PES UNIVERSITY

RR CAMPUS , BANGALORE

ACADAMIC YEAR:
2024-2025

DEPARTMENT OF COMMERCE

COURSE: B.com
Sem and Section: 2F

SUBJECT: MANAGEMENT ACCOUNTING

(UM23BC141B)

PRESENTED BY :
RAKSHITHA S

GUIDED BY:
ASST.PROF SANGEETHA S KUMAR
PES UNIVERSITY
 VEDANTA LTD
ABSTRACT
The mining and minerals industry plays a vital role in the development of the world economy
by supplying vital raw materials to a range of industries. One major participant in the mining
and minerals sector, Vedanta Limited, has had a big impact on the industry. This abstract
explores the prospects, problems, and wider ramifications of Vedanta's mining operations as it
dives into the complex realm of these operations. With a substantial position in the mining
and minerals industry, Vedanta Limited is a diversified natural resources corporation that is a
subsidiary of Vedanta Resources Limited. The corporation deals in a number of commodities,
such as oil and gas, zinc, lead, silver, copper, iron ore, and aluminium. With activities in
several nations, Vedanta is an important part of the worldwide supply of vital metals and
minerals.
The need to strike a balance between economic interests and environmental and social
responsibility is one of the main issues Vedanta faces in its mining endeavours. The
environmental effects of extractive industries, such as habitat destruction, water pollution,
and deforestation, are frequently a source of criticism. In response, Vedanta has made
investments in cutting-edge technologies and adopted sustainable mining methods to reduce
their negative effects on the environment. The company's attempts to acquire certifications
like ISO 14001 for environmental management demonstrate its dedication to ethical mining.
It is impossible to ignore Vedanta's mining operations' social component. Local communities
who live close to mining sites frequently see firsthand effects from the operations. It is a
difficult challenge to strike a balance between economic development and community well-
being, and Vedanta has occasionally come under fire for its community engagement
initiatives. However, in an effort to improve the lives of those living close to its operations,
the corporation has started a number of community development projects with an emphasis
on infrastructure, healthcare, and education.

Vedanta has a significant impact on economic factors. The GDP of the nations where the
company conducts business is greatly boosted by its mining operations. Vedanta also plays a
major role in supporting economic development in resource-rich areas by creating jobs and
investing in local economies. However, sustained economic success continues to face
difficulties due to the volatile nature of market dynamics and commodity prices. Beyond its
immediate financial benefits, Vedanta's mining portfolio is strategically significant. The
organisation proactively participates in mergers and acquisitions to broaden its pool of
resources and bolster its international market position. The strategy diversification of Vedanta
into new natural resources-related sectors is demonstrated by the acquisition of Cairn India, a
prominent oil and gas exploration business. Vedanta is in a position to take advantage of new
opportunities and adjust to changing market conditions because to its strategic agility. One of
the main forces behind Vedanta's mining operations is technological innovation. To maximise
the efficiency of the exploration and extraction processes, the corporation makes investments
in cutting-edge technology including data analytics, geospatial mapping, and remote sensing.
In difficult mining conditions, automation and artificial intelligence are essential for
improving operational effectiveness, minimising environmental impact, and guaranteeing
worker safety.

Vedanta is going beyond just improving operations with its digitalization initiative. The
business uses data analytics to forecast market trends, improve supply chain management,
and make well-informed decisions. This digital shift is in line with larger industry trends
towards Industry 4.0, where data-driven insights are playing a bigger role in mining
operations that are competitive and sustainable.
In summary, Vedanta Limited is a mining and minerals company that sits at the nexus of
social responsibility, environmental protection, and economic development. The company is
positioned as a major player in the global extractive industry thanks to its dedication to
ethical mining, technological innovation, and strategic diversification. Vedanta's influence on
the mining landscape will surely influence the direction of the industry in the years to come
as it manages difficulties and seizes opportunities.

INTRODUCTION
The global need for key metals and minerals is insatiable, driven by the ever-increasing
requirements of industries ranging from infrastructure to technology. Vedanta Limited has
evolved as a powerful competitor in this changing terrain, exerting enormous influence over
the mining and minerals sector. The company, a subsidiary of Vedanta Resources Limited,
deals in a variety of commodities, such as oil and gas, zinc, lead, silver, copper, iron ore, and
aluminium. This introduction clarifies Vedanta's position in the mining sector by examining
its history, areas of activity, and wider ramifications of its pursuits. Vedanta’s journey in the
field of mining and minerals sector began in 1976 after its establishment in India. As years
pass by the company as grown into a global natural resources which performs operations
spanning multiple countries . Vedanta was founded by Anil Agarwal , the company as been
through various strategic expansions and they diversity there portfolios that include a wide
range of commodities.

Vedanta's mining activities are diverse, encompassing a range of metals and minerals
essential to different industries. A vital component of Vedanta's operations, zinc is used to
produce alloys, batteries, and coatings that resist corrosion. Lead is used in batteries,
building, and radiation shielding; it is frequently harvested alongside zinc. As a byproduct of
extracting lead and zinc, silver is a valuable metal that adds to Vedanta's portfolio of precious
metals.

Another essential commodity for Vedanta is copper, which is essential for power generation
and transmission because it is used in electrical applications. One of the main components of
Vedanta's mining operations is iron ore, which is essential to the production of steel. The
company's aluminium operations meet the needs of the aerospace and automotive industries
for lightweight materials. Furthermore, Vedanta's entry into the oil and gas industry through
the purchase of Cairn India broadens its portfolio and demonstrates a calculated response to
the changing needs of the energy industry.

The mining sector has long been criticised for its negative effects on the environment, which
include habitat destruction, water pollution, and deforestation. Aware of these worries, Vedanta
has taken action to reduce its environmental impact. The company uses technology innovations
to reduce environmental harm while adhering to sustainable mining standards. Acquiring
environmental management certifications like ISO 14001 highlights Vedanta's dedication to
conscientious resource extraction. A careful balance between economic development and
community well-being is required since mining operations can have a direct impact on nearby
communities. In this sense, Vedanta has faced difficulties as a result of criticism of its
community participation initiatives. To improve the quality of life for those who live close to
its operations, the firm has started a number of community development projects, with an
emphasis on infrastructure, healthcare, and education. Vedanta's recognition of its
responsibilities as a steward of the areas in which it conducts business is reflected in its twin
commitment to social responsibility and economic development.
Beyond its direct operations, Vedanta has a considerable economic impact, augmenting the
GDP of the nations in which it conducts business. The company's mining operations boost
regional economies and create jobs. Nonetheless, the extractive sector is intrinsically
susceptible to changes in market conditions and commodity prices. The secret to Vedanta's
resiliency is its strategic adaptability, which has been shown through acquisitions and mergers
that improve its market positioning and resource base. In order to achieve operational
excellence, Vedanta makes significant investments in cutting-edge technology. The operations
of exploration and extraction are made more efficient by the use of cutting-edge technology
like data analytics, remote sensing, and geographic mapping. Artificial intelligence and
automation are essential for improving operational effectiveness, protecting worker safety,
and lessening environmental impact. Vedanta's digital transformation goes beyond operations
to include supply chain optimisation, data-driven decision-making, and other wider ideas.
Vedanta is confronted with a changing environment as it pursues its goals in the mining and
minerals sector, one that is characterised by shifting regulations, unstable geopolitical
conditions, and shifting public expectations. The industry's shift to a low-carbon economy
highlights the importance of sustainable practices even more. Vedanta's future trajectory and
the extractive industry as a whole will be greatly shaped by its capacity to innovate, adapt,
and overcome these obstacles.

In summary, Vedanta Limited is a dynamic force in the worldwide mining and minerals
industry that embodies accountability, innovation, and diversity. The company's history, from
its beginnings to its many activities now, emphasises its contribution to economic growth and
its role as a guardian of social and environmental obligations. Vedanta's narrative unfolds at
the nexus of resource development, sustainable practices, and strategic vision as it continues
to traverse the intricacies of the extractive business.

BACKGROUD OF THE
COMPANY:
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is a multinational natural
resource business based in Mumbai, India. Anil Agarwal started the business in 1976, and it
has since expanded to become a major player in the mining and minerals industry with
operations in several nations. The parent business, Vedanta Resources Limited, is included in
the FTSE 250 Index and is traded on the London Stock Exchange.

EARLY YEARS OF VEDANTA :

The history of Vedanta began when it was founded as a little electrical conductor company in
India in 1976. The company's visionary founder, Anil Agarwal, steadily broadened the
company's portfolio to encompass a variety of commodities after realising the potential in the
natural resources industry. The groundwork for Vedanta's subsequent explorations of other
vital metals and minerals was established by its early emphasis on zinc and lead.

GLOBAISATION AND DIVERSIFICATION:

Vedanta has undergone numerous strategic diversification , expanding there operations
internationally to become a global naturals resources conglomerate . The growth of the
company is focused upon acquisitions and strategic investments in various other sectors.
Vedanta is significantly

Operating as a subsidiary of the holding firm, Vedanta Resources Limited, is Vedanta

Limited. The corporate structure is intended to supervise and manage a wide variety of
activities involving various commodities and geographical areas. The company's joint
ventures and subsidiaries support its overall business plan by enabling it to take advantage of
synergies across a range of natural resources-related industries.

Vedanta has encountered criticism and difficulties throughout the years about the effects its
mining activities have had on the environment and society. As a result, the business pledged
to implement ethical and sustainable mining techniques. Vedanta places a strong emphasis on
social responsibility, environmental stewardship, and community involvement. It aims to
strike a balance between economic development, local community well-being, and
environmental preservation.

In India, Vedanta Limited is traded on the National Stock Exchange (NSE) and the Bombay
Stock Exchange (BSE). Because of its substantial influence on the mining and minerals
industry, the company's financial performance is widely monitored in the financial markets.
Being a publicly listed business highlights Vedanta's accountability and openness to investors
and the larger financial community.

In brief, Vedanta Limited has progressed from its modest inception in the electrical conductor
industry to emerge as a multifaceted worldwide participant in the mining and minerals
domain. Acquisitions, a dedication to sustainability, and strategic diversification have all
contributed to the company's growth. Vedanta's story is being told at the nexus of strategic
vision, operational excellence, and responsible resource management as it continues to
negotiate the challenges of the natural resources sector.

INDUSTRY ANALYSIS:
COMPANY PROFILE:
BOARD OF DIRECTORS:
The list of board of directors of Vedanta company are:
1. Mr. ANIL AGARWAL (Founder and chairman)
2. Mr. NAVIN AGARWAL (Vice Chairman)
3. Mr. G.R.ARUN KUMAR (Whole-time Director)
4. Ms. PRIYA AGARWAL (Non – executive Director)
5. Mr. AMAN MEHTA (Independent Director)
6. Mr. U.K SINHA (Independent Director)
7. Ms. LALITA GUPTE (Independent Director)

GOVERNANCE POLICIES AND PRACTICES:

In order to guarantee corporate accountability, corporate governance is predicated on
a collection of regulations, policies, and processes. When implemented properly, it
creates a structure for achieving a business's goals across all management domains. It
acknowledges the significance of stockholders as well.

Some of the governance policies and practices that are associated with Vedanta
limited are :

1. BOARD COMMITTEES:
Vedanta usually has a number of board committees, including the Corporate Social
Responsibility (CSR) Committee, Nomination and Remuneration Committee, and
Audit Committee, to handle different areas of governance.

2. RISK MAMAGMENT:
To recognise, evaluate, and control risks related to its business activities, Vedanta
probably has a strong risk management system in place. The board of the corporation
or a special committee may be in charge of risk management initiatives.

3. STAKEHOLDER ENGAGMENT:
Vedanta understands the value of interacting with all of its stakeholders, including
communities, employees, shareholders, and government agencies.
The business might have systems in place for keeping stakeholders informed on a
regular basis.

4. SUSTAINABILITY AND ENVIRONMENTAL PRACTICES:

Vedanta probably has policies and procedures centred on environmentally conscious
and sustainable business operations given its involvement in the natural resources
industry. The business might follow global certifications and norms for environmental
management.
 5. CORPORATE SOCIAL RESPONSIBILITY:
Vedanta usually participates in CSR initiatives, promoting social welfare and
community development. The business can have a CSR policy that details its efforts
and commitments in this area.

6. COMPLIANCE AND LEGAL FRAMEWORK:

Vedanta complies with all legal and regulatory obligations in the areas in which it
conducts business. It's likely that the business has a system in place to monitor and
guarantee compliance with relevant laws and regulations.

FINANCIAL OVERVIEW:

Financial data for companies is typically collected in quarterly and annual reports and its
recommended to refer to the latest financial statements, reports and discloses the current and the
accurate financial overview .

Some of the components of the financial overview are:

1. Statement of Balance:
Analyse the balance sheet's assets, liabilities, and equity to determine the
company's financial situation.
Total assets, total liabilities, and shareholders' equity are important elements.
 2. Returns to shareholders:
Use measures such as dividend yield, share buybacks, and total shareholder return
to assess returns to shareholders.

3. Highlights of the Operation:

Examine operational parameters in the relevant industries, such as sales,
production volumes, and capacity utilisation.

4. Prospects and Advice:

Observe the company's perspective, forward-looking statements, and any
performance forecasts it may provide.

5. Risk factors:
Recognise any hazards that the company may have disclosed in its financial
reports, such as those related to the market, regulations, and difficulties unique to
the industry.

ANALYSIS AND
INTERPRETATION:
The purpose of the analysis is to find out the strategic planning , operational
efficiency and the decisions on investment marketing , this analysis also shows the
competitive positioning and the market perception.

1. Evaluation of Risk:
Market, regulatory, and commodity price concerns are only a few of the hazards that
Vedanta's business faces. Analysis aids in detecting and evaluating these risks.Making
risk-adjusted decisions is made easier for investors and stakeholders when they are
aware of risk variables.

2. Planning Strategically:
Vedanta's management uses company analysis to help with strategic planning and
decision-making. Setting financial targets, creating business plans, and coordinating
the organization's aims with industry trends are all aided by it.

3. Efficiency of Operations:
Analysis can be used by Vedanta's internal stakeholders, including as management
and staff, to evaluate and enhance operational efficiency. Sustainable operations
 depend on identifying opportunities for resource optimisation, process improvement,
and cost reduction.

4. Taking a competitive stance:

Analysing competitors in the industry helps Vedanta comprehend its competitive
positioning.
The organisation can assess its strengths, weaknesses, opportunities, and dangers by
benchmarking against its rivals.

5. Communication with Stakeholders:

A foundation for open and efficient communication with stakeholders is provided by
the analysis. Vedanta can convey its financial performance, strategic ambitions, and
outlook for the future through the use of financial reports and research.

TOOLS USED FOR ANALYSIS:

TABLE - 1: Income statement

31-03-2011(US $ 31-03-2010(US $
PARTICULARS million) million)
Revenue 11,427.20 7,930.50
Cost of sales -8,107.00 -5,761.10
GROSS PROFIT 3,320.20 2,169.40
Other operating income 73.90 87.8
Distribution costs -319.60 -229.5
Administrative expenses -376.70 -294.8
Special items -163.5 -67.3
OPERATING PROFIT 2,534.30 1,665.60
Investment revenue 431.60 272.8
Finance costs -534.70 -236.6
Other gains and losses(net) 252.10 139.8
PROFIT BEFORE TAX 2,683.30 1,841.60
TAX -649.50 -330.4
PROFIT FOR THE YEAR 2,033.80 1,511.20
 Source: VEDANTA resources PLC published data

TABLE -2: BALANCE SHEET

31-03-
2011(US $ 31-03-2010(US
PARTICULARS million) $ million)
LIABILITIES
Current liabilities
Short-term borrowings -3,045.10 -1,012.60
Trade and other payables -3,407.50 -2,559.20
Other current financial liabilities (derivatives) -9.3 -38.5
Provisions -22.8 -0.9
Current tax liabilities -68.2 -71.7
-6,552.90 -3,682.90
NET CURRENT LIABILITIES 4,536.80 5,766.10
Non- Current liabilities
Medium-and long-term borrowings -4,435.90 -4,383.20
Convertible bonds -2,271.50 -2,777.80
Trade and other payables -148.10 -306.40
Other financial liabilities (derivatives) -94.20 -44.70
Deferred tax liabilities -1,348.10 -1,209.30
Retirement benefits -56.80 -36.60
Provisions -301.50 -167.60
Non-equity non-controlling interests -11.90 -11.90
-8,668.00 -8,937.50
TOTAL LIABILITIES -15,220.90 -12,620.40

ASSETS
Non-current assets
Goodwill 12.2 12.2
Intangible assets 162.1
Property, plant and equipment 17,189.50 14,326.70
Financial asset investments 304.2 201.2
Other non-current assets 24.6 18.3
Other financial assets (derivatives) 99.4 43.7
Deferred tax assets 18.2 8.9
17,810.20 14,611.00
Current assets
Inventories 1,924.60 1,260.60
Trade and other receivables 1,328.60 923.6
Other current financial assets (derivatives) 40.9 10.4
Liquid investments 6,865.40 6,849.40
Cash and cash equivalents 911.60 390
Current tax assets 18.60 15
-6,552.90 -3,682.90
TOTAL ASSETS 4,536.80 5,766.10

INTERPRETATION WITH
CHARTS AND
DIAGRAMS:
The above pie chart shows the revenue breakup various departments in Vedanta
ltd . This chart shows the more revenue is spent on aluminium segment than any
other segments so , the company is more concentrated about aluminium
segments than other segments. Vedanta ltd spends the least percentage of there
revenue on Zinc and iron ore.
 FINDINGS AND
SUGGESTIONS
FINDINGS:
1. Sustainable Methods:
There is a clear emphasis on environmentally responsible mining methods and
environmental stewardship. Persistent endeavours to mitigate the ecological
footprint and secure pertinent certifications would fortify Vedanta's dedication to
sustainability.

2. Innovation in Technology:
Vedanta has demonstrated its dedication to innovation through its technological
initiatives, which include data analytics and remote sensing. Operating efficiency
can be further increased by maintaining a focus on implementing Industry 4.0
technology and utilising data-driven insights.

3. Positioning in the Market:

Strategic purchases like Cairn India show how flexible Vedanta is in response to
changing market conditions. Proactive positioning and routine evaluations of
market dynamics can assist the business take advantage of new opportunities.

4. Structural Resilience in Money:

Vedanta's financial performance is dependent on changes in commodity prices. To
overcome market volatility, strong financial structures and effective risk
management techniques are essential.

5. Diversification of Operations:
One of Vedanta's advantages is its diverse portfolio, which includes oil and gas,
zinc, lead, silver, copper, iron ore, and aluminium. It is essential to keep
concentrating on operational effectiveness in all of these areas.
SUGGESTIONS:
1. Communication with Stakeholders:
Boost stakeholder communication while maintaining reporting transparency.
Communicate often with regulators, investors, and the community to give them
updates on the operations, projects, and long-term plans of the organisation.

2. Strategies for Diversification:

To further diversify the business portfolio, think about investigating additional
commodities or marketplaces. Examine prospects in developing industries that
fit Vedanta's experience and strategic objectives.

3. Risk Control:
Improve risk management procedures, particularly in reaction to governmental
and geopolitical shifts. Evaluate and reduce risks related to market dynamics and
commodity price volatility on a regular basis.

4. Employee Advancement:
Invest in training initiatives for staff members to guarantee a knowledgeable and
driven team. This covers educational courses, professional growth opportunities,
and projects that support health and safety at work.

5. Digital Conversion:
To further improve operational efficiency, safety, and sustainability, carry on
with the digital transformation path by investigating cutting-edge technologies
like artificial intelligence, automation, and the Internet of Things (IoT).
CONCLUSION:
Vedanta is involved in the exploration, production, and processing of various natural
resources. Its business segments include metals and mining, oil and gas, zinc, aluminium,
copper, iron ore, and power. The company has a significant global presence with operations
in multiple countries, including India, Zambia, South Africa, Namibia, Australia, and Ireland.
Vedanta's financial performance is characterized by its revenue from diverse sectors. The
company's profitability and financial health are influenced by commodity prices, market
demand, and global economic conditions. Vedanta has undertaken strategic initiatives,
including mergers and acquisitions, to expand its business and diversify its operations.
The company emphasizes corporate governance, with a structured board, transparency, and
accountability measures in place.

Vedanta Limited, a diversified natural resources company, has played a significant role in the
metals and mining, oil and gas, and other sectors. The company's global presence and diverse
portfolio have allowed it to navigate various market conditions and capitalize on
opportunities in the natural resources industry. Vedanta's commitment to corporate social
responsibility, sustainability, and innovation has positioned it as a responsible player in the
sector.

Vedanta has difficulties with market volatility, regulatory compliance, and environmental
concerns, just like any other business in the natural resources sector. Vedanta's prospects for
the future could be influenced by its capacity to adjust to changing market trends, take social
and environmental issues into account, and efficiently manage operational risks.

To provide a more educated assessment of Vedanta's current position and future prospects,
stakeholders and investors should keep a careful eye on the company's financial performance,
strategic initiatives, and responsiveness to shifting market conditions. Furthermore, keeping
up with advances in the business, modifications to regulations, and state of the world
economy will be critical to fully comprehending Vedanta Limited's future.

REFERANCES:
(MONEYCONTROL)
(BV Krishnamurthy)

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