Sesa Goa Versus Gmdc

7/29/2019 Sesa Goa Versus Gmdc

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STATISTICAL INFERENCE

SY-3

MINING/MINERAL SECTOR

Group NO-1

401 HARDIK PATODIA

402 TANUJ PAUL403 AALIYA PEHLARI

404 KARNIK PILLAI

406 KAUSHA POMAL

407 PRIYA PORWAL

408 JINAL PRAJAPATI

409 VEDANT PUGALIA

410 RICHA PUJARA

ACKNOWLEDGEMENT

This project has been submitted with due participation of all the group

members. Thanks to Prof. Dinesh Barot, Prof. Bhaktida and Prof.Neha Gadvi for guiding us and helping us with all our doubts during

the course of doing this project. Thanks to the college and statistical

department for coming up with projects of such kind from which we

learn a lot and develop our presentational skills.


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INTRODUCTION

India is endowed with significant mineral resources. India produces 89 minerals out

of which 4 are fuel minerals, 11 metallic, 52 non-metallic and 22 minor minerals.

The total value of mineral production (excluding atomic minerals was Rs. 404768 million

in 1998-99. The entire metallic production is accounted for by iron-ore, copper-ore,

chromite and/or zinc concentrates, gold, manganese ore, bauxite, lead concentrates, and

silver. Amongst the non-metallic minerals, 92 percent of the aggregate value is shared by

limestone, magnesite, dolomite, barytes, kaolin, gypsum, apatite & phosphorite, steatite

and fluorite.

India is the worlds largest producer of mica blocks and mica splittings. With the recentspurt in world demand for chromite, India has stepped up its production to reach the thirdrank among the chromite producers of the world.

Besides, India ranks 3rd

in production of coal & lignite and barytes, 4th

in iron ore, 6th

inbauxite and manganese ore, 10 in aluminium and 11th in crude steel in the World.

The Ministry of Mines is responsible for the survey and exploration of all minerals, other

than natural gas, petroleum, and atomic minerals; for mining and metallurgy of non-

ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc., and for theadministration of the Mines and Minerals (Regulation and Development) Act, 1957, in

respect of all mines and minerals, other than coal, natural gas, petroleum, and atomic

minerals.


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SESA GOA V/S GMDC

SESA Goa

Sesa Goa Limited is India's largest producer and exporter of iron ore in the private sector.For more than five decades, Sesa is engaged in the business of exploration, mining and

processing of iron ore.In fiscal 2011, it produced 18.8 million tonnes and 18.1 million tonnes (DMT)respectively of iron ore. In the same year, its turnover was above US$ 2 billion.Sesa is among the low-cost producers of iron ore in the World and is well placed to servethe growing demand of Asian countries. Sesa's iron ore markets/customers are primarily inChina, India, Japan, Korea, Europe and other Asian countries.Sesa has mining operations in Goa and Karnataka in India. While iron ore from its Goamines is shipped through the Mormugoa port, the ore from Karnataka mines is exported

through the ports of Goa, Mangalore and Krishnapatnam.As of 31 March 2011, Sesa owns or has rights to reserves and resources of 306 milliontonnes of iron ore; which has been independently reviewed and certified as per Joint OreReserves Committee (JORC) standards.In August 2011, Sesa acquired 51% stake in Western Cluster Limited, Liberia ('WCL").WCL, which has mining interests / rights in the Western Cluster iron ore project in Liberiawith a potential reserves and resources of over 1 billion tonnes.


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Over the last two decades, Sesa has diversified into manufacturing of pig iron andmetallurgical coke. In Goa, Sesa operates a metallurgical coke plant with an installedcapacity of 280,000 tpa; and a pig iron plant with an installed capacity of 250,000 tpa andan environmental clearance of 292,000 mtpa of pig iron and 60,000 tpa of slag. Sesa hasalso developed and provides proprietary technology in metallurgical coke production andhas entered into technology licensing agreements with different licenses for marketingtechnology for setting up non-recovery coke oven plants across the globe.

ACHIEVEMENTSCORPORATE SOCIAL RESPONSIBILITYSesa Goa Limited received the Goan Achievers Award for Corporate SocialResponsibility at an award function organized by Navhind Times and Viva Goa Magazine

in Goa on 28 March 2011.ENVIRONMENT, HEALTH & SAFETYBureau Veritas, the international certifying agency for the Social Accountability 8000Standard, has certified the four major divisions of Sesa Goa Ltd, which are:

a] Iron Ore Division - All Mines: Exploration, Mining, Processing, Blending &Dispatch of Iron Ore

b] Pig Iron Division - Manufacture of Pig Ironc] Met-Coke Division - Manufacturing of Metallurgical Coked] Ship Building Division - Design, Construction & Repair, of Self Propelled &Dumb floating crafts/vessels of steel construction.

Sesa Goa Limiteds five units received the British Safety Councils International SafetyAward for the year 2011.Sesa Goa Limited won the Environmental Sustainability Excellence Award, given byIndian Chamber of Commerce at their summit on India Sustainability Vision @ Futureorganised at Delhi on 9 March 2011.

QUALITYSesa Goa Limited, Codli Mine - Workshop & Stores has received the 5S certification fromthe Certificate Body of Quality Circle Forum of India in January 2011.

OTHERSSesa Goa Limiteds Annual Report 2011 has been awarded the following awards byLeague of American Communication Professionals (LACP) in the 2011 Spotlight AwardsGlobal Communications Competition.Platinum Award for excellence within its Competition Class.Best Debut Silver Award across all categories of competition for the past year.


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Top 100 Communications Materials of 2011 (Ranked at #23 in the world wide top

100 ranking)

Sesa Goa Limited was conferred with Award for Talent Management for its best practices

in talent management by Asias Best Employer Brand Awards in July 2011Sesa Goa Limited won the best performer award instituted by Financial ExpressEVI inthe Metals & Mining category for its contributions towards the environment and theexcellence in the area of Green Businesses.

Stock Prices:

BSEFeb 20, 15:52

169.90-1.05 (-0.61%)

NSEFeb 20, 15:59

169.95-0.95

Key Financial Ratios of Sesa GoaMar '12 Mar '11 Mar '10 Mar '09 Mar '0

Face Value 1.00 1.00 1.00 1.00 10.0

Operating Profit Per Share (Rs) 37.96 54.23 36.01 40.18 634.5

Net Operating Profit Per Share (Rs) 80.63 94.60 63.82 64.46 907.4

Current Ratio 0.42 2.01 3.63 2.60 1.9

Debt Equity Ratio 0.28 0.08 0.27 --

Long Term Debt Equity Ratio 0.09 0.08 0.27 --

Inventory Turnover Ratio 9.94 13.92 14.18 25.66 15.3

Debtors Turnover Ratio 14.46 20.94 19.82 14.50 10.6


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GMDCGujarat Mineral Development Corporation Limited (GMDC) is a major minerals andlignite mining company of India. It is State owned company owned by Government ofGujarat. GMDC was founded in 1963.Its corporate headquarter is at Ahmedabad.

Its product range includes essential energy minerals like lignite, base metals and industrialminerals like bauxite and fluorspar Gujarat government as given its green signal toGMDC to form a joint venture with NALCO for a 1 mtpa refinery. In 1999, thegovernment of Gujarat being the sole owner, dis-invested 26% of its stake and the GMDC

became a listed entity (BSE&NSE) and is occupying a position within the top fortune 500companies in our country with an annual turnover surpassing 1000 Crores withconsiderable annual growth rate

ACHIEVEMENTS:

A Clean and Green Space - GMDC receives public recognition

Gandhiji always advocated for cleanliness, be it at personal level or at public level. It wasa feeling of pride when GMDC, a government enterprise in relentless service to theindustries of this state, also won the 1st runners up trophy announced by Gujarat Instituteof Housing and Estate Developers at a Gala Function organized at Gujarat UniversityConvention Hall on 15th August, 2011, coinciding with the 65th Independence Day of thenation, in The best Housekeeping Public Spaces category. GMDC has always tried toimbibe the spirit of maintaining a clean and green working space as it understands its


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importance, because GMDCians spend their 10 to 12 hours of the day at this public space.It is generally felt that a cleaner work space always help keep employees refreshed andenergetic during the working hours. The award was a recognition to the collective effort ofone and every GMDCian who have helped achieve this excellent upkeep of the premises. Ihope all the office premises across GMDC will strive to achieve this excellence taking thelead from the Corporate Office. Receiving the trophy on behalf of the Corporation, theTeam GMDC glowed with pride and cheer. I take this opportunity to congratulate theentire team for this success.

Stock Prices:

BSEFeb 20, 15:49

189.90-2.15 (-1.12%)

NSEFeb 20, 15:57

190.20-2.05

Key Financial Ratios of Gujarat Mineral Development Corporation

Mar1 Mar '11 Mar '10 Mar '09 Mar '08

Face Value 2.00 2.00 2.00 2.00 2.00

Dividend Per Share 3.00 3.00 2.50 2.00 2.00

Operating Profit Per Share (Rs) 23.82 23.03 15.56 14.80 35.18

Net Operating Profit Per Share (Rs) 51.28 44.49 33.49 30.73 61.64

Current Ratio 1.13 1.07 1.09 1.27 1.29

Debt Equity Ratio -- 0.08 0.15 0.39 0.63

Long Term Debt Equity Ratio -- 0.16 0.31 0.79 1.06

Inventory Turnover Ratio 25.93 56.39 36.56 51.12 66.02

Debtors Turnover Ratio 40.78 33.46 15.04 11.27 11.26


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COMPARATIVE ANALYSIS:

1)On the basis of Sales :

The sales of SESA GOA has consistently being high compare to that of GMDC

2)On the basis of Revenues:

Similarly like sales revenue too has consistently being high making SESA GOA amuch bigger company than GMDC

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Sales of SESA

Sales of GMDC

0.00 2,000.00 4,000.00 6,000.00 8,000.0010,000.00

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Revenue of SESA

Revenue of GMDC


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3)On the basis of Net Profit :

Except in 2003, the net profit of SESA GOA has always been higher . Moreover inthe last 5 yrs SESA GOAS net profit is around 5 times higher than that of GMDC.

4)On the basis of Total Assets:

Total assets of GMDC seems consistent throughout the last 10 years but that ofSESA GOA has always been increasing. Though assets of GMDC were higher from2003-2007, but from 2008 SESA GOA overtakes it and is around 3-4 times higherin the last 3 years.

0 1000 2000 3000 4000

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Net Profit oF Sesa

Net profit Of GMDC

0.00 5,000.00 10,000.00 15,000.00 20,000.00

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Total Assets Of SESA

Total Assets of GMDC


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5)On the basis of Total Expenses:

Since the sales, revenue, profit and assets of SESA GOA has been high, theexpenses of it is ought to be high.

STATISTICAL MEASURES AT A GLANCE:

SESA GOA:

MEAN MEDIAN STANDARDDEVIATIO

N

SKEWNESS COEFFICIENTVARIANCE

SALES3565.954 2794.465 2757.564 0.547986

77.330

REVENUE3687.028 2879.45 2858.908 0.539351

77.54O

NET PROFIT1238.488 1049.205 1087.087 0.790627

87.775

0 1000 2000 3000 4000

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Total Expenses of SESA

Taotal expenses of GMDC


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TOTAL ASSETS4963.791 2148.75 5773.472 1.208657

116.312

OPERATINGOVERHEAD

652.802 281.105 647.9629 0.81457999.259

DEPRECIATION 42.269 36.93 25.43417 0.774058 60.172

DIVIDEND171.526 167.29 115.2444 0.062142

67.188

TOTALEXPENSES

1572.916 975.07 1250.452 0.8608679.499

GMDC

MEAN MEDIAN STANDARDDEVIATION

SKEWNESS COEFFICIENTVARIANCE

SALES810.847 785.045 496.5479 0.572705

61.238

REVENUE833.773 822.965 486.683 0.474778

58.371

NET PROFIT204.05 169.76 148.8836 0.739195

72.964

TOTAL ASSETS1705.928 1762.27 250.3216 -1.21197

14.674

OPERATINGOVERHEAD

31.848 30.98 22.1487 -0.0260269.545

DEPRECIATION74.941 89.555 47.41832 -0.55216

63.274

DIVIDEND46.11 31.8 33.92 0.585709

73.563

TOTALEXPENSES

411.798 361.575 244.7232 0.661619 59.428


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STATISTICAL ANALYSIS

On the basis of MEAN :

The average of SESA GOA in all the aspects from Sales,Revenue, Net profit, Total assets, Operating overhead,Dividend, and Total expenses, has always been highcompared to GMDC which makes SESA GOA a bettercompany, but the average of Depreciation of GMDC is higherthan SESA GOA because they might follow a conservativepolicy.

On the basis of MEDIAN :

Median is the measure of central tendency. Like MEAN,MEDIAN of SESA GOA is better than GMDC except forDepreciation. The reasons may be the same thus SESA GOAholds a greater edge over GMDC

On the basis of CV :It is assumed that lower the CV better is the company. TheCV of GMDC is lesser compare to that of SESA GOA exceptthat in case of Depreciation and Dividend, making GMDC atouch better company than SESA on this basis (CV)

Bibliographywww.moneycontrol.com

http://www.sesagoa.com

http://www.gmdcltd.com
http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.sesagoa.com/http://www.sesagoa.com/http://www.gmdcltd.com/http://www.gmdcltd.com/http://www.gmdcltd.com/http://www.sesagoa.com/http://www.moneycontrol.com/


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Sesa Goa Versus Gmdc

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