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WEST COAST PAPER MILLS DANDELI

EXECUTIVE SUMMARY

The project was undertaken in West Coast Paper Mills, Dandeli. as a part of BBA
program With the objective to study “ SPECILAZATION STUDY” in the company.
This report gives information about “SPECILAZATION STUDY”.

The study was conducted systematically. The primary data required for the study was
obtained from employees with the help of structured questionnaire which was given to
employees randomly. The secondary data was collected through company handbook & old
projects. The study was limited to 1 month. The study is intended to evaluate to
SPECILAZATION STUDY the employees in the organization. A good labour welfare
facilities procedure is essential to achieve goal of the organization.

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INTRODUCTION

Dividend is the part of profit of a company which is distributed by the company among its
shareholder.

The dividend payout ratio is a financial term used to measure the percentage of net income
that a company pays to its shareholder in the form of dividend.

The payout ratio is important because it tells investors how much of the company profits
are being given back to the shareholder.

The dividend payout ratio is the ratio of the total amount of dividend paid out to
shareholder relative to the net income of the company. It is the percentage of earnings paid
to shareholder in dividends. The amount that is not paid out to shareholders is retained by
the company to pay off debt or to reinvest in core operation.

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Objective of study

 To study the organization structure of the WCPM.

 To compare the last 4 years financial performance of WCPM with special


reference to dividend payout ratio.

 To analyze the reason for increase/decrease in the dividend of the company.

 To know the how much dividend should a company distribute to its shareholder.

 How will be the impact of the dividend on share of the price of the company?

 What will happen if the amount of dividend changes from year to year?

Scope of study

Scope of the study to organization.it is exclusively conducted at west coast paper mills
Dandeli.it covers a study on four years balance sheet and profit and loss account. This
study also covers in details about the company in general and about cost-analysis.

Need of study

The study of carried forward to know about the company’s dividend payout ratio. To
know the changes for yearly.

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LIMITATION OF STUDY

 Company is very rigid in providing the required information.

 There was lack of co-operation of department heads. As they were less co-
operative.

 As all the aspects of accounts and finance are secret they don’t disclose it to
outsiders.

 As the corporate office is in Bangalore, no much of the financial aspects is


available here.

 Since Company’s major investment decisions are confidential they are not
disclosed to outsiders.

 As expansion work is in full swing it’s hard to get the required data.

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METHODOLOGY:-

Data collection:-

There are two types of data.

1. Primary data

2. Secondary data

1. Primary data:

Primary data are the data’s collected for the first time and are not available in the
secondary source. The necessary relevant information has been collected through
discussions with the concerned department people.

2. Secondary data:

Secondary data are the data’s that are developed for some purpose other than helping to
solve the problem at hand.

The data collection method in this project is of by using the both primary and secondary
sources of data such as discussions with the concerned department people and company’s
annual reports, balance sheet, Profit and Loss account.

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Industrial Profile

The Indian Paper Industry is a booming industry and is expected to grow in the years to
come. The usage of paper cannot be ignored and this awareness is bound to bring about
changes in the paper industry for the better. It is a well-known fact that the use of plastic is
being objected to these days. The reason being, there are few plastics which do not possess
the property of being degradable, as such, use of plastic is being discouraged. Excessive
use of non-degradable plastics upsets the ecological equilibrium.

What keeps the Indian Paper Industry rolling?

In order to keep the Indian Paper industry rolling, the foremost thing which must be kept
in mind is the availability of the raw materials. Every possible effort is to be made to take
India at par with the other paper industries of the world. Application of paper is varied and
one cannot think of a life without paper. The raw materials need to be of good quality.
There should be enough modernized techniques to carry out production. Reducing costs
should be accompanied by low cost of production. Policies should be implemented to
bring about optimum production.

Softwood producing wood fibers make up the main raw material in the manufacturing
process worldwide. China and India are excluded from this category. The reason being
wood products availability is meager. Instead, straw, bagasse which are obtained as
residues from the agriculture industry are used for the production of paper. Indian paper
industry uses used paper for the manufacturing of paper after recycling. It has been
estimated that around 40% of paper used is recycled.

Introduction on Paper Industry:

The new millennium is going to be the millennium of the knowledge. So demand for paper
would go on increasing in times to come. In view of paper industry's strategic role for the
society and also for the overall industrial growth it is necessary that the paper industry
performs well.

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Government has completely deli censed the paper industry with effect from17th July,
1997. The entrepreneurs are now required to file an Industrial Entrepreneur Memorandum
with the Secretariat for Industrial Assistance for setting up a new paper mill or substantial
expansion of the existing mill in permissible locations.

The Paper industry is a priority sector for foreign collaboration and foreign equity
participation up to 100% receives automatic approval by Reserve Bank of India. Several
fiscal incentives have also been provided to the paper industry, particularly to those mills
which are based on non-conventional raw material.

Capacity, Production, Raw material and Import:-

39.2 per cent based on wood there are, at present, about 515 units engaged in the
manufacture of paper and paperboards and newsprint in India. The country is almost self-
sufficient in manufacture of most varieties of paper and paperboards. Import, however, is
confined only to certain specialty papers. To meet part of its raw material needs the
industry has to rely on imported wood pulp and waste paper. Production of paper &
paperboard during the year 2002-03(up to December, 2002) is 24.52 lakhs tones. At
present about 60.8 per cent of the total production is based on non-wood raw material and.

Performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of
mills in one particular area.

Several policy measures have been initiated in recent years to remove the bottlenecks of
availability of raw materials and infrastructure development. To bridge the gap of short
supply of raw materials, duty on pulp and waste paper and wood logs/chips have been
reduced. The capacity utilization of the industry is low at 60%. About 194 paper mills,
particularly small mills, are sick and /or lying closed. Several policy measures have been
initiated in recent years.

Imports of paper and paper products were growing over the years. However, it has
increased during 2001-02 after a fall in 2000-01. About 1, 40, 000tons of paper was
exported in 2000-01 mainly to the neighboring countries.

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India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in
the world. With the expected increase in literacy rate and growth of the economy, an
increase in the per capita consumption of paper is expected.

Outlook:

The demand for upstream market of paper products, like, tissue paper, tea bags, filter
paper, light weight online coated paper, medical grade coated paper, etc., is growing up.
These developments are expected to give fillip to the industry.

Indian paper industry needs the following for being globally more competitive.

1. Sustained availability of good quality of raw materials (forest based) and bulk
import of waste paper to supplement the availability of raw materials.

2. Adequate modernization of the manufacturing assets.

3. Improvement of the infrastructure.

4. Quality improvements and reduction in cost of production

5. Import policy conducive for import of material, equipment, instruments, raw


materials & technologies which are bearing of the quality and environment.

Based on the recommendations made in the Report and in consultant with the industry
Associations, action plans are being finalized in consultation with other
Ministries/Departments concerned. The Main Action Points proposed are as under:

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Infrastructure

Improvements of key ports, roads and railways and communication facilities which will
help the entire industrial sector including pulp & paper

Raw Material

(i) For Wood Based industry

Revision of forest policy so that plantation can be raised by industry/Cooperatives of


farmers/State Government. Degraded forest land to be made available to the industry for
raising plantations.

(ii) For Waste Paper based Industry

Import of waste paper at minimum import duty. Introduction of Eco labeling system where
in products made from recycled fiber are rated higher than the products made from virgin
fiber. Introduction of modern and effective collection and grading system.

(iii) For Agro Based Industry

Funds to be made available for technology up gradation for handling & processing of agro
residue fiber, in small & medium scale industries.

Government Policies

Accelerated depreciation to partially mitigate high capital intensity. Allow duty free
imports of new & second hand machinery/equipment for Technology Up gradation.

Energy Policy:-Better availability & quality of coal. More uniform Energy Policy by
States.

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COMPANY PROFILE OF THE WCPM LIMITED:-

 Name of the Company : The West Coast Paper Mill Limited.

 Location : Dandeli

 Date of establishment : 22/03/1955

 Chairman and Managing Director : Shri. S.K.Bangur

 Executive Director : Shri. Rajendra Jain

 Board of Directors : Smt.Shashi Devi Bangur

: Shri. Saurabh Bangur

: Shri.Premal Kapadia

: Shri. U Bhattacharya

: Shri.Amitav Kothari

: Shri.Krishna Kumar Karwa

: Shri.M.P.Taparia

 Telephone : 08284-231391

 E-mail : www.westcoastpaper.com

 Registered office : P.B.No 5, Bangurnagar, Dandeli

 Banker’s : Syndicate Bank, State Bank of Mysore,

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Mission

To attain customer loyalty by providing the highest standards of quality products suitable
for various business segments and for all age groups across India and the world.

“To design, to manufacture and to market quality products at competitive prices to the
entire satisfaction of the customer and attain market leadership through continual
improvement.”

To focus on innovative production processes through constant research and development


as well as to use a raw material and technology that is environment friendly and that
further caters to the interests of the future generations

Vision

“To excel in serving the growing demands of paper and paper products worldwide and
enhance shareholder value with consistent and sustained performance.”

GOAL

“To meet the standards set by corporate with efficiency and effectiveness.”

Philosophy:-Eminent industrialists are at the helm of WCPM, steering its destiny towards
a future envisioned by its founders. We believe in nurturing an atmosphere of creativity
and innovation besides maintaining a disciplined approach while striving relentlessly
towards our goals. Since its establishment in 1955, we, at WCPM, have focused on the
growth of the Company, along with the growth and development of our nation. In order to
realize our dreams and dreams of thousands of our stakeholders, we have made intensive
forays into technological research that empowers us to augment our growth.

WCPM has evolved itself into a robust, dynamic and forward looking industry in the
course of the last sixty one years. The Company owes its indebtedness to you for your
constant support and encouragement that have inspired a momentum within us to go ahead
with our dreams. We envision a bright future for our great nation and strive hard to
achieve the same through synergy, innovation and hard work in our chosen sphere. What

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we are at WCPM today is a result of thousands of hands working together to build this
company that in turn serves the nation in its growth and development.

The government has supported us in our endeavors’ to build a strong industry, while we
have supported our nation by providing quality paper products that serve numerous other
industries like printing, publishing, writing and packaging. Our fundamentals are so strong
that even when the world was hit by recession, we have successfully maintained our
stability through our vision and strength.

Often we hear that the present civilization will become a paperless civilization in the near
future. However, we believe that this idea will take many more years to become a reality
in India due to less access to technology such the Internet, boost to primary education, and
the tradition of keeping a hard copy of all important documents in all workplaces.Further,
a paperless society will not happen in future so easily as books will continue to get
published and all the products will need to be packaged. This leaves us with a vast
opportunity and hence, over the years, we aim to increase our turnover rate through
incremental sales.

The increasing demand for paper is fuelled mainly by the demand in developing countries,
in particular in Asia and Africa, while the demand for paper has decreased in developed
countries all over the world. WCPM has acted proactively to identify the market trend and
augmented its capacity on time. Therefore, we are poised to gain from the first-movers
advantage in the paper market

WCPM has invested wisely in securing raw materials, focusing on research in


technological development, complying with government policies on environment, and
locking in capital requirements. We have started getting results from these investments
already in the form of increased profits, greater customer satisfaction, and a healthier
environment.

Further, we believe that vast vistas of opportunities lie ahead of us. At this exciting hour,
when we are on the threshold of premium segment in the industry, I would like to thank all
our stakeholders for their continued co-operation. With all our commitment to hard work,
desire for innovation, and an ambition to be the best, the future belongs to us.

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INFRASTRUCTURE

Infrastructure & Facilities

Location: West Coast Paper Mill Ltd. is located at Dandeli town in Uttara Kannada
District in Karnataka on at Alnavar Junction, with railway lines that run up to the factory.
We have additional 240acres of leasehold land. The mill is connected through a broad
gauge railway line on Miraj-Bangalore section 80acres of leased land for projects like
railway siding, effluent treatment plant, and so on.

Raw Material: Wood derived from Casuarina, Eucalyptus, Subabul, Acacia and other
hardwood is the 100% ingredient for manufacturing paper in our units. In 1989, the use of
bamboo for paper production was disallowed by the National Forest Policy

In order to manufacture some specialty papers, WCPM imports pine wood pulp in small
quantities. Our paper mill consumes about 9, 50,000 MT of raw material per year. For raw
material we are dependent-to a great extent-upon the private cultivators in Karnataka,
Tamil Nadu, Andhra Pradesh, and Pondicherry. We strictly adhere to the eco-friendly
environmental norms.

Water: At WCPM, we require about 68000 KL of water per day, which is drawn from
the river Kali. We use pure and potable water having low iron content for manufacturing
paper.

Power: We use both self-generated and purchased power for production purposes.
Complete self-sufficiency has been achieved in power generation. We also have surplus
power capacity up to 20 MW. Apart from self-generation, we also have the provision for
grid connectivity of 8250 KVA. Our captive power generating capacity is 74.80 MW.

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Steam: Our requirement of steam for manufacturing paper is met by four coal fired FBC
boilers with a steam generating capacity of 330 Mt/Hr and two chemical recovery boilers
with a capacity of 258 Mt/Hr.

Quality Control/Central Laboratory: For quality control and research on raw material
and processes, we have a fully equipped research lab near the Paper mill. The Central
laboratory carries out detailed analysis of water, process materials, effluent stack gases,
and intermediate product. Our quality control laboratory focuses on complaints, customer
service, product development, testing, inspection, and monitoring of products and
processes.

Research and Development Center: WCPM has set up a separate Center for research
and development purposes in order to carry out research on various activities using
modern facilities.

Industrial safety: In order to ensure the safety and security of all our employees, we have
set up a fully equipped Safety Department having trained and qualified professionals. We
have andour production standards meet the requirements set by the Pollution Control
Board for the treatment of air and water based effluents. The Consents under Air and
Water Acts granted by brigade of our own and have positioned hydrants at strategic
locations throughout our manufacturing unit. At WCPM, we are striving hard to reduce
water consumption for paper manufacturing. Karnataka State Pollution Control Board is
valid.

Social Activities: We maintain a self-sufficient colony with temple, shopping complex,


hospital, club, theatre, cable TV network, and gym. Dandeli Education Society is our
education wing through which we run schools, two colleges for Pre University and Degree
courses, and Post-graduation courses in Paper and Pulp Technology, Chemistry and
Commerce.

Labour: We have employed 2,379 individuals as on 31 March, 2016.

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QUALITY POLICY

Certification

ISO 9001 (200) Quality management System

The company is certified to ISO 9001 (200) International Standard Quality Management
System (QSM) by Det Norkse VERITAS, the Netherlands, The company is fully
committed continually improve upon the implemented QMS for various operational
processes services as a long term strategy

OBJECTIVES

 To maintain the quality of the products

 To safety its customers

 To increase the market shares & attain market leadership

 To manufacture products with less manufacturing cost with the increase in


production

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ACHIEVEMENTS OF THE COMPANY:

 First in Asia to install twin-wire Papri Former paper machine

 First in India to use synthetic wire on paper machine

 First in India to install Drum chipper ( Supplied by Pall man, Germany), Disk
Refiners ,Rotary Lime Kiln

 to reburn lime sludge ,330 TPD Sides chemical recovery Boiler and FBC Coal-
fired Boiler

 First in India to establish and use sulphuric acid as a protective agent in


conventional bleaching

 First in India to use 100% hardwood in place of 100% bamboo

 First to have well equipped Research Centre attached with paper mill

 First to have captive plantation

 First to have chemical recovery boiler of 500 Solids per day capacity

Manufacturing Process of paper involves 4 steps:-

 Chipping

 Pulping

 Chemical Recovery

 Paper Making

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Chipping:-

Bamboo, Eucalyptus & hardwood are used for manufacture of paper pulp. Multi knife
chipper’s clip bamboo and hardwood chips are then screened and conveyed by Bert
converter or blown by blowers into chip silos for shortage of different wood pieces.

Pulping:-

From chip silo the chip and blown over the digester where they are cooked by sulphate
process. The resultant pulp is blown under steam pressure into blow tank, heat from
blown off steam is recovered in high efficiency heat exchange. The unbleached pulp
free knot is washed over multistage vacuum washing plant. After washing the pulp is
screened and cleaned to remove uncooked material, sand and other foreign material.
Finally bleached pulp is taken thicket and stored in storage chests or high density tower
for manufacturing bleached variety of paper.

Chemical Recovery:-

The liquor which consists of non cellulose material from bamboo and hardwood and
cooking chemicals are collected in seal tanks while the pulp is being washed or blown
stock vacuum drum washers. The spent liquor is then evaporated in multistage
evaporation plant to remove excess amount of water mixed during the washing of pulp.
He steam generated and it is utilized for process performance. The smelt from the
recovery furnace dissolved into water or weak white liquor solution. The white liquor
that is the mixture of caustic soda and sodium sulphate is sent to the digester for
cooking of bamboo and hardwood. The underflow sludge from clarifies is washed in
the multistage and washer then combined with the limestone/Seashell is burnt using
fuel oil in rotary limekiln to produce burnt lime. The chemical recovery plant recovers
88-90% of chemical used in digesters and loss is made good adding solt, cake and soda
wash.

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Paper Making:-

Pulp stock is beaten and prepared in the stock preparation section ahead of Paper
Machine. Disc and control refines are used for refining stock for each paper machine.
The main function of filter is to improve the capacity and finish of paper. The stock
thus prepared is taken as to paper machines where the sheet formation taken place
accomplish by large quantity of water, which subsequently has to be removed through
the mash of the endless wires by vacuum and then passing dryer over the steam heated
drying cylinder. The dry web paper is then glazed in calendar rolls, the resultant paper
of required quality is wounded on reel, and from these reels the paper is cut into sheets
and packed into reams.

Product Mix:-

The varieties of paper being produced are marketed with sudarshan brand and total
production of paper includes writing, printing, bond, manila craft, maplitho, postal
chrome and art paper. With completion of modernization programmed in May 1993,
the mill could produce quality papers like light weight papers including surface sized
papers for magazines grade and other printing requirements.

Best National Productive Award:-

The mill completed with various paper industries in India especially in Connection with
capacity utilization, pollution control, control of wastage, control of cost of production
and adoption new of technology etc. and won second best national productivity
performance award from national productivity council, New Delhi for the year 1983
and first in the year 1984. These awards have boosted morale of all employees of the
company.

Export:-

To strengthen its competitiveness in the global market, the Indian industry is adding
auxiliary equipment to reduce cost and improve efficiency (through increased
automation). This will enable the industry to compete with paper manufacturers in
china, Indonesia and Thailand, among others.

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At WCPM, paper & bonds are at par with international quality standards and are
regularly being exported to various countries like Egypt, Iran, Jordan, Muscat, U.A.E,
Singapore, Hong Kong, Malaysia, Myanmar, Tanzania, Kenya, and Ethiopia and have
been well accepted.

Product range for export:-

a. Wood free Writing & Printing Paper

b. Wood free Offset Paper

c. Bristol Board-White & Colour

d. Security paper

e. Super Print (H.B) Paper & Boards

f. Accounts Book Paper

g. Duplex-LWC, HWC

h. Duplex White Back and Colour

DEPARTMENTAL STUDY OF WCPM

PURCHASE DEPARTMENT:

Purchase Department plays an important role in management of the company. Any big
concern has a separate department known as purchase department. The efficiency of this
department can save more money by purchasing the right quality of items at the right time
and at a right price. This department is under the charge of purchase officer and he has a
staff under him to assist in carrying the various activities of the department. This
department is of great importance as the company has to perform all its activities
efficiently and smoothly.

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STORES DEPARTMENT:

When the material is received, stores inward receipt is prepared by the stores department,
checks the material and after approval, it is recorded in the stock cards. Chemicals are
tested in the laboratory for its quality. Valuation is done by the stores account
department. The indenting departments draw the materials through the issue vouchers. A
monthly statement of consumption is prepared accordingly.

It is a basically a service department. Stores department is maintained based on nature of


product and organization. They maintain the spares for different departments like pulp
mill, power house.

a) Fixing code number to each material.

b) Raising indents as and when needed.

c) Maintaining permanent card and stock card.

d) Issuing materials against issue vouchers raised by consuming departments.

e) In the WCPM stores department is divided into following sections.

1. Machinery spares parts stores.

2. General stores

3. Chemical department

4. Stores receipt department

5. Automobile spare parts

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INTERNAL AUDIT:

It is mainly concerned with checking the policies and practices of all the departments
within the organization, whether correct rules and regulations have been complied with or
not. It also suggests if any changes are to be made in any practices of the department.
Then the top management will decide whether the suggestions made by the Internal Audit
department are to be implemented or not.External Auditors are different from internal
auditors. Internal auditors will check only about the internal policies of the organization
but external auditors will be appointed by government and they are responsible to check
the statutory requirements, whether they are compiled by the company or not basic
Principles of internal audit:

1. Integrity, Objectivity and Independence

2. Confidentiality

3. Work performed by others.

4. Documentation

5. Planning

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ACCOUNTS DEPARTMENT:

The hierarchy is as follows in the accounts department is as follows

Assistant Vice President Accounts & Finance

Asst. General Manager – Accounts

Senior Manager Account

Manager Account

Section Officer

Senior Accounts Assistant

Accounts Assistants

The Accounts Department deals with all financial aspects of the firm. It is the main
department responsible for maintaining all accounts of the company. All Receipts &
expenditures relating to the company are recorded. It is the main department which
prepares budgets and assists management in investment decisions.

The overall functions performed by Accounts Department are:

 Preparing the Balance Sheet, P/L A/c, & other necessary A/c’s at the end of
the Accounting or Financial Year.

 Maintaining cash &bank transactions.

 Preparing Payment, Receipt, & Journal Vouchers File.

 Dealing on T.D.S.

 Preparing Monthly Trial Balance.

 Framing of Annual Report’s, etc.

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COST ACCOUNTING SYSTEM

The costing department is essentially a link between the production department and the
management. The company is manufacturing different varieties of paper/ paper board/
Duplex board which require various types of raw materials and chemicals. A process cost
accounting system is followed up to the pulp stage. Thereafter batch costing system is
followed. Budgetary Control System is in vogue

Processes

Pulp making from Paper making


raw materials From pulp

Process Batch
Costing Costing

Detailed records for production and consumption of water, steam and power are
maintained production and service cost center wise classification of salaries and wages are
prepared.

The works overhead have been absorbed on the conversion cost basis in different
processes and service centers. The administration and selling and distribution overheads
are apportioned/ absorbed to final products on pre-determined basis i.e., machine hours,
tons etc.

As such system followed can be considered as adequate to determine correctly the cost of
the products.

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Following are the daily reports sent to the Costing Department

a. Raw materials yard report

b. Pulp Mill Operation Report

c. Paper Production Report

d. Power house report

e. Steam consumption report

f. Energy generation and consumption report

g. Chemical Recovery Report

h. Duplex Board Production Report

The above are the different reports prepared in their respective departments daily and are
later forwarded to costing department. There are also some departments which send their
reports on monthly basis. For example, finishing house will take all the reports into
consideration. Daily production report is made in this department which helps the
managers to take decisions for the future production.

HUMAN RESOURCE DEPARTMENT

The Establishment department is the department where the new employees are recruited.
The commercial and technical department sends a internal memo letter regarding the type
of employee needed. After receiving the letter the establishment department gives the
advertisement and details in the newspaper and other sources and the selection process is
carried on.

SALES DEPARTMENT

The marketing system at WCPM is handled by the marketing department which is located
in the administrative office at Mumbai. This marketing department procures order from
different zones. Then copy of confirmation order will be sent to the sales department,
located at register office, Dandeli.

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The confirmation orders contain all the details about the party such as party’s name and
address, terms and conditions, final destination of goods, quantity and size required etc.

After receiving the confirmation, sales department will send copy of it to the production
department and they will manufacture the paper according to the size and quantity
required by the party.

As per the demand of the party, sales department will give dispatch order to the paper
godown and then it is dispatched from the godown after the completion of formalities.

The discount system of WCPM is as follows:

1) Trade Discount

2) Additional Discount

3) Quantity Discount

 Credit policy:

The credit policy of the firm affects the working capital by influencing the level of
debtors. The credit term to be granted to customers may depend upon the norms of the
industry to which the firm belongs.

 Availability of credit

The working capital requirements of a firm are also affected by credit terms granted by its
creditors. A firm will need less working capital if liberal credit terms are available to it and
also the availability of credit from banks also influences the working capital needs of

 Price Level Changes:

Generally, rising price levels will require a firm to maintain higher amount of working
capital. Same levels of current assets will need increased investment when prices are
increasing. Thus, effect of rising prices will be different for different companies. Some

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will face no working capital problems, while working capital problem of other may be
aggravated.

There are many aspects of working capital management, which make it an important
function of the financial of the functional manager:

1. Time: working capital management requires much of the financial manager’s time.
2. Investment: Working capital represents a large portion of the total investments in
assets.
3. Critically: Working capital management has great significance for all firms but it is
very critical for small firms.
4. Growth: The need for working capital is directly related to the firm’s growth

 Scale operations:
Operations level determines working capital demand during a given period. Higher the
scale, Higher will be the need for working capital.

However, pace of sale turnover (quick or slow) is another factor. Quick turnover calls for
laser investment in inventory, while low turnover rates necessities larger investment.

 Growth and diversification of business:


Growth and diversification of business call for larger volume of working fund. The need
for working capital does not follow the growth of business operations but precedes it.
Working capital needs in advances in advances in reference to the business plan.

 Supply Situation:
In easy and stable supply situation no contingency plan is necessary and precautionary
steps in inventory can be avoided.

 Other factors:

Every business firms requires fund for two purpose viz. for investing in fixed assets and
for investing in current assets. It may use this cash balance for making payment to the
suppliers for raw materials, for payment of wages, salaries and to meet overhead costs.
Those costs viz. costs of raw materials cost of labor and other overhead costs together
would generate work-in-progress which will be converted into finished goods

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The operation cycle of a manufacturing concern with the following events

 Conversion cash of raw material.


 Conversion of raw material into work process.
 Conversion work in process into finished goods.
 Conversion of finished goods into sales.
 Conversion of debtors into AA/C Receivables.

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SWOT Analysis of company:

STRENGTHS

 Mature and highly experienced company over fifty years old.

 Has developed strong systems for procurement of pulpwood

 Has a qualified and expert team of professionals running the business.

 Self-sufficient on Power front.

 Has pioneered the development of technologies for culturing of raw materials

 Use of latest technology in the manufacturing process and in house R & D facility.

 Continuous innovation and quality control.

 Financially stable. The company is currently virtually debt free.

 Strong branding as a multi-size specialist.

 Favorable demand & supply situation will keep the margins intact

 Has been expanding capacities on a regular basis to drive growth.

 The company is moving into production of copier paper, which is a high margin
and high growth segment and

 The Company enjoys dominance in the MICR segment.

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WEAKNESS

 Unremunerative and slack performance of the Cables division of the company may
affect the company’s financials in the long run.

 Depreciation of Indian Rupee against the US Dollar could negatively impact debt
servicing of the company.

OPPORTUNITIES

 Strong entry barrier due to the capital-intensive nature of the industry.

 Strong economic growth

 Impetus on education

 Tremendous growth potential in copier paper segment.

 Increase in export potential.

 Improvement in quality of end-product with state-of-art of equipment.

THREATS

 Electronic media may be a possible substitute to the use of paper. But only to a
limited extent.

 Free concessions to large paper mills in other countries –increasing competition


through cheap imports

 Availability of raw material – namely wood and pulp

 An economic slowdown will impact paper industry growth

 Increasing competition from unorganized sector

 Stringent environmental laws as per CREP guidelines

 Adverse budgetary policies for paper industry.

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Organizational structure:-

Executive Summary

Administration Technical

Vice-president President

Operation Maintenanc
Commercial Finance Raw materials
e

Departmental head
Departmental
head

Senior manager
Sectional head

Superintendent
Senior staff

Assistant

Junior staff

Shifting

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THEREOTICAL
BACKGROUND

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DIVIDEND

Dividend refers to a reward, cash or otherwise that a company gives to its shareholder.
Dividend can be issued in various forms. Such as cash payment, stocks or any other form.
A company’s dividend is decided by its board of directors and it requires the shareholder
approval. However it is not obligatory for a company to pay dividend. Dividend is usually
a part of the profit that the company shares with its shareholder.

A dividend is a distribution of a portion of a company earnings decided by the board of


directors paid to a class of its shareholder. Dividend can be issued as cash payments, as
shares of stock, or other property.

Advantages of dividend

 Investor preference for dividend:-

The investors are more interested in a company that pays stable dividend. This
assures them of reliable sources of earnings, even if the market price of the share.

 Two ways to profits:-

Dividend stocks, your return on investment increase when share prices rise and
when the company pays dividend. With non dividend stocks the only way you can
earn a positive return is through share price appreciation.

 Continued ownership while collecting profits:-

One of the most frustrating aspects of owing shares in a company that doesn’t pay
dividend is that all profits are locked in your stock. The only way to access those
profits is to sell shares.

 Cash to buy more shares:-

When you buy the number of shares of a company that doesn’t pay dividends. If
you want more shares, you have to reach in to purse or pocket to pay them. With
dividend stocks, you can purchase additional shares by reinvesting all or some of
your dividend. It creates confidence among the investors.

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Disadvantages of dividend

 Clientele effect

If a dividend paying company is unable to pay dividend for a certain period of time, it may
result in loss of old clientele who preferred regular dividend.

 Decreased retained earnings

When a company pays dividend it decrease its retained earnings. Debt obligation and
unexpected can rise if the company does not have enough cash.Investors desire for current
income:-

The investors who desire (old and retired persons, women, children etc.) to receive a
regular dividend income, will prefer a company with stable dividend to one with
fluctuating dividend.

 Institutional investor’s requirement

The financial institutional generally invest in the shares of those companies which have a
record of don’t paying regular dividends.

 Limits company’s growth paying dividend results

Paying dividend result in the reduction of usable cash which may limit the
company’sgrowth. The company will have less money to invest in the business growth.

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Dividend payout ratio

The dividend payout ratio is amount of dividend paid to shareholder relative of the amount
of total net income of the company.

The dividend payout ratio measures the percentage of the company’s net income that n
given to shareholder in the form of dividend.

Dividend payout ratio is the dependent variable used in the research is the dividend payout
ratio and we used the formula provided by penman. The same formula is also used in other
in studies.

Dividend payout ratio=dividend per share /earning per share.

Both dividend per share and earning were collected from the data stream for most
companies. However all necessary company data was not available in data stream and we
therefore had to review some annual report In order to find the dividend and earning per
share. In order to determine the relationship between the dividend payout ratios and
selected factors we therefore had to review their annual report.

Dividend per share:-

Dividend per share is the sum of declared dividends issued by a company for every
ordinary share outstanding.

Dividend per share usually is paid to shareholder quarterly. These payments typically
come out of a company’s profits, but not always. Only a portion of profits are distributed
and the remainder stays with the company as retained earnings. The ratio of earnings paid
to investors to net income is called the dividend payout ratio.

The dividend per share is the sum of declared issued by a company for every ordinary
share outstanding. Dividend per share is the total dividends paid out by a business
including interim dividends by the number of outstanding ordinary share issued.

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Earnings per share:-

Earnings per share of EPS areimportant financial measures, which indicate the
profitability of company. It is calculated by dividing the company’s net income with its
total number of outstanding shares. It is a tool that market participants use frequently to
gauge the profitability of a company before buying its share.

Earnings per share are the portion of a company’s profit that is allocated to every
individual share of the stock. It is a term that is of much importance to investor and people
who trade in the stock market. The higher the earning per share of a company the better is
its profitability. While calculating the earning per share it is advisable to use weighted
ratio as the number of shares outstanding can change over time.

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DATA ANALYSIS AND INTERPRETION

Balance sheets as per year 2013-14, 2014-15, 2015-16 (Amt in Lack)


Particular 2013-14 2014-15 2015-16
Equity and liabilities
Shareholders fund
Share capital 1,320.98 1,320.98 1,320.98
Reserve and surplus 58,344.91 58,456.41 58,456.41
59,665.89 59,777.39 59,868.04
Non-current liabilities
Long term borrowing 59,368.17 39,606.52 41,916.84
deferred tax liabilities(net) 6,871.45 7,233.31 8,870.23
Other long term liabilities 2,963.58 2,911.50 2,804.11
Long term provision 393.94 423.97 409.58
69,597.14 50,175.30 54,000.76
Current liabilities
Short term borrowing 27,350.54 30,128.43 22,111.93
Trade payables 25,819.12 24,944.77 19,934.45
Other current liabilities 26,048.51 27,353.09 18,625.39
Short term provision 964.81 147.50 1,233.78
80,182.98 82,573.79 147.50
Total 209,446.01 1,92,526.48 82,573.79
Assets
Non-current assets
Fixed assets
Tangible assets 124,274.07 1,14650.56 1,05987,.47
Capital work in progress 492.20 230.05 335.17
124,766.27 1,14,899.10 1,06,333.73
Non-current investment 4,671.20 4,671.20 82.73
Long term loans & advances 5,593,26 6,440.45 6,258.34
Current assets
Inventories 48,793.65 48,324.54 46,772.37
Trade receivables 10,092.26 12,499.23 11,804.01
Cash & cash equipment 913.35 1,313.34 1,262.19
Short term loans & advances 7,542.25 1,806.37 1,877.56
Other current assets 7,073.77 2,491.79 1,302.96
74,415.28 66,435.27 63,019.09
Total 209,446.01 1,92,526.48 175,774.35

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CALCULATION OF DIVIDEND PAYOUT RATIO

THE YEAR OF 2013-14.

DIVIDEND PAYOUT RATIO= DIVIDEND PER SHARE/EARNING PER RATIO*100

As per formula=

Dividend per share=1

Earnings per share=2

DPR =½ X 100

=50

DPS=PROPOSED DIVIDEND/TOTAL NO. OF SHARE

=6, 60, 49,000/6, 60, 48,908

=1

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CALCULATION OF DIVIDEND PAYOUT RATIO:-

THE YEAR OF 2015-16.

DIVIDEND PAYOUT RATIO= DIVIDEND PER SHARE/EARNING PER RATIO*100

As per formula=

Dividend per share=1

Earnings per share=2.68

DPR=1/2.68X100

=37.3135

DPS=PROPOSED DIVIDEND/TOTAL NO. OF SHARE

=6, 60, 49,000/6, 60, 48,908

=1

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CALCULATION OF DIVIDEND PAYOUT RATIO:-

THE YEAR OF 2016-17.

DIVIDEND PAYOUT RATIO= DIVIDEND PER SHARE/EARNING PER RATIO*100

As per formula=

Dividend per share=2.50

Earnings per share=38.82

DPR=2.50/38.82X100

=6.4399

DPS=PROPOSED DIVIDEND/TOTAL NO. OF SHARE

=6, 60, 49,000/6, 60, 48,908

=1

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Calculation of number of shareholder:-

Name – S.K. Bangur.

No. of share= 2576979 (2013-14)

2576979X1=2576979

2576979X2=5153958

=2576979/5153958X100

=50/-

2015-16= No. of share=2576979

2576979X1=2576979

2576979X2.68=6906303.72

=2576979/6906303.72X100

= 37.31/-

2016-17=No. of share=2576979

2576979X1=2576979

2576979X38.82=100038325

=2576979/100038324.78X100

=2.57/-

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Name – Smt.S. K. Bangur.

No. of share= 1982507(2013-14)

1982507X1=1982507

1982507X2=3965014

=1982507/3965014X100

=50/-

2015-16= No. of share=198250 7

1982507X1=1982507

1982507X2.68=5313118.76

=1982507/5313118.76X100

=37.31/-

2016-17=No. of share=1982507

1982507X1=1982507

2576979X38.82=76960921.74

=1982507/76960921.74X100

=2.57/-

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Name –Shri. Saurabh Bangur

No. of share= 1315730 (2013-14)

1315730X1=1982507

1315730X2=2631460

=1315730/2631460X100

=50/-

2015-16= No. of share=1315730

1315730X1=1315730

1315730X2.68=3526156.4

=1982507/3526156.4X100

=37.31/-

2016-17=No. of share=1315730

1315730X1=1315730

1315730X38.82=3526156.4

=1315730/3526156.4X100

=2.57/-

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Name –Shri. Kamala Devi Bangur

No. of share= 249200(2013-14)

=249200X1=249200

=249200X2=498400

=249200/498400X100

=50/-

2015-16=No. of share= 249200

249200X1=249200

249200X2.68=667856

=249200/667856X100

=37.31

2015-16=No. of share= 249200

249200X1=249200

249200X38.82=9673944

=249200/9673944X100

=2.57/-

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Name –Shri. Virendra Bangur

No. of share=969578 (2013-14)

969578X1=969578

969578X2=1939156

=969578/1939156X100

=50/-

2015-16=No. of share=969578

969578X1=969578

969578X2.68=2598469.04

=969578/2598469.04X100

=37.31/-

2016-17=No. of share=969578

969578X1=969578

969578X38.82=37639017.96

=969578/3763901.96X100

=2.57

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WEST COAST PAPER MILLS DANDELI

Name – Smt. Bharari Bangur.

No. of share=60000(2013-14)

60000X1=60000

60000X2=120000

=60000/120000X100

=50/-

2015-16=No. of share=60000

60000X1=60000

60000X2.68=1608000

=60000/1608000X100

=37.31

2016-17=No. of share=60000

60000X1=60000

60000X38.31=2329200

=60000/2329200X100

=2.57

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WEST COAST PAPER MILLS DANDELI

Name – Shri. Ranganath Kumar.

No. of share=613063(2013-14)

613063X1=60000

613063X2=1226126

=613063/1226126X100

=50/-

2015-16=No. of share=613063

613063X1=613063

613063X2.68=1643008.84

=613063/1643008.84X100

=37.31/-

2016-17=No. of share=613063

613063X1=613063

613063X2.68=23486443.53

=613063/23486443.53X100

=2.57/-

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Name – Shri. Kumar Virendra Kumar.

No. of share=155000(2013-14)

155000X1=155000

155000X2=310000

=155000/310000X100

=50/-

2015-16=No. of share=155000

155000X1=155000

155000X2.68=415400

=155000/415400X100

=37.31/-

2015-16=No. of share=155000

155000X1=155000

155000X38.82=5938050

=155000/6017100X100

=2.57/-

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Name –Shri. Satyanarayan investment co. ltd.

No. of share=10312973 (2013-14)

10312973X1=10312973

10312973X2=20625946

=10312973/20625946X100

=50/-

2015-16=No. of share=10312973

10312973X1=10312973

10312973X2.68=27638767.64

=10312973/27638767.64X100

=37.31/-

2016-17=No. of share=10312973

10312973X1=10312973

10312973X38.82=4002845611.86

=10312973/4002845611.86X100

=2.57

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Name –Shri. Veer Enterprises ltd.

No. of share=10597100 (2013-14)

10597100X1=10597100

10597100X2=21194200

=10597100/21194200X100

=50/-

2015-16=No. of share=10597100

10597100X1=10597100

10597100X2.68=30307706

=10597100/30307706X100

=37.31/-

2016-17=No. of share=10597100

10597100X1=10597100

10597100X38.82=411379422

=10597100/411379422X100

=2.57/-

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Name –Orbit Udyog (p).ltd

No. of share=2293855(2013-14)

2293855X1=2293855

2293855X2=4587710

=2293855/4587710X100

=50/-

No. of share=2293855 (2013-14)

2293855X1=2293855

2293855X2.68=6147531.4

=2293855/6147531.4X100

=37.31/-

No. of share=2293855 (2013-14)

2293855X1=2293855

2293855X38.82=89047451.4

=2293855/89047451.4X100

=2.57/-

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Name –Saumya Trade &Fiscal services

No. of share=1998300(2013-14)

1998300X1=1998300

1998300X2=3996600

=1998300/3996600X100

=50/-

2015-16=No. of share=1998300

1998300X1=1998300

1998300X2.68=5355444

=1998300/5355444X100

=37.31/-

2015-16=No. of share=1998300

1998300X1=1998300

1998300X38.82=77574006

=1998300/77574006X100

=2.57/-

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WEST COAST PAPER MILLS DANDELI

Name –Union Company Ltd

No. of share=4450(2013-14)

4450X1=4450

4450X2=8900

=4450/8900X100

=50/-

2015-16 No. of share=4450

4450X1=4450

4450X2.68=11296

=4450/11962X100

=37.31/-

2016-17=No. of share=4450

4450X1=4450

4450X38.82=172749

=4450/172749X100

=2.57/-

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WEST COAST PAPER MILLS DANDELI

Name –Mothold Company Ltd.

No. of share=77700(2013-14)

77700X1=77700

77700X2=155400

=77700/155400X100

=50/-

2015-16=No. of share=77700

77700X1=77700

77700X2.68=208236

=77700/208236X100

=37.31/-

2016-17=No. of share=77700

77700X1=77700

77700X38.82=30163140

=77700/30163140X100

=2.57/-

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WEST COAST PAPER MILLS DANDELI

Name –The Indra Company Ltd.

No. of share=15750(2013-14)

15750X1=77700

15750X2=31500

=15750/31500X100

=50/-

2015-16=No. of share=15750

15750X1=15750

15750X2.68=42210

=15750/42210X100

=37.31/-

2015-16=No. of share=15750

15750X1=15750

15750X38.82=611415

=15750/611415X100

=2.57/-

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This diagram shows changes in divided per share

No of
Name of shareholder 2013-14 2015-16 2016-17
shareholder
Shri. S.K.Bangur 2576979 50 37.31 2.57
Smt .S.K. Bangur 1982507 50 37.31 2.57
Shri Saurabh Bangur 1315730 50 37.31 2.57
Shri Kamla Devi Bangur 249200 50 37.31 2.57
Shri Virendra Bangur 969578 50 37.31 2.57
Smt. Bharati Bangur 60000 50 37.31 2.57
Raganath Shree Kumar 613063 50 37.31 2.57
Shree Virendra Kumar 155000 50 37.31 2.57
Satyanarayan Investment 10312973 50 37.31 2.57
Veer enterprises Ltd. 10597100 50 37.31 2.57
Orbit Udyog (P) Ltd. 2293855 50 37.31 2.57
Soumya Trade 1998300 50 37.31 2.57
Union Company Ltd 4450 50 37.31 2.57
Mothold Company Ltd 77700 50 37.31 2.57
The India Company 15750 50 37.31 2.57

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WEST COAST PAPER MILLS DANDELI

60
50
40
30
20
2013-14
10
2015-16
0
2016-17

Interpretation:-

The above table showed the dividend payout shareholder.

In the 2013-14 the dividend paid to shareholder to is share Rs- 50 per share to compare
2015-16 share Rs-37.31 it has decreased by 12.69.it conducted that the dividend payout
ratio.

In the 2014-15 the company don’t paid the dividend.

In the 2015-16 the dividend paid to shareholder to is share Rs- 37.31 per share to compare
2016-17 shares Rs-2.57 it has decreased by 34.74. It conducted that the dividend payout
ratio.

In the 2016-17 the dividend paid to shareholder to is share Rs- 2.57 per share to compare
2013-14 shares Rs-50 it has increased by 12.69 It conducted that the dividend payout ratio.

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FINDINGS

 In this project I found as the dividend payout. In the as per dividend how much
paid to the shareholder. And the reason for changes yearly.

 As per 2013-14 the dividend paid to shareholder is each share is same.

 As per 2014-15 the company not paid to dividend to the shareholder. Because the
company has been in losses.

 As per 2015-16 the dividend paid to shareholder is the decrease. As per compare to
2013-14.

 As per 2016-17 the dividend paid to shareholder is the decrease. As per compare
the 2013-14, and 2016-17.

 The company has good organization structure.

 One of the best advantages to the company is availability of cheap and efficient
labor along with a best geological area. With nearness to forest, river national
highways, Railways.

 The company has adopted Enterprise Resource Planning system through which it is
able to run its activities smoothly and efficiently. It may be more useful if the
persons using it are more skilled with computers.

 Firm have an opportunity to increase shareholders value with judicious use of debt
in its capital structure (i.e. - Long term fund’s sources)

 The Capital Structure decision had an effect on the profitability of the organization.

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SUGGESTIONS

 The profit of the company is not in a good position. The company has to take
alternative actions such as.

 Company has to increase their share.

 Since the in dividend may create a negative impression in the mind of


shareholder which will effect of the company’s position so it is to the
company’s dividend raised should not be reduce.

 Is made to such growth making companies to provide satisfied dividend


payout to shareholders.

 The company provide better dividend to the shareholder for better investment
of the company

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CONCLUSION

From the study its company it can be concluded that the company as good resource management and
also people relationship and on an average maximum employees are satisfied with the welfare
facilities provided to them. In this company there is demand of qualified and experience people.

Company encourage their staff workers to develop their technical skill, but on the other hand
permanent employees responded that they need housing facilities near the factory and should be
provided with the transport facilities, because factory is far away from the city.

Company has to increase his share and profit of the company.

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Bibliography

Company’s website - www.westcoastpaper.com

Financial Management

I.M. Pandey

Financial Management

P.V. Kulkarni

Financial Management

A.D. BHAT

Annual Reports Of West Coast Paper Mills Ltd

Other Websites like

www.wikipedia,com

Company’s Annual Reports (2013-14, 2014-15, 2015-16, and 2016-17.

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APPENDIX

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DATA ANALYSIS AND INTERPRETION: -

Balance sheets as per year 2013-14, 2014-15, 2015-16 (Amt in lack)


Particular 2013-14 2014-15 2015-16
Equity and liabilities
Shareholders fund
Share capital 1,320.98 1,320.98 1,320.98
Reserve and surplus 58,344.91 58,456.41 58,456.41
59,665.89 59,777.39 59,868.04
Non-current liabilities
Long term borrowing 59,368.17 39,606.52 41,916.84
deferred tax liabilities(net) 6,871.45 7,233.31 8,870.23
Other long term liabilities 2,963.58 2,911.50 2,804.11
Long term provision 393.94 423.97 409.58
69,597.14 50,175.30 54,000.76
Current liabilities
Short term borrowing 27,350.54 30,128.43 22,111.93
Trade payables 25,819.12 24,944.77 19,934.45
Other current liabilities 26,048.51 27,353.09 18,625.39
Short term provision 964.81 147.50 1,233.78
80,182.98 82,573.79 147.50
Total 209,446.01 1,92,526.48 82,573.79
Assets
Non-current assets
Fixed assets
Tangible assets 124,274.07 1,14650.56 1,05987,.47
Capital work in progress 492.20 230.05 335.17
124,766.27 1,14,899.10 1,06,333.73
Non-current investment 4,671.20 4,671.20 82.73
Long term loans & advances 5,593,26 6,440.45 6,258.34
Current assets
Inventories 48,793.65 48,324.54 46,772.37
Trade receivables 10,092.26 12,499.23 11,804.01
Cash & cash equipment 913.35 1,313.34 1,262.19
Short term loans & advances 7,542.25 1,806.37 1,877.56
Other current assets 7,073.77 2,491.79 1,302.96
74,415.28 66,435.27 63,019.09
Total 209,446.01 1,92,526.48 175,774.35

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