1. Financial
Management
project
Sesa Goa-Mining
Submitted To:-
Prof. Priya Dwivedi
Submitted By:-
Vijendra Chandrawanshi
Vinit Khushalani
Vishakha Bhagwat

2. S. NO Particular Page No.
1 Introduction 1
2 Dupont Analysis 2-3
3 Cash Flow Analysis Excel Sheet

3. A Brief Introduction
Sesa Goa Limited is multinational iron-ore producer and exporter with operations in the
states of Goa and Karnataka in India and in Liberia, West Africa. It is India's largest
producer and exporter of iron ore in the private sector, with production of above 21
million tonnes of iron ore in fiscal year 2010.
For more than five decades, it has been engaged in exploration, mining and processing of
iron ore. The company was founded in 1954, as Scambi Economici SA Goa. Since then,
it has grown to be one among the top low-cost producers of iron ore in the world. During
1991-1995, it diversified into the manufacture of pig iron and metallurgical coke. It has
also developed indigenous and environment-friendly technology for producing high
quality metallurgical coke.
In 2007, it became a majority-owned subsidiary of Vedanta Resources Plc, listed on
the London Stock Exchange, when Vedanta acquired 51% controlling stake from Mitsui
& Co., Ltd. In June 2009, Sesa Goa Limited acquired VS Dempo & Co. Private Limited
(now Sesa Resources Limited) along with its fully owned subsidiary Dempo Mining
Corporation (now Sesa Mining Corporation Limited) and 50% equity in Goa Maritime
Private Limited. In 2011, Sesa acquired 51% stake in Western Cluster Limited, Liberia.
Sesa Goa Limited’s operations are located predominantly in Goa and Karnataka, with
offices in various locations across India. Its head office in India in Panaji, Goa, while its
Liberia office is in Monrovia and China office is in Shanghai.
Du Pont Analysis

4. in Rs. Cr
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Total Assets 16,512.32 12,560.13 9,134.51 4,519.69 2,791.13
Equity Share
Capital 86.91 86.91 83.1 78.72 39.36
Networth 12,913.19 11,588.81 7,208.71 4,517.78 2,791.13
PBDIT 3,287.70 5,185.66 3,429.77 3,223.63 2,597.03
Profit after tax 1,679.94 3,432.80 2,118.09 1,942.49 1,492.00
Operating Profit 3,298.97 4,713.36 2,992.03 3,162.87 2,497.52
Equity Dividend 347.64 315.23 270.06 177.13 177.13
ROE: 0.130095 0.296217 0.2938237 0.4299656 0.5345505
Interpretation : As we see in the ratio of ROE, the shareholder profitablity decrease year by
year so it create less interest to the shareholder.
ROI: 0.199106 0.412867 0.3754739 0.7132414 0.9304583
Interpretation : As we see in the ratio of ROI, In this ratio it represent the Investment of the
company, as it decrease year by year so the company come in decline poistion.
Retention Ratio 0.89 0.93 0.91 0.94 0.93
ROA: 0.101739 0.273309 0.2318778 0.4297839 0.5345505
Interpretation : In the ROA, It represent invesment of the company in the assets and
earning from them, as we see in the ROA they are decrease year by year, so it define
company are not investing in the assets.
0.091018 0.25503 0.2109486 0.4057147 0.4966389
0.908982 0.74497 0.7890514 0.5942853 0.5033611
IGR: 0.100131 0.342337 0.2673445 0.6826936 0.9866455
Interpretation : Internal Growth Rate, it represent internal growth of the company, as we
see the IGR they also decrease year by year, the company are not invested in the internal
factors.

5. 0.116386 0.276406 0.2673033 0.4058863 0.4966389
0.883614 0.723594 0.7326967 0.5941137 0.5033611
SGR : 0.131716 0.38199 0.3648211 0.6831794 0.9866455
Interpretation : Substainable growth rate, it represent The maximum growth rate that a firm
can sustain without having to increase financial leverage. It also decrease year by year so
the company.