The Board of Directors presents the Annual Report of the Company
 together with the Audited Statements of Account for the financial year
 ended 31st March, 2011.
 
 This report, therefore, is drawn for the Company on a stand-alone
 basis.
 
                                               2010 -2011    2009 -2010
                                                 (Rs. in      (Rs. in
                                                  crore)       crore)
 
 Profit before provisions for depreciation       4,468.93      2,715.47
 and tax
 
 Less: Depreciation                                 83.13         57.38
 
 Provision for Tax
 
 - Current Tax                                     963.00        538.00
 
 - Deferred Tax                                   (10.00)          2.00 
 
 Profit 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 
 
 Profit available for appropriation              4,013.98      2,213.66
 
 Appropriations
 
 Proposed dividend/final dividend                  304.18        270.06
 
 Tax on distributed profit                          49.35         45.90 
 
 Dividend for 2009-10 in respect of Foreign 
 Currency Convertible Bonds converted during 
 the year (inclusive of dividend tax of Rs.          9.85             -
 0.51 crore)  
 
 Dividend to shareholders of erstwhile Sesa 
 Industries Limited on amalgamation (inclusive 
 of dividend tax of Rs. 1.83 crore)                 12.88             -
 
 General Reserve                                 2,500.00      1,600.00
 
 Balance carried to Balance Sheet                 1,13772        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 profit after tax for the group for the
 year ended 31st March, 2011 is Rs. 4,222.45 crore as against Rs.
 2,639.04 crore for the previous year. The basic earnings per share (of
 Rs. 1 each) (excluding minority interest) works out to Rs. 49.17 as
 against Rs. 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 Rs. 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 Rs.  11.75 per share of face value of Rs. 1/-. As a result of
 allotment, the paid up share capital of the Company has gone up from
 Rs. 859,702,559 to Rs. 869,101,423.
 
 Consequently, the figures of the Pig Iron segment for 2010-11 were
 incorporated in the company’s results in the quarter ended 31st March,
 2011. The figures 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 Rs. 3.50 per
 equity share of Rs. 1/- each for 2010-11, as against Rs. 3.25 per
 equity share of Rs. 1/- each declared in 2009-10.
 
 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     Qty. in     Value in    Qty. in     Value in
 net of freight)           million     Rs. crore   million     Rs. crore
                           tonnes                  tonnes
 
 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         -           -
 
 Profit after Tax              -           3,433         -        2,118
 
 * Includes 0.312 mt (amounting to Rs. 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 affected 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
 notification 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 suffered from production
 shortfalls due to heavy rainfall; while in India, the export ban in
 Karnataka affected 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 Rs. 5,170 crore in 2009-10 to Rs. 8,387 crore in 2010-11.
 
 On the cost front, there were some developments that adversely affected
 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 fines from 5% to 20%. Despite these external adversities, the
 Company maintained its margins and delivered strong profits.
 
 Your Company has successfully integrated the Sesa Resources (erstwhile
 Dempo) iron ore operations that were acquired in the previous financial
 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 certified as per JORC standard.
 
 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 Rs. 552 crore in 2009-10 to Rs. 674 crore in 2010-11. Pig Iron
 profits before interest, tax, dividends and other non-recurring or
 non-allocable incomes for the pig iron business increased by 21% to Rs.
 141 crore in 2010-11
 
 External sales revenues of met coke increased by 6% to Rs. 152 crore in
 2010-11 and profits before interest, tax, dividends and other
 non-recurring or non-allocable incomes for the met coke business
 increased by 161% to Rs. 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
 Offer. If there is insufcient take up in the Open Offer, 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 billion.
 
 Sesa Goa received the clearance from Securities and Exchange Board of
 India (“SEBI”) to proceed with the open offer of up to 20% of the
 shares of Cairn India, post which your company launched the open offer
 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 Rs. 331 per share through bulk deal on
 Bombay Stock Exchange Limited. This acquisition is in addition to the
 Open Offer 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 Rs. 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 deficit 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 affect 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 efficiencies 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.
 
 ISO Certification
 
 All the certificates 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 Rs. 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 efforts have significantly 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
 floriculture and the cultivation of other forest products.
 
 Sesa Goa accords high priority to the safety of its employees.
 Conscious efforts 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 Efficient 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 Afforestation 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.
 
 Fixed Deposits
 
 As reported last year, the Company has discontinued renewal of its
 fixed deposits on maturity. As on 31st March, 2011, all fixed deposits
 had matured. 11 deposits amounting to Rs. 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 defined under the Monopolies and
 Restrictive Trade Practices Act, 1969, controls the Company. A list of
 its group entities is given below:
 
 Sr.  List of Vedanta Group Companies                Country of
 No                                                  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
 
 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       Mauritius 
    Limited
 
 39 Twinstar Energy Holdings Limited - Former        Mauritius 
    THL Aluminium
 
 40 THL Zinc Limited - Former KCM Holdings           Mauritius 
    Limited
 
 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
 
 
 Directors’ Responsibility Statement
 
 Your Directors confirm 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 affairs of the Company at the end of the financial year ended 31st
 March, 2011 and of the profits of the Company for that year;
 
 (iii) proper and sufficient 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, offer
 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
 office up to the ensuing Annual General Meeting, and being eligible,
 offer 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 Certificate
 
 A certificate 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 confirms 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 confidence
 and support to its Management.
 
                          For and on behalf of the Board of Directors
 
                          G. D. Kamat           P. K. Mukherjee
                          Director              Managing Director
 
 Place: Panaji-Goa 
 Dated: 25th April, 2011