdles were also faced in Orissa.
During end July 2010, the Government of Karnataka
(GoK) issued a noti?cation to ban iron ore exports from
ten minor ports and in the process stopped all the iron
ore exports from the State. While this was aimed at
curbing illegal mining, it completely stalled operations
of existing regular miners like Sesa in Karnataka. On
5th April, 2011, the Supreme Court issued a ruling to lift
the Karnataka iron ore export ban from 20th April, 2011.
In 2010, Chinese import of iron ore reduced by 3.7% in
terms of volume. Much of this was on account of supply
side constraints in major iron ore producing countries.
Brazil also sufered from production shortfalls due to
heavy rainfall; while in India, the export ban in Karnataka
afected volumes. Both these countries are also facing
several environmental restrictions in increasing iron ore
exploration and production. In addition, development
of port capacities and inland logistics in Brazil and India
has not been in pace with growing requirements of the
seaborne iron ore trade.
In an environment of strong demand, these supply-
side constraints resulted in a steady increase in iron ore
prices. Consequently, sales realisation per MT of iron ore
sold increased drastically over the course of 2010-11.
This contributed to a increase in external sales revenue
of iron ore by 62% from ` 5,170 crore in 2009-10 to
` 8,387 crore in 2010-11.
On the cost front, there were some developments that
adversely afected Sesa Goa’s operations. The railway
freight meant for export has continuously increased and
on 28th February, 2011 Government of India increased
the export duty for iron ore lumps from 15% to 20%, and
that on ?nes from 5% to 20%. Despite these external
adversities, the Company maintained its margins and
delivered strong pro?ts.
Your Company has successfully integrated the Sesa
Resources (erstwhile Dempo) iron ore operations that
were acquired in the previous ?nancial year in our
operations.
Exploration
Sesa Group continued its strong focus on exploration
activities at its operations at Goa and Karnataka. During
2010-11, 6 drilling rigs were deployed across leases in
Goa and Karnataka. By 31st March, 2011, over 68,900
metres were drilled which resulted in a gross addition
of 53 mt to its reserves and resources base prior to a
depletion of 21 mt during 2010-11. In November 2010,
the Company closed its third party operations at the
Thakurani Mines in Barbil, Orissa as the contract renewal
was not on favorable commercial terms.
Total reserves and resources as on 31st March, 2011
stands at 306 million tonnes. The reserves and resources
position has been independently reviewed and certi?ed
as per JORC standard.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
35
Pig Iron & Met Coke Business
For the pig iron business, sales volumes decreased by 5%
to 266,090 MT in 2010-11.
However, with better market prices, sales revenues
increased by 22% from ` 552 crore in 2009-10 to ` 674
crore in 2010-11. Pig Iron pro?ts before interest, tax,
dividends and other non-recurring or non-allocable
incomes for the pig iron business increased by 21% to
` 141 crore in 2010-11
External sales revenues of met coke increased by 6% to
` 152 crore in 2010-11 and pro?ts before interest, tax,
dividends and other non-recurring or non-allocable
incomes for the met coke business increased by 161% to
` 89 crore in 2010-11.
Expansion Progress
The iron ore capacity expansion programme is on track
for completion by the end of 2012-13.
By then your Company aims to produce 40 mt in Goa
and Karnataka. Expansion of the pig iron capacity to
625 ktpa and the associated expansion of metallurgical
coke capacity to 560 ktpa are also progressing well for
commissioning by Q3 2011-12
Acquisitions
During 2010-11, the Company announced two major
investment decisions. On 16th August, 2010, your
Company announced a potential acquisition of 20%
stake in Cairn India Ltd. And, on 22nd March, 2011, it
announced the acquisition of assets of Bellary Steel &
Alloys Ltd (“BSAL”).
Cairn India Limited
Your Company announced our participation in the
proposed acquisition of Cairn India Ltd along with our
parent Company Vedanta Resources plc. Sesa Goa will
acquire 20% strategic stake in Cairn India under an
Open Ofer. If there is insufcient take up in the Open
Ofer, Sesa Goa will acquire the balance as part of the
Vedanta Group’s acquisition of a majority stake in Cairn
India. The total cash consideration for the shares to be
acquired is circa US$3 billion.
Sesa Goa received the clearance from Securities and
Exchange Board of India (“SEBI”) to proceed with the
open ofer of up to 20% of the shares of Cairn India, post
which your company launched the open ofer from
11th April, 2011 at a price of INR 355 per Cairn India
share which closes on 30th April, 2011.
On 19th April, 2011, your Company acquired 200 million
shares amounting to 10.4% stake in Cairn India from
Petronas International Corporation Ltd (“Petronas”) at
a price of ` 331 per share through bulk deal on Bombay
Stock Exchange Limited. This acquisition is in addition
to the Open Ofer launched by your Company on 11th
April, 2011 and ends on 30th April, 2011.
Bellary Steel and Alloys Limited
The Company acquired the assets of the upcoming Steel
Plant Unit of BSAL for an all cash consideration of
` 220.00 crore. BSAL was in the process of putting up a
0.5 mtpa Steel Plant Project at Bellary. The assets of the
under construction plant acquired include a free hold
land of around 700 acres, building and structures, plant
and machinery and other assets of the Steel Plant. The
assets have been transferred on an “As is where is” Basis
to SGL.
Your Company is presently conducting a detailed
assessment in order to determine the best way forward
for commissioning the steel plant at the earliest.
However, the acquisition has been challenged by JSW
Steel Ltd in the Supreme Court of India, which has asked
the parties to maintain status quo until the matter is
decided.
Outlook
The Company remains optimistic on the demand
and price outlook for Iron Ore in the Global Seaborne
trade. In fact, the consensus expectations suggest a
global de?cit for the next 2 years on the back of supply
constraints. In the longer term, however, prices, will
come down as supply picks-up with several new
investments coming on stream.
On the cost front, increased royalty rates, railway and
road freight and export duty continue to exert pressure
on the Company’s margins. In addition, uncertain
policies and slow progress on logistics infrastructure
development will continue to afect volumes.
In this milieu, your Company reiterates its commitment
to the medium term growth objective of achieving 40
mt of production by 2012-13 subject to certain statutory
clearances. Sesa Goa remains focused on extracting
the maximum internal efciencies and operational
productivity to develop the Company using its
sustainable growth model. As with last year, we remain
cautiously optimistic for overcoming challenges and
delivering good growth in 2011-12.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
36
ISO Certi?cation
All the certi?cates under ISO: 9001-2008, ISO: 14001-
2004 and OHSAS 18001-2007 for Quality Management,
Environment Management, Occupational Health and
Safety Management respectively, are being maintained
by the Company after periodical surveillance audits.
Sesa Community Development
Foundation
The Foundation runs two units, viz. the Sesa Technical
School (STS) and the Sesa Football Academy (SFA). The
Company’s contribution during the year was ` 3.29
crore to the Foundation.
Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings
and Outgo
Particulars prescribed under Section 217(1) (e) of the
Companies Act, 1956, are given in Annexure A, which
forms part of this Report.
Ecology and Social Development
Your Company remains focused on improving the
ecology and the environment. Its mine reclamation
eforts have signi?cantly improved the bio-diversity
of the working as well as reclaimed mines. Successful
replication of proven biotechnologies for mine land
reclamation has become an integral part of the
Company’s resource planning process. Trials have also
been conducted to utilise the reject dump area for
?oriculture and the cultivation of other forest products.
Sesa Goa accords high priority to the safety of its
employees. Conscious eforts were made to improve
safety practices across all the units. DuPont Safety
Services, Internationally best known consultant in
safety, were engaged to undertake the safety culture
assessment across all the units.
The Company had published Sustainable Development
Report for 2008-2009 and 2009-10 based on
International Guidelines of GRI G3 with application level
of A+ and has plans to publish at the same level in 2010-11.
Sesa Goa continued its focus on CSR activities with
strong commitment in Stake holder engagement to
understand the community needs. Company has
associated with reputed CSR partners to implement the
CSR programs. Notably among them is University of
Agricultural Sciences Dharwad for Alternative Livelihood
Methods for the communities around A. Narain Mine,
Chitradurga, Karnataka, Gram Nirman-Codli with
Mineral Foundation of Goa and Government of Goa and
so on. Details on the Company’s CSR and sustainable
development initiatives are given in the chapter on
Management Discussion and Analysis that forms a part
of this Annual Report.
Awards
Your Company was awarded with the following
prestigious awards during the year 2010-11
` Awarded the Goan Achievers Award for Corporate
Social Responsibility at an award function organised
by Navhind Times and Viva Goa Magazine in Goa
on 28th March, 2011.
` Won the Environmental Sustainability Excellence
Award 2010-11, by the Indian Chamber of
Commerce at Kolkata on 9th March, 2011.
` Conferred the award of being an ‘Excellent Water
Efcient Unit — Beyond Fence’ at the Seventh
Award for Excellence in Water Management 2010,
organised by the Confederation of Indian Industry
(CII), Godrej Green Business Centre.
` Excellence award for Aforestation for Sanquelim
and overall performance Award for Codli Mines by
Indian Bureau of Mines (IBM).
` Sesa Goa received British Safety Councils
International Safety Award 2011 for its 5 units.
` Pig Iron Division and Met Coke Division received the
’Gomantak Suraksha Patra’ for safety performance
for 2009 during an award function organised by the
Green Triangle Society of Goa, in collaboration with
Inspectorate of Factories & Boilers, in May 2010.
` Received the best performer award instituted
by Financial Express–EVI in the Metals and
Mining category for its contributions towards the
environment and the excellence in the area of
Green Businesses.
` Won the runners up trophy for the Best Corporate
Social Responsibility Award for its Alternate
Livelihood Project by Bombay Stock Exchange at
its Sixth Social and Corporate Governance Awards
2010, on 16th December, 2010 at Mumbai.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
37
Fixed Deposits
As reported last year, the Company has discontinued
renewal of its ?xed deposits on maturity. As on 31st
March, 2011, all ?xed deposits had matured. 11 deposits
amounting to ` 1.56 lakhs remained unclaimed. All these
depositors are regularly advised about maturity of their
deposits and urged to claim these as soon as they can.
Safety
The FSI is an index which simultaneously takes into
account both the frequency and severity of accidents.
The Company’s safety performance is given below:
Division FSI
2010-11 2009-10
Mining 0.141 0.308
Shipping Division 5.477 0
Shipbuilding Division 0.106 1.019
Metallurgical Coke Division 0 0
Pig Iron Division 0 1.648
SGL Group 0.561 0.819
Group Structure
The Agarwal Group being a group de?ned under the
Monopolies and Restrictive Trade Practices Act, 1969,
controls the Company. A list of its group entities is given
below:
Sr.
No
List of Vedanta Group Companies Country of
incorporation
1 Mr. Anil Agarwal
2 Anil Agarwal Discretionary Trust Bahamas
3 Onclave PTC Limited Bahamas
4 Volcan Investments Limited Bahamas
5 Vedanta Resources Plc Great Britain
Direct Subsidiaries of the Parent Company
6 Vedanta Resources Holding Limited Great Britain
7 Vedanta Resources Jersey Limited Jersey(CI)
8 Vedanta Resources Jersey II Limited Jersey(CI)
9 Vedanta Finance (Jersey) Limited Jersey(CI)
10 Vedanta Resources Investments Limited Great Britain
11 Vedanta Jersey Investments Limited Jersey(CI)
Indirect Subsidiaries of the Parent Company
12 Bharat Aluminium Company Limited India
13 Copper Mines Of Tasmania Pty Limited Australia
14 Fujariah Gold UAE
15 Hindustan Zinc Limited India
16 The Madras Aluminium Company Limited India
17 Monte Cello BV Netherlands
18 Monte Cello Corporation NV Netherlands
19 Konkola Copper Mines PLC Zambia
20 Sterlite Energy Limited India
Sr.
No
List of Vedanta Group Companies Country of
incorporation
21 Sesa Goa Limited India
22 Sesa Resources Limited India
23 Sesa Mining Corporation Limited India
24 Sterlite Industries (India) Limited India
25 Goa Maritime Private Limited India
26 Sterlite Opportunities and Venture Limited India
27 Sterlite Infra Limited India
28 Thalanga Copper Mines Pty Limited Australia
29 Twin Star Holding Limited Mauritius
30 Vedanta Aluminium Limited India
31 Richter Holding Limited Cyprus
32 Westglobe Limited Mauritius
33 Finsider International Company Limited Great Britain
34 Vedanta Resources Finance Limited Great Britain
35 Vedanta Resources Cyprus Limited Cyprus
36 Welter Trading Limited Cyprus
37 Lakomasko BV Netherlands
38 THL Zinc Ventures Limited - Former THL KCM
Limited
Mauritius
39 Twinstar Energy Holdings Limited - Former
THL Aluminium
Mauritius
40 THL Zinc Limited - Former KCM Holdings
Limited
Mauritius
41 Sterlite (USA) Inc. USA
42 Talwandi Sabo Power Limited India
43 Allied Port Services Pvt Ltd India
44 Konkola Resources Plc Great Britain
45 Vizag General Cargo Berth Pvt. Limited India
46 Twin Star Mauritius Holding Limited Mauritius
47 Vedanta Namibia Holdings Limited Namibia
48 Skorpion Zinc (Pty) Limited Namibia
49 Namzinc (Pty) Limited Namibia
50 Skorpion Mining Company (Pty) Limited Namibia
51 Amica Guesthouse (Pty) Ltd Namibia
52 Rosh Pinah healthcare (Pty) Ltd Namibia
53 Black Mountain Mining (Pty) Ltd South Africa
54 THL Zinc Holding BV - Former Labaume BV Netherlands
55 Lisheen Mine Partnership Ireland
56 THL Zinc Holding Cooperative U.A Netherlands
57 Pecvest 17 Pvt. Ltd. South Africa
58 Vedanta Lisheen Finance Limited Ireland
59 Vedanta Base Metals (Ireland) Limited Ireland
60 Vedanta Lisheen Mining Limited Ireland
61 Killoran Lisheen Mining Limited Ireland
62 Killoran Lisheen Finance Limited Ireland
63 Lisheen Milling Limited Ireland
64 Killoran Concentrates Limited Ireland
65 Killoran Lisheen Limited Ireland
66 Killoran Lisheen Holdings Limited Ireland
67 Azela Limited Ireland
68 Paradip Port Services Pvt Limited India
69 MALCO Power Company Limited India
70 Malco Industries Limited India
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
38
Directors’ Responsibility Statement
Your Directors con?rm that:
(i) the applicable accounting standards have been
followed along with proper explanations relating
to material departures, if any, for preparation of the
annual accounts;
(ii) the accounting policies have been selected and
applied consistently and judgments and estimates
have been made that are reasonable and prudent,
so as to give a true and fair view of the state of
afairs of the Company at the end of the ?nancial
year ended 31st March, 2011 and of the pro?ts of
the Company for that year;
(iii) proper and sufcient care has been taken
to maintain adequate accounting records in
accordance with the provisions of the Companies
Act, 1956, for safeguarding the assets of the
Company and for preventing and detecting fraud or
other irregularities;
(iv) the annual accounts have been prepared on a going
concern basis.
Directors
Mr. Ashok Kini and Mr. P. G. Kakodkar, Directors, retire
by rotation at the ensuing Annual General Meeting and,
being eligible, ofer themselves for re-appointment.
The Board of Directors, at its meeting held on 19th July,
2010 appointed Mr. Jagdish Pal Singh as Additional
Director of the Company. In terms of Section 260 of the
Companies Act, 1956, he will be holding ofce up to the
ensuing Annual General Meeting, and being eligible,
ofer himself for appointment.
Auditors
The Company’s Auditors, M/s. Deloitte Haskins & Sells,
Chartered Accountants retire at the ensuing Annual
General Meeting and are eligible for re-appointment.
Compliance Certi?cate
A certi?cate from the Auditors of the Company
regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing
Agreement is attached to this Report along with report
on Corporate Governance.
Listing
As stipulated under Clause 32 of the Listing Agreement,
the names and addresses of Stock Exchange on which
the Company’s equity shares are listed are:
1) Bombay Stock Exchange Limited,
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai - 400 001.
2) National Stock Exchange of India Limited,
Exchange Plaza, Bandra Kurla Complex,
Bandra East, Mumbai - 400 051.
Your Company con?rms that Annual Listing Fees for the
year 2010-11 have been paid.
Employees
Your Directors express their deep appreciation for the
unrelented co-operation and support rendered by the
employees at all levels of the Company. Your Directors
wish to lay emphasis on safe working culture in the
organization and urge all the employees to not only
follow safety standards but also to excel in all safety
parameters.
Statement of Particualrs of Employees as required in
terms of Section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees)
Rules 1975, is annexed hereto.
Acknowledgement
Our Chairman, Mr. S. D. Kulkarni, has stepped down from
the Board w.e.f. 24th January, 2011 after serving the
Company for 10 years. The Board of Directors would like
to thank Mr. Kulkarni for his substantial contributions,
and for guiding Sesa Goa to its pioneering position.
The Directors would like to thank the employees and
employee unions, shareholders, customers, suppliers,
bankers, regulatory authorities and all the other business
associates of the Company for their con?dence and
support to its Management.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
39
Annexure-A to Directors’ Report
Information as per Section 217 (1) (e) read with the
Companies (Disclosure of particulars in the Report of Board
of Directors) Rules, 1988 and forming part of the Directors’
Report for the year ended 31st March, 2011.
(A) Conservation of Energy
Fuel consumption and engine emission levels of
the barge ?eet, transport vehicles and earth moving
equipment, together with the optimisation of electrical
energy consumption in all activities, remains a focus
area of the Company. Waste heat from the coke ovens
is being utilised in the power plant to generate clean
electrical energy.
(B) Technological Absorption
Particulars with respect to Technology Absorption are
given below in the prescribed Form B:
Research and Development (R&D):
1. Speci?c areas in which R&D have been carried out by
the Company:
The Company is looking for new process designs
and applications of efcient machinery for iron ore
bene?ciation and mining on a continuous basis. Focus
is also on towards process development work on the
recovery of iron from tailings along with optimization
of blend of various grades to achieve customer
satisfaction and to conserve the iron ore resources.
While the Company holds a patent in India for the
system of producing metallurgical coke by the non-
recovery method based on the technology that it has
developed, the European Patent Ofce has cleared
the innovation for grant of patent in Europe. The
technology is continuously upgraded through various
initiatives.
The US Patent Ofce has allowed issuance of patent
on company’s latest innovation titled “Reduction of
Sulphur-containing gases during conversion of coal
into metallurgical coke”.
The Company has set up a state-of-the art Coal
Carbonization Laboratory that is equipped with
1-tonne pilot non-recovery coke oven, developed
in-house and is ?rst of its kind in the non-recovery
coke oven category, apart from modern facilities for
coal characterization and coke quality evaluation. The
facility is used for coal selection and optimization of
coal blend.
2. Bene?ts derived as a result of the above R & D:
Reductions in operating cost and environmental
control improvement, besides optimizing the product
mix as well as conservation of resource are the results
of the above activities. The coke business will also be
reaping bene?ts through upgrading of technology.
3. Future plans of action:
Developmental work will continue to be carried out in
all the above areas with a focus on cost reduction and
quality improvement. The coke-making technology
would be under continuous focus for further design
improvements with an objective to reduce capital
cost. Pilot oven facilities shall be used for maximizing
cheaper semisoft coal through coal blend optimization
tests
4. Expenditure on R&D:
2010-2011
(` in crore)
2009-2010
(` in crore)
a) Capital - -
b) Recurring (revenue) 0.29 0.29
c) Total 0.29 0.29
d) Total R & D expenditure
as a percentage of total
turnover
0.004% 0.006%
Technology Absorption, Adaptation and Innovation:
1. Eforts made towards technology absorption,
adaptation and innovation are outlined below:
The Company maintains a close contact and
continuous interaction with its principal shareholder,
other consultants, its foreign associates, customers as
well as with the suppliers of specialised equipment.
Various innovative initiatives undertaken for
enhancement of ecology have been detailed elsewhere
above.
2. Bene?ts derived as a result of the above eforts are
inter alia:
a) Improved mining efciencies and product quality
control.
b) Improvement in pollution control system.
c) New design of coke ovens with better combustion
control and improved conservation of heat
energy.
d) Improved and sustainable resource and
environment management.
3. On completion of the research project conducted
in association with the Microbiology Dept. of Goa
University, Goa, mine land reclamation will become
further efective.
(C) Foreign Exchange Earnings and Outgo
The Company’s major foreign exchange earnings and
outgo are on account of export of iron ore and import
of coking coal respectively. During the year, foreign
exchange earnings were ` 6,281 crore and outgo
(including dividend remittance) ` 1,112 crore (details
are given in Schedule 19). Hence, the net foreign
exchange earning was ` 5,169 crore.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
40
Annexure-B to Directors’ Report
Particulars of Employees pursuant to Section 217( 2A) of the Companies Act, 1956, read with the Companies (Particulars of
Employees) Rules, 1975, forming part of the Directors’ Report for the year ended 31st March, 2011
Sr.
No.
Name of the
Employee
Designation/ Nature
of Duties
Gross
Remuneration
(` in Crores)
Quali?cation Experience
in Years
Date of
Commencement
of Employment
Age
of the
Employee
(Years)
Last Employment held
before joining the
Company
1 2 3 4 5 6 7 8 9
(A) Employed throughout the ?nancial year
1 Mukherjee P. K. Managing Director 2.41 B.Com (Hons.) F.C.A., A.I.C.W.A. 31 14-04-1987 55 Ceat Tyres of India Ltd.,
Calcutta
2 Rai A. K. Wholetime Director 1.29 B.Sc. Mining Engg. 1st Class
Mine Manager’s Certi?cate
35 14-04-1975 59 Sr. General Manager, Pig
Iron Plant, Sesa Industries
Ltd. Amona
3 Pradhan Amit Wholetime Director 1.00 M.Sc.(Physics) 33 15-01-1990 56 Wholetime Director Sesa
Industries Ltd.
4 Joshi A. N. V P - Corporate
Afairs
0.68 B.Tech (Mining Engg.) 1st Class
Mine Manager's Certi?cate
33 03-07-1993 56 Visakhapatnam Steel
Plant
5 Patil M. K. A V P - HSEC 0.61 M.Sc. (Agriculture), MBA 22 15-04-1991 47 Zuari Agro Chemicals
Ltd. , Goa
(B) Employed for part of the ?nancial year
1 Czamarka
Gustavo
Head - Iron Ore
Marketing
1.37 B.A. (Economics), PGDBM ,
Master International Mgmt
16 30-08-2010 36 VALE Singapore
2 Patnaik Tapan BM - Mining Eastern
Region
0.81 B.Sc. Engg (Met) 31 20-09-1990 54 G M - Pig Iron Plant, Sesa
Industries Amona Goa
3 Surendra K. V. GM - Mining
Karnataka
0.05 Diploma in Mining & Mine
Survey
28 02-12-2002 48 V M Salgaocar & Bros.
Pvt. Ltd.
4 D'souza Diogo
A.
Head Mechanic I 0.05 Std. VII 38 20-12-1976 59 Laxmi Garage Mapusa
5 Ghogale
Narayan N.
Sr. Mine Foreman 0.06 SSC 33 03-10-1980 60 M S Agrawal Minerals
(Goa) Pvt. Ltd.
6 Rajanna
Gowda M. V.
Asst. Manager -
Mining
0.08 Diploma Mining Engg 39 01-04-1994 60 M/s Mineral Enterprises
Pvt. Ltd. Chitradurga ,
Karnataka
Notes:
1 Remuneration as shown above includes Salary, House Rent Allowance, Performance Pay, Commission (in case of Managing
Director), Company’s Contribution to Provident Fund & Annuity Fund, Leave Travel Assistance and expenditure by the
Company on accommodation, medical and other facilities, wherever applicable, as per contracts of service. In addition the
Wholetime Directors/employees are entitled to Gratuity and they are also covered under Group Personal Accident Insurance
Policy.
2 None of the employees mentioned above is a relative of any Director of the Company.
3 The nature of employment is contractual.
4 No employee holds by himself or alongwith his/her spouse and dependent children, two percent or more equity shares of the
Company.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
41
We, P.K. Mukherjee, Managing Director and Sushil Gupta, Director Finance, responsible for the ?nance function, certify
that:
(a) We have reviewed the ?nancial statements, read with the cash ?ow statement of Sesa Goa Limited for the year
ended 31st March, 2011 and that to the best of our knowledge and belief, we state that;
(i) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that may be misleading;
(ii) these statements present a true and fair view of the Company’s afairs and are in compliance with current
accounting standards, applicable laws and regulations.
(b) To the best of our knowledge and belief, there are no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the Company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for ?nancial reporting. We have
evaluated the efectiveness of internal control systems of the Company pertaining to ?nancial reporting and
have not noticed any de?ciency that need to be recti?ed or disclosed to the Auditors and the Audit Committee.
(d) During the year under reference-
(i) there were no signi?cant changes in the internal control over ?nancial reporting;
(ii) No signi?cant changes in accounting policies were made that require disclosure in the notes to the ?nancial
statements; and
(iii) No instance of signi?cant fraud and the involvement therein, if any, of the management or an employee
having a signi?cant role in the Company’s internal control system over ?nancial reporting, has come to our
notice.
Place: Panaji-Goa P. K. Mukherjee Sushil Gupta
Date: 25th April, 2011 Managing Director Director Finance
CEO / CFO Certi?cation
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
42
The Securities and Exchange Board of India (SEBI) regulates corporate governance practices of companies listed
on the Indian Stock Exchanges. These regulations are noti?ed under Clause 49 of the Listing Agreements of all the
Stock Exchanges in the country. They specify the standards that Indian companies have to meet, and the disclosures
that they have to make, with regard to corporate governance. Sesa Goa Limited (‘Sesa Goa’ or ‘the Company’)
has established systems and procedures to comply in letter and in spirit with the provisions of Clause 49 of the
Listing Agreement. This chapter, along with the chapters on Additional Shareholders Information and Management
Discussion and Analysis, reports Sesa Goa’s compliance in this regard.
1. Company’s Philosophy on Corporate Governance
Sesa Goa is committed to executing sustainable business practices and creating long-term value for all its
stakeholders. To pursue this objective, the Company remains steadfast in its value systems that incorporate
integrity, transparency and fairness across all its business activities.
The Company continues to focus on its commitments towards the development of the community where it
operates. It has adopted best practices towards preserving the environment and adherence to the highest safety
standards remains a focus area across all operations. Sesa Goa’s value systems are based on the foundation of
fair and ethical practices in all its dealings with stakeholders including customers, vendors, contractors, suppliers
and all others who are part of the Company’s business value chain.
Towards this end, all Directors and Senior Management are committed to the Company’s Code of Conduct, the
compliance to which is periodically reviewed.
2. Board of Directors
i. Composition of the Board
As on 31st March, 2011, the Company has eight Directors on its Board, of which three are Executive Directors
and ?ve Non-Executive Directors. Four of the Non-Executive Directors are independent. Mr. S. D. Kulkarni,
Independent Non-Executive Director and Non-Promoter Chairman resigned w.e.f 24th January, 2011. The
Board of Directors have not yet appointed a Chairman.
ii. Directors’ attendance record and Directorship held
The names and categories of the Directors on the Board, their attendance at Board meetings during the year
and at the last Annual General Meeting, as also the number of Directorships and Committee memberships
held by them in other companies are given below:
Name of the Directors Category No. of Board meetings
during the year 2010-11
Whether attended
last AGM held on
19th July, 2010
Number of
Directorships
in other public
companies *
Number of Committee
positions held in public
companies *
Held Attended Member Chairman
S.D. Kulkarni
(Chairman)
(resigned w.e.f
24th January, 2011)
Independent
Director
7 0 No 2 2 2
P. G. Kakodkar Independent
Director
10 3 No 8 3 2
G. D. Kamat Independent
Director
10 8 Yes - 1 -
J.P Singh
(Appointed w.e.f
19th July, 2010)
Independent
Director
9 4 Not Applicable 1 1 1
Report on Corporate Governance
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
43
Name of the Directors Category No. of Board meetings
during the year 2010-11
Whether attended
last AGM held on
19th July, 2010
Number of
Directorships
in other public
companies *
Number of Committee
positions held in public
companies *
Held Attended Member Chairman
Ashok Kini
(Appointed w.e.f
24th January, 2011)
Independent
Director
4 1 Not Applicable 3 4 -
K. K. Kaura Non-Executive
Director
10 5 Yes 1 1 -
A. Pradhan Whole-time
Director
10 10 Yes - - -
A.K. Rai Whole-time
Director
10 9 Yes 2 - -
P.K. Mukherjee Managing
Director
10 10 Yes 2 2 -
* excluding private limited companies, foreign companies and Companies under Section 25 of the
Companies Act, 1956.
None of the Directors on the Board is a member of more than ten Committees and Chairman of more
than ?ve Committees (as speci?ed in Clause 49), across all the companies in which he is a Director. The
necessary disclosures regarding Committee positions have been made by the Directors.
Dates for the Board Meetings in the ensuing year are decided well in advance and communicated to the
Directors. The agenda along with the explanatory notes are sent in advance to the Directors. Additional
meetings of the Board are held when deemed necessary by the Board.
The information as required under Annexure IA to Clause 49 is being made available to the Board.
The Board periodically reviews compliance reports of all laws applicable to the Company. Steps are taken by
the Company to rectify instances of non-compliance, if any.
During 2010-11, the Company did not have any material pecuniary relationship or transactions with
Non-Executive Directors.
iii. Number of Board Meetings
Ten Board meetings were held during the year 2010-11 and the gap between two meetings did not exceed
four months. The dates on which the Board meetings were held were as follows: 19th April, 2010, 19th July,
2010, 16th August, 2010, 18th October, 2010, 14th November, 2010, 30th December, 2010, 24th January, 2011,
17th February, 2011, 12th March, 2011 and 19th March, 2011.
iv. Code of conduct
The Company has adopted the Sesa Goa Code of Conduct for Executive and Non-Executive Directors,
Senior Management Personnel and other executives of the Company. The Company has received
con?rmations from the Executive and Non-Executive Directors, as well as Senior Management Personnel
regarding compliance of the Code during the year under review. The Code of Conduct is posted on the
website of the Company.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
44
v. Directors Pro?le
Sr.
No.
Name Age Quali?cation Experience Other Directorships*
i. P.G. Kakodkar
DIN: 00027669
74 M.A.
(Economics)
Appointed as Director on 31st March, 2000.
Over 40 years experience in State Bank
of India, Retired as Chairman of SBI. He is
currently IT and Banking Consultant.
o Goa Carbon Ltd.
o Uttam Galva Steel Ltd.
o Financial Technologies
(India) Ltd.
o Fomento Resorts and
Hotels Ltd.
o Centrum Finance Ltd.
o Multi Commodity
Exchange of India Ltd.
o IBX Forex Ltd.
o Anand Rathi Financial
Services Ltd.
ii. G.D. Kamat
DIN: 00015932
76 B.A., L.L.B. Appointed as Director on 22nd December,
2005.
Over 45 years experience in the ?eld of
Legal Practice and Judiciary. Retired as
Chief Justice of Gujarat High Court in 1996.
Presently engaged in Judicial work relating
to Arbitration and Conciliation.
-
iii. K. K. Kaura
DIN: 00006293
64 BE (Hons)
Mechanical
Engg.
Director since 30th October, 2007.
18 years of experience at ABB India
at various operations and business
management positions. He was a member
of Directors of ABB India from 1996 and
was Managing Director and County
Manager of ABB from 1998 to 2001. In 2002
joined Sterlite and was Managing Director
of Hindustan Zinc Ltd. and became
the Chief Operating Ofcer of Vedanta
Resources plc since its inception. He was
a Director of Hindustan Zinc Ltd., Vedanta
Alumina and Copper Mines Tasmania Pty
Ltd. and became Chief Executive Ofcer,
Vedanta Resources plc, also Managing
Director of Sterlite and Deputy Chairman of
Konkola Copper Mines.
o ACC Ltd.
iv. J.P Singh
DIN: 02782928
63 M.A, MPA
(Harvard), IAS
Retd. (Rajasthan
1972)
Appointed as Additional Director on
19th July, 2010.
He is Former Secretary, Ministry of Finance
(DOD) and Ministry of Mines, Special
Secretary Labour and has over 36 year of
executive experience in key positions in
the state and union government.
o BEML Limited
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
45
Sr.
No.
Name Age Quali?cation Experience Other Directorships*
v. Ashok Kini
DIN: 00812946
65 B.Sc/M.A./
C.A.I.I.B
(Certi?ed
Associate,
Indian Institute
of Bankers)
Appointed as Director on 24th January, 2011.
Mr. Ashok Kini is former Managing Director,
State Bank of India. He was responsible
for the Bank’s IT plans, from concept
to execution and vendor management,
domestic distribution, retail business,
consumer banking, marketing/brand
management, etc. He is currently on
Board of IndusInd Bank Limited, Gulf
Oil Corporation Limited, UTI Asset
Management Company and Financial
Information Network & Operations Pvt.
Limited.
o Gulf Oil Corporation
Limited
o IndusInd Bank Limited
o Financial Inclusion
Network and Operations
Limited
vi A. Pradhan
DIN: 00128568
56 M.Sc. (Physics)
from I.I.T. Delhi
Appointed as Director on 1st July, 2000.
33 years experience in Materials/Project
Management.
-
vii. A.K. Rai
DIN: 00016060
59 B.Sc. in Mining
Engineering
from Banaras
Hindu
University
Appointed as Director on 1st February, 1999.
34 years experience in the ?eld of Mining.
o Sesa Resources Limited
o Sesa Mining Corporation
Limited
viii. P.K. Mukherjee
DIN: 00015999
55 B. Com. (Hons.)
F.C.A., A.I.C.W.A.
Appointed as Director on 1st July, 2000 and
Managing Director from 1st April, 2006.
32 years experience in Finance, Accounts,
Costing, Taxation, Legal and Management.
o Sesa Resources Limited
o Sesa Mining Corporation
Limited
* excluding private limited companies, foreign companies and Companies under Section 25 of the
Companies Act, 1956.
3. Audit Committee
The Audit Committee of the Company is constituted in line with the provisions of Clause 49 of the Listing
Agreements with the Stock Exchanges read with Section 292A of the Companies Act, 1956.
i. Terms of reference
a) Oversight of the Company’s ?nancial reporting process and the disclosure of its ?nancial information
to ensure that the ?nancial statement is correct, sufcient and credible.
b) Recommending to the Board, the appointment, re-appointment and, if required, the replacement or
removal of the statutory auditors and ?xation of audit fees.
Approval of payment to statutory auditors for any other services rendered by the statutory auditors.
c) Reviewing with management the annual ?nancial statements before submission to the Board,
focussing primarily on:
? Matters required to be included in the Director?s Responsibility Statement to be included in the
Board’s report in terms of Clause (2AA) of Section 217 of the Companies Act, 1956;
? Changes, if any, in accounting policies and practices and reasons for the same,
? Major accounting entries involving estimates based on the exercise of judgement by management,
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
46
? Ouali?cations in draft audit report,
? Signi?cant adjustments arising out of audit,
? Compliance with listing and legal requirement concerning ?nancial statements,
? Disclosure of any related party transactions.
d) Reviewing with management, performance of statutory and internal auditors, adequacy of the internal
control systems.
e) Reviewing the adequacy of internal audit function, including structure of the internal audit department,
stafng and seniority of the ofcial heading the department, reporting structure coverage and
frequency of internal audit.
f) Discussion with internal auditors any signi?cant ?ndings and follow up thereon.
g) Reviewing the ?ndings of any internal investigations by the internal auditors into matters where
there is suspected fraud or irregularity or a failure of internal control systems of a material nature and
reporting the matter to the Board.
h) Discussion with statutory auditors before the audit commences, nature and scope of audit as well as
have post audit discussion to ascertain any area of concern.
i) To look into the reasons for substantial defaults in payment to the depositors, debenture holders,
shareholders (in case of non payment of declared dividends) and creditors.
j) Reviewing with management, the quarterly ?nancial statements before submission to the Board for
approval.
k) To review the functioning of the Whistle Blower mechanism, in case the same is existing.
l) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
ii. Composition, names of members and attendance during the year
As on 31st March, 2011, the Audit Committee comprised of four Independent Directors and one
Non-Executive Director. The composition of the Audit Committee and the details of meetings attended by
the members of the Audit Committee are given below:
Name of the Member Category No. of Meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 4 1
S. D. Kulkarni (upto 24th January, 2011) Independent Director 4 -
G. D. Kamat Independent Director 4 4
K. K. Kaura Non-Executive Director 4 4
J. P. Singh (w.e.f. 19th July, 2010) Independent Director 3 3
Ashok Kini (w.e.f. 19th March, 2011) Independent Director - -
Four Audit Committee Meetings were held during the ?nancial year ended 31st March, 2011 and the gap
between two meetings did not exceed four months. The dates on which the Audit Committee Meetings
were held are as follows:
19th April, 2010, 19th July, 2010, 18th October, 2010 and 24th January, 2011. Necessary quorum was present
at the above meetings.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
47
The Audit Committee Meetings are usually held at the Corporate Ofce of the Company and are attended by
the Managing Director, Director Finance (Designate), AVP Finance and the representatives of Statutory Auditors
and Internal Auditors. The Company Secretary & AVP Legal acts as the Secretary to the Audit Committee.
The Chairman of the Audit Committee, Mr. P.G. Kakodkar was not present at the last Annual General Meeting
of the Company held on 19th July, 2010 due to ill health.
4. Remuneration Committee
i. Terms of reference
The Company has constituted a remuneration committee of Directors in September 2000. The broad terms
of reference of the Committee are to appraise the performance of Managing/Executive Directors, determine
and recommend to the Board, compensation payable to them, details of which are included in this report.
ii. Composition, names of members and attendance during the year
As of 31st March, 2011, four member Remuneration Committee comprised of Non-Executive Directors,
of whom three were Independent. The composition of the Remuneration Committee and the details of
meetings held and attended by the member of the Remuneration Committee are given below:
Name of the Member Category No. of Meetings during the year 2010-11
Held Attended
S. D. Kulkarni - Chairman (upto 24th January, 2011) Independent Director 2 -
P. G. Kakodkar Independent Director 2 -
G. D. Kamat Independent Director 2 2
K. K. Kaura Non-Executive Director 2 2
Ashok Kini
(w.e.f. 19th March, 2011)
Independent Director - -
Two Remuneration Committee Meetings were held during the year 2010-11 on 19th July, 2010 and
24th January, 2011.
The Chairman of the Remuneration Committee, Mr. S.D. Kulkarni, was not present at the Annual General
Meeting of the Company held on 19th July, 2010 due to ill health.
iii. Remuneration Policy
Non-Executive Directors
Remuneration of the Non-Executive Directors of the Company by way of sitting fees and commission is
decided by the Board of Directors. Payment of commission to any individual Non-Executive Director is
determined by the Board and is broadly based on attendance, contribution at the Board Meetings and
various Committee Meetings as well as time spent on various issues other than at these meetings.
Sitting Fees
The Company pays sitting fees of ` 20,000 per meeting for attending Board Meeting and Audit Committee
Meeting and ` 10,000 for other Committee Meeting to the Directors other than the Managing and the
Whole-time Directors (including the Whole-time Directors of the Subsidiary Companies, Sesa Resources
Limited and Sesa Mining Corporation Limited). Mr. K.K. Kaura, Non-Executive Director, has waived the
payment of Sitting Fees for attending Board/Committee Meetings.
Managing and Executive Directors
The Company pays remuneration to its Managing Director by way of salary, commission and perquisites and
to its Executive Directors by way of salary, executive allowance, performance linked pay and perquisites. The
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
48
remuneration is approved by the Board of Directors and is within the overall limits approved by shareholders
of the Company.
Service Contracts, Severance Fees and notice period with Managing and Executive Directors:
Managing Director:
Period of contract : 3 years
Termination of the contract : By either party giving the other six months notice. If
he ceases to hold the ofce of Director, he shall ipso
facto and immediately cease to be Managing Director
and the Contract shall come to an end without any
obligation on either party.
Severance fees : Nil, except for short notice pay.
Executive Directors:
Period of contract : 5 years
Termination of the contract : Same as that of the Managing Director
Severance fees : Nil, except for short notice pay.
iv. Remuneration
a) Managing Director and Executive Directors:
` in crore
Name Salary Commission Perquisites Retirement Bene?ts Total
Mr. P. K. Mukherjee 0.75 0.74 0.30 0.62 2.41
Mr. A. K. Rai 0.85 - 0.20 0.24 1.29
Mr. A. Pradhan 0.70 - 0.15 0.15 1.00
Mr. H. P. U. K. Nair
(retired on 01/10/2009)
0.15 - - - 0.15
b) Non-Executive Directors:
` in crore
Name Sitting Fees Commission
Mr. S. D. Kulkarni - 0.10
Mr. P.G. Kakodkar* 0.009 0.10
Mr. G. D. Kamat* 0.043 0.12
Mr. J.P. Singh 0.014 0.09
Mr. Ashok Kini 0.002 0.01
*Includes sitting fees paid to directors of erstwhile Sesa Industries Limited
v. Shares and convertible instruments held by the Non-Executive Directors
None of the Non-Executive Directors have shareholding in the Company as on 31.3.2011.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
49
5. Shareholders/ Investor Grievance Committee
The Company has constituted a Shareholders/ Investor Grievance Committee of Directors to look into the
redressal of complaints of investor such as transfer or credit of shares, non-receipt of dividend/ notices/ annual
reports, etc.
The composition of the Shareholders/Investor Grievance Committee and details of meetings attended by its
members are given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 4 1
P. K. Mukherjee Managing Director 4 4
Sushil Gupta Director Finance - Designate 4 4
Four meetings of the Committee were held during the year 2010-11 which are as follows: 19th April, 2010,
19th July, 2010, 18th October, 2010 and 22nd January, 2011.
The Committee reviews investor related issues and recommends measures to improve investor services. Minutes
of the Shareholders/Investors Grievance Committee Meetings are circulated to the members of the Board.
Name, designation and address of compliance ofcer:
Mr. C.D. Chitnis, Company Secretary and AVP- Legal
Sesa Ghor, Patto, Phone: + 91 832 2460720
Panaji – Goa Fax : + 91 832 2460721
E-mail: [email protected]
Details of investor complaints received and redressed:
Sr. No. Nature of Complaint Opening Balance Received Disposed of Pending
1. Non-receipt of Securities 0 1 1 0
2. Non-receipt of Dividend 0 2 2 0
Total 0 3 3 0
There were no outstanding complaints as on 31st March, 2011.
Pursuant to Section 205A read with Section 205C of the Companies Act, 1956, the Company is required to
transfer inter alia dividends, remaining unclaimed and unpaid for a period of 7 years from the due date, to the
Investor Education and Protection Fund (IEPF) set up by the Central Government.
Following is the due date for transfer of unclaimed and unpaid dividend to the IEPF by the Company in the
current year:
Financial year Dividend payment date Due Date for Transfer to IEPF*
2003-2004 (?nal) 2nd August, 2004 30th September, 2011
2004-2005 (interim) 10th January, 2005 17th February, 2012
* Indicative date, actual date may vary.
6. Other Committees
i. Share Transfer Committee
The transfers of equity shares of the Company are approved by the Share Transfer Committee, which meets
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
50
fortnightly to approve share transfers. The Committee comprises of the following Executive and
Non-Executive Directors of the Company:
? P. K. Mukherjee - Managing Director
? A. K. Rai - Whole-time Director
? Amit Pradhan - Whole-time Director
? Sushil Gupta - Director Finance (Designate)
As on 31st March, 2011, two instruments of transfer for 9040 equity shares were lying with share transfer
agents and the same will be completed by 30th April, 2011.
ii. Finance Standing Committee (earlier known as Banking and Authorisation Committee)
The Board has constituted the Finance Standing Committee to consider banking, investment and other
related issues on a case to case basis.
The composition, names of members and the attendance of members for the Finance Standing Committee
meetings is given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 2 -
P. K. Mukherjee Managing Director 2 2
Sushil Gupta Director Finance (Designate) 2 2
Lalita Correia Afonso Associate Vice President - Finance 2 2
Two Finance Standing Committee Meetings were held during the ?nancial year 2010-11; on 18th October,
2010 and 22nd January, 2011.
iii. Committee for allotment of equity shares on conversion of Foreign Currency Convertible Bonds (FCCBs)
The Board has constituted an Allotment Committee to consider allotment of equity shares on conversion of
Foreign Currency Convertible Bonds (FCCBs)
The composition, names of the members and the number of meetings held of the Allotment Committee are
given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. K. Mukherjee Managing Director 3 3
A. K. Rai Whole-time Director 3 3
Amit Pradhan Whole-time Director 3 3
Three Allotment Committee Meetings were held during the year 2010-11 on 5th April, 2010, 23rd April, 2010
and 17th May, 2010.
iv. Committee for Cairn Ofer
The Board has constituted a Cairn Ofer Committee to consider investment in Cairn India Limited through
Open Ofer.
The composition, names of the members and the number of meetings held of the Allotment Committee are
given below:
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
51
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. K. Mukherjee Managing Director 1 1
A. K. Rai Whole-time Director 1 1
Amit Pradhan Whole-time Director 1 1
Sushil Gupta Director Finance (Designate) 1 1
One Committee Meeting was held during the year 2010-11 on 25th August, 2010.
v. Committee for Long Term Incentive Plan (LTIP)
The Board has constituted a Committee for LTIP.
The composition, names of the members and the number of meetings held of the LTIP Committee are given
below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
G.D. Kamat Independent Director 1 1
P.K. Mukherjee Managing Director 1 1
A. K. Rai Whole-time Director 1 1
Amit Pradhan Whole-time Director 1 1
One Committee Meeting was held during the year 2010-11 on 17th February, 2011.
7. General Body Meetings
i. General meeting
a. Annual General meeting:
Year Meeting Location Date Time
2007-08 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 23rd July, 2008 11.00 A.M.
2008-09 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 13th August, 2009 11.00 A.M.
2009-10 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 19th July, 2010 11.00 A.M.
b. Extra-ordinary General Meeting:
One Extra-ordinary General Meeting of the members was held during the year 2010-2011 on
18th October, 2010 as under:
Year Meeting Location Date Time
2010-11 EGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 18th October, 2010 10.00 A.M.
(i) Approval under Section 372A and other applicable provisions of the Companies Act, 1956 to increase the investment limits of
the Company to an amount not exceeding ` 16,000 crores (Rupees Sixteen Thousand Crores only).
(ii) Approval in terms of Section 293 (1) (d) of the Companies Act, 1956 to borrow in excess of paid-up capital and free reserves
but not to exceed limit of ` 15,000 crores (Rupees Fifteen Thousand Crores only).
(iii) Approval pursuant to provisions of Sections 198, 269, 309, 310 and other applicable provisions, if any, of the Companies Act,
1956 to re?x the remuneration of Mr. Amit Pradhan, Wholetime Director, with base salary of ` 2,25,000/- per month, efective
from 1st April, 2010 for the unexpired period of his Contract upto 30th April, 2011, in the revised scale of ` 1,50,000/- to
` 5,00,000/- and approval to the re-appointment of Mr. Amit Pradhan as Whole-time Director of the Company efective from
1st May, 2011 upto 31st March, 2013 and to the payment of remuneration with base salary of ` 2,25,000/- per month in the
scale of ` 1,50,000/- to ` 5,00,000/-
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
52
ii. Postal ballot
Four Ordinary resolutions were put through postal ballot during the year ended 31st March, 2011 vide notice
dated 17th February, 2011, the result of which were declared on 14th April, 2011. The particulars of voting
were:
Sr.
No.
Resolution ASSENT DISSENT INVALID
No. of Shares % of total
shares
received
through postal
ballot
No. of Shares % of total
shares received
through postal
ballot
No. of
Shares
% of total
shares
received
through postal
ballot
1. Ordinary Resolution for approval and
adoption of Vedanta Resources Long
term Incentive Plan.
536103404 91.77 44839379 7.68 3231113 0.55
2. Ordinary Resolution under Sections
198, 269, 309, 310 and other applicable
provisions, if any, of the Companies
Act, 1956, for increase in the
remuneration of Mr. P.K. Mukherjee,
Managing Director.
569508374 97.07 10658919 1.82 6526523 1.11
3. Ordinary Resolution under Sections
198, 269, 309, 310 and other
applicable provisions, if any, of the
Companies Act 1956, for increase
in the remuneration of Mr. A.K. Rai,
Wholetime Director.
569479497 97.07 10682397 1.82 6531922 1.11
4. Ordinary Resolution under Sections
198, 269, 309, 310 and other applicable
provisions, if any, of the Companies
Act 1956, for increase in the
remuneration of Mr. Amit Pradhan,
Wholetime Director.
569463957 97.07 10697732 1.82 6532127 1.11
iii. Special Resolutions
Details of special resolutions passed in the General Meetings during the last three ?nancial years are as follows:
Date of General
Meeting
Number of Special
Resolutions passed
Details of the Special Resolutions
17th November,
2008, through
Postal Ballot
2 1.
2.
Approval pursuant to Section 17 of the Companies Act, 1956 for amendment to the
Object Clause of the Memorandum of Association of the Company
Approval pursuant to Section 149(2A) of the Companies Act, 1956 for
commencement of business
9th July, 2009 1 Approval under Section 81(1A) to create, ofer, issue and allot upto 33274000
(Three Crores Thirty Two Lakhs Seventy Four Thousand) Equity Shares of ` 1/-
each (Rupee One) to Promoters and its associates
13th August, 2009 1 Approval for increase in commission to the Non-Wholetime Directors of the
Company resident in India upto Rupees Five million per year.
20th October, 2009 1 Approval for borrowing upto ` 6,000 crores by way of Foreign Currency
Convertible Bonds, Quali?ed Institutional Placements and other securities and
under 293 (1)(a) creating charge on the assets and empowering the Board to take
necessary actions to implement the resolutions.
18th October, 2010 1 Approval under Section 372A and other applicable provisions of the Companies
Act, 1956 to increase the investment limits of the Company to an amount not
exceeding ` 16,000 crores (Rupees Sixteen Thousand Crores only).
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
53
8. Disclosures
i. Subsidiary Companies
The revised Clause 49 de?nes a “material non-listed Indian subsidiary” as an unlisted subsidiary,
incorporated in India, whose turnover or net worth (i.e. paid-up capital and free reserves) exceeds 20% of
the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the
immediately preceding accounting year. As per this de?nition none of the subsidiaries of Sesa Goa Limited
viz. Sesa Resources Limited and Sesa Mining Corporation Limited are material non-listed Indian subsidiaries.
The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme
of Amalgamation of Sesa Industries Limited (SIL) (an erstwhile subsidiary of Sesa Goa Limited) with the
Company efective from the appointed date i.e. 1st April 2005, by setting aside the Order dated 21st
February, 2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the
Scheme passed by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated
18th December, 2008.
ii. Materially Signi?cant Related Party Transactions
The Board has received disclosures from Key Managerial Personnel relating to material ?nancial and
commercial transactions where they and or their relatives have personal interest.
Transactions with related parties are disclosed in Note No. 26 of Schedule 19 to the Accounts in the Annual
Report. In the opinion of the Board, the transactions during 2010-11 between Sesa Goa Limited and its
subsidiaries, Sesa Resources Limited and Sesa Mining Corporation Limited have been done at arm’s length.
As per the de?nition under clasue 49 of “material non-listed Indian subsidiary” none of the subsidiaries of
Sesa Goa Limited viz. Sesa Resources Limited and Sesa Mining Corporation Limited are material non-listed
Indian subsidiaries.
iii. Non-compliance
The Company has complied with all the requirements of regulatory authorities. No penalties or strictures
were imposed on it by the stock exchanges or SEBI or any statutory authority on any matter related to
capital market during the last three years.
The Company is subjected to investigation by Serious Fraud Investigation Ofce (SFIO), Ministry of
Corporate Afairs, New Delhi and the investigation is in progress. The Company is providing all information
to SFIO and extended co-operation. The Company understands from the order that this investigation has
been initiated pursuant to a report of the Registrar of Companies that recommended such an investigation
and the order directs inquiry into allegations made in certain complaints. The investigation originates from
the complaint ?led by one of the shareholders of erstwhile Sesa Industries Limited (SIL) against SIL, the
Company and their directors in 2003 prior to the acquisition of the Company by Vedanta in April 2007.
iv. CEO/ CFO certi?cation
The CEO and CFO certi?cation of the ?nancial statements for the year is enclosed after Annexure-A of the
Directors’ Report.
v. Whistle Blower Policy
The Company has a Whistle Blower Policy to deal with any complaint relating to fraud and other ?nancial
irregularities.
vi. Adoption of Non-Mandatory Requirements
The Company has ful?lled the following non-mandatory requirements as prescribed in Annexure 1D to
Clause 49 of the Listing Agreement with the stock exchanges.
? The Company has set up a Remuneration Committee which complies with the requirements laid down
in the Code of Corporate Governance. Refer Para 4.i. for the broad terms of reference of the Committee.
? The quarterly and half-yearly results of the Company are posted on the Company?s website.
? The Company has adopted and implemented Whistle Blower Policy.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
54
9. Means of Communication
All ?nancial disclosures are available on the Company’s website www.sesagoa.com. The Company has had
informal meetings with media and institutional investors. Authorised persons of Sesa Goa also respond to
queries telephonically and by letters.
The quarterly, half-yearly and annual results are published in the Economic Times, Mumbai edition and an
English and Konkani/Marathi Daily in Goa. The results, along with ofcial news releases, are also posted on the
Company’s website.
A Management Discussion and Analysis statement is a part of the Company’s Annual Report.
10. General Shareholder Information
i. Annual General Meeting
Date: Thursday, 21st July, 2011
Time: 10.00 a.m.
Venue: Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa
ii. Financial Calendar
Financial year: 1st April to 31st March
For the year ended 31st March 2010 2011 (Tentative)
Financial results for Q.E. June 19th July, 2010 End July 2011
Financial results for Q.E. Sept. 18th October, 2010 End October 2011
Financial results for Q.E. Dec. 24th January, 2011 End January 2012
Financial results for Q.E. March 25th April, 2011 End April 2012
Annual General Meeting 21st July, 2011 July 2012
iii. Book Closure
The dates of book closure are from Tuesday, 5th July, 2011 to Thursday, 7th July, 2011 (both days inclusive).
iv. Dividend Payment
A dividend of ` 3.50 per equity share will be credited / dispatched between 21st July, 2011 and 19th August,
2011 subject to approval by the shareholders at the Annual General Meeting to be held on 21st July, 2011.
v. Listing
At present, the equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and the
National Stock Exchange of India (NSE). The annual listing fees for the ?nancial year 2010-11 to BSE and NSE
has been paid.
The Company’s 5,000 Foreign Currency Convertible Bonds (FCCBs) issued on 30th October, 2009 are listed
and traded on the Singapore Exchange Securities Trading Limited (SGX-ST) of which 2,168 bonds were
outstanding as on 31st March, 2011
vi. Stock Codes
Sesa Goa’s Stock Exchange Codes
Name of the Stock Exchange Stock Code
The National Stock Exchange of India SESAGOA EQ
The National Stock Exchange of India, DEMAT SESAGOA AE
The Stock Exchange, Mumbai 295
The Stock Exchange, Mumbai, DEMAT 500295
Singapore Exchange Securities Trading Limited 141031
The ISIN code of the Company is INE205A01025.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
55
vii. Market Price Data
High, Low (based on the closing prices) and the number of shares traded during each month during the
year 2010-11 on the National Stock Exchange Limited and the Bombay Stock Exchange Limited
NSE BSE
High (`) Low (`) No. of shares
traded
(in crore)
Monthly
Turnover
(` in crore)
High (`) Low (`) No. of shares
traded
(in crore)
Monthly
Turnover
(` in crore)
April 495.00 418.10 9.82 4486.10 494.30 419.85 2.40 1098.34
May 426.90 303.90 20.79 7596.10 427.20 304.25 6.48 2375.74
June 389.70 335.30 17.55 6395.28 389.05 333.25 5.67 2061.43
July 376.00 337.20 11.08 3954.13 376.00 337.00 3.55 1266.09
August 384.00 311.50 10.59 3589.49 383.65 312.00 2.97 1010.95
September 343.40 308.20 8.10 2644.21 343.25 309.00 2.03 661.92
October 383.65 317.20 10.15 3568.96 383.50 317.60 2.30 809.61
November 348.70 285.00 5.46 1800.91 347.85 287.00 1.24 408.82
December 330.70 287.00 7.30 2232.77 330.30 287.10 2.03 620.12
January 346.50 308.55 6.24 2066.91 346.00 308.90 1.55 513.61
February 333.40 258.00 5.00 1496.81 333.30 260.00 1.23 369.86
March 294.90 254.75 6.63 1807.91 294.80 220.55 1.61 438.36
viii. Performance of the share price of the Company
Chart A: Company’s Share Performance versus BSE Sensex
0
20
40
60
80
100
120
140
Mar
2011
Feb
2011
Jan
2011
Dec
2010
Nov
2010
Oct
2010
Sep
2010
Aug
2010
Jul
2010
Jun
2010
May
2010
Apr
2010
Sesa BSE
Sensex
Note: Both the BSE Sensex and Sesa Goa are indexed to 100 as on 1st April, 2010
Chart B: Company’s Share Performance versus NSE Nifty
0
20
40
60
80
100
120
140
Mar
2011
Feb
2011
Jan
2011
Dec
2010
Nov
2010
Oct
2010
Sep
2010
Aug
2010
Jul
2010
Jun
2010
May
2010
Apr
2010
Sesa NSE
Nifty
Note: Both the NSE Nifty and Sesa Goa are indexed to 100 as on 1st April, 2010
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
56
ix. Registrar and Transfer Agent
Karvy Computershare Private Limited
Plot No. 17 to 24, Vittalrao Nagar,
Madhapur,
Hyderabad – 500 081
Tel. : 040 – 23420818
Fax : 040 – 23420833
Email: [email protected]/[email protected]
x. Share Transfer System
The Registrar and Share Transfer Agents, Karvy Computershare Pvt. Ltd., Hyderabad, are authorised by the
Board for processing of share transfers which are approved by the Company’s Share Transfer Committee.
Share Transfer Committee Meetings are held fortnightly. Share transfer requests are processed and
despatched to the shareholders generally within 20 days from the date of receipt. All valid requests for
dematerialisation of shares are processed and con?rmation given to the depositories within 21 days.
Pursuant to Clause 47(c) of the Listing Agreement with the Stock Exchanges, on half-yearly basis, certi?cates
have been issued by a Company Secretary-in-Practice for due compliance of share transfer formalities by
the Company. Also, pursuant to Regulation 55A of SEBI (Depositories and Participants) Regulations, 1996,
certi?cation is done by a Company Secretary-in-Practice regarding timely dematerialisation of the shares of
the Company. Further, secretarial audit is done on a quarterly basis for reconciliation of the share capital of
the Company
xi. Distribution of shareholding
The distribution of the shareholding of the equity shares of the company by size and by ownership class as
on 31st March, 2011 is given below:
Shareholding pattern by size
31st March, 2011
Face value ` 1/-
Shareholding of Nominal value of ` 1/- No. of share-holders % of Total share-holders Amount in ` crore % of Amount
1 - 5000 263430 98.36 6.52 7.50
5001 - 10000 2686 1.00 2.01 2.31
10001 - 20000 949 0.35 1.35 1.56
20001 - 30000 218 0.08 0.54 0.62
30001 - 40000 144 0.05 0.50 0.58
40001 - 50000 55 0.02 0.25 0.29
50001 - 100000 111 0.04 0.81 0.93
100001 & Above 225 0.08 74.93 86.22
TOTAL 267818 100.00 86.91 100.00
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
57
Shareholding Pattern by ownership
Sr. No. Category March 31, 2011
No. of shares held % of share holding
Face value ` 1/-
a) Promoter’s holding 479113619 55.13
b) Banks, Mutual funds, Financial Institutions, Insurance Companies
(Central/State Govt. Institutions/ Non-Govt. Institutions)
41356815 4.76
c) FIIs 207928162 23.92
d) Private Corporate Bodies 27747036 3.19
e) Indian Public 107107624 12.32
f) NRIs /OCBs 2142031 0.25
g) Trust 763208 0.09
h) H U F 1525856 0.18
i) Clearing Members 1417072 0.16
Grand Total 869101423 100.00
Paid-up capital as on 31st March, 2010 was ` 830,961,802/- and on 31st March, 2011 was ` 869,101,423/-.
xii. De-materialisation of shares
Trading in equity shares of the Company is permitted only in dematerialised form w.e.f. 31st May, 1999 as
per noti?cation issued by the Securities and Exchange Board of India (SEBI). Some 92.85 % of the equity
shares of the Company (except the promoters’ holding) have been dematerialised as on 31st March, 2011.
xiii. Outstanding GDRs/ ADRs/ Warrants/ Options
The Company has issued 5,000 Foreign Currency Convertible Bonds (FCCBs) aggregating to USD 500
million. The FCCBs are convertible by Bondholders into Shares, at any time on and after 9th December,
2009, up to the close of business on 24th October, 2014 or, if the Bonds shall have been called for
redemption before the relevant Maturity Date, then up to the close of business on a date not later than
seven business days prior to the date ?xed for redemption thereof.
The Company had received notice for conversion of 755 bonds into 10,447,402 equity shares upto
31st March, 2010 and for conversion of 2077 bonds into 28,740,757 equity shares upto 31st March, 2011.
Accordingly 28,740,757 equity shares have been allotted during ?nancial year 2010-2011.
As on 31st March, 2011 there are 2168 Foreign Currency Convertible Bonds (FCCB) outstanding, which are
convertible to 30,000,033 Equity Shares.
xiv. Details of Public Funding Obtained in the last three years
On 22nd July, 2009, the Company allotted 33,274,000 Equity Shares of `1/- each to promoter’s entity Twin
Star Holdings Limited at a premium of ` 160.46 per share aggregating to ` 5,372,420,040/-.
On 30th October, 2009 the Company had issued 5,000 Foreign Currency Convertible Bonds (FCCBs)
aggregating to USD 500 million), which are listed and traded on Singapore Exchange Securities Trading
Limited (the “SGX-ST”) of which 755 bonds were converted into 10447402 equity shares of ` 1/- each at a
premium of ` 345.88 per share in ?nancial year 2009-10 and 2077 bonds were converted into 28,740,757
equity shares of ` 1/- each at a premium of ` 345.88 per share in ?nancial year 2010-11.
The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme
of Amalgamation of Sesa Industries Limited (SIL) (an erstwhile subsidiary of Sesa Goa Limited) with the
Company efective from the appointed date i.e. 1st April, 2005, by setting aside the Order dated
21st February, 2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
58
Scheme passed by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated
18th December, 2008. In accordance with the Scheme of Amalgamation approved by the Court, the Board
of Directors of the Company, at its meeting held on 12th March, 2011 allotted 9,398,864 equity shares of face
value of ` 1/- each bearing distinctive numbers 859,702,560 to 869,101,423 to the shareholders of erstwhile
SIL, holding shares as on record date, i.e. 28th February, 2011, in the ratio of 20 fully paid equity shares of ` 1
each (after adjustment for stock split and bonus shares) in the Company for 5 fully paid equity shares of ` 10
each held by the shareholders of SIL. As a result of allotment, the paid up share capital of the Company has
gone up from ` 859,702,559 to ` 869,101,423.
Financial Year Amt. raised through Public Funding Efect on paid up Equity Share Capital
2008-09 Nil Nil
2009-10 Issue of 33,274,000 Equity Shares of ` 1/- each
to promoter’s entity Twin Star Holdings Limited
at a premium of `160.46 per share aggregating
to ` 5,372,420,040/-
The number of paid up equity shares of the Company
increased from 787,240,400 shares of ` 1/- each to
820,514,400 shares of ` 1/- each.
2009-10 Issue of 5,000 Foreign Currency Convertible
Bonds (FCCBs) aggregating to USD 500 million
and consequent conversion of 755 bonds into
equity shares
The number of paid up equity shares of the Company
increased from 820,514,400 shares of ` 1/- each
to 830,961,802 shares of ` 1/- each consequent to
conversion of 755 FCCB’s
2010-11 Further conversion into equity shares of 2,077
FCCB’s issued in 2009-10
Nil
On account of further conversions of 2,077 FCCB’s
issued in 2009-10, the number of paid up equity shares
of the Company increased from 830,961,802 shares of
` 1/- each to 859,702,559 shares of ` 1/- each
On allotment of equity shares on 12th March, 2011 to
shareholders of erstwhile Sesa Industries Limited on
amalgamation, the number of paid up equity shares
of the Company increased from 85,97,02,559 shares of
`1/- each to 869,101,423 shares of `1/- each.
xv. Company’s Registered Ofce Address
Sesa Goa Limited,
Sesa Ghor,
20 EDC Complex, Patto,
Panaji, Goa 403 001,
India
Plant Locations
? Mining establishments at Goa, Karnataka and Orissa
? Pig iron Division at Navelim/Amona Goa
? Metallurgical Coke (MetCoke) Division at Amona, Goa
xvi. Address for correspondence on share issues
Karvy Computershare Private Limited The Secretarial Department
Plot No. 17 to 24, Vittalrao Nagar, Sesa Ghor, 20 EDC Complex, Patto,
Madhapur, Hyderabad – 500 081 Panaji, Goa 403 001, India
Tel.: 040 – 23420818 or Tel.: 0832-2460601
Fax: 040 – 23420833 Fax: 0832-2460721
E-mail: [email protected]/
[email protected]
E-mail: [email protected]/
[email protected]
Website: www.sesagoa.com
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
59
Annual Declaration by the Managing Director Pursuant to Clause 49(I)(D)(ii) of the Listing Agreement
As the Managing Director of Sesa Goa Limited and as required by Clause 49(I)(D)(ii) of the Listing Agreement with the
Stock Exchanges, I hereby declare that all the Board members and senior management personnel of the Company
have afrmed compliance with the Company’s Code of Conduct for the Financial Year 2010-11 .
For Sesa Goa Limited
Sd/-
Place: Panaji-Goa P. K. Mukherjee
Date: 25th April, 2011 Managing Director
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
60
To,
The Members of Sesa Goa Limited
We have examined the compliance of conditions of Corporate Governance by SESA GOA LIMITED (“the
Company”), for the year ended on 31st March, 2011, as stipulated in Clause 49 of the Listing Agreement of the said
Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our
examination has been limited to a review of the procedures and implementation thereof adopted by the
Company for ensuring compliance with the conditions of Corporate Governance as stipulated in the said Clause.
It is neither an audit nor an expression of opinion on the ?nancial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the
representations made by the Directors and the management, we certify that the Company has complied in all
material respects with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned
Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the
efciency or efectiveness with which the management has conducted the state of afairs of the Company.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Auditors’ Certi?cate on Compliance of Conditions of
Corporate Governance
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
61
Auditors’ Report
To the Members of Sesa Goa Limited
1. We have audited the attached Balance Sheet of SESA GOA LIMITED (“the Company”) as at 31st March, 2011, the
Pro?t and Loss Account and the Cash Flow Statement of the Company for year ended on that date, both annexed
thereto. These ?nancial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these ?nancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the ?nancial statements. An audit also includes assessing the accounting
principles used and signi?cant estimates made by the Management, as well as evaluating the overall ?nancial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters speci?ed
in paragraphs 4 and 5 of the same order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
(a) we have obtained all the information and explanations which, to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;
(c) the Balance Sheet, the Pro?t and Loss Account and the Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Pro?t and Loss Account and the Cash Flow Statement dealt with
by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to the explanations given to us, the said
?nancial statements give the information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of afairs of the Company as at 31st March, 2011;
(ii) in the case of the Pro?t and Loss Account, of the pro?t of the Company for the year ended on
31st March, 2011; and
(iii) in the case of the Cash Flow Statement of the cash ?ows for the year ended on 31st March, 2011.
5. On the basis of written representations received from the directors as on 31st March, 2011, and taken on record
by the Board of Directors, we report that none of the Directors is disquali?ed as on 31st March, 2011 from being
appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
62
(i) In respect of the Company’s ?xed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of the ?xed assets.
(b) The ?xed assets were physically veri?ed during the year by the Management in accordance with a regular
programme of veri?cation which, in our opinion, provides for physical veri?cation of all the ?xed assets at
reasonable intervals. According to the information and explanations given to us, no material discrepancies
were noticed on such veri?cation.
(c) The ?xed assets disposed of during the year, in our opinion, do not constitute a substantial part of the ?xed
assets of the Company and such disposal has, in our opinion, not afected the going concern status of the
Company.
(ii) In respect of the Company’s inventories:
(a) As explained to us, the inventories were physically veri?ed during the year by the Management at
reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical
veri?cation of inventories followed by the Management were reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained
proper records of its inventories and no material discrepancies were noticed on physical veri?cation.
(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, ?rms or other
parties listed in the Register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us, having regard to the explanations
that some of the items purchased are of special nature and suitable alternative sources are not readily available
for obtaining comparable quotations, there is an adequate internal control system commensurate with the size
of the Company and the nature of its business with regard to purchases of inventory and ?xed assets and the
sale of goods and services. During the course of our audit, we have not observed any major weakness in such
internal control system.
(v) According to the information and explanations given to us, the Company has not entered into any contract or
arrangement with other parties, which needs to be entered in the Register maintained under Section 301 of the
Companies Act, 1956.
(vi) According to the information and explanations given to us, the Company has not accepted any deposits from
the public during the year. In respect of unclaimed deposits, the Company has complied with the provisions
of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956. According to the
information and explanations given to us, no order has been passed in this respect, in the case of the Company
by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the internal audit functions carried out during the year by a ?rm of Chartered Accountants
appointed by the management have been commensurate with the size of the Company and the nature of its
business.
(viii) In our opinion and according to the information and explanations given to us, the Central Government has not
prescribed maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of the
Company’s products.
(ix) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor
Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate
authorities.
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
63
(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues in arrears as at 31st March, 2011 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess which
have not been deposited as on 31st March, 2011 on account of disputes are given below:
Statute Nature of dues Amount
(` in crores)
Period to which the
amount relates
Forum where the dispute is pending
Income Tax Act,
1961
Income Tax 14.89 Assessment Years 2004-05,
2006-07 and 2007-08
Commissioner of Income Tax
(Appeals), Panaji
Sales Tax Act Sales Tax 0.63 1997-98 to 2000-01 Additional Commissioner of Sales Tax
Customs Act, 1962 Customs Duty 1.40 Assessment Year 2006-07 Customs Excise and Service Tax
Appellate Tribunal, Mumbai
(x) The Company does not have any accumulated losses. The Company has not incurred cash losses during the
current ?nancial year and in the immediately preceding ?nancial year.
(xi) According to the information and explanations given to us, the Company has not taken any term loan from a
bank or ?nancial institution or borrowed any sum against issue of debentures.
(xii) According to the information and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi or a mutual bene?t society.
(xiv) According to the information and explanations given to us, the Company is not a dealer or trader in shares,
securities or debentures and other investments.
(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans
taken by others from banks or ?nancial institutions.
(xvi) According to the information and explanations given to us, the Company has not availed any term loans during
the year.
(xvii) In our opinion and according to the information and explanations given to us and on an overall examination of
the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for
long- term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by public issues during the year.
(xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
64
Particulars Sch. As at 31st March, 2011 As at 31st March, 2010
No. ` in crore ` in crore ` in crore ` in crore
SOURCES OF FUNDS
Shareholders' funds
Share capital 1 86.91 83.10
Reserves and surplus 2 11,501.90 7,125.61
11,588.81 7,208.71
Loan funds
Secured loans 3 3.31 9.61
Unsecured loans 4 968.01 1,916.19
971.32 1,925.80
Deferred tax liability 5 63.10 59.20
Total 12,623.23 9,193.71
APPLICATION OF FUNDS
Fixed assets 6
Gross block 1,214.55 836.80
Less : Depreciation 454.68 324.65
Net Block 759.87 512.15
Capital work-in-progress 654.15 68.01
1,414.02 580.16
Investments 7 9,463.81 5,478.64
Current assets, loans and advances
Inventories 8 641.49 408.66
Sundry debtors 9 506.88 278.46
Cash and bank balances 10 891.32 2,377.41
Other current assets 14.12 39.27
Loans and advances 11 1,271.51 1,111.19
3,325.32 4,214.99
Less : Current liabilities and provisions
Current liabilities 12 1,172.61 705.05
Provisions 13 407.31 375.03
1,579.92 1,080.08
Net current assets 1,745.40 3,134.91
Total 12,623.23 9,193.71
Notes to accounts 19
Per our report of even date attached
Balance Sheet
As at 31st March, 2011
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
65
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Particulars Sch.
No.
Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
INCOME
Sales of ore 7,372.74 4,909.14
Less: Ocean freight 736.31 670.86
6,636.43 4,238.28
Sales of metallurgical coke 142.10 356.54
Less: Excise duty 0.69 -
141.41 356.54
Less: Ocean freight 0.01 0.04
141.40 356.50
Sales of pig iron 728.87 -
Less: Excise duty 62.96 -
665.91 -
Less: Ocean freight 2.17 -
663.74 -
Hire of ship and transhipper 5.88 7.55
Services and other proceeds 14 63.01 58.00
Miscellaneous income 15 497.82 409.45
8,008.28 5,069.78
EXPENDITURE
Production and operational expenses 16 3,349.55 2,226.75
Administration expenses 17 101.37 73.87
Interest and other ?nance charges 18 88.43 53.69
Depreciation 83.13 57.38
3,622.48 2,411.69
Pro?t before tax 4,385.80 2,658.09
Less: Provision for taxation
Current tax 963.00 538.00
Deferred tax (10.00) 2.00
953.00 540.00
Pro?t after taxes 3,432.80 2,118.09
Balance brought forward 297.70 95.57
Add: Transferred on amalgamation of Sesa Industries Limited
(Refer Note No. 2 of Schedule 19)
283.48 -
4,013.98 2,213.66
APPROPRIATIONS
Proposed dividend 304.18 270.06
Dividend tax 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency
Convertible Bonds converted during the year (inclusive of
dividend tax of `0.51 crore)
9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited
on amalgamation (inclusive of dividend tax of `1.83 crore)
12.88 -
General reserve 2,500.00 1,600.00
2,876.26 1,915.96
Surplus carried to reserves and surplus 1,137.72 297.70
Earnings per share - Basic (Refer Note No. 25 of Schedule 19) 39.98 26.11
- Diluted (Refer Note No. 25 of Schedule 19) 39.30 25.31
Nominal value per share 1.00 1.00
Notes to accounts 19
Per our report of even date attached
Pro?t and Loss Account
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
66
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net pro?t before tax 4,385.80 2,658.09
Adjustments for:
Depreciation 83.13 57.38
Interest / dividend (net) (396.00) (158.31)
(Pro?t) / loss on sale of ?xed assets (net) (0.65) (0.12)
(Pro?t) / loss on redemption of current investments (net) (61.86) (75.21)
Provision for doubtful debts 0.07 -
Provision for doubtful advances 0.12 0.50
Provision for claim under litigation - 9.03
Unrealised exchange (gain) / loss 44.01 (125.24)
Operating pro?t before working capital changes 4,054.62 2,366.12
Adjustments for:
Trade and other receivables (281.69) (35.51)
Inventories (194.30) (176.96)
Trade payables 355.51 361.72
Cash generated from operations 3,934.14 2,515.37
Taxes paid (980.49) (511.89)
NET CASH FROM OPERATING ACTIVITIES 2,953.65 2,003.48
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of ?xed assets (837.29) (131.59)
Proceeds from sale of ?xed assets 4.30 0.36
Acquisition of subsidiaries - (1,713.24)
(Purchase) / redemption of current investments (3,673.47) (670.51)
Bank deposits having original maturity over three months 1,652.00 (2,350.00)
Interest received 198.16 103.11
Dividend received 259.92 66.70
NET CASH USED IN INVESTING ACTIVITIES (2,396.38) (4,695.17)
Cash Flow Statement
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
67
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
C. CASH FLOW FROM FINANCING ACTIVITIES :
Issue of equity shares - 537.24
Issue of Foreign Currency Convertible Bonds - 2,380.58
Inter Corporate Deposits (26.71) -
Interest paid (57.06) (5.24)
Dividend paid and dividend tax (328.14) (206.44)
NET CASH (USED IN) / FROM FINANCING ACTIVITIES (411.91) 2,706.14
NET INCREASE IN CASH AND CASH EQUIVALENTS 145.36 14.45
Cash and cash equivalents - opening balance 23.09 8.64
Add: Additions on amalgamation 9.88 -
Cash and cash equivalents - closing balance 178.33 23.09
Footnotes:
1. Cash and bank balances as per Schedule 10 891.32 2,377.41
Less: Bank deposits having original maturity over three months (698.00) (2,350.00)
Less: Unpaid dividend account (14.99) (4.32)
Cash and cash equivalents as per the cash ?ow statement 178.33 23.09
2. Equity shares issued consequent to amalgamation with Sesa Industries Limited have not been considered in the cash ?ow
statement, being a non cash transaction (Refer Note No. 2 of Schedule 19).
3. Foreign Currency Convertible Bonds converted into equity shares have not been considered in the cash ?ow statement, being
a non cash transaction (Refer Note No. 6 of Schedule 19).
4. Figures in brackets represent out?ows.
5. For notes to accounts refer Schedule 19.
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
68
Schedule 1 : Share Capital
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Authorised
1,000,000,000 (Previous year 1,000,000,000) equity shares of `1 each 100.00 100.00
Issued and Subscribed
869,101,423 (Previous year 830,961,802) equity shares of `1 each fully
paid-up
86.91 83.10
Total 86.91 83.10
Out of the above shares:
? 40í,496,480 (Previous year 40í,496,480) shares held by Finsider International Co. Ltd. U.K., the holding Company, a subsidiary of
Vedanta Resources Plc. the ultimate holding company.
? 44,S4S,íS9 (Previous year S9,098,íS9) shares held by West Globe Limited Mauritius, a subsidiary of Vedanta Resources Plc.
? í9,250,000 (Previous year í9,250,000) shares allotted as fully paid-up shares pursuant to a contract without payment being
received in cash, consequent to amalgamation of erstwhile Mingoa Private Limited with the Company, with efect from 1-4-1979.
? 685,í89,S00 (Previous year 685,í89,S00) bonus shares allotted as fully paid-up shares pursuant to capitalisation of reserves and
share pemium account.
? SS,274,000 (Previous year SS,274,000) shares allotted as fully paid-up shares on a preferential basis to Twinstar Holdings Limited, a
subsidiary of Vedanta Resources Plc.
? S9,í88,í59 (Previous year í0,447,402) shares allotted as fully paid-up shares on conversion of 2,8S2 (Previous year 755) Foreign
Currency Convertible Bonds.
? 9,S98,864 shares allotted during the year as fully paid-up shares to shareholders of the erstwhile Sesa Industries Limited for
consideration other than cash, pursuant to the Scheme of amalgamation. (Refer Note No. 2 of Schedule 19)
Schedule 2 : Reserves and Surplus
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Share premium account
As per last balance sheet 875.34 -
Add: Amount received on preferential allotment of equity shares - 533.91
Add: Amount received upon conversion of Foreign Currency
Convertible Bonds into equity shares
994.08 361.36
Less: Expenses on issue of Foreign Currency Convertible Bonds - 19.93
1,869.42 875.34
Capital reserve
As per last balance sheet 0.25 0.25
Amalgamation reserve
As per last balance sheet - -
Add: Arising during the year on amalgamation with Sesa
Industries Limited (Refer Note No. 2 of Schedule 19)
2.14 -
2.14 -
General reserve
As per last balance sheet 5,952.32 4,352.32
Add: Transferred on amalgamation 40.05 -
Add: Transferred from pro?t and loss account 2,500.00 1,600.00
8,492.37 5,952.32
Hedging reserve
As per last balance sheet - (9.08)
Add: Amount adjusted on settlement of hedge contracts - 13.76
Less: Deferred tax impact on contracts - (4.68)
- -
Pro?t and Loss Account
As per annexed account 1,137.72 297.70
Total 11,501.90 7,125.61
Schedules Annexed to and Forming Part of the Balance Sheet
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
69
Schedule 3 : Secured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
From banks
Cash credit 3.31 9.61
(Secured against hypothecation of ore stocks, consumables stores,
book debts and lodgement of letter of credit)
Total 3.31 9.61
Schedule 4 : Unsecured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Foreign Currency Convertible Bonds 968.01 1,916.19
(Refer Note No. 6 of Schedule 19)
Total 968.01 1,916.19
Schedule 5 : Deferred Tax Liability
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Deferred tax liabilities
on temporary timing diferences
- in respect of depreciation allowance 72.92 63.78
Deferred tax assets
- in respect of compensated absence 4.47 4.11
- others 5.35 0.47
9.82 4.58
Net deferred tax liability 63.10 59.20
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
70
S
c
h
e
d
u
l
e
6
:
F
i
x
e
d
A
s
s
e
t
s
P
a
r
t
i
c
u
l
a
r
s
O
r
i
g
i
n
a
l
C
o
s
t
D
e
p
r
e
c
i
a
t
i
o
n
/
A
m
o
r
t
i
s
a
t
i
o
n
N
e
t
V
a
l
u
e
O
p
e
n
i
n
g
a
s
a
t
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
A
d
d
i
t
i
o
n
s
D
e
d
u
c
t
i
o
n
s
C
l
o
s
i
n
g
a
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
F
o
r
t
h
e
Y
e
a
r
O
n
D
e
d
u
c
t
i
o
n
s
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
0
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
T
a
n
g
i
b
l
e
A
s
s
e
t
s
M
i
n
i
n
g
l
e
a
s
e
s
2
8
.
7
0
-
-
-
2
8
.
7
0
1
6
.
5
9
-
4
.
6
0
-
2
1
.
1
9
7
.
5
1
1
2
.
1
1
M
i
n
i
n
g
c
o
n
c
e
s
s
i
o
n
s
0
.
6
8
-
-
-
0
.
6
8
0
.
6
5
-
-
-
0
.
6
5
0
.
0
3
0
.
0
3
L
a
n
d
p
l
o
t
s
(
N
o
t
e
N
o
.
1
)
1
4
.
7
3
0
.
0
5
1
2
1
.
1
7
-
1
3
5
.
9
5
0
.
0
5
-
-
-
0
.
0
5
1
3
5
.
9
0
1
4
.
6
8
R
o
a
d
a
n
d
b
u
n
d
e
r
s
0
.
6
5
3
.
8
2
0
.
3
7
-
4
.
8
4
0
.
2
5
0
.
3
8
0
.
0
8
-
0
.
7
1
4
.
1
3
0
.
4
0
B
u
i
l
d
i
n
g
s
5
2
.
0
6
5
.
6
0
6
.
1
2
-
6
3
.
7
8
1
1
.
7
4
0
.
9
6
1
.
5
8
-
1
4
.
2
8
4
9
.
5
0
4
0
.
3
2
P
l
a
n
t
a
n
d
m
a
c
h
i
n
e
r
y
5
6
6
.
5
9
1
3
7
.
7
4
8
7
.
8
2
2
1
.
9
4
7
7
0
.
2
1
2
1
9
.
5
0
6
4
.
5
5
6
5
.
5
7
1
8
.
4
3
3
3
1
.
1
9
4
3
9
.
0
2
3
4
7
.
0
9
A
i
r
c
r
a
f
t
(
N
o
t
e
N
o
.
2
)
1
.
4
6
-
-
-
1
.
4
6
0
.
3
8
-
0
.
0
8
-
0
.
4
6
1
.
0
0
1
.
0
8
V
e
h
i
c
l
e
s
1
1
.
6
4
2
.
2
3
2
.
6
8
1
.
9
5
1
4
.
6
0
6
.
1
8
1
.
1
4
2
.
1
4
1
.
8
1
7
.
6
5
6
.
9
5
5
.
4
6
R
i
v
e
r
?
e
e
t
5
3
.
4
6
-
1
3
.
1
0
-
6
6
.
5
6
1
2
.
9
7
-
1
.
8
5
-
1
4
.
8
2
5
1
.
7
4
4
0
.
4
9
S
h
i
p
9
6
.
9
3
-
0
.
6
8
0
.
0
1
9
7
.
6
0
5
2
.
8
2
-
4
.
9
0
0
.
0
1
5
7
.
7
1
3
9
.
8
9
4
4
.
1
1
F
u
r
n
i
t
u
r
e
a
n
d
?
t
t
i
n
g
s
9
.
9
0
0
.
7
1
3
.
3
1
0
.
1
1
1
3
.
8
1
3
.
5
2
0
.
2
3
0
.
9
7
0
.
1
1
4
.
6
1
9
.
2
0
6
.
3
8
I
n
t
a
n
g
i
b
l
e
A
s
s
e
t
s
C
o
m
p
u
t
e
r
s
o
f
t
w
a
r
e
-
-
1
6
.
3
6
-
1
6
.
3
6
-
-
1
.
3
6
-
1
.
3
6
1
5
.
0
0
-
T
o
t
a
l
8
3
6
.
8
0
1
5
0
.
1
5
2
5
1
.
6
1
2
4
.
0
1
1
,
2
1
4
.
5
5
3
2
4
.
6
5
6
7
.
2
6
8
3
.
1
3
2
0
.
3
6
4
5
4
.
6
8
7
5
9
.
8
7
5
1
2
.
1
5
P
r
e
v
i
o
u
s
y
e
a
r
7
3
9
.
2
7
-
1
1
1
.
7
7
1
4
.
2
4
8
3
6
.
8
0
2
8
1
.
2
7
-
5
7
.
3
8
1
4
.
0
0
3
2
4
.
6
5
5
1
2
.
1
5
C
a
p
i
t
a
l
W
o
r
k
-
i
n
-
P
r
o
g
r
e
s
s
C
o
n
s
t
r
u
c
t
i
o
n
s
i
n
p
r
o
g
r
e
s
s
(
N
o
t
e
N
o
.
3
)
5
0
4
.
5
4
3
7
.
5
4
C
a
p
i
t
a
l
a
d
v
a
n
c
e
s
1
4
9
.
6
1
3
0
.
4
7
T
o
t
a
l
6
5
4
.
1
5
6
8
.
0
1
N
o
t
e
s
:
1
.
L
a
n
d
p
l
o
t
s
i
n
c
l
u
d
e
u
n
d
e
r
P
e
r
p
e
t
u
a
l
L
e
a
s
e
`
1
.
9
9
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
1
.
9
9
c
r
o
r
e
)
.
2
.
R
e
p
r
e
s
e
n
t
s
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
P
6
8
C
A
i
r
c
r
a
f
t
.
3
.
A
m
o
u
n
t
i
n
c
l
u
d
e
s
`
4
.
5
5
c
r
o
r
e
i
n
t
e
r
e
s
t
c
a
p
i
t
a
l
i
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
(
P
r
e
v
i
o
u
s
y
e
a
r
`
0
.
1
7
c
r
o
r
e
)
.
S
c
h
e
d
u
l
e
s
A
n
n
e
x
e
d
t
o
a
n
d
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
B
a
l
a
n
c
e
S
h
e
e
t
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
71
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Current Investments (at lower of cost and market value)
Non-trade, unquoted:
In Mutual Funds (Refer Note No. 13 of Schedule 19)
Birla Short Term FMP Series 4 - Dividend Payout 125.00 -
Birla Short Term Opportunity Fund - Dividend Payout 509.90 -
Birla Sunlife Cash Plus Plan 27.99 -
Birla Sunlife Ultra Short Term Fund - Institutional - Growth 340.09 -
Birla Sun Life Fixed Term Plan - Series CD (370 Days) - Growth Option 50.00 50.00
Birla Floating Rate Fund - Long Term - Institutional - Growth - 100.00
Birla Interval Income Fund Institutional (QIP) Series I - Dividend Payout - 30.00
Birla Interval Income Fund Institutional (QIP) Series II - Dividend Payout - 200.00
Birla Sun Life Saving Fund - Institutional Growth - 5.68
Canara Robeco Floating Rate Short Term - Growth 50.02 -
Canara Robeco Treasury Advantage Fund Super Institutional Fund 328.71 51.70
DSP BlackRock FMP - 3M Series 27 - Dividend 100.00 -
DSP BlackRock Money Manager Fund - Institutional - Growth 202.72 -
HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Growth 41.55 118.52
HDFC Floating Rate Income Fund - Short Term Plan - Whole - Growth 120.33 -
HDFC FMP 370 Days 2010 (2) - Dividend Payout 35.00 -
HDFC FMP 370D June 2010 (1) - Growth 25.00 -
HDFC Quarterly Interval Fund Plan C - Dividend Payout - 65.00
ICICI Prudential Floating Rate - Plan D - Growth 172.12 -
ICICI Prudential FMP Series 51 - 1 Year Plan B - Growth 20.00 -
ICICI Prudential MF - Flexible Income Plan - Institutional - Daily Dividend 150.02 -
ICICI Prudential MF - Flexible Income Plan - Institutional - Growth 64.56 -
ICICI Prudential Banking and PSU Debt Fund - Daily Dividend 238.19 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Reinvested 635.78 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Payout 100.01 -
ICICI Prudential Interval Fund II - Quarterly Interval Plan Institutional - Dividend 50.00 -
ICICI Prudential MF - Ultra Short Term Plan Super Premium - Growth Option - 79.01
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth Option 20.00 20.00
ICICI Prudential Medium Term Premium Plus - Dividend Payout - 150.00
IDFC Fixed Maturity Monthly Series - 30 - Dividend 150.00 -
IDFC FMP - Half Yearly Series 9 - Plan A - Dividend Payout - 100.00
IDFC Money Manager Fund - Institutional Plan B - Growth Option 200.00 363.38
IDFC Savings Advantage Fund - Plan A - Daily Dividend 251.27 -
Kotak FMP íSM Series 5 - Growth - 50.00
Kotak FMP S70 Days Series í - Growth - 50.00
Kotak FMP S70 Days Series S - Growth 50.00 -
Kotak FMP Ouarterly Institutional Plan Series S - Dividend Payout - 40.00
Kotak Ouarterly Institutional Plan Series 6 - Dividend Payout - 250.00
Kotak Ouarterly Institutional Plan Series 9 - Dividend Payout 80.00 -
Kotak Ouarterly Institutional Plan Series í0 - Dividend Payout 90.00 -
Kotak Floater Long Term - Growth 405.70 233.05
Reliance Fixed Horizon Fund XII - Series 4 - Super Institutional Growth - 300.00
Reliance Fixed Horizon Fund - XIII - Series 3 - Super Institutional Growth - 60.00
Reliance Fixed Horizon Fund - XIV - Series 1 - Super Institutional Growth 100.00 100.00
Reliance Fixed Horizon Fund - XIV - Series 5 - Super Institutional Growth 50.00 50.00
Reliance Fixed Horizon Fund - XV - Series 4 - Super Institutional Growth 50.00 -
Reliance Fixed Horizon Fund - XV - Series 5 - Super Institutional Growth 25.00 -
Reliance Fixed Horizon Fund - XV - Series 6 - Super Institutional Dividend 200.00 -
Reliance Monthly Interval Fund - Series I - Institutional - Dividend 150.01 -
Reliance Monthly Interval Fund - Series II - Institutional - Dividend 296.02 -
Reliance Monthly Interval Fund - Series II - Institutional - Growth - 100.00
Reliance Medium Term Fund - Retail Plan - Growth Option - 25.07
Reliance Mutual Fund - Money Manager Fund - Dividend 123.14 -
Reliance Quarterly Interval Fund - Series I - Dividend 164.01 -
Religare FMP - Series - II Plan B (15 Months) - Growth 120.00 120.00
Schedule 7 : Investments
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
72
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Religare FMP - Series - II Plan A ( 13 Months ) - Growth 60.00 60.00
Religare FMP - Series - II Plan C ( 15 Months ) - Growth 100.00 100.00
Religare FMP - Series - II Plan F ( 13 Months ) - Growth 100.00 100.00
Religare FMP - Series - III Plan A ( 12 Months ) - Growth 50.00 -
Religare FMP - Series - III Plan C ( 370 Days ) - Dividend 50.00 -
SBI Debt Fund Series - 370 Days - Institutional Growth 90.00 90.00
SBI Debt Fund Series - 13 Months - 10 - Institutional Growth - 150.00
SBI Short Horizon Debt Fund - Ultra Short Term Institutional Plan 126.69 83.72
SBI Premier Liquid Fund - Super Institutional - Daily Dividend 74.14 -
Tata Fixed Maturity Plan Series 26 - Plan - A - Growth 20.00 20.00
Tata Floater Fund - Growth Option 554.89 8.32
UTI - Short Term Income Fund - Institutional Income Option - Dividend Payout - 200.00
UTI - Fixed Income Interval Fund - Series II - QIP - V Institutional Dividend Payout - 150.00
UTI - Fixed Maturity Plan - Yearly Series (YFMP 11/09) - Growth - 50.00
UTI - Fixed Income Interval Fund - Monthly Interval Plan I - Dividend 75.00 -
UTI - Fixed Income Interval Fund - Monthly Interval Plan II - Dividend 74.99 -
UTI - Floating Rate Fund - Short Term Plan - Institutional - Growth 437.64 -
UTI - Treasury Advantage Fund - Institutional Plan - Growth 25.05 -
7,750.54 3,723.45
Long-term Investments (at cost less provision for dimunition):
Non-trade, unquoted shares:
In Subsidiary companies:
Sesa Industries Limited (Cancelled on amalgamation)
17,650,284 equity shares of `10 each fully paid-up. (Refer Note No. 2 of Schedule 19) - 41.92
Sesa Resources Limited (Formerly V. S. Dempo & Co. Private Limited)
1,250,000 equity shares of `10 each fully paid-up 1,713.24 1,713.24
In Co-operative societies:
Sesa Ghor Premises Holders' Maintenance Society Limited
400 (200 acquired on amalgamation with Sesa Industries Limited) equity shares
of `10 each fully paid -up [`4,000 (Previous year `2,000)]
- -
Sesa Goa Sirsaim Employees' Consumers Co-operative Society Limited
200 equity shares of `10 each fully paid-up [`2,000 (Previous year `2,000)]
- -
Sesa Goa Sanquelim Employees' Consumers Co-operative Society Limited
230 euity shares of `10 each fully paid-up [`2,300 (Previous year `2,300)]
- -
Sesa Goa Sonshi Employees' Consumers Co-operative Society Limited
468 equity shares of `10 each fully paid-up [`4,680 (Previous year `4,680)]
- -
Sesa Goa Codli Employees' Consumers Co-operative Society Limited
450 equity shares of `10 each fully paid-up [`4,500 (Previous year `4,500)]
- -
Sesa Goa Shipyard Employees' Consumers Co-operative Society Limited
500 equity shares of `10 each fully paid-up [`5,000 (Previous year `5,000)]
- -
The Mapusa Urban Cooperative Bank Limited
40 equity shares of `25 each fully paid-up [`1,000 (Previous year `1,000)]
- -
In other companies:
Goa Shipyard Limited
62,707 equity shares of `10 each fully paid-up (including 34,837 bonus shares)
0.03 0.03
Total Cost 9,463.81 5,478.64
Provision for dimunition in value of investments [`5,000 (Previous year `5,000)] - -
Total 9,463.81 5,478.64
Notes:
1. Aggregate amount of mutual fund investments at net asset value 7,831.44 3,782.28
2. Aggregate amount of unquoted investments at cost [including mutual funds
`7,750.54 crore (Previous year `3,723.45 crore)]
9,463.81 5,478.64
3. Investments on lien towards purchase of shares in Cairn India Limited (Refer
Note No. 3 of Schedule 19).
1,674.67 -
Schedule 7 : Investments (continued)
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
73
Schedule 8 : Inventories
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Stocks (at lower of cost and net realisable value) of:
Raw material [including goods in transit `116.32 crore
(Previous year `Nil)]
294.84 98.03
Finished goods
Iron ore 226.52 263.65
Metallurgical coke 35.14 10.66
Pig Iron 38.58 -
300.24 274.31
Work-in-progress 0.32 1.74
Consumables stores and spares [including goods in transit
`0.13 crore (Previous year `0.11 crore)]
46.09 34.58
Total 641.49 408.66
Schedule 9 : Sundry Debtors
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Debts outstanding for a period exceeding six months
Unsecured and considered good 29.63 36.77
Considered doubtful 0.09 -
29.72 36.77
Other debts
Unsecured and considered good 477.25 241.69
506.97 278.46
Less: Provision for doubtful debts 0.09 -
Total 506.88 278.46
Note:
Dues from subsidiaries
- Sesa Industries Limited (amalgamated with the Company) - 39.14
- Sesa Resources Limited 9.68 -
- Sesa Mining Corporation Limited - 0.05
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
74
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Schedule 10 : Cash and Bank Balances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Cash on hand [including cheques and demand drafts on hand `3.27
crore (Previous year `2.32 crore)]
3.38 2.42
Demand drafts in transit 4.02 0.77
Balances with scheduled banks:
On current account (Refer Note No. 2) 170.84 19.74
On deposit account 698.00 2,350.00
On EEFC account 0.01 0.08
On unpaid dividend account 14.99 4.32
883.84 2,374.14
Balances with other banks:
On current account (Refer Note No. 1) 0.08 0.08
Total 891.32 2,377.41
Notes:
1.
Name of other banks Balance
(` in crore)
Max. balance
at any time
during the
year
` in crore
Balance
(` in crore)
Max. balance
at any time
during the
year
` in crore
Bank of Shanghai, China 0.08 0.18 0.08 0.15
2. Balance in current account includes `140.16 crore, held in Escrow account towards purchase of shares in Cairn India Limited.
(Refer Note No. 3 of Schedule 19)
Schedule 11 : Loans and Advances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Unsecured considered good unless otherwise stated
Advances recoverable in cash or in kind or for value to be received
Considered good 220.77 93.73
Considered doubtful 0.62 0.50
Less: Provision for doubtful advances 0.62 0.50
220.77 93.73
Intercorporate deposits (Refer Note No. 26 of Schedule 19) 1,026.71 1,000.00
Balances with port trusts, customs, excise authorities etc. 2.01 2.36
Loans and advances to staf (Refer Note No. 11 of Schedule 19) 1.02 0.66
Prepaid expenses 8.28 5.17
Deposits 12.72 9.27
Total 1,271.51 1,111.19
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
75
Schedule 12 : Current Liabilities
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sundry creditors
Due to micro and small enterprises (Refer Note No. 12 of Schedule 19) 0.85 0.40
Due to others * 1,047.30 595.53
1,048.15 595.93
Subsidiary companies 4.06 13.78
Advances from customers 22.56 17.74
Unclaimed dividend # 14.99 4.32
Unclaimed matured deposits # 0.05 0.02
Unclaimed interest on deposits # 0.01 0.01
Other liabilities 57.40 27.72
Interest accrued but not due on loans 25.39 45.53
Total 1,172.61 705.05
* Includes `1.16 crore due to the directors (Previous year `0.84 crore)
# There are no amounts due and outstanding as at balance sheet date to be credited to Investor Education and Protection Fund.
Schedule 13 : Provisions
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
For income tax [net of advance tax `3,061.35 crore (Previous year
`1,927.25 crore)]
31.08 43.43
For proposed dividend 304.18 270.06
For dividend tax 49.35 45.90
For gratuity 5.19 3.13
For compensated absence 17.51 12.51
Total 407.31 375.03
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
76
Schedules Annexed to and Forming Part of the Pro?t and Loss
Account
Schedule 14 : Services and Other Proceeds
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sale of material 9.29 3.19
Sale of gases 3.11 2.30
Sale of slag 3.77 -
Technology licence fee - 3.86
Sale of carbon credits 4.44 -
Barge hire charges [Tax deducted at source `0.18 crore (Previous year
`0.20 crore)]
7.32 4.11
Proceeds from various services [Tax deducted at source `0.44 crore
(Previous year `0.63 crore)]
13.04 23.76
Repairs of vessels by shipyard [Tax deducted at source `0.05 crore
(Previous year `0.002 crore)]
4.66 0.04
Diference in rate of exchange (net) 17.38 20.74
Total 63.01 58.00
Schedule 15 : Miscellaneous Income
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on Intercorporate deposits [Tax deducted at source `9.01 crore
(Previous year `14.18 crore)]
91.03 95.21
Interest on Fixed deposits [Tax deducted at source `10.81 crore
(Previous year `0.67 crore)]
81.89 45.93
Interest others 0.09 1.24
173.01 142.38
Dividends
On current investments (Non trade) 259.86 66.66
On long term investments (Non trade) 0.06 0.04
259.92 66.70
Pro?t on sale of current investments (net) 61.86 75.21
Pro?t on sale of assets (net) 0.65 0.12
Diference in rate of exchange on Foreign Currency Convertible Bonds - 121.91
Other receipts [Tax deducted at source `0.14 crore (Previous year `0.25
crore)]
2.38 3.13
Total 497.82 409.45
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
77
Schedule 16 : Production and Operational Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Increase/decrease in stock of ore, ?nished goods and work-in-progress
Opening stock
Iron ore 263.65 131.78
Metallurgical coke 10.66 11.67
Work-in-progress 1.74 1.63
276.05 145.08
Pig iron (acquired on amalgamation) 12.38 -
288.43 145.08
Less: Closing stock
Iron ore 226.52 263.65
Metallurgical coke 35.14 10.66
Pig Iron 38.58 -
Work-in-progress 0.32 1.74
300.56 276.05
(12.13) (130.97)
Excise duty on stock of ?nished goods 3.75 -
Consumption of raw materials 397.35 306.53
Consumption of stores [includes cost of supplies to contractors of the
value of `65.81 crore (Previous year `59.54 crore)]
244.58 208.71
Purchase of ore 536.39 309.56
Personnel (Refer Note No. 15 of Schedule 19)
Salaries, wages, bonus and allowances 87.14 70.61
Contributions to provident and other funds 4.79 3.12
Contributions to gratuity and annuity funds 6.05 3.82
Staf welfare expenses 11.20 6.00
109.18 83.55
Repairs and maintenance (Refer Note No. 9 of Schedule 19)
Plant and machinery 14.41 5.94
Buildings 7.48 1.22
Others 1.26 1.56
23.15 8.72
Contractors for hired trucks and other services 615.56 590.04
Hire charges of barges 61.52 65.60
Wharfage, tonnage, handling and shipping expenses 123.41 141.29
Railway freight 274.38 281.01
Rent 3.99 3.02
Export duty 516.05 109.75
Royalty and cess 249.61 112.80
Rates and taxes 3.51 8.27
Insurance 12.45 7.22
Electricity and water charges 14.97 11.79
Demurrage over despatch 144.71 90.62
Commission and service charges on sales 2.12 5.43
Analysis of ore 3.86 5.84
Maintenance of ofces 0.88 0.46
Printing and stationery 0.72 0.58
Travelling and representation expenses 5.79 2.98
Maintenance of vehicles 0.43 0.36
General expenses 40.29 38.18
Provision for mine closure expenses (Refer Note No. 10 of Schedule 19) 0.37 0.10
3,376.89 2,261.44
Less: Extraction and processing costs recovered 27.34 34.69
Total 3,349.55 2,226.75
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
78
Schedules Annexed to and Forming Part of the Pro?t and Loss
Account (continued)
Schedule 17 : Administration Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Personnel (Refer Note No. 15 of Schedule 19)
Salaries, wages, bonus, allowances and commission 34.44 31.63
Contributions to provident and other funds 0.80 0.60
Contributions to gratuity and annuity funds 1.89 1.23
Staf welfare expenses 2.77 1.44
39.90 34.90
Maintenance of ofces and equipment 1.90 1.06
Printing and stationery 0.98 0.76
Postage, telephone, cables and telex charges 1.18 1.29
Fees to Auditors
Audit fees 0.28 0.20
Other certi?cation fees 0.35 0.31
Reimbursement of expenses 0.04 0.03
0.67 0.54
Sitting fees and commission to non wholetime directors 0.49 0.31
Travelling expenses [includes travelling expenses of directors `0.67
crore (Previous year `0.59 crore)]
4.01 4.38
Professional and legal charges 35.17 18.03
Maintenance of vehicles 2.14 1.88
Donations and contributions 5.63 5.99
Provision for doubtful debts 0.07 -
Provision for doubtful advances 0.12 0.50
Claim under litigation 1.67 9.03
Miscellaneous expenses 7.44 4.80
101.37 83.47
Recovery from subsidiary company - 9.60
Total 101.37 73.87
Schedule 18 : Interest and Other Finance Charges
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on ?xed period loans:
On Foreign Currency Convertible Bonds 27.86 45.36
Interest others 7.40 3.66
Diference in rate of exchange on Foreign Currency Convertible Bonds 48.78 -
Discounting charges 1.67 1.75
Other charges 2.72 2.92
Total 88.43 53.69
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
79
Schedule 19:
1. Signi?cant Accounting Policies
i) Basis of accounting
The ?nancial statements have been prepared on accrual basis under the historical cost convention to
comply in all material respects with the Generally Accepted Accounting Principles in India and the relevant
provisions of the Companies Act, 1956.
ii) Use of estimates
The presentation of ?nancial statements requires estimates and assumptions to be made that afect the
reported amount of assets and liabilities (including contingent liabilities) on the date of the ?nancial
statements and the reported amount of revenues and expenses during the reporting period. Diference
between the actual results and the estimates are recognised in the period in which the results are known /
materialised.
iii) Revenue recognition
Revenue is recognised when signi?cant risks and rewards of ownership of the goods sold are transferred to
the customer and the commodity has been delivered to the shipping agent/customer.
Revenue represents the invoice value of goods and services provided to third parties net of discounts,
sales taxes/value added taxes, and is after considering adjustments on ?nal invoices (arising on analysis
variances) received upto the year end.
Revenue in respect of contracts for services is recognised on completion of services.
Dividend income is recognised when the right to receive dividend is established.
Interest income is recognised on a time proportion basis by reference to the principal outstanding and at
the interest rate applicable.
iv) Employee bene?ts
a. Provident fund: The Company’s contribution to the recognised provident fund, pension fund and
employees' deposit linked insurance scheme paid/payable during the year is debited to the Pro?t and
Loss Account.
b. Gratuity fund: The Company accounts for the net actuarial liability of its obligations for gratuity
bene?ts based on an independent actuarial valuation determined on the basis of the projected unit
credit method carried as at the year end. Based on the above determined obligation, the Company
makes contribution to funds managed by insurance companies. Actuarial gains and losses are
immediately recognised in the Pro?t and Loss Account.
c. Annuity fund: The Company has a de?ned contribution plan for certain categories of employees,
wherein it annually contributes a predetermined proportion of employee’s salary to an insurance
company which administers the fund. The Company recognises such contributions as an expense over
the period of services rendered.
d. Compensated absence: The liability in respect of compensated absence for employees is determined
on the basis of an independent actuarial valuation carried out at the end of the year and diferential
liability recognised as expense in the Pro?t and Loss Account.
v) Investments
Long-term investments are stated at cost less provision for diminution. Provision for diminution is made to
recognise decline (other than temporary) in the value of investments, if any. Current investments are stated
at cost or market value, whichever is lower.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
80
vi) Inventories
Raw material, consumable stores and spares are held for use in production and are valued at cost
determined on the basis of weighted average method.
Work-in-progress, stock of iron ore, metallurgical coke and pig iron are valued at lower of cost or net
realisable value. Cost includes raw material and proportion of ?xed and variable overheads.
vii) Foreign currency transactions
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction.
Year end balance of monetary assets and liabilities are translated at the year end rates. Exchange diference
arising on restatement or settlement is charged to the Pro?t and Loss Account.
viii) Foreign currency forward contracts
The Company enters into forward derivative ?nancial instruments to hedge its exposure to foreign currency.
The Company does not hold derivative ?nancial instruments for speculative purposes. Derivative ?nancial
instruments are initially recorded at their fair value on the date of the derivative transaction and are re-
measured at their fair value at subsequent balance sheet dates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
the Pro?t and Loss Account.
Changes in the fair value of derivatives that are designated and qualify as cash ?ow hedges are recorded in
Reserves and Surplus. Amount deferred to Reserves and Surplus are recycled in the Pro?t and Loss Account
in the period when the hedged item is recognised in the Pro?t and Loss Account.
Derivative ?nancial instruments that do not qualify for hedge accounting are marked to market at the
balance sheet date and gains or losses are recognised in the Pro?t and Loss Account immediately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised,
or no longer quali?es for hedge accounting. Any cumulative gain or loss on the hedging instrument
recognised in Reserves and Surplus is kept in reserves and surplus until the forecast transaction occurs. If a
hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in Reserves
and Surplus is transferred to the Pro?t and Loss Account for the year.
ix) Fixed assets
Fixed assets except for the leasehold mine at Karnataka, are stated at their original cost along with
taxes, duties (net of Modvat/Cenvat availed, if any), freight and interest on borrowings up to the date of
commissioning for operation, attributable to acquisition/construction of the concerned assets.
The iron ore reserves of the leased mine located in Karnataka were valued and shown as ?xed assets by
erstwhile A. Narrain Mines Ltd. (ANML). The Company continues to show the value of the said mining lease
as ?xed assets after merger of said ANML. The Company’s other mining leases having ore reserves, however,
are not valued. Amounts paid to Government authorities towards renewal of forest clearances in respect of
owned mining leases are capitalized as a part of mining leases.
x) Borrowing costs
Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of time are
capitalised. All other borrowing costs including exchange diferences on foreign currency loans are charged to
revenue.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
81
xi) Depreciation
Depreciation, except on the leasehold mine at Karnataka, and in respect of vehicles, furniture, computers
and railway wagons is provided for on Straight Line Method (SLM) at the rates speci?ed in Schedule XIV of
the Companies Act, 1956. In respect of vehicles, furniture and computers, depreciation has been charged
on SLM method at annual rate of 20%, 10% and 30% respectively to bring it in line with the useful life of the
assets. The cost of railway wagons procured under Wagon Investment Scheme (WIS) is being depreciated at
the rate of 10% per annum on a Straight Line basis. The value of mining leases capitalised are amortised in
proportion to actual quantity of ore extracted therefrom. Amounts paid towards renewal of forest clearances
in respect of owned mining lease are amortised over the operating period of the lease. Fixed assets costing
less than `5,000 are wholly depreciated in the year of acquisition. Expenses on implementation of Enterprise
Resource Planning – SAP are amortized over thirty six months.
Depreciation has been charged from the month of the date of purchase in the case of acquisitions made
during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale.
xii) Impairment of assets
The carrying amounts of tangible ?xed assets are reviewed for impairment, if events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If there are indicators of
impairment, an assessment is made to determine whether the asset’s carrying value exceeds its recoverable
amount. Whenever the carrying value of an asset exceeds recoverable amount, impairment is charged to
the Pro?t and Loss Account.
xiii) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as a result of a past event and it is
probable that an out?ow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions (excluding retirement bene?ts) are not discounted to their present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. A
contingent liability is disclosed unless the possibility of an out?ow of resources embodying economic
bene?ts is remote. A contingent asset is neither recognised nor disclosed.
xiv) Segment reporting
The Company is in the business of mining and sale of iron ore, manufacture and sale of metallurgical coke
and pig iron. All of the Company’s establishments are located in one country i.e. India. The revenues from
other than sale of ore, metallurgical coke and pig iron are either incidental to the above three businesses or
of non-recurring nature. Therefore the Company operates in three business segments.
Segment revenue, segment expenses, segment assets and segment liabilities have been identi?ed to
segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses,
assets and liabilities which relate to the Company as a whole and are not allocable to segments on
reasonable basis, have been included under “Unallocated revenue/ expenses/ assets/ liabilities”.
xv) Taxes on income
The Company’s income taxes include taxes on the Company’s taxable pro?ts, adjustment attributable to
earlier periods and changes in deferred taxes. Valuation of all tax liabilities/receivables are carried at current
amounts and in accordance with enacted tax regulations, rates or in the case of deferred taxes those that
have been substantially enacted.
Deferred tax is calculated to correspond to the tax efect arising when ?nal tax is determined. Deferred
tax corresponds to the net efect of tax on all timing diferences which occur as a result of items being
allowed for income tax purposes during a period diferent from when they were recognised in the ?nancial
statements.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
82
xvi) Accounting for government grants/refunds
Government grants/subsidies and refunds due from Government Authorities are accounted when there is
reasonable certainty of their realisation.
2. Amalgamation of Sesa Industries Limited with the Company:
a) The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme of
Amalgamation (the “Scheme”) of Sesa Industries Limited (engaged in the manufacture and sale of Pig Iron
and hereinafter referred to as SIL) (erstwhile subsidiary of Sesa Goa Limited) with the Company efective
from the appointed date i.e. 1st April, 2005, by setting aside the Order dated 21st February, 2009, passed
by the Division Bench of the High Court of Bombay at Goa not sanctioning the Scheme passed by the
Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated 18th December, 2008.
The Scheme has accordingly been given efect to in these ?nancial statements. The efective date of
amalgamation is 14th February, 2011.
b) In accordance with the Scheme approved by the Court:
i) SIL stands dissolved without winding up with efect from 1st April, 2005.
ii) All assets, debts and liabilities of SIL have been deemed transferred to and vested in the Company with
efect from 1st April, 2005.
iii) 9,398,864 equity shares of `1 each have been issued in the ratio of 20 fully paid equity shares of `1 each
(after adjustment for stock split and bonus shares) in the Company for 5 fully paid equity shares of `10
each held by the shareholders of SIL except that 17,650,284 equity shares held by the Company in SIL
stand cancelled.
iv) Dividend on the aforesaid 9,398,864 equity shares of `1 each amounting to `12.88 crore has been paid
to the shareholders of erstwhile SIL for the ?nancial years from 31st March, 2006 to 31st March, 2010 at
the rates declared in the relevant years. The aforesaid amount of `12.88 crore includes dividend tax of
`1.83 crore.
c) The amalgamation has been accounted using the “Pooling of Interests” method whereby:
i) The assets, liabilities and reserves (excluding share premium) of SIL have been recorded at their book
values. The excess of net assets over the face value of shares allotted after eliminating the carrying
value of the investment held in erstwhile SIL has been credited to Amalgamation Reserve. Accordingly,
the balance of share premium in erstwhile SIL also stands eliminated.
ii) The balance in the Pro?t and Loss account of SIL as of 1st April, 2005 `6.60 crore and the incremental
balance of `276.88 crore until 31st March, 2010 being the pro?ts for the period from 1st April, 2005 to
31st March, 2010 has been included in the balance in Pro?t and Loss Account.
d) In view of the above amalgamation, the ?gures for the current year are not comparable with those of the
previous year.
3. The Company has proposed to acquire upto 20% of the equity share capital of Cairn India Ltd (“CIL”), subject
to requisite approvals. For the said acquisition, the Company is acting as a Person in Concert with its ultimate
holding company Vedanta Resources Plc ( “Vedanta”), and/or any of Vedanta’s subsidiaries for acquiring majority
of equity shares of CIL. The Company has received clearance from Securities and Exchange Board of India
(“SEBI”) to proceed with an open ofer of up to 20% of the shares of CIL. The Company has launched the Open
Ofer from 11th April, 2011 at a price of `355 per share of CIL which will close on 30th April, 2011.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
83
In April 2011, the Company acquired 200 million shares amounting to 10.4% stake in CIL from Petronas
International Corporation Ltd. (“Petronas”) at a price of `331 per share. The acquisition is in addition to the Open
Ofer launched by the Company on 11th April, 2011.
4. The Company has acquired assets of the upcoming Steel Plant Unit of Bellary Steel and Alloys Ltd. (“BSAL”) for
an all cash consideration of `220.00 crore. BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project
at Bellary. The properties of the under construction plant acquired are freehold land of ~700 acres, building and
structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an “As is
where is” basis to the Company as of 22nd March, 2011.
The above acquisition has been challenged by JSW Ltd. in the Supreme Court. The court has asked both the
parties to maintain status quo till the matter is decided.
5. During the previous year 2009-10, the Company had issued 33,274,000 equity shares of `1 each at a premium of
`160.46 per share for cash to Twin Star Holdings Limited on a preferential basis under the applicable provisions
of The Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 (the
“Guidelines”). A part of the proceeds aggregating `101.47 crore (Previous year `101.47 crore) has been utilised
for the Company’s capital projects. The unutilised portion of the issue proceeds amounting to `435.77 crore
(Previous year `435.77 crore) has been invested in Mutual Funds.
6. During the previous year 2009-10 the Company issued 5000 Foreign Currency Convertible Bonds (“FCCBs”)
aggregating US$ 500 million at a coupon rate of 5% (net to bondholder). The bondholders have an option
to convert these FCCBs into shares, at a conversion price of `346.88 per share at a ?xed rate of exchange on
conversion of `48.00 per US$ 1.00 at any time on or after 9th December, 2009. The conversion price is subject
to adjustment in certain circumstances. The FCCBs may be redeemed in whole, but not in part, on or after
30th October, 2012, subject to certain conditions. Unless previously converted, redeemed or repurchased and
cancelled, the FCCBs fall due for redemption on 31st October, 2014 at par. As at 31st March, 2011, 2,832 FCCB’s
have been converted into 39,188,159 equity shares.
A part of the proceeds aggregating `775.28 crore (Previous year `21.70 crore) has been utilised for the Company’s
capital projects, the construction of which is in progress. The unutilised portion of the FCCB proceeds
aggregating `1,607.22 crore (Previous year `2,360.80 crore) have been placed in term deposits/ mutual funds/
current accounts with a scheduled bank, pending utilisation. Interest aggregating `4.72 crore (Previous year `0.17
crore) in respect of amounts utilised for the construction of capital projects has been capitalised and included as
part of Capital Work in Progress. The balance interest amounting to `27.86 crore (Previous year `45.36 crore) has
been charged to the Pro?t and Loss Account.
7. Contingent Liabilities:
i) Guarantees (excluding the liability for which provisions have been made) amounting to `7.83 crore (Previous
year `9.04 crore) given by the Bankers in favour of various parties - none invoked.
ii) Letters of Credit opened by the banks in favour of suppliers amounting to `363.13 crore (Previous year
`174.52 crore).
iii) Bonds executed in favour of customs authorities in respect of export of iron ore `1,627.71 crore (Previous
year `1,003.23 crore).
iv) Claims by custom authorities (under dispute) relating to diferential export duty on export shipments `49.13
crore (Previous year `49.13 crore). The said amount is also included under bonds executed detailed in point
7 (iii) above.
v) Bills discounted under letters of credit with banks `353.90 crore. (Previous year `471.08 crore).
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
84
vi) Provisions have also not been made in the accounts in respect of the following liabilities not
acknowledged as debts for the reasons stated against them:
a) Dead rent on deemed mining leases for the period from 20.12.1962 to 23.5.1987 amounting to `0.10
crore (Previous year `0.10 crore) and royalty for the period from 20.12.1961 to 30.9.1963 amounting to
`0.12 crore (Previous year `0.12 crore) sought to be levied by the Government pursuant to the Goa,
Daman & Diu Mining Concessions (Abolition & Declaration as Mining Leases) Act, 1987, challenged by
Special Leave Petition before Supreme Court of India.
b) Claims related to commercial and employment contracts `7.40 crore (Previous year `7.06 crore).
c) A civil suit claiming a damage of a minimum amount of `37.50 crore (Previous year `37.50 crore)
towards infringement of patent has been ?led against the Company.
d) Disputed sales tax demand of `0.45 crore (Previous year `0.45 crore) including interest and penalty of
`0.09 crore (Previous year `0.09 crore) appealed before Appellate Authority.
e) Disputed income tax demand of `19.51 crore (Previous year `9.24 crore) including interest and penalty
of `1.71 crore (Previous year `0.56 crore), appealed before Appellate Authority.
f) Disputed demand from customs authorities towards ?ne and penalty of `0.35 crore (Previous year `0.35
crore) for improper documentation of equipment loaded/unloaded to/from the company’s vessel M.V.
Orissa and its improper use.
g) Disputed demand from customs authorities of `1.60 crore including penalty of `0.80 crore, for
transferring imported metallurgical coke at concessional rate of duty under the provisions of Customs
(Import of Goods at Concessional rate of Duty for manufacture of Excisable Goods) Rules 1996 to the
erstwhile M/s. Sesa Kembla Coke Company Limited, appealed before the Appellate Authority.
h) Disputed forest development tax amounting to `173.96 crore (Previous year `164.12 crore) levied by
Government of Karnataka challenged by writ petition ?led in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending. A bank guarantee amounting to `35.00
crore (Previous year `74.00 crore) has been furnished against this demand. Also an amount of `32.97
crore (Previous year `5.00 crore) has been deposited against aforesaid demand and same is included
under Loans and Advances
i) A Notice issued by the Deputy Conservator of Forest, Chitradurga, demanding registration of a
supplemental forest lease agreement by payment of stamp duty calculated on the net present value
which has been challenged in the High Court of Karnataka. Estimated liability is `0.92 crore (Previous
year `0.92 crore). A bank guarantee amounting to `0.45 crore (Previous year `0.45 crore) has been
furnished against this demand.
j) Cess on transportation of Ore, coal and coke within Goa levied by Government of Goa under the Goa Rural
Development and Welfare Cess Act, 2000 (Goa Act, 29 of 2000) amounting to `73.16 crore (Previous year
`49.31 crore) challenged by way of writ petition in the High Court of Bombay, Panjim Bench.
k) A demand from Railway authorities towards stacking charges amounting to `4.09 crore appealed before
Kolkata High Court and stay obtained. A bank guarantee amounting to `4.09 crore has been furnished
against this demand.
The Company does not expect devolvement of any liability in respect of the above.
8. Estimated amount of contracts (net of advances) remaining to be executed on capital account `319.16 crore
(Previous year `402.21 crore).
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
85
9. Direct expenditure on repairs and maintenance included under major heads of expenses are as under:
(` in crore)
Particulars Plant and
Machinery
Buildings Others Total
a) Wages and salaries 14.42 0.64 0.21 15.27
(11.35) (0.22) (0.07) (11.64)
b) Consumption of stores 59.63 2.12 0.60 62.35
(51.46) (0.72) (0.33) (52.51)
c) Contractors for various services 15.53 0.45 0.51 16.49
(17.66) (1.32) (0.37) (19.35)
d) Others 1.73 1.88 0.17 3.78
(1.46) ( - ) (0.06) (1.52)
Total 91.31 5.09 1.49 97.89
(81.93) (2.26) (0.83) (85.02)
(Figures in bracket relate to previous year.)
10. In terms of the Mineral Concession Rules, 1960 and Mineral Conservation and Development Rules, (MCDR) 1988,
the Company has provided a “?nancial assurance” in the form of a bank guarantee to the Regional Controller of
Mines, towards its mine closure obligation. The Company has made a provision for expense to the extent of the
bank guarantees provided.
The present mine closure provision at 31st March, 2011 is as under:
(` in crore)
Nature of obligation 2010-11 2009-10
Mines Closure Provision
Opening carrying amount 1.60 1.50
Additional provisions made during the year 0.37 0.10
Amounts used during the year - -
Unused amounts reversed during the year - -
Closing carrying amount 1.97 1.60
11. Loans and Advances as shown in Schedule 11 include the following amounts due from:
(` in crore)
Particulars 2010-2011 2009-2010
As at
31st March,
2011
Maximum
amount during
the year
As at
31st March,
2010
Maximum
amount during
the year
Advance recoverable in cash or kind or for value to be received
Directors Travel/LTA Advance 0.01 0.02 - 0.05
12. The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure
under Schedule VI of the Companies Act, 1956, and the Micro Small and Medium Enterprises Development Act,
2006 are as follows:
(` in crore)
Sr. No. Particulars 2010-11 2009-10
1. The principal amount remaining unpaid to supplier as at the end of accounting year. 0.85 0.40
2. The interest due thereon remaining unpaid to supplier as at the end of accounting year. - -
The above information has been compiled in respect of parties to the extent to which they could be identi?ed as
micro or small enterprises on the basis of intimation received from the “suppliers” regarding their status under
the Micro Small and Medium Enterprises Development Act, 2006.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
86
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
B
i
r
l
a
S
u
n
l
i
f
e
-
C
a
s
h
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
6
6
,
8
0
4
,
9
5
4
6
6
.
8
2
6
6
,
8
0
4
,
9
5
4
6
6
.
8
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
-
F
l
o
a
t
i
n
g
r
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
3
1
8
,
0
2
0
,
1
7
0
3
1
8
.
0
2
3
1
8
,
0
2
0
,
1
7
1
3
1
8
.
0
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
-
F
l
o
a
t
i
n
g
r
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
w
e
e
k
l
y
d
i
v
i
d
e
n
d
-
-
-
-
7
5
9
,
0
0
7
,
9
8
7
7
5
9
.
2
7
7
5
9
,
0
0
7
,
9
8
7
7
5
9
.
2
7
-
-
B
i
r
l
a
S
u
n
l
i
f
e
F
l
o
a
t
i
n
g
R
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
(
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
)
-
G
r
o
w
t
h
9
9
,
9
7
9
,
0
0
4
1
0
0
.
0
0
-
-
-
-
9
9
,
9
7
9
,
0
0
4
1
0
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
T
e
r
m
O
p
p
o
r
t
u
n
i
t
y
f
u
n
d
-
d
i
v
i
d
e
n
d
p
a
y
o
u
t
o
p
t
i
o
n
-
-
-
-
1
,
3
7
9
,
9
9
8
,
6
9
8
1
,
3
8
1
.
5
5
8
7
0
,
8
1
9
,
4
5
4
8
7
1
.
6
5
5
0
9
,
1
7
9
,
2
4
4
5
0
9
.
9
0
B
i
r
l
a
S
u
n
l
i
f
e
C
a
s
h
P
l
u
s
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
,
2
3
3
,
7
5
5
,
6
1
5
2
,
4
1
2
.
9
7
2
,
2
0
7
,
8
4
7
,
9
9
7
2
,
3
8
4
.
9
8
2
5
,
9
0
7
,
6
1
8
2
7
.
9
9
B
i
r
l
a
S
u
n
l
i
f
e
F
i
x
e
d
t
e
r
m
P
l
a
n
-
S
e
r
i
e
s
C
D
(
3
7
0
D
a
y
s
)
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
B
i
r
l
a
S
u
n
l
i
f
e
I
n
t
e
r
v
a
l
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
-
-
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
I
n
t
e
r
v
a
l
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
I
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
f
u
n
d
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
a
v
i
n
g
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
G
r
o
w
t
h
3
,
2
4
9
,
7
0
8
5
.
6
8
-
-
-
-
3
,
2
4
9
,
7
0
8
5
.
6
8
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
a
v
i
n
g
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
3
0
3
,
7
8
4
,
4
8
4
1
,
3
0
4
.
6
7
1
,
3
0
3
,
7
8
4
,
4
8
4
1
,
3
0
4
.
6
7
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
t
e
r
m
F
M
P
-
S
e
r
i
e
s
3
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
5
0
,
0
2
1
,
0
3
5
1
5
0
.
0
2
1
5
0
,
0
2
1
,
0
3
5
1
5
0
.
0
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
t
e
r
m
F
M
P
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
B
i
r
l
a
S
u
n
l
i
f
e
U
l
t
r
a
S
h
o
r
t
t
e
r
m
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
1
,
5
7
0
,
7
6
7
,
7
4
1
1
,
5
7
1
.
6
3
1
,
5
7
0
,
7
6
7
,
7
4
1
1
,
5
7
1
.
6
3
-
(
0
.
0
0
)
B
i
r
l
a
S
u
n
l
i
f
e
U
l
t
r
a
S
h
o
r
t
t
e
r
m
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
G
r
o
w
t
h
-
-
-
-
2
9
0
,
9
4
2
,
2
7
0
3
4
0
.
0
9
-
-
2
9
0
,
9
4
2
,
2
7
0
3
4
0
.
0
9
C
a
n
a
r
a
R
o
b
e
c
o
I
n
t
e
r
v
a
l
S
e
r
i
e
s
2
-
Q
u
a
r
t
e
r
l
y
P
l
a
n
2
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
9
4
,
9
6
0
,
4
1
3
1
9
5
.
0
0
1
9
4
,
9
6
0
,
4
1
3
1
9
5
.
0
0
-
-
C
a
n
a
r
a
R
o
b
e
c
o
F
l
o
a
t
i
n
g
R
a
t
e
S
T
-
D
a
i
l
y
d
i
v
i
d
e
n
d
f
u
n
d
-
-
-
-
4
8
,
7
5
0
,
0
5
4
5
0
.
0
2
4
8
,
7
5
0
,
0
5
4
5
0
.
0
2
-
-
C
a
n
a
r
a
R
o
b
e
c
o
F
l
o
a
t
i
n
g
R
a
t
e
S
T
-
G
r
o
w
t
h
-
-
-
-
3
2
,
8
9
6
,
7
6
3
5
0
.
0
2
-
-
3
2
,
8
9
6
,
7
6
3
5
0
.
0
2
C
a
n
a
r
a
R
o
b
e
c
o
L
i
q
u
i
d
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
8
1
3
,
9
0
9
,
9
0
3
8
1
8
.
1
2
8
1
3
,
9
0
9
,
9
0
3
8
1
8
.
1
2
-
-
C
a
n
a
r
a
R
o
b
e
c
o
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
3
1
,
4
9
1
,
8
1
0
1
,
1
5
5
.
7
1
9
3
1
,
4
9
1
,
8
1
0
1
,
1
5
5
.
7
1
-
-
C
a
n
a
r
a
R
o
b
e
c
o
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
G
r
o
w
t
h
3
7
,
1
9
8
,
2
5
8
5
1
.
7
0
-
-
2
2
1
,
4
5
4
,
2
6
2
3
2
8
.
7
1
3
7
,
1
9
8
,
2
5
8
5
1
.
7
0
2
2
1
,
4
5
4
,
2
6
2
3
2
8
.
7
1
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
5
-
D
i
v
i
d
e
n
d
-
-
-
-
2
3
5
,
0
0
0
,
0
0
0
2
3
5
.
0
0
2
3
5
,
0
0
0
,
0
0
0
2
3
5
.
0
0
-
-
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
6
-
D
i
v
i
d
e
n
d
-
-
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
-
-
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
7
-
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
D
S
P
B
l
a
c
k
r
o
c
k
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
3
,
5
8
4
,
3
0
4
3
5
8
.
7
2
3
,
5
8
4
,
3
0
4
3
5
8
.
7
2
-
-
D
S
P
B
l
a
c
k
r
o
c
k
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
G
r
o
w
t
h
-
-
-
-
1
,
4
8
4
,
3
5
1
2
0
2
.
7
2
-
-
1
,
4
8
4
,
3
5
1
2
0
2
.
7
2
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
p
l
a
n
-
W
h
o
l
e
s
a
l
e
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
5
6
,
0
7
3
,
0
5
5
6
5
8
.
1
4
6
5
6
,
0
7
3
,
0
5
5
6
5
8
.
1
4
-
-
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
p
l
a
n
-
W
h
o
l
e
s
a
l
e
-
G
r
o
w
t
h
O
p
t
i
o
n
5
8
,
7
1
8
,
4
6
0
1
1
8
.
5
2
3
5
,
3
6
5
,
0
2
0
7
1
.
3
8
1
9
,
3
0
6
,
0
3
3
4
1
.
5
5
9
4
,
0
8
3
,
4
8
0
1
8
9
.
9
0
1
9
,
3
0
6
,
0
3
3
4
1
.
5
5
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
S
a
v
i
n
g
s
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
1
8
,
6
2
4
,
9
5
2
7
6
4
.
3
6
7
1
8
,
6
2
4
,
9
5
2
7
6
4
.
3
6
-
-
H
D
F
C
F
l
o
a
t
i
n
g
r
a
t
e
i
n
c
o
m
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
w
h
o
l
e
s
a
l
e
O
p
t
i
o
n
-
D
a
i
l
y
d
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
-
-
-
-
7
6
0
,
1
8
2
,
8
2
5
7
6
6
.
3
3
7
6
0
,
1
8
2
,
8
2
5
7
6
6
.
3
3
-
-
H
D
F
C
F
l
o
a
t
i
n
g
r
a
t
e
i
n
c
o
m
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
w
h
o
l
e
s
a
l
e
O
p
t
i
o
n
-
G
r
o
w
t
h
-
-
-
-
7
1
,
9
2
1
,
5
7
4
1
2
0
.
3
3
-
-
7
1
,
9
2
1
,
5
7
4
1
2
0
.
3
3
H
D
F
C
F
M
P
3
5
D
A
U
G
2
0
1
0
(
2
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
1
3
.
D
e
t
a
i
l
s
o
f
m
o
v
e
m
e
n
t
i
n
i
n
v
e
s
t
m
e
n
t
s
p
u
r
c
h
a
s
e
d
/
s
o
l
d
d
u
r
i
n
g
t
h
e
y
e
a
r
N
o
t
e
s
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
A
c
c
o
u
n
t
s
F
o
r
t
h
e
Y
e
a
r
E
n
d
e
d
3
1
s
t
M
a
r
c
h
,
2
0
1
1
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
1
9
:
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
87
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
H
D
F
C
F
M
P
3
5
D
A
U
G
2
0
1
0
(
3
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
H
D
F
C
F
M
P
3
5
D
S
E
P
2
0
1
0
(
1
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
H
D
F
C
F
M
P
3
7
0
D
J
u
n
e
2
0
1
0
(
1
)
-
G
r
o
w
t
h
-
-
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
H
D
F
C
F
M
P
3
7
0
D
a
y
s
2
0
1
0
(
2
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
3
5
,
0
0
0
,
0
0
0
3
5
.
0
0
-
-
3
5
,
0
0
0
,
0
0
0
3
5
.
0
0
H
D
F
C
F
M
P
9
0
D
J
u
n
e
2
0
1
0
-
D
i
v
i
d
e
n
d
-
S
e
r
i
e
s
X
I
I
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
-
-
H
D
F
C
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
P
l
a
n
C
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
6
5
,
0
0
0
,
0
0
0
6
5
.
0
0
-
-
-
-
6
5
,
0
0
0
,
0
0
0
6
5
.
0
0
-
-
H
D
F
C
S
h
o
r
t
T
e
r
m
O
p
p
o
r
t
u
n
i
t
i
e
s
F
u
n
d
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
l
o
a
t
i
n
g
r
a
t
e
-
P
l
a
n
D
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
2
,
2
0
6
,
3
2
8
2
2
2
.
1
1
2
2
,
2
0
6
,
3
2
8
2
2
2
.
1
1
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
U
l
t
r
a
S
h
o
r
t
t
e
r
m
P
l
a
n
S
u
p
e
r
P
r
e
m
i
u
m
-
G
r
o
w
t
h
7
6
,
4
7
9
,
2
7
7
7
9
.
0
1
1
0
1
,
4
7
1
,
8
1
0
1
0
4
.
8
3
-
-
1
7
7
,
9
5
1
,
0
8
7
1
8
3
.
8
4
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
U
l
t
r
a
S
h
o
r
t
t
e
r
m
P
l
a
n
S
u
p
e
r
P
r
e
m
i
u
m
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
8
8
3
,
3
5
1
,
6
8
4
8
8
5
.
2
1
8
8
3
,
3
5
1
,
6
8
4
8
8
5
.
2
1
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
F
l
e
x
i
b
l
e
I
n
c
o
m
e
P
l
a
n
P
r
e
m
i
u
m
-
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
7
5
,
2
2
8
,
4
8
5
7
9
5
.
4
3
6
1
,
0
4
0
,
5
7
6
6
4
5
.
4
1
1
4
,
1
8
7
,
9
0
9
1
5
0
.
0
2
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
F
l
e
x
i
b
l
e
I
n
c
o
m
e
P
l
a
n
P
r
e
m
i
u
m
-
G
r
o
w
t
h
-
-
-
-
3
,
5
3
1
,
5
5
7
6
4
.
5
6
-
-
3
,
5
3
1
,
5
5
7
6
4
.
5
6
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
l
o
a
t
i
n
g
r
a
t
e
-
P
l
a
n
D
-
G
r
o
w
t
h
-
-
-
-
1
1
,
8
3
1
,
4
4
2
1
7
2
.
1
1
-
-
1
1
,
8
3
1
,
4
4
2
1
7
2
.
1
1
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
a
n
k
i
n
g
a
n
d
P
S
U
d
e
b
t
p
r
e
m
i
u
m
p
l
u
s
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
5
3
8
,
6
4
1
,
4
9
7
5
4
1
.
9
3
3
0
2
,
1
3
8
,
7
0
3
3
0
3
.
7
4
2
3
6
,
5
0
2
,
7
9
4
2
3
8
.
1
8
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
M
P
S
e
r
i
e
s
5
1
-
1
Y
e
a
r
P
l
a
n
B
-
G
r
o
w
t
h
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
M
P
S
e
r
i
e
s
5
2
-
1
Y
e
a
r
P
l
a
n
A
-
G
R
O
W
T
H
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
A
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
4
9
,
9
8
1
,
5
0
7
5
0
.
0
0
-
-
4
9
,
9
8
1
,
5
0
7
5
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
I
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
E
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
8
,
3
2
7
,
5
6
1
7
8
.
3
5
7
8
,
3
2
7
,
5
6
1
7
8
.
3
5
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
V
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
L
o
n
g
t
e
r
m
F
l
o
a
t
i
n
g
R
a
t
e
P
l
a
n
C
-
D
i
v
i
d
e
n
d
-
-
-
-
2
4
9
,
8
0
0
,
1
6
0
2
5
0
.
0
0
2
4
9
,
8
0
0
,
1
6
0
2
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
M
e
d
i
u
m
T
e
r
m
P
r
e
m
i
u
m
P
l
u
s
-
D
i
v
i
d
e
n
d
p
a
y
o
u
t
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
l
e
n
d
e
d
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
3
5
,
1
9
9
,
0
7
2
9
3
5
.
2
5
2
9
9
,
8
9
5
,
0
3
7
2
9
9
.
4
7
6
3
5
,
3
0
4
,
0
3
6
6
3
5
.
7
8
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
l
e
n
d
e
d
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
,
0
7
5
,
5
7
8
,
3
7
0
1
,
1
1
6
.
0
8
9
7
9
,
4
6
9
,
8
1
2
1
,
0
1
6
.
0
7
9
6
,
1
0
8
,
5
5
8
1
0
0
.
0
1
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
s
t
i
t
u
t
i
o
n
a
l
L
i
q
u
i
d
F
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
9
0
,
1
4
9
,
9
3
9
9
0
1
.
7
0
9
0
,
1
4
9
,
9
3
9
9
0
1
.
7
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
I
-
Q
u
a
r
t
e
r
l
y
i
n
t
e
r
v
a
l
p
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
d
i
v
i
d
e
n
d
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
I
D
F
C
C
a
s
h
F
u
n
d
-
L
i
q
u
i
d
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
0
0
,
4
3
8
,
4
6
2
5
0
0
.
5
6
5
0
0
,
4
3
8
,
4
6
2
5
0
0
.
5
6
-
-
I
D
F
C
F
i
x
e
d
M
a
t
u
r
i
t
y
p
l
a
n
M
o
n
t
h
l
y
S
e
r
i
e
s
-
3
0
-
D
i
v
i
d
e
n
d
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
I
D
F
C
F
M
P
-
H
a
l
f
Y
e
a
r
l
y
S
e
r
i
e
s
9
9
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
I
D
F
C
F
M
P
M
o
n
t
h
l
y
-
S
e
r
i
e
s
2
7
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
P
l
a
n
B
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
8
,
0
2
5
1
0
0
.
0
2
1
0
0
,
0
0
8
,
0
2
5
1
0
0
.
0
2
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
T
r
e
a
s
u
r
y
P
l
a
n
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
C
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
4
3
,
1
2
3
,
3
2
6
9
4
3
.
9
6
9
4
3
,
1
2
3
,
3
2
6
9
4
3
.
9
6
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
T
r
e
a
s
u
r
y
P
l
a
n
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
C
-
G
r
o
w
t
h
2
5
3
,
5
8
2
,
5
0
4
3
6
3
.
3
8
-
-
1
7
1
,
6
6
9
,
3
9
9
2
0
0
.
0
0
2
5
3
,
5
8
2
,
5
0
4
3
6
3
.
3
8
1
7
1
,
6
6
9
,
3
9
9
2
0
0
.
0
0
I
D
F
C
S
a
v
i
n
g
A
d
v
a
n
t
a
g
e
F
u
n
d
-
P
l
a
n
A
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
2
,
5
1
2
,
3
3
1
2
5
1
.
2
7
-
-
2
,
5
1
2
,
3
3
1
2
5
1
.
2
7
I
D
F
C
U
l
t
r
a
S
h
o
r
t
T
e
r
m
F
u
n
d
-
M
o
n
t
h
l
y
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
9
9
,
5
4
2
,
9
8
3
1
0
0
.
0
1
9
9
,
5
4
2
,
9
8
3
1
0
0
.
0
1
-
-
K
o
t
a
k
F
M
P
í
S
M
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
K
o
t
a
k
F
M
P
S
7
0
D
a
y
s
-
S
e
r
i
e
s
í
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
K
o
t
a
k
F
M
P
S
7
0
D
a
y
s
-
S
e
r
i
e
s
S
-
G
r
o
w
t
h
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
S
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
-
-
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
5
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
6
0
,
0
0
0
,
0
0
0
1
6
0
.
0
0
1
6
0
,
0
0
0
,
0
0
0
1
6
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
6
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
2
5
0
,
0
0
0
,
0
0
0
2
5
0
.
0
0
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
-
-
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
88
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
8
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
9
9
,
9
5
2
,
5
1
4
2
0
0
.
0
0
1
9
9
,
9
5
2
,
5
1
4
2
0
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
í
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
K
o
t
a
k
L
i
q
u
i
d
I
n
s
t
i
t
u
t
i
o
n
a
l
P
r
e
m
i
u
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
8
5
0
,
9
3
2
,
2
2
5
2
,
2
6
3
.
3
4
1
,
8
5
0
,
9
3
2
,
2
2
5
2
,
2
6
3
.
3
4
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
S
e
r
i
e
s
í
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
3
8
,
0
0
0
,
0
0
0
1
3
8
.
0
0
1
3
8
,
0
0
0
,
0
0
0
1
3
8
.
0
0
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
S
e
r
i
e
s
2
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
4
,
9
3
3
,
3
0
9
7
5
.
0
0
7
4
,
9
3
3
,
3
0
9
7
5
.
0
0
-
-
K
o
t
a
k
F
l
e
x
i
d
e
b
t
s
c
h
e
m
e
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
5
5
2
,
1
3
7
,
7
5
3
1
,
5
5
9
.
5
1
1
,
5
5
2
,
1
3
7
,
7
5
3
1
,
5
5
9
.
5
1
-
-
K
o
t
a
k
F
l
o
a
t
e
r
L
o
n
g
t
e
r
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
,
6
2
6
,
2
3
4
,
8
5
6
2
,
6
4
7
.
1
9
2
,
6
2
6
,
2
3
4
,
8
5
6
2
,
6
4
7
.
1
9
-
-
K
o
t
a
k
F
l
o
a
t
e
r
L
o
n
g
t
e
r
m
-
G
r
o
w
t
h
1
5
9
,
5
0
7
,
5
2
8
2
3
3
.
0
5
2
,
4
8
3
,
8
2
2
3
.
6
3
2
6
0
,
2
9
7
,
9
9
9
4
0
5
.
7
0
1
6
1
,
9
9
1
,
3
5
0
2
3
6
.
6
7
2
6
0
,
2
9
7
,
9
9
9
4
0
5
.
7
0
K
o
t
a
k
F
l
o
a
t
e
r
S
h
o
r
t
t
e
r
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
0
5
,
4
7
1
,
8
6
1
7
1
3
.
6
7
7
0
5
,
4
7
1
,
8
6
1
7
1
3
.
6
7
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
í
0
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
8
9
,
9
7
5
,
7
0
7
9
0
.
0
0
-
-
8
9
,
9
7
5
,
7
0
7
9
0
.
0
0
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
9
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
9
,
9
6
8
,
8
1
2
8
0
.
0
0
-
-
7
9
,
9
6
8
,
8
1
2
8
0
.
0
0
R
e
l
i
a
n
c
e
-
L
i
q
u
i
d
i
t
y
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
1
4
,
2
5
6
,
4
3
3
1
1
4
.
3
1
1
1
4
,
2
5
6
,
4
3
3
1
1
4
.
3
1
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
f
u
n
d
-
X
I
I
-
S
e
r
i
e
s
4
-
G
r
o
w
t
h
3
0
0
,
0
0
0
,
0
0
0
3
0
0
.
0
0
-
-
-
-
3
0
0
,
0
0
0
,
0
0
0
3
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
-
-
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
1
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
6
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
V
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
V
-
S
e
r
i
e
s
1
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
I
I
-
S
e
r
i
e
s
3
-
G
r
o
w
t
h
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
-
-
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
E
R
I
E
S
4
-
G
r
o
w
t
h
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
a
n
c
e
L
i
q
u
i
d
F
u
n
d
-
C
a
s
h
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
7
,
2
7
5
,
6
5
6
6
3
.
8
1
5
7
,
2
7
5
,
6
5
6
6
3
.
8
1
-
-
R
e
l
i
a
n
c
e
M
e
d
i
u
m
T
e
r
m
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
3
7
0
,
6
1
7
,
7
3
8
6
3
3
.
6
0
3
7
0
,
6
1
7
,
7
3
8
6
3
3
.
6
0
-
-
R
e
l
i
a
n
c
e
M
e
d
i
u
m
T
e
r
m
F
u
n
d
-
G
r
o
w
t
h
1
3
,
1
3
8
,
7
2
9
2
5
.
0
7
-
-
-
-
1
3
,
1
3
8
,
7
2
9
2
5
.
0
7
-
-
R
e
l
i
a
n
c
e
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
I
n
s
t
i
t
u
t
i
o
n
a
l
O
p
t
i
o
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
-
-
-
-
5
,
5
3
6
,
8
5
8
5
5
4
.
4
5
4
,
3
0
7
,
2
0
0
4
3
1
.
3
1
1
,
2
2
9
,
6
5
8
1
2
3
.
1
4
R
e
l
i
a
n
c
e
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
9
5
,
8
7
2
,
3
8
7
2
9
6
.
0
2
-
-
2
9
5
,
8
7
2
,
3
8
7
2
9
6
.
0
2
R
e
l
i
a
n
c
e
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
4
0
1
,
1
8
6
,
2
7
1
4
0
1
.
3
1
2
5
1
,
2
2
9
,
7
8
4
2
5
1
.
3
0
1
4
9
,
9
5
6
,
4
8
7
1
5
0
.
0
1
R
e
l
i
a
n
c
e
m
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
9
9
,
9
6
3
,
0
1
4
1
0
0
.
0
0
-
-
-
-
9
9
,
9
6
3
,
0
1
4
1
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
9
9
,
9
3
0
,
0
2
4
2
0
0
.
0
0
1
9
9
,
9
3
0
,
0
2
4
2
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
6
3
,
6
3
2
,
5
0
7
2
6
4
.
0
1
9
9
,
9
0
8
,
0
8
5
1
0
0
.
0
0
1
6
3
,
7
2
4
,
4
2
2
1
6
4
.
0
1
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
P
l
a
n
C
(
1
5
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
P
l
a
n
F
(
1
3
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
I
I
B
(
1
5
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
2
0
,
0
0
0
,
0
0
0
1
2
0
.
0
0
-
-
-
-
-
-
1
2
0
,
0
0
0
,
0
0
0
1
2
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
I
I
A
(
1
3
M
o
n
t
h
s
)
-
G
r
o
w
t
h
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
-
-
-
-
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
I
P
l
a
n
A
(
1
2
M
o
n
t
h
s
)
-
G
r
o
w
t
h
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
I
P
l
a
n
C
(
3
7
0
D
a
y
s
)
-
D
i
v
i
d
e
n
d
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
g
a
r
e
L
i
q
u
i
d
f
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
f
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
4
9
,
9
6
7
,
0
6
7
5
0
.
0
1
4
9
,
9
6
7
,
0
6
7
5
0
.
0
1
-
-
S
B
I
P
r
e
m
i
e
r
L
i
q
u
i
d
F
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
3
,
9
0
2
,
9
6
1
7
4
.
1
4
-
-
7
3
,
9
0
2
,
9
6
1
7
4
.
1
4
1
3
.
D
e
t
a
i
l
s
o
f
m
o
v
e
m
e
n
t
i
n
i
n
v
e
s
t
m
e
n
t
s
p
u
r
c
h
a
s
e
d
/
s
o
l
d
d
u
r
i
n
g
t
h
e
y
e
a
r
(
c
o
n
t
i
n
u
e
d
)
N
o
t
e
s
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
A
c
c
o
u
n
t
s
F
o
r
t
h
e
Y
e
a
r
E
n
d
e
d
3
1
s
t
M
a
r
c
h
,
2
0
1
1
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
1
9
:
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
89
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
S
B
I
-
S
h
o
r
t
H
o
r
i
z
o
n
D
e
b
t
F
u
n
d
-
U
l
t
r
a
S
h
o
r
t
T
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
7
3
,
1
7
9
,
8
4
7
6
7
3
.
5
8
6
7
3
,
1
7
9
,
8
4
7
6
7
3
.
5
8
-
-
S
B
I
-
S
h
o
r
t
h
o
r
i
z
o
n
d
e
b
t
f
u
n
d
-
U
l
t
r
a
S
h
o
r
t
T
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
G
r
o
w
t
h
6
9
,
8
0
9
,
3
5
2
8
3
.
7
2
-
-
9
8
,
9
6
5
,
6
2
0
1
2
6
.
6
9
6
9
,
8
0
9
,
3
5
2
8
3
.
7
2
9
8
,
9
6
5
,
6
2
0
1
2
6
.
6
9
S
B
I
S
D
F
S
-
1
3
m
o
n
t
h
s
-
G
r
o
w
t
h
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
S
B
I
S
D
F
S
-
3
7
0
D
a
y
s
-
G
r
o
w
t
h
9
0
,
0
0
0
,
0
0
0
9
0
.
0
0
-
-
-
-
-
-
9
0
,
0
0
0
,
0
0
0
9
0
.
0
0
S
B
I
S
D
F
S
-
9
0
D
a
y
s
-
3
7
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
I
n
c
o
m
e
P
o
r
t
f
o
l
i
o
F
u
n
d
S
c
h
e
m
e
A
2
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
1
1
9
,
9
8
8
,
0
0
2
1
2
0
.
0
0
1
1
9
,
9
8
8
,
0
0
2
1
2
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
I
n
c
o
m
e
P
o
r
t
f
o
l
i
o
F
u
n
d
S
c
h
e
m
e
A
3
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
M
a
t
u
r
i
t
y
p
l
a
n
-
S
e
r
i
e
s
2
6
-
S
c
h
e
m
e
A
-
G
r
o
w
t
h
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
T
A
T
A
F
l
o
a
t
e
r
F
u
n
d
-
D
i
v
i
d
e
n
d
-
-
-
-
2
,
2
7
5
,
5
8
8
,
2
4
1
2
,
2
8
3
.
6
9
2
,
2
7
5
,
5
8
8
,
2
4
1
2
,
2
8
3
.
6
9
-
-
T
A
T
A
F
l
o
a
t
e
r
F
u
n
d
-
G
r
o
w
t
h
6
,
0
6
2
,
7
8
2
8
.
3
2
-
-
3
7
8
,
3
2
5
,
0
4
0
5
5
4
.
8
9
6
,
0
6
2
,
7
8
2
8
.
3
2
3
7
8
,
3
2
5
,
0
4
0
5
5
4
.
8
9
T
A
T
A
L
i
q
u
i
d
S
u
p
e
r
H
i
g
h
I
n
v
e
s
t
m
e
n
t
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
1
4
,
2
2
4
,
4
2
0
1
,
5
8
5
.
3
4
1
4
,
2
2
4
,
4
2
0
1
,
5
8
5
.
3
4
-
-
U
T
I
-
S
h
o
r
t
t
e
r
m
i
n
c
o
m
e
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
I
n
c
o
m
e
O
p
t
i
o
n
-
R
e
i
n
v
e
s
t
m
e
n
t
1
9
8
,
7
6
7
,
6
4
1
2
0
0
.
0
0
-
-
1
,
5
9
5
,
5
4
3
1
.
6
1
2
0
0
,
3
6
3
,
1
8
4
2
0
1
.
6
1
-
-
U
T
I
-
F
I
I
F
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
9
9
,
9
8
6
,
0
0
2
1
0
0
.
0
0
9
9
,
9
8
6
,
0
0
2
1
0
0
.
0
0
-
-
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
I
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
9
9
,
9
6
8
,
0
1
0
1
0
0
.
0
0
2
5
,
0
0
0
,
0
0
0
2
5
.
0
1
7
4
,
9
6
8
,
0
1
0
7
4
.
9
9
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
V
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
1
4
9
,
9
8
8
,
0
0
1
1
5
0
.
0
0
-
-
-
-
1
4
9
,
9
8
8
,
0
0
1
1
5
0
.
0
0
-
-
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
4
,
9
6
4
,
0
1
7
7
5
.
0
0
-
-
7
4
,
9
6
4
,
0
1
7
7
5
.
0
0
U
T
I
-
F
i
x
e
d
M
a
t
u
r
i
t
y
P
l
a
n
-
Y
e
a
r
l
y
S
e
r
i
e
s
(
Y
F
M
P
1
1
/
0
9
)
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
U
T
I
-
F
l
o
a
t
i
n
g
R
a
t
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
,
3
7
1
,
5
2
4
6
3
7
.
6
4
6
,
3
7
1
,
5
2
5
6
3
7
.
6
4
-
-
U
T
I
-
F
l
o
a
t
i
n
g
R
a
t
e
F
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
G
r
o
w
t
h
-
-
-
-
3
,
9
5
6
,
4
8
7
4
3
7
.
6
4
-
-
3
,
9
5
6
,
4
8
7
4
3
7
.
6
4
U
T
I
-
L
i
q
u
i
d
C
a
s
h
P
l
a
n
-
D
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
3
,
7
2
8
,
1
4
4
3
8
0
.
0
6
3
,
7
2
8
,
1
4
4
3
8
0
.
0
6
-
-
U
T
I
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
,
8
3
2
,
8
3
1
5
8
3
.
4
1
5
,
8
3
2
,
8
3
1
5
8
3
.
4
1
-
-
U
T
I
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
G
r
o
w
t
h
-
-
-
-
1
8
9
,
7
2
2
2
5
.
0
5
-
-
1
8
9
,
7
2
2
2
5
.
0
5
T
o
t
a
l
3
,
4
3
1
,
4
4
4
,
2
5
8
3
,
7
2
3
.
4
5
2
0
9
,
3
2
0
,
6
5
2
2
4
9
.
8
4
3
4
,
4
9
5
,
8
1
1
,
7
7
0
4
3
,
2
8
1
.
9
9
3
2
,
4
0
5
,
5
5
7
,
7
0
3
3
9
,
5
0
4
.
7
4
5
,
7
3
1
,
0
1
8
,
9
7
7
7
,
7
5
0
.
5
4
P
r
e
v
i
o
u
s
y
e
a
r
2
,
4
2
6
,
7
1
3
,
7
3
7
2
,
9
7
7
.
7
3
-
-
1
3
,
2
2
5
,
0
9
8
,
1
0
9
1
5
,
0
1
8
.
2
9
1
2
,
2
2
0
,
3
6
7
,
5
8
7
1
4
,
2
7
2
.
5
7
3
,
4
3
1
,
4
4
4
,
2
5
8
3
,
7
2
3
.
4
5
*
i
n
c
l
u
d
e
s
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
e
d
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
90
14. Research and development expenditure of `0.29 crore (Previous year `0.29 crore) has been charged to Pro?t and
Loss Account under speci?c heads of accounts, while `Nil (Previous year `Nil) has been incurred as capital cost
for research and development.
15. Employee bene?ts obligations:
De?ned bene?t plans:
The Company ofers its employees de?ned bene?t plans in the form of gratuity schemes. Gratuity Scheme covers
all employees as statutorily required under Payment of Gratuity Act, 1972. The Company has three gratuity
schemes for diferent categories of employees. The Company contributes funds to Life Insurance Corporation of
India and ICICI Prudential Life Insurance Company Limited, which are irrevocable. Commitments are actuarially
determined at the year end. The actuarial valuation is done based on the “Projected Unit Credit” method.
Gains and losses of changed actuarial assumptions are charged to the Pro?t and Loss Account under the head
‘Personnel’.
The net value of the de?ned bene?t commitment is detailed below:
(` in crore)
Particulars 2010-11 2009-10
Fair value of plans 28.81 22.45
Present value of commitment (34.00) (25.58)
Net gratuity liability (5.19) (3.13)
De?ned bene?t commitment
Balance at start of the year 25.58 21.84
Acquired on amalgamation 4.01 -
Current service cost 1.73 1.26
Bene?ts paid (3.15) (1.99)
Interest cost 2.37 1.75
Actuarial (gains)/losses 3.46 2.72
Balance at end of year 34.00 25.58
Plan assets
Balance at start of the year 22.45 17.61
Acquired on amalgamation 3.42 -
Contribution received 3.72 4.23
Bene?ts paid (3.15) (1.99)
Return on scheme assets 2.10 2.23
Actuarial gains/(losses) 0.27 0.37
Balance at end of year 28.81 22.45
The Plan assets of the Company are managed by the Life Insurance Corporation of India and ICICI Prudential
Life Insurance Company Limited and the composition of the Investment relating to these assets is not available
with the Company.
(` in crore)
Return on plan assets 2010-11 2009-10
Expected return on plan assets 2.10 2.23
Actuarial gain/(loss) 0.27 0.37
Actual return on plan assets 2.37 2.60
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
91
Expenses on de?ned bene?t plan recognised in the Pro?t and Loss Account
(` in crore)
Particulars 2010-11 2009-10
Current service cost 1.73 1.26
Actuarial (gains) / losses 3.19 2.35
Expected return on plan assets (2.10) (2.23)
Interest cost 2.37 1.75
Direct payments 0.03 -
Total expenses / (income) accounted in the Pro?t and Loss Account 5.22 3.13
The actuarial calculations used to estimate de?ned bene?t commitments and expenses are based on the
following assumptions which if changed, would afect the de?ned bene?t commitments size, funding
requirements.
Particulars 2010-11 2009-10
Rate on discounting liabilities 8% 8%
Expected salary increase rate 5% & 7% 5% & 7%
Expected rate of return on scheme assets 10% & 9.3% 9% & 9.3%
Withdrawal rates 1.5% 1.5%
Mortality rates LIC (1994-96) Ultimate Table LIC (1994-96) Ultimate Table
The estimates of future salary increases considered in the actuarial valuation, take account of in?ation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.
Experience adjustment
(` in crore)
Particulars 2010-11 2009-10 2008-09 2007-08
Present value of commitment (34.00) (25.58) (21.84) (18.18)
Fair value of the plans 28.81 22.45 17.61 17.00
Surplus / (de?cit) (5.19) (3.13) (4.23) (1.18)
Experience adjustment on plan liabilities 3.28 0.60 2.88 1.11
Experience adjustment on plan assets (1.92) 2.99 (0.04) 1.73
The contributions expected to be made by the Company during the ?nancial year 2011-12 are `5.19 crore.
The above information is actuarially determined.
De?ned Contribution Plans:
The Company ofers its employees bene?ts under de?ned contribution plans in the form of provident fund,
family pension fund and annuity fund. Provident fund, family pension fund and annuity fund cover substantially
all regular employees. Contributions are paid during the year into separate funds under certain statutory /
?duciary type arrangements. While both the employees and the Company pay predetermined contributions
into the provident fund and pension fund, the contribution to annuity fund are made only by the Company. The
contributions are normally based on a certain proportion of the employee’s salary.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
92
A sum of `8.31 crore (Previous year `5.64 crore) has been charged to the Pro?t and Loss Account in this respect,
the components of which are tabulated below:
(` in crore)
Contribution to de?ned contribution plans 2010-11 2009-10
Provident fund and family pension fund 5.59 3.72
Annuity fund 2.72 1.92
8.31 5.64
16. i) Quantitative Information in respect of Iron Ore, Metallurgical Coke and Pig Iron:
Particulars Iron Ore Metallurgical Coke Pig Iron
Quantity Value Quantity Value Quantity Value
(MMT) (` in Crore) (MMT) (` in Crore) (MMT)
(` in Crore)
Installed capacity - - 0.280 N.A. 0.250 N.A.
- - (0.280) N.A. (0.250) N.A.
Opening stock as on 1.4.2010 4.087 263.65 0.009 10.66 - -
(2.536) (131.78) (0.011) (11.67) (-) (-)
Acquired on amalgamation - - - - 0.006 12.38
(-) (-) (-) (-) (-) (-)
Production (Footnote 1) 10.952 805.63 0.263 382.80 0.276 527.53
(11.543) (395.02) (0.263) (339.08) (-) (-)
Purchases (Footnote 1) 4.029 518.81 - - - -
(5.185) (298.80) (-) (-) (-) (-)
Captive consumption 0.312 99.44 0.171 330.41 - -
(-) (-) (-) (-) (-) (-)
Sales 14.368 6,636.43 0.080 141.40 0.266 663.74
(15.177) (4,238.28) (0.265) (356.50) (-) (-)
Closing stock as on 31.3.2011 4.388 226.52 0.021 35.14 0.016 38.58
(4.087) (263.65) (0.009) (10.66) (-) (-)
Footnotes:
1. Net of processing and handling loss on ore handled and processed/reprocessed during the year.
2. The closing stock of ore excludes 0.053 million metric ton (Previous year 0.081 million metric ton)
received on loan basis.
3. Figures in brackets relate to previous year.
4. Quantities are in dry metric tons (DMT).
5. Hitherto, the quantities were stated in wet metric tons (WMT); accordingly the quantities in respect of
previous year have been restated in DMT to conform to current year’s measurement.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
93
ii) Consumption of Raw Materials:
Particulars Quantity Value
(MMT) (` in Crore)
Coal 0.340 355.23
(0.338) (306.47)
Coal tar pitch - -
( - ) (0.06)
Iron Ore (Foot Note 1) 0.107 35.46
( - ) ( - )
Others - 6.66
( - ) ( - )
Total 397.35
(306.53)
Footnotes:
1. Excludes 0.312 million metric ton of Iron Ore used for captive consumption.
2. Figures in brackets relate to previous year.
3. Quantities are in dry metric tons (DMT).
4. Hitherto, the quantities were stated in wet metric tons (WMT); accordingly the quantities in respect of
previous year have been restated in DMT to conform to current year’s measurement.
iii) Services rendered to third parties towards repair of barges and machinery etc. amount to `13.04 crore
(Previous year `23.76 crore)
17. Donations and contributions include payment to the following political parties:
(` in crore)
Particulars 2010-11 2009-10
Bhartiya Janata Party - 0.85
Bhartiya Janata Party (Jharkhand Pradesh) - 0.10
Jharkhand Vikas Morcha - 0.10
Goa Pradesh Congress Committee - 0.30
Maharashtrawadi Gomantak Party - 0.02
Shiv Sena - 0.01
18. CIF Value of Imports and Consumption of spares
(` in crore)
Particulars 2010-11 2009-10
i) Value of imports on CIF basis in respect of
a) Raw materials 509.70 343.78
b) Components and spare parts 17.21 14.11
c) Capital goods 111.17 9.82
ii) Consumption of imported raw materials, stores, spares parts and components 57.59%
(Previous year 61.06%)
369.66 314.58
iii) Consumption of indigenous raw materials, stores, spares parts and components 42.41%
(Previous year 38.94%)
272.27 200.66
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
94
19. Segment Information
As required by Accounting Standard No. 17 on Segment Reporting
i) The Company is collectively organised into three main business segments namely:
- Iron Ore
- Metallurgical coke
- Pig iron
Segments have been identi?ed and reported taking into account the nature of the product and services, the
organisation structure and internal ?nancial reporting system.
ii) Information based on the Primary Segment (Business Segment) (` in crore)
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Revenue
- Sales / Income from Operations
(net of duties and ocean frieght)
6,789.43
(4,275.98)
506.37
(384.35)
673.81
(-)
7,969.61
(4,660.33)
- Other Income 2.67
(3.08)
0.14
(0.17)
0.39
(-)
3.20
(3.25)
6,792.10
(4,279.06)
506.51
(384.52)
674.20
(-)
7,972.81
(4,663.58)
Less : Intersegment Revenue 104.50
(-)
354.78
(-)
0.04
(-)
459.32
(-)
Net Revenue from operations 6,687.60
(4,279.06)
151.73
(384.52)
674.16
(-)
7,513.49
(4,663.58)
Add : Interest Income 173.01
(142.38)
173.01
(142.38)
Add : Dividend 259.92
(66.70)
259.92
(66.70)
Add : Foreign Exchange Gain on Foreign
Currency Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 61.86
(75.21)
61.86
(75.21)
Enterprise revenue 8,008.28
(5,069.78)
Segment Result before tax, interest,dividend and
other non-recurring/unallocable income
3,746.63
(2,275.88)
89.01
(26.78)
141.08
(-)
3,976.72
(2,302.66)
Less: Interest Expenses 36.93
(50.77)
36.93
(50.77)
Less: Foreign Exchange Loss on Foreign
Currency Convertible Bonds
48.78
(-)
48.78
(-)
Add : Interest Income 173.01
(142.38)
173.01
(142.38)
Add : Dividend Income 259.92
(66.70)
259.92
(66.70)
Add : Foreign Exchange Gain on Foreign
Currency Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 61.86
(75.21)
61.86
(75.21)
Pro?t before Taxation 4,385.80
(2,658.09)
Segment Assets 2,350.62
(1,190.67)
384.65
(254.48)
279.36
-
11,188.52
(8,828.64)
14,203.15
(10,273.79)
Segment Liabilities 771.79
(557.95)
358.42
(168.01)
53.38
-
1,430.75
(2,339.12)
2,614.34
(3,065.08)
Capital Expenditure 815.15
(128.17)
3.79
(3.42)
18.35
(-)
-
(-)
837.29
(131.59)
Depreciation 51.68
(48.07)
23.15
(9.31)
8.30
(-)
-
(-)
83.13
(57.38)
Signi?cant Non-Cash Expenses other than
depreciation
0.12
(0.50)
0.07
(9.03)
-
(-)
48.78
(-)
48.97
(9.53)
(Figures in bracket relate to previous year)
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
95
iii) Information based on the Secondary Segment (Geographical Segments):
(` in crore)
Particulars 2010-11 2009-10
Segment revenue:
India 1,250.12 632.59
Outside India 6,263.37 4,030.99
Segment assets:
India 2,617.28 1,222.20
Outside India 397.35 222.95
Capital expenditure:
India 837.29 131.59
Outside India - -
20. i) Managerial remuneration
(` in crore)
Particulars 2010-11 2009-10
Salaries 2.45 2.35
Provident fund 0.16 0.15
Gratuity fund 0.65 0.61
Annuity fund 0.20 0.18
Perquisites 0.65 0.93
Sitting fees 0.07 0.03
Commission [Including `0.42 crore (Previous year `0.28 crore) payable to non-whole time
directors]
1.16 0.84
Total 5.34 5.09
ii) Computation of net pro?t under Section 309(5) read with Section 349 of the Companies Act, 1956.
(` in crore)
Particulars 2010-11 2009-10
Pro?t before taxes 4,385.80 2,658.09
Less: Pro?t on redemption/sale of investments 61.86 75.21
Pro?t per Section 349 4,323.94 2,582.88
Add: Directors’ remuneration 5.34 5.09
Pro?t under Section 198 4,329.28 2,587.97
Commission payable to whole time directors @ 1% of net pro?t restricted to 0.74 0.56
Commission to non-whole time directors @ 1% of net pro?t restricted to 0.42 0.28
21. Foreign Currency Exposures:
The year end foreign currency exposures that were not hedged by a derivative instrument or otherwise are given
below.
i) Amount receivable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in Crore Fx million ` in Crore Fx million
Export of goods and services & Advance to Vendors 396.93 USD 88.86
JPY 2.07
GBP 0.01
218.13 USD 48.3
Bank balance 0.09 CNY 0.12
USD 0.0014
0.16 CNY 0.12
USD 0.02
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
96
ii) Amount payable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` (in Crore) Fx million ` (in Crore) Fx million
Import of goods and services 470.39 USD 105.09 254.76 USD 56.4
JPY 4.23 JPY 5.2
EURO 0.15
Foreign Currency Convertible Bonds and Interest there on 988.31 USD 221.35 1,956.91 USD 433.5
Note: Fx = Foreign currency; USD = US Dollar; JPY = Japanese Yen; GBP = Great Britain Pound; CNY = Chinese Yuan
22. Expenditure incurred in foreign currency (including diference in rate of exchange):
(` in crore)
Particulars 2010-11 2009-10
Analysis of ore 3.86 5.84
Travelling expenses 0.47 0.35
Demurrage 162.45 99.36
Books and periodicals 0.27 0.07
Ocean freight 738.49 670.90
Commission and service charges on sales 0.12 4.63
Insurance 3.35 3.16
Repairs & maintenance – Plant & machinery 5.25 5.36
Port disbursement 0.39 0.58
Salaries & Wages including LTIP 6.17 5.34
China ofce expenses 1.44 1.16
Interest on Foreign Currency Convertible Bonds 20.57 40.72
Others 13.72 21.37
23. Earnings in foreign currency (including diference in rate of exchange):
(` in crore)
Particulars 2010-11 2009-10
On exports of iron ore, met coke and pig iron on FOB basis 6,258.93 4,027.77
Despatch money 17.74 8.73
Carbon credit 4.44 -
24. Remittance of dividends in foreign currency:
Dividend for the year 2010-11 2009-10
Number of Non-resident shareholders 3 2
Number of shares held (in crore) 47.91 41.80
Amount remitted (` in crore) 155.71 94.05
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
97
25. Earnings per share:
Particulars 2010-11 2009-10
Net pro?t after tax (`in crore) 3,432.80 2,118.09
Weighted average no. of equity shares 858,713,539 811,125,264
Nominal value of each equity shares `1 `1
Basic earnings per share (in `) 39.98 26.11
Add: Expenses/ (income) to the Pro?t and Loss Account on account of Foreign Currency
Convertible Bonds (net of tax)
59.81 (61.06)
Pro?t after tax for diluted earning per share 3,492.61 2,057.03
Weighted average number of shares for basic EPS 858,713,539 811,125,264
Add: Efect of potential equity shares on conversion of Foreign Currency Convertible Bonds 30,000,000 1,716,276
Weighted average number of shares for diluted earning per share 888,713,539 812,841,540
Diluted earning per share (in `) 39.30 25.31
26. Related party information:
Related party information as required by AS 18 is given below:
A. Names of the related parties and their relationships:
i) Holding Companies:
- Finsider International Company Limited Holding Company
- Richter Holding Limited
Holding Companies of Finsider International Company Limited
- Westglobe Limited
- Vedanta Resources Plc Ultimate Holding Company
ii) Subsidiaries of the Company:
- Sesa Industries Limited (amalgamated during the year, Refer Note No. 2)
- Sesa Resources Limited (formerly V. S. Dempo & Co. Limited)
- Sesa Mining Corporation Limited (formerly Dempo Mining Corporation Limited)
iii) Fellow Subsidiaries:
With whom transactions have taken place during the year
- Bharat Aluminium Company Limited
- Hindustan Zinc Limited
- Konkola Copper Mines
- The Madras Aluminium Company Limited
- Sterlite Industries (India) Limited
- Sterlite Iron and Steel Company Limited
- Sterlite Technologies Limited
- Twin Star Holdings Limited
- Vedanta Aluminium Limited
- Vizag General Berth Cargo Private Limited
iv) Jointly Controlled Entity:
- Goa Maritime Private Limited
}
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
98
v) Details of Key Management Personnel
Executive directors
- Mr. P. K. Mukherjee
- Mr. A. K. Rai
- Mr. A. Pradhan
- Mr. H. P. U. K. Nair (Retired on 0í.í0.2009)
- Mr. M. D. Phal (Retired on 30.04.2009)
vi) Enterprise in which signi?cant in?uence is exercised by Key Management Personnel
- Sesa Community Development Foundation
B. Transactions with related parties:
a) Details relating to parties referred to in items A (i), (ii) and (iii) above:
(` in crore)
Name of Related Party Nature of Transaction Holding
Companies
Subsidiaries Fellow
Subsidiaries
1) Sales & Services
Bharat Aluminium Company Limited Services rendered -
( - )
-
( - )
0.001
( - )
Hindustan Zinc Limited Sales of metallurgical coke and
services rendered
-
( - )
-
( - )
0.74
(1.08)
Konkola Copper Mines Services rendered -
( - )
-
( - )
0.07
( - )
Madras Aluminium Company Limited Services rendered -
( - )
-
( - )
0.03
( - )
Sterlite Industries (I) Limited Sales of Pig Iron and services
rendered
-
( - )
-
( - )
7.08
( - )
Sesa Industries Limited Sales of metallurgical coke and
services rendered
-
( - )
-
(323.54)
-
( - )
Sterlite Iron and Steel Company Limited Interest on Intercorporate deposits -
( - )
-
( - )
0.90
( - )
Sesa Mining Corporation Limited Services rendered -
( - )
0.08
(0.23)
-
( - )
Sesa Resources Limited Sales of ore and services rendered -
( - )
33.97
(11.32)
-
( - )
Vedanta Aluminum Limited Interest on Intercorporate deposits -
( - )
-
( - )
90.14
(95.21)
Vizag General Berth Cargo Pvt. Limited Services rendered -
( - )
-
( - )
0.04
( - )
2) Purchase & Other services
Bharat Aluminium Co. Limited Administration expenses -
( - )
-
( - )
0.01
( - )
Finsider International Co. Limited Dividend remittance 130.49
(90.34)
-
( - )
-
( - )
Hindustan Zinc Limited Administration expenses -
( - )
-
( - )
0.48
(0.08)
The Madras Aluminium Co. Limited Administration expenses -
( - )
-
( - )
0.003
( - )
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
99
Name of Related Party Nature of Transaction Holding
Companies
Subsidiaries Fellow
Subsidiaries
Sterlite Industries Limited Administration expenses -
( - )
-
( - )
11.02
(9.75)
Sesa Industries Limited Purchases of ore -
( - )
-
(37.01)
-
( - )
Sterlite Technologies Limited Administration expenses -
( - )
-
( - )
0.02
(0.14)
Sesa Mining Corporation Limited Purchases of ore and other
services
-
( - )
25.21
( - )
-
( - )
Sesa Resources Limited Purchases of ore and other services -
( - )
49.92
(26.90)
-
( - )
Talwandi Sabo Power Limited Administration expenses -
( - )
-
( - )
-
(0.03)
Twin Star Holdings Limited Dividend remittance 10.81
( - )
-
( - )
-
( - )
Vedanta Resources Plc. Administration expenses 5.86
(5.34)
-
( - )
-
( - )
Vedanta Aluminium Limited Administration expenses -
( - )
-
( - )
2.56
(1.25)
West Globe Limited Dividend remittance 14.41
(3.72)
-
( - )
-
( - )
3) Inter Corporate Deposits
Sterlite Iron & Steel Company Limited -
( - )
-
( - )
26.71
( - )
Vedanta Aluminium Limited -
( - )
-
( - )
1,000.00
(1,000.00)
4) Preferential allotment of equity shares
Twin Star Holdings Limited -
( - )
-
( - )
-
(537.24)
5) Bad Debts Written Of -
( - )
-
( - )
-
( - )
6) Outstanding receivables/payables (-)
Hindustan Zinc Limited -
( - )
-
( - )
-
(-0.04)
Sterlite Industries (I) Limited -
( - )
-
( - )
-1.09
(-0.96)
Sterlite Iron and Steel Company Limited -
( - )
-
( - )
0.90
( - )
Sesa Resources Limited -
( - )
9.68
(- 13.78)
-
( - )
Sesa Mining Corporation Limited -
( - )
-4.06
(0.05)
-
( - )
Sterlite Technologies Limited -
( - )
-
( - )
-
( -0.01 )
Vedanta Aluminium Limited -
( - )
-
( - )
-0.52
( -0.64 )
Vedanta Resources Plc. -7.46
( -6.45)
-
( - )
-
( - )
(Figures in brackets relate to previous year.)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
100
b) Details relating to persons referred to in item A (v) above:
(` in crore)
Remuneration (Executive Directors) 2010-11 2009-10
Mr. P. K. Mukherjee 2.41 1.73
Mr. A. K. Rai 1.29 1.10
Mr. A. Pradhan 1.00 0.86
Mr. H. P. U .K. Nair (Retired on 0í.í0.2009) 0.15 0.76
Mr. M. D. Phal (Retired on 30.04.2009) - 0.34
4.85 4.79
Sale of Assets 2010-11 2009-10
Mr. H. P. U .K. Nair - 0.04
Outstanding receivables/(payables) 2010-11 2009-10
Mr. P. K. Mukherjee (0.74) (0.56)
c) Details relating to persons referred to in item A (vi) above.
(` in crore)
Particulars 2010-11 2009-10
Donation 3.29 3.53
Recovery – rent and electricity charges - 0.02
d) Additional information required as per the Listing Agreement:
(` in crore)
Particulars 2010-11 2009-10
Outstanding as at
31st March, 2011
Maximum
amount
outstanding
during the year
Outstanding as at
31st March, 2010
Maximum
amount
outstanding
during the year
Inter-corporate deposits – Dues from fellow subsidiary
Vedanta Aluminium Limited 1,000.00* 1,000.00 1,000.00 1,000.00
Sterlite Iron and Steel Company Limited 26.71** 27.61 - -
* Inter-corporate deposits have been placed at an interest rate of 8% from April 2010 to September 2010, 9%
from October 2010 to December 2010 and 11% p.a. from January 2011 to March 2011 and are secured against
a corporate guarantee from Vedanta Resources Plc., the ultimate holding company. As no cash and cash
equivalents were involved in the roll-over of this Inter-corporate deposit, the same has been excluded from
the Cash Flow Statement.
** Inter-corporate deposits have been placed at an interest rate of 8%.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
101
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
27. The ultimate holding company viz, Vedanta Resources Plc, (“Vedanta”) ofers equity-based award plans to its
employees, ofcers and directors based on the performance conditions as set out in the scheme, duly approved
by the board of directors and by the shareholders of Vedanta on 24th December, 2003 and 20th January, 2004
respectively. The performance condition attached to outstanding awards under the Long Term Incentive Plan
(LTIP) is that of Vedanta’s performance, measured in terms of Total Shareholder Return (“TSR”) compared over a
three year period or such period as the Board of Vedanta may determine with the performance of the companies
as de?ned in the scheme from the date of grant. Under this scheme, initial awards under the LTIP were granted
in February 2004 with further awards being made in June 2004, November 2004, February 2006, November
2007, February 2009, August 2009 and January 2010.
The fair values were calculated using a Monte Carlo model with suitable modi?cations to allow for the speci?c
performance conditions of the LTIP. The inputs to the model include the share price at date of grant, exercise
price, expected volatility, expected dividends and the risk free rate of interest. A progressive dividend growth
policy is assumed in all fair value calculations. Expected volatility has been calculated using historical share
prices over the period to date of grant that is commensurate with the performance period of the option. The
share prices of the mining companies in the Adapted Comparator Group have been modelled based on historical
price movements over the period to date of grant which is also commensurate with the performance period for
the option. The history of share prices is used to determine the volatility and correlation of share prices for the
companies in the Adapted Comparator Group and is needed for the Monte Carlo simulation of their future TSR
performance relative to the Company’s TSR performance. All options are assumed to be exercised six weeks after
vesting.
The awards are indexed to and settled in Vedanta shares. The awards provide for a ?xed exercise price
denominated in Vedanta’s functional currency at 10 US cents per share. Vedanta is obligated to issue the shares.
On the grant date, fair value of the awards is recovered by Vedanta from the Company to the extent the awardees
have been deployed at the Company.
Accordingly, Vedanta, on the basis of fair value of options granted to such employees charged a proportionate
cost to the Company in the amount of ` 5.86 crore (Previous year ` 5.34 crore) which is charged to the Pro?t and
Loss Account under the head “Salaries, Wages, bonus and allowances” in Schedule 16 to the ?nancial statements.
Vedanta has obtained an overall valuation of the options granted by it to the awardees. Information related to
options granted to the eligible resources deployed at the Company is not readily available and accordingly the
movements in options have not been disclosed.
28. “Other current assets” comprise interest accrued on term deposits.
29. Previous year’s ?gures have been regrouped and rearranged wherever necessary to conform to current year’s
classi?cation.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
102
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
I) Registration Details:
Registration No. 44/G
State Code 24
Balance Sheet Date 31.3.2011
II) Capital Rose during the year: (` in crore)
Public Issue NIL
Rights Issue NIL
Bonus Issue NIL
Private Placement NIL
III) Position of Mobilisation & Deployment of Funds: (` in crore)
Total Liabilities 12,623.23
Total Assets 12,623.23
Sources of Funds:
Paid-up Capital 86.91
Reserves & Surplus 11,501.90
Secured Loans 3.31
Unsecured Loans 968.01
Deferred Tax liability 63.10
Application of Funds:
Net Fixed Assets 1,414.02
Investments 9,463.81
Net Current Assets 1,745.40
Accumulated Losses NIL
IV) Performance of Company: (` in crore)
Turnover 8,008.28
Total Expenditure 3,622.48
Pro?t before Tax 4,385.80
Pro?t after Tax 3,432.80
Basic Earning Per Share (in `) 39.98
Diluted Earning Per Share (in `) 39.30
Dividend rate (%) 350.00
V) Generic Names of Principal Products/Services of Company (As per monetary terms)
Item Code No. (ITC Code) 26011100 89011004 27040009 72011000
Product Description Iron Ore Vessels Metallurgical Coke Low Phosphorous
Foundry Grade Pig
Iron
Balance Sheet Abstract and Company’s General Business Pro?le
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
103
Sesa Goa Limited Ten Year Record
(` in crore, except as stated)
Year ending 31st March
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fixed Assets
174.15 183.67 194.74 287.45 329.05 398.85 413.94 506.19 580.16 1,414.02
Investments
68.59 58.98 66.95 345.96 516.16 867.81 2,000.44 3,019.68 5,478.64 9,463.81
Net Current Assets
188.80 169.09 162.92 156.40 296.54 291.80 430.25 1,046.35 3,134.91 1,745.40
Total Capital Employed
371.19 355.55 379.27 734.32 1,084.13 1,506.36 2,791.13 4,517.78 9,124.90 12,556.82
Shareholder’s Equity
231.93 238.93 315.51 724.25 1,084.13 1,506.36 2,791.13 4,517.78 7,208.71 11,588.81
Sales & Other Income
270.31 362.78 573.21 1,423.84 1,734.76 2,049.44 3,672.41 4,996.23 5,069.78 8,008.28
Pro?t Before Tax
23.29 17.99 142.78 687.42 807.08 899.85 2,236.94 2,630.70 2,658.09 4,385.80
Tax for the year
7.70 5.40 44.00 225.04 267.68 293.44 744.94 688.21 540.00 953.00
Pro?t After Tax
15.59 12.58 98.78 462.37 539.40 606.41 1,492.00 1,942.49 2,118.09 3,432.80
Dividends/Dividend Tax
5.90 5.55 22.20 100.93 179.53 182.45 207.23 207.23 315.96 376.26
Retained Earnings
9.69 7.03 76.58 361.44 359.87 423.96 1,284.77 1,735.26 1,802.13 3,056.54
Earnings Per Share (in `)
7.92 6.39 50.19 117.47 137.04 154.06 379.06 24.68* 26.11* 39.98*
Dividends %
30.00 25.00 100.00 225.00 400.00 400.00 450.00 225.00 325.00 350.00
No. of Shareholders
37,479 30,460 29,948 61,313 43,418 43,032 90,875 170,222 213,086 267,818
Notes :
1. Figures for the previous years have been regrouped wherever necessary to make them comparable to those of the current year. Current years ?gures are
subject to approval of shareholders at Annual General Meeting including dividend proposed.
2. Number of shareholders shown is as on the date of Annual General Meeting of the relevant years except for the year 2011.
3. The dividend % for year ending 31st March, 2005 is the efective rate on post bonus share capital (Bonus Issue @ 1:1 after interim dividend paid @ 50%).
4. During the ?nancial 2008-09, shares were sub-divided from face value of ` 10/- to face value of ` 1/- and bonus shares in ratio of 1:1 were issued. The Dividend
for 2008-09, 2009-10 and 2010-11 is post split and bonus.
5. * EPS on nominal value of ` 1/-.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
104
Statement Pursuant to Section 212 of the Companies Act, 1956
Relating to Subsidiary Companies (` in Crore except as stated)
Sr.
No.
Particulars Sesa Resources
Limited
Sesa Mining
Corporation Limited
1. Financial years of the Subsidiary Company ended on 31st March, 2011 31st March, 2011
2. Shares of the Subsidiary Company held on the abovedate and extent of holding
a) Equity Shares 1,250,000 1,150,000
b) Extent of Holding 100% 100%
3. The net aggregate amount of the Subsidiaries pro?t/(loss) so far as it is concerned
with the members of the Sesa Goa Limited
i) Not dealt within the holding company’s accounts (Refer Note No.1)
a) For the ?nancial year of the Subsidiary 775.60 14.05
b) For the previous ?nancial years of the Subsidiary/since it became the
Holding company’s subsidiary
1,196.17 25.44
ii) Dealt within the holding company’s accounts
a) For the ?nancial year of the Subsidiary Nil Nil
b) For the previous ?nancial years of the Subsidiary/since it became the
Holding company’s subsidiary
Nil Nil
4. Material changes, if any between the end of the ?nancial year of the subsidiary
company and that of the Holding Comapny
NA NA
5. Additional information on Subsidiary Companies
Share Capital 1.25 11.50
Reserves 1,415.98 112.74
Total Assets 1,451.52 124.24
Total Liabilities 1,451.52 124.24
Investment(except incase of investment in subsidiaries) 1,037.09 12.12
Turnover 1,815.41 180.47
Pro?t before Taxation 1,152.84 21.05
Provision for Taxation 377.24 7.00
Pro?t after Taxation and write back 775.60 14.05
Proposed Dividend (including Dividend Distribution Tax thereon) - -
Notes:
1. Your Company had two subsidiary companies as on 31st March, 2011.
2. Sesa Mining Corporation Limited is a subsidiary of Sesa Resources Limited, which is 100% subsidiary of the Company.
3. The Ministry of Corporate Afairs, Government of India, vide General Circular No. 2 and 3 dated 8th February,
2011 and 21st February, 2011 respectively has granted a general exemption from compliance with section 212 of
the Companies Act, 1956, subject to ful?llment of conditions stipulated in the circular. The Company has
satis?ed the conditions stipulated in the circular and hence is entitled to the exemption.
4. The Annual Accounts for 2010-11 for all subsidiaries are available at Company’s Registered Ofce. Any investor either of
Holding Company or any Subsidiary Company can seek any information at any point of time by making a request in writing
to the Company Secretary of the Company at Sesa Goa Limited, Sesa Ghor, 20 EDC Complex, Patto, Panaji-Goa 403 001 to
obtain a copy of the ?nancial statements of the subsidiary companies. The Subsidiaries Accounts will also be available on
the Website of the Company www.sesagoa.com.
5. The consolidated ?nancial statements, in terms of Clause 32 of the Listing Agreement and in terms of Accounting Standards
21 as prescribed by Companies (Accounting Standards) Rules, 2006 issued by Ministry of Corporate Afairs vide noti?cation
no. G.S.R. 739 (E) dated 7th December, 2006 also form part of this Annual Report.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
105
Auditors’ Report
To the Board of Directors of Sesa Goa Limited
1. We have audited the attached Consolidated Balance Sheet of SESA GOA LIMITED (“the Company”) and its
subsidiaries (the Company and its subsidiaries constitute “the Group”) as at 31st March, 2011, the Consolidated
Pro?t and Loss Account and the Consolidated Cash Flow Statement of the Group for year ended on that date,
both annexed thereto. These ?nancial statements are the responsibility of the Company’s management and have
been prepared by the management on the basis of separate ?nancial statements and other ?nancial information
regarding components. Our responsibility is to express an opinion on these Consolidated Financial Statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the ?nancial statements. An audit also includes assessing the accounting
principles used and the signi?cant estimates made by the Management, as well as evaluating the overall ?nancial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We report that the Consolidated Financial Statements have been prepared by the Company in accordance
with the requirements of Accounting Standard 21 (Consolidated Financial Statements) as noti?ed under the
Companies (Accounting Standards) Rules, 2006.
4. Based on our audit and on consideration of the separate audit reports on the individual ?nancial statements of
the Company and its subsidiaries and to the best of our information and according to the explanations given
to us, in our opinion, the Consolidated Financial Statements give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Consolidated Balance Sheet, of the state of afairs of the Group as at 31st March, 2011;
(ii) in the case of the Consolidated Pro?t and Loss Account, of the pro?t of the Group for the year ended on
31st March, 2011; and
(iii) in the case of the Consolidated Cash Flows Statements, of the cash ?ows of the Group for the year ended on
31st March, 2011.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
106
Consolidated Balance Sheet of Sesa Goa Limited
and it's Subsidiary Companies
As at 31st March, 2011
Particulars Sch.
No.
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
SOURCES OF FUNDS
Shareholders' funds
Share capital 1 86.91 83.10
Reserves and surplus 2 12,723.52 7,834.61
12,810.43 7,917.71
Minority interest - 43.29
Loans funds
Secured loans 3 31.44 44.37
Unsecured loans 4 968.01 1,916.19
999.45 1,960.56
Deferred tax liability (net) 5 68.21 75.02
Total 13,878.09 9,996.58
APPLICATION OF FUNDS
Fixed assets 6
Gross block 3,064.83 2,751.04
Less : Depreciation 649.19 574.08
Net block 2,415.64 2,176.96
Capital work-in-progress 728.66 78.74
3,144.30 2,255.70
Investments 7 8,799.80 4,564.85
Current assets, loans and advances
Inventories 8 743.75 502.54
Sundry debtors 9 683.02 338.12
Cash and bank balances 10 897.02 2,391.84
Other current assets 14.14 39.60
Loans and advances 11 1,321.65 1,145.52
3,659.58 4,417.62
Less: Current liabilities and provisions
Current liabilities 12 1,294.64 830.18
Provisions 13 430.95 411.41
1,725.59 1,241.59
Net Current Assets 1,933.99 3,176.03
Total 13,878.09 9,996.58
Notes to accounts 19
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
107
Consolidated Pro?t and Loss Account of Sesa Goa Limited
and its Subsidiary Companies
For the Year Ended 31st March, 2011
Particulars Sch.
No.
Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
INCOME
Sales of ore/ pig iron/ metallurgical coke 10,150.91 6,654.30
Less: Excise duty 63.65 44.34
10,087.26 6,609.96
Less: Ocean freight 943.16 812.16
9,144.10 5,797.80
Hire of ship and transhipper 1.37 5.25
Services and other proceeds 14 59.65 55.24
Miscellaneous income 15 539.89 425.97
9,745.01 6,284.26
EXPENDITURE
Production and operational expenses 16 3,866.21 2,615.86
Administration expenses 17 132.59 93.80
Interest and other ?nance charges 18 90.14 55.51
Depreciation 96.38 74.50
4,185.32 2,839.67
Pro?t before tax 5,559.69 3,444.59
Less: Provision for taxation
Current tax 1,344.22 799.92
Prior year taxes (0.17) 1.24
Deferred tax (6.81) 4.39
1,337.24 805.55
Pro?t after taxes 4,222.45 2,639.04
Less: Minority interest - 9.91
Pro?t attributable to equity shareholders 4,222.45 2,629.13
Add: Balance brought forward 966.70 253.53
Add: Pro?t for the period 1st April, 2005 to 31st March, 2010 on
acquisition of minority interest and other adjustments (Refer
Note No. 2 of Schedule 19)
38.77 -
5,227.92 2,882.66
APPROPRIATIONS
Proposed dividend 304.18 270.06
Dividend Tax 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency Convertible Bonds
converted during the year (inclusive of dividend tax of `0.51 crore)
9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited on
amalgamation (inclusive of dividend tax of `1.83 crore)
12.88 -
General reserve 2,500.00 1,600.00
2,876.26 1,915.96
Surplus carried to reserves and surplus 2,351.66 966.70
Earnings per share - Basic (Refer Note No. 15 of Schedule 19) 49.17 32.41
- Diluted (Refer Note No. 15 of Schedule 19) 48.17 31.62
Nominal value per share 1.00 1.00
Notes to accounts 19
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
108
Consolidated Cash Flow Statement
For the year ended 31st March, 2011
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net pro?t before tax 5,559.69 3,444.59
Adjustments for:
Depreciation 96.38 74.50
Interest / dividend (net) (432.29) (170.13)
(Pro?t) / loss on sale of ?xed assets (net) (0.86) (0.18)
(Pro?t) / loss on redemption of mutual fund investments (net) (62.16) (75.30)
Provision for doubtful debts 0.07 0.02
Provision for doubtful debts written back - (0.03)
Provision for doubtful advances 0.12 0.50
Provision for claim under litigation - 9.03
Assets written of - 0.09
Unrealised exchange (gain) / loss 44.01 (126.54)
Operating pro?t before working capital changes 5,204.96 3,156.55
Adjustments for:
Trade and other receivables (443.93) (39.41)
Inventories (235.43) (160.96)
Trade payables 375.64 379.49
Cash generated from operations 4,901.24 3,335.67
Taxes paid (1,367.76) (764.35)
NET CASH FROM OPERATING ACTIVITIES 3,533.48 2,571.32
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of ?xed assets (988.69) (149.52)
Proceeds from sale of ?xed assets 4.55 0.57
Acquisition of subsidiaries - (1,713.24)
(Purchase) / redemption of current investments (4,130.86) (1,364.30)
Bank deposits having original maturity over three months 1,654.41 (2,350.01)
Interest received 198.82 103.38
Dividend received 297.05 79.00
NET CASH USED IN INVESTING ACTIVITIES (2,964.72) (5,394.12)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
109
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
C. CASH FLOW FROM FINANCING ACTIVITIES :
Issue of equity shares - 537.24
Issue of Foreign Currency Convertible Bonds - 2,380.58
Inter Corporate Deposits (26.71) -
Loans repaid (6.63) (23.02)
Interest paid (58.25) (6.25)
Dividend paid and dividend tax (328.14) (206.44)
NET CASH (USED IN) / FROM FINANCING ACTIVITIES (419.73) 2,682.11
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 149.03 (140.69)
Cash and cash equivalents - opening balance 33.69 14.07
- on acquisition - 160.31
Cash and cash equivalents - closing balance 182.72 33.69
Footnotes:
1. Cash and bank balances as per Schedule 10 897.02 2,391.84
Less: Bank deposits having original maturity over three months (699.31) (2,353.71)
Less: Unpaid dividend account (14.99) (4.44)
Cash and cash equivalents as per the cash ?ow statement 182.72 33.69
2. Equity shares issued to minority interest in Sesa Industries Limited consequent to its amalgamation with the Parent have not
been considered in the cash ?ow statement, being a non cash transaction (Refer Note No. 2 of Schedule 19).
3. Foreign Currency Convertible Bonds converted into equity shares have not been considered in the cash ?ow statement, being
a non cash transaction (Refer Note No. 7 of Schedule 19).
4. Figures in brackets represent out?ows.
5. For notes to accounts refer Schedule 19.
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
110
Schedule 1 : Share Capital
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Authorised
1,000,000,000 (Previous year 1,000,000,000) equity shares of `1 each 100.00 100.00
Issued and Subscribed
869,101,423 (Previous year 830,961,802) equity shares of `1 each fully
paid-up
86.91 83.10
Total 86.91 83.10
Out of the above shares:
? 40í,496,480 (Previous year 40í,496,480) shares held by Finsider International Co. Ltd. U.K., the holding Company, a subsidiary of
Vedanta Resources Plc. the ultimate holding company.
? 44,S4S,íS9 (Previous year S9,098,íS9) shares held by West Globe Limited Mauritius, a subsidiary of Vedanta Resources Plc.
? í9,250,000 (Previous year í9,250,000) shares allotted as fully paid-up shares pursuant to a contract without payment being
received in cash, consequent to amalgamation of erstwhile Mingoa Private Limited with the Company with efect from 1-4-1979.
? 685,í89,S00 (Previous year 685,í89,S00) bonus shares allotted as fully paid-up shares pursuant to capitalisation of reserves and
share premium account.
? SS,274,000 (Previous year SS,274,000) shares allotted as fully paid-up shares on a preferential basis to Twinstar Holdings Limited,
a subsidiary of Vedanta Resources Plc.
? S9,í88,í59 (Previous year í0,447,402) shares allotted as fully paid-up shares on conversion of 2,8S2 (Previous year 755) Foreign
Currency Convertible Bonds.
? 9,S98,864 shares allotted during the year as fully paid-up shares to shareholders of the erstwhile Sesa Industries Limited for
consideration other than cash, pursuant to the Scheme of amalgamation. (Refer Note No. 2 of Schedule 19)
Schedule 2 : Reserves and Surplus
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Share premium account
As per last balance sheet 875.34 -
Add: Amount received on preferential allotment of equity shares - 533.91
Add: Amount received upon conversion of Foreign Currency
Convertible Bonds into equity shares
994.08 361.36
Less: Expenses on issue of Foreign Currency Convertible Bonds - 19.93
1,869.42 875.34
Capital reserve
As per last balance sheet 0.25 0.25
Capital reserve on consolidation
As per last balance sheet - -
Add: Arising on acquisition of minority interest consequent to
amalgamation of Sesa Industries Limited with the Parent
(Refer Note No. 2 of Schedule 19)
9.87 -
9.87 -
General reserve
As per last balance sheet 5,992.32 4,392.32
Add: Transfer from pro?t and loss account 2,500.00 1,600.00
8,492.32 5,992.32
Hedging reserve
As per last balance sheet - (9.08)
Add: Amount adjusted on settlement of hedge contracts - 13.76
Less: Deferred tax impact on contracts - (4.68)
- -
Pro?t and Loss Account
As per annexed account 2,351.66 966.70
Total 12,723.52 7,834.61
Schedules Annexed to and Forming Part of the Balance Sheet
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
111
Schedule 3 : Secured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
From banks
Cash credit 3.31 9.61
(Secured against hypothecation of ore stocks, consumables stores,
book debts and lodgement of letter of credit)
Term loan 18.75 25.28
(Secured by speci?c charge on transfer vessel)
[Due within a year `6.25 crore (Previous year `6.32 crore)]
From others
Term Loan 9.38 9.48
(Secured against future export proceeds)
[Due within a year `9.38 crore (Previous year `Nil)]
Total 31.44 44.37
Schedule 4 : Unsecured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Foreign Currency Convertible Bonds 968.01 1,916.19
(Refer Note No. 7 of Schedule 19)
Total 968.01 1,916.19
Schedule 5 : Deferred Tax Liability
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Deferred tax liabilities
on temporary timing diferences 81.09 83.39
- in respect of depreciation allowance
Deferred tax assets
- in respect of compensated absence 6.10 6.04
- others 6.78 2.33
12.88 8.37
Net deferred tax liability 68.21 75.02
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
112
S
c
h
e
d
u
l
e
s
A
n
n
e
x
e
d
t
o
a
n
d
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
B
a
l
a
n
c
e
S
h
e
e
t
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
6
:
F
i
x
e
d
A
s
s
e
t
s
P
a
r
t
i
c
u
l
a
r
s
O
r
i
g
i
n
a
l
C
o
s
t
D
e
p
r
e
c
i
a
t
i
o
n
/
A
m
o
r
t
i
s
a
t
i
o
n
N
e
t
V
a
l
u
e
O
p
e
n
i
n
g
a
s
a
t
1
s
t
A
p
r
i
l
,
2
0
1
0
A
d
d
i
t
i
o
n
O
n
D
e
d
u
c
t
i
o
n
s
C
l
o
s
i
n
g
a
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
0
F
o
r
t
h
e
y
e
a
r
O
n
D
e
d
u
c
t
i
o
n
s
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
0
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
T
a
n
g
i
b
l
e
A
s
s
e
t
s
M
i
n
i
n
g
l
e
a
s
e
s
2
8
.
7
0
-
-
2
8
.
7
0
1
6
.
5
9
4
.
6
0
-
2
1
.
1
9
7
.
5
1
1
2
.
1
1
M
i
n
i
n
g
c
o
n
c
e
s
s
i
o
n
s
0
.
6
8
-
-
0
.
6
8
0
.
6
5
-
-
0
.
6
5
0
.
0
3
0
.
0
3
L
a
n
d
p
l
o
t
s
(
N
o
t
e
N
o
.
1
)
3
0
.
4
7
1
5
4
.
1
8
-
1
8
4
.
6
5
0
.
0
5
0
.
0
3
-
0
.
0
8
1
8
4
.
5
7
3
0
.
4
2
R
o
a
d
a
n
d
b
u
n
d
e
r
s
7
.
2
0
2
.
8
7
-
1
0
.
0
7
2
.
0
4
0
.
1
7
-
2
.
2
1
7
.
8
6
5
.
1
6
B
u
i
l
d
i
n
g
s
6
4
.
8
4
6
.
3
8
-
7
1
.
2
2
1
4
.
4
0
1
.
7
6
-
1
6
.
1
6
5
5
.
0
6
5
0
.
4
4
P
l
a
n
t
a
n
d
m
a
c
h
i
n
e
r
y
8
8
9
.
7
5
1
3
6
.
7
5
2
2
.
8
3
1
,
0
0
3
.
6
7
4
2
1
.
7
1
7
4
.
3
4
1
9
.
2
9
4
7
6
.
7
6
5
2
6
.
9
1
4
6
8
.
0
4
A
i
r
c
r
a
f
t
(
N
o
t
e
N
o
.
2
)
1
.
4
6
-
-
1
.
4
6
0
.
3
8
0
.
0
8
-
0
.
4
6
1
.
0
0
1
.
0
8
V
e
h
i
c
l
e
s
1
8
.
0
1
4
.
0
2
2
.
0
2
2
0
.
0
1
9
.
7
6
2
.
6
8
1
.
8
6
1
0
.
5
8
9
.
4
3
8
.
2
5
R
i
v
e
r
?
e
e
t
6
2
.
9
6
1
3
.
5
6
-
7
6
.
5
2
2
1
.
2
9
2
.
0
6
-
2
3
.
3
5
5
3
.
1
7
4
1
.
6
7
S
h
i
p
(
N
o
t
e
N
o
.
3
)
1
6
0
.
8
8
0
.
6
8
0
.
0
1
1
6
1
.
5
5
8
2
.
1
1
8
.
1
0
0
.
0
1
9
0
.
2
0
7
1
.
3
5
7
8
.
7
7
F
u
r
n
i
t
u
r
e
a
n
d
?
t
t
i
n
g
s
1
1
.
5
5
3
.
9
6
0
.
1
1
1
5
.
4
0
3
.
9
5
1
.
2
0
0
.
1
1
5
.
0
4
1
0
.
3
6
7
.
6
0
I
n
t
a
n
g
i
b
l
e
A
s
s
e
t
s
G
o
o
d
w
i
l
l
o
n
c
o
n
s
o
l
i
d
a
t
i
o
n
1
,
4
7
4
.
5
4
-
-
1
,
4
7
4
.
5
4
1
.
1
5
-
-
1
.
1
5
1
,
4
7
3
.
3
9
1
,
4
7
3
.
3
9
C
o
m
p
u
t
e
r
s
o
f
t
w
a
r
e
-
1
6
.
3
6
-
1
6
.
3
6
-
1
.
3
6
-
1
.
3
6
1
5
.
0
0
-
T
o
t
a
l
2
,
7
5
1
.
0
4
3
3
8
.
7
6
2
4
.
9
7
3
,
0
6
4
.
8
3
5
7
4
.
0
8
9
6
.
3
8
2
1
.
2
7
6
4
9
.
1
9
2
,
4
1
5
.
6
4
2
,
1
7
6
.
9
6
P
r
e
v
i
o
u
s
y
e
a
r
8
8
6
.
3
4
1
,
8
8
1
.
7
2
1
7
.
0
2
2
,
7
5
1
.
0
4
3
4
2
.
2
4
2
4
8
.
3
4
1
6
.
5
0
5
7
4
.
0
8
2
,
1
7
6
.
9
6
C
a
p
i
t
a
l
w
o
r
k
-
i
n
-
p
r
o
g
r
e
s
s
C
o
n
s
t
r
u
c
t
i
o
n
s
i
n
p
r
o
g
r
e
s
s
(
N
o
t
e
N
o
.
4
)
5
4
7
.
9
1
3
7
.
8
9
C
a
p
i
t
a
l
a
d
v
a
n
c
e
s
1
8
0
.
7
5
4
0
.
8
5
T
o
t
a
l
7
2
8
.
6
6
7
8
.
7
4
N
o
t
e
s
:
1
.
L
a
n
d
P
l
o
t
s
i
n
c
l
u
d
e
u
n
d
e
r
P
e
r
p
e
t
u
a
l
L
e
a
s
e
`
1
.
9
9
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
1
.
9
9
c
r
o
r
e
)
2
.
R
e
p
r
e
s
e
n
t
s
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
P
6
8
C
A
i
r
c
r
a
f
t
.
3
.
I
n
c
l
u
d
e
s
`
3
6
.
4
9
c
r
o
r
e
,
b
e
i
n
g
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
T
r
a
n
s
h
i
p
p
e
r
V
e
s
s
e
l
n
a
m
e
d
“
G
o
a
n
P
r
i
d
e
”
.
4
.
A
m
o
u
n
t
i
n
c
l
u
d
e
s
`
4
.
5
5
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
0
.
1
7
c
r
o
r
e
)
i
n
t
e
r
e
s
t
c
a
p
i
t
a
l
i
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
113
Schedule 7 : Investments
Particulars
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Current Investments (at lower of cost and market value)
Non-trade, unquoted:
In Mutual Funds
Birla Floating Rate Fund - Long Term - Institutional - Growth - 100.00
Birla Interval Income Fund - Institutional Quarterly Interval Plan - Series II - Dividend - 200.00
Birla Interval Income Fund - Institutional Quarterly Interval Plan - Series I - Dividend - 100.00
Birla Short Term FMP Series 4 - Dividend Payout 125.00 -
Birla Short Term Opportunity Fund - Dividend Payout 509.90 -
Birla Sun Life Fixed Term Plan - Institutional Series CD ( 370 Days ) - Growth Option 50.00 50.00
Birla Sun Life Cash Plus Fund 40.11 -
Birla Sun Life Savings Fund - Institutional Growth - 82.06
Birla Sunlife Ultra Short Term Fund - Institutional - Growth 340.09 -
Canara Robeco Floating rate ST- Growth 88.04 -
Canara Robeco Treasury Advantage Super Institutional Fund - Dividend 40.00 -
Canara Robeco Treasury Advantage Super Institutional Fund - Growth Option 396.27 51.70
DSP BlackRock FMP - 3M Series 27 - Dividend 100.00 -
DSP BlackRock Money Manager Fund - Institutional - Growth 202.72 -
HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Growth 41.55 298.26
HDFC Floating Rate Income Fund - Short Term Plan - Whole - Growth 120.33 -
HDFC FMP 370 Days 2010 (2) - Dividend Payout 35.00 -
HDFC FMP 370 Days June 2010 (1) - Growth 25.00 -
HDFC FMP 370 Days June 2010 (2) - Dividend Payout 35.00 -
HDFC Quarterly Interval Fund - Plan C - Dividend Payout - 65.00
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth Option - 20.00
ICICI Prudential MF - Flexible Income Plan - Institutional - Daily Dividend 150.02 -
ICICI Prudential - Flexible Income Plan Premium - Growth 64.56 68.22
ICICI Prudential Floating Rate - Plan D - Growth 172.11 -
ICICI Prudential - Ultra Short Term Plan Super Premium - Growth Option - 208.92
ICICI Prudential FMP Series 51 - 1 Year Plan B - Growth Option 20.00 20.00
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth 20.00 -
ICICI Prudential Interval Fund II - Quarterly Interval Plan Institutional - Dividend 50.00 -
ICICI Prudential Interval V Monthly Interval Plan - Dividend Payout 52.00 -
ICICI Prudential Medium Term Premium Plus - Dividend Payout - 150.00
ICICI Prudential Banking and PSU Debt Fund - Daily Dividend 238.19 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Reinvested 788.55 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Payout 100.01 -
IDFC FMP - Half Yearly Series 9 - Plan A - Dividend Payout - 100.00
IDFC Money Manager Fund - Investment Plan - Institutional Plan B - Growth Option 200.00 363.38
IDFC Savings Advantage Fund - Plan A - Daily Dividend 401.95 -
IDFC Fixed Maturity Monthly Series - 30 - Dividend 275.00 -
Kotak Floater Long Term - Growth 413.14 254.20
Kotak FMP íSM Series 5 - Growth - 50.00
Kotak FMP S70 Days - Series í - Growth Option - 50.00
Kotak FMP S70 Days - Series S - Growth Option 50.00 50.00
Kotak FMP Ouarterly Interval Plan - Series S - Dividend Payout Option - 100.00
Kotak FMP Ouarterly Interval Plan - Series 6 - Dividend Payout Option - 250.00
Kotak FMP Ouarterly Interval Plan - Series 9 - Dividend Payout Option 102.52 -
Kotak FMP Ouarterly Interval Plan - Series í0 - Dividend Payout Option 90.00 -
PNB Principal Term Equity Fund 3 Plan Series II - Growth Plan - 0.05
Reliance Medium Term Fund - Retail Plan - Growth Option - 100.97
Reliance Fixed Horizon Fund - XIII - Series 3 - Super Institutional - Growth Option - 60.00
Reliance Fixed Horizon Fund - XIV - Series 5 - Super Institutional - Growth Option 50.00 50.00
Reliance Fixed Horizon Fund - XIV - Series 1 - Super Institutional - Growth Option 100.00 100.00
Reliance Fixed Horizon Fund - XV - Series 4 - Growth Option 50.00 -
Reliance Fixed Horizon Fund - XV - Series 5 - Growth Option 25.00 -
Reliance Fixed Horizon Fund - XV - Series 6 - Dividend Option 200.00 -
Reliance Fixed Horizon Fund - XII - Series 4 - Super Institutional Growth - 300.00
Reliance Monthly Interval Fund - Series I - Institutional - Dividend Payout Option 242.01 -
Reliance Monthly Interval Fund - Series II - Institutional - Dividend Payout Option 296.02 100.00
Reliance Mutual Fund - Money Manager Fund - Dividend 123.14 -
Reliance Quarterly Interval Fund - Series I - Dividend 204.01 -
Religare FMP - Series II - Plan F ( 13 Months ) - Growth Option 100.00 100.00
Religare FMP - Series II - Plan C ( 15 Months ) - Growth Option 100.00 100.00
Religare FMP - Series II A ( 13 Months ) - Growth Option 100.00 100.00
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
114
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Particulars
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Religare FMP - Series II B ( 15 Months ) - Growth Option 170.00 170.00
Religare FMP - Series III - Plan C (370 Days ) - Dividend 50.00 -
Religare FMP - Series IlI A ( 12 Months ) - Growth Option 50.00 -
SBI Debt Fund Series - 13 Months - 10 - Institutional Growth - 150.00
SBI Debt Fund Series - 370 Days - Growth Option - 90.00
SBI - Short Horizon Debt Fund - Ultra Short Term Plan - Institutional Growth Option 126.69 83.72
SBI Premier Liquid Fund - Super Institutional - Daily Dividend 74.14 -
SBI SDFS - 370 Days 90.00
Tata Fixed Maturity Plan - Series 26 - Scheme A - Growth Option 20.00 20.00
Tata Floater Fund - Growth Option 564.00 8.32
UTI - Fixed Income Interval Fund - Monthly Interval Plan I - Dividend 150.00 -
UTI - Fixed Income Interval Fund - Monthly Interval Plan II - Dividend 114.99 -
UTI - Floating Rate Fund - Short Term Plan - Institutional - Growth 437.64 -
UTI - Treasury Advantage Fund - Institional Plan - Growth 25.05 -
UTI - Short Term Income Fund - Institutional Income Option - Reinvestment - 200.00
UTI - Fixed Income Interval Fund - Series II - Quarterly Interval Plan V - Institutional
Dividend Plan - Payout
- 150.00
UTI - FMP - Yearly Series ( YFMP 11/09 ) - Institutional Growth Option - 50.00
8,799.75 4,564.80
Long-term Investments (at cost less provision for dimunition):
Non-trade, unquoted shares:
In Co-operative societies:
Sesa Ghor Premises Holders' Maintenance Society Limited
400 equity shares of `10 each fully paid-up [`4,000 (Previous year `4,000)]
- -
Sesa Goa Sirsaim Employees' Consumers Co-operative Society Limited
200 equity shares of `10 each fully paid-up [`2,000 (Previous year `2,000)]
- -
Sesa Goa Sanquelim Employees' Consumers Co-operative Society Limited
230 equity shares of `10 each fully paid-up [`2,300 (Previous year `2,300)]
- -
Sesa Goa Sonshi Employees' Consumers Co-operative Society Limited
468 equity shares of `10 each fully paid-up [`4,680 (Previous year `4,680)]
- -
Sesa Goa Codli Employees' Consumers Co-operative Society Limited
450 equity shares of `10 each fully paid-up [`4,500 (Previous year `4,500)]
- -
Sesa Goa Shipyard Employees' Consumers Co-operative Society Limited
500 equity shares of `10 each fully paid-up [`5,000 (Previous year `5,000)]
- -
V.S. Dempo Surla Mine Staf Co-operative Credit Society Ltd.
250 equity shares of `10 each fully paid-up [`2,500 (Previous year `2,500)]
- -
V.S. Dempo Surla Mine Staf Consumer Co-operative Society Ltd.
250 equity shares of `10 each fully paid-up [`2,500 (Previous year `2,500)]
- -
The Mapusa Urban Cooperative Bank Limited
40 equity shares of `25 each fully paid-up [`1,000 (Previous year `1,000)]
- -
In other companies:
Goa Shipyard Limited
62,707 equity shares of `10 each fully paid-up (including 34,837 bonus shares)
0.03 0.03
Goa Infrastructure Development Company Private Limited
5,000 equity shares of `100 each fully paid-up.
0.01 0.01
Goa Maritime Private Limited
5,000 equity shares of `10 each fully paid-up.
0.01 0.01
Total Cost 8,799.80 4,564.85
Provision for dimunition in value of investments [`5,000 (Previous year `5,000)] - -
Total 8,799.80 4,564.85
Notes:
1. Aggregate amount of mutual fund investments at net asset value 8,891.27 4,624.67
2. Aggregate amount of unquoted investments at cost [including mutual funds
of `8,799.75 crore (Previous year `4,564.80 crore)]
8,799.80 4,564.85
3. Investments on lien towards purchase of shares in Cairn India Limited
(Refer Note No. 3 of Schedule 19).
1,674.67 -
Schedule 7 : Investments (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
115
Schedule 8 : Inventories
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Stocks of (at lower of cost and net realisable value):
Raw material [including goods in transit `116.32 crore
(Previous year `Nil)]
294.84 113.94
Finished goods
Iron Ore 313.80 315.61
Metallurgical Coke 35.14 10.66
Pig Iron 38.58 12.38
387.52 338.65
Work-in-progress 0.32 1.74
Consumables stores and spares [including goods in transit `0.13
crore (Previous year `0.11 crore)]
61.07 48.21
Total 743.75 502.54
Inventories are net of unrealised pro?ts on intragroup sales.
Schedule 9 : Sundry Debtors
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Debts outstanding for a period exceeding six months
Unsecured and considered good 29.84 39.56
Considered doubtful 2.74 2.68
32.58 42.24
Other debts
Unsecured and considered good 653.18 298.56
685.76 340.80
Less: Provision for doubtful debts 2.74 2.68
Total 683.02 338.12
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
116
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Schedule 10 : Cash and Bank Balances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Cash on hand [including cheques and demand drafts on hand
`3.27 crore (Previous year `2.51 crore)] 3.38 2.61
Demand drafts in transit 4.02 6.76
Balances with scheduled banks:
On current account (Refer Note No. 2) 175.19 24.12
On deposit account [(Including on lien `0.86 crore
(Previous year `0.85 crore)] 699.31 2,353.71
On EEFC account 0.05 0.12
On unpaid dividend account 14.99 4.44
889.54 2,382.39
Balances with other banks:
On current account (Refer Note No. 1) 0.08 0.08
Total 897.02 2,391.84
Notes:
1.
Name of other banks Balance
` in crore
Max. balance
at any time
during the
year
` in crore
Balance
` in crore
Max. balance
at any time
during the
year
` in crore
Bank of Shanghai, China 0.08 0.18 0.08 0.15
2. Balance in current account includes `140.16 crore, held in Escrow account towards purchase of shares in Cairn India Limited
(Refer Note No. 3 of Schedule 19).
Schedule 11 : Loans and Advances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Unsecured considered good unless otherwise stated
Advances recoverable in cash or in kind or for value to be received
Considered good 264.60 118.28
Considered doubtful 0.62 0.50
Less: provision for doubtful advances 0.62 0.50
264.60 118.28
Intercorporate deposits (Refer Note No. 16 of Schedule 19 1,026.71 1,000.00
Balances with port trusts, customs, excise authorities etc. 2.01 3.48
Loans and advances to staf 1.51 1.47
Prepaid expenses 13.71 11.57
Deposits 13.11 10.72
Total 1,321.65 1,145.52
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
117
Schedule 12 : Current Liabilities
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sundry creditors
Due to micro and small enterprises 0.85 0.60
Due to others * 1,168.31 726.22
1,169.16 726.82
Advances from customers 22.93 19.89
Unclaimed dividend # 14.99 4.44
Unclaimed matured deposits # 0.05 0.02
Unclaimed interest on deposits # 0.01 0.01
Other liabilities 62.10 33.46
Interest accrued but not due on loans 25.40 45.54
Total 1,294.64 830.18
* Includes `1.16 crore due to directors (Previous year `0.96 crore)
# There are no amounts due and outstanding as at balance sheet date to be credited to Investor Education and Protection Fund.
Schedule 13 : Provisions
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
For income tax [net of advance tax `3,812.57 crore (Previous year
`2,294.65 crore)]
49.98 73.68
For proposed dividend 304.18 270.06
For dividend tax 49.35 45.90
For gratuity 5.19 3.72
For compensated absence 22.25 18.05
Total 430.95 411.41
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
118
Schedules Annexed to and Forming Part of the
Pro?t and Loss Account
Schedule 14 : Services and Other Proceeds
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sale of material 8.59 5.47
Sale of gases 3.11 2.89
Sale of slag 3.77 4.42
Technology licence fee - 3.86
Sale of carbon credits 4.44 -
Barge hire charges [Tax deducted at source `0.31 crore (Previous year
`0.23 crore)]
15.58 0.08
Proceeds from various services [Tax deducted at source `0.44 crore
(Previous year `0.63 crore)]
6.96 18.04
Repairs of vessels by shipyard [Tax deducted at source `0.05 crore
(Previous year `Nil)]
2.61 -
Shipping agency fees [Tax deducted at source `Nil (Previous year
`0.01)]
- 0.08
Diference in rate of exchange (net) 14.59 20.40
Total 59.65 55.24
Schedule 15 : Miscellaneous Income
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on Intercorporate deposits [Tax deducted at source `9.01 crore
(Previous year `14.18 crore)]
91.03 95.21
Interest on Fixed deposits [Tax deducted at source `10.85 crore
(Previous year `0.68)]
82.15 46.21
Interest others 0.18 1.43
173.36 142.85
Dividends
On current investments (Non trade) 296.99 78.96
On long term investments (Non trade) 0.06 0.04
297.05 79.00
Pro?t on sale of current investments (net) 62.16 75.30
Pro?t on sale of assets (net) 0.86 0.18
Diference in rate of exchange on Foreign Currency Convertible Bonds - 121.91
Excess provision written back - 2.21
Provision for doubtful debts written back 0.42 0.03
Other receipts [Tax deducted at source `0.14 crore (Previous year `0.25
crore)]
6.04 4.49
Total 539.89 425.97
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
119
Schedule 16 : Production and Operational Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Increase/decrease in stock of ?nished goods and work-in-progress
Opening stock
Iron ore 315.61 131.78
Metallurgical coke 10.66 11.67
Pig iron 12.38 9.71
Work-in-progress 1.74 1.63
340.39 154.79
On acquisition - 64.48
340.39 219.27
Less: Closing stock
Iron ore 313.80 315.61
Metallurgical coke 35.14 10.66
Pig Iron 38.58 12.38
Work-in-progress 0.32 1.74
387.84 340.39
(47.45) (121.12)
Excise duty on stock of ?nished goods 3.75 0.20
Consumption of raw materials 396.15 345.86
Consumption of stores [includes cost of supplies to contractors of
the value of `69.89 crore (Previous year `61.42 crore)]
296.31 243.68
Purchase of ore 509.12 309.56
Personnel: (Refer Note No. 13 of Schedule 19)
Salaries, wages, bonus and allowances 127.96 111.18
Contributions to provident and other funds 6.92 5.26
Contributions to gratuity and annuity funds 7.96 4.07
Staf welfare expenses 13.97 8.84
156.81 129.35
Repairs and maintenance (Refer Note No. 10 of Schedule 19)
Plant and machinery 35.57 23.71
Buildings 17.26 3.29
Others 29.81 9.39
82.64 36.39
Contractors for hired trucks and other services 740.55 664.40
Hire charges of barges 80.74 81.77
Wharfage, tonnage, handling & shipping expenses 111.15 153.44
Railway freight 274.38 281.01
Rent 5.38 4.03
Export duty 661.98 147.58
Royalties 330.41 160.72
Rates and taxes 5.00 8.84
Insurance 15.60 8.89
Electricity and water charges 20.52 16.86
Demurrage over despatch 176.54 111.16
Commission and service charges on sales 2.24 11.58
Analysis of ore 5.06 7.17
Maintenance of ofces 0.88 0.46
Printing and stationery 1.03 0.70
Travelling and representation expenses 9.08 3.85
Maintenance of vehicles 0.45 0.38
General expenses 54.17 43.61
Provision for mine closure expenses (Refer Note No. 11 Schedule 19) 1.06 0.18
3,893.55 2,650.55
Less: Extraction and processing costs recovered 27.34 34.69
Total 3,866.21 2,615.86
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
120
Schedule 17 : Administration Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Personnel: (Refer Note. No. 13 of Schedule 19)
Salaries, wages, bonus, allowances and commission 43.92 35.69
Contributions to provident and other funds 1.03 0.77
Contributions to gratuity and annuity funds 2.02 1.29
Staf welfare expenses 3.30 1.76
50.27 39.51
Maintenance of ofces and equipment 1.90 1.07
Printing and stationery 1.05 0.85
Postage, telephone, cables and telex charges 1.37 1.61
Fees to auditors
Audit fees 0.45 0.41
Other certi?cate fees 0.49 0.46
Reimbursement of expenses 0.05 0.07
0.99 0.94
Sitting fees and commission to non-wholetime directors 0.49 0.32
Travelling expenses [Includes travelling expenses of directors
`0.67 crore (Previous year `0.61 crore)]
4.30 4.60
Professional and legal charges 52.93 21.26
Maintenance of vehicles 2.18 1.91
Donations and contributions 7.49 6.71
Provision for doubtful debts 0.07 0.02
Bad debts 0.03 -
Provision for doubtful advances 0.12 0.50
Claims under litigation 1.67 9.03
Miscellaneous expenses 7.73 5.47
Total 132.59 93.80
Schedule 18 : Interest and Other Finance Charges
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on ?xed period loans
On Foreign Currency Convertible Bonds 27.86 45.36
On term loan 0.64 0.85
28.50 46.21
Interest others 7.59 3.66
Diference in rate of exchange on Foreign Currency Convertible Bonds 48.78 -
Discounting charges 2.03 1.85
Other charges 3.24 3.79
Total 90.14 55.51
Schedules Annexed to and Forming Part of the
Pro?t and Loss Account (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
121
Schedule 19 :
1. Signi?cant Accounting Policies
i) Basis of accounting
The consolidated ?nancial statements of Sesa Goa Limited (the “Parent”), its subsidiaries and jointly
controlled entity (the “Group”) have been prepared on accrual basis under historical cost convention to
comply in all material respects with the Generally Accepted Accounting Principles in India and the relevant
provisions of the Companies Act, 1956.
ii) Use of estimates
The presentation of ?nancial statements requires estimates and assumptions to be made that afect the
reported amount of assets and liabilities (including contingent liabilities) on the date of the ?nancial
statements and the reported amount of revenues and expenses during the reporting period. Diference
between the actual results and the estimates are recognised in the period in which the results are known /
materialised.
iii) Principles of consolidation
The consolidated ?nancial information incorporates the results of the Parent, its subsidiaries and its
jointly controlled entity, being the companies that it controls or in respect of which it is in joint control.
This control is normally evidenced when the Company is able to govern another company’s ?nancial
and operating policies so as to bene?t from its activities or where the Company owns, either directly or
indirectly, the majority of another company’s equity voting rights unless in exceptional circumstances it can
be demonstrated that ownership does not constitute control.
The ?nancial statements of the Company and its subsidiaries have been combined on a line by line basis
by adding together like items of assets, liabilities, income and expenses. Interest in the jointly controlled
entity is reported using proportionate consolidation. The ?nancial statements of the subsidiaries and the
jointly controlled entity are prepared for the same reporting year as the Parent, using consistent accounting
policies to the extent practicable. Adjustments are made to align any dissimilar accounting policies that may
exist where practicable. All intercompany balances and transactions, including unrealised pro?ts arising
from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs
cannot be recovered.
Particulars of subsidiaries and the jointly controlled entity are given below:
Name of Company Country of
Incorporation
% of voting
power held on
31.3.2011
% of voting
power held on
31.3.2010
Sesa Industries Limited (“SIL”)
*(Amalgamated during the year with the Parent, Refer Note No. 2)
India * 88.251
Sesa Resources Limited (“SRL” formerly V. S. Dempo & Company
Limited)
India 100 100 #
Sesa Mining Corporation Limited (“SMCL” formerly Dempo Mining
Corporation Limited)
India 100 100 #
Goa Maritime Private Limited (“GMPL”) India 50 50 #
# with efect from 12th June, 2009
For information relating to Subsidiaries as required under General Circular No. 2/2011 dated 8th February,
2011 issued by the Ministry of Corporate Afairs, Government of India, refer Annexure (page 104).
The assets, liabilities, income and expenses of GMPL are not material to the ?nancial statements of the
Group taken as a whole. Therefore, information in that respect required by Accounting Standard (AS 27)
on Financial Reporting of Interests in Joint Ventures has not been furnished and also the share of pro?ts /
losses of GMPL are not consolidated.
Notes Forming Part of the Accounts
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
122
iv) Revenue recognition
Revenue is recognised when signi?cant risks and rewards of ownership of the goods sold are transferred to
the customer and the commodity has been delivered to the shipping agent/customer.
Revenue represents the invoice value of goods and services provided to third parties net of discounts,
sales taxes/value added taxes, and is after considering adjustments on ?nal invoices (arising on analysis
variances) received upto the year end.
Revenue in respect of contracts for services is recognised on completion of services.
Dividend income is recognised when the right to receive dividend is established.
Interest income is recognised on a time proportion basis by reference to the principal outstanding and at
the interest rate applicable.
v) Employee bene?ts
a. Provident fund: The Group’s contribution to the recognised provident fund, pension fund and
employees' deposit linked insurance scheme paid / payable during the year is debited to the Pro?t and
Loss Account.
b. Gratuity fund: The Group accounts for the net actuarial liability of its obligations for gratuity bene?ts
based on an independent actuarial valuation determined on the basis of the projected unit credit
method carried as at the year end. Based on the above determined obligation, the Group makes
contribution to funds managed by insurance companies. Actuarial gains and losses are immediately
recognised in the Pro?t and Loss Account.
c. Annuity fund: The Group has a de?ned contribution plan for certain categories of employees, wherein
it annually contributes a predetermined proportion of employee’s salary to an insurance company
which administers the fund. The Group recognises such contributions as an expense over the period of
services rendered.
d. Compensated absence: The liability in respect of compensated absence for employees is determined
on the basis of an independent actuarial valuation carried out at the end of the year and diferential
liability recognised as expense in the Pro?t and Loss Account.
vi) Investments
Long term investments are stated at cost less provision for dimunition. Provision for dimunition is made to
recognise decline (other than temporary) in the value of investments, if any. Current investments are stated
at cost or market value, whichever is lower.
vii) Inventories
Raw material, consumable stores and spares are held for use in production and are valued at cost
determined on the basis of weighted average method.
Work-in-progress, stock of iron ore, metallurgical coke and pig iron are valued at lower of cost or net
realisable value. Cost includes raw material and proportion of ?xed and variable overheads.
viii) Foreign currency transactions
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction.
Year end balance of monetary assets and liabilities are translated at the year end rates. Exchange diference
arising on restatement or settlement is charged to the Pro?t and Loss Account.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
123
ix) Foreign currency forward contracts
The Group enters into forward derivative ?nancial instruments to hedge its exposure to foreign currency.
The Group does not hold derivative ?nancial instruments for speculative purposes. Derivative ?nancial
instruments are initially recorded at their fair value on the date of the derivative transaction and are re-
measured at their fair value at subsequent balance sheet dates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
the Pro?t and Loss Account.
Changes in the fair value of derivatives that are designated and qualify as cash ?ow hedges are recorded in
Reserves and Surplus. Amount deferred to Reserves and Surplus are recycled in the Pro?t and Loss Account
in the period when the hedged item is recognised in the Pro?t and Loss Account.
Derivative ?nancial instruments that do not qualify for hedge accounting are marked to market at the
balance sheet date and gains or losses are recognised in the Pro?t and Loss Account immediately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised,
or no longer quali?es for hedge accounting. Any cumulative gain or loss on the hedging instrument
recognised in Reserves and Surplus is kept in Reserves and Surplus until the forecast transaction occurs. If a
hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in Reserves
and Surplus is transferred to the Pro?t and Loss Account for the year.
x) Fixed assets
Fixed assets except for the leasehold mine at Karnataka, are stated at their original cost along with
taxes, duties (net of Modvat/Cenvat availed, if any), freight and interest on borrowings up to the date of
commissioning for operation, attributable to acquisition/construction of the concerned assets.
The iron ore reserves of the leased mine located in Karnataka were valued and shown as ?xed assets by
erstwhile A. Narrain Mines Ltd. (ANML). The Group continues to show the value of the said mining lease as
?xed assets after merger of said ANML. The Group’s other mining leases having ore reserves, however, are
not valued. Amounts paid to Government authorities towards renewal of forest clearances in respect of
owned mining leases are capitalised as a part of mining leases.
xi) Borrowing costs
Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of
time are capitalised. All other borrowing costs including exchange diferences on foreign currency loans are
charged to revenue.
xii) Depreciation
Depreciation except on the leasehold mine at Karnataka, and in respect of vehicles, furniture, computers
and railway wagons is provided for on Straight Line Method (SLM) at the rates speci?ed in Schedule XIV of
the Companies Act, 1956. In respect of vehicles, furniture and computers depreciation has been charged
on SLM method at annual rate of 20%, 10% and 30% respectively to bring it in line with the useful life of the
assets. The cost of railway wagons procured under Wagon Investment Scheme (WIS) is being depreciated at
the rate of 10% per annum on a Straight Line basis. The value of mining leases capitalised are amortised in
proportion to actual quantity of ore extracted therefrom. Amounts paid towards renewal of forest clearances
in respect of owned mining lease are amortised over the operating period of the lease. Fixed assets costing
less than `5,000 are wholly depreciated in the year of acquisition. Expenses on implementation of Enterprise
Resource Planning–SAP are amortised over thirty-six months.
Depreciation has been charged from the month of the date of purchase in the case of acquisitions made
during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
124
xiii) Impairment of assets
The carrying amounts of ?xed assets are reviewed for impairment, if events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable. If there are indicators of impairment,
an assessment is made to determine whether the assets carrying value exceeds its recoverable amount.
Whenever the carrying value of an asset exceeds recoverable amount, impairment is charged to the Pro?t
and Loss Account.
xiv) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Group has a present obligation as a result of a past event and it is
probable that an out?ow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions (excluding retirement bene?ts) are not discounted to their present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. A
contingent liability is disclosed unless the possibility of an out?ow of resources embodying economic
bene?ts is remote. A contingent asset is neither recognised nor disclosed.
xv) Segment reporting
The Group is in the business of mining and sale of iron ore and manufacture and sale of metallurgical coke
and pig iron. All of the Group’s establishments are located in one country i.e. India. The revenues from other
than sale of ore, metallurgical coke and pig iron are either incidental to the above three businesses or of
non-recurring nature. Therefore the Group operates in three business segments.
Segment revenue, segment expenses, segment assets and segment liabilities have been identi?ed to
segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses,
assets and liabilities which relate to the Group as a whole and are not allocable to segments on reasonable
basis, have been included under “Unallocated revenue / expenses / assets / liabilities”.
xvi) Taxes on income
The Group’s income taxes include taxes on each entity’s taxable pro?ts, adjustment attributable to earlier
periods and changes in deferred taxes. Valuation of all tax liabilities/receivables are carried at current
amounts and in accordance with enacted tax regulations, rates or in the case of deferred taxes those that
have been substantially enacted.
Deferred tax is calculated to correspond to the tax efect arising when ?nal tax is determined. Deferred
tax corresponds to the net efect of tax on all timing diferences which occur as a result of items being
allowed for income tax purposes during a period diferent from when they were recognised in the ?nancial
statements.
xvii) Accounting for government grants/refunds
Government grants/subsidies and refunds due from Government Authorities are accounted when there is
reasonable certainty of their realisation.
2. Acquisition of minority interest in Sesa Industries Limited consequent to its amalgamation with the Parent:
a) The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme of
Amalgamation (the “Scheme”) of Sesa Industries Limited (engaged in the manufacture and sale of Pig Iron
and hereinafter referred to as SIL) (erstwhile subsidiary of Sesa Goa Limited) with Sesa Goa Limited (the
“Parent”) efective from the appointed date i.e. 1st April, 2005, by setting aside the Order dated 21st February,
2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the Scheme passed
by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated 18th December,
2008. The Scheme has accordingly been given efect to in these ?nancial statements. The efective date of
amalgamation is 14th February, 2011.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
125
b) As a result of the above:
i) 9,398,864 equity shares of `1 each have been issued in the ratio of 20 fully paid equity shares of `1 each
(after adjustment for stock split and bonus shares) in the Parent for 5 fully paid equity shares of `10
each held by the minority shareholders of erstwhile SIL.
ii) the excess of minority interests as of 1st April, 2005 over the face value of shares allotted has been
treated as a capital reserve on consolidation.
iii) the pro?ts for the period subsequent to 1st April, 2005 till 31st March, 2010 has been included in the
balance in Pro?t and Loss Account.
iv) dividend on the aforesaid 9,398,864 equity shares of `1 each amounting to `12.88 crore has been paid
to the minority shareholders of erstwhile SIL for the ?nancial years from 31st March, 2006 to 31st
March, 2010 at the rates declared by the Parent in the relevant years. The aforesaid amount of `12.88
crore includes dividend tax of `1.83 crore.
3. The Group has proposed to acquire upto 20% of the equity share capital of Cairn India Ltd (“CIL”), subject to
requisite approvals. For the said acquisition, the Group is acting as a Person in Concert with its ultimate holding
company Vedanta Resources Plc (“Vedanta”), and/or any of Vedanta’s subsidiaries for acquiring majority of equity
shares of CIL. The Group has received clearance from Securities and Exchange Board of India (“SEBI”) to proceed
with an open ofer of up to 20% of the shares of CIL. The Group has launched the Open Ofer from 11th April,
2011.
In April 2011, the Group acquired 200 million shares amounting to 10.4% stake in CIL from Petronas International
Corporation Ltd (“Petronas”) at a price of `331 per share. The acquisition is in addition to the Open Ofer
launched by the Group on 11th April, 2011.
4. The Company had pursuant to a share purchase agreement dated 11th June, 2009 acquired 1,250,000 equity
shares of `10 each (being 100% of the issued and paid-up share capital) of Sesa Resources Limited (formerly V.
S. Dempo & Company Limited) (“SRL”). SRL in turn holds 1,150,000 equity shares of `100 each (being 100% of
the issued and paid-up share capital) of Sesa Mining Corporation Limited (formerly Dempo Mining Corporation
Limited) (“SMCL”) and also hold 5,000 equity shares of `10 each (being 50% of the issued and paid-up share
capital) of Goa Maritime Private Limited.
In view of SRL and SMCL having become subsidiaries of the Company with efect from 12th June, 2009, the
consolidated ?gures for the current year are not comparable with those of the previous year.
5. The Parent has acquired assets of the upcoming Steel Plant Unit of Bellary Steel and Alloys Ltd (“BSAL”) for an
all cash consideration of `220.00 crore. BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project at
Bellary. The properties of the under construction plant acquired are freehold land of ~700 acres, building and
structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an “As is
where is” basis to the Parent as of 22nd March, 2011.
6. During the previous year 2009-10, the Parent had issued 33,274,000 equity shares of `1 each at a premium of
`160.46 per share for cash to Twin Star Holdings Limited on a preferential basis under the applicable provisions
of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 (the “Guidelines”).
A part of the proceeds aggregating `101.47 crore (Previous year `101.47 crore) has been utilised for the Parent’s
capital projects. The unutilised portion of the issue proceeds amounting to `435.77 crore (Previous year `435.77
crore) has been invested in Mutual Funds.
7. During the previous year 2009-10, the Parent issued 5,000 Foreign Currency Convertible Bonds (“FCCBs”)
aggregating US$ 500 million at a coupon rate of 5% (net to bondholder) The bondholders have an option
to convert these FCCBs into shares, at a conversion price of `346.88 per share at a ?xed rate of exchange on
conversion of `48.00 per US $ 1.00 at any time on or after 9th December, 2009. The conversion price is subject
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
126
to adjustment in certain circumstances. The FCCBs may be redeemed in whole, but not in part, on or after
30th October, 2012, subject to certain conditions. Unless previously converted, redeemed or repurchased and
cancelled, the FCCBs fall due for redemption on 31st October, 2014 at par. As at 31st March, 2011, 2,832 FCCB’s
have been converted into 39,188,159 equity shares.
A part of the proceeds aggregating `775.28 crore (Previous year `21.70 crore) has been utilised for the Parent’s
capital projects, the construction of which is in progress. The unutilised portion of the FCCB proceeds
aggregating `1,607.22 crore (Previous year `2,360.80 crore) have been placed in term deposits/mutual funds/
current accounts with a scheduled bank, pending utilisation. Interest aggregating `4.72 crore (Previous year `0.17
crore) in respect of amounts utilised for the construction of capital projects has been capitalised and included as
part of Capital Work-in-Progress. The balance interest amounting to `27.86 crore (Previous year `45.36 crore) has
been charged to the Pro?t and Loss Account.
8. Contingent Liabilities:
i) Guarantees (excluding the liability for which provisions have been made) amounting to `13.84 crore
(Previous year `11.85 crore) given by the Bankers in favour of various parties - none invoked.
ii) Letters of Credit opened by the banks in favour of suppliers amounting to `363.93 crore (Previous year
`179.92 crore).
iii) Bonds executed in favour of customs authorities in respect of export of iron ore `1,807.92 crore (Previous
year `1,010.84 crore).
iv) Claims by custom authorities (under dispute) relating to diferential export duty on export shipments `49.13
crore (Previous year `49.13 crore). The said amount is also included under bonds executed detailed in point
8 (iii) above.
v) Bills discounted under letters of credit with banks `391.96 crore. (Previous year `471.08 crore).
vi) Provisions have also not been made in the accounts in respect of the following liabilities not acknowledged
as debts for the reasons stated against them:
a) Dead rent on deemed mining leases for the period from20.12.1962 to 23.5.1987 amounting to `0.10
crore (Previous year `0.10 crore) and royalty for the period from20.12.1961 to 30.9.1963 amounting to
`0.12 crore (Previous year `0.12 crore) sought to be levied by the Government pursuant to the Goa,
Daman & Diu Mining Concessions (Abolition & Declaration as Mining Leases) Act, 1987, challenged by
Special Leave Petition before Supreme Court of India.
b) Claims related to commercial and employment contracts `7.40 crore (Previous year `7.15 crore).
c) A civil suit claiming a damage of a minimum amount of `37.50 crore (Previous year `37.50 crore)
towards infringement of patent has been ?led against the Parent.
d) Disputed sales tax demand of `0.45 crore (Previous year `0.45 crore) including interest and penalty of
`0.09 crore (Previous year `0.09 crore) appealed before Appellate Authority.
e) Disputed income tax demand of `19.51 crore (Previous year `9.92 crore) including interest and penalty
of `1.71 crore (Previous year `1.24 crore), appealed before Appellate Authority.
f) Disputed demand from customs authorities towards ?ne and penalty of `0.35 crore (Previous year `0.35
crore) for improper documentation of equipments loaded/unloaded to/from the Parent’s vessel M.V.
Orissa and its improper use.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
127
g) Disputed demand from customs authorities of `1.60 crore including penalty of `0.80 crore, for
transferring imported metallurgical coke at concessional rate of duty under the provisions of Customs
(Import of Goods at Concessional rate of Duty for manufacture of Excisable Goods) Rules 1996 to the
erstwhile M/s. Sesa Kembla Coke Company Limited, appealed before the Appellate Authority.
h) Disputed forest development tax amounting to `173.96 crore (Previous year `164.12 crore) levied by
Government of Karnataka challenged by writ petition ?led in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending. A bank guarantee amounting to `35.00
crore (Previous year `74.00 crore) has been furnished against this demand. Also an amount of `32.97
crore (Previous year `5.00 crore) has been deposited against aforesaid demand and same is included
under Loans and Advances.
i) A Notice issued by the Deputy Conservator of Forest, Chitradurga, demanding registration of a
supplemental forest lease agreement by payment of stamp duty calculated on the net present value
which has been challenged in the High Court of Karnataka. Estimated liability is `0.92 crore (Previous
year `0.92 crore). A bank guarantee amounting to `0.45 crore (Previous year `0.45 crore) has been
furnished against this demand.
j) Cess on transportation of ore, coal and coke within Goa levied by Government of Goa under the
Goa Rural Development and Welfare Cess Act, 2000 (Goa Act 29 of 2000) amounting to `118.11 crore
(Previous year `85.49 crore) challenged by way of writ petition in the High Court of Bombay, Panjim
Bench.
k) A demand from Railway authorities towards stacking charges amounting to `4.09 crore appealed before
Kolkata High Court and stay obtained. A bank guarantee amounting to `4.09 crore has been furnished
against this demand.
l) Disputed marine claims aggregating `13.57 crore and disputed income tax claims aggregating `33.87
crore in respect of a subsidiary. These claims if ?nally determined as payable will be reimbursed by the
erstwhile shareholders of the said subsidiary pursuant to Share Purchase Agreement dtd. 11.06.2009.
The Group does not expect devolvement of any liability in respect of the above.
9. Estimated amount of contracts (net of advances) remaining to be executed on capital account `412.39 crore
(Previous year `428.50 crore).
10. Direct expenditure on repairs and maintenance included under major heads of expenses are as under:
(` in crore)
Particulars Plant and
Machinery
Buildings Others Total
a) Wages and salaries 14.42
(14.13)
0.64
(0.49)
0.21
(0.18)
15.27
(14.80)
b) Consumption of stores 59.63
(56.78)
2.12
(0.74)
0.60
(0.45)
62.35
(57.97)
c) Contractors for various services 15.53
(17.66)
0.45
(1.32)
0.51
(0.37)
16.49
(19.35)
d) Others 1.73
(1.46)
1.88
( - )
0.17
(0.07)
3.78
(1.53)
Total 91.31
(90.03)
5.09
(2.55)
1.49
(1.07)
97.89
(93.65)
(Figures in bracket relate to previous year)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
128
11. In terms of the Mineral Concession Rules 1960 and Mineral Conservation and Development Rules (MCDR) 1988,
the Group has provided a “?nancial assurance” in the form of a bank guarantee to the Regional Controller of
Mines, towards its mine closure obligation. The Group has made a provision for expense to the extent of the bank
guarantees provided.
The present mine closure provision at 31st March, 2011 is as under:
(` in crore)
Nature of obligation 2010-11 2009-10
Mines Closure Provision
Opening carrying amount 2.65 1.50
Additional provisions made during the year 1.06 1.15
Amounts used during the year - -
Unused amounts reversed during the year - -
Closing carrying amount 3.71 2.65
12. Research and development expenditure of `0.29 crore (Previous year `0.48 crore) has been charged to Pro?t and
Loss Account under speci?c heads of accounts, while `Nil (Previous year `Nil) has been incurred as capital cost
for research and development.
13. Employee bene?ts obligations:
De?ned bene?t plans:
The Group ofers its employees de?ned bene?t plans in the form of gratuity schemes. Gratuity Scheme covers
all employees as statutorily required under Payment of Gratuity Act, 1972. The Group has ?ve gratuity schemes
for diferent categories of employees. The Group contributes funds to Life Insurance Corporation of India, HDFC
Standard Life Insurance Co. Limited and ICICI Prudential Life Insurance Company Limited which are irrevocable.
Commitments are actuarially determined at the year end. The actuarial valuation is done based on the “Projected
Unit Credit” method. Gains and losses of changed actuarial assumptions are charged to the Pro?t and Loss
Account under the head ‘Personnel’.
The net value of the de?ned bene?t commitment is detailed below:
(` in crore)
Particulars 2010-11 2009-10
Fair value of plans 40.04 37.80
Present value of commitment (43.53) (38.60)
Net gratuity liability (3.49) (0.80)
De?ned bene?t commitment
Balance at start of the year 38.60 25.63
On acquisition - 9.46
Current service cost 2.24 2.15
Bene?ts paid (4.75) (2.55)
Interest cost 3.09 2.79
Actuarial (gains)/losses 4.35 1.12
Balance at end of year 43.53 38.60
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
129
Particulars 2010-11 2009-10
Plan assets
Balance at start of the year 37.80 20.88
On acquisition - 11.57
Contribution received 3.72 4.74
Bene?ts paid (4.75) (2.55)
Return on scheme assets 3.00 2.80
Actuarial gains/(losses) 0.27 0.36
Balance at end of year 40.04 37.80
The Plan assets of the Group are managed by the Life Insurance Corporation of India, HDFC Standard Life
Insurance Co. Limited and ICICI Prudential Life Insurance Company Limited and the composition of the
Investment relating to these assets is not available with the Group.
(` in crore)
Return on plan assets 2010-11 2009-10
Expected return on plan assets 3.00 2.80
Actuarial gain / (loss) 0.27 0.36
Actual return on plan assets 3.27 3.16
Expenses on de?ned bene?t plan recognised in the Pro?t and Loss Account :
(` in crore)
Particulars 2010-11 2009-10
Current service cost 2.24 2.15
Actuarial (gains) / losses 4.08 0.76
Expected return on plan assets (3.00) (2.80)
Interest cost 3.09 2.79
Direct payment 0.02 -
Total expenses / (income) accounted in the Pro?t & Loss Account 6.43 2.90
The actuarial calculations used to estimate de?ned bene?t commitments and expenses are based on the
following assumptions which if changed, would afect the de?ned bene?t commitments size, funding
requirements.
Particulars 2010-11 2009-10
Rate on discounting liabilities 8% & 8.25% 8% & 8.25%
Expected salary increase rate 5% & 7% 5% & 7%
Expected rate of return on scheme assets 9.3% , 10% & 8% 9% , 9.3% & 8%
Withdrawal rates 1.5% 1.5%
Mortality rates LIC (1994-96) Ultimate Table LIC (1994-96) Ultimate Table
The estimates of future salary increases considered in the actuarial valuation, take account of in?ation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.
Experience adjustment
(` in crore)
Particulars 2010-11 2009-10 2008-09 2007-08
Present value of commitment (43.53) (38.60) (25.63) (21.22)
Fair value of the plans 40.04 37.80 20.88 19.65
Surplus / (de?cit) (3.49) (0.80) (4.75) (1.57)
Experience adjustment on plan liabilities 2.60 (0.90) 3.14 1.02
Experience adjustment on plan assets (3.23) 3.41 (0.04) 2.05
(` in crore)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
130
The contributions expected to be made by the Group during the ?nancial year 2011-12 are ` 5.19 crore.
The above information is actuarially determined.
De?ned Contribution Plans:
The Group ofers its employees bene?ts under de?ned contribution plans in the form of provident fund, family
pension fund and annuity fund. Provident fund, family pension fund and annuity fund cover substantially
all regular employees. Contributions are paid during the year into separate funds under certain statutory
/ ?duciary type arrangements. While both the employees and the Group pay predetermined contributions
into the provident fund and pension fund, the contribution to annuity fund are made only by the Group. The
contributions are normally based on a certain proportion of the employee’s salary.
A sum of `11.50 crore (Previous year `8.49 crore) has been charged to the Pro?t and Loss Account in this respect,
the components of which are tabulated below:
(` in crore)
Contribution to de?ned contribution plans 2010-11 2009-10
Provident fund and family pension fund 7.95 6.03
Annuity fund 3.55 2.46
11.50 8.49
14. Foreign Currency Exposures:
The year end foreign currency exposures that were not hedged by a derivative instrument or otherwise are given
below.
i) Amount receivable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in crore Fx million ` in crore Fx million
Export of goods and services & Advance to Vendors 582.00 USD 130.02
JPY 2.07
Euro 0.17
SGD 0.05
GBP 0.01
239.93 USD 53.1
Bank balance 0.13 CNY 0.12
USD 0.01
0.16 CY 0.12
USD 0.02
ii) Amount payable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in crore Fx million ` in crore Fx million
Import of goods and services 494.25 USD 110.3 289.64 USD 64.1
JPY 11.8
Euro 0.15
AUD 0.05
JPY 8.0
Foreign Currency Convertible Bonds and Interest there on 988.31 USD 221.35 1,956.91 USD 433.5
Foreign Currency Loan payable and Interest there on 28.14 USD 6.3 34.76 USD 7.7
Note: Fx = Foreign currency; USD = US Dollar; JPY = Japanese Yen; CNY = Chinese Yuan;
AUD = Australian Dollar; GBP = Great Britain Pound; SGD = Singapore Dollar
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
131
15. Earnings per share:
Particulars 2010-11 2009-10
Net pro?t after tax (`in crore) 4,222.45 2,629.13
Weighted average no. of equity shares 858,713,539 811,125,264
Nominal value of each equity shares `1 `1
Basic earnings per share (in `) 49.17 32.41
Add: Expenses/ (income) to the Pro?t and Loss Account on account of Foreign Currency
Convertible Bonds (net of tax)
58.11 (58.74)
Pro?t after tax for diluted earning per share 4,280.56 2,570.39
Weighted average number of shares for basic EPS 858,713,539 811,125,264
Add: Efect of potential equity shares on conversion of Foreign Currency Convertible Bonds 30,000,000 1,716,276
Weighted average number of shares for diluted earning per share 888,713,539 812,841,540
Diluted earning per share (in `) 48.17 31.62
16. Related party information:
Related party information as required by AS 18 is given below:
A. Names of the related parties and their relationships:
i) Holding Companies:
- Finsider International Company Limited Holding Company
- Richter Holding Limited Holding Companies of Finsider International Company
Limited - Westglobe Limited
- Vedanta Resources Plc Ultimate Holding Company
ii) Fellow Subsidiaries:
With whomtransactions have taken place during the year
- Bharat Aluminum Company Limited
- Hindustan Zinc Limited
- Konkola Copper Mines
- The Madras Aluminum Company Limited
- Sterlite Industries (India) Limited
- Sterlite Iron & Steel Company Limited
- Sterlite Technologies Limited
- Twin Star Holdings Limited
- Vedanta Aluminum Limited
- Vizag general Berth Cargo Private Limited
iii) Jointly Controlled Entities:
- Goa Maritime Private Limited
iv) Details of Key Management Personnel:
Executive directors
- Mr. P. K. Mukherjee
- Mr. A. K. Rai
- Mr. A. Pradhan
- Mr. Pramod Unde
- Mr. H. P. U. K. Nair (Retired on 0í.í0.2009)
- Mr. M. D. Phal (Retired on 30.04.2009)
v) Enterprise in which signi?cant in?uence is exercised by Key Management Personnel:
- Sesa Community Development Foundation
}
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
132
B. Transactions with related parties:
a) Details relating to parties referred to in items A (i) and (ii) above:
(` in crore)
Name of Related Party Nature of Transaction Holding
Companies
Fellow
Subsidiaries
1) Sales and Services
Bharat Aluminium Company Limited Services rendered -
( - )
0.001
( - )
Hindustan Zinc Limited Sale of Metallurgical
Coke and services rendered
-
( - )
0.74
(1.08)
Konkola Copper Mines Services rendered -
( - )
0.07
( - )
The Madras Aluminium Company Limited Services rendered -
( - )
0.03
( - )
Sterlite Industries (I) Limited Sale of Pig Iron and services rendered -
( - )
7.08
(3.52)
Sterlite Iron and Steel Company Limited Interest on Inter corporate deposit -
( - )
0.90
( - )
Vedanta Aluminum Limited Interest on Inter corporate deposit -
( - )
90.14
(95.21)
Vizag General Berth Cargo Pvt. Limited Services rendered -
( - )
0.04
( - )
2) Purchase and Other services
Bharat Aluminum Co. Limited Administration expenses -
( - )
0.01
(-)
Finsider International Co. Limited Dividend remittance 130.49
(90.34)
-
( - )
Hindustan Zinc Limited Administration expenses -
( - )
0.63
(0.13)
The Madras Aluminum Co. Limited Administration expenses -
( - )
0.003
( - )
Sterlite Industries Limited Administration expenses -
( - )
13.19
(10.36)
Sterlite Technologies Limited Administration expenses -
( - )
0.02
(0.14)
Talwandi Sabo Power Limited Administration expenses -
( - )
-
(0.03)
Twin Star Holdings Limited Dividend remittance 10.81
( - )
-
( - )
Vedanta Resources Plc. Administration expenses 5.86
(5.34)
-
( - )
Vedanta Aluminum Limited Administration expenses -
( - )
2.56
(1.25)
West Globe Limited Dividend remittance 14.41
(3.72)
-
( - )
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
133
Name of Related Party Holding
Companies
Fellow
Subsidiaries
3) Inter Corporate Deposits
Sterlite Iron & Steel Company Limited - 26.71
( - )
Vedanta Aluminium Limited -
( - )
1,000.00
(1,000.00)
4) Preferential allotment of equity of shares
Twin Star Holdings Limited -
( - )
-
(537.24)
5) Bad Debts Written Of -
( - )
-
( - )
6) Outstanding receivables/payables (-)
Hindustan Zinc Limited -
( - )
-0.01
( -0.02)
Sterlite Industries (I) Limited -
( - )
-1.50
(-1.11)
Sterlite Iron and Steel Company Limited -
( - )
0.90
( - )
Sterlite Technologies Limited -
( - )
-
( -0.01 )
Vedanta Aluminum Limited -
( - )
-0.52
( -0.64)
Vedanta Resources Plc. -7.46
( -6.45)
-
( - )
Figures in brackets relate to previous year
b) Details relating to persons referred to in item 1(iv) above:
(` in crore)
Particulars 2010-11 2009-10
i) Remuneration [Executive Directors]
Mr. P. K. Mukherjee 2.41 1.73
Mr. A. K. Rai 1.29 1.10
Mr. A. Pradhan 1.00 0.86
Mr. H. P. U .K. Nair (Retired on 0í.í0.2009) 0.15 0.76
Mr. M.D. Phal (Retired on 30.04.2009) - 0.34
Mr. Pramod Unde 1.30 0.41
Total 6.15 5.20
ii) Sale of Assets
Mr. H. P. U .K. Nair - 0.04
Mr. M. D. Phal - 0.04
(iii) Outstanding receivables/(payables)
Mr. P. K. Mukherjee (0.74) (0.56)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
134
c) Details relating to persons referred to in item A (v) above
(` in crore)
Particulars 2010-11 2009-10
Donation 3.29 3.53
Recovery – rent and electricity charges - 0.02
d) Additional information required as per the Listing Agreement:
(` in crore)
Particulars 2010-11 2009-10
Outstanding as at 31st
March, 2011
Maximum amount
outstanding during
the year
Outstanding as at
31st March, 2010
Maximum amount
outstanding during
the year
Inter-corporate deposits – Dues from
fellow subsidiary
Sterlite Iron & Steel Company Limited
Vedanta Aluminum Limited
26.71*
1,000.00**
27.61
1,000.00
-
1,000.00
-
1,000.00
* Inter-corporate deposits have been placed at an interest rate of 8%.
** Inter-corporate deposits have been placed at an interest rate of 8% from April 2010 to September 2010,
9% from October 2010 to December 2010 & 11% p.a. from January 2011 to March 2011 and are secured
against a corporate guarantee from Vedanta Resources Plc., the ultimate holding company. As no cash
and cash equivalents were involved in the roll-over of this Inter-corporate deposit, the same has been
excluded from the Cash ?ow statement.
17. Disclosure regarding jointly controlled assets – MV Goan Pride
(` in crore)
Particulars 2010-11 2009-10
Jointly controlled assets - Net Book Value 31.46 34.66
Liabilities 18.75 25.28
Expenses incurred 29.73 23.07
Income recognised 19.44 11.60
18. Segment Information
As required by Accounting Standard No. 17 on Segment Reporting
i) The Company is collectively organised into three main business segments namely:
- Iron Ore
- Metallurgical coke
- Pig iron
Segments have been identi?ed and reported taking into account the nature of the product and services, the organisation
structure and internal ?nancial reporting system.
ii) Information based on the Primary Segment (Business Segment)
(` in crore)
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Revenue
- Sales / Income from Operations (net of duties
and ocean freight)
8,586.72
(5,234.55)
506.37
(384.35)
673.81
(551.40)
9,766.90
(6,170.30)
- Other Income 6.97
(6.48)
0.14
(0.17)
0.39
(0.43)
7.50
(7.08)
8,593.69
(5,241.03)
506.51
(384.52)
674.20
(551.83)
9,774.40
(6,177.38)
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
135
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Less : Intersegment Revenue 207.13
(71.34)
354.78
(240.70)
0.05
(0.14)
561.96
(312.18)
Net Revenue from operations 8,386.56
(5,169.69)
151.73
(143.82)
674.15
(551.69)
9,212.44
(5,865.20)
Add : Interest Income 173.36
(142.85)
173.36
(142.85)
Add : Dividend 297.05
(79.00)
297.05
(79.00)
Add : Foreign Exchange Gain on Foreign Currency
Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 62.16
(75.30)
62.16
(75.30)
Enterprise revenue 9,745.01
(6,284.26)
Segment Result before tax, interest,dividend and
other non-recurring/unallocable income
4,883.93
(2,925.91)
89.01
(34.09)
141.08
(117.25)
5,114.02
(3,077.25)
Less: Interest Expenses 38.12
(51.72)
38.12
(51.72)
Less : Foreign Exchange Loss on Foreign Currency
Convertible Bonds
48.78
( - )
48.78
( - )
Add : Interest Income 173.36
(142.85)
173.36
(142.85)
Add : Dividend Income 297.05
(79.00)
297.05
(79.00)
Add : Foreign Exchange Gain on Foreign Currency
Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 62.16
(75.30)
62.16
(75.30)
Pro?t before Taxation 5,559.69
(3,444.59)
Segment Assets 4,415.18
(2,891.02)
384.65
(227.18)
279.35
(203.52)
10,524.50
(7,914.85)
15,603.68
(11,236.57)
Segment Liabilities 898.76
(689.59)
358.42
(168.01)
53.19
(32.65)
1,482.88
(2,385.32)
2,793.25
(3,275.57)
Capital Expenditure 966.54
(141.58)
3.79
(3.42)
18.35
(4.52)
-
( - )
988.68
(149.52)
Depreciation 64.93
(57.29)
23.15
(9.31)
8.30
(7.90)
-
( - )
96.38
(74.50)
Signi?cant Non-Cash Expenses other than
depreciation
0.12
(0.61)
0.07
(9.03)
-
( - )
48.78
( - )
48.97
(9.64)
(Figures in bracket relate to previous year)
iii) Information based on the Secondary Segment (Geographical Segments):
(` in crore)
Particulars 2010-11 2009-10
Segment Revenue:
India 1,261.06 1,031.26
Outside India 7,951.38 5,146.12
Segment Assets:
India 4,496.75 1,331.82
Outside India 582.43 243.48
(` in crore)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
136
Particulars 2010-11 2009-10
Capital Expenditure:
India 988.68 136.11
Outside India - -
19. The ultimate holding company viz. Vedanta Resources Plc, (“Vedanta”) ofers equity-based award plans to its
employees, ofcers and directors based on the performance conditions as set out in the scheme, duly approved
by the board of directors and by the shareholders of Vedanta on 24th December, 2003 and 20th January, 2004
respectively. The performance condition attached to outstanding awards under the Long Term Incentive Plan
(LTIP) is that of Vedanta’s performance, measured in terms of Total Shareholder Return (“TSR”) compared over a
three year period or such period as the Board of Vedanta may determine with the performance of the companies
as de?ned in the scheme from the date of grant. Under this scheme, initial awards under the LTIP were granted
in February 2004 with further awards being made in June 2004, November 2004, February 2006, November
2007, February 2009, August 2009 and January 2010.
The fair values were calculated using a Monte Carlo model with suitable modi?cations to allow for the speci?c
performance conditions of the LTIP. The inputs to the model include the share price at date of grant, exercise
price, expected volatility, expected dividends and the risk free rate of interest. A progressive dividend growth
policy is assumed in all fair value calculations. Expected volatility has been calculated using historical share
prices over the period to date of grant that is commensurate with the performance period of the option. The
share prices of the mining companies in the Adapted Comparator Group have been modeled based on historical
price movements over the period to date of grant which is also commensurate with the performance period for
the option. The history of share prices is used to determine the volatility and correlation of share prices for the
companies in the Adapted Comparator Group and is needed for the Monte Carlo simulation of their future TSR
performance relative to the Company’s TSR performance. All options are assumed to be exercised six weeks after
vesting.
The awards are indexed to and settled in Vedanta shares. The awards provide for a ?xed exercise price
denominated in Vedanta’s functional currency at 10 US cents per share. Vedanta is obligated to issue the shares.
On the grant date, fair value of the awards is recovered by Vedanta from the Group to the extent the awardees
have been deployed at the Group.
Accordingly, Vedanta, on the basis of fair value of options granted to such employees charged a proportionate
cost to the Group in the amount of `5.86 crores (Previous year `5.34 crores) which is charged to the Pro?t and
Loss Account under the head “Salaries, Wages, bonus and allowances” in Schedule 16 to the ?nancial statements.
Vedanta has obtained an overall valuation of the options granted by it to the awardees. Information related
to options granted to the eligible resources deployed at the Group is not readily available and accordingly the
movements in options have not been disclosed.
20. “Other current assets” comprise interest accrued on term deposits.
21. Previous year’s ?gures have been regrouped and rearranged wherever necessary to conform to this year’s
classi?cation.
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
(` in crore)
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
137
Notice is hereby given that the Forty-Sixth Annual General Meeting of Sesa Goa Limited will be held on Thursday, 21st
July, 2011 at 10.00 A.M. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa, to transact the
following business:
Ordinary business:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2011 and the Pro?t & Loss Account
for the year ended on that date and the Reports of the Directors and Auditors thereon.
2. To declare dividend.
3. To appoint a director in place of Mr. Ashok Kini who retires by rotation and being eligible ofers himself for
re-appointment.
4. To appoint a director in place of Mr. P.G. Kakodkar who retires by rotation and being eligible ofers himself for
re-appointment.
5. To appoint Auditors to hold ofce from the conclusion of this meeting until the conclusion of the next Annual
General Meeting and to ?x their remuneration.
Special Business:
6. To consider and, if thought ?t, to pass with or without modi?cation(s) the following resolution as Ordinary
Resolution:
“RESOLVED that Mr. J.P. Singh , who was appointed as an Additional Director by the Board of Directors at
their meeting held on 19th July, 2010 and who ceases to hold ofce at this Annual General Meeting pursuant
to Section 260 of the Companies Act, 1956 and who is eligible for appointment and in respect of whom the
Company has received a notice under Section 257 of the Companies Act, 1956 from a member proposing his
candidature for the ofce of a director, be and is hereby appointed as a Director of the Company liable to retire
by rotation.”
7. To consider and, if thought ?t, to pass with or without modi?cation(s) the following resolution as a Special
Resolution:
“RESOLVED that pursuant to Sections 309(4) and 310 of the Companies Act, 1956, authority be and is hereby
accorded to the Board of Directors to decide payment of commission to the Non-Wholetime Directors of the
Company, not being Managing/Wholetime Directors (in such manner as the Board of Directors may from time
to time determine) upto Rupees 75 lakhs per year computed in the manner laid down in Section 198(1) of the
Companies Act, 1956.”
By Order of the Board
SESA GOA LIMITED
C.D. CHITNIS
Secretary & AVP-Legal
Place : Panaji - Goa
Dated: 25th April, 2011
Notice of Annual General Meeting
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
138
NOTES:
A) The relative Explanatory Statement as required by Section 173 of the Companies Act, 1956, in regard to the
Special Business entered under Items 6 & 7 is annexed hereto.
B) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND
AND VOTE INSTEAD OF HIMSELF AND SUCH A PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE PROXY
FORM SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN
FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.
C) The Register of Members and Share Transfer Books of the Company will remain closed from Tuesday, 5th July,
2011 to Thursday, 7th July, 2011 (both days inclusive).
D) The dividend on Equity Shares, if declared at the Meeting, will be credited / dispatched between 21st July, 2011
and 19th August, 2011 to those members whose names shall appear on the Company’s Register of Members on
Monday 4th July, 2011; in respect of the shares held in dematerialised form, the dividend will be paid to members
whose names are furnished by National Securities Depository Limited and Central Depository Services (India)
Limited as bene?cial owners as on that date.
E) Members holding shares in electronic form may note that bank particulars registered against their respective
depository accounts will be used by the Company for payment of dividend. The Company or its Registrars and
Transfer Agents cannot act on any request received directly from the members holding shares in electronic form
for any change of bank particulars or bank mandates. Such changes are to be advised only to the Depository
Participant of the members.
F) Members holding shares in electronic form are requested to intimate immediately any change in their address or
bank mandates to their Depository Participants with whom they are maintaining their demat accounts. Members
holding shares in physical form are requested to advise any change of address immediately to the Company/
Registrars and Transfer Agents, M/s. Karvy Computershare Private Limited.
G) In accordance with the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956, the
amount of dividend for the Financial Year ended 31st March, 2003 and interim dividend for the ?nancial year
ended 31st March, 2004 which remained unpaid and unclaimed for a period of 7 years from the date of transfer
to the Unpaid Dividend Account of the Company has been transferred to the Investor Education and Protection
Fund established by the Central Government.
H) Pursuant to the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956 the amount
of ?nal dividend for the Financial Year ended 31st March, 2004 and dividend for the ?nancial year ended 31st
March, 2004 in respect of erspwhile SIL, and thereafter which remain unpaid and unclaimed for a period of
7 years from the date of transfer to the Unpaid Dividend Account of the Company shall be transferred to the
Investor Education and Protection Fund established by the Central Government and no claim shall lie against the
said Fund or the Company for the amounts of dividend so transferred to the said Fund. Shareholders, who have
not yet encashed their ?nal dividend warrants for the Financial Year ended 31st March, 2004 or any subsequent
?nancial years are therefore requested to make their claim to the Company without delay.
I) Members are requested to bring their Admission Slips along with copy of the Report and Accounts to the Annual
General Meeting.
J) Members, who wish to obtain any information on the Company or view the accounts for the Financial Year
ended 31st March, 2011 may visit the Company’s corporate website www.sesagoa.com or send their queries
atleast 10 days before the Annual General Meeting to the Company Secretary at the Registered Ofce of the
Company.
K) The information as required to be provided under the Listing Agreement with the Stock Exchanges, regarding the
Directors who are proposed to be appointed/re-appointed is given hereunder:
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
139
i) Name : Mr. Ashok Kini
Age : 65
Quali?cations : B.Sc/M.A./C.A.I.I.B (Certi?ed Associate, Indian Institute of Bankers)
Expertise : Retired as MD of State Bank of India in December 2005 after serving the bank for 38
years in various capacities. His areas of experties include Information Technology, Retail
Banking, Business Process Re-engineering and Change Management.
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. IndusInd Bank Limited Director Audit Member
2. Gulf Oil Corporation Limited Director Audit Member
3. UTI Trustee Co. Pvt. Ltd Director Audit Member
4. Financial Inclusion Network and Operations
Limited.
Director Audit Chairman
ii) Name : Mr. P. G. Kakodkar
Age : 74
Quali?cations : MA (Economics)
Expertise : Over 40 years of experience in State Bank of India (SBI ), Retired as Chairman of SBI.
He is currently IT & Banking Consultant.
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. Goa Carbon Limited Director Audit Remuneration Member
2 Uttam Galva Steel Ltd. Director Audit Member
3 Financial Technologies (India) Ltd. Director Audit Member
4 Fomento Resorts & Hotels Ltd. Director
5 Centrum Finance Ltd. Director
6 Auditime Information Systems (I) Private Limited. Director
7 Multi Commodity Exchange of India Ltd. Director
8 IBX Forex Ltd. Director
9 Anand Rathi Financial Services Ltd. Director
iii) Name : Mr. J.P. Singh
Age : 63
Quali?cations : M.A, MPA (Harvard), IAS Retd. (Rajasthan 1972)
Expertise : Former Secretary in Ministry of Finance (DOD) and Ministry of Mines, Special Secretary
labour and has over 36 years of executive experience in key positions in the state and
union government
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. BEML Limited Director Audit Chairman
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
140
ITEM NO. 6
Mr. J. P. Singh has been appointed as an Additional Director by the Board of Directors, at their meeting held on
19th July, 2010 and he holds the ofce upto this Annual General Meeting.
Mr. J. P. Singh is M.A, MPA (Harvard), IAS Retd. (Rajasthan 1972) and is former Secretary in Ministry of Finance (DOD)
and Ministry of Mines, Special Secretary Labour and has over 36 years of executive experience in key positions in
the state and union government. Your Directors are of the view that his continuation on the Board will enable the
Company to gain from his considerable experience and expertise, and therefore recommend for approval of the
resolution contained in Item no 6 of the notice convening the Annual General Meeting.
The Company has received a Notice in writing from a member under Section 257 of the Companies Act, 1956
alongwith a deposit of `500/- proposing the candidature of Mr. J.P. Singh for the ofce of Director. The Board
recommends his appointment.
No Director of the Company other than Mr. J.P. Singh is interested in the Resolution.
ITEM NO. 7
Section 309(4) of the Companies Act, 1956 provides that a Director who is neither in the wholetime employment of
the Company nor a Managing Director may be paid remuneration by way of commission, if the Company by special
resolution, authorises such payment.
The Shareholders at the Annual General Meeting held on 20th July, 2009, approved payment of commission to the
Non-Wholetime Directors of the Company, not being Managing/Wholetime Directors (in such manner as the Board of
Directors may from time to time determine) upto ` 50 lakhs per year. The shareholders have witnessed the growth of
the Company to which the contributions of Non Executive Directors has been vital. The recent trend of globalisation
of business, corporate governance, risk assessment requirement and international competition has made the role of
Non Executive Directors more imperative. It is, therefore, recommended to approve payment of commission upto
` 75 lakhs in addition to the fees for attending the meetings of the Board for period of three years with efect from
1st April, 2011.
All the Directors of the Company other than Managing/Wholetime Directors are deemed to be interested in the
Resolution to the extent the commission is payable to them in accordance with the proposed resolution.
By Order of the Board
SESA GOA LIMITED
C.D. CHITNIS
Secretary & AVP-Legal
Place : Panaji - Goa
Dated: 25th April, 2011
Annexure to Notice
Explanatory Statement Pursuant to Section 173 of the Companies Act, 1956
Sesa Goa Limited
Regd. Ofce:
‘Sesa Ghor’,
20 EDC Complex,
Patto, Panaji,
Goa - 403 001
ATTENDANCE SLIP
PLEASE FILL THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
(For demat holding) (For physical holding)
DP ID Folio No.
Client ID No. of Share(s) held
I hereby record my presence at the 46th ANNUAL GENERAL MEETING of the Company on Thursday, 21st July, 2011 at
10.00 a.m. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa.
Name of the equity shareholder/ proxy/ representative ..........................................................................................................................
Signature of the equity shareholder/ proxy/ representative ...................................................................................................................
Note: Shareholders are requested to bring the Attendance Slip with them when they come to the meeting and hand it over at the gate after afxing their signature on it.
Sesa Goa Limited
Regd. Ofce:
‘Sesa Ghor’,
20 EDC Complex,
Patto, Panaji,
Goa - 403 001
PROXY FORM
I/We ............................................................................................................................................................................................................................
..................................................................... of ...................................................................................................... being a member/members
of SESA GOA LIMITED, hereby appoint .......................................................................................................................................................... ..
........................................................................................ of...........................................................of failing him ............................................... of
or failing him ................................................................ of ........................................................................................................................................
as my/our proxy to vote for me/us and on my/our behalf at the 46th ANNUAL GENERAL MEETING of the Company on
Thursday, 21st July, 2011 at 10.00 a.m. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa
and at any adjournment thereof.
Signed this....................................................................... day of ....................................................................... 2011.
Folio No./DP ID and Client ID:
Address: Signature
Notes:
1. The proxy need NOT be a member.
2. The proxy form duly signed across revenue stamp should be submitted to the Company’s Registered Ofce at least 48 hours before the time of the meeting.
Afx
`. 1/-
Revenue
Stamp
Important Communication to Members
The Ministry of Corporate Afairs has taken a “Green Initiative in the Corporate Governance” by allowing paperless
compliances by the companies and has issued circulars stating that service of notice/ documents including Annual
Report can be sent by e-mail to its members. To support this green initiative of the Government in full measure,
members who have not registered their e-mail addresses, so far, are requested to register their e-mail addresses, in
respect of electronic holdings with the Depository through their concerned Depository Participants. Members who
hold shares in physical form are requested to ?ll the appropriate column in the members feedback form attached to
the Annual Report and register the same with Karvy Computershare Private Limited. Postage for sending the feedback
form will be borne by the Company.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
Name: ................................................................................................................ Email Id: ..................................................................................
Address: Phone No:
(with STD code)
DP ID: ....................................................................
Client ID: ...............................................................
Folio No.:
(in case of Physical Holding)
Number of Equity Shares Held:
(the period for which held) Signature of Member
Excellent Very Good Good Satisfactory Needs
improvement
1 Information in Annual Report:
a. Directors’ Report and Management’s
Discussion and Analysis
Contents
Presentation
b. Report on Corporate Governance Contents
Presentation
c. Quality of Financial and non-?nancial
information in the Annual Report
Contents
Presentation
2. Information on Company’s Website Contents
Presentation
3. Conduct of Annual General Meeting
4. Extent of satisfaction with the responses
received from the Secretarial Department
of the Company
5. Extent of Satisfaction with Karvy
Computershare Private Limited’s services
in the following activities:
a. Demat/Remat of Shares
b. Transfer of Shares
c. Transmission of Shares
d. Sub-Division/ Consolidation/ Renewal of
share certi?cates
e. Issue of duplicate share certi?cates
f. Disbursement of dividend - Timely
receipt of Dividend Warrants/payment
through ECS
g. Recording of Nomination/ Bank Mandate/
NECS/ Change of address details
h. Timely receipt of Annual Report
i. Turnaround time for response to
shareholder Query
j. Reminders before transfer of unclaimed
dividends to Investor Education and
Protection Fund
k. Quality of Response
l. Investor Services
m. Overall rating
Views/Suggestions for improvement, if any ...
Members are requested to send this feedback form to the address given overleaf
Members Feedback Form 2010-2011
Board of Directors:
P. G. Kakodkar
Kuldip K. Kaura
Jagdish P. Singh
Gurudas D. Kamat
Ashok Kini
A. Pradhan
Whole Time Director
A. K. Rai
Whole Time Director
P. K. Mukherjee
Managing Director
Secretary:
C. D. Chitnis
Auditors:
M/s. Deloitte Haskins & Sells
Chartered Accountants,
Mumbai
Registered Ofce:
Sesa Goa Limited
Sesa Ghor, 20 EDC Complex,
Patto, Panaji,
Goa - 403 001,
INDIA.
Transfer Agents
Karvy Computershare Private Limited,
Plot No. 17-24, Vittal Rao Nagar,
Madhapar, Hyderabad – 500 081
Phone: 040 23420815-28
Fax: 040 23420814
Email: [email protected]
[email protected]
www.karvycomputershare.com
Bankers:
Canara Bank
State Bank of India
ICICI Bank Limited
Mining and other establishments:
In the states of Goa and Karnataka of India
Corporate Information
Sesa Goa Limited
Sesa Ghor, 20 EDC Complex,
Patto, Panaji,
Goa - 403 001, INDIA.
Tel.: +91 832 2460 600
www.sesagoa.com
This annual report is printed on Eco-Friendly paper
D
e
s
i
g
n
e
d
,
P
r
o
c
e
s
s
e
d
&
P
r
i
n
t
e
d
b
y
K
A
R
V
Y
C
O
M
P
U
T
E
R
S
H
A
R
E
P
V
T
.
L
T
D
.
,
U
n
i
t
:
S
e
s
a
G
o
a
L
i
m
i
t
e
d
P
l
o
t
N
o
.
1
7
-
2
4
,
V
i
t
t
a
l
R
a
o
N
a
g
a
r
,
M
a
d
h
a
p
u
r
,
H
y
d
e
r
a
b
a
d
-
5
0
0
0
8
1
.
I
N
D
I
A
.
P
E
R
M
I
T
N
O
:
H
D
C
/
B
-
7
3
5
C
Y
B
E
R
A
B
A
D
P
O
S
T
O
F
F
I
C
E
M
A
D
H
A
P
U
R
,
H
Y
D
E
R
A
B
A
D
-
5
0
0
0
8
1
B
U
S
I
N
E
S
S
R
E
P
L
Y
E
N
V
E
L
O
P
E
P
O
S
T
A
G
E
W
I
L
L
B
E
P
A
I
D
B
Y
T
H
E
A
D
D
R
E
S
S
E
E
N
O
P
O
S
T
A
G
E
S
T
A
M
P
N
E
C
E
S
S
A
R
Y
I
F
P
O
S
T
E
D
I
N
I
N
D
I
A
doc_361706833.pdf
The report for the financial year 2010 - 2011 of sesa goal.
Sesa Goa Limited
Annual Report 2011
Delivering
Growth
Long term value
Sustainability
Our Values
Entrepreneurship
We foster an entrepreneurial spirit
throughout our businesses and value the
ability to foresee business opportunities
early in the cycle and act on them swiftly.
Whether it be developing organic growth
projects, making strategic acquisitions
or creating entrepreneurs from within,
we ensure an entrepreneurial spirit
at the heart of our workplace.
Growth
We continue to deliver growth and
generate signi?cant value for our
shareholders. Moreover, our organic
growth pipeline is strong as we seek to
continue to deliver signi?cant growth
for shareholders in the future. We have
pursued growth across all our businesses
and into new areas, always on the
basis that value must be delivered.
Excellence
Achieving excellence in all that we do is
our way of life. We strive to consistently
deliver projects ahead of time at industry-
leading costs of construction and within
budget. We are constantly focused
on it with aspiring to achieve a top
decile cost of production in each of our
businesses. To achieve this, we follow a
culture of best practice benchmarking.
Trust
Te trust that our stakeholders place
in us is key to our success. We recognise
that we must responsibly deliver on
the promises we make to earn that
trust. We constantly strive to meet
stakeholder expectations of us and
deliver ahead of expectations without
compromising our other values.
Sustainability
We practice sustainability within the
framework of well de?ned governance
structures and policies and with the
demonstrated commitment of our
management and employees. We aim
not only to minimise damage to the
environment from our projects but
to make a net positive impact on the
environment wherever we work.
Mission
To maximise stakeholder wealth by exploiting
core skills of iron ore mining, coke and
iron making
To constantly seek high levels of productivity
and technical efciency; to maintain
technological superiority over competitors
To aggressively seek additional resources
To maintain costs in the lowest
quartile globally
To be an organisation with best-in-class people
and a performance driven culture by attracting
and retaining quality manpower
To continue to maintain pre-eminent position in
safety, environment and quality control
management in the respective industry sectors
To contribute to the development of the
communities that the Company operates in
or have in?uence on its business activities
Our Vision
To be one of the top four iron ore
mining companies in the world
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
1
Sesa Goa Limited Annual Report 2011
Company Overview
02 Our Operations
03 Highlights
04 Chief Executive’s Statement
08 Board of Directors
10 Creating Shareholder Value
Business Review
11 Market Overview
13 Financial Highlights
16 Business Segment Review
17 Iron Ore
20 Pig Iron
21 Met Coke
22 Human Resource
23 Risks and Uncertainties
Sustainability
24 Health Safety and Environment
27 Corporate Social Responsibility
Corporate Governance
33 Directors’ Report
39 Annexure-A to Directors’ Report
40 Annexure-B to Directors’ Report
41 CEO / CFO Certi?cation
42 Report on Corporate Governance
60 Auditors’ Certi?cate on Compliance of
Conditions of Corporate Governance
105 Auditors’ Report on the Consolidated
Financial Statements
106 Consolidated Balance Sheet
107 Consolidated Pro?t and Loss Account
108 Consolidated Cash Flow Statement
110 Schedules Annexed to and Forming
Part of the Balance Sheet
118 Schedules Annexed to and Forming
Part of the Pro?t and Loss Account
121 Notes Forming Part of the Accounts
137 Notice of Annual General Meeting
Attendance / Proxy (Annexed)
Financial Statements
61 Auditors’ Report
62 Annexure to the Auditors’ Report
64 Balance Sheet
65 Pro?t and Loss Account
66 Cash Flow Statement
68 Schedules Annexed to and Forming
Part of the Balance Sheet
76 Schedules Annexed to and Forming
Part of the Pro?t and Loss Account
79 Notes Forming Part of the Accounts
102 Balance Sheet Abstract and
Company’s General Business Pro?le
103 Sesa Goa Limited Ten Year Record
104 Statement Pursuant to Section 212 of
the Companies Act, 1956
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
2
Our Operations
Sesa Goa is India’s
largest private sector
iron ore producer
and exporter. It also
produces pig iron and
metallurgical coke.
06
01
05
02
01 Codli Mines
02 Sonshi/Surla Mines
03 Bicholim Mines
04 A Narrain Mine
05 Pig Iron Plant
06 Met Coke Plant
India
Goa
04
03
Note: Map not to scale
Major operating mines are shown in the map
Iron Ore Operations
Pig Iron Operations
Met Coke Operations
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
3
Sesa Goa Limited Annual Report 2011
Consolidated Financial Summary
(in ` crore, except as stated)
2011 2010 Change
Net Income from Operations 9,205 5,859 57%
EBITDA 5,214 3,156 65%
EBITDA Margin 57% 54%
Net Pro?t (PAT) 4,222 2,639 60%
Earnings Per Share (`)
Basic 49.17 32.41 52%
Diluted 48.17 31.62 52%
Highlights
Financial Highlights
` Consolidated EBITDA of ` 5,214 crore, up 65%
` Consolidated PAT of ` 4,222 crore, up 60%
` Basic Earnings per share of ` 49.17 up 52%
` Dividend proposed at ` 3.50 per share as against of
` 3.25 per share declared in the previous year
` Strategic Investment – to acquire 20% stake in
Cairn India Limited.
Business Highlights
` Iron ore capacity expansion is progressing well;
planned investment of approximately US$ 500
million for Goa and Karnataka
` Expansion of Pig Iron and Met Coke on track for
completion by Q3 FY2012
` Acquired the upcoming steel plant assets of Bellary
Steel & Alloys Limited for a cash deal of ` 220 crore
` Amalgamation of Sesa Industries Limited with Sesa
Goa Limited completed
` Exploration - Gross addition of 53 million tonnes of
reserves and resources taking the total R&R to 306
million tonnes
0
2000 4000 6000 8000 10000
2006-07
2007-08
2008-09
2009-10
2010-11
Total Revenues (` crore)
0
1000 2000 3000 4000 5000
2006-07
2007-08
2008-09
2009-10
2010-11
Pro?t After Tax (` crore)
0
3000 6000 9000 12000 15000
2006-07
2007-08
2008-09
2009-10
2010-11
Net Worth (` crore)
0
5 10 15 20 25
2006-07
2007-08
2008-09
2009-10
2010-11
Iron Ore Sales (Mln Tn)
0 50 100 150 200 250 300
2006-07
2007-08
2008-09
2009-10
2010-11
Pig Iron Sales (’000 Tn)
0 50 100 150 200 250 300
2006-07
2007-08
2008-09
2009-10
2010-11
Met Coke Sales (’000 Tn)
Delivering Sustainable Shareholder Value
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
4
Dear Shareholders,
2010-11 has been a mixed year for Sesa Goa Limited.
There was plenty of good news. First, the year
saw the global economic crisis becoming a thing
of the past, with both advanced and emerging
economies registering positive
growth during 2010. This
contributed to resurgence in
steel demand. Second, global
iron ore consumption increased
signi?cantly and demand remained
robust throughout the year. Third,
steel output in China continued to
grow, and with it the demand for
imported iron ore and price.
These positive market conditions
contributed to a 52% increase
in Sesa Goa’s turnover. With this
growth, Sesa Goa today is an
enterprise with a gross turnover exceeding US$ 2
billion.
There were also some factors that adversely afected
our production and sales of iron ore. In an efort to
curb illegal mining, the Government of Karnataka
banned export of iron ore mined in the state since end
July 2010. In addition longer than normal monsoons
in Goa and logistics constraints in Orissa and Goa
further afected ore sales. Despite these constraints,
your Company managed to nearly maintain
production and sales volume levels at par with 2009-10.
International developments in 2010-11 has further
strengthened our conviction of Sesa Goa’s strategic
positioning. In the near future, there is considerable
market potential for a low cost producer like Sesa
Goa to efciently service the global seaborne iron ore
trade. There are, however, some external uncertainties
on the supply side, which are causes for concern.
Sesa Goa is continuously working on reorienting its
plans to meet these challenges. In addition, in 2010-
11, we have taken some long term steps and utilised
our strong cash reserves for strategic investments.
The Macroeconomic Environment
It seems clear that the worst is behind us, and global
economic recovery is on its way. After contracting by
0.5%, world output growth is back
in positive territory at 5%. Emerging
and developing economies continue
to drive most of this growth.
Renewed growth has revived steel
demand. Global crude steel output
increased by 16.8% in 2010. This
provided for strong demand pull
right across the ferrous metal value
chain.
China and India are back on their
high growth momentum. India
grew by 8.6% in 2010-11, while
China recorded a growth of around
10% in 2010. There are some causes of concern in
terms of overheating, but the quarter-on-quarter
Chief Executive’s Statement
Delivering
strong results
“These positive market
conditions contributed
to a 52% increase in Sesa
Goa’s turnover. With this
growth, Sesa Goa today is
an enterprise with a gross
turnover exceeding US$ 2
billion.”
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
5
Sesa Goa Limited Annual Report 2011
growth rates still do not indicate
that these two countries will see a
signi?cant slowdown in the near
future.
Nevertheless, there are some
worries. One of these is high
producer and consumer price
in?ation across emerging markets,
especially in India and China. In
the short term, higher commodity
prices augur well for a company
like Sesa Goa. However, high and
rising cost-push in?ation can
cause social problems in emerging
economies and hinder long term
growth. Already, in an attempt to
curb in?ation, the Reserve Bank of
India has increased interest rates
on seven occasions since April
2010 — the last one being a hike of
50 basis points. Such high interest
rates can have a negative impact on
investments and future growth. So
too oil prices, which remain at high
levels.
The Business Environment
As stated in earlier annual reports,
over the last few years Sesa Goa has
developed a growth strategy with
a focus on serving the increasing
demand for iron ore, especially in
emerging economies, but in most
responsible manner.
Consider China. With a reduction
in steel output in that country in
the second half of calendar 2010,
there were fears of a slowdown in
iron ore imports. It turned out to be
a temporary aberration. China was
at the cusp of two diferent growth
phases. Projects that were part of
the earlier ?scal stimulus were being
completed; hence, steel demand
was tapering of. However, from the
beginning of calendar 2011, China
has launched another round of
economic growth initiatives, with
the focus on social housing and
infrastructure, especially railways.
This has led to major growth in
steel output in China in Q1, 2011,
which has increased both iron ore
imports and prices. This phase of
’steel-led’ GDP growth is expected
to continue in the near future, with
high demand from the construction
industry. In the long run, however,
there will be some slowdown in the
Chinese steel sector as the country
matures into being more consumer-
driven economy.
We are optimistic that the strategic
positioning of Sesa Goa with its low
cost capabilities, easy accessibility
to ports and strong customer
relations will hold us in good stead
to mitigate any downside risks and
exploit the upside opportunities.
I have touched upon the supply
side constraints that we faced as an
Indian iron ore mining enterprise.
The other major iron ore exporting
country like Brazil, also faced issues
regarding environmental clearances
and port logistics. Thus, there were
global supply side constraints in
the seaborne iron ore trade. Hence,
in an environment of fast growing
Chinese demand, the prices of iron
ore increased in the latter half of
2010-11.
Performance
The Company sold 18.1 million
tonnes of iron ore (20.4 million
tonnes on a wet metric tonne or
WMT basis) in 2010-11, which was
marginally lower than the 18.4
million tonnes of iron ore (20.5
million tonnes on a WMT basis) sold
in 2009-10. However, external sales
revenue from iron ore increased by
62% — from ` 5,170 crore in 2009-10
to ` 8,387 crore in 2010-11.
This trend was replicated in the
pig iron business. Although sales
volumes decreased by 5%, external
sales revenues grew by 22% to
` 674 crore in 2010-11.
Sales and production volumes of
metallurgical coke (met coke) were
almost similar at 252,074 tonnes and
263,269 tonnes respectively in 2010-
11. External sales revenues increased
by 6% to ` 152 crore in 2010-11.
Sesa Goa’s net income from
operations grew by 57% to ` 9,205
crore in 2010-11. EBITDA by 65%
to ` 5,214 crore in 2010-11. PAT
increased by 60% to ` 4,222 crore,
and diluted earnings per share grew
from ` 31.62 in 2009-10 to ` 48.17 in
2010-11.
We remain focused on cost control
and productivity. These eforts have
helped to partially ofset the higher
export duties paid out in 2010-11.
Healthy accruals during the year
contributed further to our strong
cash position. As of 31st March,
2011, Sesa Goa had cash and cash
equivalents of ` 10,682 crore. We
have used this healthy cash reserve
to make commitments to strategic
investments that should generate
high returns and diversify the
Company’s business — to which I
now turn.
“We are optimistic that the strategic positioning
of Sesa Goa with its low cost capabilities, easy
accessibility to ports and strong customer
relations will hold us in good stead to mitigate
any downside risks and exploit the upside
opportunities”.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
6
Strategic Developments
We have made two long term
commitments in 2010-11.
The ?rst is a commitment to buy
20% stake in Cairn India Limited
(CIL) as part of the Vedanta Group’s
bid to buy majority stake in that
entity. The value of the 20% stake
is estimated at around US$3 billion.
This will be a ?nancial investment
for Sesa Goa that provides the
Company an opportunity to earn
superior returns in an investment
in a leading hydrocarbons
enterprise, which will bene?t
from value creation as part of the
Vedanta Group while providing
the protection of participating in a
controlling interest.
The proposed takeover by the
Vedanta Group is presently awaiting
Government of India approvals.
In a major development post the
end of the ?nancial year but prior
to writing this letter, we acquired
200 million shares amounting to
10.4% stake in CIL from Petronas
International Corporation Ltd. in
a block deal at a price of ` 331 per
share.
The open ofer closed on 30th
April, 2011. Some 155 million shares
representing approximately 8.1%
of the share capital of Cairn India
Ltd. have been tendered. The total
consideration to be paid for these
tendered shares is ` 5,504 crore
(approximately US$ 1,241 million) at
the ofer price of `355 per share.
Thus, post the open ofer, Sesa Goa
will have 18.5% stake in Cairn India
Ltd — 8.1% from the shares tendered
during the tenure of the ofer, and
another 10.4% from Petronas.
The second is a move to diversify
up the ferrous metal value chain.
We acquired the assets of the
upcoming steel plant unit of Bellary
Steel and Alloys Limited for an all
cash deal of ` 220 crore. Apart from
the direct bene?ts of leveraging
growing opportunities in the Indian
steel sector, this acquisition should
allow us to add value to the iron ore
mined in the state of Karnataka.
At this juncture, it gives me great
pleasure to inform you that the
long pending case regarding the
amalgamation of Sesa Industries
Limited, the subsidiary that
produces pig iron, and Sesa Goa
?nally received the approval of the
Supreme Court. The merger was
completed in February 2011.
I am also pleased to inform you that
we have successfully integrated
the operations of Sesa Resources
Limited (SRL) and the Sesa Mining
Corporation (SMC) — the erstwhile
V S Dempo Limited — with the
Company’s operations. SRL and
SMC continue to perform to
expected levels. We have also
added additional resources in SRL
and SMC post-acquisition through
explorations, thus reinforcing our
sustainable growth strategy.
Growth and Long Term Value
In last year’s annual report, I had
stated our iron ore vision of 50
million tonnes (mt) production and
sales by 2012-13. There has been a
revision to this. In 2010-11, we did
not renew our agreement for third
party operations at the Thakurani
mines in Barbil, Orissa, due to
unfavourable commercial terms,
and terminated our operations in
Orissa. We continue to maintain our
target for increasing ore production
in Goa and Karnataka to 40 mt.
Exploration activities continue as
planned, with 53 mt being added to
the gross reserves and resources. As
on 31st March, 2011, the Company’s
total reserves and resources were
306 mt.
We have progressed on all the
projects to double our iron ore
capacities — and also increasing pig
iron capacities by 375,000 metric
tonnes (MT) . Regarding iron ore,
in 2010-11, although we made
satisfactory progress in logistics,
mining and processing capacities,
however we are awaiting certain
statutory clearances. Expansion of
the pig iron capacity is progressing
well, for completion by Q3, 2011-12.
Sustainability
Sesa Goa remains committed to
sustainable development, which
focuses on maintaining a pre-
eminent position in health, safety
and environment practices, and in
contributing to the development of
communities where it operates. All
our locations, are certi?ed for ISO
9001, ISO 14001 and OHSAS 18001
— except for SRL which is yet to be
certi?ed for OHSAS 18001.
Health and safety always remained a
priority for Sesa Goa. The Company
continues to take a proactive role
in providing the employees a safe
working environment through
responsibility, training, monitoring
and implementing the best safety
practices across all locations.
In 2010-11, our Lost Time Injury
Frequency Rate (LTIFR) reduced
from 1.13 in 2009-10 to 0.86 per
million hours worked in 2010-11.
I am also happy to report that the
Met Coke Division (MCD) achieved
zero lost time accidents for the last
two consecutive years. 2010-11
also saw the Pig Iron Division (PID)
achieve zero lost time accidents.
Nevertheless, I must inform with
deep regret of a fatality, which
occurred at a jetty in Goa where
a barge sailor lost his life in an
accident. We have thoroughly
investigated the causes, and put in
the necessary safety measures.
The community development work
— through the Sesa Community
Development Foundation, Mineral
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
7
Sesa Goa Limited Annual Report 2011
Foundation of Goa and speci?c
need based initiatives — continues
to focus on social projects in line
with our over-all sustainability
objectives. More details on health,
safety, environment and corporate
social responsibility are given in the
chapter on Management Discussion
and Analysis.
In 2010-11, Rs 2,571 crore was
paid by your company in the form
of various taxes, duties, levies,
royalties, etc to Government of India
and other Government agencies.
Outlook
For the near term, we remain
optimistic about the prospects of
iron ore demand and consequently
the price, in the global seaborne
trade. In line with consensus
expectations, we expect global
de?cit in iron ore to continue for
the next two years. In the longer
term, the market will move towards
equilibrium at lower prices as new
capacities for iron ore come on
stream.
On the cost front, we expect
royalty rates, railway & road freight
and export duties to exert some
pressure, while volumes could
be challenged by uncertainties in
policy decisions and hurdles in
logistics. We remain cautiously
optimistic of overcoming such
obstacles.
Corporate Governance
You would recall that in 2009-
10, Sesa Goa was subjected to
investigation by the Serious Fraud
Investigation Ofce, Ministry of
Corporate Afairs, New Delhi. The
investigation is still in progess.
Further update on this issue will be
provided in due course.
Acknowledgement
I would like to take this opportunity
to thank all our employees,
employee unions, my colleagues
at the executive team of Sesa, the
Group Management and the Board
of Directors for their unwavering
support in helping us enhance our
position as the India’s leading iron
ore company.
Thanks are also due to government
departments & authorities, village
panchayats, our solicitor & counsels,
consultants, suppliers, contractors,
various, port authorities and all
other business associates.
We recently announced that our
Chairman, Mr SD Kulkarni, has
stepped down from the Board after
serving the Company for 10 years.
On behalf of the Board of Directors,
I would like to take this opportunity
to thank, Mr Kulkarni for his
substantial contributions, and for
guiding Sesa Goa to its pioneering
position.
The Company has recently
appointed Mr Jagdish P Singh and
Mr Ashok Kini as Directors, subject
to the approval of shareholders
in the Company’s ensuing annual
general meeting. I welcome them
on board and look forward to their
support and guidance in taking Sesa
Goa to new levels of success.
My thanks to our shareholders
for reposing faith in our business.
Let me say to them, “We have the
ability. We have the desire. And we
have the belief that we can and will
deliver our targets.”
P K Mukherjee
Chief Executive Ofcer /
Managing Director
5th May, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
8
Board of Directors
Left to right: Kuldip K. Kaura, Jagdish P. Singh, Amit Pradhan, Arun K. Rai, Ashok Kini, Gurudas D. Kamat, Prasun K. Mukherjee
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
9
Sesa Goa Limited Annual Report 2011
Mr. Pandurang G. Kakodkar
Director
Pandurang G. Kakodkar is a non-
executive independent Director of
SGL. He holds a Postgraduate in M.A.
(Economics) from Bombay University
and was appointed as Director of SGL on
31st March, 2000.
He has over 41 years of experience
in the State Bank of India, retiring as
the Chairman in 1997. He is currently
a private information technology
and banking consultant. His other
directorships include: Goa Carbon
Ltd., Uttam Galva Steel Ltd., Financial
Technologies (India) Ltd., Auditime
Information Systems (I) Private Ltd.,
Fomento Resorts and Hotels Ltd.,
Centrum Finance Ltd., Multi Commodity
Exchange of India Ltd., IBXForex Ltd. and
Anand Rathi Financial Services Ltd.
Mr. Kuldip K. Kaura
Director
Kuldip K. Kaura is a non-executive
Director of SGL. Mr. Kaura is currently
Chief Executive Ofcer and Managing
Director of ACC Limited. Mr. Kaura was
appointed as Director of SGL on 30th
October, 2007.
He holds a Bachelor of Engineering
(Hons) in Mechanical Engineering from
Birla Institute of Technology & Science,
Pilani.
Mr. Kaura retired as the Chief Executive
Ofcer of Vedanta Resources plc in
September 2008. Before joining the
Vedanta group, Mr.Kaura served at ABB
India for 18 years and was the Managing
Director and Country Manager from
1998 to 2001. He has served as member
of National Council of Confederation of
Indian Industries and is ofce bearer of
such professional bodies.
Mr Jagdish P. Singh
Director
Jagdish P. Singh is a distinguished civil
servant with over 37 years of executive
experience in key positions in the
Union and State Government. He is
an alumnus of the Harvard University
where he attended the Kennedy School
of Government as a Mason Fellow. He
also holds a Master’s degree from the
University of Allahabad.
Mr. Singh has occupied varied positions
in his career such as district and
divisional administrator, to later working
as Chief Executive and Chairman of the
Board of numerous corporate bodies. He
was responsible for turning around of
several State and Central corporations
engaged in Industrial and Services
activities such as Tourism, Infrastructure,
Co-operative Finance, Mining and
Minerals exploration. He initiated
measures in amendments in Labour
Laws. He shaped the new National
Mineral Policy in 2008 and piloted its
passage.
He has conducted bilateral and country
speci?c discussions to further joint
economic activities with South Africa,
Australia and Indonesia.
Mr. Amit Pradhan
Whole Time Director, Director - Iron
& Coke
Amit Pradhan is a Whole Time Director
of SGL. Currently responsible for the
Group’s business in Pig Iron, Coke and
Power, Mr. Pradhan joined SGL in January
1990 as Manager - Purchase. Mr Pradhan
holds a Postgraduate in M.Sc. (Physics)
from the Indian Institute of Technology,
Delhi. Mr. Pradhan was appointed as
Director of SGL on 1st July, 2000.
He has 33 years of experience in
materials/project management and
Business Development. Mr. Pradhan was
appointed as Whole Time Director of the
Company efective from 1st May, 2006.
He is also distinguished and listed by the
International Who’s Who Professionals
in 2007.
Mr. Arun K. Rai
Whole Time Director, Director -
Production and Logistics
Arun K. Rai is a Whole Time Director of
SGL. Mr. Rai holds a degree in Mining
Engineering from Banaras Hindu
University. Mr. Rai was appointed as
Director of SGL on 1st February 1999.
He has 35 years of experience in the ?eld
of Mining and allied areas. Mr. Rai was
re-appointed as Whole Time Director of
the Company efective from 1st February,
2009.
Mr. Ashok Kini
Director
Ashok Kini is a non-executive
independent Director of SGL. He holds
a Postgraduate from Madras Christian
College, Chennai.
Mr. Ashok Kini is former Managing
Director, State Bank of India. He was
responsible for the Bank’s IT plans,
from concept and RFP to execution
and vendor management, domestic
distribution, retail business, consumer
banking, marketing/brand management,
etc. He is currently on Board of IndusInd
Bank Limited, Gulf Oil Corporation
Limited, UTI Asset Management
Company and Financial Information
Network & Operations Pvt. Limited.
Mr. Gurudas D. Kamat
Director
Gurudas D. Kamat is a non-executive
independent Director of SGL. Mr. Kamat
retired as Chief Justice of Gujarat High
Court in January 1997. Mr. Kamat is
engaged in judicial work relating to
arbitration and conciliation. Mr. Kamat
was appointed as a judge of the Bombay
High Court on 29 November, 1983. Mr.
Kamat was appointed as Director of SGL
on 23rd December, 2005.
He has over 46 years of experience in
the ?eld of legal practice and judiciary,
having practiced in Bombay as well
as in Goa in various branches of law.
Mr. Kamat was prosecutor for the
Government of Goa from 1967 to 1969
and was a member of the senate and
faculty of law of Bombay University from
1978 to 1980. From 1980 onwards, Mr.
Kamat was an advocate for the Customs
and Central Excise Departments of the
Government of India.
Mr. Prasun K. Mukherjee
Managing Director
Prasun K. Mukherjee is the Managing
Director of SGL since April 2006. Mr.
Mukherjee holds a Bachelor of Commerce
(Hons) degree from Calcutta University.
He is a fellow member of the Institute of
Chartered Accountants of India and an
associate member of the Institute of Cost
and Works Accountants of India.
He has around 32 years of experience in
?nance, accounts, costing, taxation, legal
and general management. Mr. Mukherjee
was rated as one of India’s Best Chief
Financial Ofcers (CFOs) in the year
2005 by Business Today magazine and in
2009, Business World magazine declared
Mr. Mukherjee as India’s most ‘Value’able
CEO.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
10
We are India’s largest producer and exporter of iron ore
committed to providing superior returns and mining
responsibly
Creating Shareholder Value
Organic growth
We have doubled our capacities in
the last 3 years and similar growth
programs are on track to further
enhance our existing operations.
We have continuously increased our
resource base through extensive
exploration.
Additional investment opportunities
Our ?rst acquisition having enabled us
to deliver industry leading growth, we
continue to selectively pursue value
enhancing opportunities where we can
leverage our skills and experience.
Optimise returns
We have a culture of continuous
improvement, and are focused on
maintaining our low cost position. We
are leveraging the Sesa Resources iron
ore acquisition to realise synergies.
Group structure
Our priority is to create value for all
our shareholders through optimising
the capital structuring and means of
delivering returns.
People
Our people are the foundation of
our business and a key ingredient
for our success. Our people strategy
is founded on the recruitment,
development and retention of the
talented men and women who run and
grow our businesses.
Community and Environment
We are committed to the goal of
sustainable development by adopting
leading global standards of health,
safety & environmental management
and community development.
Our expansion programmes
of doubling our current
capacities across all our
businesses are progressing
well.
Gross addition of over 170 mt
of R&R in last 3 years.
Acquisition of assets of
upcoming steel plant of
Bellary Steel and Alloys
Limited
Strategic Investment -
Acquisition of 20% stake in
Cairn India Limited
EBITDA up 65% to ` 5,214
crores, Earnings per share
up 52% to ` 49.17, Proposed
dividend of ` 3.50 per share.
Amalgamation of Sesa
Industries Limited with Sesa
Goa Limited completed
Successfully integrated the
operations of Sesa Resources
Ltd. with Sesa Goa Ltd.
Around 4,600 employees,
including +680 professionals.
LTIFR reduced by 60% over a
period of 5 years.
Touching lives of thousands
of persons directly &
indirectly through its
continuous community
development initiatives.
Growth
Long term
value
Sustainability
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
11
Sesa Goa Limited Annual Report 2011
Market Overview
Sesa Goa Limited (or ‘Sesa Goa’
or ‘the Company’) is part of the
Vedanta Group, a diversi?ed global
metals and mining major. It drives
the Group’s ferrous minerals
business with a commitment to
create a world class enterprise
through high quality assets,
competitive cost of production and
superior returns to shareholders.
The Company’s core business is
iron ore mining. Today, it is India’s
largest private sector iron ore
producer and exporter. In addition,
Sesa Goa produces pig iron, met
coke and provides proprietary
technology in coke manufacturing.
While all these businesses have their
focused markets, their performances
have a strong relationship to the
prevailing economic environment.
Macroeconomic Developments
2010-11 saw the global economic
recovery gaining strength. After a
de-growth of 0.5% in 2009, world
economic output rebounded
strongly to register 5% growth in
2010. Much of this impetus came
from developing and emerging
economies, which witnessed 7.3%
growth in 2010 compared to 2.7% in
2009. Thankfully, even the advanced
economies recovered from a 3.4%
contraction in output in 2009 to a
growth of 3% in 2010 (see Chart A).
Economic growth has a direct
linkage to steel and, hence, iron ore
demand. By October 2010, industrial
production in emerging economies
such as India and China had already
surpassed the pre-crisis levels. Even
some of the advanced economies
witnessed a pick-up in industrial
production.
There is, however, some fear of
overheating in key emerging
markets such as China and India. In
an environment of rising domestic
demand, supply side constraints and
increased speculative activities are
leading to sharp rise in commodity
prices — such as hydrocarbons,
crude oil, minerals, metals and
food. With higher consumer and
producer price in?ation in all key
emerging markets, especially India
and China, it is not surprising that
central banks are raising interest
rates and tightening money supply.
This carries two risks: ?rst, higher
cost of ?nance afecting consumer
demand, current pro?tability and
future investments; and second, the
possible slowing down of economic
growth.
Having said so, the fact is that two
of Sesa Goa’s primary markets —
China and India — have continued
Source: IMF estimates
Source: CSO, National Bureau of Statistics,
China
Source: World Steel Association
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8
Emerging and
Developing
Economies
Advanced
Economies
World
Output
Chart A: Output growth (%)
2009
2010
0 2 4 6 8 10 12
Q4, 2010
Q3, 2010
Q2, 2010
Q1, 2010
Q4, 2009
Q3, 2009
Q2, 2009
Q1, 2009
Q4, 2008
Q3, 2008
Q2, 2008
Chart B: Real GDP growth (%)
China
India
0
400
800
1,200
1,600
J
a
n
-
1
1
J
u
l
-
1
0
J
a
n
-
1
0
J
u
l
-
0
9
J
a
n
-
0
9
J
u
l
-
0
8
J
a
n
-
0
8
J
u
l
-
0
7
J
a
n
-
0
7
Chart C: Global crude
steel production (million tonnes)
Pre-Crisis
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
12
to grow at high rates. Chart B
shows how, from the third quarter
of calendar 2009, both China and
India have registered strong growth
rates with the trend continuing
throughout 2010. Advanced
estimates suggest that while China
grew by around 10% in 2010, India
will register GDP growth of 8.6% in
2010-11.
The Global Iron and Steel Market
The macroeconomic environment
has a signi?cant bearing on
global steel demand and supply.
Estimates suggest that global steel
consumption has grown by around
1.5x of world GDP growth over the
last decade. Steel consumption
has gained traction with global
economic recovery. Chart C shows
that after the dip in mid-2008, world
crude steel production started
recovering in 2009; and by March
2010 it exceeded the pre-crisis level.
Global steel production rose by
16.8%, to 1,414 million tonnes in
2010. With a share of over 44%,
China continued to be the driving
force in the industry. Crude steel
output in China grew by 9.3% to 627
million tonnes.
There were apprehensions in some
quarters about a possible long term
slowdown in the output of Chinese
steel, on account of the completion
of many government-backed
stimulus projects and restrictions
levied by the Chinese government
on energy inefcient steel
producers. That has not happened.
The ?rst quarter of 2011 has again
seen a strong uptick in Chinese
steel production, driven mainly by
the demand for social housing in
the interior provinces of China and
railways.
In the short- to medium-term,
therefore, Chinese steel production
is expected to continue to grow
fairly rapidly. However, over a longer
horizon, one could expect China’s
steel intensity to start declining as
the economy moves away from
being investment-driven to being
more consumption determined.
The growth in steel output resulted
in strong demand for iron ore
and met coke. This, coupled with
logistics and environment related
constraints on the supply side, saw
signi?cant increases in prices of
these raw materials during much of
2010-11.
With its low cost production base
and focus on growing markets,
such as China and India, 2010-11
has been a favourable year for Sesa
Goa. However, from the supply side,
there were some issues, mainly
regulatory in nature, that prevented
further growth. These are detailed in
the business segment review.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
13
Sesa Goa Limited Annual Report 2011
Financial Highlights
Growing demand and greater operational efciencies have contributed to
record sales and pro?ts. It should be noted that after the acquisition of SRL
in 2009-10, nine month of its operations were consolidated in the accounts
for the previous year, versus all twelve months in 2010-11. Table 1 gives the
summarised consolidated pro?t and loss account of Sesa Goa.
Table 1: Abridged Consolidated Pro?t and Loss Account of Sesa Goa
(` in crore)
Particulars 2010-11 2009-10
INCOME
Gross sales 10,151 6,654
Less: Excise duty 64 44
Less: Ocean freight 943 812
Add: Other operating income 61 61
Net Income from Operations 9,205 5,859
EXPENDITURE
Production and operational expenses 3,866 2,616
Administration expenses and selling expenses 133 94
Exchange (gain)/loss on FCCB 49 (122)
Operating PBDIT 5,157 3,271
Less: Depreciation 96 75
Operating PBIT before other income 5,061 3,196
Less: Interest 42 55
Add: Interest, dividend and other income 540 304
PBT 5,559 3,445
Less: Provision for taxation 1,337 806
PAT 4,222 2,639
Less: Minority interests – 10
Consolidated PAT after minority interest 4,222 2,629
Sesa Goa’s Financial Performance, 2010-11
? Gross sales increased by 5S7 to ` 10,151 crore in 2010-11. With this, Sesa Goa has become a company
exceeding US$ 2 billion in turnover on a consolidated basis.
? Net income from operations grew by 577 to ` 9,205 crore in 2010-11.
? Operating P8DIT increased by 587 to ` 5,157 crore in 2010-11. Operating PBDIT margin (operating PBDIT
divided by net income from operations) was 56%.
? Cash pro?ts (P8DT) for 20í0-íí were ` 5,655 crore — an increase of 61% over 2009-10.
? P8T increased by 6í7 to ` 5,559 crore in 2010-11.
? PAT grew by 607 to ` 4,222 crore.
? Propose dividend of ` 3.50 per equity share of ` 1.00 each for 2010-11
? Diluted earnings per share rose from ` 31.62 in 2009-10 to ` 48.17 in 2010-11.
? Net worth in 20í0-íí grew by 627 to ` 12,810 crore.
? As of Síst March, 20íí, Sesa Goa had cash and cash equivalents of ` 10,682 crore — consisting of ` 8,800 crore in debt
mutual funds, ` 1,000 crore in inter-corporate deposits since repaid, and balance ` 882 crore in ?xed deposits, cash
with banks, cash in hand, etc.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
14
Business Development
Having built strong cash reserve
over time, the Company has
started using its balance sheet
strength to make strategic
business investments. In 2009-10,
Sesa Goa planned investment of
approximately US$500 million for
investments in Iron ore expansions
to support higher growth for the
business.
In 2010-11, Sesa Goa made further
commitments to investments, which
are given below.
Investment in Cairn India Limited
In August 2010, Sesa Goa proposed
to take a 20% stake in Cairn India
Limited (CIL) under an open ofer.
Subject to any higher price required
to be paid in accordance with the
SEBI rules on takeovers and mergers
in India, the price payable per share
in the open ofer will be ` 355 per
CIL share tendered. This is part of
the Vedanta Group’s ofer to acquire
majority of CIL shares.
CIL is a listed company. It has a
unique oil and gas exploration and
production platform with the third
largest oil reserves in India, with a
proven management team and a
low-cost production set up. Cairn
India’s principal asset is its 70% stake
in the Rajasthan oil development
project, as well as some 600 km
of heated pipeline from Barmer in
Rajasthan to Bhogat on the Gujarat
coast.
Currently CIL is producing
approximately 125,000 barrels of
crude oil per day, which can be
signi?cantly enhanced subject to
approvals. The project represents
a signi?cant potential resource
base with estimated oil in place in
excess of 6.5 billion barrels. The
global oil and gas markets continue
to be demand driven, and low cost
producers generate high returns on
investments.
For Sesa Goa, this is a ?nancial
investment, which will also support
the Vedanta Group’s long term
growth objectives. The transaction,
which is estimated to be EPS
accretive for Sesa Goa, gives the
Company a stake in a world class
asset with signi?cant growth
potential.
While the Board of Sesa Goa has
cleared this investment, the entire
takeover process is going through
regulatory clearances.
In a major development after
31st March, 2011, but prior to the
release of this document, Sesa
Goa acquired 200 million shares
amounting to 10.4% stake in Cairn
India from Petronas International
Corporation Ltd in April 2011, at
a price of ` 331 per share. This
acquisition is in addition to the
open ofer launched by Sesa Goa on
11th April, 2011.
The Open Ofer for CIL’s shares
closed on 30th April, 2011. A total
of around 155 million shares
representing approximately 8.1%
of the share capital of Cairn India
Ltd. have been tendered. The total
consideration to be paid for the
tendered shares is ` 5,504 crore
(approx. US$1,241 million) at the
ofer price of ` 355 per share.
Consequently, post the Open Ofer,
Sesa Goa will have 18.5% stake in
CIL (i.e. 8.1% through the Open Ofer
plus 10.4% from Petronas).
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
15
Sesa Goa Limited Annual Report 2011
Acquisition of the Assets of Bellary
Steel and Alloys Limited
In March 2011, Sesa Goa acquired
the assets of the upcoming steel
plant unit of Bellary Steel and Alloys
Limited (BSAL) for an all cash deal of
` 220 crore. The secured creditors
to BSAL represented by IFCI Ltd
had taken over possession of the
properties of BSAL in association
with the ofcial liquidator. IFCI
Ltd then conducted a sale process
for the assets of BSAL under the
SARFAESI Act, 2002.
BSAL was in the process of putting
up a steel plant project at Bellary.
The acquired properties of the plant
include a 0.5 million tonnes per
annum capacity steel plant which
is under construction, freehold land
of around 700 acres, building and
structures, plant and machinery
and other related assets. These have
been transferred on an ‘as is where
is’ basis to Sesa Goa.
Sesa Goa has been looking at value
addition in the ferrous metal chain.
As a ?rst step, it had moved into
pig iron production. Now, with this
acquisition, the Company is taking
its ?rst steps in steel manufacturing.
In the process, it is widening its
presence across the ferrous metal
production chain.
The steel plant under construction
is located in the rich iron ore belt
of Karnataka, and provides the
Company a good opportunity to
expeditiously set up a value adding
facility on freehold land which is in
close proximity of state highways,
railways and source of water.
Moreover, this facility provides Sesa
Goa with better opportunities to
add value to the iron ore extracted
within Karnataka — which is in
line with the state government’s
objective.
The Company is presently
conducting a detailed assessment
in order to determine the best way
forward for commissioning the steel
plant at the earliest. However, the
acquisition has been challenged by
JSW Steel Ltd in the Supreme Court
of India, which has asked the parties
to maintain status quo until the
matter is decided.
Merger of Sesa Industries Limited
with Sesa Goa Limited
In 2010-11, after a long legal
process, Sesa Industries Limited
(SIL) was merged with Sesa Goa. On
7th February, 2011, the Company
received the order of Supreme
Court of India that upheld the order
of a Single Judge of High Court of
Bombay at Goa, dated 18 December
2008, approving the Scheme of
Amalgamation of SIL with Sesa Goa
Limited with appointed date of 1
April, 2005.
The Board of Directors, at its
meeting held on 12th March, 2011,
has taken the following decisions:
? Allotted 9,S98,864 equity
shares of face value of ` 1, each
bearing distinctive numbers
859,702,560 to 869,101,423
to the shareholders of the
erstwhile SIL, who were
holding shares as on the record
date, i.e. 28th February, 2011.
The allotment was done in the
ratio of 1:5, with bene?ts of
sub-division and bonus. As a
result of allotment, the paid up
share capital of the Company
has gone up from `85.97 crore
to `86.91 crore.
? Approved distribution of
dividend to the shareholders of
SIL who were allotted Sesa Goa
shares in terms of the Scheme
of Amalgamation. This works
out to `11.05 crore.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
16
Sesa Goa’s primary business is the
exploration, mining and processing
of iron-ore. Its mining operations
are carried out in the states of
Goa and Karnataka in India. The
Company has also diversi?ed its
operations into manufacturing of
met coke and pig iron.
Charts D and E give the share of
each of the operating business in
Sesa Goa’s consolidated external
revenues and consolidated segment
pro?ts (pro?t before tax, interest,
dividend and non-allocable items),
respectively.
Iron ore: This is Sesa Goa’s core
business segment, and contributed
to 91% of consolidated external
revenues and 95% of segment
pro?ts in 2010-11. The Company
has a niche positioning with cost
competitive ore base, and mines
that have relatively easy access to
ports to support the global seaborne
iron ore trade.
Business Segment Review
Chart D: Share of Sesa’s
consolidated external revenues
Pig Iron 7%
Iron Ore 91%
Met Coke 2%
Chart E: Share of Sesa’s
consolidated segment pro?ts
Pig Iron 3%
Iron Ore 95%
Met Coke 2%
Pig iron: This business, carried out
through the erstwhile subsidiary
SIL, has now been merged with
Sesa Goa. It contributed 7% to total
external revenues in 2010-11, and
its share in segment pro?ts was 3%.
The business focuses mainly on the
domestic Indian market, especially
to foundries and steel mills in
western and southern India. It also
exports to the Middle-East and
South East Asia.
Metallurgical Coke (met coke):
The met coke business is larger
than what it seems from its 2%
contribution to external sales
and 2% contribution to segment
pro?ts. This is because 70% of its
sales is to the pig iron division,
which is adjusted in inter-segment
revenues. This business is primarily
a backward integration initiative
to support pig iron. Some of the
production is also sold externally.
Let us look at the developments in
each of these businesses in greater
detail.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
17
Sesa Goa Limited Annual Report 2011
0 200 400 600 800 1000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Chart F: Seaborne Iron Ore
Trade (million tonnes)
geography, the Company is focusing
on developing other markets. With
the growth in the domestic Indian
steel industry, there is a growing
emphasis on domestic iron ore
sales. India’s share of Sesa Goa’s
total iron ore sales has risen from
6% in 2009-10 to 10% in 2010-11.
Similarly, the share of Japan and
Korea has increased from 7% to 10%.
Table 2: Share of Sesa Goa’s Total Iron Ore
Sales
2010-11 2009-10
China 77% 85%
Europe 2% 2%
Japan & Korea 10% 7%
India-Domestic 10% 6%
Others 1% -
Regulatory Issues
The performance could have been
even better had it not been for some
regulatory issues that afected both
volume growth and pro?tability of
the iron ore business in 2010-11, to
which we now turn.
Karnataka Export Ban
In order to curb illegal mining, the
state government of Karnataka
imposed a temporary ban on iron
ore exports from its ten minor ports
since end July 2010. Consequently,
a group of miners including Sesa
Goa, approached the High Court
of Karnataka to revoke this ban.
After the hearing, the High Court
provided six months for the state
government to enforce requisite
regulations to mitigate illegal
mining. To get faster resolution, this
order was further challenged in the
Supreme Court.
The Supreme Court heard the
matter on 12th February, 2011. It
stated that the ban could not be for
an inde?nite period and directed
the government of Karnataka to
Iron Ore
? Net revenues (after
adjusting for inter segment
sales) from iron ore
operations increased by
62% from ` 5,170 crore in
2009-10 to ` 8,387 crore
in 2010-11. This was the
highest ever annual sale.
? Pro?ts before interest,
tax, dividends and other
non-recurring or
non-allocable incomes
grew by 67% from ` 2,926
crore in 2009-10 to ` 4,884
crore in 2010-11.
Markets
Sesa Goa focuses on the global
seaborne trade in iron ore which
caters to the import demand of
various countries, especially China.
Seaborne iron ore trade increased
by 7.3% to 973 million tonnes in
2010. Chart F plots its growth over
the last 10 years – when it registered
a compound annual growth rate
(CAGR) of 9.1%.
During the last decade, China has
emerged as the world’s leading
producer of steel. However, it relies
on imports to substantially meet its
ore needs. Chinese imports of iron
ore have increased at a CAGR of
23% from 92 million tonnes in 2001
to 594 million tonnes in 2010. With
this growth, its share in global iron
ore imports has risen from 20.7% in
2001 to 61.1% in 2010.
In 2010, Chinese import of iron ore
reduced by 3.7% in terms of volume.
Much of this was on account of
supply side constraints in major
iron ore producing countries.
Brazil sufered from production
shortfalls due to heavy rainfall;
while in India, exports were banned
from the state of Karnataka. Both
these countries are also facing
several environmental restrictions
in increasing iron ore supplies.
In addition, development of port
capacities and inland logistics in
Brazil and India has not been in
pace with growing requirements of
the seaborne iron ore trade.
In an environment of strong
demand, these supply-side
constraints resulted in a steady
increase in iron ore prices. Chart G
shows how prices have risen since
Q2, 2010-11.
Table 2 gives the regional
distribution of the Company’s
sales. While China remains the core
Source: My Steel
Source: Metalytics
0
40
80
120
160
200
0
1
-
0
4
-
2
0
1
1
0
4
-
0
1
-
2
0
1
1
0
1
-
1
0
-
2
0
1
0
0
1
-
0
7
-
2
0
1
0
0
1
-
0
4
-
2
0
1
0
0
1
-
0
1
-
2
0
1
0
0
1
-
1
0
-
2
0
0
9
0
1
-
0
7
-
2
0
0
9
0
1
-
0
4
-
2
0
0
9
0
1
-
0
1
-
2
0
0
9
0
1
-
1
0
-
2
0
0
8
0
1
-
0
7
-
2
0
0
8
0
1
-
0
4
-
2
0
0
8
Chart G: Spot Price (FOB $/DMT)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
18
frame new rules for controlling
illegal mining by 31st March, 2011.
Meanwhile, it directed the state
government to allow the exports of
iron ore lying at major ports.
On 5th April, 2011, the Supreme
Court passed its interim order
staying the government ordinance
on issuance of Mineral Despatch
Permits for exports by the state of
Karnataka with efect from 20th
April, 2011.
Export Duty Structure
On 28th February, 2011,
Government of India raised export
duty on both lumps and ?nes to
20%. The efect of this was restricted
to only the month of March in
2010-11, but going forward this will
adversely afect margins.
Operations
The regulatory issues discussed
above made it difcult to increase
production and sale of iron ore.
In addition, there were natural
disruptions like extended monsoons
in Goa. Sesa Goa launched several
internal operational initiatives to
overcome these adversities. These
have helped the Company to
produce 18.8 million tonnes of iron
ore (21.1 million tonnes on a WMT
basis), which is almost in line with
the 19.2 million tonnes (21.4 million
tonnes on a WMT basis) of the
previous year.
Sesa Goa operates mines in Goa
and Karnataka. While for most of
the mines, the Company has direct
ownership in the form of mining
leases from the state governments,
some of these are under third-
party operations. Table 3 gives the
Company’s production data across
diferent states.
Table 3: State-wise production volumes (in
million tonnes)
2010-11 2009-10
Goa 14.4 13.8
Karnataka 3.0 3.7
Orissa 1.4 1.7
Total 18.8 19.2
Note: As international sale prices are quoted
in dry metric tonne (DMT), all our iron ore
volumes are reported on a DMT basis, versus
the earlier basis of wet metric tonne (WMT).
The third-party mining contract
for the Thakurani Mine in Barbil,
Orissa expired on 30th November,
2010. Sesa Goa did not renew
the mining contract because of
unviable commercial terms. Thus,
the Company has ceased its mining
operations at the Thakurani mine
from 1st December, 2010. With
this, the Company has no mining
operations in Orissa.
Iron Ore Mining: A Progress Report
A number of initiatives are being
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
19
Sesa Goa Limited Annual Report 2011
undertaken to expand mining
capacity and logistics at Goa and
Karnataka. The goal is to increase
production at Goa and Karnataka
to 40 mt. These include additional
investment in mining equipment,
processing plants, barges, land
and infrastructures at an estimated
capital expenditure of around
US$500 million.
We have made substantial progress
on the logistics capacity: with
a new railway siding already
commissioned in Karnataka and
work progressing on widening of
the existing roads and building
dedicated road corridors in both
Karnataka and Goa.
We are also adding capacity in river
and port logistics with ?ve new
barges already on stream.
Exploration
Any natural resource based
business with long term growth
priorities must be backed by strong
exploration skills and eforts. At Sesa
Goa, the exploration initiatives are
driven by its focus on sustainable
growth. With this objective, the
Company is continuously looking
to add more resources through
exploration, acquisitions and also
through new mine leases.
During 2010-11, six drilling rigs were
deployed across leases in Goa and
Karnataka. By 31st March, 2011,
over 68,900 metres were drilled.
This resulted in a gross addition of
53 mt to the Company’s reserves,
and resources base prior to a
depletion of 21 mt in 2010-11. Table
4 gives the last three years resource
addition and depletion.
Table 4: Sesa Goa’s Iron Ore Reserves & Resources (R&R), are in million tonnes
Gross Addition Depletion Acquisition Total R&R
2008-09 54 16 - 240
2009-10 64 21 70 353
2010-11 53 21 - 306
Note: Total R&R at the end of 2010-11 is excluding Orissa mine which was included in earlier years.
As on 31st March, 2011, total reserves and resources at the mines that the
Company held on lease and/or right to mine stood at 306 million tonnes.
The reserves and resources position has been independently reviewed and
certi?ed as per Joint Ore Reserves Committee (JORC) standards.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
20
The Company’s pig iron business is
operated by its erstwhile subsidiary,
Sesa Industries Limited (SIL), which
has been merged with Sesa Goa
Limited and now known as the
Pig Iron Division (PID). Having
commenced its operations in 1992,
the PID was the ?rst to introduce
low phosphorous foundry grade pig
iron in India.
Today, the PID produces several
grades of pig iron, including basic,
foundry and spheroidal (nodular)
grades that cater to steel mills and
foundries in India and abroad.
PID also produces slag as a by-
product which is sold to the cement
industries.
The demand for pig iron ?uctuated
throughout the year. Overall,
production reduced by 1% from
280,130 MT in 2009-10 to 276,117
MT in 2010-11. However, market
prices improved and the PID
managed better sales realisation in
2010-11.
Pig Iron
The key data are given below.
` Sales volumes decreased by 5%
from 278,747 MT in 2009-10 to
266,090 MT in 2010-11.
` However, external sales
revenues increased by 22%
from ` 552 crore in 2009-10 to
` 674 crore in 2010-11.
` Pro?ts before interest, tax,
dividends and other non-
recurring or non-allocable
incomes for the pig iron
business increased by 21% from
` 117 crore in 2009-10 to
` 141 crore in 2010-11.
The PID’s facility, located in the
village of Amona, Bicholim taluka,
North Goa, consists of two blast
furnaces — each having a working
volume of 173 cubic metres, with
a combined annual rated capacity
of 250,000 MT of pig iron, with a
consent capacity of 292,000 MT.
The plant adheres to the best
standards of quality, environment,
health and safety. It is certi?ed
to ISO–9001, ISO–14001 and
OHSAS–18001 systems for quality,
environment and safety respectively,
through a third party certi?cation
agency, Bureau Veritas Certi?cation
(India) Pvt. Ltd., formerly known as
BVQI. The PID’s R&D activities have
resulted in reduction in operating
costs, improvement of product
quality and development of new
products for downstream industries.
It has developed special grades of
pig iron to cater to the fast growing
niche market of ductile iron castings
in India.
The Company’s expansion project
is progressing well — after which
the rated capacity of the pig iron
plant will increase from 0.25 million
tonnes per annum (MTPA) to 0.625
MTPA, along with expansion of the
metallurgical coke plant, a new
sinter plant and a 30 MW power
plant based on waste heat recovery.
Commissioning is expected in Q3,
2011-12.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
21
Sesa Goa Limited Annual Report 2011
Sesa Goa's met coke division is
operated as an independent business
unit. The business is primarily a
backward integration initiative to
support the pig iron operations
70% of the met coke output was
consumed internally in 2010-11.
The met coke plant at Amona
produces a range of coke fractions
from over 70 mm for foundries,
20 mm to 60 mm for blast furnaces,
and 6 mm to 25 mm for the ferrous
alloy industries. The product
is mainly of low ash coke. The
principal input, low ash coking
coal, is imported. To ensure stable
raw material supply, the Company
enters long-term procurement
contracts. Coking coal is carefully
blended with accurate controls to
produce the desired high quality
low ash met coke, using the cost-
efective proprietary Sesa Energy
Recovery Coke Making Technology.
This process produces high quality
met coke, and has the lowest
Met Coke
pollution levels among comparable
technologies.
There was moderate growth in
production and external sales.
However, pro?t margins increased
signi?cantly due to higher sales
realisation with an increase in global
prices of met coke.
` Sales volume (internal &
external) was at 252,074 MT in
2010-11.
` External sales revenues
increased by 6% to ` 152 crore
in 2010-11.
` Pro?ts before interest, tax,
dividends and other non-
recurring or non-allocable
incomes for the met coke
business increased by 161% to
` 89 crore in 2010-11.
In line with the expansion of the pig
iron facility, the Company is also
expanding its met coke production
capacity by another 280,000 MT per
annum, which will increase the total
production capacity to 560,000 MT
per annum.
Sesa Goa has developed a
technology for energy recovery in
coke making. This is environment
friendly, characterised by low capital
and operating costs, high levels
of energy recovery, and has the
capability to produce high quality
metallurgical coke. The Company
has received a European and an
Indian patent for this technology.
In addition, the Company has
introduced a German technology
for densi?cation of coal charge,
employing vibro-compaction for
producing stable coal cake with bulk
density. The met coke division has
also set up a state-of-the art coal
carbonisation laboratory for coal
characterisation and evaluation of
coke quality.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
22
The primary goal from a HR
perspective is to a build a robust
and agile world class organisation
with a culture of high performance
embedded in a value system that
promotes respect for individuals,
diversity and entrepreneurship.
In 2009-10, the organisation was
recast into SBUs. The Company
has continued this transformation
exercise through various people
development initiatives. In the
course of 2010-11, a number of
learning initiatives were carried
out. These included management
development programmes for
graduate engineers, training
on structured problem solving,
technical as well as behavioural
aspects, and safety. During 2010-
11, 5,900 man-days of training was
imparted.
The Company has a special focus
to identify and nurture leadership
talent within the organisation.
Assessment Centers were
conducted to identify high potential
employees to be designated as “Star
of Business”. In 2010-11, 34 such
stars were identi?ed, and individual
Human Resource (HR)
development plans were created to
ensure their career progression in
the Company with challenging roles
and assignments.
The Gen-next Operational
Leadership (GOLD) programme
launched in the previous year
continued into 2010-11. The ?rst
batch completed the programme
successfully & a second batch of 37
high potential employees has been
inducted.
Equity-based awards in the form of
a long term incentive plan (LTIP)
are ofered to recognise key, high
performing employees of the
Company. LTIP facilitates alignment
of the interests of management,
including younger high potential
future leaders, with those of the
shareholders. It has proved to be an
efective motivational and retention
tool for high calibre people.
The Company has also rolled out
web-based initiatives called ’Any-
time Learning’ and an e-library.
Through self-learning modules,
these platforms encourage
knowledge sharing and provide
opportunities for employees
to upgrade their technical and
managerial skills.
During 2010-11, an innovative
method of workforce engagement
called the ’Idea Mela’ was
undertaken, which was aimed at
collecting employee suggestions.
Most workforce ideas were related
to productivity improvement,
cost reduction, better safety /
environment practices, quality
improvement and employee welfare.
Over 5,000 ideas were collected
from 2,000 employees, of which
75% were from workmen. Some
600 ideas were considered feasible.
These are being implemented.
Already, the ideas have resulted in a
cost saving of ` 2.5 crore.
To promote operational efciencies
and be in tune with global best
practices in mining and other
functions, employees attended
diferent training programmes,
conferences and visited some
of the world's best mines
during 2010-11. Areas of study
included benchmarking, mergers
and acquisitions, sustainable
development, mining logistics and
climate change.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
23
Sesa Goa Limited Annual Report 2011
Sesa Goa has a robust system of
internal controls that helps protect
the interests of the Company and
its assets from unauthorised use or
disposition. This includes a system
of documented policies, guidelines
and procedures, reviews by
management and extensive internal
audits by reputed international
audit ?rms.
As with any enterprise, Sesa Goa
faces several risks. The main macro-
level risks are given below.
Market Risks
Sesa Goa exports over 85% of its
iron ore production. Being a player
in the global seaborne iron ore
market, the Company’s business is
exposed to adversities in demand
and supply. Moreover, with 77%
of sales being exported to China,
any slowdown in that economy
can afect the Company’s business.
There are two mitigating factors.
First, Sesa Goa’s share of total
Chinese iron ore imports is small,
and there continues to be various
opportunities in China for the
Company to increase its market
presence. Second, Sesa Goa’s low
operations cost also acts as a
signi?cant assurance of its ability to
ride out short term adverse market
conditions. The Company continues
to work towards diversifying
its customer mix in terms of
geography.
Regulatory Risks
The mining sector in India is
subject to an uncertain regulatory
environment. Being a major mining
company, Sesa Goa has exposure
to these uncertainties. In the last
few years there has been several
negative developments in the
export duty on iron ore. In 2010-11,
it was increased to 20% for iron ore
lumps and ?nes. Export bans are
periodically applied to various ores
Risks and Uncertainties
— such as the one that occurred in
the state of Karnataka in 2010-11.
Environmental regulation policies
also remain unclear; and case-
to-case administration of such
regulations leads to uncertainty and
risk in mining activities.
Production Risks
Sesa Goa adopts a sustainable
production platform. Consequently,
the addition of new mineral
resources is critical for sustaining
growth oriented mining and
production plans. As on 31st
March, 2011, Sesa Goa has total
reserves and resources at 306 mt.
It continues to focus on adding
new mineral resources through
exploration and the grant of new
mining leases from central and state
governments. In the last three years,
the Company has added over 170 mt
to its gross reserves and resources
through exploration activities and
70 mt through acquisition. There
are risks in terms of getting the
?nal government clearances for
increasing our current production
capacities. Besides, delays in
allocation of new mineral leases or
changes in the policy on allocation
of such leases in favour of captive
steel companies could afect future
plans of the Company.
Project Execution Risks
Sesa Goa’s aggressive growth
plan initiated in 2009-10 has
resulted in investments in several
developmental projects. Many of
these are linked to creating the
underlying infrastructure to support
logistics of ore. In addition, in
2010-11, the Company has taken
over the upcoming steel plant assets
of Bellary Steel and Alloys Limited.
All these new investments require
project management skills, and have
exposure to project execution risks.
Currency Risks
With a majority of its iron ore being
exported, Sesa Goa’s revenues are
primarily quoted in US dollars.
This gives the Company signi?cant
exposure to foreign exchange
?uctuation risks, particularly in
relation to the US dollar.
Industry Risks
Iron ore production is concentrated
in the hands of a few — with the
top three producers accounting
for more than 70% of the global
seaborne iron ore trade. Such
scale provides these players
with a signi?cant ability to
afect competition, and pose a
potential threat to the Company’s
exports. Sesa Goa continues to
focus on building relationships
with the major customers and
in geographically diversifying its
customer base.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
24
Sustainable Development
Sesa Goa is committed to create
value for its stakeholders in a
sustainable manner, minimise
adverse environmental impacts,
and work in cohesion with the
community, government bodies,
non-governmental organisations
and other groups. Health, safety and
environment (HSE) and corporate
social responsibility (CSR) are of
paramount importance to Sesa
Goa. In addition, the Company’s
sustainable development model
promotes efcient use of resources
such as energy and water, minimises
the negative impact on biodiversity,
and reduces waste and emissions
including greenhouse gases.
As a part of its sustainable
development communication
and reporting system, Sesa
Goa produces every year its
Sustainability Development Report,
complaint to GRI G3 guidelines and
maintaining its appliction level A+
since last 3 years. All the reports are
also available on GRI website apart
from the Companies website.
The Company is signatory to UN
Global Compact from 2009-10, and
submitting the communication of
progress to the principles of UNGC.
Health, Safety and Environment
(HSE)
Sesa Goa’s top management,
through its HSE Committee, steers
the Company’s initiatives by setting
annual targets and reviewing
progress. The emphasis is on
integrating HSE with the decision-
making process. Today, all the
Company’s locations are certi?ed
for ISO 9001, ISO 14001 and OHSAS
18001 — except Sesa Resources
Limited, which is yet to be certi?ed
for OHSAS 18001. Sesa Goa has well
quali?ed HSE and CSR teams across
all its operations. At present, there
are 54 such professionals.
Occupational Health
The Company aims to provide a
workplace that is free from hazards
of occupational illness. The health
of all employees is checked annually
across the group companies. In-
house facilities for occupational
health monitoring are available
in the mines and the factory sites.
Dust, noise and lighting levels are
regularly monitored to ensure good
workplace hygiene. Whenever a risk
is identi?ed, the Company takes
early steps to quantify, control
and prevent it through proactive
measures.
The Company’s doctors impart
awareness about health education
and related issues to the employees
and local communities around its
operations. The emphasis is on
improving health and hygiene and
preventing communicable diseases.
During 2010-11, there were no
occupational illnesses reported in
Sesa Goa.
Safety
The Company aims for zero
accidents and a safe working
environment. This is promoted
through a well established system
of checks and balances, and
the reporting of accidents and
incidents, including the near-
misses. These are thoroughly
investigated to identify systematic
safety de?ciencies. On identifying
such gaps, preventative measures
are put in place.
There is sharing of safety lessons
learned and best practices through
exchange of information across the
group. The organisation encourages
employee participation in safety
committees and safety promotional
programmes. New initiatives are
regularly introduced for continual
improvement in safety performance.
Chart H shows that for the
Company as a whole, the frequency
and severity of accidents (FSI) has
declined from 0.93 in 2009-10 to
0.50 in 2010-11. FSI increase in the
0 1 2 3 4 5 6
SGL Group
Pig Iron
Met Coke
Ship Building
Shipping
Mining
Chart H: FSI measures
2010-11
2009-10
LTIFR reduced
by 60% over
a period of 5
years
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
25
Sesa Goa Limited Annual Report 2011
shipping business is because of a
fatality occurred at one of our jetty
where a barge sailor lost his life
in an unusual accident. The met
coke plant achieved zero lost time
injury incidents for the second
consecutive year and the pig iron
division has also achieved zero lost
time injury incidents during 2010-11.
Environment
Mining is about exhausting natural
resources. Thus, it is important to
replenish as much as possible and
extract ore with minimal peripheral
damage to the environment. Sesa
Goa is conscious of this challenge.
From planting trees at the mining
sites to conserving water, managing
solid waste and reducing energy
consumption, the Company takes
many steps towards environment
conservation and minimising
the impact of mining on the
surrounding environment and
society.
The Company’s responsibility does
not end with operating the mines. It
extends after the mine site is closed.
Sesa Goa ensures regeneration
of the earth that has been mined,
helps sustain the biodiversity
and addresses the needs of local
communities. In the long term, the
goal is to restore the land to as close
to its original state as possible.
The Company has a full-?edged
environment management team
to plan, implement and monitor
environment management
programmes. The focus is on:
` Pre-planning of mining
operations.
` Adoption of new and efcient
technologies.
` Modernisation of equipment.
` Implementing new ways
of operating to minimise
the negative impact on
environment.
` Conserving natural resources
through efcient use.
Energy Conservation
Sesa Goa has established and
implemented clear energy
conservation targets, which vary from
3% to 5% reduction of speci?c energy
consumption across all locations.
Projects for energy conservation
are identi?ed and undertaken in a
systematic manner and are reviewed
every quarter to ensure the targets
are actually achieved.
` In 2010-11, the Company has
been able to maintain speci?c
energy consumptions at 0.106
giga joule per MT (GJ/MT) of
output in mining.
` For the PID, it reduced from
0.560 GJ/MT in 2009-10 to
0.501 GJ/MT in 2010-11.
` In met coke, it reduced from
0.139 GJ/MT in 2009-10 to 0.136
in 2010-11.
Water Conservation
The main focus on the water
management is on reducing fresh
water consumption, increasing the
use of harvested rain water, reducing
speci?c consumption, and increasing
recycling and re-use of treated
efuent. The Company follows the
` In 2010-11, the
Company has been
able to maintain
speci?c energy
consumptions at
0.106 giga joule per
MT (GJ/MT) of output
in mining.
` For the PID, it
reduced from 0.560
GJ/MT in 2009-10 to
0.501 GJ/MT in
2010-11.
` In met coke, it
reduced from 0.139
GJ/MT in 2009-10 to
0.136 in 2010-11.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
26
concept of zero discharge, with a
robust system to undertake and
monitor tight water conservation
targets every quarter. Water
managers are located at each of the
sites to identify water conservation
projects in consultation with the
operating team.
Water conservation is managed
through:
` Continuous use of recycled
water for mining operations
and for bene?ciating iron ore,
thereby reducing freshwater
consumption by about 70%.
` The rainwater accumulated
in mine pits is used for
bene?ciation and spraying.
The tailings generated during
bene?ciation are treated and
water is then recycled back.
` The water requirement of the
pig iron and met coke plants is
met from rainwater harvested
in the exhausted Sanquelim
mine pit and partly through
government supply.
` In case of Karnataka operations,
ground water is used to meet
dust suppression requirements.
This is supplemented by
rainwater harvesting in ponds
during the monsoon, which
is also used for the nursery
plantations.
Total water consumed in mining
operations has reduced from 14.9
million kilolitres in 2009-10 to 11
million kilolitres in 2010-11.
Climate Change
Climate change is an important
aspect to Sesa Goa. The Company
has undertaken steps to measure
its impact on the environment by
periodically mapping its carbon
footprint. The registration of
the ‘Waste Heat Recovery Based
Power Plant Project’ with the UN
Framework Convention for Climate
Change (UNFCCC) has led to
generation of carbon revenue —
which not only makes the project
sustainable but also creates an
additional revenue stream. 1,00,438
CERs was accrued during 2010-11.
During the year, Sesa Goa was
selected as one among the 10
leaders for CDLI (Carbon Disclosure
Leadership Index) shortlisted
companies from 200 CDP (Carbon
Disclosure Project) respondents and
published in the CDP report 2010,
India 200.
Waste Management
Sesa Goa adopts a ‘4R’ waste
strategy - reduce, recycle, reuse and
reclaim. The focus is on improving
material efciency; reducing
waste generation; and enhancing
recovery and reuse of discarded
material. The mining, bene?ciation,
metal extraction and coke making
activities result in the generation of
both hazardous and non-hazardous
waste. An example of waste
management is given below.
Iron ore tailings contain iron
concentrations of around 45%.
Due to increasing cost of land and
scarcity of mining assets, it makes
economic and environmental sense
to reduce the proportion of tailings
in the bene?ciation process. This
was achieved by adding Wet High
Intensity Magnetic Separation
(WHIMS) units to the bene?ciation
plants. Due to this innovation, there
was a gain of ~11,000 tonnes per
year of usable iron ore, representing
around 2% of the feed material.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
27
Sesa Goa Limited Annual Report 2011
Sesa Goa’s approach to community
development is holistic and
long-term. Public Private Partnerships
(PPP) and community consultation
are the core drivers of the
Company’s work with communities.
It engages with its stakeholders
by a consultation process. This,
coupled with base line studies and
need-based assessments, provide
the framework for developing the
various social interventions. Sesa
Goa partners with like-minded
organisations in most of the
projects, such as government
agencies, NGOs, local communities
and panchayats.
Sesa Community Development
Foundation
The Sesa Community Development
Foundation, initiated by the
Company, is registered under the
Societies Act. The Foundation’s core
focus is to foster the development of
the community and youth around
Sesa Goa’s areas of operations in
Goa through providing technical
education and sports training
Corporate Social Responsibility (CSR)
as well as various community
development initiatives. Some
initiatives are listed below.
Sesa Technical School (STS)
The Sesa Technical School was
established in 1994 on an old
iron ore mining workshop at
Sanquelim. STS aims at providing
the youth in and around Sesa Goa’s
mining operations with technical
skills and knowledge to enable
them earn a living. STS students
specialise in becoming machinists,
?tters, electricians or instrument
mechanics, and secure placements
in various nearby companies. For
the last several years, STS has
maintained 100% results in the
Industrial Training Institute (ITI)
trade examinations.
Since the inception 16 batches have
been rolled out making 726 young
Goan's employable till date on their
own merit.
Sesa Football Academy (SFA)
To nurture the talent of Goa's young
footballers, SFA was established in
1999 to ofer junior level training
at Sanquelim, Goa. Its senior level
academy began operations from
June 2008 at Sirsaim, Goa.
Junior Academy
It houses 36 Goan boys. Once in
two years, boys in the age group of
14 to 16 years are selected on merit
and are provided with professional
football training as well as formal
education. The team has won many
championships and its graduates
play for top teams of the country.
Senior Academy
For the last 3 years, Sesa Goa’s
Senior Academy has been an active
participant in the Goa Professional
League, besides participating in the
Second Division of the I-League,
the Governor’s Cup and various
other tournaments. Within two
years of the senior academy
coming into being, eminent clubs
have approached students for
recruitment
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
28
Sesa has two football grounds in
Goa created in restored mining land.
To further nurture the young talent,
a new infrastructure at Sirsaim
was inaugurated last ?nancial
year. Built at an estimated cost of
over `4 crore, it has an all-season
football turf, a hostel facility that can
accommodate 30 boys, an in-house
gymnasium, indoor sports hall,
audio visual room and sauna bath
facilities.
In March 2011, Sesa Football
Academy (SFA) signed Mr Terry
Phelan, a former English premier
league footballer, who represented
his country, the Republic of Ireland,
in the 1994 FIFA World Cup as
the chief mentor for signi?cantly
developing the Academy. The SFA
has also appointed Libero Sports
— a subsidiary of the US-based
Libero Sports LLC — as its strategic
marketing consultants.
Development of Social
Infrastructure
Sesa Goa believes that building
appropriate infrastructure can
help develop communities.
The Company’s infrastructure
development initiatives include:
` Water pipeline at Bagwada,
Pilgaon, Bicholim as a part
drinking water facility to the
villagers. The bene?ciaries are
102 villagers.
` Constructed 115 metre water
canal at Kalsai, Kirlapal Dabal
village in Goa. The bene?ciaries
were 40 farming families.
` Constructed compound walls
and other infrastructure for
primary, middle and high
school at Goa and Karnataka.
` Constructed a large community
hall in village of Navelim, Goa.
` Constructed concrete cement
road connecting the village of
Medikeripura in Karnataka.
` Constructed the Community
Medical Centre at the village of
Megalahalli in Karnataka.
` Constructed watershed
development and drainage
systems at several villages
adjoining the Company’s mines
in Karnataka.
` Created drinking water facility
for around 1,500 people at the
village of Playa in Karnataka.
` Distributed smokeless biomass
stoves to around 700 families in
Karnataka.
Education
Education has been one of the
major focus areas of the Company’s
CSR initiatives. Given below
are examples of the education
initiatives.
` Project Manthan: A school-
based intervention for
promoting adolescent health
and improving educational
outcomes. A total of 13 schools
are covered under the project,
with over 2,600 students as
bene?ciaries.
` Launched a scholarship
scheme called the ‘Sesa
Dnyanjyoti Shishyavritti’ for
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
29
Sesa Goa Limited Annual Report 2011
meritorious students from
Standard 5 to Standard 12. It
has bene?ted 292 students
from 57 schools.
` Launched the Vedanta
Computer Education
Programme called ‘E-shiksha’
in 295 schools in Goa and 250
schools in Karnataka.
` Distributed notebooks to
students of several schools in
Karnataka and Goa.
` Conducted vocational tuition
classes in Karnataka bene?ting
over 900 high school students.
` Started evening study centres
in villages of Karnataka for
Standard 3 to Standard 7
students.
` Distributed balwadi play
equipment to 20 balwadis,
involving 400 children.
` Set up an orientation and
mobility course for poor,
visually impaired students. 20
students were taught various
skills like negotiating steps,
recognising places and daily
living skills. During the 75-day
course, these students were
ofered free boarding and
lodging.
Health Initiatives
Some of the key health initiatives of
2010-11 are given below:
` There are 10 community
medical centres running
around Sesa Goa’s mines and
operational areas. Till March
2011, these have bene?ted
around 118,000 people.
` A mobile health unit was
launched for the South Goa
mines, which covers over
33,670 people.
` An anaemia detection and
treatment campaign was
conducted in the villages of
Pissurlem and Advalpal in
Goa, which bene?ted over 300
women.
` Reproductive child health
camps were organised at the
villages of Mulgao, Piligaon,
Mayem and Surla in Goa, which
were attended by 645 women.
` Organised free eye screening
camps in Goa and Karnataka,
which has led to eye surgery,
cataract operations and free
spectacles to those who were
afected.
` Organised a cancer awareness
and detection campaign in the
villages of Pissurlem, Cudnem
and Surla in Goa, which
covered 133 women.
` As in previous years, organised
a blood donation camp on
1st December, 2010, the World
AIDS Day, where 199 company
employees donated blood.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
30
Sustainable Livelihood
Agriculture Livelihood Promotion
Agriculture is the main source of
income in rural areas. But today,
it is sufering due to various
reasons, such as high input costs,
low returns, shortage of skilled
manpower, lack of interest in
farming and inclination towards
white-collar jobs. Sesa Goa’s
CSR philosophy aims to enhance
the economic life of villagers by
improving farming systems, as well
as developing micro enterprises
to provide alternative means of
livelihood.
The learnings gained through the
Back to Farming project initiated in
Wagona, Kirlapal Dabal panchayat
in Goa motivated Sesa Goa to
replicate it in Cudnem and Navelim
— also in Goa. The project involved:
` Organising awareness
programmes/meetings of
farmers along with village
panchayat members.
` Providing guidance on best
agricultural practices, improved
technologies, hybrid seeds,
proper application of fertilisers,
etc.
` Facilitating farmers in availing
government subsidy on
mechanised ploughing of ?elds
and contributing to residual
share.
` Distributing free of cost
paddy seeds, organic manure,
chemical fertilisers, irrigation
facilities, fencing of ?elds, etc.
` Repairing of sluice gates,
bandharas, bandhs, etc.
Sustainable Livelihood through
Agriculture
For the efective implementation
of agriculture-based community
projects, Sesa Goa has tied up
with Betki Khandola Panlot Sangh
(BKPS), a water-shed organisation
registered under the Societies
Act. At Wadiwada (Goa), farmers
cultivate rice and vegetables in
?elds next to the river Mandovi.
Over the years, a bandh meant to
prevent saline water from entering
the ?elds had got damaged at
many places. A group of 15-20
bene?ciaries took up the task of
strengthening the bandh. Today,
there is a strengthened bandh that
is 1 km in length and with a width of
2.5 metres.
Inland Canal De-Silting in Bagwada
In Bagwada (Goa), an inland water
canal had not been de-silted several
years — resulting in ?ooding of the
?elds during high tide, thus making
it un?t for cultivation. The project
was taken up. Around 600 metres
canal was de-silted, bene?ting
about 70 farmers.
In addition, several farmers were
facilitated with fertilisers and
farming machineries like power
tiller, weed cutting machines, etc.
Other initiatives included training
programmes for women self-
help groups on making arti?cial
jewellery, which were conducted
in Amona-Navelim through the
Amona Panlot Sangh.
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
31
Sesa Goa Limited Annual Report 2011
Accolades
Sesa Goa won several awards during
2010-11 in various categories. Some
of these are listed below.
` Awarded the Goan Achievers
Award for Corporate Social
Responsibility at an award
function organised by Navhind
Times and Viva Goa Magazine
in Goa on 28th March, 2011.
` Won the Environmental
Sustainability Excellence Award
2010-11, by the Indian Chamber
of Commerce at Kolkata on
9th March, 2011.
` Conferred the award of being
an ‘Excellent Water Efcient
Unit — Beyond Fence’ at the
Seventh Award for Excellence
in Water Management 2010,
organised by the Confederation
of Indian Industry (CII), Godrej
Green Business Centre.
` Excellence award for
Aforestation for Sanquelim and
overall performance Award for
Codli Mines by Indian Bureau
of Mines (IBM).
` Sesa Goa received British Safety
Councils International Safety
Award 2011 for its 5 units.
` Pig Iron Division and Met
Coke Division received the
’Gomantak Suraksha Patra’ for
safety performance for 2009
during an award function
organised by the Green Triangle
Society of Goa, in collaboration
with Inspectorate of Factories &
Boilers, in May 2010.
` Received the best performer
award instituted by Financial
Express–EVI in the Metals
and Mining category for
its contributions towards
the environment and the
excellence in the area of Green
Businesses.
` Won the runners up trophy
for the Best Corporate Social
Responsibility Award for its
Alternate Livelihood Project
by Bombay Stock Exchange at
its Sixth Social and Corporate
Governance Awards 2010, on
16th December, 2010 at Mumbai.
Cautionary Statement
Statements in this Management Discussion
and Analysis describing the Company’s
objectives, projections, estimates and
expectations may be ‘forward looking
statements’ within the meaning of applicable
laws and regulations. Actual results might
difer substantially or materially from those
expressed or implied. Important developments
that could afect the Company’s operations
include a downtrend in the steel and iron ore
sector, signi?cant changes in political and
economic environment in India, exchange rate
?uctuations, tax laws, litigation, changes in
environment regulations, labour relations and
interest costs
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
32
Enrichment of low grade iron ore
?nes for better resource utilization
Approach and Deployment: Iron ore
tailings contain iron concentrations
of around 45% or more, it may
become economically viable to
extract the iron content from
tailings, and due to the high cost
of land and environmental factors
it is worthwhile attempting to
minimize tailings pond volumes.
This reduction in tailing volume
could be achieved by adding Wet
High Intensity Magnetic Separation
(WHIMS) units to bene?ciation
plant. An in-depth study by
our technical team along with
international experts was carried
Case Study:
to implement the detailed process
and practices were also observed
in other similar industries. It
was decided to install advanced
vertically mounted pulsating
WHIMS instead of alternative
technique of Floatation to get
higher usable iron ore cyclones
?nes recovery from tailing
products. The installation of
WHIMS plant will enable resource
recovery, reducing the quantity of
tailings by about 50%.
Innovation accomplished in
practice and results:
Chemical analysis of tailing
samples indicated the presence of
WHIMS
SMBP, Surla
Fe ~45%, SiO2 ~18% and alumina
~5%. It was observed that Fe
could be increased to 60-62%
by the WHIMS process, which
would also reduce SiO2 and Al2O3
content by 50%. In addition to
the economic bene?t from the
utilization of the waste as a resource
which minimizes additional land
requirement. “This is one of the
path breaking techniques to recover
usable iron ore from tailings”.
Hence management decided to
replicate this best practice to all
the other processing plants and
implementation has already started
in all units.
Due to this innovation, a gain of
~11,000 tonnes/annum (at the rate
of ~2% of plant feed material) usable
ore recovered.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
33
Directors’ Report
To the Members,
The Board of Directors presents the Annual Report of the Company together with the Audited Statements of Account
for the ?nancial year ended 31st March, 2011.
This report, therefore, is drawn for the Company on a stand-alone basis.
2010 -2011
(` in crore)
2009 -2010
(` in crore)
Pro?t before provisions for depreciation and tax 4,468.93 2,715.47
Less: Depreciation 83.13 57.38
Provision for Tax
- Current Tax 963.00 538.00
- Deferred Tax (10.00) 2.00
Pro?t after depreciation and tax 3,432.80 2,118.09
Add: Balance brought forward from the preceding year 297.70 95.57
Transferred on amalgamation of Sesa Industries Ltd. 283.48 -
Pro?t available for appropriation 4,013.98 2,213.66
Appropriations
Proposed dividend/?nal dividend 304.18 270.06
Tax on distributed pro?t 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency Convertible Bonds converted during the year
(inclusive of dividend tax of ` 0.51 crore) 9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited on amalgamation (inclusive of
dividend tax of ` 1.83 crore) 12.88 -
General Reserve 2,500.00 1,600.00
Balance carried to Balance Sheet 1,137.72 297.70
4,013.98 2,213.66
In accordance with the requirements of the Listing Agreement, a consolidated Financial Statement of the Company is
included in this Annual Report. The consolidated pro?t after tax for the group for the year ended 31st March, 2011 is
`4,222.45 crore as against `2,639.04 crore for the previous year. The basic earnings per share (of `1 each) (excluding
minority interest) works out to `49.17 as against `32.41 for the previous year.
Amalgamation of Sesa Industries Limited with Sesa Goa Limited
The Hon’ble Supreme Court of India has vide Order dated 7th February, 2011, upheld the Order of the Single Judge of
High Court of Bombay at Goa dated 18th December, 2008 approving the Scheme of Amalgamation of Sesa Industries
Limited (SIL) with Sesa Goa Limited (SGL) with appointed date of 1st April, 2005.
Consequently the Board of Directors, at its meeting held on 12th March, 2011 allotted 9,398,864 equity shares of
face value of `1/- each bearing distinctive numbers 859,702,560 to 869,101,423 to the shareholders of erstwhile SIL,
holding shares as on Record Date, i.e. 28th February, 2011 and approved distribution of dividend to the aforesaid
allottees in terms of the Scheme of Amalgamation equivalent to ` 11.75 per share of face value of ` 1/-. As a result of
allotment, the paid up share capital of the Company has gone up from ` 859,702,559 to ` 869,101,423.
Consequently, the ?gures of the Pig Iron segment for 2010-11 were incorporated in the company’s results in the
quarter ended 31st March, 2011. The ?gures for 2010-11 are therefore not comparable with those of 2009-10 on
stand-alone basis.
Dividend
The board of directors has recommended a dividend of ` 3.50 per equity share of ` 1/- each for 2010-11, as against
` 3.25 per equity share of ` 1/- each declared in 2009-10.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
34
Operations
A summary on a stand-alone basis of the sales turnover and the working results is given below:
2010 – 2011 2009 – 2010
(All money values are net of freight) Qty. in million
tonnes
Value in ` crore Qty. in million
tonnes
Value in ` crore
Sale of Iron Ore* 14.7 6,736 15.2 4,238
Direct Exports 12.5 6,219 14.1 4,027
Other Sales 2.2 517 1.1 211
Sale of metallurgical coke 0.08 141 0.27 357
Sale of Pig Iron 0.27 664 – –
Pro?t after Tax – 3,433 – 2,118
* Includes 0.312 mt (amounting to ` 99.44 crore) transferred to pig iron division.
Note: Quantitative numbers are reported in DMT basis.
Sesa Goa produced 14.8 million tonnes of iron ore and
sold 14.7 million tonnes of iron ore in 2010-11. This was
marginally lower than the 16.0 million tonnes produced
and 15.2 million tonnes of iron ore sold in 2009-10.
The Company’s production and sales were adversely
afected by the imposition of ban on exports of iron ore
in Karnataka by the Government of Karnataka (GoK),
logistical hurdles and the extended monsoon in Goa
which hampered mining and logistics operations.
Logistic hurdles were also faced in Orissa.
During end July 2010, the Government of Karnataka
(GoK) issued a noti?cation to ban iron ore exports from
ten minor ports and in the process stopped all the iron
ore exports from the State. While this was aimed at
curbing illegal mining, it completely stalled operations
of existing regular miners like Sesa in Karnataka. On
5th April, 2011, the Supreme Court issued a ruling to lift
the Karnataka iron ore export ban from 20th April, 2011.
In 2010, Chinese import of iron ore reduced by 3.7% in
terms of volume. Much of this was on account of supply
side constraints in major iron ore producing countries.
Brazil also sufered from production shortfalls due to
heavy rainfall; while in India, the export ban in Karnataka
afected volumes. Both these countries are also facing
several environmental restrictions in increasing iron ore
exploration and production. In addition, development
of port capacities and inland logistics in Brazil and India
has not been in pace with growing requirements of the
seaborne iron ore trade.
In an environment of strong demand, these supply-
side constraints resulted in a steady increase in iron ore
prices. Consequently, sales realisation per MT of iron ore
sold increased drastically over the course of 2010-11.
This contributed to a increase in external sales revenue
of iron ore by 62% from ` 5,170 crore in 2009-10 to
` 8,387 crore in 2010-11.
On the cost front, there were some developments that
adversely afected Sesa Goa’s operations. The railway
freight meant for export has continuously increased and
on 28th February, 2011 Government of India increased
the export duty for iron ore lumps from 15% to 20%, and
that on ?nes from 5% to 20%. Despite these external
adversities, the Company maintained its margins and
delivered strong pro?ts.
Your Company has successfully integrated the Sesa
Resources (erstwhile Dempo) iron ore operations that
were acquired in the previous ?nancial year in our
operations.
Exploration
Sesa Group continued its strong focus on exploration
activities at its operations at Goa and Karnataka. During
2010-11, 6 drilling rigs were deployed across leases in
Goa and Karnataka. By 31st March, 2011, over 68,900
metres were drilled which resulted in a gross addition
of 53 mt to its reserves and resources base prior to a
depletion of 21 mt during 2010-11. In November 2010,
the Company closed its third party operations at the
Thakurani Mines in Barbil, Orissa as the contract renewal
was not on favorable commercial terms.
Total reserves and resources as on 31st March, 2011
stands at 306 million tonnes. The reserves and resources
position has been independently reviewed and certi?ed
as per JORC standard.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
35
Pig Iron & Met Coke Business
For the pig iron business, sales volumes decreased by 5%
to 266,090 MT in 2010-11.
However, with better market prices, sales revenues
increased by 22% from ` 552 crore in 2009-10 to ` 674
crore in 2010-11. Pig Iron pro?ts before interest, tax,
dividends and other non-recurring or non-allocable
incomes for the pig iron business increased by 21% to
` 141 crore in 2010-11
External sales revenues of met coke increased by 6% to
` 152 crore in 2010-11 and pro?ts before interest, tax,
dividends and other non-recurring or non-allocable
incomes for the met coke business increased by 161% to
` 89 crore in 2010-11.
Expansion Progress
The iron ore capacity expansion programme is on track
for completion by the end of 2012-13.
By then your Company aims to produce 40 mt in Goa
and Karnataka. Expansion of the pig iron capacity to
625 ktpa and the associated expansion of metallurgical
coke capacity to 560 ktpa are also progressing well for
commissioning by Q3 2011-12
Acquisitions
During 2010-11, the Company announced two major
investment decisions. On 16th August, 2010, your
Company announced a potential acquisition of 20%
stake in Cairn India Ltd. And, on 22nd March, 2011, it
announced the acquisition of assets of Bellary Steel &
Alloys Ltd (“BSAL”).
Cairn India Limited
Your Company announced our participation in the
proposed acquisition of Cairn India Ltd along with our
parent Company Vedanta Resources plc. Sesa Goa will
acquire 20% strategic stake in Cairn India under an
Open Ofer. If there is insufcient take up in the Open
Ofer, Sesa Goa will acquire the balance as part of the
Vedanta Group’s acquisition of a majority stake in Cairn
India. The total cash consideration for the shares to be
acquired is circa US$3 billion.
Sesa Goa received the clearance from Securities and
Exchange Board of India (“SEBI”) to proceed with the
open ofer of up to 20% of the shares of Cairn India, post
which your company launched the open ofer from
11th April, 2011 at a price of INR 355 per Cairn India
share which closes on 30th April, 2011.
On 19th April, 2011, your Company acquired 200 million
shares amounting to 10.4% stake in Cairn India from
Petronas International Corporation Ltd (“Petronas”) at
a price of ` 331 per share through bulk deal on Bombay
Stock Exchange Limited. This acquisition is in addition
to the Open Ofer launched by your Company on 11th
April, 2011 and ends on 30th April, 2011.
Bellary Steel and Alloys Limited
The Company acquired the assets of the upcoming Steel
Plant Unit of BSAL for an all cash consideration of
` 220.00 crore. BSAL was in the process of putting up a
0.5 mtpa Steel Plant Project at Bellary. The assets of the
under construction plant acquired include a free hold
land of around 700 acres, building and structures, plant
and machinery and other assets of the Steel Plant. The
assets have been transferred on an “As is where is” Basis
to SGL.
Your Company is presently conducting a detailed
assessment in order to determine the best way forward
for commissioning the steel plant at the earliest.
However, the acquisition has been challenged by JSW
Steel Ltd in the Supreme Court of India, which has asked
the parties to maintain status quo until the matter is
decided.
Outlook
The Company remains optimistic on the demand
and price outlook for Iron Ore in the Global Seaborne
trade. In fact, the consensus expectations suggest a
global de?cit for the next 2 years on the back of supply
constraints. In the longer term, however, prices, will
come down as supply picks-up with several new
investments coming on stream.
On the cost front, increased royalty rates, railway and
road freight and export duty continue to exert pressure
on the Company’s margins. In addition, uncertain
policies and slow progress on logistics infrastructure
development will continue to afect volumes.
In this milieu, your Company reiterates its commitment
to the medium term growth objective of achieving 40
mt of production by 2012-13 subject to certain statutory
clearances. Sesa Goa remains focused on extracting
the maximum internal efciencies and operational
productivity to develop the Company using its
sustainable growth model. As with last year, we remain
cautiously optimistic for overcoming challenges and
delivering good growth in 2011-12.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
36
ISO Certi?cation
All the certi?cates under ISO: 9001-2008, ISO: 14001-
2004 and OHSAS 18001-2007 for Quality Management,
Environment Management, Occupational Health and
Safety Management respectively, are being maintained
by the Company after periodical surveillance audits.
Sesa Community Development
Foundation
The Foundation runs two units, viz. the Sesa Technical
School (STS) and the Sesa Football Academy (SFA). The
Company’s contribution during the year was ` 3.29
crore to the Foundation.
Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings
and Outgo
Particulars prescribed under Section 217(1) (e) of the
Companies Act, 1956, are given in Annexure A, which
forms part of this Report.
Ecology and Social Development
Your Company remains focused on improving the
ecology and the environment. Its mine reclamation
eforts have signi?cantly improved the bio-diversity
of the working as well as reclaimed mines. Successful
replication of proven biotechnologies for mine land
reclamation has become an integral part of the
Company’s resource planning process. Trials have also
been conducted to utilise the reject dump area for
?oriculture and the cultivation of other forest products.
Sesa Goa accords high priority to the safety of its
employees. Conscious eforts were made to improve
safety practices across all the units. DuPont Safety
Services, Internationally best known consultant in
safety, were engaged to undertake the safety culture
assessment across all the units.
The Company had published Sustainable Development
Report for 2008-2009 and 2009-10 based on
International Guidelines of GRI G3 with application level
of A+ and has plans to publish at the same level in 2010-11.
Sesa Goa continued its focus on CSR activities with
strong commitment in Stake holder engagement to
understand the community needs. Company has
associated with reputed CSR partners to implement the
CSR programs. Notably among them is University of
Agricultural Sciences Dharwad for Alternative Livelihood
Methods for the communities around A. Narain Mine,
Chitradurga, Karnataka, Gram Nirman-Codli with
Mineral Foundation of Goa and Government of Goa and
so on. Details on the Company’s CSR and sustainable
development initiatives are given in the chapter on
Management Discussion and Analysis that forms a part
of this Annual Report.
Awards
Your Company was awarded with the following
prestigious awards during the year 2010-11
` Awarded the Goan Achievers Award for Corporate
Social Responsibility at an award function organised
by Navhind Times and Viva Goa Magazine in Goa
on 28th March, 2011.
` Won the Environmental Sustainability Excellence
Award 2010-11, by the Indian Chamber of
Commerce at Kolkata on 9th March, 2011.
` Conferred the award of being an ‘Excellent Water
Efcient Unit — Beyond Fence’ at the Seventh
Award for Excellence in Water Management 2010,
organised by the Confederation of Indian Industry
(CII), Godrej Green Business Centre.
` Excellence award for Aforestation for Sanquelim
and overall performance Award for Codli Mines by
Indian Bureau of Mines (IBM).
` Sesa Goa received British Safety Councils
International Safety Award 2011 for its 5 units.
` Pig Iron Division and Met Coke Division received the
’Gomantak Suraksha Patra’ for safety performance
for 2009 during an award function organised by the
Green Triangle Society of Goa, in collaboration with
Inspectorate of Factories & Boilers, in May 2010.
` Received the best performer award instituted
by Financial Express–EVI in the Metals and
Mining category for its contributions towards the
environment and the excellence in the area of
Green Businesses.
` Won the runners up trophy for the Best Corporate
Social Responsibility Award for its Alternate
Livelihood Project by Bombay Stock Exchange at
its Sixth Social and Corporate Governance Awards
2010, on 16th December, 2010 at Mumbai.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
37
Fixed Deposits
As reported last year, the Company has discontinued
renewal of its ?xed deposits on maturity. As on 31st
March, 2011, all ?xed deposits had matured. 11 deposits
amounting to ` 1.56 lakhs remained unclaimed. All these
depositors are regularly advised about maturity of their
deposits and urged to claim these as soon as they can.
Safety
The FSI is an index which simultaneously takes into
account both the frequency and severity of accidents.
The Company’s safety performance is given below:
Division FSI
2010-11 2009-10
Mining 0.141 0.308
Shipping Division 5.477 0
Shipbuilding Division 0.106 1.019
Metallurgical Coke Division 0 0
Pig Iron Division 0 1.648
SGL Group 0.561 0.819
Group Structure
The Agarwal Group being a group de?ned under the
Monopolies and Restrictive Trade Practices Act, 1969,
controls the Company. A list of its group entities is given
below:
Sr.
No
List of Vedanta Group Companies Country of
incorporation
1 Mr. Anil Agarwal
2 Anil Agarwal Discretionary Trust Bahamas
3 Onclave PTC Limited Bahamas
4 Volcan Investments Limited Bahamas
5 Vedanta Resources Plc Great Britain
Direct Subsidiaries of the Parent Company
6 Vedanta Resources Holding Limited Great Britain
7 Vedanta Resources Jersey Limited Jersey(CI)
8 Vedanta Resources Jersey II Limited Jersey(CI)
9 Vedanta Finance (Jersey) Limited Jersey(CI)
10 Vedanta Resources Investments Limited Great Britain
11 Vedanta Jersey Investments Limited Jersey(CI)
Indirect Subsidiaries of the Parent Company
12 Bharat Aluminium Company Limited India
13 Copper Mines Of Tasmania Pty Limited Australia
14 Fujariah Gold UAE
15 Hindustan Zinc Limited India
16 The Madras Aluminium Company Limited India
17 Monte Cello BV Netherlands
18 Monte Cello Corporation NV Netherlands
19 Konkola Copper Mines PLC Zambia
20 Sterlite Energy Limited India
Sr.
No
List of Vedanta Group Companies Country of
incorporation
21 Sesa Goa Limited India
22 Sesa Resources Limited India
23 Sesa Mining Corporation Limited India
24 Sterlite Industries (India) Limited India
25 Goa Maritime Private Limited India
26 Sterlite Opportunities and Venture Limited India
27 Sterlite Infra Limited India
28 Thalanga Copper Mines Pty Limited Australia
29 Twin Star Holding Limited Mauritius
30 Vedanta Aluminium Limited India
31 Richter Holding Limited Cyprus
32 Westglobe Limited Mauritius
33 Finsider International Company Limited Great Britain
34 Vedanta Resources Finance Limited Great Britain
35 Vedanta Resources Cyprus Limited Cyprus
36 Welter Trading Limited Cyprus
37 Lakomasko BV Netherlands
38 THL Zinc Ventures Limited - Former THL KCM
Limited
Mauritius
39 Twinstar Energy Holdings Limited - Former
THL Aluminium
Mauritius
40 THL Zinc Limited - Former KCM Holdings
Limited
Mauritius
41 Sterlite (USA) Inc. USA
42 Talwandi Sabo Power Limited India
43 Allied Port Services Pvt Ltd India
44 Konkola Resources Plc Great Britain
45 Vizag General Cargo Berth Pvt. Limited India
46 Twin Star Mauritius Holding Limited Mauritius
47 Vedanta Namibia Holdings Limited Namibia
48 Skorpion Zinc (Pty) Limited Namibia
49 Namzinc (Pty) Limited Namibia
50 Skorpion Mining Company (Pty) Limited Namibia
51 Amica Guesthouse (Pty) Ltd Namibia
52 Rosh Pinah healthcare (Pty) Ltd Namibia
53 Black Mountain Mining (Pty) Ltd South Africa
54 THL Zinc Holding BV - Former Labaume BV Netherlands
55 Lisheen Mine Partnership Ireland
56 THL Zinc Holding Cooperative U.A Netherlands
57 Pecvest 17 Pvt. Ltd. South Africa
58 Vedanta Lisheen Finance Limited Ireland
59 Vedanta Base Metals (Ireland) Limited Ireland
60 Vedanta Lisheen Mining Limited Ireland
61 Killoran Lisheen Mining Limited Ireland
62 Killoran Lisheen Finance Limited Ireland
63 Lisheen Milling Limited Ireland
64 Killoran Concentrates Limited Ireland
65 Killoran Lisheen Limited Ireland
66 Killoran Lisheen Holdings Limited Ireland
67 Azela Limited Ireland
68 Paradip Port Services Pvt Limited India
69 MALCO Power Company Limited India
70 Malco Industries Limited India
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
38
Directors’ Responsibility Statement
Your Directors con?rm that:
(i) the applicable accounting standards have been
followed along with proper explanations relating
to material departures, if any, for preparation of the
annual accounts;
(ii) the accounting policies have been selected and
applied consistently and judgments and estimates
have been made that are reasonable and prudent,
so as to give a true and fair view of the state of
afairs of the Company at the end of the ?nancial
year ended 31st March, 2011 and of the pro?ts of
the Company for that year;
(iii) proper and sufcient care has been taken
to maintain adequate accounting records in
accordance with the provisions of the Companies
Act, 1956, for safeguarding the assets of the
Company and for preventing and detecting fraud or
other irregularities;
(iv) the annual accounts have been prepared on a going
concern basis.
Directors
Mr. Ashok Kini and Mr. P. G. Kakodkar, Directors, retire
by rotation at the ensuing Annual General Meeting and,
being eligible, ofer themselves for re-appointment.
The Board of Directors, at its meeting held on 19th July,
2010 appointed Mr. Jagdish Pal Singh as Additional
Director of the Company. In terms of Section 260 of the
Companies Act, 1956, he will be holding ofce up to the
ensuing Annual General Meeting, and being eligible,
ofer himself for appointment.
Auditors
The Company’s Auditors, M/s. Deloitte Haskins & Sells,
Chartered Accountants retire at the ensuing Annual
General Meeting and are eligible for re-appointment.
Compliance Certi?cate
A certi?cate from the Auditors of the Company
regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing
Agreement is attached to this Report along with report
on Corporate Governance.
Listing
As stipulated under Clause 32 of the Listing Agreement,
the names and addresses of Stock Exchange on which
the Company’s equity shares are listed are:
1) Bombay Stock Exchange Limited,
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai - 400 001.
2) National Stock Exchange of India Limited,
Exchange Plaza, Bandra Kurla Complex,
Bandra East, Mumbai - 400 051.
Your Company con?rms that Annual Listing Fees for the
year 2010-11 have been paid.
Employees
Your Directors express their deep appreciation for the
unrelented co-operation and support rendered by the
employees at all levels of the Company. Your Directors
wish to lay emphasis on safe working culture in the
organization and urge all the employees to not only
follow safety standards but also to excel in all safety
parameters.
Statement of Particualrs of Employees as required in
terms of Section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees)
Rules 1975, is annexed hereto.
Acknowledgement
Our Chairman, Mr. S. D. Kulkarni, has stepped down from
the Board w.e.f. 24th January, 2011 after serving the
Company for 10 years. The Board of Directors would like
to thank Mr. Kulkarni for his substantial contributions,
and for guiding Sesa Goa to its pioneering position.
The Directors would like to thank the employees and
employee unions, shareholders, customers, suppliers,
bankers, regulatory authorities and all the other business
associates of the Company for their con?dence and
support to its Management.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
39
Annexure-A to Directors’ Report
Information as per Section 217 (1) (e) read with the
Companies (Disclosure of particulars in the Report of Board
of Directors) Rules, 1988 and forming part of the Directors’
Report for the year ended 31st March, 2011.
(A) Conservation of Energy
Fuel consumption and engine emission levels of
the barge ?eet, transport vehicles and earth moving
equipment, together with the optimisation of electrical
energy consumption in all activities, remains a focus
area of the Company. Waste heat from the coke ovens
is being utilised in the power plant to generate clean
electrical energy.
(B) Technological Absorption
Particulars with respect to Technology Absorption are
given below in the prescribed Form B:
Research and Development (R&D):
1. Speci?c areas in which R&D have been carried out by
the Company:
The Company is looking for new process designs
and applications of efcient machinery for iron ore
bene?ciation and mining on a continuous basis. Focus
is also on towards process development work on the
recovery of iron from tailings along with optimization
of blend of various grades to achieve customer
satisfaction and to conserve the iron ore resources.
While the Company holds a patent in India for the
system of producing metallurgical coke by the non-
recovery method based on the technology that it has
developed, the European Patent Ofce has cleared
the innovation for grant of patent in Europe. The
technology is continuously upgraded through various
initiatives.
The US Patent Ofce has allowed issuance of patent
on company’s latest innovation titled “Reduction of
Sulphur-containing gases during conversion of coal
into metallurgical coke”.
The Company has set up a state-of-the art Coal
Carbonization Laboratory that is equipped with
1-tonne pilot non-recovery coke oven, developed
in-house and is ?rst of its kind in the non-recovery
coke oven category, apart from modern facilities for
coal characterization and coke quality evaluation. The
facility is used for coal selection and optimization of
coal blend.
2. Bene?ts derived as a result of the above R & D:
Reductions in operating cost and environmental
control improvement, besides optimizing the product
mix as well as conservation of resource are the results
of the above activities. The coke business will also be
reaping bene?ts through upgrading of technology.
3. Future plans of action:
Developmental work will continue to be carried out in
all the above areas with a focus on cost reduction and
quality improvement. The coke-making technology
would be under continuous focus for further design
improvements with an objective to reduce capital
cost. Pilot oven facilities shall be used for maximizing
cheaper semisoft coal through coal blend optimization
tests
4. Expenditure on R&D:
2010-2011
(` in crore)
2009-2010
(` in crore)
a) Capital - -
b) Recurring (revenue) 0.29 0.29
c) Total 0.29 0.29
d) Total R & D expenditure
as a percentage of total
turnover
0.004% 0.006%
Technology Absorption, Adaptation and Innovation:
1. Eforts made towards technology absorption,
adaptation and innovation are outlined below:
The Company maintains a close contact and
continuous interaction with its principal shareholder,
other consultants, its foreign associates, customers as
well as with the suppliers of specialised equipment.
Various innovative initiatives undertaken for
enhancement of ecology have been detailed elsewhere
above.
2. Bene?ts derived as a result of the above eforts are
inter alia:
a) Improved mining efciencies and product quality
control.
b) Improvement in pollution control system.
c) New design of coke ovens with better combustion
control and improved conservation of heat
energy.
d) Improved and sustainable resource and
environment management.
3. On completion of the research project conducted
in association with the Microbiology Dept. of Goa
University, Goa, mine land reclamation will become
further efective.
(C) Foreign Exchange Earnings and Outgo
The Company’s major foreign exchange earnings and
outgo are on account of export of iron ore and import
of coking coal respectively. During the year, foreign
exchange earnings were ` 6,281 crore and outgo
(including dividend remittance) ` 1,112 crore (details
are given in Schedule 19). Hence, the net foreign
exchange earning was ` 5,169 crore.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
40
Annexure-B to Directors’ Report
Particulars of Employees pursuant to Section 217( 2A) of the Companies Act, 1956, read with the Companies (Particulars of
Employees) Rules, 1975, forming part of the Directors’ Report for the year ended 31st March, 2011
Sr.
No.
Name of the
Employee
Designation/ Nature
of Duties
Gross
Remuneration
(` in Crores)
Quali?cation Experience
in Years
Date of
Commencement
of Employment
Age
of the
Employee
(Years)
Last Employment held
before joining the
Company
1 2 3 4 5 6 7 8 9
(A) Employed throughout the ?nancial year
1 Mukherjee P. K. Managing Director 2.41 B.Com (Hons.) F.C.A., A.I.C.W.A. 31 14-04-1987 55 Ceat Tyres of India Ltd.,
Calcutta
2 Rai A. K. Wholetime Director 1.29 B.Sc. Mining Engg. 1st Class
Mine Manager’s Certi?cate
35 14-04-1975 59 Sr. General Manager, Pig
Iron Plant, Sesa Industries
Ltd. Amona
3 Pradhan Amit Wholetime Director 1.00 M.Sc.(Physics) 33 15-01-1990 56 Wholetime Director Sesa
Industries Ltd.
4 Joshi A. N. V P - Corporate
Afairs
0.68 B.Tech (Mining Engg.) 1st Class
Mine Manager's Certi?cate
33 03-07-1993 56 Visakhapatnam Steel
Plant
5 Patil M. K. A V P - HSEC 0.61 M.Sc. (Agriculture), MBA 22 15-04-1991 47 Zuari Agro Chemicals
Ltd. , Goa
(B) Employed for part of the ?nancial year
1 Czamarka
Gustavo
Head - Iron Ore
Marketing
1.37 B.A. (Economics), PGDBM ,
Master International Mgmt
16 30-08-2010 36 VALE Singapore
2 Patnaik Tapan BM - Mining Eastern
Region
0.81 B.Sc. Engg (Met) 31 20-09-1990 54 G M - Pig Iron Plant, Sesa
Industries Amona Goa
3 Surendra K. V. GM - Mining
Karnataka
0.05 Diploma in Mining & Mine
Survey
28 02-12-2002 48 V M Salgaocar & Bros.
Pvt. Ltd.
4 D'souza Diogo
A.
Head Mechanic I 0.05 Std. VII 38 20-12-1976 59 Laxmi Garage Mapusa
5 Ghogale
Narayan N.
Sr. Mine Foreman 0.06 SSC 33 03-10-1980 60 M S Agrawal Minerals
(Goa) Pvt. Ltd.
6 Rajanna
Gowda M. V.
Asst. Manager -
Mining
0.08 Diploma Mining Engg 39 01-04-1994 60 M/s Mineral Enterprises
Pvt. Ltd. Chitradurga ,
Karnataka
Notes:
1 Remuneration as shown above includes Salary, House Rent Allowance, Performance Pay, Commission (in case of Managing
Director), Company’s Contribution to Provident Fund & Annuity Fund, Leave Travel Assistance and expenditure by the
Company on accommodation, medical and other facilities, wherever applicable, as per contracts of service. In addition the
Wholetime Directors/employees are entitled to Gratuity and they are also covered under Group Personal Accident Insurance
Policy.
2 None of the employees mentioned above is a relative of any Director of the Company.
3 The nature of employment is contractual.
4 No employee holds by himself or alongwith his/her spouse and dependent children, two percent or more equity shares of the
Company.
For and on behalf of the Board of Directors
Place: Panaji-Goa G. D. Kamat P. K. Mukherjee
Dated: 25th April, 2011 Director Managing Director
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
41
We, P.K. Mukherjee, Managing Director and Sushil Gupta, Director Finance, responsible for the ?nance function, certify
that:
(a) We have reviewed the ?nancial statements, read with the cash ?ow statement of Sesa Goa Limited for the year
ended 31st March, 2011 and that to the best of our knowledge and belief, we state that;
(i) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that may be misleading;
(ii) these statements present a true and fair view of the Company’s afairs and are in compliance with current
accounting standards, applicable laws and regulations.
(b) To the best of our knowledge and belief, there are no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the Company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for ?nancial reporting. We have
evaluated the efectiveness of internal control systems of the Company pertaining to ?nancial reporting and
have not noticed any de?ciency that need to be recti?ed or disclosed to the Auditors and the Audit Committee.
(d) During the year under reference-
(i) there were no signi?cant changes in the internal control over ?nancial reporting;
(ii) No signi?cant changes in accounting policies were made that require disclosure in the notes to the ?nancial
statements; and
(iii) No instance of signi?cant fraud and the involvement therein, if any, of the management or an employee
having a signi?cant role in the Company’s internal control system over ?nancial reporting, has come to our
notice.
Place: Panaji-Goa P. K. Mukherjee Sushil Gupta
Date: 25th April, 2011 Managing Director Director Finance
CEO / CFO Certi?cation
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
42
The Securities and Exchange Board of India (SEBI) regulates corporate governance practices of companies listed
on the Indian Stock Exchanges. These regulations are noti?ed under Clause 49 of the Listing Agreements of all the
Stock Exchanges in the country. They specify the standards that Indian companies have to meet, and the disclosures
that they have to make, with regard to corporate governance. Sesa Goa Limited (‘Sesa Goa’ or ‘the Company’)
has established systems and procedures to comply in letter and in spirit with the provisions of Clause 49 of the
Listing Agreement. This chapter, along with the chapters on Additional Shareholders Information and Management
Discussion and Analysis, reports Sesa Goa’s compliance in this regard.
1. Company’s Philosophy on Corporate Governance
Sesa Goa is committed to executing sustainable business practices and creating long-term value for all its
stakeholders. To pursue this objective, the Company remains steadfast in its value systems that incorporate
integrity, transparency and fairness across all its business activities.
The Company continues to focus on its commitments towards the development of the community where it
operates. It has adopted best practices towards preserving the environment and adherence to the highest safety
standards remains a focus area across all operations. Sesa Goa’s value systems are based on the foundation of
fair and ethical practices in all its dealings with stakeholders including customers, vendors, contractors, suppliers
and all others who are part of the Company’s business value chain.
Towards this end, all Directors and Senior Management are committed to the Company’s Code of Conduct, the
compliance to which is periodically reviewed.
2. Board of Directors
i. Composition of the Board
As on 31st March, 2011, the Company has eight Directors on its Board, of which three are Executive Directors
and ?ve Non-Executive Directors. Four of the Non-Executive Directors are independent. Mr. S. D. Kulkarni,
Independent Non-Executive Director and Non-Promoter Chairman resigned w.e.f 24th January, 2011. The
Board of Directors have not yet appointed a Chairman.
ii. Directors’ attendance record and Directorship held
The names and categories of the Directors on the Board, their attendance at Board meetings during the year
and at the last Annual General Meeting, as also the number of Directorships and Committee memberships
held by them in other companies are given below:
Name of the Directors Category No. of Board meetings
during the year 2010-11
Whether attended
last AGM held on
19th July, 2010
Number of
Directorships
in other public
companies *
Number of Committee
positions held in public
companies *
Held Attended Member Chairman
S.D. Kulkarni
(Chairman)
(resigned w.e.f
24th January, 2011)
Independent
Director
7 0 No 2 2 2
P. G. Kakodkar Independent
Director
10 3 No 8 3 2
G. D. Kamat Independent
Director
10 8 Yes - 1 -
J.P Singh
(Appointed w.e.f
19th July, 2010)
Independent
Director
9 4 Not Applicable 1 1 1
Report on Corporate Governance
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
43
Name of the Directors Category No. of Board meetings
during the year 2010-11
Whether attended
last AGM held on
19th July, 2010
Number of
Directorships
in other public
companies *
Number of Committee
positions held in public
companies *
Held Attended Member Chairman
Ashok Kini
(Appointed w.e.f
24th January, 2011)
Independent
Director
4 1 Not Applicable 3 4 -
K. K. Kaura Non-Executive
Director
10 5 Yes 1 1 -
A. Pradhan Whole-time
Director
10 10 Yes - - -
A.K. Rai Whole-time
Director
10 9 Yes 2 - -
P.K. Mukherjee Managing
Director
10 10 Yes 2 2 -
* excluding private limited companies, foreign companies and Companies under Section 25 of the
Companies Act, 1956.
None of the Directors on the Board is a member of more than ten Committees and Chairman of more
than ?ve Committees (as speci?ed in Clause 49), across all the companies in which he is a Director. The
necessary disclosures regarding Committee positions have been made by the Directors.
Dates for the Board Meetings in the ensuing year are decided well in advance and communicated to the
Directors. The agenda along with the explanatory notes are sent in advance to the Directors. Additional
meetings of the Board are held when deemed necessary by the Board.
The information as required under Annexure IA to Clause 49 is being made available to the Board.
The Board periodically reviews compliance reports of all laws applicable to the Company. Steps are taken by
the Company to rectify instances of non-compliance, if any.
During 2010-11, the Company did not have any material pecuniary relationship or transactions with
Non-Executive Directors.
iii. Number of Board Meetings
Ten Board meetings were held during the year 2010-11 and the gap between two meetings did not exceed
four months. The dates on which the Board meetings were held were as follows: 19th April, 2010, 19th July,
2010, 16th August, 2010, 18th October, 2010, 14th November, 2010, 30th December, 2010, 24th January, 2011,
17th February, 2011, 12th March, 2011 and 19th March, 2011.
iv. Code of conduct
The Company has adopted the Sesa Goa Code of Conduct for Executive and Non-Executive Directors,
Senior Management Personnel and other executives of the Company. The Company has received
con?rmations from the Executive and Non-Executive Directors, as well as Senior Management Personnel
regarding compliance of the Code during the year under review. The Code of Conduct is posted on the
website of the Company.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
44
v. Directors Pro?le
Sr.
No.
Name Age Quali?cation Experience Other Directorships*
i. P.G. Kakodkar
DIN: 00027669
74 M.A.
(Economics)
Appointed as Director on 31st March, 2000.
Over 40 years experience in State Bank
of India, Retired as Chairman of SBI. He is
currently IT and Banking Consultant.
o Goa Carbon Ltd.
o Uttam Galva Steel Ltd.
o Financial Technologies
(India) Ltd.
o Fomento Resorts and
Hotels Ltd.
o Centrum Finance Ltd.
o Multi Commodity
Exchange of India Ltd.
o IBX Forex Ltd.
o Anand Rathi Financial
Services Ltd.
ii. G.D. Kamat
DIN: 00015932
76 B.A., L.L.B. Appointed as Director on 22nd December,
2005.
Over 45 years experience in the ?eld of
Legal Practice and Judiciary. Retired as
Chief Justice of Gujarat High Court in 1996.
Presently engaged in Judicial work relating
to Arbitration and Conciliation.
-
iii. K. K. Kaura
DIN: 00006293
64 BE (Hons)
Mechanical
Engg.
Director since 30th October, 2007.
18 years of experience at ABB India
at various operations and business
management positions. He was a member
of Directors of ABB India from 1996 and
was Managing Director and County
Manager of ABB from 1998 to 2001. In 2002
joined Sterlite and was Managing Director
of Hindustan Zinc Ltd. and became
the Chief Operating Ofcer of Vedanta
Resources plc since its inception. He was
a Director of Hindustan Zinc Ltd., Vedanta
Alumina and Copper Mines Tasmania Pty
Ltd. and became Chief Executive Ofcer,
Vedanta Resources plc, also Managing
Director of Sterlite and Deputy Chairman of
Konkola Copper Mines.
o ACC Ltd.
iv. J.P Singh
DIN: 02782928
63 M.A, MPA
(Harvard), IAS
Retd. (Rajasthan
1972)
Appointed as Additional Director on
19th July, 2010.
He is Former Secretary, Ministry of Finance
(DOD) and Ministry of Mines, Special
Secretary Labour and has over 36 year of
executive experience in key positions in
the state and union government.
o BEML Limited
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
45
Sr.
No.
Name Age Quali?cation Experience Other Directorships*
v. Ashok Kini
DIN: 00812946
65 B.Sc/M.A./
C.A.I.I.B
(Certi?ed
Associate,
Indian Institute
of Bankers)
Appointed as Director on 24th January, 2011.
Mr. Ashok Kini is former Managing Director,
State Bank of India. He was responsible
for the Bank’s IT plans, from concept
to execution and vendor management,
domestic distribution, retail business,
consumer banking, marketing/brand
management, etc. He is currently on
Board of IndusInd Bank Limited, Gulf
Oil Corporation Limited, UTI Asset
Management Company and Financial
Information Network & Operations Pvt.
Limited.
o Gulf Oil Corporation
Limited
o IndusInd Bank Limited
o Financial Inclusion
Network and Operations
Limited
vi A. Pradhan
DIN: 00128568
56 M.Sc. (Physics)
from I.I.T. Delhi
Appointed as Director on 1st July, 2000.
33 years experience in Materials/Project
Management.
-
vii. A.K. Rai
DIN: 00016060
59 B.Sc. in Mining
Engineering
from Banaras
Hindu
University
Appointed as Director on 1st February, 1999.
34 years experience in the ?eld of Mining.
o Sesa Resources Limited
o Sesa Mining Corporation
Limited
viii. P.K. Mukherjee
DIN: 00015999
55 B. Com. (Hons.)
F.C.A., A.I.C.W.A.
Appointed as Director on 1st July, 2000 and
Managing Director from 1st April, 2006.
32 years experience in Finance, Accounts,
Costing, Taxation, Legal and Management.
o Sesa Resources Limited
o Sesa Mining Corporation
Limited
* excluding private limited companies, foreign companies and Companies under Section 25 of the
Companies Act, 1956.
3. Audit Committee
The Audit Committee of the Company is constituted in line with the provisions of Clause 49 of the Listing
Agreements with the Stock Exchanges read with Section 292A of the Companies Act, 1956.
i. Terms of reference
a) Oversight of the Company’s ?nancial reporting process and the disclosure of its ?nancial information
to ensure that the ?nancial statement is correct, sufcient and credible.
b) Recommending to the Board, the appointment, re-appointment and, if required, the replacement or
removal of the statutory auditors and ?xation of audit fees.
Approval of payment to statutory auditors for any other services rendered by the statutory auditors.
c) Reviewing with management the annual ?nancial statements before submission to the Board,
focussing primarily on:
? Matters required to be included in the Director?s Responsibility Statement to be included in the
Board’s report in terms of Clause (2AA) of Section 217 of the Companies Act, 1956;
? Changes, if any, in accounting policies and practices and reasons for the same,
? Major accounting entries involving estimates based on the exercise of judgement by management,
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
46
? Ouali?cations in draft audit report,
? Signi?cant adjustments arising out of audit,
? Compliance with listing and legal requirement concerning ?nancial statements,
? Disclosure of any related party transactions.
d) Reviewing with management, performance of statutory and internal auditors, adequacy of the internal
control systems.
e) Reviewing the adequacy of internal audit function, including structure of the internal audit department,
stafng and seniority of the ofcial heading the department, reporting structure coverage and
frequency of internal audit.
f) Discussion with internal auditors any signi?cant ?ndings and follow up thereon.
g) Reviewing the ?ndings of any internal investigations by the internal auditors into matters where
there is suspected fraud or irregularity or a failure of internal control systems of a material nature and
reporting the matter to the Board.
h) Discussion with statutory auditors before the audit commences, nature and scope of audit as well as
have post audit discussion to ascertain any area of concern.
i) To look into the reasons for substantial defaults in payment to the depositors, debenture holders,
shareholders (in case of non payment of declared dividends) and creditors.
j) Reviewing with management, the quarterly ?nancial statements before submission to the Board for
approval.
k) To review the functioning of the Whistle Blower mechanism, in case the same is existing.
l) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
ii. Composition, names of members and attendance during the year
As on 31st March, 2011, the Audit Committee comprised of four Independent Directors and one
Non-Executive Director. The composition of the Audit Committee and the details of meetings attended by
the members of the Audit Committee are given below:
Name of the Member Category No. of Meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 4 1
S. D. Kulkarni (upto 24th January, 2011) Independent Director 4 -
G. D. Kamat Independent Director 4 4
K. K. Kaura Non-Executive Director 4 4
J. P. Singh (w.e.f. 19th July, 2010) Independent Director 3 3
Ashok Kini (w.e.f. 19th March, 2011) Independent Director - -
Four Audit Committee Meetings were held during the ?nancial year ended 31st March, 2011 and the gap
between two meetings did not exceed four months. The dates on which the Audit Committee Meetings
were held are as follows:
19th April, 2010, 19th July, 2010, 18th October, 2010 and 24th January, 2011. Necessary quorum was present
at the above meetings.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
47
The Audit Committee Meetings are usually held at the Corporate Ofce of the Company and are attended by
the Managing Director, Director Finance (Designate), AVP Finance and the representatives of Statutory Auditors
and Internal Auditors. The Company Secretary & AVP Legal acts as the Secretary to the Audit Committee.
The Chairman of the Audit Committee, Mr. P.G. Kakodkar was not present at the last Annual General Meeting
of the Company held on 19th July, 2010 due to ill health.
4. Remuneration Committee
i. Terms of reference
The Company has constituted a remuneration committee of Directors in September 2000. The broad terms
of reference of the Committee are to appraise the performance of Managing/Executive Directors, determine
and recommend to the Board, compensation payable to them, details of which are included in this report.
ii. Composition, names of members and attendance during the year
As of 31st March, 2011, four member Remuneration Committee comprised of Non-Executive Directors,
of whom three were Independent. The composition of the Remuneration Committee and the details of
meetings held and attended by the member of the Remuneration Committee are given below:
Name of the Member Category No. of Meetings during the year 2010-11
Held Attended
S. D. Kulkarni - Chairman (upto 24th January, 2011) Independent Director 2 -
P. G. Kakodkar Independent Director 2 -
G. D. Kamat Independent Director 2 2
K. K. Kaura Non-Executive Director 2 2
Ashok Kini
(w.e.f. 19th March, 2011)
Independent Director - -
Two Remuneration Committee Meetings were held during the year 2010-11 on 19th July, 2010 and
24th January, 2011.
The Chairman of the Remuneration Committee, Mr. S.D. Kulkarni, was not present at the Annual General
Meeting of the Company held on 19th July, 2010 due to ill health.
iii. Remuneration Policy
Non-Executive Directors
Remuneration of the Non-Executive Directors of the Company by way of sitting fees and commission is
decided by the Board of Directors. Payment of commission to any individual Non-Executive Director is
determined by the Board and is broadly based on attendance, contribution at the Board Meetings and
various Committee Meetings as well as time spent on various issues other than at these meetings.
Sitting Fees
The Company pays sitting fees of ` 20,000 per meeting for attending Board Meeting and Audit Committee
Meeting and ` 10,000 for other Committee Meeting to the Directors other than the Managing and the
Whole-time Directors (including the Whole-time Directors of the Subsidiary Companies, Sesa Resources
Limited and Sesa Mining Corporation Limited). Mr. K.K. Kaura, Non-Executive Director, has waived the
payment of Sitting Fees for attending Board/Committee Meetings.
Managing and Executive Directors
The Company pays remuneration to its Managing Director by way of salary, commission and perquisites and
to its Executive Directors by way of salary, executive allowance, performance linked pay and perquisites. The
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
48
remuneration is approved by the Board of Directors and is within the overall limits approved by shareholders
of the Company.
Service Contracts, Severance Fees and notice period with Managing and Executive Directors:
Managing Director:
Period of contract : 3 years
Termination of the contract : By either party giving the other six months notice. If
he ceases to hold the ofce of Director, he shall ipso
facto and immediately cease to be Managing Director
and the Contract shall come to an end without any
obligation on either party.
Severance fees : Nil, except for short notice pay.
Executive Directors:
Period of contract : 5 years
Termination of the contract : Same as that of the Managing Director
Severance fees : Nil, except for short notice pay.
iv. Remuneration
a) Managing Director and Executive Directors:
` in crore
Name Salary Commission Perquisites Retirement Bene?ts Total
Mr. P. K. Mukherjee 0.75 0.74 0.30 0.62 2.41
Mr. A. K. Rai 0.85 - 0.20 0.24 1.29
Mr. A. Pradhan 0.70 - 0.15 0.15 1.00
Mr. H. P. U. K. Nair
(retired on 01/10/2009)
0.15 - - - 0.15
b) Non-Executive Directors:
` in crore
Name Sitting Fees Commission
Mr. S. D. Kulkarni - 0.10
Mr. P.G. Kakodkar* 0.009 0.10
Mr. G. D. Kamat* 0.043 0.12
Mr. J.P. Singh 0.014 0.09
Mr. Ashok Kini 0.002 0.01
*Includes sitting fees paid to directors of erstwhile Sesa Industries Limited
v. Shares and convertible instruments held by the Non-Executive Directors
None of the Non-Executive Directors have shareholding in the Company as on 31.3.2011.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
49
5. Shareholders/ Investor Grievance Committee
The Company has constituted a Shareholders/ Investor Grievance Committee of Directors to look into the
redressal of complaints of investor such as transfer or credit of shares, non-receipt of dividend/ notices/ annual
reports, etc.
The composition of the Shareholders/Investor Grievance Committee and details of meetings attended by its
members are given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 4 1
P. K. Mukherjee Managing Director 4 4
Sushil Gupta Director Finance - Designate 4 4
Four meetings of the Committee were held during the year 2010-11 which are as follows: 19th April, 2010,
19th July, 2010, 18th October, 2010 and 22nd January, 2011.
The Committee reviews investor related issues and recommends measures to improve investor services. Minutes
of the Shareholders/Investors Grievance Committee Meetings are circulated to the members of the Board.
Name, designation and address of compliance ofcer:
Mr. C.D. Chitnis, Company Secretary and AVP- Legal
Sesa Ghor, Patto, Phone: + 91 832 2460720
Panaji – Goa Fax : + 91 832 2460721
E-mail: [email protected]
Details of investor complaints received and redressed:
Sr. No. Nature of Complaint Opening Balance Received Disposed of Pending
1. Non-receipt of Securities 0 1 1 0
2. Non-receipt of Dividend 0 2 2 0
Total 0 3 3 0
There were no outstanding complaints as on 31st March, 2011.
Pursuant to Section 205A read with Section 205C of the Companies Act, 1956, the Company is required to
transfer inter alia dividends, remaining unclaimed and unpaid for a period of 7 years from the due date, to the
Investor Education and Protection Fund (IEPF) set up by the Central Government.
Following is the due date for transfer of unclaimed and unpaid dividend to the IEPF by the Company in the
current year:
Financial year Dividend payment date Due Date for Transfer to IEPF*
2003-2004 (?nal) 2nd August, 2004 30th September, 2011
2004-2005 (interim) 10th January, 2005 17th February, 2012
* Indicative date, actual date may vary.
6. Other Committees
i. Share Transfer Committee
The transfers of equity shares of the Company are approved by the Share Transfer Committee, which meets
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
50
fortnightly to approve share transfers. The Committee comprises of the following Executive and
Non-Executive Directors of the Company:
? P. K. Mukherjee - Managing Director
? A. K. Rai - Whole-time Director
? Amit Pradhan - Whole-time Director
? Sushil Gupta - Director Finance (Designate)
As on 31st March, 2011, two instruments of transfer for 9040 equity shares were lying with share transfer
agents and the same will be completed by 30th April, 2011.
ii. Finance Standing Committee (earlier known as Banking and Authorisation Committee)
The Board has constituted the Finance Standing Committee to consider banking, investment and other
related issues on a case to case basis.
The composition, names of members and the attendance of members for the Finance Standing Committee
meetings is given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. G. Kakodkar - Chairman Independent Director 2 -
P. K. Mukherjee Managing Director 2 2
Sushil Gupta Director Finance (Designate) 2 2
Lalita Correia Afonso Associate Vice President - Finance 2 2
Two Finance Standing Committee Meetings were held during the ?nancial year 2010-11; on 18th October,
2010 and 22nd January, 2011.
iii. Committee for allotment of equity shares on conversion of Foreign Currency Convertible Bonds (FCCBs)
The Board has constituted an Allotment Committee to consider allotment of equity shares on conversion of
Foreign Currency Convertible Bonds (FCCBs)
The composition, names of the members and the number of meetings held of the Allotment Committee are
given below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. K. Mukherjee Managing Director 3 3
A. K. Rai Whole-time Director 3 3
Amit Pradhan Whole-time Director 3 3
Three Allotment Committee Meetings were held during the year 2010-11 on 5th April, 2010, 23rd April, 2010
and 17th May, 2010.
iv. Committee for Cairn Ofer
The Board has constituted a Cairn Ofer Committee to consider investment in Cairn India Limited through
Open Ofer.
The composition, names of the members and the number of meetings held of the Allotment Committee are
given below:
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
51
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
P. K. Mukherjee Managing Director 1 1
A. K. Rai Whole-time Director 1 1
Amit Pradhan Whole-time Director 1 1
Sushil Gupta Director Finance (Designate) 1 1
One Committee Meeting was held during the year 2010-11 on 25th August, 2010.
v. Committee for Long Term Incentive Plan (LTIP)
The Board has constituted a Committee for LTIP.
The composition, names of the members and the number of meetings held of the LTIP Committee are given
below:
Name of the Member Category No. of meetings during the year 2010-11
Held Attended
G.D. Kamat Independent Director 1 1
P.K. Mukherjee Managing Director 1 1
A. K. Rai Whole-time Director 1 1
Amit Pradhan Whole-time Director 1 1
One Committee Meeting was held during the year 2010-11 on 17th February, 2011.
7. General Body Meetings
i. General meeting
a. Annual General meeting:
Year Meeting Location Date Time
2007-08 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 23rd July, 2008 11.00 A.M.
2008-09 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 13th August, 2009 11.00 A.M.
2009-10 AGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 19th July, 2010 11.00 A.M.
b. Extra-ordinary General Meeting:
One Extra-ordinary General Meeting of the members was held during the year 2010-2011 on
18th October, 2010 as under:
Year Meeting Location Date Time
2010-11 EGM Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa 18th October, 2010 10.00 A.M.
(i) Approval under Section 372A and other applicable provisions of the Companies Act, 1956 to increase the investment limits of
the Company to an amount not exceeding ` 16,000 crores (Rupees Sixteen Thousand Crores only).
(ii) Approval in terms of Section 293 (1) (d) of the Companies Act, 1956 to borrow in excess of paid-up capital and free reserves
but not to exceed limit of ` 15,000 crores (Rupees Fifteen Thousand Crores only).
(iii) Approval pursuant to provisions of Sections 198, 269, 309, 310 and other applicable provisions, if any, of the Companies Act,
1956 to re?x the remuneration of Mr. Amit Pradhan, Wholetime Director, with base salary of ` 2,25,000/- per month, efective
from 1st April, 2010 for the unexpired period of his Contract upto 30th April, 2011, in the revised scale of ` 1,50,000/- to
` 5,00,000/- and approval to the re-appointment of Mr. Amit Pradhan as Whole-time Director of the Company efective from
1st May, 2011 upto 31st March, 2013 and to the payment of remuneration with base salary of ` 2,25,000/- per month in the
scale of ` 1,50,000/- to ` 5,00,000/-
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
52
ii. Postal ballot
Four Ordinary resolutions were put through postal ballot during the year ended 31st March, 2011 vide notice
dated 17th February, 2011, the result of which were declared on 14th April, 2011. The particulars of voting
were:
Sr.
No.
Resolution ASSENT DISSENT INVALID
No. of Shares % of total
shares
received
through postal
ballot
No. of Shares % of total
shares received
through postal
ballot
No. of
Shares
% of total
shares
received
through postal
ballot
1. Ordinary Resolution for approval and
adoption of Vedanta Resources Long
term Incentive Plan.
536103404 91.77 44839379 7.68 3231113 0.55
2. Ordinary Resolution under Sections
198, 269, 309, 310 and other applicable
provisions, if any, of the Companies
Act, 1956, for increase in the
remuneration of Mr. P.K. Mukherjee,
Managing Director.
569508374 97.07 10658919 1.82 6526523 1.11
3. Ordinary Resolution under Sections
198, 269, 309, 310 and other
applicable provisions, if any, of the
Companies Act 1956, for increase
in the remuneration of Mr. A.K. Rai,
Wholetime Director.
569479497 97.07 10682397 1.82 6531922 1.11
4. Ordinary Resolution under Sections
198, 269, 309, 310 and other applicable
provisions, if any, of the Companies
Act 1956, for increase in the
remuneration of Mr. Amit Pradhan,
Wholetime Director.
569463957 97.07 10697732 1.82 6532127 1.11
iii. Special Resolutions
Details of special resolutions passed in the General Meetings during the last three ?nancial years are as follows:
Date of General
Meeting
Number of Special
Resolutions passed
Details of the Special Resolutions
17th November,
2008, through
Postal Ballot
2 1.
2.
Approval pursuant to Section 17 of the Companies Act, 1956 for amendment to the
Object Clause of the Memorandum of Association of the Company
Approval pursuant to Section 149(2A) of the Companies Act, 1956 for
commencement of business
9th July, 2009 1 Approval under Section 81(1A) to create, ofer, issue and allot upto 33274000
(Three Crores Thirty Two Lakhs Seventy Four Thousand) Equity Shares of ` 1/-
each (Rupee One) to Promoters and its associates
13th August, 2009 1 Approval for increase in commission to the Non-Wholetime Directors of the
Company resident in India upto Rupees Five million per year.
20th October, 2009 1 Approval for borrowing upto ` 6,000 crores by way of Foreign Currency
Convertible Bonds, Quali?ed Institutional Placements and other securities and
under 293 (1)(a) creating charge on the assets and empowering the Board to take
necessary actions to implement the resolutions.
18th October, 2010 1 Approval under Section 372A and other applicable provisions of the Companies
Act, 1956 to increase the investment limits of the Company to an amount not
exceeding ` 16,000 crores (Rupees Sixteen Thousand Crores only).
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
53
8. Disclosures
i. Subsidiary Companies
The revised Clause 49 de?nes a “material non-listed Indian subsidiary” as an unlisted subsidiary,
incorporated in India, whose turnover or net worth (i.e. paid-up capital and free reserves) exceeds 20% of
the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the
immediately preceding accounting year. As per this de?nition none of the subsidiaries of Sesa Goa Limited
viz. Sesa Resources Limited and Sesa Mining Corporation Limited are material non-listed Indian subsidiaries.
The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme
of Amalgamation of Sesa Industries Limited (SIL) (an erstwhile subsidiary of Sesa Goa Limited) with the
Company efective from the appointed date i.e. 1st April 2005, by setting aside the Order dated 21st
February, 2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the
Scheme passed by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated
18th December, 2008.
ii. Materially Signi?cant Related Party Transactions
The Board has received disclosures from Key Managerial Personnel relating to material ?nancial and
commercial transactions where they and or their relatives have personal interest.
Transactions with related parties are disclosed in Note No. 26 of Schedule 19 to the Accounts in the Annual
Report. In the opinion of the Board, the transactions during 2010-11 between Sesa Goa Limited and its
subsidiaries, Sesa Resources Limited and Sesa Mining Corporation Limited have been done at arm’s length.
As per the de?nition under clasue 49 of “material non-listed Indian subsidiary” none of the subsidiaries of
Sesa Goa Limited viz. Sesa Resources Limited and Sesa Mining Corporation Limited are material non-listed
Indian subsidiaries.
iii. Non-compliance
The Company has complied with all the requirements of regulatory authorities. No penalties or strictures
were imposed on it by the stock exchanges or SEBI or any statutory authority on any matter related to
capital market during the last three years.
The Company is subjected to investigation by Serious Fraud Investigation Ofce (SFIO), Ministry of
Corporate Afairs, New Delhi and the investigation is in progress. The Company is providing all information
to SFIO and extended co-operation. The Company understands from the order that this investigation has
been initiated pursuant to a report of the Registrar of Companies that recommended such an investigation
and the order directs inquiry into allegations made in certain complaints. The investigation originates from
the complaint ?led by one of the shareholders of erstwhile Sesa Industries Limited (SIL) against SIL, the
Company and their directors in 2003 prior to the acquisition of the Company by Vedanta in April 2007.
iv. CEO/ CFO certi?cation
The CEO and CFO certi?cation of the ?nancial statements for the year is enclosed after Annexure-A of the
Directors’ Report.
v. Whistle Blower Policy
The Company has a Whistle Blower Policy to deal with any complaint relating to fraud and other ?nancial
irregularities.
vi. Adoption of Non-Mandatory Requirements
The Company has ful?lled the following non-mandatory requirements as prescribed in Annexure 1D to
Clause 49 of the Listing Agreement with the stock exchanges.
? The Company has set up a Remuneration Committee which complies with the requirements laid down
in the Code of Corporate Governance. Refer Para 4.i. for the broad terms of reference of the Committee.
? The quarterly and half-yearly results of the Company are posted on the Company?s website.
? The Company has adopted and implemented Whistle Blower Policy.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
54
9. Means of Communication
All ?nancial disclosures are available on the Company’s website www.sesagoa.com. The Company has had
informal meetings with media and institutional investors. Authorised persons of Sesa Goa also respond to
queries telephonically and by letters.
The quarterly, half-yearly and annual results are published in the Economic Times, Mumbai edition and an
English and Konkani/Marathi Daily in Goa. The results, along with ofcial news releases, are also posted on the
Company’s website.
A Management Discussion and Analysis statement is a part of the Company’s Annual Report.
10. General Shareholder Information
i. Annual General Meeting
Date: Thursday, 21st July, 2011
Time: 10.00 a.m.
Venue: Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa
ii. Financial Calendar
Financial year: 1st April to 31st March
For the year ended 31st March 2010 2011 (Tentative)
Financial results for Q.E. June 19th July, 2010 End July 2011
Financial results for Q.E. Sept. 18th October, 2010 End October 2011
Financial results for Q.E. Dec. 24th January, 2011 End January 2012
Financial results for Q.E. March 25th April, 2011 End April 2012
Annual General Meeting 21st July, 2011 July 2012
iii. Book Closure
The dates of book closure are from Tuesday, 5th July, 2011 to Thursday, 7th July, 2011 (both days inclusive).
iv. Dividend Payment
A dividend of ` 3.50 per equity share will be credited / dispatched between 21st July, 2011 and 19th August,
2011 subject to approval by the shareholders at the Annual General Meeting to be held on 21st July, 2011.
v. Listing
At present, the equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and the
National Stock Exchange of India (NSE). The annual listing fees for the ?nancial year 2010-11 to BSE and NSE
has been paid.
The Company’s 5,000 Foreign Currency Convertible Bonds (FCCBs) issued on 30th October, 2009 are listed
and traded on the Singapore Exchange Securities Trading Limited (SGX-ST) of which 2,168 bonds were
outstanding as on 31st March, 2011
vi. Stock Codes
Sesa Goa’s Stock Exchange Codes
Name of the Stock Exchange Stock Code
The National Stock Exchange of India SESAGOA EQ
The National Stock Exchange of India, DEMAT SESAGOA AE
The Stock Exchange, Mumbai 295
The Stock Exchange, Mumbai, DEMAT 500295
Singapore Exchange Securities Trading Limited 141031
The ISIN code of the Company is INE205A01025.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
55
vii. Market Price Data
High, Low (based on the closing prices) and the number of shares traded during each month during the
year 2010-11 on the National Stock Exchange Limited and the Bombay Stock Exchange Limited
NSE BSE
High (`) Low (`) No. of shares
traded
(in crore)
Monthly
Turnover
(` in crore)
High (`) Low (`) No. of shares
traded
(in crore)
Monthly
Turnover
(` in crore)
April 495.00 418.10 9.82 4486.10 494.30 419.85 2.40 1098.34
May 426.90 303.90 20.79 7596.10 427.20 304.25 6.48 2375.74
June 389.70 335.30 17.55 6395.28 389.05 333.25 5.67 2061.43
July 376.00 337.20 11.08 3954.13 376.00 337.00 3.55 1266.09
August 384.00 311.50 10.59 3589.49 383.65 312.00 2.97 1010.95
September 343.40 308.20 8.10 2644.21 343.25 309.00 2.03 661.92
October 383.65 317.20 10.15 3568.96 383.50 317.60 2.30 809.61
November 348.70 285.00 5.46 1800.91 347.85 287.00 1.24 408.82
December 330.70 287.00 7.30 2232.77 330.30 287.10 2.03 620.12
January 346.50 308.55 6.24 2066.91 346.00 308.90 1.55 513.61
February 333.40 258.00 5.00 1496.81 333.30 260.00 1.23 369.86
March 294.90 254.75 6.63 1807.91 294.80 220.55 1.61 438.36
viii. Performance of the share price of the Company
Chart A: Company’s Share Performance versus BSE Sensex
0
20
40
60
80
100
120
140
Mar
2011
Feb
2011
Jan
2011
Dec
2010
Nov
2010
Oct
2010
Sep
2010
Aug
2010
Jul
2010
Jun
2010
May
2010
Apr
2010
Sesa BSE
Sensex
Note: Both the BSE Sensex and Sesa Goa are indexed to 100 as on 1st April, 2010
Chart B: Company’s Share Performance versus NSE Nifty
0
20
40
60
80
100
120
140
Mar
2011
Feb
2011
Jan
2011
Dec
2010
Nov
2010
Oct
2010
Sep
2010
Aug
2010
Jul
2010
Jun
2010
May
2010
Apr
2010
Sesa NSE
Nifty
Note: Both the NSE Nifty and Sesa Goa are indexed to 100 as on 1st April, 2010
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
56
ix. Registrar and Transfer Agent
Karvy Computershare Private Limited
Plot No. 17 to 24, Vittalrao Nagar,
Madhapur,
Hyderabad – 500 081
Tel. : 040 – 23420818
Fax : 040 – 23420833
Email: [email protected]/[email protected]
x. Share Transfer System
The Registrar and Share Transfer Agents, Karvy Computershare Pvt. Ltd., Hyderabad, are authorised by the
Board for processing of share transfers which are approved by the Company’s Share Transfer Committee.
Share Transfer Committee Meetings are held fortnightly. Share transfer requests are processed and
despatched to the shareholders generally within 20 days from the date of receipt. All valid requests for
dematerialisation of shares are processed and con?rmation given to the depositories within 21 days.
Pursuant to Clause 47(c) of the Listing Agreement with the Stock Exchanges, on half-yearly basis, certi?cates
have been issued by a Company Secretary-in-Practice for due compliance of share transfer formalities by
the Company. Also, pursuant to Regulation 55A of SEBI (Depositories and Participants) Regulations, 1996,
certi?cation is done by a Company Secretary-in-Practice regarding timely dematerialisation of the shares of
the Company. Further, secretarial audit is done on a quarterly basis for reconciliation of the share capital of
the Company
xi. Distribution of shareholding
The distribution of the shareholding of the equity shares of the company by size and by ownership class as
on 31st March, 2011 is given below:
Shareholding pattern by size
31st March, 2011
Face value ` 1/-
Shareholding of Nominal value of ` 1/- No. of share-holders % of Total share-holders Amount in ` crore % of Amount
1 - 5000 263430 98.36 6.52 7.50
5001 - 10000 2686 1.00 2.01 2.31
10001 - 20000 949 0.35 1.35 1.56
20001 - 30000 218 0.08 0.54 0.62
30001 - 40000 144 0.05 0.50 0.58
40001 - 50000 55 0.02 0.25 0.29
50001 - 100000 111 0.04 0.81 0.93
100001 & Above 225 0.08 74.93 86.22
TOTAL 267818 100.00 86.91 100.00
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
57
Shareholding Pattern by ownership
Sr. No. Category March 31, 2011
No. of shares held % of share holding
Face value ` 1/-
a) Promoter’s holding 479113619 55.13
b) Banks, Mutual funds, Financial Institutions, Insurance Companies
(Central/State Govt. Institutions/ Non-Govt. Institutions)
41356815 4.76
c) FIIs 207928162 23.92
d) Private Corporate Bodies 27747036 3.19
e) Indian Public 107107624 12.32
f) NRIs /OCBs 2142031 0.25
g) Trust 763208 0.09
h) H U F 1525856 0.18
i) Clearing Members 1417072 0.16
Grand Total 869101423 100.00
Paid-up capital as on 31st March, 2010 was ` 830,961,802/- and on 31st March, 2011 was ` 869,101,423/-.
xii. De-materialisation of shares
Trading in equity shares of the Company is permitted only in dematerialised form w.e.f. 31st May, 1999 as
per noti?cation issued by the Securities and Exchange Board of India (SEBI). Some 92.85 % of the equity
shares of the Company (except the promoters’ holding) have been dematerialised as on 31st March, 2011.
xiii. Outstanding GDRs/ ADRs/ Warrants/ Options
The Company has issued 5,000 Foreign Currency Convertible Bonds (FCCBs) aggregating to USD 500
million. The FCCBs are convertible by Bondholders into Shares, at any time on and after 9th December,
2009, up to the close of business on 24th October, 2014 or, if the Bonds shall have been called for
redemption before the relevant Maturity Date, then up to the close of business on a date not later than
seven business days prior to the date ?xed for redemption thereof.
The Company had received notice for conversion of 755 bonds into 10,447,402 equity shares upto
31st March, 2010 and for conversion of 2077 bonds into 28,740,757 equity shares upto 31st March, 2011.
Accordingly 28,740,757 equity shares have been allotted during ?nancial year 2010-2011.
As on 31st March, 2011 there are 2168 Foreign Currency Convertible Bonds (FCCB) outstanding, which are
convertible to 30,000,033 Equity Shares.
xiv. Details of Public Funding Obtained in the last three years
On 22nd July, 2009, the Company allotted 33,274,000 Equity Shares of `1/- each to promoter’s entity Twin
Star Holdings Limited at a premium of ` 160.46 per share aggregating to ` 5,372,420,040/-.
On 30th October, 2009 the Company had issued 5,000 Foreign Currency Convertible Bonds (FCCBs)
aggregating to USD 500 million), which are listed and traded on Singapore Exchange Securities Trading
Limited (the “SGX-ST”) of which 755 bonds were converted into 10447402 equity shares of ` 1/- each at a
premium of ` 345.88 per share in ?nancial year 2009-10 and 2077 bonds were converted into 28,740,757
equity shares of ` 1/- each at a premium of ` 345.88 per share in ?nancial year 2010-11.
The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme
of Amalgamation of Sesa Industries Limited (SIL) (an erstwhile subsidiary of Sesa Goa Limited) with the
Company efective from the appointed date i.e. 1st April, 2005, by setting aside the Order dated
21st February, 2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
58
Scheme passed by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated
18th December, 2008. In accordance with the Scheme of Amalgamation approved by the Court, the Board
of Directors of the Company, at its meeting held on 12th March, 2011 allotted 9,398,864 equity shares of face
value of ` 1/- each bearing distinctive numbers 859,702,560 to 869,101,423 to the shareholders of erstwhile
SIL, holding shares as on record date, i.e. 28th February, 2011, in the ratio of 20 fully paid equity shares of ` 1
each (after adjustment for stock split and bonus shares) in the Company for 5 fully paid equity shares of ` 10
each held by the shareholders of SIL. As a result of allotment, the paid up share capital of the Company has
gone up from ` 859,702,559 to ` 869,101,423.
Financial Year Amt. raised through Public Funding Efect on paid up Equity Share Capital
2008-09 Nil Nil
2009-10 Issue of 33,274,000 Equity Shares of ` 1/- each
to promoter’s entity Twin Star Holdings Limited
at a premium of `160.46 per share aggregating
to ` 5,372,420,040/-
The number of paid up equity shares of the Company
increased from 787,240,400 shares of ` 1/- each to
820,514,400 shares of ` 1/- each.
2009-10 Issue of 5,000 Foreign Currency Convertible
Bonds (FCCBs) aggregating to USD 500 million
and consequent conversion of 755 bonds into
equity shares
The number of paid up equity shares of the Company
increased from 820,514,400 shares of ` 1/- each
to 830,961,802 shares of ` 1/- each consequent to
conversion of 755 FCCB’s
2010-11 Further conversion into equity shares of 2,077
FCCB’s issued in 2009-10
Nil
On account of further conversions of 2,077 FCCB’s
issued in 2009-10, the number of paid up equity shares
of the Company increased from 830,961,802 shares of
` 1/- each to 859,702,559 shares of ` 1/- each
On allotment of equity shares on 12th March, 2011 to
shareholders of erstwhile Sesa Industries Limited on
amalgamation, the number of paid up equity shares
of the Company increased from 85,97,02,559 shares of
`1/- each to 869,101,423 shares of `1/- each.
xv. Company’s Registered Ofce Address
Sesa Goa Limited,
Sesa Ghor,
20 EDC Complex, Patto,
Panaji, Goa 403 001,
India
Plant Locations
? Mining establishments at Goa, Karnataka and Orissa
? Pig iron Division at Navelim/Amona Goa
? Metallurgical Coke (MetCoke) Division at Amona, Goa
xvi. Address for correspondence on share issues
Karvy Computershare Private Limited The Secretarial Department
Plot No. 17 to 24, Vittalrao Nagar, Sesa Ghor, 20 EDC Complex, Patto,
Madhapur, Hyderabad – 500 081 Panaji, Goa 403 001, India
Tel.: 040 – 23420818 or Tel.: 0832-2460601
Fax: 040 – 23420833 Fax: 0832-2460721
E-mail: [email protected]/
[email protected]
E-mail: [email protected]/
[email protected]
Website: www.sesagoa.com
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
59
Annual Declaration by the Managing Director Pursuant to Clause 49(I)(D)(ii) of the Listing Agreement
As the Managing Director of Sesa Goa Limited and as required by Clause 49(I)(D)(ii) of the Listing Agreement with the
Stock Exchanges, I hereby declare that all the Board members and senior management personnel of the Company
have afrmed compliance with the Company’s Code of Conduct for the Financial Year 2010-11 .
For Sesa Goa Limited
Sd/-
Place: Panaji-Goa P. K. Mukherjee
Date: 25th April, 2011 Managing Director
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
60
To,
The Members of Sesa Goa Limited
We have examined the compliance of conditions of Corporate Governance by SESA GOA LIMITED (“the
Company”), for the year ended on 31st March, 2011, as stipulated in Clause 49 of the Listing Agreement of the said
Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our
examination has been limited to a review of the procedures and implementation thereof adopted by the
Company for ensuring compliance with the conditions of Corporate Governance as stipulated in the said Clause.
It is neither an audit nor an expression of opinion on the ?nancial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the
representations made by the Directors and the management, we certify that the Company has complied in all
material respects with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned
Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the
efciency or efectiveness with which the management has conducted the state of afairs of the Company.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Auditors’ Certi?cate on Compliance of Conditions of
Corporate Governance
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
61
Auditors’ Report
To the Members of Sesa Goa Limited
1. We have audited the attached Balance Sheet of SESA GOA LIMITED (“the Company”) as at 31st March, 2011, the
Pro?t and Loss Account and the Cash Flow Statement of the Company for year ended on that date, both annexed
thereto. These ?nancial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these ?nancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the ?nancial statements. An audit also includes assessing the accounting
principles used and signi?cant estimates made by the Management, as well as evaluating the overall ?nancial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters speci?ed
in paragraphs 4 and 5 of the same order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
(a) we have obtained all the information and explanations which, to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;
(c) the Balance Sheet, the Pro?t and Loss Account and the Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Pro?t and Loss Account and the Cash Flow Statement dealt with
by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to the explanations given to us, the said
?nancial statements give the information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of afairs of the Company as at 31st March, 2011;
(ii) in the case of the Pro?t and Loss Account, of the pro?t of the Company for the year ended on
31st March, 2011; and
(iii) in the case of the Cash Flow Statement of the cash ?ows for the year ended on 31st March, 2011.
5. On the basis of written representations received from the directors as on 31st March, 2011, and taken on record
by the Board of Directors, we report that none of the Directors is disquali?ed as on 31st March, 2011 from being
appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
62
(i) In respect of the Company’s ?xed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of the ?xed assets.
(b) The ?xed assets were physically veri?ed during the year by the Management in accordance with a regular
programme of veri?cation which, in our opinion, provides for physical veri?cation of all the ?xed assets at
reasonable intervals. According to the information and explanations given to us, no material discrepancies
were noticed on such veri?cation.
(c) The ?xed assets disposed of during the year, in our opinion, do not constitute a substantial part of the ?xed
assets of the Company and such disposal has, in our opinion, not afected the going concern status of the
Company.
(ii) In respect of the Company’s inventories:
(a) As explained to us, the inventories were physically veri?ed during the year by the Management at
reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical
veri?cation of inventories followed by the Management were reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained
proper records of its inventories and no material discrepancies were noticed on physical veri?cation.
(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, ?rms or other
parties listed in the Register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us, having regard to the explanations
that some of the items purchased are of special nature and suitable alternative sources are not readily available
for obtaining comparable quotations, there is an adequate internal control system commensurate with the size
of the Company and the nature of its business with regard to purchases of inventory and ?xed assets and the
sale of goods and services. During the course of our audit, we have not observed any major weakness in such
internal control system.
(v) According to the information and explanations given to us, the Company has not entered into any contract or
arrangement with other parties, which needs to be entered in the Register maintained under Section 301 of the
Companies Act, 1956.
(vi) According to the information and explanations given to us, the Company has not accepted any deposits from
the public during the year. In respect of unclaimed deposits, the Company has complied with the provisions
of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956. According to the
information and explanations given to us, no order has been passed in this respect, in the case of the Company
by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the internal audit functions carried out during the year by a ?rm of Chartered Accountants
appointed by the management have been commensurate with the size of the Company and the nature of its
business.
(viii) In our opinion and according to the information and explanations given to us, the Central Government has not
prescribed maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of the
Company’s products.
(ix) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor
Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate
authorities.
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
63
(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues in arrears as at 31st March, 2011 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess which
have not been deposited as on 31st March, 2011 on account of disputes are given below:
Statute Nature of dues Amount
(` in crores)
Period to which the
amount relates
Forum where the dispute is pending
Income Tax Act,
1961
Income Tax 14.89 Assessment Years 2004-05,
2006-07 and 2007-08
Commissioner of Income Tax
(Appeals), Panaji
Sales Tax Act Sales Tax 0.63 1997-98 to 2000-01 Additional Commissioner of Sales Tax
Customs Act, 1962 Customs Duty 1.40 Assessment Year 2006-07 Customs Excise and Service Tax
Appellate Tribunal, Mumbai
(x) The Company does not have any accumulated losses. The Company has not incurred cash losses during the
current ?nancial year and in the immediately preceding ?nancial year.
(xi) According to the information and explanations given to us, the Company has not taken any term loan from a
bank or ?nancial institution or borrowed any sum against issue of debentures.
(xii) According to the information and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi or a mutual bene?t society.
(xiv) According to the information and explanations given to us, the Company is not a dealer or trader in shares,
securities or debentures and other investments.
(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans
taken by others from banks or ?nancial institutions.
(xvi) According to the information and explanations given to us, the Company has not availed any term loans during
the year.
(xvii) In our opinion and according to the information and explanations given to us and on an overall examination of
the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for
long- term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by public issues during the year.
(xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
64
Particulars Sch. As at 31st March, 2011 As at 31st March, 2010
No. ` in crore ` in crore ` in crore ` in crore
SOURCES OF FUNDS
Shareholders' funds
Share capital 1 86.91 83.10
Reserves and surplus 2 11,501.90 7,125.61
11,588.81 7,208.71
Loan funds
Secured loans 3 3.31 9.61
Unsecured loans 4 968.01 1,916.19
971.32 1,925.80
Deferred tax liability 5 63.10 59.20
Total 12,623.23 9,193.71
APPLICATION OF FUNDS
Fixed assets 6
Gross block 1,214.55 836.80
Less : Depreciation 454.68 324.65
Net Block 759.87 512.15
Capital work-in-progress 654.15 68.01
1,414.02 580.16
Investments 7 9,463.81 5,478.64
Current assets, loans and advances
Inventories 8 641.49 408.66
Sundry debtors 9 506.88 278.46
Cash and bank balances 10 891.32 2,377.41
Other current assets 14.12 39.27
Loans and advances 11 1,271.51 1,111.19
3,325.32 4,214.99
Less : Current liabilities and provisions
Current liabilities 12 1,172.61 705.05
Provisions 13 407.31 375.03
1,579.92 1,080.08
Net current assets 1,745.40 3,134.91
Total 12,623.23 9,193.71
Notes to accounts 19
Per our report of even date attached
Balance Sheet
As at 31st March, 2011
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
65
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Particulars Sch.
No.
Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
INCOME
Sales of ore 7,372.74 4,909.14
Less: Ocean freight 736.31 670.86
6,636.43 4,238.28
Sales of metallurgical coke 142.10 356.54
Less: Excise duty 0.69 -
141.41 356.54
Less: Ocean freight 0.01 0.04
141.40 356.50
Sales of pig iron 728.87 -
Less: Excise duty 62.96 -
665.91 -
Less: Ocean freight 2.17 -
663.74 -
Hire of ship and transhipper 5.88 7.55
Services and other proceeds 14 63.01 58.00
Miscellaneous income 15 497.82 409.45
8,008.28 5,069.78
EXPENDITURE
Production and operational expenses 16 3,349.55 2,226.75
Administration expenses 17 101.37 73.87
Interest and other ?nance charges 18 88.43 53.69
Depreciation 83.13 57.38
3,622.48 2,411.69
Pro?t before tax 4,385.80 2,658.09
Less: Provision for taxation
Current tax 963.00 538.00
Deferred tax (10.00) 2.00
953.00 540.00
Pro?t after taxes 3,432.80 2,118.09
Balance brought forward 297.70 95.57
Add: Transferred on amalgamation of Sesa Industries Limited
(Refer Note No. 2 of Schedule 19)
283.48 -
4,013.98 2,213.66
APPROPRIATIONS
Proposed dividend 304.18 270.06
Dividend tax 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency
Convertible Bonds converted during the year (inclusive of
dividend tax of `0.51 crore)
9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited
on amalgamation (inclusive of dividend tax of `1.83 crore)
12.88 -
General reserve 2,500.00 1,600.00
2,876.26 1,915.96
Surplus carried to reserves and surplus 1,137.72 297.70
Earnings per share - Basic (Refer Note No. 25 of Schedule 19) 39.98 26.11
- Diluted (Refer Note No. 25 of Schedule 19) 39.30 25.31
Nominal value per share 1.00 1.00
Notes to accounts 19
Per our report of even date attached
Pro?t and Loss Account
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
66
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net pro?t before tax 4,385.80 2,658.09
Adjustments for:
Depreciation 83.13 57.38
Interest / dividend (net) (396.00) (158.31)
(Pro?t) / loss on sale of ?xed assets (net) (0.65) (0.12)
(Pro?t) / loss on redemption of current investments (net) (61.86) (75.21)
Provision for doubtful debts 0.07 -
Provision for doubtful advances 0.12 0.50
Provision for claim under litigation - 9.03
Unrealised exchange (gain) / loss 44.01 (125.24)
Operating pro?t before working capital changes 4,054.62 2,366.12
Adjustments for:
Trade and other receivables (281.69) (35.51)
Inventories (194.30) (176.96)
Trade payables 355.51 361.72
Cash generated from operations 3,934.14 2,515.37
Taxes paid (980.49) (511.89)
NET CASH FROM OPERATING ACTIVITIES 2,953.65 2,003.48
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of ?xed assets (837.29) (131.59)
Proceeds from sale of ?xed assets 4.30 0.36
Acquisition of subsidiaries - (1,713.24)
(Purchase) / redemption of current investments (3,673.47) (670.51)
Bank deposits having original maturity over three months 1,652.00 (2,350.00)
Interest received 198.16 103.11
Dividend received 259.92 66.70
NET CASH USED IN INVESTING ACTIVITIES (2,396.38) (4,695.17)
Cash Flow Statement
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
67
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
C. CASH FLOW FROM FINANCING ACTIVITIES :
Issue of equity shares - 537.24
Issue of Foreign Currency Convertible Bonds - 2,380.58
Inter Corporate Deposits (26.71) -
Interest paid (57.06) (5.24)
Dividend paid and dividend tax (328.14) (206.44)
NET CASH (USED IN) / FROM FINANCING ACTIVITIES (411.91) 2,706.14
NET INCREASE IN CASH AND CASH EQUIVALENTS 145.36 14.45
Cash and cash equivalents - opening balance 23.09 8.64
Add: Additions on amalgamation 9.88 -
Cash and cash equivalents - closing balance 178.33 23.09
Footnotes:
1. Cash and bank balances as per Schedule 10 891.32 2,377.41
Less: Bank deposits having original maturity over three months (698.00) (2,350.00)
Less: Unpaid dividend account (14.99) (4.32)
Cash and cash equivalents as per the cash ?ow statement 178.33 23.09
2. Equity shares issued consequent to amalgamation with Sesa Industries Limited have not been considered in the cash ?ow
statement, being a non cash transaction (Refer Note No. 2 of Schedule 19).
3. Foreign Currency Convertible Bonds converted into equity shares have not been considered in the cash ?ow statement, being
a non cash transaction (Refer Note No. 6 of Schedule 19).
4. Figures in brackets represent out?ows.
5. For notes to accounts refer Schedule 19.
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
68
Schedule 1 : Share Capital
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Authorised
1,000,000,000 (Previous year 1,000,000,000) equity shares of `1 each 100.00 100.00
Issued and Subscribed
869,101,423 (Previous year 830,961,802) equity shares of `1 each fully
paid-up
86.91 83.10
Total 86.91 83.10
Out of the above shares:
? 40í,496,480 (Previous year 40í,496,480) shares held by Finsider International Co. Ltd. U.K., the holding Company, a subsidiary of
Vedanta Resources Plc. the ultimate holding company.
? 44,S4S,íS9 (Previous year S9,098,íS9) shares held by West Globe Limited Mauritius, a subsidiary of Vedanta Resources Plc.
? í9,250,000 (Previous year í9,250,000) shares allotted as fully paid-up shares pursuant to a contract without payment being
received in cash, consequent to amalgamation of erstwhile Mingoa Private Limited with the Company, with efect from 1-4-1979.
? 685,í89,S00 (Previous year 685,í89,S00) bonus shares allotted as fully paid-up shares pursuant to capitalisation of reserves and
share pemium account.
? SS,274,000 (Previous year SS,274,000) shares allotted as fully paid-up shares on a preferential basis to Twinstar Holdings Limited, a
subsidiary of Vedanta Resources Plc.
? S9,í88,í59 (Previous year í0,447,402) shares allotted as fully paid-up shares on conversion of 2,8S2 (Previous year 755) Foreign
Currency Convertible Bonds.
? 9,S98,864 shares allotted during the year as fully paid-up shares to shareholders of the erstwhile Sesa Industries Limited for
consideration other than cash, pursuant to the Scheme of amalgamation. (Refer Note No. 2 of Schedule 19)
Schedule 2 : Reserves and Surplus
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Share premium account
As per last balance sheet 875.34 -
Add: Amount received on preferential allotment of equity shares - 533.91
Add: Amount received upon conversion of Foreign Currency
Convertible Bonds into equity shares
994.08 361.36
Less: Expenses on issue of Foreign Currency Convertible Bonds - 19.93
1,869.42 875.34
Capital reserve
As per last balance sheet 0.25 0.25
Amalgamation reserve
As per last balance sheet - -
Add: Arising during the year on amalgamation with Sesa
Industries Limited (Refer Note No. 2 of Schedule 19)
2.14 -
2.14 -
General reserve
As per last balance sheet 5,952.32 4,352.32
Add: Transferred on amalgamation 40.05 -
Add: Transferred from pro?t and loss account 2,500.00 1,600.00
8,492.37 5,952.32
Hedging reserve
As per last balance sheet - (9.08)
Add: Amount adjusted on settlement of hedge contracts - 13.76
Less: Deferred tax impact on contracts - (4.68)
- -
Pro?t and Loss Account
As per annexed account 1,137.72 297.70
Total 11,501.90 7,125.61
Schedules Annexed to and Forming Part of the Balance Sheet
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
69
Schedule 3 : Secured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
From banks
Cash credit 3.31 9.61
(Secured against hypothecation of ore stocks, consumables stores,
book debts and lodgement of letter of credit)
Total 3.31 9.61
Schedule 4 : Unsecured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Foreign Currency Convertible Bonds 968.01 1,916.19
(Refer Note No. 6 of Schedule 19)
Total 968.01 1,916.19
Schedule 5 : Deferred Tax Liability
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Deferred tax liabilities
on temporary timing diferences
- in respect of depreciation allowance 72.92 63.78
Deferred tax assets
- in respect of compensated absence 4.47 4.11
- others 5.35 0.47
9.82 4.58
Net deferred tax liability 63.10 59.20
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
70
S
c
h
e
d
u
l
e
6
:
F
i
x
e
d
A
s
s
e
t
s
P
a
r
t
i
c
u
l
a
r
s
O
r
i
g
i
n
a
l
C
o
s
t
D
e
p
r
e
c
i
a
t
i
o
n
/
A
m
o
r
t
i
s
a
t
i
o
n
N
e
t
V
a
l
u
e
O
p
e
n
i
n
g
a
s
a
t
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
A
d
d
i
t
i
o
n
s
D
e
d
u
c
t
i
o
n
s
C
l
o
s
i
n
g
a
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
F
o
r
t
h
e
Y
e
a
r
O
n
D
e
d
u
c
t
i
o
n
s
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
0
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
T
a
n
g
i
b
l
e
A
s
s
e
t
s
M
i
n
i
n
g
l
e
a
s
e
s
2
8
.
7
0
-
-
-
2
8
.
7
0
1
6
.
5
9
-
4
.
6
0
-
2
1
.
1
9
7
.
5
1
1
2
.
1
1
M
i
n
i
n
g
c
o
n
c
e
s
s
i
o
n
s
0
.
6
8
-
-
-
0
.
6
8
0
.
6
5
-
-
-
0
.
6
5
0
.
0
3
0
.
0
3
L
a
n
d
p
l
o
t
s
(
N
o
t
e
N
o
.
1
)
1
4
.
7
3
0
.
0
5
1
2
1
.
1
7
-
1
3
5
.
9
5
0
.
0
5
-
-
-
0
.
0
5
1
3
5
.
9
0
1
4
.
6
8
R
o
a
d
a
n
d
b
u
n
d
e
r
s
0
.
6
5
3
.
8
2
0
.
3
7
-
4
.
8
4
0
.
2
5
0
.
3
8
0
.
0
8
-
0
.
7
1
4
.
1
3
0
.
4
0
B
u
i
l
d
i
n
g
s
5
2
.
0
6
5
.
6
0
6
.
1
2
-
6
3
.
7
8
1
1
.
7
4
0
.
9
6
1
.
5
8
-
1
4
.
2
8
4
9
.
5
0
4
0
.
3
2
P
l
a
n
t
a
n
d
m
a
c
h
i
n
e
r
y
5
6
6
.
5
9
1
3
7
.
7
4
8
7
.
8
2
2
1
.
9
4
7
7
0
.
2
1
2
1
9
.
5
0
6
4
.
5
5
6
5
.
5
7
1
8
.
4
3
3
3
1
.
1
9
4
3
9
.
0
2
3
4
7
.
0
9
A
i
r
c
r
a
f
t
(
N
o
t
e
N
o
.
2
)
1
.
4
6
-
-
-
1
.
4
6
0
.
3
8
-
0
.
0
8
-
0
.
4
6
1
.
0
0
1
.
0
8
V
e
h
i
c
l
e
s
1
1
.
6
4
2
.
2
3
2
.
6
8
1
.
9
5
1
4
.
6
0
6
.
1
8
1
.
1
4
2
.
1
4
1
.
8
1
7
.
6
5
6
.
9
5
5
.
4
6
R
i
v
e
r
?
e
e
t
5
3
.
4
6
-
1
3
.
1
0
-
6
6
.
5
6
1
2
.
9
7
-
1
.
8
5
-
1
4
.
8
2
5
1
.
7
4
4
0
.
4
9
S
h
i
p
9
6
.
9
3
-
0
.
6
8
0
.
0
1
9
7
.
6
0
5
2
.
8
2
-
4
.
9
0
0
.
0
1
5
7
.
7
1
3
9
.
8
9
4
4
.
1
1
F
u
r
n
i
t
u
r
e
a
n
d
?
t
t
i
n
g
s
9
.
9
0
0
.
7
1
3
.
3
1
0
.
1
1
1
3
.
8
1
3
.
5
2
0
.
2
3
0
.
9
7
0
.
1
1
4
.
6
1
9
.
2
0
6
.
3
8
I
n
t
a
n
g
i
b
l
e
A
s
s
e
t
s
C
o
m
p
u
t
e
r
s
o
f
t
w
a
r
e
-
-
1
6
.
3
6
-
1
6
.
3
6
-
-
1
.
3
6
-
1
.
3
6
1
5
.
0
0
-
T
o
t
a
l
8
3
6
.
8
0
1
5
0
.
1
5
2
5
1
.
6
1
2
4
.
0
1
1
,
2
1
4
.
5
5
3
2
4
.
6
5
6
7
.
2
6
8
3
.
1
3
2
0
.
3
6
4
5
4
.
6
8
7
5
9
.
8
7
5
1
2
.
1
5
P
r
e
v
i
o
u
s
y
e
a
r
7
3
9
.
2
7
-
1
1
1
.
7
7
1
4
.
2
4
8
3
6
.
8
0
2
8
1
.
2
7
-
5
7
.
3
8
1
4
.
0
0
3
2
4
.
6
5
5
1
2
.
1
5
C
a
p
i
t
a
l
W
o
r
k
-
i
n
-
P
r
o
g
r
e
s
s
C
o
n
s
t
r
u
c
t
i
o
n
s
i
n
p
r
o
g
r
e
s
s
(
N
o
t
e
N
o
.
3
)
5
0
4
.
5
4
3
7
.
5
4
C
a
p
i
t
a
l
a
d
v
a
n
c
e
s
1
4
9
.
6
1
3
0
.
4
7
T
o
t
a
l
6
5
4
.
1
5
6
8
.
0
1
N
o
t
e
s
:
1
.
L
a
n
d
p
l
o
t
s
i
n
c
l
u
d
e
u
n
d
e
r
P
e
r
p
e
t
u
a
l
L
e
a
s
e
`
1
.
9
9
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
1
.
9
9
c
r
o
r
e
)
.
2
.
R
e
p
r
e
s
e
n
t
s
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
P
6
8
C
A
i
r
c
r
a
f
t
.
3
.
A
m
o
u
n
t
i
n
c
l
u
d
e
s
`
4
.
5
5
c
r
o
r
e
i
n
t
e
r
e
s
t
c
a
p
i
t
a
l
i
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
(
P
r
e
v
i
o
u
s
y
e
a
r
`
0
.
1
7
c
r
o
r
e
)
.
S
c
h
e
d
u
l
e
s
A
n
n
e
x
e
d
t
o
a
n
d
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
B
a
l
a
n
c
e
S
h
e
e
t
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
71
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Current Investments (at lower of cost and market value)
Non-trade, unquoted:
In Mutual Funds (Refer Note No. 13 of Schedule 19)
Birla Short Term FMP Series 4 - Dividend Payout 125.00 -
Birla Short Term Opportunity Fund - Dividend Payout 509.90 -
Birla Sunlife Cash Plus Plan 27.99 -
Birla Sunlife Ultra Short Term Fund - Institutional - Growth 340.09 -
Birla Sun Life Fixed Term Plan - Series CD (370 Days) - Growth Option 50.00 50.00
Birla Floating Rate Fund - Long Term - Institutional - Growth - 100.00
Birla Interval Income Fund Institutional (QIP) Series I - Dividend Payout - 30.00
Birla Interval Income Fund Institutional (QIP) Series II - Dividend Payout - 200.00
Birla Sun Life Saving Fund - Institutional Growth - 5.68
Canara Robeco Floating Rate Short Term - Growth 50.02 -
Canara Robeco Treasury Advantage Fund Super Institutional Fund 328.71 51.70
DSP BlackRock FMP - 3M Series 27 - Dividend 100.00 -
DSP BlackRock Money Manager Fund - Institutional - Growth 202.72 -
HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Growth 41.55 118.52
HDFC Floating Rate Income Fund - Short Term Plan - Whole - Growth 120.33 -
HDFC FMP 370 Days 2010 (2) - Dividend Payout 35.00 -
HDFC FMP 370D June 2010 (1) - Growth 25.00 -
HDFC Quarterly Interval Fund Plan C - Dividend Payout - 65.00
ICICI Prudential Floating Rate - Plan D - Growth 172.12 -
ICICI Prudential FMP Series 51 - 1 Year Plan B - Growth 20.00 -
ICICI Prudential MF - Flexible Income Plan - Institutional - Daily Dividend 150.02 -
ICICI Prudential MF - Flexible Income Plan - Institutional - Growth 64.56 -
ICICI Prudential Banking and PSU Debt Fund - Daily Dividend 238.19 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Reinvested 635.78 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Payout 100.01 -
ICICI Prudential Interval Fund II - Quarterly Interval Plan Institutional - Dividend 50.00 -
ICICI Prudential MF - Ultra Short Term Plan Super Premium - Growth Option - 79.01
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth Option 20.00 20.00
ICICI Prudential Medium Term Premium Plus - Dividend Payout - 150.00
IDFC Fixed Maturity Monthly Series - 30 - Dividend 150.00 -
IDFC FMP - Half Yearly Series 9 - Plan A - Dividend Payout - 100.00
IDFC Money Manager Fund - Institutional Plan B - Growth Option 200.00 363.38
IDFC Savings Advantage Fund - Plan A - Daily Dividend 251.27 -
Kotak FMP íSM Series 5 - Growth - 50.00
Kotak FMP S70 Days Series í - Growth - 50.00
Kotak FMP S70 Days Series S - Growth 50.00 -
Kotak FMP Ouarterly Institutional Plan Series S - Dividend Payout - 40.00
Kotak Ouarterly Institutional Plan Series 6 - Dividend Payout - 250.00
Kotak Ouarterly Institutional Plan Series 9 - Dividend Payout 80.00 -
Kotak Ouarterly Institutional Plan Series í0 - Dividend Payout 90.00 -
Kotak Floater Long Term - Growth 405.70 233.05
Reliance Fixed Horizon Fund XII - Series 4 - Super Institutional Growth - 300.00
Reliance Fixed Horizon Fund - XIII - Series 3 - Super Institutional Growth - 60.00
Reliance Fixed Horizon Fund - XIV - Series 1 - Super Institutional Growth 100.00 100.00
Reliance Fixed Horizon Fund - XIV - Series 5 - Super Institutional Growth 50.00 50.00
Reliance Fixed Horizon Fund - XV - Series 4 - Super Institutional Growth 50.00 -
Reliance Fixed Horizon Fund - XV - Series 5 - Super Institutional Growth 25.00 -
Reliance Fixed Horizon Fund - XV - Series 6 - Super Institutional Dividend 200.00 -
Reliance Monthly Interval Fund - Series I - Institutional - Dividend 150.01 -
Reliance Monthly Interval Fund - Series II - Institutional - Dividend 296.02 -
Reliance Monthly Interval Fund - Series II - Institutional - Growth - 100.00
Reliance Medium Term Fund - Retail Plan - Growth Option - 25.07
Reliance Mutual Fund - Money Manager Fund - Dividend 123.14 -
Reliance Quarterly Interval Fund - Series I - Dividend 164.01 -
Religare FMP - Series - II Plan B (15 Months) - Growth 120.00 120.00
Schedule 7 : Investments
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
72
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Religare FMP - Series - II Plan A ( 13 Months ) - Growth 60.00 60.00
Religare FMP - Series - II Plan C ( 15 Months ) - Growth 100.00 100.00
Religare FMP - Series - II Plan F ( 13 Months ) - Growth 100.00 100.00
Religare FMP - Series - III Plan A ( 12 Months ) - Growth 50.00 -
Religare FMP - Series - III Plan C ( 370 Days ) - Dividend 50.00 -
SBI Debt Fund Series - 370 Days - Institutional Growth 90.00 90.00
SBI Debt Fund Series - 13 Months - 10 - Institutional Growth - 150.00
SBI Short Horizon Debt Fund - Ultra Short Term Institutional Plan 126.69 83.72
SBI Premier Liquid Fund - Super Institutional - Daily Dividend 74.14 -
Tata Fixed Maturity Plan Series 26 - Plan - A - Growth 20.00 20.00
Tata Floater Fund - Growth Option 554.89 8.32
UTI - Short Term Income Fund - Institutional Income Option - Dividend Payout - 200.00
UTI - Fixed Income Interval Fund - Series II - QIP - V Institutional Dividend Payout - 150.00
UTI - Fixed Maturity Plan - Yearly Series (YFMP 11/09) - Growth - 50.00
UTI - Fixed Income Interval Fund - Monthly Interval Plan I - Dividend 75.00 -
UTI - Fixed Income Interval Fund - Monthly Interval Plan II - Dividend 74.99 -
UTI - Floating Rate Fund - Short Term Plan - Institutional - Growth 437.64 -
UTI - Treasury Advantage Fund - Institutional Plan - Growth 25.05 -
7,750.54 3,723.45
Long-term Investments (at cost less provision for dimunition):
Non-trade, unquoted shares:
In Subsidiary companies:
Sesa Industries Limited (Cancelled on amalgamation)
17,650,284 equity shares of `10 each fully paid-up. (Refer Note No. 2 of Schedule 19) - 41.92
Sesa Resources Limited (Formerly V. S. Dempo & Co. Private Limited)
1,250,000 equity shares of `10 each fully paid-up 1,713.24 1,713.24
In Co-operative societies:
Sesa Ghor Premises Holders' Maintenance Society Limited
400 (200 acquired on amalgamation with Sesa Industries Limited) equity shares
of `10 each fully paid -up [`4,000 (Previous year `2,000)]
- -
Sesa Goa Sirsaim Employees' Consumers Co-operative Society Limited
200 equity shares of `10 each fully paid-up [`2,000 (Previous year `2,000)]
- -
Sesa Goa Sanquelim Employees' Consumers Co-operative Society Limited
230 euity shares of `10 each fully paid-up [`2,300 (Previous year `2,300)]
- -
Sesa Goa Sonshi Employees' Consumers Co-operative Society Limited
468 equity shares of `10 each fully paid-up [`4,680 (Previous year `4,680)]
- -
Sesa Goa Codli Employees' Consumers Co-operative Society Limited
450 equity shares of `10 each fully paid-up [`4,500 (Previous year `4,500)]
- -
Sesa Goa Shipyard Employees' Consumers Co-operative Society Limited
500 equity shares of `10 each fully paid-up [`5,000 (Previous year `5,000)]
- -
The Mapusa Urban Cooperative Bank Limited
40 equity shares of `25 each fully paid-up [`1,000 (Previous year `1,000)]
- -
In other companies:
Goa Shipyard Limited
62,707 equity shares of `10 each fully paid-up (including 34,837 bonus shares)
0.03 0.03
Total Cost 9,463.81 5,478.64
Provision for dimunition in value of investments [`5,000 (Previous year `5,000)] - -
Total 9,463.81 5,478.64
Notes:
1. Aggregate amount of mutual fund investments at net asset value 7,831.44 3,782.28
2. Aggregate amount of unquoted investments at cost [including mutual funds
`7,750.54 crore (Previous year `3,723.45 crore)]
9,463.81 5,478.64
3. Investments on lien towards purchase of shares in Cairn India Limited (Refer
Note No. 3 of Schedule 19).
1,674.67 -
Schedule 7 : Investments (continued)
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
73
Schedule 8 : Inventories
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Stocks (at lower of cost and net realisable value) of:
Raw material [including goods in transit `116.32 crore
(Previous year `Nil)]
294.84 98.03
Finished goods
Iron ore 226.52 263.65
Metallurgical coke 35.14 10.66
Pig Iron 38.58 -
300.24 274.31
Work-in-progress 0.32 1.74
Consumables stores and spares [including goods in transit
`0.13 crore (Previous year `0.11 crore)]
46.09 34.58
Total 641.49 408.66
Schedule 9 : Sundry Debtors
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Debts outstanding for a period exceeding six months
Unsecured and considered good 29.63 36.77
Considered doubtful 0.09 -
29.72 36.77
Other debts
Unsecured and considered good 477.25 241.69
506.97 278.46
Less: Provision for doubtful debts 0.09 -
Total 506.88 278.46
Note:
Dues from subsidiaries
- Sesa Industries Limited (amalgamated with the Company) - 39.14
- Sesa Resources Limited 9.68 -
- Sesa Mining Corporation Limited - 0.05
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
74
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Schedule 10 : Cash and Bank Balances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Cash on hand [including cheques and demand drafts on hand `3.27
crore (Previous year `2.32 crore)]
3.38 2.42
Demand drafts in transit 4.02 0.77
Balances with scheduled banks:
On current account (Refer Note No. 2) 170.84 19.74
On deposit account 698.00 2,350.00
On EEFC account 0.01 0.08
On unpaid dividend account 14.99 4.32
883.84 2,374.14
Balances with other banks:
On current account (Refer Note No. 1) 0.08 0.08
Total 891.32 2,377.41
Notes:
1.
Name of other banks Balance
(` in crore)
Max. balance
at any time
during the
year
` in crore
Balance
(` in crore)
Max. balance
at any time
during the
year
` in crore
Bank of Shanghai, China 0.08 0.18 0.08 0.15
2. Balance in current account includes `140.16 crore, held in Escrow account towards purchase of shares in Cairn India Limited.
(Refer Note No. 3 of Schedule 19)
Schedule 11 : Loans and Advances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Unsecured considered good unless otherwise stated
Advances recoverable in cash or in kind or for value to be received
Considered good 220.77 93.73
Considered doubtful 0.62 0.50
Less: Provision for doubtful advances 0.62 0.50
220.77 93.73
Intercorporate deposits (Refer Note No. 26 of Schedule 19) 1,026.71 1,000.00
Balances with port trusts, customs, excise authorities etc. 2.01 2.36
Loans and advances to staf (Refer Note No. 11 of Schedule 19) 1.02 0.66
Prepaid expenses 8.28 5.17
Deposits 12.72 9.27
Total 1,271.51 1,111.19
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
75
Schedule 12 : Current Liabilities
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sundry creditors
Due to micro and small enterprises (Refer Note No. 12 of Schedule 19) 0.85 0.40
Due to others * 1,047.30 595.53
1,048.15 595.93
Subsidiary companies 4.06 13.78
Advances from customers 22.56 17.74
Unclaimed dividend # 14.99 4.32
Unclaimed matured deposits # 0.05 0.02
Unclaimed interest on deposits # 0.01 0.01
Other liabilities 57.40 27.72
Interest accrued but not due on loans 25.39 45.53
Total 1,172.61 705.05
* Includes `1.16 crore due to the directors (Previous year `0.84 crore)
# There are no amounts due and outstanding as at balance sheet date to be credited to Investor Education and Protection Fund.
Schedule 13 : Provisions
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
For income tax [net of advance tax `3,061.35 crore (Previous year
`1,927.25 crore)]
31.08 43.43
For proposed dividend 304.18 270.06
For dividend tax 49.35 45.90
For gratuity 5.19 3.13
For compensated absence 17.51 12.51
Total 407.31 375.03
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
76
Schedules Annexed to and Forming Part of the Pro?t and Loss
Account
Schedule 14 : Services and Other Proceeds
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sale of material 9.29 3.19
Sale of gases 3.11 2.30
Sale of slag 3.77 -
Technology licence fee - 3.86
Sale of carbon credits 4.44 -
Barge hire charges [Tax deducted at source `0.18 crore (Previous year
`0.20 crore)]
7.32 4.11
Proceeds from various services [Tax deducted at source `0.44 crore
(Previous year `0.63 crore)]
13.04 23.76
Repairs of vessels by shipyard [Tax deducted at source `0.05 crore
(Previous year `0.002 crore)]
4.66 0.04
Diference in rate of exchange (net) 17.38 20.74
Total 63.01 58.00
Schedule 15 : Miscellaneous Income
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on Intercorporate deposits [Tax deducted at source `9.01 crore
(Previous year `14.18 crore)]
91.03 95.21
Interest on Fixed deposits [Tax deducted at source `10.81 crore
(Previous year `0.67 crore)]
81.89 45.93
Interest others 0.09 1.24
173.01 142.38
Dividends
On current investments (Non trade) 259.86 66.66
On long term investments (Non trade) 0.06 0.04
259.92 66.70
Pro?t on sale of current investments (net) 61.86 75.21
Pro?t on sale of assets (net) 0.65 0.12
Diference in rate of exchange on Foreign Currency Convertible Bonds - 121.91
Other receipts [Tax deducted at source `0.14 crore (Previous year `0.25
crore)]
2.38 3.13
Total 497.82 409.45
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
77
Schedule 16 : Production and Operational Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Increase/decrease in stock of ore, ?nished goods and work-in-progress
Opening stock
Iron ore 263.65 131.78
Metallurgical coke 10.66 11.67
Work-in-progress 1.74 1.63
276.05 145.08
Pig iron (acquired on amalgamation) 12.38 -
288.43 145.08
Less: Closing stock
Iron ore 226.52 263.65
Metallurgical coke 35.14 10.66
Pig Iron 38.58 -
Work-in-progress 0.32 1.74
300.56 276.05
(12.13) (130.97)
Excise duty on stock of ?nished goods 3.75 -
Consumption of raw materials 397.35 306.53
Consumption of stores [includes cost of supplies to contractors of the
value of `65.81 crore (Previous year `59.54 crore)]
244.58 208.71
Purchase of ore 536.39 309.56
Personnel (Refer Note No. 15 of Schedule 19)
Salaries, wages, bonus and allowances 87.14 70.61
Contributions to provident and other funds 4.79 3.12
Contributions to gratuity and annuity funds 6.05 3.82
Staf welfare expenses 11.20 6.00
109.18 83.55
Repairs and maintenance (Refer Note No. 9 of Schedule 19)
Plant and machinery 14.41 5.94
Buildings 7.48 1.22
Others 1.26 1.56
23.15 8.72
Contractors for hired trucks and other services 615.56 590.04
Hire charges of barges 61.52 65.60
Wharfage, tonnage, handling and shipping expenses 123.41 141.29
Railway freight 274.38 281.01
Rent 3.99 3.02
Export duty 516.05 109.75
Royalty and cess 249.61 112.80
Rates and taxes 3.51 8.27
Insurance 12.45 7.22
Electricity and water charges 14.97 11.79
Demurrage over despatch 144.71 90.62
Commission and service charges on sales 2.12 5.43
Analysis of ore 3.86 5.84
Maintenance of ofces 0.88 0.46
Printing and stationery 0.72 0.58
Travelling and representation expenses 5.79 2.98
Maintenance of vehicles 0.43 0.36
General expenses 40.29 38.18
Provision for mine closure expenses (Refer Note No. 10 of Schedule 19) 0.37 0.10
3,376.89 2,261.44
Less: Extraction and processing costs recovered 27.34 34.69
Total 3,349.55 2,226.75
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
78
Schedules Annexed to and Forming Part of the Pro?t and Loss
Account (continued)
Schedule 17 : Administration Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Personnel (Refer Note No. 15 of Schedule 19)
Salaries, wages, bonus, allowances and commission 34.44 31.63
Contributions to provident and other funds 0.80 0.60
Contributions to gratuity and annuity funds 1.89 1.23
Staf welfare expenses 2.77 1.44
39.90 34.90
Maintenance of ofces and equipment 1.90 1.06
Printing and stationery 0.98 0.76
Postage, telephone, cables and telex charges 1.18 1.29
Fees to Auditors
Audit fees 0.28 0.20
Other certi?cation fees 0.35 0.31
Reimbursement of expenses 0.04 0.03
0.67 0.54
Sitting fees and commission to non wholetime directors 0.49 0.31
Travelling expenses [includes travelling expenses of directors `0.67
crore (Previous year `0.59 crore)]
4.01 4.38
Professional and legal charges 35.17 18.03
Maintenance of vehicles 2.14 1.88
Donations and contributions 5.63 5.99
Provision for doubtful debts 0.07 -
Provision for doubtful advances 0.12 0.50
Claim under litigation 1.67 9.03
Miscellaneous expenses 7.44 4.80
101.37 83.47
Recovery from subsidiary company - 9.60
Total 101.37 73.87
Schedule 18 : Interest and Other Finance Charges
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on ?xed period loans:
On Foreign Currency Convertible Bonds 27.86 45.36
Interest others 7.40 3.66
Diference in rate of exchange on Foreign Currency Convertible Bonds 48.78 -
Discounting charges 1.67 1.75
Other charges 2.72 2.92
Total 88.43 53.69
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
79
Schedule 19:
1. Signi?cant Accounting Policies
i) Basis of accounting
The ?nancial statements have been prepared on accrual basis under the historical cost convention to
comply in all material respects with the Generally Accepted Accounting Principles in India and the relevant
provisions of the Companies Act, 1956.
ii) Use of estimates
The presentation of ?nancial statements requires estimates and assumptions to be made that afect the
reported amount of assets and liabilities (including contingent liabilities) on the date of the ?nancial
statements and the reported amount of revenues and expenses during the reporting period. Diference
between the actual results and the estimates are recognised in the period in which the results are known /
materialised.
iii) Revenue recognition
Revenue is recognised when signi?cant risks and rewards of ownership of the goods sold are transferred to
the customer and the commodity has been delivered to the shipping agent/customer.
Revenue represents the invoice value of goods and services provided to third parties net of discounts,
sales taxes/value added taxes, and is after considering adjustments on ?nal invoices (arising on analysis
variances) received upto the year end.
Revenue in respect of contracts for services is recognised on completion of services.
Dividend income is recognised when the right to receive dividend is established.
Interest income is recognised on a time proportion basis by reference to the principal outstanding and at
the interest rate applicable.
iv) Employee bene?ts
a. Provident fund: The Company’s contribution to the recognised provident fund, pension fund and
employees' deposit linked insurance scheme paid/payable during the year is debited to the Pro?t and
Loss Account.
b. Gratuity fund: The Company accounts for the net actuarial liability of its obligations for gratuity
bene?ts based on an independent actuarial valuation determined on the basis of the projected unit
credit method carried as at the year end. Based on the above determined obligation, the Company
makes contribution to funds managed by insurance companies. Actuarial gains and losses are
immediately recognised in the Pro?t and Loss Account.
c. Annuity fund: The Company has a de?ned contribution plan for certain categories of employees,
wherein it annually contributes a predetermined proportion of employee’s salary to an insurance
company which administers the fund. The Company recognises such contributions as an expense over
the period of services rendered.
d. Compensated absence: The liability in respect of compensated absence for employees is determined
on the basis of an independent actuarial valuation carried out at the end of the year and diferential
liability recognised as expense in the Pro?t and Loss Account.
v) Investments
Long-term investments are stated at cost less provision for diminution. Provision for diminution is made to
recognise decline (other than temporary) in the value of investments, if any. Current investments are stated
at cost or market value, whichever is lower.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
80
vi) Inventories
Raw material, consumable stores and spares are held for use in production and are valued at cost
determined on the basis of weighted average method.
Work-in-progress, stock of iron ore, metallurgical coke and pig iron are valued at lower of cost or net
realisable value. Cost includes raw material and proportion of ?xed and variable overheads.
vii) Foreign currency transactions
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction.
Year end balance of monetary assets and liabilities are translated at the year end rates. Exchange diference
arising on restatement or settlement is charged to the Pro?t and Loss Account.
viii) Foreign currency forward contracts
The Company enters into forward derivative ?nancial instruments to hedge its exposure to foreign currency.
The Company does not hold derivative ?nancial instruments for speculative purposes. Derivative ?nancial
instruments are initially recorded at their fair value on the date of the derivative transaction and are re-
measured at their fair value at subsequent balance sheet dates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
the Pro?t and Loss Account.
Changes in the fair value of derivatives that are designated and qualify as cash ?ow hedges are recorded in
Reserves and Surplus. Amount deferred to Reserves and Surplus are recycled in the Pro?t and Loss Account
in the period when the hedged item is recognised in the Pro?t and Loss Account.
Derivative ?nancial instruments that do not qualify for hedge accounting are marked to market at the
balance sheet date and gains or losses are recognised in the Pro?t and Loss Account immediately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised,
or no longer quali?es for hedge accounting. Any cumulative gain or loss on the hedging instrument
recognised in Reserves and Surplus is kept in reserves and surplus until the forecast transaction occurs. If a
hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in Reserves
and Surplus is transferred to the Pro?t and Loss Account for the year.
ix) Fixed assets
Fixed assets except for the leasehold mine at Karnataka, are stated at their original cost along with
taxes, duties (net of Modvat/Cenvat availed, if any), freight and interest on borrowings up to the date of
commissioning for operation, attributable to acquisition/construction of the concerned assets.
The iron ore reserves of the leased mine located in Karnataka were valued and shown as ?xed assets by
erstwhile A. Narrain Mines Ltd. (ANML). The Company continues to show the value of the said mining lease
as ?xed assets after merger of said ANML. The Company’s other mining leases having ore reserves, however,
are not valued. Amounts paid to Government authorities towards renewal of forest clearances in respect of
owned mining leases are capitalized as a part of mining leases.
x) Borrowing costs
Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of time are
capitalised. All other borrowing costs including exchange diferences on foreign currency loans are charged to
revenue.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
81
xi) Depreciation
Depreciation, except on the leasehold mine at Karnataka, and in respect of vehicles, furniture, computers
and railway wagons is provided for on Straight Line Method (SLM) at the rates speci?ed in Schedule XIV of
the Companies Act, 1956. In respect of vehicles, furniture and computers, depreciation has been charged
on SLM method at annual rate of 20%, 10% and 30% respectively to bring it in line with the useful life of the
assets. The cost of railway wagons procured under Wagon Investment Scheme (WIS) is being depreciated at
the rate of 10% per annum on a Straight Line basis. The value of mining leases capitalised are amortised in
proportion to actual quantity of ore extracted therefrom. Amounts paid towards renewal of forest clearances
in respect of owned mining lease are amortised over the operating period of the lease. Fixed assets costing
less than `5,000 are wholly depreciated in the year of acquisition. Expenses on implementation of Enterprise
Resource Planning – SAP are amortized over thirty six months.
Depreciation has been charged from the month of the date of purchase in the case of acquisitions made
during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale.
xii) Impairment of assets
The carrying amounts of tangible ?xed assets are reviewed for impairment, if events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If there are indicators of
impairment, an assessment is made to determine whether the asset’s carrying value exceeds its recoverable
amount. Whenever the carrying value of an asset exceeds recoverable amount, impairment is charged to
the Pro?t and Loss Account.
xiii) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as a result of a past event and it is
probable that an out?ow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions (excluding retirement bene?ts) are not discounted to their present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. A
contingent liability is disclosed unless the possibility of an out?ow of resources embodying economic
bene?ts is remote. A contingent asset is neither recognised nor disclosed.
xiv) Segment reporting
The Company is in the business of mining and sale of iron ore, manufacture and sale of metallurgical coke
and pig iron. All of the Company’s establishments are located in one country i.e. India. The revenues from
other than sale of ore, metallurgical coke and pig iron are either incidental to the above three businesses or
of non-recurring nature. Therefore the Company operates in three business segments.
Segment revenue, segment expenses, segment assets and segment liabilities have been identi?ed to
segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses,
assets and liabilities which relate to the Company as a whole and are not allocable to segments on
reasonable basis, have been included under “Unallocated revenue/ expenses/ assets/ liabilities”.
xv) Taxes on income
The Company’s income taxes include taxes on the Company’s taxable pro?ts, adjustment attributable to
earlier periods and changes in deferred taxes. Valuation of all tax liabilities/receivables are carried at current
amounts and in accordance with enacted tax regulations, rates or in the case of deferred taxes those that
have been substantially enacted.
Deferred tax is calculated to correspond to the tax efect arising when ?nal tax is determined. Deferred
tax corresponds to the net efect of tax on all timing diferences which occur as a result of items being
allowed for income tax purposes during a period diferent from when they were recognised in the ?nancial
statements.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
82
xvi) Accounting for government grants/refunds
Government grants/subsidies and refunds due from Government Authorities are accounted when there is
reasonable certainty of their realisation.
2. Amalgamation of Sesa Industries Limited with the Company:
a) The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme of
Amalgamation (the “Scheme”) of Sesa Industries Limited (engaged in the manufacture and sale of Pig Iron
and hereinafter referred to as SIL) (erstwhile subsidiary of Sesa Goa Limited) with the Company efective
from the appointed date i.e. 1st April, 2005, by setting aside the Order dated 21st February, 2009, passed
by the Division Bench of the High Court of Bombay at Goa not sanctioning the Scheme passed by the
Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated 18th December, 2008.
The Scheme has accordingly been given efect to in these ?nancial statements. The efective date of
amalgamation is 14th February, 2011.
b) In accordance with the Scheme approved by the Court:
i) SIL stands dissolved without winding up with efect from 1st April, 2005.
ii) All assets, debts and liabilities of SIL have been deemed transferred to and vested in the Company with
efect from 1st April, 2005.
iii) 9,398,864 equity shares of `1 each have been issued in the ratio of 20 fully paid equity shares of `1 each
(after adjustment for stock split and bonus shares) in the Company for 5 fully paid equity shares of `10
each held by the shareholders of SIL except that 17,650,284 equity shares held by the Company in SIL
stand cancelled.
iv) Dividend on the aforesaid 9,398,864 equity shares of `1 each amounting to `12.88 crore has been paid
to the shareholders of erstwhile SIL for the ?nancial years from 31st March, 2006 to 31st March, 2010 at
the rates declared in the relevant years. The aforesaid amount of `12.88 crore includes dividend tax of
`1.83 crore.
c) The amalgamation has been accounted using the “Pooling of Interests” method whereby:
i) The assets, liabilities and reserves (excluding share premium) of SIL have been recorded at their book
values. The excess of net assets over the face value of shares allotted after eliminating the carrying
value of the investment held in erstwhile SIL has been credited to Amalgamation Reserve. Accordingly,
the balance of share premium in erstwhile SIL also stands eliminated.
ii) The balance in the Pro?t and Loss account of SIL as of 1st April, 2005 `6.60 crore and the incremental
balance of `276.88 crore until 31st March, 2010 being the pro?ts for the period from 1st April, 2005 to
31st March, 2010 has been included in the balance in Pro?t and Loss Account.
d) In view of the above amalgamation, the ?gures for the current year are not comparable with those of the
previous year.
3. The Company has proposed to acquire upto 20% of the equity share capital of Cairn India Ltd (“CIL”), subject
to requisite approvals. For the said acquisition, the Company is acting as a Person in Concert with its ultimate
holding company Vedanta Resources Plc ( “Vedanta”), and/or any of Vedanta’s subsidiaries for acquiring majority
of equity shares of CIL. The Company has received clearance from Securities and Exchange Board of India
(“SEBI”) to proceed with an open ofer of up to 20% of the shares of CIL. The Company has launched the Open
Ofer from 11th April, 2011 at a price of `355 per share of CIL which will close on 30th April, 2011.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
83
In April 2011, the Company acquired 200 million shares amounting to 10.4% stake in CIL from Petronas
International Corporation Ltd. (“Petronas”) at a price of `331 per share. The acquisition is in addition to the Open
Ofer launched by the Company on 11th April, 2011.
4. The Company has acquired assets of the upcoming Steel Plant Unit of Bellary Steel and Alloys Ltd. (“BSAL”) for
an all cash consideration of `220.00 crore. BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project
at Bellary. The properties of the under construction plant acquired are freehold land of ~700 acres, building and
structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an “As is
where is” basis to the Company as of 22nd March, 2011.
The above acquisition has been challenged by JSW Ltd. in the Supreme Court. The court has asked both the
parties to maintain status quo till the matter is decided.
5. During the previous year 2009-10, the Company had issued 33,274,000 equity shares of `1 each at a premium of
`160.46 per share for cash to Twin Star Holdings Limited on a preferential basis under the applicable provisions
of The Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 (the
“Guidelines”). A part of the proceeds aggregating `101.47 crore (Previous year `101.47 crore) has been utilised
for the Company’s capital projects. The unutilised portion of the issue proceeds amounting to `435.77 crore
(Previous year `435.77 crore) has been invested in Mutual Funds.
6. During the previous year 2009-10 the Company issued 5000 Foreign Currency Convertible Bonds (“FCCBs”)
aggregating US$ 500 million at a coupon rate of 5% (net to bondholder). The bondholders have an option
to convert these FCCBs into shares, at a conversion price of `346.88 per share at a ?xed rate of exchange on
conversion of `48.00 per US$ 1.00 at any time on or after 9th December, 2009. The conversion price is subject
to adjustment in certain circumstances. The FCCBs may be redeemed in whole, but not in part, on or after
30th October, 2012, subject to certain conditions. Unless previously converted, redeemed or repurchased and
cancelled, the FCCBs fall due for redemption on 31st October, 2014 at par. As at 31st March, 2011, 2,832 FCCB’s
have been converted into 39,188,159 equity shares.
A part of the proceeds aggregating `775.28 crore (Previous year `21.70 crore) has been utilised for the Company’s
capital projects, the construction of which is in progress. The unutilised portion of the FCCB proceeds
aggregating `1,607.22 crore (Previous year `2,360.80 crore) have been placed in term deposits/ mutual funds/
current accounts with a scheduled bank, pending utilisation. Interest aggregating `4.72 crore (Previous year `0.17
crore) in respect of amounts utilised for the construction of capital projects has been capitalised and included as
part of Capital Work in Progress. The balance interest amounting to `27.86 crore (Previous year `45.36 crore) has
been charged to the Pro?t and Loss Account.
7. Contingent Liabilities:
i) Guarantees (excluding the liability for which provisions have been made) amounting to `7.83 crore (Previous
year `9.04 crore) given by the Bankers in favour of various parties - none invoked.
ii) Letters of Credit opened by the banks in favour of suppliers amounting to `363.13 crore (Previous year
`174.52 crore).
iii) Bonds executed in favour of customs authorities in respect of export of iron ore `1,627.71 crore (Previous
year `1,003.23 crore).
iv) Claims by custom authorities (under dispute) relating to diferential export duty on export shipments `49.13
crore (Previous year `49.13 crore). The said amount is also included under bonds executed detailed in point
7 (iii) above.
v) Bills discounted under letters of credit with banks `353.90 crore. (Previous year `471.08 crore).
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
84
vi) Provisions have also not been made in the accounts in respect of the following liabilities not
acknowledged as debts for the reasons stated against them:
a) Dead rent on deemed mining leases for the period from 20.12.1962 to 23.5.1987 amounting to `0.10
crore (Previous year `0.10 crore) and royalty for the period from 20.12.1961 to 30.9.1963 amounting to
`0.12 crore (Previous year `0.12 crore) sought to be levied by the Government pursuant to the Goa,
Daman & Diu Mining Concessions (Abolition & Declaration as Mining Leases) Act, 1987, challenged by
Special Leave Petition before Supreme Court of India.
b) Claims related to commercial and employment contracts `7.40 crore (Previous year `7.06 crore).
c) A civil suit claiming a damage of a minimum amount of `37.50 crore (Previous year `37.50 crore)
towards infringement of patent has been ?led against the Company.
d) Disputed sales tax demand of `0.45 crore (Previous year `0.45 crore) including interest and penalty of
`0.09 crore (Previous year `0.09 crore) appealed before Appellate Authority.
e) Disputed income tax demand of `19.51 crore (Previous year `9.24 crore) including interest and penalty
of `1.71 crore (Previous year `0.56 crore), appealed before Appellate Authority.
f) Disputed demand from customs authorities towards ?ne and penalty of `0.35 crore (Previous year `0.35
crore) for improper documentation of equipment loaded/unloaded to/from the company’s vessel M.V.
Orissa and its improper use.
g) Disputed demand from customs authorities of `1.60 crore including penalty of `0.80 crore, for
transferring imported metallurgical coke at concessional rate of duty under the provisions of Customs
(Import of Goods at Concessional rate of Duty for manufacture of Excisable Goods) Rules 1996 to the
erstwhile M/s. Sesa Kembla Coke Company Limited, appealed before the Appellate Authority.
h) Disputed forest development tax amounting to `173.96 crore (Previous year `164.12 crore) levied by
Government of Karnataka challenged by writ petition ?led in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending. A bank guarantee amounting to `35.00
crore (Previous year `74.00 crore) has been furnished against this demand. Also an amount of `32.97
crore (Previous year `5.00 crore) has been deposited against aforesaid demand and same is included
under Loans and Advances
i) A Notice issued by the Deputy Conservator of Forest, Chitradurga, demanding registration of a
supplemental forest lease agreement by payment of stamp duty calculated on the net present value
which has been challenged in the High Court of Karnataka. Estimated liability is `0.92 crore (Previous
year `0.92 crore). A bank guarantee amounting to `0.45 crore (Previous year `0.45 crore) has been
furnished against this demand.
j) Cess on transportation of Ore, coal and coke within Goa levied by Government of Goa under the Goa Rural
Development and Welfare Cess Act, 2000 (Goa Act, 29 of 2000) amounting to `73.16 crore (Previous year
`49.31 crore) challenged by way of writ petition in the High Court of Bombay, Panjim Bench.
k) A demand from Railway authorities towards stacking charges amounting to `4.09 crore appealed before
Kolkata High Court and stay obtained. A bank guarantee amounting to `4.09 crore has been furnished
against this demand.
The Company does not expect devolvement of any liability in respect of the above.
8. Estimated amount of contracts (net of advances) remaining to be executed on capital account `319.16 crore
(Previous year `402.21 crore).
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
85
9. Direct expenditure on repairs and maintenance included under major heads of expenses are as under:
(` in crore)
Particulars Plant and
Machinery
Buildings Others Total
a) Wages and salaries 14.42 0.64 0.21 15.27
(11.35) (0.22) (0.07) (11.64)
b) Consumption of stores 59.63 2.12 0.60 62.35
(51.46) (0.72) (0.33) (52.51)
c) Contractors for various services 15.53 0.45 0.51 16.49
(17.66) (1.32) (0.37) (19.35)
d) Others 1.73 1.88 0.17 3.78
(1.46) ( - ) (0.06) (1.52)
Total 91.31 5.09 1.49 97.89
(81.93) (2.26) (0.83) (85.02)
(Figures in bracket relate to previous year.)
10. In terms of the Mineral Concession Rules, 1960 and Mineral Conservation and Development Rules, (MCDR) 1988,
the Company has provided a “?nancial assurance” in the form of a bank guarantee to the Regional Controller of
Mines, towards its mine closure obligation. The Company has made a provision for expense to the extent of the
bank guarantees provided.
The present mine closure provision at 31st March, 2011 is as under:
(` in crore)
Nature of obligation 2010-11 2009-10
Mines Closure Provision
Opening carrying amount 1.60 1.50
Additional provisions made during the year 0.37 0.10
Amounts used during the year - -
Unused amounts reversed during the year - -
Closing carrying amount 1.97 1.60
11. Loans and Advances as shown in Schedule 11 include the following amounts due from:
(` in crore)
Particulars 2010-2011 2009-2010
As at
31st March,
2011
Maximum
amount during
the year
As at
31st March,
2010
Maximum
amount during
the year
Advance recoverable in cash or kind or for value to be received
Directors Travel/LTA Advance 0.01 0.02 - 0.05
12. The Micro and Small Enterprises to whom amount is outstanding as at the year end and requiring disclosure
under Schedule VI of the Companies Act, 1956, and the Micro Small and Medium Enterprises Development Act,
2006 are as follows:
(` in crore)
Sr. No. Particulars 2010-11 2009-10
1. The principal amount remaining unpaid to supplier as at the end of accounting year. 0.85 0.40
2. The interest due thereon remaining unpaid to supplier as at the end of accounting year. - -
The above information has been compiled in respect of parties to the extent to which they could be identi?ed as
micro or small enterprises on the basis of intimation received from the “suppliers” regarding their status under
the Micro Small and Medium Enterprises Development Act, 2006.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
86
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
B
i
r
l
a
S
u
n
l
i
f
e
-
C
a
s
h
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
6
6
,
8
0
4
,
9
5
4
6
6
.
8
2
6
6
,
8
0
4
,
9
5
4
6
6
.
8
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
-
F
l
o
a
t
i
n
g
r
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
3
1
8
,
0
2
0
,
1
7
0
3
1
8
.
0
2
3
1
8
,
0
2
0
,
1
7
1
3
1
8
.
0
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
-
F
l
o
a
t
i
n
g
r
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
w
e
e
k
l
y
d
i
v
i
d
e
n
d
-
-
-
-
7
5
9
,
0
0
7
,
9
8
7
7
5
9
.
2
7
7
5
9
,
0
0
7
,
9
8
7
7
5
9
.
2
7
-
-
B
i
r
l
a
S
u
n
l
i
f
e
F
l
o
a
t
i
n
g
R
a
t
e
F
u
n
d
-
L
o
n
g
t
e
r
m
(
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
)
-
G
r
o
w
t
h
9
9
,
9
7
9
,
0
0
4
1
0
0
.
0
0
-
-
-
-
9
9
,
9
7
9
,
0
0
4
1
0
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
T
e
r
m
O
p
p
o
r
t
u
n
i
t
y
f
u
n
d
-
d
i
v
i
d
e
n
d
p
a
y
o
u
t
o
p
t
i
o
n
-
-
-
-
1
,
3
7
9
,
9
9
8
,
6
9
8
1
,
3
8
1
.
5
5
8
7
0
,
8
1
9
,
4
5
4
8
7
1
.
6
5
5
0
9
,
1
7
9
,
2
4
4
5
0
9
.
9
0
B
i
r
l
a
S
u
n
l
i
f
e
C
a
s
h
P
l
u
s
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
,
2
3
3
,
7
5
5
,
6
1
5
2
,
4
1
2
.
9
7
2
,
2
0
7
,
8
4
7
,
9
9
7
2
,
3
8
4
.
9
8
2
5
,
9
0
7
,
6
1
8
2
7
.
9
9
B
i
r
l
a
S
u
n
l
i
f
e
F
i
x
e
d
t
e
r
m
P
l
a
n
-
S
e
r
i
e
s
C
D
(
3
7
0
D
a
y
s
)
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
B
i
r
l
a
S
u
n
l
i
f
e
I
n
t
e
r
v
a
l
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
-
-
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
I
n
t
e
r
v
a
l
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
I
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
f
u
n
d
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
a
v
i
n
g
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
G
r
o
w
t
h
3
,
2
4
9
,
7
0
8
5
.
6
8
-
-
-
-
3
,
2
4
9
,
7
0
8
5
.
6
8
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
a
v
i
n
g
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
3
0
3
,
7
8
4
,
4
8
4
1
,
3
0
4
.
6
7
1
,
3
0
3
,
7
8
4
,
4
8
4
1
,
3
0
4
.
6
7
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
t
e
r
m
F
M
P
-
S
e
r
i
e
s
3
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
5
0
,
0
2
1
,
0
3
5
1
5
0
.
0
2
1
5
0
,
0
2
1
,
0
3
5
1
5
0
.
0
2
-
-
B
i
r
l
a
S
u
n
l
i
f
e
S
h
o
r
t
t
e
r
m
F
M
P
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
B
i
r
l
a
S
u
n
l
i
f
e
U
l
t
r
a
S
h
o
r
t
t
e
r
m
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
1
,
5
7
0
,
7
6
7
,
7
4
1
1
,
5
7
1
.
6
3
1
,
5
7
0
,
7
6
7
,
7
4
1
1
,
5
7
1
.
6
3
-
(
0
.
0
0
)
B
i
r
l
a
S
u
n
l
i
f
e
U
l
t
r
a
S
h
o
r
t
t
e
r
m
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
G
r
o
w
t
h
-
-
-
-
2
9
0
,
9
4
2
,
2
7
0
3
4
0
.
0
9
-
-
2
9
0
,
9
4
2
,
2
7
0
3
4
0
.
0
9
C
a
n
a
r
a
R
o
b
e
c
o
I
n
t
e
r
v
a
l
S
e
r
i
e
s
2
-
Q
u
a
r
t
e
r
l
y
P
l
a
n
2
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
9
4
,
9
6
0
,
4
1
3
1
9
5
.
0
0
1
9
4
,
9
6
0
,
4
1
3
1
9
5
.
0
0
-
-
C
a
n
a
r
a
R
o
b
e
c
o
F
l
o
a
t
i
n
g
R
a
t
e
S
T
-
D
a
i
l
y
d
i
v
i
d
e
n
d
f
u
n
d
-
-
-
-
4
8
,
7
5
0
,
0
5
4
5
0
.
0
2
4
8
,
7
5
0
,
0
5
4
5
0
.
0
2
-
-
C
a
n
a
r
a
R
o
b
e
c
o
F
l
o
a
t
i
n
g
R
a
t
e
S
T
-
G
r
o
w
t
h
-
-
-
-
3
2
,
8
9
6
,
7
6
3
5
0
.
0
2
-
-
3
2
,
8
9
6
,
7
6
3
5
0
.
0
2
C
a
n
a
r
a
R
o
b
e
c
o
L
i
q
u
i
d
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
8
1
3
,
9
0
9
,
9
0
3
8
1
8
.
1
2
8
1
3
,
9
0
9
,
9
0
3
8
1
8
.
1
2
-
-
C
a
n
a
r
a
R
o
b
e
c
o
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
3
1
,
4
9
1
,
8
1
0
1
,
1
5
5
.
7
1
9
3
1
,
4
9
1
,
8
1
0
1
,
1
5
5
.
7
1
-
-
C
a
n
a
r
a
R
o
b
e
c
o
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
F
u
n
d
-
G
r
o
w
t
h
3
7
,
1
9
8
,
2
5
8
5
1
.
7
0
-
-
2
2
1
,
4
5
4
,
2
6
2
3
2
8
.
7
1
3
7
,
1
9
8
,
2
5
8
5
1
.
7
0
2
2
1
,
4
5
4
,
2
6
2
3
2
8
.
7
1
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
5
-
D
i
v
i
d
e
n
d
-
-
-
-
2
3
5
,
0
0
0
,
0
0
0
2
3
5
.
0
0
2
3
5
,
0
0
0
,
0
0
0
2
3
5
.
0
0
-
-
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
6
-
D
i
v
i
d
e
n
d
-
-
-
-
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
1
2
5
,
0
0
0
,
0
0
0
1
2
5
.
0
0
-
-
D
S
P
B
l
a
c
k
r
o
c
k
F
M
P
-
3
M
S
e
r
i
e
s
2
7
-
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
D
S
P
B
l
a
c
k
r
o
c
k
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
3
,
5
8
4
,
3
0
4
3
5
8
.
7
2
3
,
5
8
4
,
3
0
4
3
5
8
.
7
2
-
-
D
S
P
B
l
a
c
k
r
o
c
k
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
G
r
o
w
t
h
-
-
-
-
1
,
4
8
4
,
3
5
1
2
0
2
.
7
2
-
-
1
,
4
8
4
,
3
5
1
2
0
2
.
7
2
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
p
l
a
n
-
W
h
o
l
e
s
a
l
e
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
5
6
,
0
7
3
,
0
5
5
6
5
8
.
1
4
6
5
6
,
0
7
3
,
0
5
5
6
5
8
.
1
4
-
-
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
p
l
a
n
-
W
h
o
l
e
s
a
l
e
-
G
r
o
w
t
h
O
p
t
i
o
n
5
8
,
7
1
8
,
4
6
0
1
1
8
.
5
2
3
5
,
3
6
5
,
0
2
0
7
1
.
3
8
1
9
,
3
0
6
,
0
3
3
4
1
.
5
5
9
4
,
0
8
3
,
4
8
0
1
8
9
.
9
0
1
9
,
3
0
6
,
0
3
3
4
1
.
5
5
H
D
F
C
C
a
s
h
M
a
n
a
g
e
m
e
n
t
f
u
n
d
-
S
a
v
i
n
g
s
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
1
8
,
6
2
4
,
9
5
2
7
6
4
.
3
6
7
1
8
,
6
2
4
,
9
5
2
7
6
4
.
3
6
-
-
H
D
F
C
F
l
o
a
t
i
n
g
r
a
t
e
i
n
c
o
m
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
w
h
o
l
e
s
a
l
e
O
p
t
i
o
n
-
D
a
i
l
y
d
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
-
-
-
-
7
6
0
,
1
8
2
,
8
2
5
7
6
6
.
3
3
7
6
0
,
1
8
2
,
8
2
5
7
6
6
.
3
3
-
-
H
D
F
C
F
l
o
a
t
i
n
g
r
a
t
e
i
n
c
o
m
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
w
h
o
l
e
s
a
l
e
O
p
t
i
o
n
-
G
r
o
w
t
h
-
-
-
-
7
1
,
9
2
1
,
5
7
4
1
2
0
.
3
3
-
-
7
1
,
9
2
1
,
5
7
4
1
2
0
.
3
3
H
D
F
C
F
M
P
3
5
D
A
U
G
2
0
1
0
(
2
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
1
3
.
D
e
t
a
i
l
s
o
f
m
o
v
e
m
e
n
t
i
n
i
n
v
e
s
t
m
e
n
t
s
p
u
r
c
h
a
s
e
d
/
s
o
l
d
d
u
r
i
n
g
t
h
e
y
e
a
r
N
o
t
e
s
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
A
c
c
o
u
n
t
s
F
o
r
t
h
e
Y
e
a
r
E
n
d
e
d
3
1
s
t
M
a
r
c
h
,
2
0
1
1
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
1
9
:
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
87
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
H
D
F
C
F
M
P
3
5
D
A
U
G
2
0
1
0
(
3
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
H
D
F
C
F
M
P
3
5
D
S
E
P
2
0
1
0
(
1
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
H
D
F
C
F
M
P
3
7
0
D
J
u
n
e
2
0
1
0
(
1
)
-
G
r
o
w
t
h
-
-
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
H
D
F
C
F
M
P
3
7
0
D
a
y
s
2
0
1
0
(
2
)
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
3
5
,
0
0
0
,
0
0
0
3
5
.
0
0
-
-
3
5
,
0
0
0
,
0
0
0
3
5
.
0
0
H
D
F
C
F
M
P
9
0
D
J
u
n
e
2
0
1
0
-
D
i
v
i
d
e
n
d
-
S
e
r
i
e
s
X
I
I
I
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
-
-
H
D
F
C
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
P
l
a
n
C
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
6
5
,
0
0
0
,
0
0
0
6
5
.
0
0
-
-
-
-
6
5
,
0
0
0
,
0
0
0
6
5
.
0
0
-
-
H
D
F
C
S
h
o
r
t
T
e
r
m
O
p
p
o
r
t
u
n
i
t
i
e
s
F
u
n
d
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
l
o
a
t
i
n
g
r
a
t
e
-
P
l
a
n
D
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
2
,
2
0
6
,
3
2
8
2
2
2
.
1
1
2
2
,
2
0
6
,
3
2
8
2
2
2
.
1
1
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
U
l
t
r
a
S
h
o
r
t
t
e
r
m
P
l
a
n
S
u
p
e
r
P
r
e
m
i
u
m
-
G
r
o
w
t
h
7
6
,
4
7
9
,
2
7
7
7
9
.
0
1
1
0
1
,
4
7
1
,
8
1
0
1
0
4
.
8
3
-
-
1
7
7
,
9
5
1
,
0
8
7
1
8
3
.
8
4
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
U
l
t
r
a
S
h
o
r
t
t
e
r
m
P
l
a
n
S
u
p
e
r
P
r
e
m
i
u
m
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
8
8
3
,
3
5
1
,
6
8
4
8
8
5
.
2
1
8
8
3
,
3
5
1
,
6
8
4
8
8
5
.
2
1
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
F
l
e
x
i
b
l
e
I
n
c
o
m
e
P
l
a
n
P
r
e
m
i
u
m
-
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
7
5
,
2
2
8
,
4
8
5
7
9
5
.
4
3
6
1
,
0
4
0
,
5
7
6
6
4
5
.
4
1
1
4
,
1
8
7
,
9
0
9
1
5
0
.
0
2
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
-
F
l
e
x
i
b
l
e
I
n
c
o
m
e
P
l
a
n
P
r
e
m
i
u
m
-
G
r
o
w
t
h
-
-
-
-
3
,
5
3
1
,
5
5
7
6
4
.
5
6
-
-
3
,
5
3
1
,
5
5
7
6
4
.
5
6
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
l
o
a
t
i
n
g
r
a
t
e
-
P
l
a
n
D
-
G
r
o
w
t
h
-
-
-
-
1
1
,
8
3
1
,
4
4
2
1
7
2
.
1
1
-
-
1
1
,
8
3
1
,
4
4
2
1
7
2
.
1
1
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
a
n
k
i
n
g
a
n
d
P
S
U
d
e
b
t
p
r
e
m
i
u
m
p
l
u
s
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
5
3
8
,
6
4
1
,
4
9
7
5
4
1
.
9
3
3
0
2
,
1
3
8
,
7
0
3
3
0
3
.
7
4
2
3
6
,
5
0
2
,
7
9
4
2
3
8
.
1
8
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
M
P
S
e
r
i
e
s
5
1
-
1
Y
e
a
r
P
l
a
n
B
-
G
r
o
w
t
h
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
F
M
P
S
e
r
i
e
s
5
2
-
1
Y
e
a
r
P
l
a
n
A
-
G
R
O
W
T
H
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
A
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
4
9
,
9
8
1
,
5
0
7
5
0
.
0
0
-
-
4
9
,
9
8
1
,
5
0
7
5
0
.
0
0
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
I
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
E
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
8
,
3
2
7
,
5
6
1
7
8
.
3
5
7
8
,
3
2
7
,
5
6
1
7
8
.
3
5
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
V
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
3
0
,
0
0
0
,
0
0
0
3
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
L
o
n
g
t
e
r
m
F
l
o
a
t
i
n
g
R
a
t
e
P
l
a
n
C
-
D
i
v
i
d
e
n
d
-
-
-
-
2
4
9
,
8
0
0
,
1
6
0
2
5
0
.
0
0
2
4
9
,
8
0
0
,
1
6
0
2
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
M
e
d
i
u
m
T
e
r
m
P
r
e
m
i
u
m
P
l
u
s
-
D
i
v
i
d
e
n
d
p
a
y
o
u
t
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
l
e
n
d
e
d
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
3
5
,
1
9
9
,
0
7
2
9
3
5
.
2
5
2
9
9
,
8
9
5
,
0
3
7
2
9
9
.
4
7
6
3
5
,
3
0
4
,
0
3
6
6
3
5
.
7
8
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
B
l
e
n
d
e
d
P
l
a
n
B
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
,
0
7
5
,
5
7
8
,
3
7
0
1
,
1
1
6
.
0
8
9
7
9
,
4
6
9
,
8
1
2
1
,
0
1
6
.
0
7
9
6
,
1
0
8
,
5
5
8
1
0
0
.
0
1
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
s
t
i
t
u
t
i
o
n
a
l
L
i
q
u
i
d
F
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
9
0
,
1
4
9
,
9
3
9
9
0
1
.
7
0
9
0
,
1
4
9
,
9
3
9
9
0
1
.
7
0
-
-
I
C
I
C
I
P
r
u
d
e
n
t
i
a
l
I
n
t
e
r
v
a
l
F
u
n
d
I
I
-
Q
u
a
r
t
e
r
l
y
i
n
t
e
r
v
a
l
p
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
d
i
v
i
d
e
n
d
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
I
D
F
C
C
a
s
h
F
u
n
d
-
L
i
q
u
i
d
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
0
0
,
4
3
8
,
4
6
2
5
0
0
.
5
6
5
0
0
,
4
3
8
,
4
6
2
5
0
0
.
5
6
-
-
I
D
F
C
F
i
x
e
d
M
a
t
u
r
i
t
y
p
l
a
n
M
o
n
t
h
l
y
S
e
r
i
e
s
-
3
0
-
D
i
v
i
d
e
n
d
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
I
D
F
C
F
M
P
-
H
a
l
f
Y
e
a
r
l
y
S
e
r
i
e
s
9
9
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
I
D
F
C
F
M
P
M
o
n
t
h
l
y
-
S
e
r
i
e
s
2
7
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
7
5
,
0
0
0
,
0
0
0
7
5
.
0
0
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
I
n
s
t
P
l
a
n
B
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
8
,
0
2
5
1
0
0
.
0
2
1
0
0
,
0
0
8
,
0
2
5
1
0
0
.
0
2
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
T
r
e
a
s
u
r
y
P
l
a
n
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
C
-
d
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
9
4
3
,
1
2
3
,
3
2
6
9
4
3
.
9
6
9
4
3
,
1
2
3
,
3
2
6
9
4
3
.
9
6
-
-
I
D
F
C
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
-
T
r
e
a
s
u
r
y
P
l
a
n
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
C
-
G
r
o
w
t
h
2
5
3
,
5
8
2
,
5
0
4
3
6
3
.
3
8
-
-
1
7
1
,
6
6
9
,
3
9
9
2
0
0
.
0
0
2
5
3
,
5
8
2
,
5
0
4
3
6
3
.
3
8
1
7
1
,
6
6
9
,
3
9
9
2
0
0
.
0
0
I
D
F
C
S
a
v
i
n
g
A
d
v
a
n
t
a
g
e
F
u
n
d
-
P
l
a
n
A
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
2
,
5
1
2
,
3
3
1
2
5
1
.
2
7
-
-
2
,
5
1
2
,
3
3
1
2
5
1
.
2
7
I
D
F
C
U
l
t
r
a
S
h
o
r
t
T
e
r
m
F
u
n
d
-
M
o
n
t
h
l
y
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
9
9
,
5
4
2
,
9
8
3
1
0
0
.
0
1
9
9
,
5
4
2
,
9
8
3
1
0
0
.
0
1
-
-
K
o
t
a
k
F
M
P
í
S
M
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
K
o
t
a
k
F
M
P
S
7
0
D
a
y
s
-
S
e
r
i
e
s
í
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
K
o
t
a
k
F
M
P
S
7
0
D
a
y
s
-
S
e
r
i
e
s
S
-
G
r
o
w
t
h
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
S
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
-
-
4
0
,
0
0
0
,
0
0
0
4
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
4
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
5
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
6
0
,
0
0
0
,
0
0
0
1
6
0
.
0
0
1
6
0
,
0
0
0
,
0
0
0
1
6
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
6
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
2
5
0
,
0
0
0
,
0
0
0
2
5
0
.
0
0
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
3
5
0
,
0
0
0
,
0
0
0
3
5
0
.
0
0
-
-
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
88
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
8
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
9
9
,
9
5
2
,
5
1
4
2
0
0
.
0
0
1
9
9
,
9
5
2
,
5
1
4
2
0
0
.
0
0
-
-
K
o
t
a
k
F
M
P
O
I
P
-
S
e
r
i
e
s
í
-
D
i
v
i
d
e
n
d
P
a
y
o
u
t
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
K
o
t
a
k
L
i
q
u
i
d
I
n
s
t
i
t
u
t
i
o
n
a
l
P
r
e
m
i
u
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
8
5
0
,
9
3
2
,
2
2
5
2
,
2
6
3
.
3
4
1
,
8
5
0
,
9
3
2
,
2
2
5
2
,
2
6
3
.
3
4
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
S
e
r
i
e
s
í
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
3
8
,
0
0
0
,
0
0
0
1
3
8
.
0
0
1
3
8
,
0
0
0
,
0
0
0
1
3
8
.
0
0
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
S
e
r
i
e
s
2
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
4
,
9
3
3
,
3
0
9
7
5
.
0
0
7
4
,
9
3
3
,
3
0
9
7
5
.
0
0
-
-
K
o
t
a
k
F
l
e
x
i
d
e
b
t
s
c
h
e
m
e
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
,
5
5
2
,
1
3
7
,
7
5
3
1
,
5
5
9
.
5
1
1
,
5
5
2
,
1
3
7
,
7
5
3
1
,
5
5
9
.
5
1
-
-
K
o
t
a
k
F
l
o
a
t
e
r
L
o
n
g
t
e
r
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
2
,
6
2
6
,
2
3
4
,
8
5
6
2
,
6
4
7
.
1
9
2
,
6
2
6
,
2
3
4
,
8
5
6
2
,
6
4
7
.
1
9
-
-
K
o
t
a
k
F
l
o
a
t
e
r
L
o
n
g
t
e
r
m
-
G
r
o
w
t
h
1
5
9
,
5
0
7
,
5
2
8
2
3
3
.
0
5
2
,
4
8
3
,
8
2
2
3
.
6
3
2
6
0
,
2
9
7
,
9
9
9
4
0
5
.
7
0
1
6
1
,
9
9
1
,
3
5
0
2
3
6
.
6
7
2
6
0
,
2
9
7
,
9
9
9
4
0
5
.
7
0
K
o
t
a
k
F
l
o
a
t
e
r
S
h
o
r
t
t
e
r
m
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
0
5
,
4
7
1
,
8
6
1
7
1
3
.
6
7
7
0
5
,
4
7
1
,
8
6
1
7
1
3
.
6
7
-
-
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
í
0
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
8
9
,
9
7
5
,
7
0
7
9
0
.
0
0
-
-
8
9
,
9
7
5
,
7
0
7
9
0
.
0
0
K
o
t
a
k
O
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
9
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
9
,
9
6
8
,
8
1
2
8
0
.
0
0
-
-
7
9
,
9
6
8
,
8
1
2
8
0
.
0
0
R
e
l
i
a
n
c
e
-
L
i
q
u
i
d
i
t
y
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
1
1
4
,
2
5
6
,
4
3
3
1
1
4
.
3
1
1
1
4
,
2
5
6
,
4
3
3
1
1
4
.
3
1
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
f
u
n
d
-
X
I
I
-
S
e
r
i
e
s
4
-
G
r
o
w
t
h
3
0
0
,
0
0
0
,
0
0
0
3
0
0
.
0
0
-
-
-
-
3
0
0
,
0
0
0
,
0
0
0
3
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
-
-
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
-
-
2
5
,
0
0
0
,
0
0
0
2
5
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
1
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
e
r
i
e
s
6
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
-
-
2
0
0
,
0
0
0
,
0
0
0
2
0
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
V
-
S
e
r
i
e
s
5
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
V
-
S
e
r
i
e
s
1
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
I
I
I
-
S
e
r
i
e
s
3
-
G
r
o
w
t
h
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
-
-
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
R
e
l
i
a
n
c
e
F
i
x
e
d
H
o
r
i
z
o
n
F
u
n
d
-
X
V
-
S
E
R
I
E
S
4
-
G
r
o
w
t
h
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
a
n
c
e
L
i
q
u
i
d
F
u
n
d
-
C
a
s
h
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
7
,
2
7
5
,
6
5
6
6
3
.
8
1
5
7
,
2
7
5
,
6
5
6
6
3
.
8
1
-
-
R
e
l
i
a
n
c
e
M
e
d
i
u
m
T
e
r
m
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
3
7
0
,
6
1
7
,
7
3
8
6
3
3
.
6
0
3
7
0
,
6
1
7
,
7
3
8
6
3
3
.
6
0
-
-
R
e
l
i
a
n
c
e
M
e
d
i
u
m
T
e
r
m
F
u
n
d
-
G
r
o
w
t
h
1
3
,
1
3
8
,
7
2
9
2
5
.
0
7
-
-
-
-
1
3
,
1
3
8
,
7
2
9
2
5
.
0
7
-
-
R
e
l
i
a
n
c
e
M
o
n
e
y
M
a
n
a
g
e
r
F
u
n
d
I
n
s
t
i
t
u
t
i
o
n
a
l
O
p
t
i
o
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
-
-
-
-
5
,
5
3
6
,
8
5
8
5
5
4
.
4
5
4
,
3
0
7
,
2
0
0
4
3
1
.
3
1
1
,
2
2
9
,
6
5
8
1
2
3
.
1
4
R
e
l
i
a
n
c
e
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
9
5
,
8
7
2
,
3
8
7
2
9
6
.
0
2
-
-
2
9
5
,
8
7
2
,
3
8
7
2
9
6
.
0
2
R
e
l
i
a
n
c
e
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
4
0
1
,
1
8
6
,
2
7
1
4
0
1
.
3
1
2
5
1
,
2
2
9
,
7
8
4
2
5
1
.
3
0
1
4
9
,
9
5
6
,
4
8
7
1
5
0
.
0
1
R
e
l
i
a
n
c
e
m
o
n
t
h
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
9
9
,
9
6
3
,
0
1
4
1
0
0
.
0
0
-
-
-
-
9
9
,
9
6
3
,
0
1
4
1
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
I
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
9
9
,
9
3
0
,
0
2
4
2
0
0
.
0
0
1
9
9
,
9
3
0
,
0
2
4
2
0
0
.
0
0
-
-
R
e
l
i
a
n
c
e
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
F
u
n
d
-
S
e
r
i
e
s
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
2
6
3
,
6
3
2
,
5
0
7
2
6
4
.
0
1
9
9
,
9
0
8
,
0
8
5
1
0
0
.
0
0
1
6
3
,
7
2
4
,
4
2
2
1
6
4
.
0
1
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
P
l
a
n
C
(
1
5
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
P
l
a
n
F
(
1
3
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
I
I
B
(
1
5
M
o
n
t
h
s
)
-
G
r
o
w
t
h
1
2
0
,
0
0
0
,
0
0
0
1
2
0
.
0
0
-
-
-
-
-
-
1
2
0
,
0
0
0
,
0
0
0
1
2
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
I
I
A
(
1
3
M
o
n
t
h
s
)
-
G
r
o
w
t
h
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
-
-
-
-
-
-
6
0
,
0
0
0
,
0
0
0
6
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
I
P
l
a
n
A
(
1
2
M
o
n
t
h
s
)
-
G
r
o
w
t
h
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
g
a
r
e
F
M
P
-
S
e
r
i
e
s
-
I
I
I
P
l
a
n
C
(
3
7
0
D
a
y
s
)
-
D
i
v
i
d
e
n
d
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
R
e
l
i
g
a
r
e
L
i
q
u
i
d
f
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
f
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
4
9
,
9
6
7
,
0
6
7
5
0
.
0
1
4
9
,
9
6
7
,
0
6
7
5
0
.
0
1
-
-
S
B
I
P
r
e
m
i
e
r
L
i
q
u
i
d
F
u
n
d
-
S
u
p
e
r
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
7
3
,
9
0
2
,
9
6
1
7
4
.
1
4
-
-
7
3
,
9
0
2
,
9
6
1
7
4
.
1
4
1
3
.
D
e
t
a
i
l
s
o
f
m
o
v
e
m
e
n
t
i
n
i
n
v
e
s
t
m
e
n
t
s
p
u
r
c
h
a
s
e
d
/
s
o
l
d
d
u
r
i
n
g
t
h
e
y
e
a
r
(
c
o
n
t
i
n
u
e
d
)
N
o
t
e
s
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
A
c
c
o
u
n
t
s
F
o
r
t
h
e
Y
e
a
r
E
n
d
e
d
3
1
s
t
M
a
r
c
h
,
2
0
1
1
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
1
9
:
(
c
o
n
t
i
n
u
e
d
)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
89
N
a
m
e
o
f
t
h
e
f
u
n
d
B
a
l
a
n
c
e
a
s
o
n
1
s
t
A
p
r
i
l
,
2
0
1
0
A
c
q
u
i
r
e
d
o
n
a
m
a
l
g
a
m
a
t
i
o
n
P
u
r
c
h
a
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
*
R
e
d
e
m
p
t
i
o
n
d
u
r
i
n
g
t
h
e
y
e
a
r
B
a
l
a
n
c
e
a
s
o
n
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
U
n
i
t
s
A
m
o
u
n
t
(
`
i
n
c
r
o
r
e
)
S
B
I
-
S
h
o
r
t
H
o
r
i
z
o
n
D
e
b
t
F
u
n
d
-
U
l
t
r
a
S
h
o
r
t
T
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
7
3
,
1
7
9
,
8
4
7
6
7
3
.
5
8
6
7
3
,
1
7
9
,
8
4
7
6
7
3
.
5
8
-
-
S
B
I
-
S
h
o
r
t
h
o
r
i
z
o
n
d
e
b
t
f
u
n
d
-
U
l
t
r
a
S
h
o
r
t
T
e
r
m
-
I
n
s
t
i
t
u
t
i
o
n
a
l
p
l
a
n
-
G
r
o
w
t
h
6
9
,
8
0
9
,
3
5
2
8
3
.
7
2
-
-
9
8
,
9
6
5
,
6
2
0
1
2
6
.
6
9
6
9
,
8
0
9
,
3
5
2
8
3
.
7
2
9
8
,
9
6
5
,
6
2
0
1
2
6
.
6
9
S
B
I
S
D
F
S
-
1
3
m
o
n
t
h
s
-
G
r
o
w
t
h
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
-
-
1
5
0
,
0
0
0
,
0
0
0
1
5
0
.
0
0
-
-
S
B
I
S
D
F
S
-
3
7
0
D
a
y
s
-
G
r
o
w
t
h
9
0
,
0
0
0
,
0
0
0
9
0
.
0
0
-
-
-
-
-
-
9
0
,
0
0
0
,
0
0
0
9
0
.
0
0
S
B
I
S
D
F
S
-
9
0
D
a
y
s
-
3
7
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
I
n
c
o
m
e
P
o
r
t
f
o
l
i
o
F
u
n
d
S
c
h
e
m
e
A
2
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
1
1
9
,
9
8
8
,
0
0
2
1
2
0
.
0
0
1
1
9
,
9
8
8
,
0
0
2
1
2
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
I
n
c
o
m
e
P
o
r
t
f
o
l
i
o
F
u
n
d
S
c
h
e
m
e
A
3
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
-
-
-
-
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
1
0
0
,
0
0
0
,
0
0
0
1
0
0
.
0
0
-
-
T
A
T
A
F
i
x
e
d
M
a
t
u
r
i
t
y
p
l
a
n
-
S
e
r
i
e
s
2
6
-
S
c
h
e
m
e
A
-
G
r
o
w
t
h
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
-
-
-
-
-
-
2
0
,
0
0
0
,
0
0
0
2
0
.
0
0
T
A
T
A
F
l
o
a
t
e
r
F
u
n
d
-
D
i
v
i
d
e
n
d
-
-
-
-
2
,
2
7
5
,
5
8
8
,
2
4
1
2
,
2
8
3
.
6
9
2
,
2
7
5
,
5
8
8
,
2
4
1
2
,
2
8
3
.
6
9
-
-
T
A
T
A
F
l
o
a
t
e
r
F
u
n
d
-
G
r
o
w
t
h
6
,
0
6
2
,
7
8
2
8
.
3
2
-
-
3
7
8
,
3
2
5
,
0
4
0
5
5
4
.
8
9
6
,
0
6
2
,
7
8
2
8
.
3
2
3
7
8
,
3
2
5
,
0
4
0
5
5
4
.
8
9
T
A
T
A
L
i
q
u
i
d
S
u
p
e
r
H
i
g
h
I
n
v
e
s
t
m
e
n
t
F
u
n
d
-
D
a
i
l
y
D
i
v
i
d
e
n
d
-
-
-
-
1
4
,
2
2
4
,
4
2
0
1
,
5
8
5
.
3
4
1
4
,
2
2
4
,
4
2
0
1
,
5
8
5
.
3
4
-
-
U
T
I
-
S
h
o
r
t
t
e
r
m
i
n
c
o
m
e
f
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
I
n
c
o
m
e
O
p
t
i
o
n
-
R
e
i
n
v
e
s
t
m
e
n
t
1
9
8
,
7
6
7
,
6
4
1
2
0
0
.
0
0
-
-
1
,
5
9
5
,
5
4
3
1
.
6
1
2
0
0
,
3
6
3
,
1
8
4
2
0
1
.
6
1
-
-
U
T
I
-
F
I
I
F
-
Q
u
a
r
t
e
r
l
y
I
n
t
e
r
v
a
l
P
l
a
n
-
S
e
r
i
e
s
I
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
9
9
,
9
8
6
,
0
0
2
1
0
0
.
0
0
9
9
,
9
8
6
,
0
0
2
1
0
0
.
0
0
-
-
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
I
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
9
9
,
9
6
8
,
0
1
0
1
0
0
.
0
0
2
5
,
0
0
0
,
0
0
0
2
5
.
0
1
7
4
,
9
6
8
,
0
1
0
7
4
.
9
9
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
F
u
n
d
-
Q
I
P
-
S
e
r
i
e
s
V
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
1
4
9
,
9
8
8
,
0
0
1
1
5
0
.
0
0
-
-
-
-
1
4
9
,
9
8
8
,
0
0
1
1
5
0
.
0
0
-
-
U
T
I
-
F
i
x
e
d
I
n
c
o
m
e
I
n
t
e
r
v
a
l
F
u
n
d
-
M
o
n
t
h
l
y
I
n
t
e
r
v
a
l
P
l
a
n
I
-
D
i
v
i
d
e
n
d
O
p
t
i
o
n
-
-
-
-
7
4
,
9
6
4
,
0
1
7
7
5
.
0
0
-
-
7
4
,
9
6
4
,
0
1
7
7
5
.
0
0
U
T
I
-
F
i
x
e
d
M
a
t
u
r
i
t
y
P
l
a
n
-
Y
e
a
r
l
y
S
e
r
i
e
s
(
Y
F
M
P
1
1
/
0
9
)
-
G
r
o
w
t
h
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
-
-
5
0
,
0
0
0
,
0
0
0
5
0
.
0
0
-
-
U
T
I
-
F
l
o
a
t
i
n
g
R
a
t
e
f
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
6
,
3
7
1
,
5
2
4
6
3
7
.
6
4
6
,
3
7
1
,
5
2
5
6
3
7
.
6
4
-
-
U
T
I
-
F
l
o
a
t
i
n
g
R
a
t
e
F
u
n
d
-
S
h
o
r
t
T
e
r
m
P
l
a
n
-
I
n
s
t
i
t
u
t
i
o
n
a
l
-
G
r
o
w
t
h
-
-
-
-
3
,
9
5
6
,
4
8
7
4
3
7
.
6
4
-
-
3
,
9
5
6
,
4
8
7
4
3
7
.
6
4
U
T
I
-
L
i
q
u
i
d
C
a
s
h
P
l
a
n
-
D
a
i
l
y
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
o
p
t
i
o
n
-
-
-
-
3
,
7
2
8
,
1
4
4
3
8
0
.
0
6
3
,
7
2
8
,
1
4
4
3
8
0
.
0
6
-
-
U
T
I
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
D
a
i
l
y
D
i
v
i
d
e
n
d
R
e
i
n
v
e
s
t
O
p
t
i
o
n
-
-
-
-
5
,
8
3
2
,
8
3
1
5
8
3
.
4
1
5
,
8
3
2
,
8
3
1
5
8
3
.
4
1
-
-
U
T
I
-
T
r
e
a
s
u
r
y
A
d
v
a
n
t
a
g
e
F
u
n
d
-
I
n
s
t
i
t
u
t
i
o
n
a
l
P
l
a
n
-
G
r
o
w
t
h
-
-
-
-
1
8
9
,
7
2
2
2
5
.
0
5
-
-
1
8
9
,
7
2
2
2
5
.
0
5
T
o
t
a
l
3
,
4
3
1
,
4
4
4
,
2
5
8
3
,
7
2
3
.
4
5
2
0
9
,
3
2
0
,
6
5
2
2
4
9
.
8
4
3
4
,
4
9
5
,
8
1
1
,
7
7
0
4
3
,
2
8
1
.
9
9
3
2
,
4
0
5
,
5
5
7
,
7
0
3
3
9
,
5
0
4
.
7
4
5
,
7
3
1
,
0
1
8
,
9
7
7
7
,
7
5
0
.
5
4
P
r
e
v
i
o
u
s
y
e
a
r
2
,
4
2
6
,
7
1
3
,
7
3
7
2
,
9
7
7
.
7
3
-
-
1
3
,
2
2
5
,
0
9
8
,
1
0
9
1
5
,
0
1
8
.
2
9
1
2
,
2
2
0
,
3
6
7
,
5
8
7
1
4
,
2
7
2
.
5
7
3
,
4
3
1
,
4
4
4
,
2
5
8
3
,
7
2
3
.
4
5
*
i
n
c
l
u
d
e
s
d
i
v
i
d
e
n
d
r
e
i
n
v
e
s
t
e
d
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
90
14. Research and development expenditure of `0.29 crore (Previous year `0.29 crore) has been charged to Pro?t and
Loss Account under speci?c heads of accounts, while `Nil (Previous year `Nil) has been incurred as capital cost
for research and development.
15. Employee bene?ts obligations:
De?ned bene?t plans:
The Company ofers its employees de?ned bene?t plans in the form of gratuity schemes. Gratuity Scheme covers
all employees as statutorily required under Payment of Gratuity Act, 1972. The Company has three gratuity
schemes for diferent categories of employees. The Company contributes funds to Life Insurance Corporation of
India and ICICI Prudential Life Insurance Company Limited, which are irrevocable. Commitments are actuarially
determined at the year end. The actuarial valuation is done based on the “Projected Unit Credit” method.
Gains and losses of changed actuarial assumptions are charged to the Pro?t and Loss Account under the head
‘Personnel’.
The net value of the de?ned bene?t commitment is detailed below:
(` in crore)
Particulars 2010-11 2009-10
Fair value of plans 28.81 22.45
Present value of commitment (34.00) (25.58)
Net gratuity liability (5.19) (3.13)
De?ned bene?t commitment
Balance at start of the year 25.58 21.84
Acquired on amalgamation 4.01 -
Current service cost 1.73 1.26
Bene?ts paid (3.15) (1.99)
Interest cost 2.37 1.75
Actuarial (gains)/losses 3.46 2.72
Balance at end of year 34.00 25.58
Plan assets
Balance at start of the year 22.45 17.61
Acquired on amalgamation 3.42 -
Contribution received 3.72 4.23
Bene?ts paid (3.15) (1.99)
Return on scheme assets 2.10 2.23
Actuarial gains/(losses) 0.27 0.37
Balance at end of year 28.81 22.45
The Plan assets of the Company are managed by the Life Insurance Corporation of India and ICICI Prudential
Life Insurance Company Limited and the composition of the Investment relating to these assets is not available
with the Company.
(` in crore)
Return on plan assets 2010-11 2009-10
Expected return on plan assets 2.10 2.23
Actuarial gain/(loss) 0.27 0.37
Actual return on plan assets 2.37 2.60
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
91
Expenses on de?ned bene?t plan recognised in the Pro?t and Loss Account
(` in crore)
Particulars 2010-11 2009-10
Current service cost 1.73 1.26
Actuarial (gains) / losses 3.19 2.35
Expected return on plan assets (2.10) (2.23)
Interest cost 2.37 1.75
Direct payments 0.03 -
Total expenses / (income) accounted in the Pro?t and Loss Account 5.22 3.13
The actuarial calculations used to estimate de?ned bene?t commitments and expenses are based on the
following assumptions which if changed, would afect the de?ned bene?t commitments size, funding
requirements.
Particulars 2010-11 2009-10
Rate on discounting liabilities 8% 8%
Expected salary increase rate 5% & 7% 5% & 7%
Expected rate of return on scheme assets 10% & 9.3% 9% & 9.3%
Withdrawal rates 1.5% 1.5%
Mortality rates LIC (1994-96) Ultimate Table LIC (1994-96) Ultimate Table
The estimates of future salary increases considered in the actuarial valuation, take account of in?ation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.
Experience adjustment
(` in crore)
Particulars 2010-11 2009-10 2008-09 2007-08
Present value of commitment (34.00) (25.58) (21.84) (18.18)
Fair value of the plans 28.81 22.45 17.61 17.00
Surplus / (de?cit) (5.19) (3.13) (4.23) (1.18)
Experience adjustment on plan liabilities 3.28 0.60 2.88 1.11
Experience adjustment on plan assets (1.92) 2.99 (0.04) 1.73
The contributions expected to be made by the Company during the ?nancial year 2011-12 are `5.19 crore.
The above information is actuarially determined.
De?ned Contribution Plans:
The Company ofers its employees bene?ts under de?ned contribution plans in the form of provident fund,
family pension fund and annuity fund. Provident fund, family pension fund and annuity fund cover substantially
all regular employees. Contributions are paid during the year into separate funds under certain statutory /
?duciary type arrangements. While both the employees and the Company pay predetermined contributions
into the provident fund and pension fund, the contribution to annuity fund are made only by the Company. The
contributions are normally based on a certain proportion of the employee’s salary.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
92
A sum of `8.31 crore (Previous year `5.64 crore) has been charged to the Pro?t and Loss Account in this respect,
the components of which are tabulated below:
(` in crore)
Contribution to de?ned contribution plans 2010-11 2009-10
Provident fund and family pension fund 5.59 3.72
Annuity fund 2.72 1.92
8.31 5.64
16. i) Quantitative Information in respect of Iron Ore, Metallurgical Coke and Pig Iron:
Particulars Iron Ore Metallurgical Coke Pig Iron
Quantity Value Quantity Value Quantity Value
(MMT) (` in Crore) (MMT) (` in Crore) (MMT)
(` in Crore)
Installed capacity - - 0.280 N.A. 0.250 N.A.
- - (0.280) N.A. (0.250) N.A.
Opening stock as on 1.4.2010 4.087 263.65 0.009 10.66 - -
(2.536) (131.78) (0.011) (11.67) (-) (-)
Acquired on amalgamation - - - - 0.006 12.38
(-) (-) (-) (-) (-) (-)
Production (Footnote 1) 10.952 805.63 0.263 382.80 0.276 527.53
(11.543) (395.02) (0.263) (339.08) (-) (-)
Purchases (Footnote 1) 4.029 518.81 - - - -
(5.185) (298.80) (-) (-) (-) (-)
Captive consumption 0.312 99.44 0.171 330.41 - -
(-) (-) (-) (-) (-) (-)
Sales 14.368 6,636.43 0.080 141.40 0.266 663.74
(15.177) (4,238.28) (0.265) (356.50) (-) (-)
Closing stock as on 31.3.2011 4.388 226.52 0.021 35.14 0.016 38.58
(4.087) (263.65) (0.009) (10.66) (-) (-)
Footnotes:
1. Net of processing and handling loss on ore handled and processed/reprocessed during the year.
2. The closing stock of ore excludes 0.053 million metric ton (Previous year 0.081 million metric ton)
received on loan basis.
3. Figures in brackets relate to previous year.
4. Quantities are in dry metric tons (DMT).
5. Hitherto, the quantities were stated in wet metric tons (WMT); accordingly the quantities in respect of
previous year have been restated in DMT to conform to current year’s measurement.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
93
ii) Consumption of Raw Materials:
Particulars Quantity Value
(MMT) (` in Crore)
Coal 0.340 355.23
(0.338) (306.47)
Coal tar pitch - -
( - ) (0.06)
Iron Ore (Foot Note 1) 0.107 35.46
( - ) ( - )
Others - 6.66
( - ) ( - )
Total 397.35
(306.53)
Footnotes:
1. Excludes 0.312 million metric ton of Iron Ore used for captive consumption.
2. Figures in brackets relate to previous year.
3. Quantities are in dry metric tons (DMT).
4. Hitherto, the quantities were stated in wet metric tons (WMT); accordingly the quantities in respect of
previous year have been restated in DMT to conform to current year’s measurement.
iii) Services rendered to third parties towards repair of barges and machinery etc. amount to `13.04 crore
(Previous year `23.76 crore)
17. Donations and contributions include payment to the following political parties:
(` in crore)
Particulars 2010-11 2009-10
Bhartiya Janata Party - 0.85
Bhartiya Janata Party (Jharkhand Pradesh) - 0.10
Jharkhand Vikas Morcha - 0.10
Goa Pradesh Congress Committee - 0.30
Maharashtrawadi Gomantak Party - 0.02
Shiv Sena - 0.01
18. CIF Value of Imports and Consumption of spares
(` in crore)
Particulars 2010-11 2009-10
i) Value of imports on CIF basis in respect of
a) Raw materials 509.70 343.78
b) Components and spare parts 17.21 14.11
c) Capital goods 111.17 9.82
ii) Consumption of imported raw materials, stores, spares parts and components 57.59%
(Previous year 61.06%)
369.66 314.58
iii) Consumption of indigenous raw materials, stores, spares parts and components 42.41%
(Previous year 38.94%)
272.27 200.66
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
94
19. Segment Information
As required by Accounting Standard No. 17 on Segment Reporting
i) The Company is collectively organised into three main business segments namely:
- Iron Ore
- Metallurgical coke
- Pig iron
Segments have been identi?ed and reported taking into account the nature of the product and services, the
organisation structure and internal ?nancial reporting system.
ii) Information based on the Primary Segment (Business Segment) (` in crore)
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Revenue
- Sales / Income from Operations
(net of duties and ocean frieght)
6,789.43
(4,275.98)
506.37
(384.35)
673.81
(-)
7,969.61
(4,660.33)
- Other Income 2.67
(3.08)
0.14
(0.17)
0.39
(-)
3.20
(3.25)
6,792.10
(4,279.06)
506.51
(384.52)
674.20
(-)
7,972.81
(4,663.58)
Less : Intersegment Revenue 104.50
(-)
354.78
(-)
0.04
(-)
459.32
(-)
Net Revenue from operations 6,687.60
(4,279.06)
151.73
(384.52)
674.16
(-)
7,513.49
(4,663.58)
Add : Interest Income 173.01
(142.38)
173.01
(142.38)
Add : Dividend 259.92
(66.70)
259.92
(66.70)
Add : Foreign Exchange Gain on Foreign
Currency Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 61.86
(75.21)
61.86
(75.21)
Enterprise revenue 8,008.28
(5,069.78)
Segment Result before tax, interest,dividend and
other non-recurring/unallocable income
3,746.63
(2,275.88)
89.01
(26.78)
141.08
(-)
3,976.72
(2,302.66)
Less: Interest Expenses 36.93
(50.77)
36.93
(50.77)
Less: Foreign Exchange Loss on Foreign
Currency Convertible Bonds
48.78
(-)
48.78
(-)
Add : Interest Income 173.01
(142.38)
173.01
(142.38)
Add : Dividend Income 259.92
(66.70)
259.92
(66.70)
Add : Foreign Exchange Gain on Foreign
Currency Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 61.86
(75.21)
61.86
(75.21)
Pro?t before Taxation 4,385.80
(2,658.09)
Segment Assets 2,350.62
(1,190.67)
384.65
(254.48)
279.36
-
11,188.52
(8,828.64)
14,203.15
(10,273.79)
Segment Liabilities 771.79
(557.95)
358.42
(168.01)
53.38
-
1,430.75
(2,339.12)
2,614.34
(3,065.08)
Capital Expenditure 815.15
(128.17)
3.79
(3.42)
18.35
(-)
-
(-)
837.29
(131.59)
Depreciation 51.68
(48.07)
23.15
(9.31)
8.30
(-)
-
(-)
83.13
(57.38)
Signi?cant Non-Cash Expenses other than
depreciation
0.12
(0.50)
0.07
(9.03)
-
(-)
48.78
(-)
48.97
(9.53)
(Figures in bracket relate to previous year)
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
95
iii) Information based on the Secondary Segment (Geographical Segments):
(` in crore)
Particulars 2010-11 2009-10
Segment revenue:
India 1,250.12 632.59
Outside India 6,263.37 4,030.99
Segment assets:
India 2,617.28 1,222.20
Outside India 397.35 222.95
Capital expenditure:
India 837.29 131.59
Outside India - -
20. i) Managerial remuneration
(` in crore)
Particulars 2010-11 2009-10
Salaries 2.45 2.35
Provident fund 0.16 0.15
Gratuity fund 0.65 0.61
Annuity fund 0.20 0.18
Perquisites 0.65 0.93
Sitting fees 0.07 0.03
Commission [Including `0.42 crore (Previous year `0.28 crore) payable to non-whole time
directors]
1.16 0.84
Total 5.34 5.09
ii) Computation of net pro?t under Section 309(5) read with Section 349 of the Companies Act, 1956.
(` in crore)
Particulars 2010-11 2009-10
Pro?t before taxes 4,385.80 2,658.09
Less: Pro?t on redemption/sale of investments 61.86 75.21
Pro?t per Section 349 4,323.94 2,582.88
Add: Directors’ remuneration 5.34 5.09
Pro?t under Section 198 4,329.28 2,587.97
Commission payable to whole time directors @ 1% of net pro?t restricted to 0.74 0.56
Commission to non-whole time directors @ 1% of net pro?t restricted to 0.42 0.28
21. Foreign Currency Exposures:
The year end foreign currency exposures that were not hedged by a derivative instrument or otherwise are given
below.
i) Amount receivable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in Crore Fx million ` in Crore Fx million
Export of goods and services & Advance to Vendors 396.93 USD 88.86
JPY 2.07
GBP 0.01
218.13 USD 48.3
Bank balance 0.09 CNY 0.12
USD 0.0014
0.16 CNY 0.12
USD 0.02
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
96
ii) Amount payable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` (in Crore) Fx million ` (in Crore) Fx million
Import of goods and services 470.39 USD 105.09 254.76 USD 56.4
JPY 4.23 JPY 5.2
EURO 0.15
Foreign Currency Convertible Bonds and Interest there on 988.31 USD 221.35 1,956.91 USD 433.5
Note: Fx = Foreign currency; USD = US Dollar; JPY = Japanese Yen; GBP = Great Britain Pound; CNY = Chinese Yuan
22. Expenditure incurred in foreign currency (including diference in rate of exchange):
(` in crore)
Particulars 2010-11 2009-10
Analysis of ore 3.86 5.84
Travelling expenses 0.47 0.35
Demurrage 162.45 99.36
Books and periodicals 0.27 0.07
Ocean freight 738.49 670.90
Commission and service charges on sales 0.12 4.63
Insurance 3.35 3.16
Repairs & maintenance – Plant & machinery 5.25 5.36
Port disbursement 0.39 0.58
Salaries & Wages including LTIP 6.17 5.34
China ofce expenses 1.44 1.16
Interest on Foreign Currency Convertible Bonds 20.57 40.72
Others 13.72 21.37
23. Earnings in foreign currency (including diference in rate of exchange):
(` in crore)
Particulars 2010-11 2009-10
On exports of iron ore, met coke and pig iron on FOB basis 6,258.93 4,027.77
Despatch money 17.74 8.73
Carbon credit 4.44 -
24. Remittance of dividends in foreign currency:
Dividend for the year 2010-11 2009-10
Number of Non-resident shareholders 3 2
Number of shares held (in crore) 47.91 41.80
Amount remitted (` in crore) 155.71 94.05
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
97
25. Earnings per share:
Particulars 2010-11 2009-10
Net pro?t after tax (`in crore) 3,432.80 2,118.09
Weighted average no. of equity shares 858,713,539 811,125,264
Nominal value of each equity shares `1 `1
Basic earnings per share (in `) 39.98 26.11
Add: Expenses/ (income) to the Pro?t and Loss Account on account of Foreign Currency
Convertible Bonds (net of tax)
59.81 (61.06)
Pro?t after tax for diluted earning per share 3,492.61 2,057.03
Weighted average number of shares for basic EPS 858,713,539 811,125,264
Add: Efect of potential equity shares on conversion of Foreign Currency Convertible Bonds 30,000,000 1,716,276
Weighted average number of shares for diluted earning per share 888,713,539 812,841,540
Diluted earning per share (in `) 39.30 25.31
26. Related party information:
Related party information as required by AS 18 is given below:
A. Names of the related parties and their relationships:
i) Holding Companies:
- Finsider International Company Limited Holding Company
- Richter Holding Limited
Holding Companies of Finsider International Company Limited
- Westglobe Limited
- Vedanta Resources Plc Ultimate Holding Company
ii) Subsidiaries of the Company:
- Sesa Industries Limited (amalgamated during the year, Refer Note No. 2)
- Sesa Resources Limited (formerly V. S. Dempo & Co. Limited)
- Sesa Mining Corporation Limited (formerly Dempo Mining Corporation Limited)
iii) Fellow Subsidiaries:
With whom transactions have taken place during the year
- Bharat Aluminium Company Limited
- Hindustan Zinc Limited
- Konkola Copper Mines
- The Madras Aluminium Company Limited
- Sterlite Industries (India) Limited
- Sterlite Iron and Steel Company Limited
- Sterlite Technologies Limited
- Twin Star Holdings Limited
- Vedanta Aluminium Limited
- Vizag General Berth Cargo Private Limited
iv) Jointly Controlled Entity:
- Goa Maritime Private Limited
}
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
98
v) Details of Key Management Personnel
Executive directors
- Mr. P. K. Mukherjee
- Mr. A. K. Rai
- Mr. A. Pradhan
- Mr. H. P. U. K. Nair (Retired on 0í.í0.2009)
- Mr. M. D. Phal (Retired on 30.04.2009)
vi) Enterprise in which signi?cant in?uence is exercised by Key Management Personnel
- Sesa Community Development Foundation
B. Transactions with related parties:
a) Details relating to parties referred to in items A (i), (ii) and (iii) above:
(` in crore)
Name of Related Party Nature of Transaction Holding
Companies
Subsidiaries Fellow
Subsidiaries
1) Sales & Services
Bharat Aluminium Company Limited Services rendered -
( - )
-
( - )
0.001
( - )
Hindustan Zinc Limited Sales of metallurgical coke and
services rendered
-
( - )
-
( - )
0.74
(1.08)
Konkola Copper Mines Services rendered -
( - )
-
( - )
0.07
( - )
Madras Aluminium Company Limited Services rendered -
( - )
-
( - )
0.03
( - )
Sterlite Industries (I) Limited Sales of Pig Iron and services
rendered
-
( - )
-
( - )
7.08
( - )
Sesa Industries Limited Sales of metallurgical coke and
services rendered
-
( - )
-
(323.54)
-
( - )
Sterlite Iron and Steel Company Limited Interest on Intercorporate deposits -
( - )
-
( - )
0.90
( - )
Sesa Mining Corporation Limited Services rendered -
( - )
0.08
(0.23)
-
( - )
Sesa Resources Limited Sales of ore and services rendered -
( - )
33.97
(11.32)
-
( - )
Vedanta Aluminum Limited Interest on Intercorporate deposits -
( - )
-
( - )
90.14
(95.21)
Vizag General Berth Cargo Pvt. Limited Services rendered -
( - )
-
( - )
0.04
( - )
2) Purchase & Other services
Bharat Aluminium Co. Limited Administration expenses -
( - )
-
( - )
0.01
( - )
Finsider International Co. Limited Dividend remittance 130.49
(90.34)
-
( - )
-
( - )
Hindustan Zinc Limited Administration expenses -
( - )
-
( - )
0.48
(0.08)
The Madras Aluminium Co. Limited Administration expenses -
( - )
-
( - )
0.003
( - )
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
99
Name of Related Party Nature of Transaction Holding
Companies
Subsidiaries Fellow
Subsidiaries
Sterlite Industries Limited Administration expenses -
( - )
-
( - )
11.02
(9.75)
Sesa Industries Limited Purchases of ore -
( - )
-
(37.01)
-
( - )
Sterlite Technologies Limited Administration expenses -
( - )
-
( - )
0.02
(0.14)
Sesa Mining Corporation Limited Purchases of ore and other
services
-
( - )
25.21
( - )
-
( - )
Sesa Resources Limited Purchases of ore and other services -
( - )
49.92
(26.90)
-
( - )
Talwandi Sabo Power Limited Administration expenses -
( - )
-
( - )
-
(0.03)
Twin Star Holdings Limited Dividend remittance 10.81
( - )
-
( - )
-
( - )
Vedanta Resources Plc. Administration expenses 5.86
(5.34)
-
( - )
-
( - )
Vedanta Aluminium Limited Administration expenses -
( - )
-
( - )
2.56
(1.25)
West Globe Limited Dividend remittance 14.41
(3.72)
-
( - )
-
( - )
3) Inter Corporate Deposits
Sterlite Iron & Steel Company Limited -
( - )
-
( - )
26.71
( - )
Vedanta Aluminium Limited -
( - )
-
( - )
1,000.00
(1,000.00)
4) Preferential allotment of equity shares
Twin Star Holdings Limited -
( - )
-
( - )
-
(537.24)
5) Bad Debts Written Of -
( - )
-
( - )
-
( - )
6) Outstanding receivables/payables (-)
Hindustan Zinc Limited -
( - )
-
( - )
-
(-0.04)
Sterlite Industries (I) Limited -
( - )
-
( - )
-1.09
(-0.96)
Sterlite Iron and Steel Company Limited -
( - )
-
( - )
0.90
( - )
Sesa Resources Limited -
( - )
9.68
(- 13.78)
-
( - )
Sesa Mining Corporation Limited -
( - )
-4.06
(0.05)
-
( - )
Sterlite Technologies Limited -
( - )
-
( - )
-
( -0.01 )
Vedanta Aluminium Limited -
( - )
-
( - )
-0.52
( -0.64 )
Vedanta Resources Plc. -7.46
( -6.45)
-
( - )
-
( - )
(Figures in brackets relate to previous year.)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
100
b) Details relating to persons referred to in item A (v) above:
(` in crore)
Remuneration (Executive Directors) 2010-11 2009-10
Mr. P. K. Mukherjee 2.41 1.73
Mr. A. K. Rai 1.29 1.10
Mr. A. Pradhan 1.00 0.86
Mr. H. P. U .K. Nair (Retired on 0í.í0.2009) 0.15 0.76
Mr. M. D. Phal (Retired on 30.04.2009) - 0.34
4.85 4.79
Sale of Assets 2010-11 2009-10
Mr. H. P. U .K. Nair - 0.04
Outstanding receivables/(payables) 2010-11 2009-10
Mr. P. K. Mukherjee (0.74) (0.56)
c) Details relating to persons referred to in item A (vi) above.
(` in crore)
Particulars 2010-11 2009-10
Donation 3.29 3.53
Recovery – rent and electricity charges - 0.02
d) Additional information required as per the Listing Agreement:
(` in crore)
Particulars 2010-11 2009-10
Outstanding as at
31st March, 2011
Maximum
amount
outstanding
during the year
Outstanding as at
31st March, 2010
Maximum
amount
outstanding
during the year
Inter-corporate deposits – Dues from fellow subsidiary
Vedanta Aluminium Limited 1,000.00* 1,000.00 1,000.00 1,000.00
Sterlite Iron and Steel Company Limited 26.71** 27.61 - -
* Inter-corporate deposits have been placed at an interest rate of 8% from April 2010 to September 2010, 9%
from October 2010 to December 2010 and 11% p.a. from January 2011 to March 2011 and are secured against
a corporate guarantee from Vedanta Resources Plc., the ultimate holding company. As no cash and cash
equivalents were involved in the roll-over of this Inter-corporate deposit, the same has been excluded from
the Cash Flow Statement.
** Inter-corporate deposits have been placed at an interest rate of 8%.
Notes Forming Part of the Accounts
For the Year Ended 31st March, 2011 (Continued)
Schedule 19: (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
101
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
27. The ultimate holding company viz, Vedanta Resources Plc, (“Vedanta”) ofers equity-based award plans to its
employees, ofcers and directors based on the performance conditions as set out in the scheme, duly approved
by the board of directors and by the shareholders of Vedanta on 24th December, 2003 and 20th January, 2004
respectively. The performance condition attached to outstanding awards under the Long Term Incentive Plan
(LTIP) is that of Vedanta’s performance, measured in terms of Total Shareholder Return (“TSR”) compared over a
three year period or such period as the Board of Vedanta may determine with the performance of the companies
as de?ned in the scheme from the date of grant. Under this scheme, initial awards under the LTIP were granted
in February 2004 with further awards being made in June 2004, November 2004, February 2006, November
2007, February 2009, August 2009 and January 2010.
The fair values were calculated using a Monte Carlo model with suitable modi?cations to allow for the speci?c
performance conditions of the LTIP. The inputs to the model include the share price at date of grant, exercise
price, expected volatility, expected dividends and the risk free rate of interest. A progressive dividend growth
policy is assumed in all fair value calculations. Expected volatility has been calculated using historical share
prices over the period to date of grant that is commensurate with the performance period of the option. The
share prices of the mining companies in the Adapted Comparator Group have been modelled based on historical
price movements over the period to date of grant which is also commensurate with the performance period for
the option. The history of share prices is used to determine the volatility and correlation of share prices for the
companies in the Adapted Comparator Group and is needed for the Monte Carlo simulation of their future TSR
performance relative to the Company’s TSR performance. All options are assumed to be exercised six weeks after
vesting.
The awards are indexed to and settled in Vedanta shares. The awards provide for a ?xed exercise price
denominated in Vedanta’s functional currency at 10 US cents per share. Vedanta is obligated to issue the shares.
On the grant date, fair value of the awards is recovered by Vedanta from the Company to the extent the awardees
have been deployed at the Company.
Accordingly, Vedanta, on the basis of fair value of options granted to such employees charged a proportionate
cost to the Company in the amount of ` 5.86 crore (Previous year ` 5.34 crore) which is charged to the Pro?t and
Loss Account under the head “Salaries, Wages, bonus and allowances” in Schedule 16 to the ?nancial statements.
Vedanta has obtained an overall valuation of the options granted by it to the awardees. Information related to
options granted to the eligible resources deployed at the Company is not readily available and accordingly the
movements in options have not been disclosed.
28. “Other current assets” comprise interest accrued on term deposits.
29. Previous year’s ?gures have been regrouped and rearranged wherever necessary to conform to current year’s
classi?cation.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
102
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
I) Registration Details:
Registration No. 44/G
State Code 24
Balance Sheet Date 31.3.2011
II) Capital Rose during the year: (` in crore)
Public Issue NIL
Rights Issue NIL
Bonus Issue NIL
Private Placement NIL
III) Position of Mobilisation & Deployment of Funds: (` in crore)
Total Liabilities 12,623.23
Total Assets 12,623.23
Sources of Funds:
Paid-up Capital 86.91
Reserves & Surplus 11,501.90
Secured Loans 3.31
Unsecured Loans 968.01
Deferred Tax liability 63.10
Application of Funds:
Net Fixed Assets 1,414.02
Investments 9,463.81
Net Current Assets 1,745.40
Accumulated Losses NIL
IV) Performance of Company: (` in crore)
Turnover 8,008.28
Total Expenditure 3,622.48
Pro?t before Tax 4,385.80
Pro?t after Tax 3,432.80
Basic Earning Per Share (in `) 39.98
Diluted Earning Per Share (in `) 39.30
Dividend rate (%) 350.00
V) Generic Names of Principal Products/Services of Company (As per monetary terms)
Item Code No. (ITC Code) 26011100 89011004 27040009 72011000
Product Description Iron Ore Vessels Metallurgical Coke Low Phosphorous
Foundry Grade Pig
Iron
Balance Sheet Abstract and Company’s General Business Pro?le
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
103
Sesa Goa Limited Ten Year Record
(` in crore, except as stated)
Year ending 31st March
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fixed Assets
174.15 183.67 194.74 287.45 329.05 398.85 413.94 506.19 580.16 1,414.02
Investments
68.59 58.98 66.95 345.96 516.16 867.81 2,000.44 3,019.68 5,478.64 9,463.81
Net Current Assets
188.80 169.09 162.92 156.40 296.54 291.80 430.25 1,046.35 3,134.91 1,745.40
Total Capital Employed
371.19 355.55 379.27 734.32 1,084.13 1,506.36 2,791.13 4,517.78 9,124.90 12,556.82
Shareholder’s Equity
231.93 238.93 315.51 724.25 1,084.13 1,506.36 2,791.13 4,517.78 7,208.71 11,588.81
Sales & Other Income
270.31 362.78 573.21 1,423.84 1,734.76 2,049.44 3,672.41 4,996.23 5,069.78 8,008.28
Pro?t Before Tax
23.29 17.99 142.78 687.42 807.08 899.85 2,236.94 2,630.70 2,658.09 4,385.80
Tax for the year
7.70 5.40 44.00 225.04 267.68 293.44 744.94 688.21 540.00 953.00
Pro?t After Tax
15.59 12.58 98.78 462.37 539.40 606.41 1,492.00 1,942.49 2,118.09 3,432.80
Dividends/Dividend Tax
5.90 5.55 22.20 100.93 179.53 182.45 207.23 207.23 315.96 376.26
Retained Earnings
9.69 7.03 76.58 361.44 359.87 423.96 1,284.77 1,735.26 1,802.13 3,056.54
Earnings Per Share (in `)
7.92 6.39 50.19 117.47 137.04 154.06 379.06 24.68* 26.11* 39.98*
Dividends %
30.00 25.00 100.00 225.00 400.00 400.00 450.00 225.00 325.00 350.00
No. of Shareholders
37,479 30,460 29,948 61,313 43,418 43,032 90,875 170,222 213,086 267,818
Notes :
1. Figures for the previous years have been regrouped wherever necessary to make them comparable to those of the current year. Current years ?gures are
subject to approval of shareholders at Annual General Meeting including dividend proposed.
2. Number of shareholders shown is as on the date of Annual General Meeting of the relevant years except for the year 2011.
3. The dividend % for year ending 31st March, 2005 is the efective rate on post bonus share capital (Bonus Issue @ 1:1 after interim dividend paid @ 50%).
4. During the ?nancial 2008-09, shares were sub-divided from face value of ` 10/- to face value of ` 1/- and bonus shares in ratio of 1:1 were issued. The Dividend
for 2008-09, 2009-10 and 2010-11 is post split and bonus.
5. * EPS on nominal value of ` 1/-.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
104
Statement Pursuant to Section 212 of the Companies Act, 1956
Relating to Subsidiary Companies (` in Crore except as stated)
Sr.
No.
Particulars Sesa Resources
Limited
Sesa Mining
Corporation Limited
1. Financial years of the Subsidiary Company ended on 31st March, 2011 31st March, 2011
2. Shares of the Subsidiary Company held on the abovedate and extent of holding
a) Equity Shares 1,250,000 1,150,000
b) Extent of Holding 100% 100%
3. The net aggregate amount of the Subsidiaries pro?t/(loss) so far as it is concerned
with the members of the Sesa Goa Limited
i) Not dealt within the holding company’s accounts (Refer Note No.1)
a) For the ?nancial year of the Subsidiary 775.60 14.05
b) For the previous ?nancial years of the Subsidiary/since it became the
Holding company’s subsidiary
1,196.17 25.44
ii) Dealt within the holding company’s accounts
a) For the ?nancial year of the Subsidiary Nil Nil
b) For the previous ?nancial years of the Subsidiary/since it became the
Holding company’s subsidiary
Nil Nil
4. Material changes, if any between the end of the ?nancial year of the subsidiary
company and that of the Holding Comapny
NA NA
5. Additional information on Subsidiary Companies
Share Capital 1.25 11.50
Reserves 1,415.98 112.74
Total Assets 1,451.52 124.24
Total Liabilities 1,451.52 124.24
Investment(except incase of investment in subsidiaries) 1,037.09 12.12
Turnover 1,815.41 180.47
Pro?t before Taxation 1,152.84 21.05
Provision for Taxation 377.24 7.00
Pro?t after Taxation and write back 775.60 14.05
Proposed Dividend (including Dividend Distribution Tax thereon) - -
Notes:
1. Your Company had two subsidiary companies as on 31st March, 2011.
2. Sesa Mining Corporation Limited is a subsidiary of Sesa Resources Limited, which is 100% subsidiary of the Company.
3. The Ministry of Corporate Afairs, Government of India, vide General Circular No. 2 and 3 dated 8th February,
2011 and 21st February, 2011 respectively has granted a general exemption from compliance with section 212 of
the Companies Act, 1956, subject to ful?llment of conditions stipulated in the circular. The Company has
satis?ed the conditions stipulated in the circular and hence is entitled to the exemption.
4. The Annual Accounts for 2010-11 for all subsidiaries are available at Company’s Registered Ofce. Any investor either of
Holding Company or any Subsidiary Company can seek any information at any point of time by making a request in writing
to the Company Secretary of the Company at Sesa Goa Limited, Sesa Ghor, 20 EDC Complex, Patto, Panaji-Goa 403 001 to
obtain a copy of the ?nancial statements of the subsidiary companies. The Subsidiaries Accounts will also be available on
the Website of the Company www.sesagoa.com.
5. The consolidated ?nancial statements, in terms of Clause 32 of the Listing Agreement and in terms of Accounting Standards
21 as prescribed by Companies (Accounting Standards) Rules, 2006 issued by Ministry of Corporate Afairs vide noti?cation
no. G.S.R. 739 (E) dated 7th December, 2006 also form part of this Annual Report.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
105
Auditors’ Report
To the Board of Directors of Sesa Goa Limited
1. We have audited the attached Consolidated Balance Sheet of SESA GOA LIMITED (“the Company”) and its
subsidiaries (the Company and its subsidiaries constitute “the Group”) as at 31st March, 2011, the Consolidated
Pro?t and Loss Account and the Consolidated Cash Flow Statement of the Group for year ended on that date,
both annexed thereto. These ?nancial statements are the responsibility of the Company’s management and have
been prepared by the management on the basis of separate ?nancial statements and other ?nancial information
regarding components. Our responsibility is to express an opinion on these Consolidated Financial Statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the ?nancial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the ?nancial statements. An audit also includes assessing the accounting
principles used and the signi?cant estimates made by the Management, as well as evaluating the overall ?nancial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We report that the Consolidated Financial Statements have been prepared by the Company in accordance
with the requirements of Accounting Standard 21 (Consolidated Financial Statements) as noti?ed under the
Companies (Accounting Standards) Rules, 2006.
4. Based on our audit and on consideration of the separate audit reports on the individual ?nancial statements of
the Company and its subsidiaries and to the best of our information and according to the explanations given
to us, in our opinion, the Consolidated Financial Statements give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Consolidated Balance Sheet, of the state of afairs of the Group as at 31st March, 2011;
(ii) in the case of the Consolidated Pro?t and Loss Account, of the pro?t of the Group for the year ended on
31st March, 2011; and
(iii) in the case of the Consolidated Cash Flows Statements, of the cash ?ows of the Group for the year ended on
31st March, 2011.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117366W)
Rajesh K. Hiranandani
Partner
(Membership No. 36920)
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
106
Consolidated Balance Sheet of Sesa Goa Limited
and it's Subsidiary Companies
As at 31st March, 2011
Particulars Sch.
No.
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
SOURCES OF FUNDS
Shareholders' funds
Share capital 1 86.91 83.10
Reserves and surplus 2 12,723.52 7,834.61
12,810.43 7,917.71
Minority interest - 43.29
Loans funds
Secured loans 3 31.44 44.37
Unsecured loans 4 968.01 1,916.19
999.45 1,960.56
Deferred tax liability (net) 5 68.21 75.02
Total 13,878.09 9,996.58
APPLICATION OF FUNDS
Fixed assets 6
Gross block 3,064.83 2,751.04
Less : Depreciation 649.19 574.08
Net block 2,415.64 2,176.96
Capital work-in-progress 728.66 78.74
3,144.30 2,255.70
Investments 7 8,799.80 4,564.85
Current assets, loans and advances
Inventories 8 743.75 502.54
Sundry debtors 9 683.02 338.12
Cash and bank balances 10 897.02 2,391.84
Other current assets 14.14 39.60
Loans and advances 11 1,321.65 1,145.52
3,659.58 4,417.62
Less: Current liabilities and provisions
Current liabilities 12 1,294.64 830.18
Provisions 13 430.95 411.41
1,725.59 1,241.59
Net Current Assets 1,933.99 3,176.03
Total 13,878.09 9,996.58
Notes to accounts 19
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
107
Consolidated Pro?t and Loss Account of Sesa Goa Limited
and its Subsidiary Companies
For the Year Ended 31st March, 2011
Particulars Sch.
No.
Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
INCOME
Sales of ore/ pig iron/ metallurgical coke 10,150.91 6,654.30
Less: Excise duty 63.65 44.34
10,087.26 6,609.96
Less: Ocean freight 943.16 812.16
9,144.10 5,797.80
Hire of ship and transhipper 1.37 5.25
Services and other proceeds 14 59.65 55.24
Miscellaneous income 15 539.89 425.97
9,745.01 6,284.26
EXPENDITURE
Production and operational expenses 16 3,866.21 2,615.86
Administration expenses 17 132.59 93.80
Interest and other ?nance charges 18 90.14 55.51
Depreciation 96.38 74.50
4,185.32 2,839.67
Pro?t before tax 5,559.69 3,444.59
Less: Provision for taxation
Current tax 1,344.22 799.92
Prior year taxes (0.17) 1.24
Deferred tax (6.81) 4.39
1,337.24 805.55
Pro?t after taxes 4,222.45 2,639.04
Less: Minority interest - 9.91
Pro?t attributable to equity shareholders 4,222.45 2,629.13
Add: Balance brought forward 966.70 253.53
Add: Pro?t for the period 1st April, 2005 to 31st March, 2010 on
acquisition of minority interest and other adjustments (Refer
Note No. 2 of Schedule 19)
38.77 -
5,227.92 2,882.66
APPROPRIATIONS
Proposed dividend 304.18 270.06
Dividend Tax 49.35 45.90
Dividend for 2009-10 in respect of Foreign Currency Convertible Bonds
converted during the year (inclusive of dividend tax of `0.51 crore)
9.85 -
Dividend to shareholders of erstwhile Sesa Industries Limited on
amalgamation (inclusive of dividend tax of `1.83 crore)
12.88 -
General reserve 2,500.00 1,600.00
2,876.26 1,915.96
Surplus carried to reserves and surplus 2,351.66 966.70
Earnings per share - Basic (Refer Note No. 15 of Schedule 19) 49.17 32.41
- Diluted (Refer Note No. 15 of Schedule 19) 48.17 31.62
Nominal value per share 1.00 1.00
Notes to accounts 19
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
108
Consolidated Cash Flow Statement
For the year ended 31st March, 2011
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net pro?t before tax 5,559.69 3,444.59
Adjustments for:
Depreciation 96.38 74.50
Interest / dividend (net) (432.29) (170.13)
(Pro?t) / loss on sale of ?xed assets (net) (0.86) (0.18)
(Pro?t) / loss on redemption of mutual fund investments (net) (62.16) (75.30)
Provision for doubtful debts 0.07 0.02
Provision for doubtful debts written back - (0.03)
Provision for doubtful advances 0.12 0.50
Provision for claim under litigation - 9.03
Assets written of - 0.09
Unrealised exchange (gain) / loss 44.01 (126.54)
Operating pro?t before working capital changes 5,204.96 3,156.55
Adjustments for:
Trade and other receivables (443.93) (39.41)
Inventories (235.43) (160.96)
Trade payables 375.64 379.49
Cash generated from operations 4,901.24 3,335.67
Taxes paid (1,367.76) (764.35)
NET CASH FROM OPERATING ACTIVITIES 3,533.48 2,571.32
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of ?xed assets (988.69) (149.52)
Proceeds from sale of ?xed assets 4.55 0.57
Acquisition of subsidiaries - (1,713.24)
(Purchase) / redemption of current investments (4,130.86) (1,364.30)
Bank deposits having original maturity over three months 1,654.41 (2,350.01)
Interest received 198.82 103.38
Dividend received 297.05 79.00
NET CASH USED IN INVESTING ACTIVITIES (2,964.72) (5,394.12)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
109
Particulars Year ended
31st March, 2011
Year ended
31st March, 2010
` in crore ` in crore
C. CASH FLOW FROM FINANCING ACTIVITIES :
Issue of equity shares - 537.24
Issue of Foreign Currency Convertible Bonds - 2,380.58
Inter Corporate Deposits (26.71) -
Loans repaid (6.63) (23.02)
Interest paid (58.25) (6.25)
Dividend paid and dividend tax (328.14) (206.44)
NET CASH (USED IN) / FROM FINANCING ACTIVITIES (419.73) 2,682.11
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 149.03 (140.69)
Cash and cash equivalents - opening balance 33.69 14.07
- on acquisition - 160.31
Cash and cash equivalents - closing balance 182.72 33.69
Footnotes:
1. Cash and bank balances as per Schedule 10 897.02 2,391.84
Less: Bank deposits having original maturity over three months (699.31) (2,353.71)
Less: Unpaid dividend account (14.99) (4.44)
Cash and cash equivalents as per the cash ?ow statement 182.72 33.69
2. Equity shares issued to minority interest in Sesa Industries Limited consequent to its amalgamation with the Parent have not
been considered in the cash ?ow statement, being a non cash transaction (Refer Note No. 2 of Schedule 19).
3. Foreign Currency Convertible Bonds converted into equity shares have not been considered in the cash ?ow statement, being
a non cash transaction (Refer Note No. 7 of Schedule 19).
4. Figures in brackets represent out?ows.
5. For notes to accounts refer Schedule 19.
Per our report of even date attached
For Deloitte Haskins & Sells
Chartered Accountants
For and on behalf of the Board of Directors
Rajesh K. Hiranandani
Partner
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Place: Panaji - Goa
Dated: 25th April, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
110
Schedule 1 : Share Capital
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Authorised
1,000,000,000 (Previous year 1,000,000,000) equity shares of `1 each 100.00 100.00
Issued and Subscribed
869,101,423 (Previous year 830,961,802) equity shares of `1 each fully
paid-up
86.91 83.10
Total 86.91 83.10
Out of the above shares:
? 40í,496,480 (Previous year 40í,496,480) shares held by Finsider International Co. Ltd. U.K., the holding Company, a subsidiary of
Vedanta Resources Plc. the ultimate holding company.
? 44,S4S,íS9 (Previous year S9,098,íS9) shares held by West Globe Limited Mauritius, a subsidiary of Vedanta Resources Plc.
? í9,250,000 (Previous year í9,250,000) shares allotted as fully paid-up shares pursuant to a contract without payment being
received in cash, consequent to amalgamation of erstwhile Mingoa Private Limited with the Company with efect from 1-4-1979.
? 685,í89,S00 (Previous year 685,í89,S00) bonus shares allotted as fully paid-up shares pursuant to capitalisation of reserves and
share premium account.
? SS,274,000 (Previous year SS,274,000) shares allotted as fully paid-up shares on a preferential basis to Twinstar Holdings Limited,
a subsidiary of Vedanta Resources Plc.
? S9,í88,í59 (Previous year í0,447,402) shares allotted as fully paid-up shares on conversion of 2,8S2 (Previous year 755) Foreign
Currency Convertible Bonds.
? 9,S98,864 shares allotted during the year as fully paid-up shares to shareholders of the erstwhile Sesa Industries Limited for
consideration other than cash, pursuant to the Scheme of amalgamation. (Refer Note No. 2 of Schedule 19)
Schedule 2 : Reserves and Surplus
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Share premium account
As per last balance sheet 875.34 -
Add: Amount received on preferential allotment of equity shares - 533.91
Add: Amount received upon conversion of Foreign Currency
Convertible Bonds into equity shares
994.08 361.36
Less: Expenses on issue of Foreign Currency Convertible Bonds - 19.93
1,869.42 875.34
Capital reserve
As per last balance sheet 0.25 0.25
Capital reserve on consolidation
As per last balance sheet - -
Add: Arising on acquisition of minority interest consequent to
amalgamation of Sesa Industries Limited with the Parent
(Refer Note No. 2 of Schedule 19)
9.87 -
9.87 -
General reserve
As per last balance sheet 5,992.32 4,392.32
Add: Transfer from pro?t and loss account 2,500.00 1,600.00
8,492.32 5,992.32
Hedging reserve
As per last balance sheet - (9.08)
Add: Amount adjusted on settlement of hedge contracts - 13.76
Less: Deferred tax impact on contracts - (4.68)
- -
Pro?t and Loss Account
As per annexed account 2,351.66 966.70
Total 12,723.52 7,834.61
Schedules Annexed to and Forming Part of the Balance Sheet
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
111
Schedule 3 : Secured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
From banks
Cash credit 3.31 9.61
(Secured against hypothecation of ore stocks, consumables stores,
book debts and lodgement of letter of credit)
Term loan 18.75 25.28
(Secured by speci?c charge on transfer vessel)
[Due within a year `6.25 crore (Previous year `6.32 crore)]
From others
Term Loan 9.38 9.48
(Secured against future export proceeds)
[Due within a year `9.38 crore (Previous year `Nil)]
Total 31.44 44.37
Schedule 4 : Unsecured Loans
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Foreign Currency Convertible Bonds 968.01 1,916.19
(Refer Note No. 7 of Schedule 19)
Total 968.01 1,916.19
Schedule 5 : Deferred Tax Liability
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Deferred tax liabilities
on temporary timing diferences 81.09 83.39
- in respect of depreciation allowance
Deferred tax assets
- in respect of compensated absence 6.10 6.04
- others 6.78 2.33
12.88 8.37
Net deferred tax liability 68.21 75.02
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
112
S
c
h
e
d
u
l
e
s
A
n
n
e
x
e
d
t
o
a
n
d
F
o
r
m
i
n
g
P
a
r
t
o
f
t
h
e
B
a
l
a
n
c
e
S
h
e
e
t
(
c
o
n
t
i
n
u
e
d
)
S
c
h
e
d
u
l
e
6
:
F
i
x
e
d
A
s
s
e
t
s
P
a
r
t
i
c
u
l
a
r
s
O
r
i
g
i
n
a
l
C
o
s
t
D
e
p
r
e
c
i
a
t
i
o
n
/
A
m
o
r
t
i
s
a
t
i
o
n
N
e
t
V
a
l
u
e
O
p
e
n
i
n
g
a
s
a
t
1
s
t
A
p
r
i
l
,
2
0
1
0
A
d
d
i
t
i
o
n
O
n
D
e
d
u
c
t
i
o
n
s
C
l
o
s
i
n
g
a
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
0
F
o
r
t
h
e
y
e
a
r
O
n
D
e
d
u
c
t
i
o
n
s
U
p
t
o
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
1
A
s
a
t
3
1
s
t
M
a
r
c
h
,
2
0
1
0
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
`
i
n
c
r
o
r
e
T
a
n
g
i
b
l
e
A
s
s
e
t
s
M
i
n
i
n
g
l
e
a
s
e
s
2
8
.
7
0
-
-
2
8
.
7
0
1
6
.
5
9
4
.
6
0
-
2
1
.
1
9
7
.
5
1
1
2
.
1
1
M
i
n
i
n
g
c
o
n
c
e
s
s
i
o
n
s
0
.
6
8
-
-
0
.
6
8
0
.
6
5
-
-
0
.
6
5
0
.
0
3
0
.
0
3
L
a
n
d
p
l
o
t
s
(
N
o
t
e
N
o
.
1
)
3
0
.
4
7
1
5
4
.
1
8
-
1
8
4
.
6
5
0
.
0
5
0
.
0
3
-
0
.
0
8
1
8
4
.
5
7
3
0
.
4
2
R
o
a
d
a
n
d
b
u
n
d
e
r
s
7
.
2
0
2
.
8
7
-
1
0
.
0
7
2
.
0
4
0
.
1
7
-
2
.
2
1
7
.
8
6
5
.
1
6
B
u
i
l
d
i
n
g
s
6
4
.
8
4
6
.
3
8
-
7
1
.
2
2
1
4
.
4
0
1
.
7
6
-
1
6
.
1
6
5
5
.
0
6
5
0
.
4
4
P
l
a
n
t
a
n
d
m
a
c
h
i
n
e
r
y
8
8
9
.
7
5
1
3
6
.
7
5
2
2
.
8
3
1
,
0
0
3
.
6
7
4
2
1
.
7
1
7
4
.
3
4
1
9
.
2
9
4
7
6
.
7
6
5
2
6
.
9
1
4
6
8
.
0
4
A
i
r
c
r
a
f
t
(
N
o
t
e
N
o
.
2
)
1
.
4
6
-
-
1
.
4
6
0
.
3
8
0
.
0
8
-
0
.
4
6
1
.
0
0
1
.
0
8
V
e
h
i
c
l
e
s
1
8
.
0
1
4
.
0
2
2
.
0
2
2
0
.
0
1
9
.
7
6
2
.
6
8
1
.
8
6
1
0
.
5
8
9
.
4
3
8
.
2
5
R
i
v
e
r
?
e
e
t
6
2
.
9
6
1
3
.
5
6
-
7
6
.
5
2
2
1
.
2
9
2
.
0
6
-
2
3
.
3
5
5
3
.
1
7
4
1
.
6
7
S
h
i
p
(
N
o
t
e
N
o
.
3
)
1
6
0
.
8
8
0
.
6
8
0
.
0
1
1
6
1
.
5
5
8
2
.
1
1
8
.
1
0
0
.
0
1
9
0
.
2
0
7
1
.
3
5
7
8
.
7
7
F
u
r
n
i
t
u
r
e
a
n
d
?
t
t
i
n
g
s
1
1
.
5
5
3
.
9
6
0
.
1
1
1
5
.
4
0
3
.
9
5
1
.
2
0
0
.
1
1
5
.
0
4
1
0
.
3
6
7
.
6
0
I
n
t
a
n
g
i
b
l
e
A
s
s
e
t
s
G
o
o
d
w
i
l
l
o
n
c
o
n
s
o
l
i
d
a
t
i
o
n
1
,
4
7
4
.
5
4
-
-
1
,
4
7
4
.
5
4
1
.
1
5
-
-
1
.
1
5
1
,
4
7
3
.
3
9
1
,
4
7
3
.
3
9
C
o
m
p
u
t
e
r
s
o
f
t
w
a
r
e
-
1
6
.
3
6
-
1
6
.
3
6
-
1
.
3
6
-
1
.
3
6
1
5
.
0
0
-
T
o
t
a
l
2
,
7
5
1
.
0
4
3
3
8
.
7
6
2
4
.
9
7
3
,
0
6
4
.
8
3
5
7
4
.
0
8
9
6
.
3
8
2
1
.
2
7
6
4
9
.
1
9
2
,
4
1
5
.
6
4
2
,
1
7
6
.
9
6
P
r
e
v
i
o
u
s
y
e
a
r
8
8
6
.
3
4
1
,
8
8
1
.
7
2
1
7
.
0
2
2
,
7
5
1
.
0
4
3
4
2
.
2
4
2
4
8
.
3
4
1
6
.
5
0
5
7
4
.
0
8
2
,
1
7
6
.
9
6
C
a
p
i
t
a
l
w
o
r
k
-
i
n
-
p
r
o
g
r
e
s
s
C
o
n
s
t
r
u
c
t
i
o
n
s
i
n
p
r
o
g
r
e
s
s
(
N
o
t
e
N
o
.
4
)
5
4
7
.
9
1
3
7
.
8
9
C
a
p
i
t
a
l
a
d
v
a
n
c
e
s
1
8
0
.
7
5
4
0
.
8
5
T
o
t
a
l
7
2
8
.
6
6
7
8
.
7
4
N
o
t
e
s
:
1
.
L
a
n
d
P
l
o
t
s
i
n
c
l
u
d
e
u
n
d
e
r
P
e
r
p
e
t
u
a
l
L
e
a
s
e
`
1
.
9
9
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
1
.
9
9
c
r
o
r
e
)
2
.
R
e
p
r
e
s
e
n
t
s
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
P
6
8
C
A
i
r
c
r
a
f
t
.
3
.
I
n
c
l
u
d
e
s
`
3
6
.
4
9
c
r
o
r
e
,
b
e
i
n
g
5
0
%
u
n
d
i
v
i
d
e
d
i
n
t
e
r
e
s
t
i
n
a
T
r
a
n
s
h
i
p
p
e
r
V
e
s
s
e
l
n
a
m
e
d
“
G
o
a
n
P
r
i
d
e
”
.
4
.
A
m
o
u
n
t
i
n
c
l
u
d
e
s
`
4
.
5
5
c
r
o
r
e
(
P
r
e
v
i
o
u
s
y
e
a
r
`
0
.
1
7
c
r
o
r
e
)
i
n
t
e
r
e
s
t
c
a
p
i
t
a
l
i
s
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
.
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
113
Schedule 7 : Investments
Particulars
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Current Investments (at lower of cost and market value)
Non-trade, unquoted:
In Mutual Funds
Birla Floating Rate Fund - Long Term - Institutional - Growth - 100.00
Birla Interval Income Fund - Institutional Quarterly Interval Plan - Series II - Dividend - 200.00
Birla Interval Income Fund - Institutional Quarterly Interval Plan - Series I - Dividend - 100.00
Birla Short Term FMP Series 4 - Dividend Payout 125.00 -
Birla Short Term Opportunity Fund - Dividend Payout 509.90 -
Birla Sun Life Fixed Term Plan - Institutional Series CD ( 370 Days ) - Growth Option 50.00 50.00
Birla Sun Life Cash Plus Fund 40.11 -
Birla Sun Life Savings Fund - Institutional Growth - 82.06
Birla Sunlife Ultra Short Term Fund - Institutional - Growth 340.09 -
Canara Robeco Floating rate ST- Growth 88.04 -
Canara Robeco Treasury Advantage Super Institutional Fund - Dividend 40.00 -
Canara Robeco Treasury Advantage Super Institutional Fund - Growth Option 396.27 51.70
DSP BlackRock FMP - 3M Series 27 - Dividend 100.00 -
DSP BlackRock Money Manager Fund - Institutional - Growth 202.72 -
HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Growth 41.55 298.26
HDFC Floating Rate Income Fund - Short Term Plan - Whole - Growth 120.33 -
HDFC FMP 370 Days 2010 (2) - Dividend Payout 35.00 -
HDFC FMP 370 Days June 2010 (1) - Growth 25.00 -
HDFC FMP 370 Days June 2010 (2) - Dividend Payout 35.00 -
HDFC Quarterly Interval Fund - Plan C - Dividend Payout - 65.00
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth Option - 20.00
ICICI Prudential MF - Flexible Income Plan - Institutional - Daily Dividend 150.02 -
ICICI Prudential - Flexible Income Plan Premium - Growth 64.56 68.22
ICICI Prudential Floating Rate - Plan D - Growth 172.11 -
ICICI Prudential - Ultra Short Term Plan Super Premium - Growth Option - 208.92
ICICI Prudential FMP Series 51 - 1 Year Plan B - Growth Option 20.00 20.00
ICICI Prudential FMP Series 52 - 1 Year Plan A - Growth 20.00 -
ICICI Prudential Interval Fund II - Quarterly Interval Plan Institutional - Dividend 50.00 -
ICICI Prudential Interval V Monthly Interval Plan - Dividend Payout 52.00 -
ICICI Prudential Medium Term Premium Plus - Dividend Payout - 150.00
ICICI Prudential Banking and PSU Debt Fund - Daily Dividend 238.19 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Reinvested 788.55 -
ICICI Prudential Blended Plan B - Institutional Plan - Dividend Payout 100.01 -
IDFC FMP - Half Yearly Series 9 - Plan A - Dividend Payout - 100.00
IDFC Money Manager Fund - Investment Plan - Institutional Plan B - Growth Option 200.00 363.38
IDFC Savings Advantage Fund - Plan A - Daily Dividend 401.95 -
IDFC Fixed Maturity Monthly Series - 30 - Dividend 275.00 -
Kotak Floater Long Term - Growth 413.14 254.20
Kotak FMP íSM Series 5 - Growth - 50.00
Kotak FMP S70 Days - Series í - Growth Option - 50.00
Kotak FMP S70 Days - Series S - Growth Option 50.00 50.00
Kotak FMP Ouarterly Interval Plan - Series S - Dividend Payout Option - 100.00
Kotak FMP Ouarterly Interval Plan - Series 6 - Dividend Payout Option - 250.00
Kotak FMP Ouarterly Interval Plan - Series 9 - Dividend Payout Option 102.52 -
Kotak FMP Ouarterly Interval Plan - Series í0 - Dividend Payout Option 90.00 -
PNB Principal Term Equity Fund 3 Plan Series II - Growth Plan - 0.05
Reliance Medium Term Fund - Retail Plan - Growth Option - 100.97
Reliance Fixed Horizon Fund - XIII - Series 3 - Super Institutional - Growth Option - 60.00
Reliance Fixed Horizon Fund - XIV - Series 5 - Super Institutional - Growth Option 50.00 50.00
Reliance Fixed Horizon Fund - XIV - Series 1 - Super Institutional - Growth Option 100.00 100.00
Reliance Fixed Horizon Fund - XV - Series 4 - Growth Option 50.00 -
Reliance Fixed Horizon Fund - XV - Series 5 - Growth Option 25.00 -
Reliance Fixed Horizon Fund - XV - Series 6 - Dividend Option 200.00 -
Reliance Fixed Horizon Fund - XII - Series 4 - Super Institutional Growth - 300.00
Reliance Monthly Interval Fund - Series I - Institutional - Dividend Payout Option 242.01 -
Reliance Monthly Interval Fund - Series II - Institutional - Dividend Payout Option 296.02 100.00
Reliance Mutual Fund - Money Manager Fund - Dividend 123.14 -
Reliance Quarterly Interval Fund - Series I - Dividend 204.01 -
Religare FMP - Series II - Plan F ( 13 Months ) - Growth Option 100.00 100.00
Religare FMP - Series II - Plan C ( 15 Months ) - Growth Option 100.00 100.00
Religare FMP - Series II A ( 13 Months ) - Growth Option 100.00 100.00
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
114
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Particulars
As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Religare FMP - Series II B ( 15 Months ) - Growth Option 170.00 170.00
Religare FMP - Series III - Plan C (370 Days ) - Dividend 50.00 -
Religare FMP - Series IlI A ( 12 Months ) - Growth Option 50.00 -
SBI Debt Fund Series - 13 Months - 10 - Institutional Growth - 150.00
SBI Debt Fund Series - 370 Days - Growth Option - 90.00
SBI - Short Horizon Debt Fund - Ultra Short Term Plan - Institutional Growth Option 126.69 83.72
SBI Premier Liquid Fund - Super Institutional - Daily Dividend 74.14 -
SBI SDFS - 370 Days 90.00
Tata Fixed Maturity Plan - Series 26 - Scheme A - Growth Option 20.00 20.00
Tata Floater Fund - Growth Option 564.00 8.32
UTI - Fixed Income Interval Fund - Monthly Interval Plan I - Dividend 150.00 -
UTI - Fixed Income Interval Fund - Monthly Interval Plan II - Dividend 114.99 -
UTI - Floating Rate Fund - Short Term Plan - Institutional - Growth 437.64 -
UTI - Treasury Advantage Fund - Institional Plan - Growth 25.05 -
UTI - Short Term Income Fund - Institutional Income Option - Reinvestment - 200.00
UTI - Fixed Income Interval Fund - Series II - Quarterly Interval Plan V - Institutional
Dividend Plan - Payout
- 150.00
UTI - FMP - Yearly Series ( YFMP 11/09 ) - Institutional Growth Option - 50.00
8,799.75 4,564.80
Long-term Investments (at cost less provision for dimunition):
Non-trade, unquoted shares:
In Co-operative societies:
Sesa Ghor Premises Holders' Maintenance Society Limited
400 equity shares of `10 each fully paid-up [`4,000 (Previous year `4,000)]
- -
Sesa Goa Sirsaim Employees' Consumers Co-operative Society Limited
200 equity shares of `10 each fully paid-up [`2,000 (Previous year `2,000)]
- -
Sesa Goa Sanquelim Employees' Consumers Co-operative Society Limited
230 equity shares of `10 each fully paid-up [`2,300 (Previous year `2,300)]
- -
Sesa Goa Sonshi Employees' Consumers Co-operative Society Limited
468 equity shares of `10 each fully paid-up [`4,680 (Previous year `4,680)]
- -
Sesa Goa Codli Employees' Consumers Co-operative Society Limited
450 equity shares of `10 each fully paid-up [`4,500 (Previous year `4,500)]
- -
Sesa Goa Shipyard Employees' Consumers Co-operative Society Limited
500 equity shares of `10 each fully paid-up [`5,000 (Previous year `5,000)]
- -
V.S. Dempo Surla Mine Staf Co-operative Credit Society Ltd.
250 equity shares of `10 each fully paid-up [`2,500 (Previous year `2,500)]
- -
V.S. Dempo Surla Mine Staf Consumer Co-operative Society Ltd.
250 equity shares of `10 each fully paid-up [`2,500 (Previous year `2,500)]
- -
The Mapusa Urban Cooperative Bank Limited
40 equity shares of `25 each fully paid-up [`1,000 (Previous year `1,000)]
- -
In other companies:
Goa Shipyard Limited
62,707 equity shares of `10 each fully paid-up (including 34,837 bonus shares)
0.03 0.03
Goa Infrastructure Development Company Private Limited
5,000 equity shares of `100 each fully paid-up.
0.01 0.01
Goa Maritime Private Limited
5,000 equity shares of `10 each fully paid-up.
0.01 0.01
Total Cost 8,799.80 4,564.85
Provision for dimunition in value of investments [`5,000 (Previous year `5,000)] - -
Total 8,799.80 4,564.85
Notes:
1. Aggregate amount of mutual fund investments at net asset value 8,891.27 4,624.67
2. Aggregate amount of unquoted investments at cost [including mutual funds
of `8,799.75 crore (Previous year `4,564.80 crore)]
8,799.80 4,564.85
3. Investments on lien towards purchase of shares in Cairn India Limited
(Refer Note No. 3 of Schedule 19).
1,674.67 -
Schedule 7 : Investments (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
115
Schedule 8 : Inventories
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Stocks of (at lower of cost and net realisable value):
Raw material [including goods in transit `116.32 crore
(Previous year `Nil)]
294.84 113.94
Finished goods
Iron Ore 313.80 315.61
Metallurgical Coke 35.14 10.66
Pig Iron 38.58 12.38
387.52 338.65
Work-in-progress 0.32 1.74
Consumables stores and spares [including goods in transit `0.13
crore (Previous year `0.11 crore)]
61.07 48.21
Total 743.75 502.54
Inventories are net of unrealised pro?ts on intragroup sales.
Schedule 9 : Sundry Debtors
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Debts outstanding for a period exceeding six months
Unsecured and considered good 29.84 39.56
Considered doubtful 2.74 2.68
32.58 42.24
Other debts
Unsecured and considered good 653.18 298.56
685.76 340.80
Less: Provision for doubtful debts 2.74 2.68
Total 683.02 338.12
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
116
Schedules Annexed to and Forming Part of the Balance Sheet
(continued)
Schedule 10 : Cash and Bank Balances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Cash on hand [including cheques and demand drafts on hand
`3.27 crore (Previous year `2.51 crore)] 3.38 2.61
Demand drafts in transit 4.02 6.76
Balances with scheduled banks:
On current account (Refer Note No. 2) 175.19 24.12
On deposit account [(Including on lien `0.86 crore
(Previous year `0.85 crore)] 699.31 2,353.71
On EEFC account 0.05 0.12
On unpaid dividend account 14.99 4.44
889.54 2,382.39
Balances with other banks:
On current account (Refer Note No. 1) 0.08 0.08
Total 897.02 2,391.84
Notes:
1.
Name of other banks Balance
` in crore
Max. balance
at any time
during the
year
` in crore
Balance
` in crore
Max. balance
at any time
during the
year
` in crore
Bank of Shanghai, China 0.08 0.18 0.08 0.15
2. Balance in current account includes `140.16 crore, held in Escrow account towards purchase of shares in Cairn India Limited
(Refer Note No. 3 of Schedule 19).
Schedule 11 : Loans and Advances
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Unsecured considered good unless otherwise stated
Advances recoverable in cash or in kind or for value to be received
Considered good 264.60 118.28
Considered doubtful 0.62 0.50
Less: provision for doubtful advances 0.62 0.50
264.60 118.28
Intercorporate deposits (Refer Note No. 16 of Schedule 19 1,026.71 1,000.00
Balances with port trusts, customs, excise authorities etc. 2.01 3.48
Loans and advances to staf 1.51 1.47
Prepaid expenses 13.71 11.57
Deposits 13.11 10.72
Total 1,321.65 1,145.52
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
117
Schedule 12 : Current Liabilities
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sundry creditors
Due to micro and small enterprises 0.85 0.60
Due to others * 1,168.31 726.22
1,169.16 726.82
Advances from customers 22.93 19.89
Unclaimed dividend # 14.99 4.44
Unclaimed matured deposits # 0.05 0.02
Unclaimed interest on deposits # 0.01 0.01
Other liabilities 62.10 33.46
Interest accrued but not due on loans 25.40 45.54
Total 1,294.64 830.18
* Includes `1.16 crore due to directors (Previous year `0.96 crore)
# There are no amounts due and outstanding as at balance sheet date to be credited to Investor Education and Protection Fund.
Schedule 13 : Provisions
Particulars As at 31st March, 2011 As at 31st March, 2010
` in crore ` in crore ` in crore ` in crore
For income tax [net of advance tax `3,812.57 crore (Previous year
`2,294.65 crore)]
49.98 73.68
For proposed dividend 304.18 270.06
For dividend tax 49.35 45.90
For gratuity 5.19 3.72
For compensated absence 22.25 18.05
Total 430.95 411.41
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
118
Schedules Annexed to and Forming Part of the
Pro?t and Loss Account
Schedule 14 : Services and Other Proceeds
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Sale of material 8.59 5.47
Sale of gases 3.11 2.89
Sale of slag 3.77 4.42
Technology licence fee - 3.86
Sale of carbon credits 4.44 -
Barge hire charges [Tax deducted at source `0.31 crore (Previous year
`0.23 crore)]
15.58 0.08
Proceeds from various services [Tax deducted at source `0.44 crore
(Previous year `0.63 crore)]
6.96 18.04
Repairs of vessels by shipyard [Tax deducted at source `0.05 crore
(Previous year `Nil)]
2.61 -
Shipping agency fees [Tax deducted at source `Nil (Previous year
`0.01)]
- 0.08
Diference in rate of exchange (net) 14.59 20.40
Total 59.65 55.24
Schedule 15 : Miscellaneous Income
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on Intercorporate deposits [Tax deducted at source `9.01 crore
(Previous year `14.18 crore)]
91.03 95.21
Interest on Fixed deposits [Tax deducted at source `10.85 crore
(Previous year `0.68)]
82.15 46.21
Interest others 0.18 1.43
173.36 142.85
Dividends
On current investments (Non trade) 296.99 78.96
On long term investments (Non trade) 0.06 0.04
297.05 79.00
Pro?t on sale of current investments (net) 62.16 75.30
Pro?t on sale of assets (net) 0.86 0.18
Diference in rate of exchange on Foreign Currency Convertible Bonds - 121.91
Excess provision written back - 2.21
Provision for doubtful debts written back 0.42 0.03
Other receipts [Tax deducted at source `0.14 crore (Previous year `0.25
crore)]
6.04 4.49
Total 539.89 425.97
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
119
Schedule 16 : Production and Operational Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Increase/decrease in stock of ?nished goods and work-in-progress
Opening stock
Iron ore 315.61 131.78
Metallurgical coke 10.66 11.67
Pig iron 12.38 9.71
Work-in-progress 1.74 1.63
340.39 154.79
On acquisition - 64.48
340.39 219.27
Less: Closing stock
Iron ore 313.80 315.61
Metallurgical coke 35.14 10.66
Pig Iron 38.58 12.38
Work-in-progress 0.32 1.74
387.84 340.39
(47.45) (121.12)
Excise duty on stock of ?nished goods 3.75 0.20
Consumption of raw materials 396.15 345.86
Consumption of stores [includes cost of supplies to contractors of
the value of `69.89 crore (Previous year `61.42 crore)]
296.31 243.68
Purchase of ore 509.12 309.56
Personnel: (Refer Note No. 13 of Schedule 19)
Salaries, wages, bonus and allowances 127.96 111.18
Contributions to provident and other funds 6.92 5.26
Contributions to gratuity and annuity funds 7.96 4.07
Staf welfare expenses 13.97 8.84
156.81 129.35
Repairs and maintenance (Refer Note No. 10 of Schedule 19)
Plant and machinery 35.57 23.71
Buildings 17.26 3.29
Others 29.81 9.39
82.64 36.39
Contractors for hired trucks and other services 740.55 664.40
Hire charges of barges 80.74 81.77
Wharfage, tonnage, handling & shipping expenses 111.15 153.44
Railway freight 274.38 281.01
Rent 5.38 4.03
Export duty 661.98 147.58
Royalties 330.41 160.72
Rates and taxes 5.00 8.84
Insurance 15.60 8.89
Electricity and water charges 20.52 16.86
Demurrage over despatch 176.54 111.16
Commission and service charges on sales 2.24 11.58
Analysis of ore 5.06 7.17
Maintenance of ofces 0.88 0.46
Printing and stationery 1.03 0.70
Travelling and representation expenses 9.08 3.85
Maintenance of vehicles 0.45 0.38
General expenses 54.17 43.61
Provision for mine closure expenses (Refer Note No. 11 Schedule 19) 1.06 0.18
3,893.55 2,650.55
Less: Extraction and processing costs recovered 27.34 34.69
Total 3,866.21 2,615.86
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
120
Schedule 17 : Administration Expenses
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Personnel: (Refer Note. No. 13 of Schedule 19)
Salaries, wages, bonus, allowances and commission 43.92 35.69
Contributions to provident and other funds 1.03 0.77
Contributions to gratuity and annuity funds 2.02 1.29
Staf welfare expenses 3.30 1.76
50.27 39.51
Maintenance of ofces and equipment 1.90 1.07
Printing and stationery 1.05 0.85
Postage, telephone, cables and telex charges 1.37 1.61
Fees to auditors
Audit fees 0.45 0.41
Other certi?cate fees 0.49 0.46
Reimbursement of expenses 0.05 0.07
0.99 0.94
Sitting fees and commission to non-wholetime directors 0.49 0.32
Travelling expenses [Includes travelling expenses of directors
`0.67 crore (Previous year `0.61 crore)]
4.30 4.60
Professional and legal charges 52.93 21.26
Maintenance of vehicles 2.18 1.91
Donations and contributions 7.49 6.71
Provision for doubtful debts 0.07 0.02
Bad debts 0.03 -
Provision for doubtful advances 0.12 0.50
Claims under litigation 1.67 9.03
Miscellaneous expenses 7.73 5.47
Total 132.59 93.80
Schedule 18 : Interest and Other Finance Charges
Particulars Year ended 31st March, 2011 Year ended 31st March, 2010
` in crore ` in crore ` in crore ` in crore
Interest on ?xed period loans
On Foreign Currency Convertible Bonds 27.86 45.36
On term loan 0.64 0.85
28.50 46.21
Interest others 7.59 3.66
Diference in rate of exchange on Foreign Currency Convertible Bonds 48.78 -
Discounting charges 2.03 1.85
Other charges 3.24 3.79
Total 90.14 55.51
Schedules Annexed to and Forming Part of the
Pro?t and Loss Account (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
121
Schedule 19 :
1. Signi?cant Accounting Policies
i) Basis of accounting
The consolidated ?nancial statements of Sesa Goa Limited (the “Parent”), its subsidiaries and jointly
controlled entity (the “Group”) have been prepared on accrual basis under historical cost convention to
comply in all material respects with the Generally Accepted Accounting Principles in India and the relevant
provisions of the Companies Act, 1956.
ii) Use of estimates
The presentation of ?nancial statements requires estimates and assumptions to be made that afect the
reported amount of assets and liabilities (including contingent liabilities) on the date of the ?nancial
statements and the reported amount of revenues and expenses during the reporting period. Diference
between the actual results and the estimates are recognised in the period in which the results are known /
materialised.
iii) Principles of consolidation
The consolidated ?nancial information incorporates the results of the Parent, its subsidiaries and its
jointly controlled entity, being the companies that it controls or in respect of which it is in joint control.
This control is normally evidenced when the Company is able to govern another company’s ?nancial
and operating policies so as to bene?t from its activities or where the Company owns, either directly or
indirectly, the majority of another company’s equity voting rights unless in exceptional circumstances it can
be demonstrated that ownership does not constitute control.
The ?nancial statements of the Company and its subsidiaries have been combined on a line by line basis
by adding together like items of assets, liabilities, income and expenses. Interest in the jointly controlled
entity is reported using proportionate consolidation. The ?nancial statements of the subsidiaries and the
jointly controlled entity are prepared for the same reporting year as the Parent, using consistent accounting
policies to the extent practicable. Adjustments are made to align any dissimilar accounting policies that may
exist where practicable. All intercompany balances and transactions, including unrealised pro?ts arising
from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs
cannot be recovered.
Particulars of subsidiaries and the jointly controlled entity are given below:
Name of Company Country of
Incorporation
% of voting
power held on
31.3.2011
% of voting
power held on
31.3.2010
Sesa Industries Limited (“SIL”)
*(Amalgamated during the year with the Parent, Refer Note No. 2)
India * 88.251
Sesa Resources Limited (“SRL” formerly V. S. Dempo & Company
Limited)
India 100 100 #
Sesa Mining Corporation Limited (“SMCL” formerly Dempo Mining
Corporation Limited)
India 100 100 #
Goa Maritime Private Limited (“GMPL”) India 50 50 #
# with efect from 12th June, 2009
For information relating to Subsidiaries as required under General Circular No. 2/2011 dated 8th February,
2011 issued by the Ministry of Corporate Afairs, Government of India, refer Annexure (page 104).
The assets, liabilities, income and expenses of GMPL are not material to the ?nancial statements of the
Group taken as a whole. Therefore, information in that respect required by Accounting Standard (AS 27)
on Financial Reporting of Interests in Joint Ventures has not been furnished and also the share of pro?ts /
losses of GMPL are not consolidated.
Notes Forming Part of the Accounts
For the year ended 31st March, 2011
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
122
iv) Revenue recognition
Revenue is recognised when signi?cant risks and rewards of ownership of the goods sold are transferred to
the customer and the commodity has been delivered to the shipping agent/customer.
Revenue represents the invoice value of goods and services provided to third parties net of discounts,
sales taxes/value added taxes, and is after considering adjustments on ?nal invoices (arising on analysis
variances) received upto the year end.
Revenue in respect of contracts for services is recognised on completion of services.
Dividend income is recognised when the right to receive dividend is established.
Interest income is recognised on a time proportion basis by reference to the principal outstanding and at
the interest rate applicable.
v) Employee bene?ts
a. Provident fund: The Group’s contribution to the recognised provident fund, pension fund and
employees' deposit linked insurance scheme paid / payable during the year is debited to the Pro?t and
Loss Account.
b. Gratuity fund: The Group accounts for the net actuarial liability of its obligations for gratuity bene?ts
based on an independent actuarial valuation determined on the basis of the projected unit credit
method carried as at the year end. Based on the above determined obligation, the Group makes
contribution to funds managed by insurance companies. Actuarial gains and losses are immediately
recognised in the Pro?t and Loss Account.
c. Annuity fund: The Group has a de?ned contribution plan for certain categories of employees, wherein
it annually contributes a predetermined proportion of employee’s salary to an insurance company
which administers the fund. The Group recognises such contributions as an expense over the period of
services rendered.
d. Compensated absence: The liability in respect of compensated absence for employees is determined
on the basis of an independent actuarial valuation carried out at the end of the year and diferential
liability recognised as expense in the Pro?t and Loss Account.
vi) Investments
Long term investments are stated at cost less provision for dimunition. Provision for dimunition is made to
recognise decline (other than temporary) in the value of investments, if any. Current investments are stated
at cost or market value, whichever is lower.
vii) Inventories
Raw material, consumable stores and spares are held for use in production and are valued at cost
determined on the basis of weighted average method.
Work-in-progress, stock of iron ore, metallurgical coke and pig iron are valued at lower of cost or net
realisable value. Cost includes raw material and proportion of ?xed and variable overheads.
viii) Foreign currency transactions
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction.
Year end balance of monetary assets and liabilities are translated at the year end rates. Exchange diference
arising on restatement or settlement is charged to the Pro?t and Loss Account.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
123
ix) Foreign currency forward contracts
The Group enters into forward derivative ?nancial instruments to hedge its exposure to foreign currency.
The Group does not hold derivative ?nancial instruments for speculative purposes. Derivative ?nancial
instruments are initially recorded at their fair value on the date of the derivative transaction and are re-
measured at their fair value at subsequent balance sheet dates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
the Pro?t and Loss Account.
Changes in the fair value of derivatives that are designated and qualify as cash ?ow hedges are recorded in
Reserves and Surplus. Amount deferred to Reserves and Surplus are recycled in the Pro?t and Loss Account
in the period when the hedged item is recognised in the Pro?t and Loss Account.
Derivative ?nancial instruments that do not qualify for hedge accounting are marked to market at the
balance sheet date and gains or losses are recognised in the Pro?t and Loss Account immediately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised,
or no longer quali?es for hedge accounting. Any cumulative gain or loss on the hedging instrument
recognised in Reserves and Surplus is kept in Reserves and Surplus until the forecast transaction occurs. If a
hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in Reserves
and Surplus is transferred to the Pro?t and Loss Account for the year.
x) Fixed assets
Fixed assets except for the leasehold mine at Karnataka, are stated at their original cost along with
taxes, duties (net of Modvat/Cenvat availed, if any), freight and interest on borrowings up to the date of
commissioning for operation, attributable to acquisition/construction of the concerned assets.
The iron ore reserves of the leased mine located in Karnataka were valued and shown as ?xed assets by
erstwhile A. Narrain Mines Ltd. (ANML). The Group continues to show the value of the said mining lease as
?xed assets after merger of said ANML. The Group’s other mining leases having ore reserves, however, are
not valued. Amounts paid to Government authorities towards renewal of forest clearances in respect of
owned mining leases are capitalised as a part of mining leases.
xi) Borrowing costs
Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of
time are capitalised. All other borrowing costs including exchange diferences on foreign currency loans are
charged to revenue.
xii) Depreciation
Depreciation except on the leasehold mine at Karnataka, and in respect of vehicles, furniture, computers
and railway wagons is provided for on Straight Line Method (SLM) at the rates speci?ed in Schedule XIV of
the Companies Act, 1956. In respect of vehicles, furniture and computers depreciation has been charged
on SLM method at annual rate of 20%, 10% and 30% respectively to bring it in line with the useful life of the
assets. The cost of railway wagons procured under Wagon Investment Scheme (WIS) is being depreciated at
the rate of 10% per annum on a Straight Line basis. The value of mining leases capitalised are amortised in
proportion to actual quantity of ore extracted therefrom. Amounts paid towards renewal of forest clearances
in respect of owned mining lease are amortised over the operating period of the lease. Fixed assets costing
less than `5,000 are wholly depreciated in the year of acquisition. Expenses on implementation of Enterprise
Resource Planning–SAP are amortised over thirty-six months.
Depreciation has been charged from the month of the date of purchase in the case of acquisitions made
during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
124
xiii) Impairment of assets
The carrying amounts of ?xed assets are reviewed for impairment, if events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable. If there are indicators of impairment,
an assessment is made to determine whether the assets carrying value exceeds its recoverable amount.
Whenever the carrying value of an asset exceeds recoverable amount, impairment is charged to the Pro?t
and Loss Account.
xiv) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Group has a present obligation as a result of a past event and it is
probable that an out?ow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions (excluding retirement bene?ts) are not discounted to their present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. A
contingent liability is disclosed unless the possibility of an out?ow of resources embodying economic
bene?ts is remote. A contingent asset is neither recognised nor disclosed.
xv) Segment reporting
The Group is in the business of mining and sale of iron ore and manufacture and sale of metallurgical coke
and pig iron. All of the Group’s establishments are located in one country i.e. India. The revenues from other
than sale of ore, metallurgical coke and pig iron are either incidental to the above three businesses or of
non-recurring nature. Therefore the Group operates in three business segments.
Segment revenue, segment expenses, segment assets and segment liabilities have been identi?ed to
segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses,
assets and liabilities which relate to the Group as a whole and are not allocable to segments on reasonable
basis, have been included under “Unallocated revenue / expenses / assets / liabilities”.
xvi) Taxes on income
The Group’s income taxes include taxes on each entity’s taxable pro?ts, adjustment attributable to earlier
periods and changes in deferred taxes. Valuation of all tax liabilities/receivables are carried at current
amounts and in accordance with enacted tax regulations, rates or in the case of deferred taxes those that
have been substantially enacted.
Deferred tax is calculated to correspond to the tax efect arising when ?nal tax is determined. Deferred
tax corresponds to the net efect of tax on all timing diferences which occur as a result of items being
allowed for income tax purposes during a period diferent from when they were recognised in the ?nancial
statements.
xvii) Accounting for government grants/refunds
Government grants/subsidies and refunds due from Government Authorities are accounted when there is
reasonable certainty of their realisation.
2. Acquisition of minority interest in Sesa Industries Limited consequent to its amalgamation with the Parent:
a) The Honourable Supreme Court of India, by an Order dated 7th February, 2011, approved the Scheme of
Amalgamation (the “Scheme”) of Sesa Industries Limited (engaged in the manufacture and sale of Pig Iron
and hereinafter referred to as SIL) (erstwhile subsidiary of Sesa Goa Limited) with Sesa Goa Limited (the
“Parent”) efective from the appointed date i.e. 1st April, 2005, by setting aside the Order dated 21st February,
2009, passed by the Division Bench of the High Court of Bombay at Goa not sanctioning the Scheme passed
by the Single Bench of the Honourable High Court of Bombay, at Goa vide its Order dated 18th December,
2008. The Scheme has accordingly been given efect to in these ?nancial statements. The efective date of
amalgamation is 14th February, 2011.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
125
b) As a result of the above:
i) 9,398,864 equity shares of `1 each have been issued in the ratio of 20 fully paid equity shares of `1 each
(after adjustment for stock split and bonus shares) in the Parent for 5 fully paid equity shares of `10
each held by the minority shareholders of erstwhile SIL.
ii) the excess of minority interests as of 1st April, 2005 over the face value of shares allotted has been
treated as a capital reserve on consolidation.
iii) the pro?ts for the period subsequent to 1st April, 2005 till 31st March, 2010 has been included in the
balance in Pro?t and Loss Account.
iv) dividend on the aforesaid 9,398,864 equity shares of `1 each amounting to `12.88 crore has been paid
to the minority shareholders of erstwhile SIL for the ?nancial years from 31st March, 2006 to 31st
March, 2010 at the rates declared by the Parent in the relevant years. The aforesaid amount of `12.88
crore includes dividend tax of `1.83 crore.
3. The Group has proposed to acquire upto 20% of the equity share capital of Cairn India Ltd (“CIL”), subject to
requisite approvals. For the said acquisition, the Group is acting as a Person in Concert with its ultimate holding
company Vedanta Resources Plc (“Vedanta”), and/or any of Vedanta’s subsidiaries for acquiring majority of equity
shares of CIL. The Group has received clearance from Securities and Exchange Board of India (“SEBI”) to proceed
with an open ofer of up to 20% of the shares of CIL. The Group has launched the Open Ofer from 11th April,
2011.
In April 2011, the Group acquired 200 million shares amounting to 10.4% stake in CIL from Petronas International
Corporation Ltd (“Petronas”) at a price of `331 per share. The acquisition is in addition to the Open Ofer
launched by the Group on 11th April, 2011.
4. The Company had pursuant to a share purchase agreement dated 11th June, 2009 acquired 1,250,000 equity
shares of `10 each (being 100% of the issued and paid-up share capital) of Sesa Resources Limited (formerly V.
S. Dempo & Company Limited) (“SRL”). SRL in turn holds 1,150,000 equity shares of `100 each (being 100% of
the issued and paid-up share capital) of Sesa Mining Corporation Limited (formerly Dempo Mining Corporation
Limited) (“SMCL”) and also hold 5,000 equity shares of `10 each (being 50% of the issued and paid-up share
capital) of Goa Maritime Private Limited.
In view of SRL and SMCL having become subsidiaries of the Company with efect from 12th June, 2009, the
consolidated ?gures for the current year are not comparable with those of the previous year.
5. The Parent has acquired assets of the upcoming Steel Plant Unit of Bellary Steel and Alloys Ltd (“BSAL”) for an
all cash consideration of `220.00 crore. BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project at
Bellary. The properties of the under construction plant acquired are freehold land of ~700 acres, building and
structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an “As is
where is” basis to the Parent as of 22nd March, 2011.
6. During the previous year 2009-10, the Parent had issued 33,274,000 equity shares of `1 each at a premium of
`160.46 per share for cash to Twin Star Holdings Limited on a preferential basis under the applicable provisions
of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 (the “Guidelines”).
A part of the proceeds aggregating `101.47 crore (Previous year `101.47 crore) has been utilised for the Parent’s
capital projects. The unutilised portion of the issue proceeds amounting to `435.77 crore (Previous year `435.77
crore) has been invested in Mutual Funds.
7. During the previous year 2009-10, the Parent issued 5,000 Foreign Currency Convertible Bonds (“FCCBs”)
aggregating US$ 500 million at a coupon rate of 5% (net to bondholder) The bondholders have an option
to convert these FCCBs into shares, at a conversion price of `346.88 per share at a ?xed rate of exchange on
conversion of `48.00 per US $ 1.00 at any time on or after 9th December, 2009. The conversion price is subject
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
126
to adjustment in certain circumstances. The FCCBs may be redeemed in whole, but not in part, on or after
30th October, 2012, subject to certain conditions. Unless previously converted, redeemed or repurchased and
cancelled, the FCCBs fall due for redemption on 31st October, 2014 at par. As at 31st March, 2011, 2,832 FCCB’s
have been converted into 39,188,159 equity shares.
A part of the proceeds aggregating `775.28 crore (Previous year `21.70 crore) has been utilised for the Parent’s
capital projects, the construction of which is in progress. The unutilised portion of the FCCB proceeds
aggregating `1,607.22 crore (Previous year `2,360.80 crore) have been placed in term deposits/mutual funds/
current accounts with a scheduled bank, pending utilisation. Interest aggregating `4.72 crore (Previous year `0.17
crore) in respect of amounts utilised for the construction of capital projects has been capitalised and included as
part of Capital Work-in-Progress. The balance interest amounting to `27.86 crore (Previous year `45.36 crore) has
been charged to the Pro?t and Loss Account.
8. Contingent Liabilities:
i) Guarantees (excluding the liability for which provisions have been made) amounting to `13.84 crore
(Previous year `11.85 crore) given by the Bankers in favour of various parties - none invoked.
ii) Letters of Credit opened by the banks in favour of suppliers amounting to `363.93 crore (Previous year
`179.92 crore).
iii) Bonds executed in favour of customs authorities in respect of export of iron ore `1,807.92 crore (Previous
year `1,010.84 crore).
iv) Claims by custom authorities (under dispute) relating to diferential export duty on export shipments `49.13
crore (Previous year `49.13 crore). The said amount is also included under bonds executed detailed in point
8 (iii) above.
v) Bills discounted under letters of credit with banks `391.96 crore. (Previous year `471.08 crore).
vi) Provisions have also not been made in the accounts in respect of the following liabilities not acknowledged
as debts for the reasons stated against them:
a) Dead rent on deemed mining leases for the period from20.12.1962 to 23.5.1987 amounting to `0.10
crore (Previous year `0.10 crore) and royalty for the period from20.12.1961 to 30.9.1963 amounting to
`0.12 crore (Previous year `0.12 crore) sought to be levied by the Government pursuant to the Goa,
Daman & Diu Mining Concessions (Abolition & Declaration as Mining Leases) Act, 1987, challenged by
Special Leave Petition before Supreme Court of India.
b) Claims related to commercial and employment contracts `7.40 crore (Previous year `7.15 crore).
c) A civil suit claiming a damage of a minimum amount of `37.50 crore (Previous year `37.50 crore)
towards infringement of patent has been ?led against the Parent.
d) Disputed sales tax demand of `0.45 crore (Previous year `0.45 crore) including interest and penalty of
`0.09 crore (Previous year `0.09 crore) appealed before Appellate Authority.
e) Disputed income tax demand of `19.51 crore (Previous year `9.92 crore) including interest and penalty
of `1.71 crore (Previous year `1.24 crore), appealed before Appellate Authority.
f) Disputed demand from customs authorities towards ?ne and penalty of `0.35 crore (Previous year `0.35
crore) for improper documentation of equipments loaded/unloaded to/from the Parent’s vessel M.V.
Orissa and its improper use.
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
127
g) Disputed demand from customs authorities of `1.60 crore including penalty of `0.80 crore, for
transferring imported metallurgical coke at concessional rate of duty under the provisions of Customs
(Import of Goods at Concessional rate of Duty for manufacture of Excisable Goods) Rules 1996 to the
erstwhile M/s. Sesa Kembla Coke Company Limited, appealed before the Appellate Authority.
h) Disputed forest development tax amounting to `173.96 crore (Previous year `164.12 crore) levied by
Government of Karnataka challenged by writ petition ?led in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending. A bank guarantee amounting to `35.00
crore (Previous year `74.00 crore) has been furnished against this demand. Also an amount of `32.97
crore (Previous year `5.00 crore) has been deposited against aforesaid demand and same is included
under Loans and Advances.
i) A Notice issued by the Deputy Conservator of Forest, Chitradurga, demanding registration of a
supplemental forest lease agreement by payment of stamp duty calculated on the net present value
which has been challenged in the High Court of Karnataka. Estimated liability is `0.92 crore (Previous
year `0.92 crore). A bank guarantee amounting to `0.45 crore (Previous year `0.45 crore) has been
furnished against this demand.
j) Cess on transportation of ore, coal and coke within Goa levied by Government of Goa under the
Goa Rural Development and Welfare Cess Act, 2000 (Goa Act 29 of 2000) amounting to `118.11 crore
(Previous year `85.49 crore) challenged by way of writ petition in the High Court of Bombay, Panjim
Bench.
k) A demand from Railway authorities towards stacking charges amounting to `4.09 crore appealed before
Kolkata High Court and stay obtained. A bank guarantee amounting to `4.09 crore has been furnished
against this demand.
l) Disputed marine claims aggregating `13.57 crore and disputed income tax claims aggregating `33.87
crore in respect of a subsidiary. These claims if ?nally determined as payable will be reimbursed by the
erstwhile shareholders of the said subsidiary pursuant to Share Purchase Agreement dtd. 11.06.2009.
The Group does not expect devolvement of any liability in respect of the above.
9. Estimated amount of contracts (net of advances) remaining to be executed on capital account `412.39 crore
(Previous year `428.50 crore).
10. Direct expenditure on repairs and maintenance included under major heads of expenses are as under:
(` in crore)
Particulars Plant and
Machinery
Buildings Others Total
a) Wages and salaries 14.42
(14.13)
0.64
(0.49)
0.21
(0.18)
15.27
(14.80)
b) Consumption of stores 59.63
(56.78)
2.12
(0.74)
0.60
(0.45)
62.35
(57.97)
c) Contractors for various services 15.53
(17.66)
0.45
(1.32)
0.51
(0.37)
16.49
(19.35)
d) Others 1.73
(1.46)
1.88
( - )
0.17
(0.07)
3.78
(1.53)
Total 91.31
(90.03)
5.09
(2.55)
1.49
(1.07)
97.89
(93.65)
(Figures in bracket relate to previous year)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
128
11. In terms of the Mineral Concession Rules 1960 and Mineral Conservation and Development Rules (MCDR) 1988,
the Group has provided a “?nancial assurance” in the form of a bank guarantee to the Regional Controller of
Mines, towards its mine closure obligation. The Group has made a provision for expense to the extent of the bank
guarantees provided.
The present mine closure provision at 31st March, 2011 is as under:
(` in crore)
Nature of obligation 2010-11 2009-10
Mines Closure Provision
Opening carrying amount 2.65 1.50
Additional provisions made during the year 1.06 1.15
Amounts used during the year - -
Unused amounts reversed during the year - -
Closing carrying amount 3.71 2.65
12. Research and development expenditure of `0.29 crore (Previous year `0.48 crore) has been charged to Pro?t and
Loss Account under speci?c heads of accounts, while `Nil (Previous year `Nil) has been incurred as capital cost
for research and development.
13. Employee bene?ts obligations:
De?ned bene?t plans:
The Group ofers its employees de?ned bene?t plans in the form of gratuity schemes. Gratuity Scheme covers
all employees as statutorily required under Payment of Gratuity Act, 1972. The Group has ?ve gratuity schemes
for diferent categories of employees. The Group contributes funds to Life Insurance Corporation of India, HDFC
Standard Life Insurance Co. Limited and ICICI Prudential Life Insurance Company Limited which are irrevocable.
Commitments are actuarially determined at the year end. The actuarial valuation is done based on the “Projected
Unit Credit” method. Gains and losses of changed actuarial assumptions are charged to the Pro?t and Loss
Account under the head ‘Personnel’.
The net value of the de?ned bene?t commitment is detailed below:
(` in crore)
Particulars 2010-11 2009-10
Fair value of plans 40.04 37.80
Present value of commitment (43.53) (38.60)
Net gratuity liability (3.49) (0.80)
De?ned bene?t commitment
Balance at start of the year 38.60 25.63
On acquisition - 9.46
Current service cost 2.24 2.15
Bene?ts paid (4.75) (2.55)
Interest cost 3.09 2.79
Actuarial (gains)/losses 4.35 1.12
Balance at end of year 43.53 38.60
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
129
Particulars 2010-11 2009-10
Plan assets
Balance at start of the year 37.80 20.88
On acquisition - 11.57
Contribution received 3.72 4.74
Bene?ts paid (4.75) (2.55)
Return on scheme assets 3.00 2.80
Actuarial gains/(losses) 0.27 0.36
Balance at end of year 40.04 37.80
The Plan assets of the Group are managed by the Life Insurance Corporation of India, HDFC Standard Life
Insurance Co. Limited and ICICI Prudential Life Insurance Company Limited and the composition of the
Investment relating to these assets is not available with the Group.
(` in crore)
Return on plan assets 2010-11 2009-10
Expected return on plan assets 3.00 2.80
Actuarial gain / (loss) 0.27 0.36
Actual return on plan assets 3.27 3.16
Expenses on de?ned bene?t plan recognised in the Pro?t and Loss Account :
(` in crore)
Particulars 2010-11 2009-10
Current service cost 2.24 2.15
Actuarial (gains) / losses 4.08 0.76
Expected return on plan assets (3.00) (2.80)
Interest cost 3.09 2.79
Direct payment 0.02 -
Total expenses / (income) accounted in the Pro?t & Loss Account 6.43 2.90
The actuarial calculations used to estimate de?ned bene?t commitments and expenses are based on the
following assumptions which if changed, would afect the de?ned bene?t commitments size, funding
requirements.
Particulars 2010-11 2009-10
Rate on discounting liabilities 8% & 8.25% 8% & 8.25%
Expected salary increase rate 5% & 7% 5% & 7%
Expected rate of return on scheme assets 9.3% , 10% & 8% 9% , 9.3% & 8%
Withdrawal rates 1.5% 1.5%
Mortality rates LIC (1994-96) Ultimate Table LIC (1994-96) Ultimate Table
The estimates of future salary increases considered in the actuarial valuation, take account of in?ation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.
Experience adjustment
(` in crore)
Particulars 2010-11 2009-10 2008-09 2007-08
Present value of commitment (43.53) (38.60) (25.63) (21.22)
Fair value of the plans 40.04 37.80 20.88 19.65
Surplus / (de?cit) (3.49) (0.80) (4.75) (1.57)
Experience adjustment on plan liabilities 2.60 (0.90) 3.14 1.02
Experience adjustment on plan assets (3.23) 3.41 (0.04) 2.05
(` in crore)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
130
The contributions expected to be made by the Group during the ?nancial year 2011-12 are ` 5.19 crore.
The above information is actuarially determined.
De?ned Contribution Plans:
The Group ofers its employees bene?ts under de?ned contribution plans in the form of provident fund, family
pension fund and annuity fund. Provident fund, family pension fund and annuity fund cover substantially
all regular employees. Contributions are paid during the year into separate funds under certain statutory
/ ?duciary type arrangements. While both the employees and the Group pay predetermined contributions
into the provident fund and pension fund, the contribution to annuity fund are made only by the Group. The
contributions are normally based on a certain proportion of the employee’s salary.
A sum of `11.50 crore (Previous year `8.49 crore) has been charged to the Pro?t and Loss Account in this respect,
the components of which are tabulated below:
(` in crore)
Contribution to de?ned contribution plans 2010-11 2009-10
Provident fund and family pension fund 7.95 6.03
Annuity fund 3.55 2.46
11.50 8.49
14. Foreign Currency Exposures:
The year end foreign currency exposures that were not hedged by a derivative instrument or otherwise are given
below.
i) Amount receivable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in crore Fx million ` in crore Fx million
Export of goods and services & Advance to Vendors 582.00 USD 130.02
JPY 2.07
Euro 0.17
SGD 0.05
GBP 0.01
239.93 USD 53.1
Bank balance 0.13 CNY 0.12
USD 0.01
0.16 CY 0.12
USD 0.02
ii) Amount payable in foreign currency on account of the following:
Particulars 2010-11 2009-10
` in crore Fx million ` in crore Fx million
Import of goods and services 494.25 USD 110.3 289.64 USD 64.1
JPY 11.8
Euro 0.15
AUD 0.05
JPY 8.0
Foreign Currency Convertible Bonds and Interest there on 988.31 USD 221.35 1,956.91 USD 433.5
Foreign Currency Loan payable and Interest there on 28.14 USD 6.3 34.76 USD 7.7
Note: Fx = Foreign currency; USD = US Dollar; JPY = Japanese Yen; CNY = Chinese Yuan;
AUD = Australian Dollar; GBP = Great Britain Pound; SGD = Singapore Dollar
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
131
15. Earnings per share:
Particulars 2010-11 2009-10
Net pro?t after tax (`in crore) 4,222.45 2,629.13
Weighted average no. of equity shares 858,713,539 811,125,264
Nominal value of each equity shares `1 `1
Basic earnings per share (in `) 49.17 32.41
Add: Expenses/ (income) to the Pro?t and Loss Account on account of Foreign Currency
Convertible Bonds (net of tax)
58.11 (58.74)
Pro?t after tax for diluted earning per share 4,280.56 2,570.39
Weighted average number of shares for basic EPS 858,713,539 811,125,264
Add: Efect of potential equity shares on conversion of Foreign Currency Convertible Bonds 30,000,000 1,716,276
Weighted average number of shares for diluted earning per share 888,713,539 812,841,540
Diluted earning per share (in `) 48.17 31.62
16. Related party information:
Related party information as required by AS 18 is given below:
A. Names of the related parties and their relationships:
i) Holding Companies:
- Finsider International Company Limited Holding Company
- Richter Holding Limited Holding Companies of Finsider International Company
Limited - Westglobe Limited
- Vedanta Resources Plc Ultimate Holding Company
ii) Fellow Subsidiaries:
With whomtransactions have taken place during the year
- Bharat Aluminum Company Limited
- Hindustan Zinc Limited
- Konkola Copper Mines
- The Madras Aluminum Company Limited
- Sterlite Industries (India) Limited
- Sterlite Iron & Steel Company Limited
- Sterlite Technologies Limited
- Twin Star Holdings Limited
- Vedanta Aluminum Limited
- Vizag general Berth Cargo Private Limited
iii) Jointly Controlled Entities:
- Goa Maritime Private Limited
iv) Details of Key Management Personnel:
Executive directors
- Mr. P. K. Mukherjee
- Mr. A. K. Rai
- Mr. A. Pradhan
- Mr. Pramod Unde
- Mr. H. P. U. K. Nair (Retired on 0í.í0.2009)
- Mr. M. D. Phal (Retired on 30.04.2009)
v) Enterprise in which signi?cant in?uence is exercised by Key Management Personnel:
- Sesa Community Development Foundation
}
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
132
B. Transactions with related parties:
a) Details relating to parties referred to in items A (i) and (ii) above:
(` in crore)
Name of Related Party Nature of Transaction Holding
Companies
Fellow
Subsidiaries
1) Sales and Services
Bharat Aluminium Company Limited Services rendered -
( - )
0.001
( - )
Hindustan Zinc Limited Sale of Metallurgical
Coke and services rendered
-
( - )
0.74
(1.08)
Konkola Copper Mines Services rendered -
( - )
0.07
( - )
The Madras Aluminium Company Limited Services rendered -
( - )
0.03
( - )
Sterlite Industries (I) Limited Sale of Pig Iron and services rendered -
( - )
7.08
(3.52)
Sterlite Iron and Steel Company Limited Interest on Inter corporate deposit -
( - )
0.90
( - )
Vedanta Aluminum Limited Interest on Inter corporate deposit -
( - )
90.14
(95.21)
Vizag General Berth Cargo Pvt. Limited Services rendered -
( - )
0.04
( - )
2) Purchase and Other services
Bharat Aluminum Co. Limited Administration expenses -
( - )
0.01
(-)
Finsider International Co. Limited Dividend remittance 130.49
(90.34)
-
( - )
Hindustan Zinc Limited Administration expenses -
( - )
0.63
(0.13)
The Madras Aluminum Co. Limited Administration expenses -
( - )
0.003
( - )
Sterlite Industries Limited Administration expenses -
( - )
13.19
(10.36)
Sterlite Technologies Limited Administration expenses -
( - )
0.02
(0.14)
Talwandi Sabo Power Limited Administration expenses -
( - )
-
(0.03)
Twin Star Holdings Limited Dividend remittance 10.81
( - )
-
( - )
Vedanta Resources Plc. Administration expenses 5.86
(5.34)
-
( - )
Vedanta Aluminum Limited Administration expenses -
( - )
2.56
(1.25)
West Globe Limited Dividend remittance 14.41
(3.72)
-
( - )
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
133
Name of Related Party Holding
Companies
Fellow
Subsidiaries
3) Inter Corporate Deposits
Sterlite Iron & Steel Company Limited - 26.71
( - )
Vedanta Aluminium Limited -
( - )
1,000.00
(1,000.00)
4) Preferential allotment of equity of shares
Twin Star Holdings Limited -
( - )
-
(537.24)
5) Bad Debts Written Of -
( - )
-
( - )
6) Outstanding receivables/payables (-)
Hindustan Zinc Limited -
( - )
-0.01
( -0.02)
Sterlite Industries (I) Limited -
( - )
-1.50
(-1.11)
Sterlite Iron and Steel Company Limited -
( - )
0.90
( - )
Sterlite Technologies Limited -
( - )
-
( -0.01 )
Vedanta Aluminum Limited -
( - )
-0.52
( -0.64)
Vedanta Resources Plc. -7.46
( -6.45)
-
( - )
Figures in brackets relate to previous year
b) Details relating to persons referred to in item 1(iv) above:
(` in crore)
Particulars 2010-11 2009-10
i) Remuneration [Executive Directors]
Mr. P. K. Mukherjee 2.41 1.73
Mr. A. K. Rai 1.29 1.10
Mr. A. Pradhan 1.00 0.86
Mr. H. P. U .K. Nair (Retired on 0í.í0.2009) 0.15 0.76
Mr. M.D. Phal (Retired on 30.04.2009) - 0.34
Mr. Pramod Unde 1.30 0.41
Total 6.15 5.20
ii) Sale of Assets
Mr. H. P. U .K. Nair - 0.04
Mr. M. D. Phal - 0.04
(iii) Outstanding receivables/(payables)
Mr. P. K. Mukherjee (0.74) (0.56)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
134
c) Details relating to persons referred to in item A (v) above
(` in crore)
Particulars 2010-11 2009-10
Donation 3.29 3.53
Recovery – rent and electricity charges - 0.02
d) Additional information required as per the Listing Agreement:
(` in crore)
Particulars 2010-11 2009-10
Outstanding as at 31st
March, 2011
Maximum amount
outstanding during
the year
Outstanding as at
31st March, 2010
Maximum amount
outstanding during
the year
Inter-corporate deposits – Dues from
fellow subsidiary
Sterlite Iron & Steel Company Limited
Vedanta Aluminum Limited
26.71*
1,000.00**
27.61
1,000.00
-
1,000.00
-
1,000.00
* Inter-corporate deposits have been placed at an interest rate of 8%.
** Inter-corporate deposits have been placed at an interest rate of 8% from April 2010 to September 2010,
9% from October 2010 to December 2010 & 11% p.a. from January 2011 to March 2011 and are secured
against a corporate guarantee from Vedanta Resources Plc., the ultimate holding company. As no cash
and cash equivalents were involved in the roll-over of this Inter-corporate deposit, the same has been
excluded from the Cash ?ow statement.
17. Disclosure regarding jointly controlled assets – MV Goan Pride
(` in crore)
Particulars 2010-11 2009-10
Jointly controlled assets - Net Book Value 31.46 34.66
Liabilities 18.75 25.28
Expenses incurred 29.73 23.07
Income recognised 19.44 11.60
18. Segment Information
As required by Accounting Standard No. 17 on Segment Reporting
i) The Company is collectively organised into three main business segments namely:
- Iron Ore
- Metallurgical coke
- Pig iron
Segments have been identi?ed and reported taking into account the nature of the product and services, the organisation
structure and internal ?nancial reporting system.
ii) Information based on the Primary Segment (Business Segment)
(` in crore)
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Revenue
- Sales / Income from Operations (net of duties
and ocean freight)
8,586.72
(5,234.55)
506.37
(384.35)
673.81
(551.40)
9,766.90
(6,170.30)
- Other Income 6.97
(6.48)
0.14
(0.17)
0.39
(0.43)
7.50
(7.08)
8,593.69
(5,241.03)
506.51
(384.52)
674.20
(551.83)
9,774.40
(6,177.38)
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
135
Particulars Iron Ore Metallurgical
Coke
Pig Iron Unallocated Total
Less : Intersegment Revenue 207.13
(71.34)
354.78
(240.70)
0.05
(0.14)
561.96
(312.18)
Net Revenue from operations 8,386.56
(5,169.69)
151.73
(143.82)
674.15
(551.69)
9,212.44
(5,865.20)
Add : Interest Income 173.36
(142.85)
173.36
(142.85)
Add : Dividend 297.05
(79.00)
297.05
(79.00)
Add : Foreign Exchange Gain on Foreign Currency
Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 62.16
(75.30)
62.16
(75.30)
Enterprise revenue 9,745.01
(6,284.26)
Segment Result before tax, interest,dividend and
other non-recurring/unallocable income
4,883.93
(2,925.91)
89.01
(34.09)
141.08
(117.25)
5,114.02
(3,077.25)
Less: Interest Expenses 38.12
(51.72)
38.12
(51.72)
Less : Foreign Exchange Loss on Foreign Currency
Convertible Bonds
48.78
( - )
48.78
( - )
Add : Interest Income 173.36
(142.85)
173.36
(142.85)
Add : Dividend Income 297.05
(79.00)
297.05
(79.00)
Add : Foreign Exchange Gain on Foreign Currency
Convertible Bonds
-
(121.91)
-
(121.91)
Add : Pro?t on sale of Investment 62.16
(75.30)
62.16
(75.30)
Pro?t before Taxation 5,559.69
(3,444.59)
Segment Assets 4,415.18
(2,891.02)
384.65
(227.18)
279.35
(203.52)
10,524.50
(7,914.85)
15,603.68
(11,236.57)
Segment Liabilities 898.76
(689.59)
358.42
(168.01)
53.19
(32.65)
1,482.88
(2,385.32)
2,793.25
(3,275.57)
Capital Expenditure 966.54
(141.58)
3.79
(3.42)
18.35
(4.52)
-
( - )
988.68
(149.52)
Depreciation 64.93
(57.29)
23.15
(9.31)
8.30
(7.90)
-
( - )
96.38
(74.50)
Signi?cant Non-Cash Expenses other than
depreciation
0.12
(0.61)
0.07
(9.03)
-
( - )
48.78
( - )
48.97
(9.64)
(Figures in bracket relate to previous year)
iii) Information based on the Secondary Segment (Geographical Segments):
(` in crore)
Particulars 2010-11 2009-10
Segment Revenue:
India 1,261.06 1,031.26
Outside India 7,951.38 5,146.12
Segment Assets:
India 4,496.75 1,331.82
Outside India 582.43 243.48
(` in crore)
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
136
Particulars 2010-11 2009-10
Capital Expenditure:
India 988.68 136.11
Outside India - -
19. The ultimate holding company viz. Vedanta Resources Plc, (“Vedanta”) ofers equity-based award plans to its
employees, ofcers and directors based on the performance conditions as set out in the scheme, duly approved
by the board of directors and by the shareholders of Vedanta on 24th December, 2003 and 20th January, 2004
respectively. The performance condition attached to outstanding awards under the Long Term Incentive Plan
(LTIP) is that of Vedanta’s performance, measured in terms of Total Shareholder Return (“TSR”) compared over a
three year period or such period as the Board of Vedanta may determine with the performance of the companies
as de?ned in the scheme from the date of grant. Under this scheme, initial awards under the LTIP were granted
in February 2004 with further awards being made in June 2004, November 2004, February 2006, November
2007, February 2009, August 2009 and January 2010.
The fair values were calculated using a Monte Carlo model with suitable modi?cations to allow for the speci?c
performance conditions of the LTIP. The inputs to the model include the share price at date of grant, exercise
price, expected volatility, expected dividends and the risk free rate of interest. A progressive dividend growth
policy is assumed in all fair value calculations. Expected volatility has been calculated using historical share
prices over the period to date of grant that is commensurate with the performance period of the option. The
share prices of the mining companies in the Adapted Comparator Group have been modeled based on historical
price movements over the period to date of grant which is also commensurate with the performance period for
the option. The history of share prices is used to determine the volatility and correlation of share prices for the
companies in the Adapted Comparator Group and is needed for the Monte Carlo simulation of their future TSR
performance relative to the Company’s TSR performance. All options are assumed to be exercised six weeks after
vesting.
The awards are indexed to and settled in Vedanta shares. The awards provide for a ?xed exercise price
denominated in Vedanta’s functional currency at 10 US cents per share. Vedanta is obligated to issue the shares.
On the grant date, fair value of the awards is recovered by Vedanta from the Group to the extent the awardees
have been deployed at the Group.
Accordingly, Vedanta, on the basis of fair value of options granted to such employees charged a proportionate
cost to the Group in the amount of `5.86 crores (Previous year `5.34 crores) which is charged to the Pro?t and
Loss Account under the head “Salaries, Wages, bonus and allowances” in Schedule 16 to the ?nancial statements.
Vedanta has obtained an overall valuation of the options granted by it to the awardees. Information related
to options granted to the eligible resources deployed at the Group is not readily available and accordingly the
movements in options have not been disclosed.
20. “Other current assets” comprise interest accrued on term deposits.
21. Previous year’s ?gures have been regrouped and rearranged wherever necessary to conform to this year’s
classi?cation.
For and on behalf of the Board of Directors
P.K. Mukherjee
Managing Director
A.K. Rai
Director
C.D. Chitnis
Company Secretary
Place: Panaji - Goa
Dated: 25th April, 2011
Notes Forming Part of the Accounts (continued)
For the year ended 31st March, 2011
(` in crore)
Schedule 19 : (continued)
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
137
Notice is hereby given that the Forty-Sixth Annual General Meeting of Sesa Goa Limited will be held on Thursday, 21st
July, 2011 at 10.00 A.M. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa, to transact the
following business:
Ordinary business:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2011 and the Pro?t & Loss Account
for the year ended on that date and the Reports of the Directors and Auditors thereon.
2. To declare dividend.
3. To appoint a director in place of Mr. Ashok Kini who retires by rotation and being eligible ofers himself for
re-appointment.
4. To appoint a director in place of Mr. P.G. Kakodkar who retires by rotation and being eligible ofers himself for
re-appointment.
5. To appoint Auditors to hold ofce from the conclusion of this meeting until the conclusion of the next Annual
General Meeting and to ?x their remuneration.
Special Business:
6. To consider and, if thought ?t, to pass with or without modi?cation(s) the following resolution as Ordinary
Resolution:
“RESOLVED that Mr. J.P. Singh , who was appointed as an Additional Director by the Board of Directors at
their meeting held on 19th July, 2010 and who ceases to hold ofce at this Annual General Meeting pursuant
to Section 260 of the Companies Act, 1956 and who is eligible for appointment and in respect of whom the
Company has received a notice under Section 257 of the Companies Act, 1956 from a member proposing his
candidature for the ofce of a director, be and is hereby appointed as a Director of the Company liable to retire
by rotation.”
7. To consider and, if thought ?t, to pass with or without modi?cation(s) the following resolution as a Special
Resolution:
“RESOLVED that pursuant to Sections 309(4) and 310 of the Companies Act, 1956, authority be and is hereby
accorded to the Board of Directors to decide payment of commission to the Non-Wholetime Directors of the
Company, not being Managing/Wholetime Directors (in such manner as the Board of Directors may from time
to time determine) upto Rupees 75 lakhs per year computed in the manner laid down in Section 198(1) of the
Companies Act, 1956.”
By Order of the Board
SESA GOA LIMITED
C.D. CHITNIS
Secretary & AVP-Legal
Place : Panaji - Goa
Dated: 25th April, 2011
Notice of Annual General Meeting
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
138
NOTES:
A) The relative Explanatory Statement as required by Section 173 of the Companies Act, 1956, in regard to the
Special Business entered under Items 6 & 7 is annexed hereto.
B) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND
AND VOTE INSTEAD OF HIMSELF AND SUCH A PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE PROXY
FORM SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN
FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.
C) The Register of Members and Share Transfer Books of the Company will remain closed from Tuesday, 5th July,
2011 to Thursday, 7th July, 2011 (both days inclusive).
D) The dividend on Equity Shares, if declared at the Meeting, will be credited / dispatched between 21st July, 2011
and 19th August, 2011 to those members whose names shall appear on the Company’s Register of Members on
Monday 4th July, 2011; in respect of the shares held in dematerialised form, the dividend will be paid to members
whose names are furnished by National Securities Depository Limited and Central Depository Services (India)
Limited as bene?cial owners as on that date.
E) Members holding shares in electronic form may note that bank particulars registered against their respective
depository accounts will be used by the Company for payment of dividend. The Company or its Registrars and
Transfer Agents cannot act on any request received directly from the members holding shares in electronic form
for any change of bank particulars or bank mandates. Such changes are to be advised only to the Depository
Participant of the members.
F) Members holding shares in electronic form are requested to intimate immediately any change in their address or
bank mandates to their Depository Participants with whom they are maintaining their demat accounts. Members
holding shares in physical form are requested to advise any change of address immediately to the Company/
Registrars and Transfer Agents, M/s. Karvy Computershare Private Limited.
G) In accordance with the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956, the
amount of dividend for the Financial Year ended 31st March, 2003 and interim dividend for the ?nancial year
ended 31st March, 2004 which remained unpaid and unclaimed for a period of 7 years from the date of transfer
to the Unpaid Dividend Account of the Company has been transferred to the Investor Education and Protection
Fund established by the Central Government.
H) Pursuant to the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956 the amount
of ?nal dividend for the Financial Year ended 31st March, 2004 and dividend for the ?nancial year ended 31st
March, 2004 in respect of erspwhile SIL, and thereafter which remain unpaid and unclaimed for a period of
7 years from the date of transfer to the Unpaid Dividend Account of the Company shall be transferred to the
Investor Education and Protection Fund established by the Central Government and no claim shall lie against the
said Fund or the Company for the amounts of dividend so transferred to the said Fund. Shareholders, who have
not yet encashed their ?nal dividend warrants for the Financial Year ended 31st March, 2004 or any subsequent
?nancial years are therefore requested to make their claim to the Company without delay.
I) Members are requested to bring their Admission Slips along with copy of the Report and Accounts to the Annual
General Meeting.
J) Members, who wish to obtain any information on the Company or view the accounts for the Financial Year
ended 31st March, 2011 may visit the Company’s corporate website www.sesagoa.com or send their queries
atleast 10 days before the Annual General Meeting to the Company Secretary at the Registered Ofce of the
Company.
K) The information as required to be provided under the Listing Agreement with the Stock Exchanges, regarding the
Directors who are proposed to be appointed/re-appointed is given hereunder:
Sesa Goa Limited Annual Report 2011
B
u
s
i
n
e
s
s
R
e
v
i
e
w
C
o
r
p
o
r
a
t
e
G
o
v
e
r
n
a
n
c
e
F
i
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
139
i) Name : Mr. Ashok Kini
Age : 65
Quali?cations : B.Sc/M.A./C.A.I.I.B (Certi?ed Associate, Indian Institute of Bankers)
Expertise : Retired as MD of State Bank of India in December 2005 after serving the bank for 38
years in various capacities. His areas of experties include Information Technology, Retail
Banking, Business Process Re-engineering and Change Management.
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. IndusInd Bank Limited Director Audit Member
2. Gulf Oil Corporation Limited Director Audit Member
3. UTI Trustee Co. Pvt. Ltd Director Audit Member
4. Financial Inclusion Network and Operations
Limited.
Director Audit Chairman
ii) Name : Mr. P. G. Kakodkar
Age : 74
Quali?cations : MA (Economics)
Expertise : Over 40 years of experience in State Bank of India (SBI ), Retired as Chairman of SBI.
He is currently IT & Banking Consultant.
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. Goa Carbon Limited Director Audit Remuneration Member
2 Uttam Galva Steel Ltd. Director Audit Member
3 Financial Technologies (India) Ltd. Director Audit Member
4 Fomento Resorts & Hotels Ltd. Director
5 Centrum Finance Ltd. Director
6 Auditime Information Systems (I) Private Limited. Director
7 Multi Commodity Exchange of India Ltd. Director
8 IBX Forex Ltd. Director
9 Anand Rathi Financial Services Ltd. Director
iii) Name : Mr. J.P. Singh
Age : 63
Quali?cations : M.A, MPA (Harvard), IAS Retd. (Rajasthan 1972)
Expertise : Former Secretary in Ministry of Finance (DOD) and Ministry of Mines, Special Secretary
labour and has over 36 years of executive experience in key positions in the state and
union government
Shareholding : Nil
Other Directorships /
Committee Memberships
:
Sr. No. Name of the Company Position held Committee Type Membership Status
1. BEML Limited Director Audit Chairman
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
140
ITEM NO. 6
Mr. J. P. Singh has been appointed as an Additional Director by the Board of Directors, at their meeting held on
19th July, 2010 and he holds the ofce upto this Annual General Meeting.
Mr. J. P. Singh is M.A, MPA (Harvard), IAS Retd. (Rajasthan 1972) and is former Secretary in Ministry of Finance (DOD)
and Ministry of Mines, Special Secretary Labour and has over 36 years of executive experience in key positions in
the state and union government. Your Directors are of the view that his continuation on the Board will enable the
Company to gain from his considerable experience and expertise, and therefore recommend for approval of the
resolution contained in Item no 6 of the notice convening the Annual General Meeting.
The Company has received a Notice in writing from a member under Section 257 of the Companies Act, 1956
alongwith a deposit of `500/- proposing the candidature of Mr. J.P. Singh for the ofce of Director. The Board
recommends his appointment.
No Director of the Company other than Mr. J.P. Singh is interested in the Resolution.
ITEM NO. 7
Section 309(4) of the Companies Act, 1956 provides that a Director who is neither in the wholetime employment of
the Company nor a Managing Director may be paid remuneration by way of commission, if the Company by special
resolution, authorises such payment.
The Shareholders at the Annual General Meeting held on 20th July, 2009, approved payment of commission to the
Non-Wholetime Directors of the Company, not being Managing/Wholetime Directors (in such manner as the Board of
Directors may from time to time determine) upto ` 50 lakhs per year. The shareholders have witnessed the growth of
the Company to which the contributions of Non Executive Directors has been vital. The recent trend of globalisation
of business, corporate governance, risk assessment requirement and international competition has made the role of
Non Executive Directors more imperative. It is, therefore, recommended to approve payment of commission upto
` 75 lakhs in addition to the fees for attending the meetings of the Board for period of three years with efect from
1st April, 2011.
All the Directors of the Company other than Managing/Wholetime Directors are deemed to be interested in the
Resolution to the extent the commission is payable to them in accordance with the proposed resolution.
By Order of the Board
SESA GOA LIMITED
C.D. CHITNIS
Secretary & AVP-Legal
Place : Panaji - Goa
Dated: 25th April, 2011
Annexure to Notice
Explanatory Statement Pursuant to Section 173 of the Companies Act, 1956
Sesa Goa Limited
Regd. Ofce:
‘Sesa Ghor’,
20 EDC Complex,
Patto, Panaji,
Goa - 403 001
ATTENDANCE SLIP
PLEASE FILL THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
(For demat holding) (For physical holding)
DP ID Folio No.
Client ID No. of Share(s) held
I hereby record my presence at the 46th ANNUAL GENERAL MEETING of the Company on Thursday, 21st July, 2011 at
10.00 a.m. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa.
Name of the equity shareholder/ proxy/ representative ..........................................................................................................................
Signature of the equity shareholder/ proxy/ representative ...................................................................................................................
Note: Shareholders are requested to bring the Attendance Slip with them when they come to the meeting and hand it over at the gate after afxing their signature on it.
Sesa Goa Limited
Regd. Ofce:
‘Sesa Ghor’,
20 EDC Complex,
Patto, Panaji,
Goa - 403 001
PROXY FORM
I/We ............................................................................................................................................................................................................................
..................................................................... of ...................................................................................................... being a member/members
of SESA GOA LIMITED, hereby appoint .......................................................................................................................................................... ..
........................................................................................ of...........................................................of failing him ............................................... of
or failing him ................................................................ of ........................................................................................................................................
as my/our proxy to vote for me/us and on my/our behalf at the 46th ANNUAL GENERAL MEETING of the Company on
Thursday, 21st July, 2011 at 10.00 a.m. at Dinanath Mangeshkar Kala Mandir Auditorium at Kala Academy, Panaji, Goa
and at any adjournment thereof.
Signed this....................................................................... day of ....................................................................... 2011.
Folio No./DP ID and Client ID:
Address: Signature
Notes:
1. The proxy need NOT be a member.
2. The proxy form duly signed across revenue stamp should be submitted to the Company’s Registered Ofce at least 48 hours before the time of the meeting.
Afx
`. 1/-
Revenue
Stamp
Important Communication to Members
The Ministry of Corporate Afairs has taken a “Green Initiative in the Corporate Governance” by allowing paperless
compliances by the companies and has issued circulars stating that service of notice/ documents including Annual
Report can be sent by e-mail to its members. To support this green initiative of the Government in full measure,
members who have not registered their e-mail addresses, so far, are requested to register their e-mail addresses, in
respect of electronic holdings with the Depository through their concerned Depository Participants. Members who
hold shares in physical form are requested to ?ll the appropriate column in the members feedback form attached to
the Annual Report and register the same with Karvy Computershare Private Limited. Postage for sending the feedback
form will be borne by the Company.
Sesa Goa Limited Annual Report 2011 www.sesagoa.com
Name: ................................................................................................................ Email Id: ..................................................................................
Address: Phone No:
(with STD code)
DP ID: ....................................................................
Client ID: ...............................................................
Folio No.:
(in case of Physical Holding)
Number of Equity Shares Held:
(the period for which held) Signature of Member
Excellent Very Good Good Satisfactory Needs
improvement
1 Information in Annual Report:
a. Directors’ Report and Management’s
Discussion and Analysis
Contents
Presentation
b. Report on Corporate Governance Contents
Presentation
c. Quality of Financial and non-?nancial
information in the Annual Report
Contents
Presentation
2. Information on Company’s Website Contents
Presentation
3. Conduct of Annual General Meeting
4. Extent of satisfaction with the responses
received from the Secretarial Department
of the Company
5. Extent of Satisfaction with Karvy
Computershare Private Limited’s services
in the following activities:
a. Demat/Remat of Shares
b. Transfer of Shares
c. Transmission of Shares
d. Sub-Division/ Consolidation/ Renewal of
share certi?cates
e. Issue of duplicate share certi?cates
f. Disbursement of dividend - Timely
receipt of Dividend Warrants/payment
through ECS
g. Recording of Nomination/ Bank Mandate/
NECS/ Change of address details
h. Timely receipt of Annual Report
i. Turnaround time for response to
shareholder Query
j. Reminders before transfer of unclaimed
dividends to Investor Education and
Protection Fund
k. Quality of Response
l. Investor Services
m. Overall rating
Views/Suggestions for improvement, if any ...
Members are requested to send this feedback form to the address given overleaf
Members Feedback Form 2010-2011
Board of Directors:
P. G. Kakodkar
Kuldip K. Kaura
Jagdish P. Singh
Gurudas D. Kamat
Ashok Kini
A. Pradhan
Whole Time Director
A. K. Rai
Whole Time Director
P. K. Mukherjee
Managing Director
Secretary:
C. D. Chitnis
Auditors:
M/s. Deloitte Haskins & Sells
Chartered Accountants,
Mumbai
Registered Ofce:
Sesa Goa Limited
Sesa Ghor, 20 EDC Complex,
Patto, Panaji,
Goa - 403 001,
INDIA.
Transfer Agents
Karvy Computershare Private Limited,
Plot No. 17-24, Vittal Rao Nagar,
Madhapar, Hyderabad – 500 081
Phone: 040 23420815-28
Fax: 040 23420814
Email: [email protected]
[email protected]
www.karvycomputershare.com
Bankers:
Canara Bank
State Bank of India
ICICI Bank Limited
Mining and other establishments:
In the states of Goa and Karnataka of India
Corporate Information
Sesa Goa Limited
Sesa Ghor, 20 EDC Complex,
Patto, Panaji,
Goa - 403 001, INDIA.
Tel.: +91 832 2460 600
www.sesagoa.com
This annual report is printed on Eco-Friendly paper
D
e
s
i
g
n
e
d
,
P
r
o
c
e
s
s
e
d
&
P
r
i
n
t
e
d
b
y
K
A
R
V
Y
C
O
M
P
U
T
E
R
S
H
A
R
E
P
V
T
.
L
T
D
.
,
U
n
i
t
:
S
e
s
a
G
o
a
L
i
m
i
t
e
d
P
l
o
t
N
o
.
1
7
-
2
4
,
V
i
t
t
a
l
R
a
o
N
a
g
a
r
,
M
a
d
h
a
p
u
r
,
H
y
d
e
r
a
b
a
d
-
5
0
0
0
8
1
.
I
N
D
I
A
.
P
E
R
M
I
T
N
O
:
H
D
C
/
B
-
7
3
5
C
Y
B
E
R
A
B
A
D
P
O
S
T
O
F
F
I
C
E
M
A
D
H
A
P
U
R
,
H
Y
D
E
R
A
B
A
D
-
5
0
0
0
8
1
B
U
S
I
N
E
S
S
R
E
P
L
Y
E
N
V
E
L
O
P
E
P
O
S
T
A
G
E
W
I
L
L
B
E
P
A
I
D
B
Y
T
H
E
A
D
D
R
E
S
S
E
E
N
O
P
O
S
T
A
G
E
S
T
A
M
P
N
E
C
E
S
S
A
R
Y
I
F
P
O
S
T
E
D
I
N
I
N
D
I
A
doc_361706833.pdf