Unveiling the next chapter

Insights into building a sustainable organisation

THE WEST COAST PAPER MILLS LIMITED

ANNUAL REPORT 2008-09
Forward Looking Statement
In this Annual Report, we have disclosed
forward-looking information to enable investors
to comprehend our prospects and take informed
investment decisions. This report and other
statements - written and oral - that we periodically
make, contain forward-looking statements that set
What’s in these pages?
out anticipated results based on the management’s About us 2
plans and assumptions. We have tried wherever
possible to identify such statements by using Financial performance and trends 4
words such as ‘anticipate’, ‘estimate’, ‘expects’,
‘projects’, ‘intends’, ‘plans’, ‘believes’, and words Chairman’s statement 6

of similar substance in connection with any

discussion of future performance. The next chapter 8

We cannot guarantee that these forward-

Executive Director’s review 16
looking statements will be realised, although we
believe we have been prudent in assumptions. Building a sustainable organisation 20
The achievement of results is subject to risks,
uncertainties and even inaccurate assumptions. Corporate social responsibility 24
Should known or unknown risks or uncertainties
materialise or should underlying assumptions Management’s discussion and analysis 26
prove inaccurate, actual results could vary
materially from those anticipated, estimated or Directors’ report 34
projected. Readers should bear this in mind.
Report on corporate governance 44
We undertake no obligation to publicly update any
forward-looking statements, whether as a result of
Financial section 54
new information, future events or otherwise.

Corporate information 80
Change starts when someone sees the next step.
William Drayton
 7 FACTS THAT
YOU SHOULD KNOW ABOUT US

Our vision
ANNUAL REPORT 2008-09

To excel in serving the growing demands of paper and

paper products worldwide and enhance shareholder
value with consistent and sustained performance.
THE WEST COAST PAPER MILLS LIMITED

Our parentage and history

We, The West Coast Paper Mills are the flagship
Company of SK Bangur Group and were established
in 1955.

Our presence
Registered office and Paper & paperboard
manufacturing unit
Dandeli (Karnataka)
Telecom cable manuacturing unit
Mysore (Karnataka)
Power (windmill)
Tamil Nadu
Corporate office
Bangalore (Karnataka)
Zonal offices
Mumbai (Maharashtra), Kolkata (West Bengal),
Chennai (Tamil Nadu), New Delhi (Delhi)
Our products
• Paper and paperboards

Writing & Printing paper Industrial paper

Uncoated paper Surface size paper Specialty paper Packaging paper

• Maplitho paper
(commercial printing)
• MG poster paper and
board
• Cream wove paper • Copier paper • MICR Cheque paper
(notebooks) • Coated Duplex board
• Surface sized papers • Parchment paper
• Maplitho deluxe (multilayer board)
with additives • Security paper
(computer stationery)
• MG – Manila/Bristol
board
• HL – stiffener cover
paper

• Optical fibre cable

Duct cable 3
Ariel fig 8 cable

ABOUT US
ADSS cable
Armoured cable
CATV cable
Mini cable
• Power (6 windmills)

Our people
2551 employees across India

Our dealer network

89 dealers spanning 38 cities in 15 states

Listings
• National Stock Exchange (Scrip code – WSTCSTPAPR)
• Bombay Stock Exchange (scrip code – 500444)
 F INANCIAL
HIGHLIGHTS
Performance in 2008-09

Total revenues up by
ANNUAL REPORT 2008-09

1.41% 662.71 to Rs. crores

THE WEST COAST PAPER MILLS LIMITED

EBIDTA increased by

11% 125.36 to Rs. crores

PAT increased by

11% 90.54 to Rs. crores

EBIDTA margin increased by

84 20.23% bps to

PAT margin increased by

59 14.61% bps to
T EN YEAR
HIGHLIGHTS
PRODUCTION
PAPER/PAPER BOARD &
MULTILAYER BOARD
Tonnes
2009 2008 2007 2006 2005 2004 2003 2002 2001

173,682 169,891 178,871 176,221 173,070 163,714 151,477 120,293 120,210 112,521
2000

OPTICAL FIBRE CABLE Km 16,787 22,829 7,060 6,303 8,090 6,230 3,889 4,283 629 5,650
JFTC CKm - - 165,407 512,170 275,846 81,971 18,239 356,048 7,087 -
SALES
PAPER/PAPER BOARD & Tonnes 170,686 170,193 179,915 180,397 168,315 162,642 152,046 124,941 113,864 116,072
MULTILAYER BOARD
OPTICAL FIBRE CABLE Km 16,762 22,836 7,105 6,593 7,774 6,319 4,236 3,997 648 5,522
JFTC CKm - 119 165,288 525,502 264,438 87,542 26,345 347,534 - -
5
OPERATING RESULTS
TURNOVER Rs./lac 66,271 65,352 61,944 60,684 53,335 49,184 52,236 48,719 39,820 37,062

FINANCIAL HIGHLIGHTS
GROSS PROFIT Rs./lac 12,036 11,438 9,552 6,922 5,649 6,057 6,224 4,934 4,826 2,853
DEPRECIATION Rs./lac 1,990 2,043 2,098 3,695 1,893 1,689 1,823 1,209 1,028 973
TAXATION Rs./lac 1,149 1,095 862 300 295 315 400 295 950 360
DEFERRED TAX Rs./lac -157 110 -54 -276 395 1,209 397 244 - -
NET PROFIT Rs./lac 9,054 8,190 6,646 3,203 3,066 2,844 3,604 3,186 2,848 1,520
DIVIDEND Rs./lac 1,258 1,721 1,341 1,341 1,341 894 760 581 447 358
FINANCIAL POSITION
GROSS BLOCK Rs./lac 161,798 80,141 48,467 46,514 46,074 44,504 39,336 31,499 18,454 16,337
(Including assets on lease)
DEPRECIATION Rs./lac 29,112 27,022 25,309 22,584 19,863 17,614 15,241 13,204 7,928 6,944
(Including assets on lease)
NET BLOCK Rs./lac 132,686 53,119 23,158 23,930 26,211 26,890 24,095 18,295 10,526 9,393
PAID UP CAPITAL Rs./lac 7,708 1,425 894 894 894 894 894 894 894 894
RESERVES & SURPLUS Rs./lac 49,070 38,771 22,324 17,246 15,573 14,036 12,935 10,188 9,716 7,360
NET WORTH Rs./lac 56,778 40,196 23,218 18,140 16,467 14,930 13,829 11,082 10,610 8,254
BORROWINGS Rs./lac 117,365 40,616 17,407 16,588 22,922 20,106 17,553 17,842 11,876 8,541
CAPITAL EMPLOYED Rs./lac 174,143 80,812 40,625 34,728 39,389 35,036 31,382 28,924 22,486 16,795
SOME SELECTED RATIOS
EARNINGS PER 16 17 15 7 7 6 8 7 6 3
SHARE(Rs.2) (BASIC)
BOOK VALUE PER SHARE Rs. 94 70 52 41 37 33 31 25 24 18
DIVIDEND [EQUITY SHARES] % 100 150 150 150 150 100 85 65 50 40
DEBT EQUITY RATIO 67:33 50:50 43:57 48:52 58:42 57:43 56:44 62:38 53:47 51:49
 C HAIRMAN’S
ANNUAL REPORT 2008-09
S.K. Bangur
STATEMENT
Chairman and Managing Director
THE WEST COAST PAPER MILLS LIMITED
The art of progress is to preserve order amid
change and to preserve change amid order.
– Alfred North Whitehead
When a nation that accounts for roughly 12 per
cent of the global population, decides to move
fast, it sure creates ripples across the universe.
And so it is with India. A country that is gradually,
but surely beginning to gain the much needed
growth momentum, the strength of which
cannot be defeated even by a global recession
which has literally floored the mighty west.
Like most industries in India, which have grown
on the strength of domestic demand, a policy
push to increase consumption couldn’t have
come at a better time. Not only did it help these
industries survive, it also enabled them to grow,
because global supplies in such products, were
severely curtailed owing to a liquidity crunch.
Paper, is one such industry.
Led by a demand that has historically trailed the
world consumption averages, initiatives by the
government to boost primary education, the low
rate of internet penetration, and the culture of
wanting a ‘copy’ of every important document
has fuelled the growth in demand for paper and
paper products, which was maintained at almost
ten per cent. This momentum is expected to
continue in the years going ahead, and on a higher
 After four years of rigorous hard work, we at West Coast
Paper Mills are on the verge of the completion of our
most ambitious project

capacity base (given the ensuing Greenfield completion of our most ambitious project that will
commissioning by most major manufacturers), not only enable us to offer environment-friendly
we are looking at the industry literally doubling products but would also put us in the league of 7
its turnover through incremental sales. premium segment players in the industry.

CHAIRMAN’S STATEMENT
As a Company that proactively read this trend The future is all set to begin. And I invite you into
four years ago, and invested in capacity the new world of West Coast Paper, while we
augmentation, West Coast Paper Mills Limited unveil the next chapter.
is poised to extract a ‘first-movers advantage’
in realizing value from the exciting growth that
is envisaged. S.K. Bangur
Chairman and Managing Director
We have prepared well – by investing in the best-
in-class technology, securing our raw material
sources, locking in the capital requirements, and
ensuring that we exceed compliances related
to the environment, as opposed to just meeting
them.

After four years of rigorous hard work, we at

West Coast Paper Mills are on the verge of the
ANNUAL REPORT 2008-09

U
THE WEST COAST PAPER MILLS LIMITED

NVEILING THE
NEXT CHAPTER

Doing the best at this moment puts you in the best place for
the next moment
Oprah Winfrey
The ‘next’ is an impending reality. However, we
can either choose to initiate it, or wait for other
forces to bring it about. It’s definitely not easy
to initiate change - it brings with it the need for an almost fanatic focus,
and is fraught with the risk of failure. However, in the long run, it also determines the
difference between those who stand out in a crowd, and that crowd.
9
Ever since our inception, we at West Coast Paper Mills have believed in pushing our
boundaries to achieve what we envisioned. And we have done so through taking

THE NEXT CHAPTER

not the obvious step, but the next one. This has allowed us to sustain our growth
momentum for five decades, amidst challenges, and evolve into a respected brand
developing world class products.

In 2006, we embarked on one such journey of creating a bigger, better and greater
organisation. With our top line at Rs. 534 crore, we undertook an expansion activity
worth more than twice that amount - Rs. 1,100 crore. The goals we set:

1. To expand our paper and paperboard capacity from 180,000 TPA to

320,000 TPA, amounting to an augmentation of more than 75%. To
incorporate world class technology and machines thereby ensuring higher
efficiency and superior product quality

2. To create an environment friendly Company.

After three years and an escalated project cost of Rs. 1,300 crore, we are at the
doorstep of future. The stage is set. The plans have evolved into reality.

In 2009-10, we are all set to unveil a new chapter – of larger capacity, higher
efficiencies, superior quality products and greener operations. In the following
sections, we share our pride and developments associated with the next chapter, and
we discuss how we have built a world class sustainable Company in the process.
 W
ANNUAL REPORT 2008-09

HAT IS THE
NEXT CHAPTER ALL ABOUT?
THE WEST COAST PAPER MILLS LIMITED

The next chapter resembles the forward thinking approach in any story.
In our case the next chapter is all about creating a sustainable Company
– in terms of scale, technology, superior product quality, wide product
range and environmental compliance (ECF technology).

Building a bigger scale
We operate in a highly challenging industry environment.
From ensuring raw material procurement at optimal quality
and cost, to warding off competition from the unorganised
sector and cheaper imports, we counter multiple hurdles in
our path. Traditionally, Indian companies have maintained
lower capacities on account of constraints related to licensing,
funding and raw material availability. With the implementation
of the Corporate Responsibility for Environment Protection
(CREP), the Indian paper industry has witnessed huge
investments in last 3 years (2006-09), more than the total
investments in the industry from 1960 to 2006. The CREP
guidelines needed the paper industry to reduce its effluent
and emission output to ensure cleaner and environmentally-
responsible operations. These substantial investments
virtually made capacity expansion imperative – to ensure a
quicker payback and retain profitability. These regulation-
induced capital investments resulted in greater consolidation
in the industry and thereby assisted in market penetration for
organised players.
In 2006, we at West Coast Paper Mills sensed both the need
to rapidly expand capacity, and the underlying opportunity
it presented. We embarked on a journey to add a further
140,000 tonnes to our paper and paperboard capacity by
installing a new paper machine PM IV and a new fibreline. The
additional capacity is expected to go on-stream by January
2010, thereby initiating a new chapter in our future growth.
With us having one of the lowest historical capacity costs in
the country, our expanded capacities would be highly cost
effective.
In 2008-09, our sole focus was on timely completion of the
expansion activity. Amidst the global slowdown, the Indian
paper industry grew @ 10% and was one of the fastest
growing paper markets in the world. With the increase in
the government expenditure in education programmes like
Sarva Shiksha Abhiyaan couple with increased demand from
retail sectors, the paper and paperboard demand in India is
expected to increase to 10 million tonnes by 2009-10. With an
increased capacity of 320,000 tonnes, we would command
more than 3% of this rapidly expanding market.
The envisaged benefits of capacity expansion
• Expanded capacity would provide the flexibility to
improve product mix towards high-margin products
• Will enable the Company to aggressively focus on copier
paper segment
• Would result in economies of scale, resulting in reduction
of overheads
• Environmental compliance through adoption of ECF
route in paper manufacture.
Employing a superior
technology
With the advent of CREP, technology not only became a key
enabler for companies to ensure cleaner operations, but
also a critical element in enhancing margins. This would
be made possible by ensuring higher productivity through
uninterrupted operations and lower wastage.
For us at West Coast Paper Mills, best –in-class technology
was employed not only for the expanded capacity but also
for the existing capacity. We chose to employ the best
technology, machines and equipment from global leaders
and suppliers like Metso Paper, Sundsvall AB (Sweden), Voith
Paper Gmbh & Co. (KG, Germany), Vecoplan Maschinenfabrik
Gmbh (Germany), Andritz OY (Finland), Bielomatik Leuze
Gmbh (Germany), Marushi Co. Ltd. (Japan), Gustav Gockel
(Germany), Raumaster (Finland), ABB Cellier (France), etc.
During the year, our project cost escalated by Rs. 200 crore,
on account of our unflinching commitment to address higher
volumes, superior technology and higher energy efficiency.
The major constituents of this increase were the additions
made to chemical recovery plant and the investments made
for a superior paper machine line.
Offering world class quality
products 11
Our product portfolio consist of Maplitho, machine glazed
THE NEXT CHAPTER
(MG) cover, MG Poster, Ledger, Copier paper, colour pulp
board, Coated duplex board, value-added board, other wood-
free varieties and speciality paper. We cater to both, the
industrial and non-industrial clientele.
The expansion programme would enable us improve our
product offerings and quality. Over the years, we have
developed credible competencies in producing a wide range
of paper and paperboard varieties – from writing to printing
to packaging to copier. Post the completion of the expansion
activity, we would be able to produce elemental chlorine free
paper, which would be as brighter as well as would have
stronger formation as world-class high-grade varieties. The
paper would also be environment-friendly and thus would
enable us to evolve into a premium segment player. This will be
made possible through our new wood pulping line that would
also be more energy efficient and reduce input consumption.
In addition, our improved capacities would enable us to
concentrate on high-grade varieties like copier paper and MF
Paper. With a new firbeline and paper machine IV operational,
we would be able to ensure a large variety of products at
competitive costs for our customers.
 THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2008-09

W HAT DID IT TAKE TO

WRITE THE NEXT CHAPTER?
Total investments made -
Rs. 13,000,000,000
More than twice of our existing turnover of
Rs. 619.75 crore. and more than 2.9 times of our
cumulative net profits in the last decade

Capacity to be added - 140,000

tonnes
More than 75% of the capacity added by the Company in
the five decades of its existence

Cement used - ~40,000 tonnes

The amount of cement sufficient to create two ten-storey
buildings

Weight of equipment and

structurals - ~30,000 tonnes 13

About the weight of 300 blue whales

THE NEXT CHAPTER

Length of the pipelines laid -
~100 kms
More than 17 times the length of Bandra-Worli Sea Link,
Mumbai

Length of cables used - ~1,000

kms
More than the distance between Delhi and Ahmedabad
by road

Total built-up area - ~52,000 sq.

metres
About 10 times the floor space in White House

Number of people working on the

site at a time - ~2,000
About 80% of the Company’s current employee strength
 T HE STORY
TILL NOW…
As on 31st March, 2009 the status of the
activities involved in the expansion plans were
as follows:
ANNUAL REPORT 2008-09

1. Fibreline
a. Majority of the civil work is already completed. Minor
finishing work is being done.

b. Major equipment erection in chipping section completed.

Conveyors erection and electricals are in advance stage of
THE WEST COAST PAPER MILLS LIMITED

completion.

c. Cooking section commissioned on 26th March 2009.

d. Expected commissioning of the Chipper section and

complete pulp plant in August 2009.

2. Chemical Recovery Plants

a. Finishing of civil jobs in process.

b. Erection of boiler, evaporator, rotary lime kiln and causticising

are almost complete. Connecting jobs of piping, electrical
and instrumentation are nearing completion.

c. Expected commissioning in August 2009.

3. Paper Machine VI
a. Civil work at stock, coating color kitchen and finishing &
converting is under progress.

b. Paper machine section civil finishing jobs nearing

completion.

c. Order finalisation for, electrical equipment etc. is under

progress.

d. Expected commissioning by January 2010.

4. Power Block
a. Civil structure designing and civil work is under progress.

b. Boiler erection work is under progress and commissioning

scheduled for September 2009.

c. T.G. expected commissioning in January 2010.

5. Effluent Treatment Plant

a. Order for clarifiers mist cooling system, sludge dewatering 15
system have been released.

THE NEXT CHAPTER

b. Civil work has commenced.

c. Expected commissioning of clarifier, mist cooling system

& sludge dewatering system by November 2009.
 E XECUTIVE
DIRECTOR’S REVIEW
ANNUAL REPORT 2008-09
K.L. Chandak, Executive Director reviews the Company’s performance during the year under review
The Company performed well in
THE WEST COAST PAPER MILLS LIMITED
a challenging year. What were
the factors that enabled this
performance?
While the year 2008-09 was challenging for
most of the industries globally, the Indian
paper industry grew at robust rate, given our
historically low consumption and the demand
resulting from the now unstoppable national
growth. The consistent demand led to better
realisations for the industry players, including
the Company. Our net sales increased by 6%
from Rs. 584.09 crore in 2007-08 to Rs. 619.75
crore in 2008-09 mainly on account of higher
realisations and excise duty reduction. The
EBIDTA margin improved from 19.39% in 2007-
08 to 20.23% in 2008-09, despite the increase
in prices of raw materials such as wood, waste
paper, chemical and dyes and coal. Apart from
the higher realisations, our cost control initiatives
played a big role in improvement of margins. Our
net profits increased by 10.55% from Rs. 81.90
crore in 2007-08 to Rs. 90.54 crore in 2008-09.
What was the impact of the
economic slowdown on the
Company’s expansion plans?
Minimal. For the following reasons.
• We were among the early movers in the
industry in 2006, when we initiated the
expansion activity. This enabled us to place
orders well in advance and therefore the
supplies of our equipment and machines
were not stretched.
• We attained the financial closure in February
2008 for the entire project amount of
Rs. 1,100 crore. The year under review
witnessed cost escalation on the project
to the tune of Rs. 200 crore. However, this
escalated cost is being funded through
internal accruals, backed by a stronger
balance sheet, therefore limiting our
exposure to additional debt and a higher
cost, given the rising interest rates during
the year.
• Every aspect of the project including
ordering, logistics and installation was
Only the companies with assured backward and forward linkages would
be able to feed increased capacities, and therefore, we expect greater
consolidation in the industry going ahead
meticulously planned and executed within
time in majority of cases, resulting in
efficient utilisation of the existing resources.
For example, we managed to transport the
9.5 m high digester across 1,200 kms to
our unit in just 90 days by road.
Every large paper Company is
going for capacity expansion and
all the capacities are expected
to be on-stream in 2009-10. Do
you see an oversupply of paper
resulting in lower realisations in
the coming year?
A very good question. Traditionally, Indian paper
companies have had lower capacities for various
reasons including raw material availability, capital
constraints and competition from unorganised
players. With the implementation of CREP
guidelines, Indian paper companies had to
mandatorily invest into existing capacities to
ensure eco-friendly operations. While it was not
possible to recover such investments solely by
relying on the existing capacity, it was important
to evolve into a bigger scale at incremental
investments. This led to addition of capacities
in the industry. Now, to answer your question
as to whether there will be an oversupply, it is
possible that there is a temporary over supply
in the market, if all these capacities come
on-stream at the same time. But because we
are not adding as much capacity as might be
required to service India’s paper requirements,
say, in the next five years, we will still be able
to retain our competitiveness and profitability.
Only the companies with assured backward and
forward linkages would be able to feed increased
capacities, and therefore, we expect greater
consolidation in the industry going ahead.
17
What factors drive your optimism?
EXECUTIVE DIRECTOR’S REVIEW
Paper consumption in India has witnessed an
increase owing to the economic development,
government driven education programme and
various factors like automation, increase in
corporate activities, etc. The Sarva Shikhsa
Abhiyan initiated by the Government, is alone
going to drive major paper demand given its
pan-India and all encompassing nature to
promote K-12 education in India. These factors
have translated into increase in the per capita
consumption of paper to 8.3 kg as of December
2008 compared to 7.5 kg during 2007-08, as
per the Indian Paper Manufacturers Association
(IPMA). The pulp and paper industry will grow at
an estimated CAGR of 7-8% over the next decade,
leading to additional demand. With the increase
in the capacities, the companies will have lower
costs and therefore, their margins would not be
largely impacted even with lower realisations.
In the medium term, the increased production
would be absorbed by increased demand from
consumers and higher penetration of organised
players into the unorganised markets, resulting
in better realisations.
 Availability of raw material,
ANNUAL REPORT 2008-09
especially wood, continues to be
one of the biggest challenges in
the industry. What initiatives has
the Company taken to ensure
sustained supply of low cost raw
material?
THE WEST COAST PAPER MILLS LIMITED
Even before initiating the expansion activity,
we were among the firsts in the industry to
initiate steps to ensure sustained supply of raw
materials, especially wood. With the expansion
programme, our raw material requirement
is expected to increase to 9.00 Lac MT per
annum, from the existing 4.00 Lac MT per
annum currently. To ensure consistent supply
of materials, we initiated Core Plantation
Scheme within a radius of 250 kms of Dandeli
by partnering local farmers. We focused on
promoting and using waste/degraded land for
hi-tech plantations of pulpwood trees such as
Eucalyptus and Acacia. Today, an area of 9100
acres of degraded /wasteland was covered
under Core Plantation Scheme. For the 2009
rains, preparations are in progress to cover an
area of about 7000 acres. The Company has
plans to cover around 1 Lac acres of land under
afforestation in a period of 5 to 6 years under
Company’s Plantation. Post the commissioning
of the new fibreline, we would also be able to
reduce 10% of our raw material requirement.
What is your outlook for the
Company in the coming year?
The year 2009-10 will see us moving into a
higher orbit. Our capacities will be larger, the
opportunities will be better and so would be
the challenges. Our major challenge would be
to ensure continuity of our existing operations,
in wake of the expansion activity. The later
half would witness the commissioning of our
additional capacity, so we would be focused
on faster on time commissioning. We would
continue to produce better quality of paper and
create our brand in the copier paper segment.
We believe the paper realisations would continue
to remain strong in wake of consistent demand.
How does West Coast Paper
expects to enhance shareholder
value?
By continuing to do what we do best – make the
best quality of paper, create new products and
thereby ensure better returns on our investments.
Our expansion programme would enable us to
ensure substantial cost savings both from the
existing as well as additional capacities and
that would further strengthen our margins. We
have been a dividend paying Company since
our existence. Post completion of the expansion
programme, we would emerge a stronger and
eco-friendly paper Company.
EXECUTIVE DIRECTOR’S REVIEW
19
ANNUAL REPORT 2008-09

I
THE WEST COAST PAPER MILLS LIMITED

NSIGHTS INTO BUILDING

A SUSTAINABLE ORGANISATION

Sustainable
Sustain and able.
At West Coast Paper Mills, we have aimed at becoming more sustainable every passing day.
The results have been showing in our performance, our numbers, our reputation and our
customer loyalty.

In the following pages, we introduce, three simple rules that has enabled us build a sustainable
organisation.
Production is certainty when raw material
supply is a surety
We agree! Not surprisingly then, even before we initiated
our proposed expansion, we focused our energies to create
raw material availability for the future. Wood, being an
agricultural produce, has a limited supply. Add to that, the
environmental concerns over deforestation and increased
dependence on external parties like farmers for raw
material supply. On the whole, cost efficient procurement
of raw material has become the biggest challenge in the
industry.
Since inception, we have believed in partnering local
farmers through inclusive growth. A major portion of
sourcing takes place from these local farmers and
material suppliers. Every tonne of paper required 3.1
tone of wood pulp, mostly made of pulpwood of Acacia,
Casurina, Eucalyptus, Subabul and Bamboo. Our monthly
consumption of pulpwood is currently at 4 mn tonnes and
after commissioning of the enhanced capacity, we would
require about 9 mn tonnes of pulpwood.
During the year under review, we procured 3.80 lac tonnes
of wood. The pulpwood cost increased by 9% during the
year, primarily on account of lower supply and freight
charges.
In order to create assured and consistent supply of
pulpwood, we took the following initiatives over the years:
1. Core Plantation Scheme
We have presently 9100 hectares of land under Core
Plantation Scheme within a vicinity of 250 kms of
Dandeli. These comprise of fallow agricultural land
that remains unutlised for economic agriculture.
We focused on converting such barren lands into
potential raw material farms by infusing proper
investments, technology and people. We developed
a genetically superior clonal planting stock, as a part
of our R&D initiatives that enabled us implement
such programme. We expect to source more than 4
lac tonnes of pulpwood per year from this initiative.
This would also mean that we would be able to
secure raw material supply to the extent of 44% from
21
an area within 250 km radius.
BUILDING A SUSTAINABLE ORGANISATION
2. Hi-tech Plantation
Our research and development initiatives have
enabled us to develop hybrid seedlings that can
yield 100 MT of pulpwood per hectare as compared
to 25 MT per hectare from naturally grown trees in
a rotation of 5 years. This enables the farmers to
ensure a higher yield from their land and us to ensure
higher availability from the existing land. We also
developed a model wherein modern and scientific
hi-tech plantation techniques involving cultural
operations such as soil conservation measures,
moisture conservation measures and rain water
harvesting and other cultural practices required for
the proper growth of trees are standardised. These
efforts result in the improvement of soil quality,
enhancing the water table and yield of pulpwood per
hectare.
3. Other initiatives
In order to improve the quality of pulp wood, we
distribute subsidised seeds, developed in our
various nurseries. We have four mist chambers, for
propagation of high yielding clonal planting stock
of different species and specialised nurseries for
raising Pellita seedlings.
 What you can produce depends
on what you can sell
This simple business mantra enabled us not
only to create a diversified product pipeline,
ANNUAL REPORT 2008-09
ensure production flexibility but also helped us
develop a reputed marketing and distribution
infrastructure.
Wide range of products
We developed competencies in producing a
wide range of paper products including printing,
THE WEST COAST PAPER MILLS LIMITED
writing and duplex board varieties. Our paper
products are used in multi colour printing,
diaries, calendars, share certificates, boarding
passes, ledgers, photocopying sheets, notebook,
textbooks, leaflets, annual reports, envelope,
catalogues etc. Sensing the potential opportunity
in retail sector, we also initiated the production of
paperboards, used especially for packaging. We
are also one of the market leaders in specialty
papers (MICR/non MICR) used for cheques
and ledgers. We created a flexible production
unit that is capable to produce different kinds
We developed competencies in producing a wide range
of paper products including printing, writing and duplex
board varieties
of paper products ranging anywhere from 54-
500 GSM, depending on the demand. With the
commissioning of new paper machine, we would
focus on the copier segment aggressively, where
we have managed to build a good brand.
Deeper reach
In the 55 years of existence, we have developed
a highly reputed marketing and distribution
network, comprising of more than 89 dealers
across 38 cities in 15 Indian states. Most of
our dealers have been associated with us for
more than two decades, reflecting a strong
bond. This deeper reach enables us not only to
sell our products faster, thereby result in lower
inventory cost; but also enables us to get the first
hand information about the demand trend in our
markets of presence. This information enables
us to increase the production of those products
which are having a ready demand in the market.
We have created a knowledge-based environment, with the highest
standards of work ethics and transparency
The kind of organisation you built depends
on the kind of people you hire
An organisation is as good as its people. We at
West Coat Paper have always believed in hiring
the right talent for the right job. We believe in
partnering our employees to emerge as thought
leaders and each of our over 2500 employees
typify that.
We have created a knowledge-based
environment, with the highest standards of work
ethics and transparency. We promote training
programmes – both on and off the job, to
acclimatise our employees to the new challenges
at their workplace an industry.
Our organisation has a very low attrition rate and
a stable senior management team, reflecting
stability and dedication. The organisational team
reflects a synergy of experience and youth in the
Company.
We also provide residential accomodation for our
23
employees in Dandeli. Our unit has a township
with all the vital utilities like schools, colleges
BUILDING A SUSTAINABLE ORGANISATION
banks and hospitals for our employees and their
families.
 THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2008-09

C ORPORATE SOCIAL
RESPONSIBILITY AT WEST COAST
Initiatives in Education
We believe in the power of education. Being a knowledge driven Company we have
always believed in playing an active role in the development and functioning of
educational institutions in Dandeli. We have always imparted a helping hand through
financial contributions as well as promoting education among the villages.

We have continuously supported Dandeli Education Society, a reputed educational

institute which has been a breeding ground for a large number of professionals,
including doctors, paper technologists, engineers, chartered accountants, MBAs, post
graduates and Ph.D. holders. This institution is located within our Dandeli township
and has more than 2,000 students under it. We have actively played a key role in
maintenance and management of the institution.

Social service initiatives

We actively manage and maintain the township and staff colony at Dandeli and have
provided all modern civic amenities and facilities. As a healthcare initiative, we also
supply clean drinking water and rural healthcare to the neighboring villages. In addition,
we also maintain a 30 bedded hospital with medical facilities such as OT, X-ray Unit,
ECG, ultra sonography and physiotherapy units.

Initiatives in Environment 25
We are using the Best Available Technology (BAT) in pulp manufacturing which will help

CORPORATE SOCIAL RESPONSIBILITY

in reduction of water consumption. We are implementing advanced procedures like
oxygen delignification and elemental chlorine free bleaching which ensures maximum
recycling of bleach plant filtrates.

Initiatives in Health & Safety

We are an extremely health and safety conscious Company. During 2008-09, we
were awarded by National Safety Council for safer workplaces. We conduct regular
training programmes and on-site training session for the workmen, to increase their
consciousness towards workplace safety. Safety apparel like helmets, safety belts,
goggles, gloves and gumboots are provided to the workmen. First aid facilities are
provided at the workplace and additional medical facilities like availability of ambulance
is provided round the clock. Obstruction free environment is provided at the work place.

Farmer-friendly initiatives
For every barren land we undertake corporate forestry on, we provide an employment of
nearly 450 man days per hectare annually to the local population in the Nursery segment
tending to saplings, planting, weeding, watch and ward among others. Additionally,
another 250 man days per hectare per year employment is generated at the time of
harvesting. We also provide lops and tops to locals who use them as fuel.
 M ANAGEMENT’S
DISCUSSION & ANALYSIS
ANNUAL REPORT 2008-09
THE WEST COAST PAPER MILLS LIMITED

Economic overview
The past year has been memorable for its financial calamities that
have spread to a number of EME’s (Emerging Market Economies)
globally. The resultant slowdown in demand coupled with the
significant hike in oil prices has lead to distinct inflationary
pressures in the economy. The situation aggravated in the second
half where severe liquidity crunch resulted from mounting financial
losses. The GDP growth of 9% in the Indian economy over the
last three years plunged to a dismal 7%. The repercussions were
diversely debilitating-while rising inflation led to a severe cut in
the consumer spending; drying liquidity led to a severe cut in
availability of funds, catalyzing the rise in interest rates.
 The resultant slowdown in demand coupled
with the significant hike in oil prices has lead to
distinct inflationary pressures in the economy

Paper industry overview

Paper industry structure

Pulp & Paper

Newsprint Industrial Printing & Writing

Kraft Paper Duplex Boards Grey Boards

27

White Boards MG Posters

MANAGEMENT’S DISCUSSION & ANALYSIS

Uncoated Coated Speciality

Creamwove Maplitho Branded Copier

Medium & Small

Large Newspapers
Newspapers

Global scenario
The global paper market is dominated by North America,
Europe and Asia continents. The global paper and paperboard
consumption is estimated at around 365 million metric tons
(MT) and it is expected to increase to 402 million MT by 2010.
The Asian paper market is growing at higher rate in comparison
with North America and Europe.
The export opportunity for Europe and United States of America
is decreasing due to higher growth in Asian paper production.
Consequently, Asian manufacturer particularly from China
has started to enter Western markets. The Asian player is
getting lower manufacturing cost advantage in comparison
with Western countries due to lower labour cost. Indian paper
manufacturers also have cost advantage due to adequate
availability of human resource at competitive prices. Moving
ahead, there is good scope for increasing export of writing &
printing paper from India.
 The Indian Paper Industry accounts for about
1.6% of the world’s production of paper and
paperboard

Indian scenario The industry has targeted a capital expenditure of over

The Indian Paper Industry accounts for about 1.6% of the
world’s production of paper and paperboard. The estimated
turnover of the industry is Rs. 25,000 crore (USD 5.95 billion)
approximately. The industry provides employment to more than
0.12 million people directly and 0.34 million people indirectly.
The industry was delicenced, effective from July 1997 by the
Government of India.
India has emerged as the fastest growing paper market in the
world, registering a growth of 10% in per capita consumption
of paper over the last one year. Per capita paper consumption
ANNUAL REPORT 2008-09
Rs. 20000 crore towards capacity expansion, modernisation
and enhancement of efficiencies. However, many of the projects
may not materialise due to economic slowdown
This is despite the fact that the global economic slowdown
has started impacting the paper industry and paper firms in
Indonesia and China are all set to push large quantities of coated
and uncoated wood-free grades of paper into the Indian paper
market.
Demand-supply scenario
The demand for paper is expected to grow at a CAGR of 8%

increased to 8.3 kg as of December 2008 as compared to 7.5 during 2007-11E. The factors driving the growth in this sector are:
kg during 2007-08. Gaining importance of the education sector
Also, during the current fiscal year, domestic production of Increasing literacy rate in India
paper and paperboard is estimated to be 7.6 million tonne. As Increasing advertisements
per industry estimates, over all paper consumption has now Growing demand for high quality paper
touched 8.86 million tonnes. Increasing use of paper bags over plastics
Paper demand statistics 2005 2006 2007 2008 2009E 2010E 2011E
THE WEST COAST PAPER MILLS LIMITED

Per capita consumption of paper (Kg) 7.0 7.3 7.8 8.3 8.8 9.4 10.0
Growth (%) in per capita consumption 4.2% 6.2% 6.5% 6.5% 6.5% 6.5%
Indian Population (mn) 1,096 1,114 1,131 1,147 1,164 1,182 1,199
Growth (%) 1.6% 1.5% 1.5% 1.5% 1.5% 1.5%
Total Paper demand (mn MT) 7.7 8.1 8.8 9.5 10.2 11.1 12.0
Growth (%) 5.8% 7.8% 8.1% 8.1% 8.1% 8.1%
Source : Census of India 2001, National Sample Survey Organisation (NSSO), Indian Paper Manufacturers Association (IPMA), Karvy estimates

India is amidst structural changes with increasing urbanisation,
greater penetration of education, surge in disposable incomes and
change in consumption patterns. These factors are expected to
accrue to higher demand for paper. The steady growth in paper
consumption is expected to be accompanied with a shift to
higher quality papers triggered by increased office automation,
an expansion in high speed offset printing and the substitution
of traditional packing materials such as jute and wood by paper
(especially in the agricultural and export sectors).
The increasing preference for light weight, brighter papers from
the Industrial paper segment will boost the demand for upstream
market paper products like tissue paper, tea bags, filter paper,
light weight online coated paper and medical grade coated paper.
The requirement of high quality packaging paper for exports will
catalyze the demand for duplex board.

Paper Industry demand expected to grow at a CAGR of 8% during 2007-11E

140
120
100
80
60
Lac MT

40
20
0
2010E

2011E

-20
2005

2006

2007

2008

2009

-40
Demand Supply Shortfall

Source: CMIE, RBI Annual reports, Media reports, Karvy estimates

 We believe that there is substantial
growth potential left for increasing
paper consumption in India

Outlook The world average per capita consumption is around 56 kg

Asia’s principal markets for paper production and consumption
are Japan, China, India, Malaysia, Singapore and Thailand. Japan
enjoys the highest per capita consumption of over 250 kg in Asia,
followed by Singapore of over 145 kg. The developed countries
like US, Canada, Germany and UK enjoys higher per capita
consumption of 300 kg, 243 kg, 233 kg, and 202 kg respectively.
whereas Asian average pegged at 46 kg. We believe that there is
substantial growth potential left for increasing paper consumption
in India. The increasing per capita income and social development
in terms of increased education levels is expected to boost the
paper consumption in India from the current 8.3 kgs.

Per capita consumption

300
260
220
180
140
100
60
20
-20
29
US

Japan

Canada

Germany

UK

Australia

Singapore

Thailand

China

Indonesia
France

World
Malaysia

India
Brazil

Asia(avg)
(Avg)

MANAGEMENT’S DISCUSSION & ANALYSIS

Source: Company, KSBL Estimates

The paper market in developed countries is stagnating at 2%.
However, the paper consumption in Asian countries, especially
India and China, is growing at a faster pace of 6-8 % per annum.
Copiers and coated papers are the fastest growing segments,
at an annualised rate of 15-20 %, while high-quality packaging
boards are growing at about 12%.
The pulp and paper industry is expected to grow at an estimated
CAGR of 7-8% over the next decade. The installed capacity
in the country is also slated to grow to 11.2 million tonne per
annum by 2010 from the current level of 9 million tonne.
Writing and printing paper
The printing & writing paper segment accounts for approximately
30% of the total paper production in the country. The cream
wove segment accounts for 54%, maplitho (including unbranded
copier) 26%, branded copier 6%, and coated paper about 13%
of the printing & writing paper. The demand of printing & writing
paper industry is expected to grow at a CAGR of 9% during
2007-11E and touch 3.8 million tonnes per annum by 2011.

Printing & writing Paper demand expected to grow at a CAGR of 9% during 2007-11E
40
35
30
25
20
Lac MT

15
10
5
0
-5 2005 2006 2007 2008 2009E 2010E 2011E
-10
Demand Supply Shortfall

Source: Indian Paper Manufacturers Association (IPMA), Karvy estimates

 OFC demand is increasing and no major
capacities are expected, the division’s
performance is set to improve further
Printing & writing paper are used mainly for publications and
communications. Factors such as technological developments
and increasing literacy rate due to the campaign for literacy
drive and spread of education in the country are driving printing
& writing paper demand. The increased budget allocation for
schemes like Sarva Shiksha Abhiyaan and secondary education
by 22.8% and 20% to Rs. 131 billion, and Rs. 45.5 billion
respectively during budget 2008-09 over 2007-08 and exports
of children books will provide necessary fillip to the demand of
printing and writing paper.
Printing and writing paper supply is expected to increase at
ANNUAL REPORT 2008-09
CAGR of 11% during 2007-11E. Their prices are heading
northwards due to demand-supply mismatch. The paper
companies in India have been revising prices due to rise in input
costs coupled with buoyant demand. It is expected that the pulp
(raw material) price would soften in midterm and firm in long
term because of higher demand for paper.
Demand for printing & writing paper is correlated to population
THE WEST COAST PAPER MILLS LIMITED
growth, literacy rates, private and public spending on education,
increasing expenditure on advertisements by corporate and
change in income distribution. This will lead to greater demand
for high value product segments such as coated paper, maplitho
and copier.
Cable industry overview
Industry Structure and Development
There are 12 manufacturers of Optical Fibre Cables (OFC) having
installed capacity of around 7,00,000 KM. It is envisaged that
in the current year, the requirement of BSNL/MTNL of OFC will
be about 70000 KM. Besides this, other private operators like
Reliance, Bharti, Tata Teleservices, VSNL, Vodafone, etc., are
also expanding their infrastructure significantly, which generates
additional requirement of cables. Considering growing demand
for bandwidth in telecom network, the Company is focusing on
high fibre count Optical Fibre Cable.
Opportunities & Threats
The telecom subscriber base is growing rapidly. Apart from
BSNL/MTNL, the private operators are positioning themselves
aggressively and are expanding their infrastructure rapidly.
BSNL and MTNL are trying to retain their supremacy amid the
tough competition. The opportunities in providing triple play
services (voice data & video) requiring higher bandwidth and
e-governance projects are driving the demand for optical fibre
cables. OFC has bright prospects as teledensity continues to
grow rapidly). Ministry of Information Technology has also
taken up projects at State levels to implement e-governance to
be spread up to Panchayat level. However, due to industry over
capacity and continued stiff competition, the margins are under
pressure.
There being too many cable manufacturers, it has developed
steep competition in both private and Govt. customers. This
has resulted in non-remunerative prices. Bigger houses are
managing their business with the scale of the economy.
Emerging new technologies like CDMA based WLL are also to
some extent outpacing conventional cable base business.
Industry Outlook
OFC demand is projected to grow by 20% to over 6 million
FKM in current year. The increase in the demand for OFC will be
driven by the use of Cable TV, roll out of Broadband Networks,
inter-connection of mobile networks using OFC and the use of
OFC for laying/expanding national long distance networks. As
OFC demand is increasing and no major capacities are expected,
the division’s performance is set to improve further. The
Company has been successful in making inroads into export
markets in Europe, Vietnam, Bangladesh, Egypt and Dominican
Republic and continues its efforts in this direction.
Company overview
About the Company
The West Coast Paper Mills Ltd. (WCPM) is the flagship
Company of SK Bangur Group and is one of the leading
integrated pulp and paper mills in India. The Company also has
interests in telecom cables and power sector.
Corporate highlights 2008-09
Net sales increased by 6% from Rs. 584.09 crore in 2007-
08 to Rs. 619.75 crore in 2008-09
EBIDTA increased by 11% from Rs. 113.25 crore in 2007-
08 to Rs. 125.36 crore in 2008-09
EBIDTA margin improved from 19.39% in 2007-08 to
20.23% in 2008-09
Net profits increased by 11% from Rs. 81.90 crore in
2007-08 to Rs. 90.54 crore in 2008-09
Net profit margins increased from 14.02% in 2007-08 to
14.61% in 2008-09
 On the industry front, the Company
expects robust demand for writing and
printing paper during the year along
with the packaging paperboard

Segmental performance activities, etc. The activity is expected to be completed in

December 2009, with the present capacity witnessing an
Segment-Wise Performance Review addition of about 78% of its existing size. With the proposed
Turnover Turnover Y-o-Y capacity addition of 1,40,000 MT, the Company’s capacity
2008-09 2007-08 increase/
Rs. in Rs. in decrease will increase from 1,80,000 MT presently to 3,20,000 MT
crore crore (Rs./crore) in 2009-10.
Paper and Paper board 618.91 597.38 21.53 The total project cost initially projected at Rs. 1,100
Optic Fibre Cables 43.44 55.66 - 12.22 crore witnessed an increase of Rs. 200 crore This was
JFTC plant 0.00 0.02 - 0.02 on account of increased investment on high capacity
Wind Mills 0.35 0.46 - 0.11 machines, increased civil costs and exchange rate
Total turnover 662.70 653.52 9.18 variation, etc. While the previously estimated Rs. 1,100
Detailed segment-wise performance has been indicated in the crore, was funded through a blend of debt (Rs. 725 crore),
Directors’ Report. promoters’ contribution (Rs. 50 crore), equity (Rs. 150
1. Paper and paperboard division crore) and internal accruals (Rs. 175 crore). The over run
Major developments during the year of Rs. 200 crore is being financed through internal accruals
The year 2008-09 was marked by the significant ongoing of the Company. During the year under review, entire loan
expansion activity for the Company. The biggest challenge of USD 165 million has been disbursed.
was to ensure glitch-free functioning of existing operations Exports 31
in the wake of continuing expansion activity within
The Company enjoys Star Trading status that provides it
the same premises. The expansion activity witnessed

MANAGEMENT’S DISCUSSION & ANALYSIS

substantial development during 2008-09 with all the major
machineries being received within the premises of the
Company’s Dandeli unit. The Company’s capacity in paper
and paperboard production was maintained in spite of
project activities going on in full swing. During the year
under review, the Company’s sales also registered an
increase mainly on account of higher realisations of paper
and duty reduction.
The year also witnessed increase in the rates of wood,
waste paper cuttings, chemicals & dyes, coal, etc.
However, on account of higher realisations, the Company
was able to maintain its margins.
Location
The Company’s paper mill enjoys an optimal location with
consistent availability of power and water and its proximity
to the major paper markets as well as raw material hubs.
The Company’s Dandeli unit is fully integrated and located
in Karnataka. The expansion project is being implemented
on the present land only. The Company’s Dandeli unit is
a mini-township with all the major amenities including
school, college, medical facilities, etc. within its vicinity.
Capacity Expansion
(M.T. per annum)
Present capacity 1,80,000
2.
Proposed capacity addition 1,40,000
Total capacity 3,20,000
During 2008-09, the Company continued to implement its
expansion activity. The year witnessed lot of challenges
relating to expansion programme in terms of logistics
management, installation of equipment, construction
with additional incentives in its overseas trade. During the
year, the Company’s exports of paper and paperboards
decreased marginally from Rs. 16.32 crore in 2007-08 to
Rs. 16.20 crore in 2008-09 on account of unremunerative
rates in the overseas markets.
Clients
The Company supplies its products through dealers, who
in turn sell it to reputed converters, publishing houses and
end users.
Outlook 2009-10
The 2009-10 will witness a renewal for the Company.
The Company’s most prestigious and highly anticipated
expansion programme will be completed in December
2009 and the capacity will go live. While the major focus
in the first three quarters would remain on completing the
expansion activity; greater importance should be laid on
uninterrupted operation of the existing capacities.
On the industry front, the Company expects robust demand
for writing and printing paper during the year along with the
packaging paperboard. The Company expects the increased
thrust on educational initiatives by the Government would
result in concrete demand from all the sectors of the
economy.
Optical fibre cables division
Operational highlights
Consisted of 7% of the total turnover of the Company
in 2008-09
Production decreased by 26% from 22829 Km in
2007-08 to 16787 Km in 2008-09
Divisional turnover decreased by 22% from Rs. 55.68

ANNUAL REPORT 2008-09
THE WEST COAST PAPER MILLS LIMITED
3.
SWOT Analysis
Strengths
The Company’s cable plant is
situated in Mysore and is spread
over an area of 10 acres
crore in 2007-08 to Rs. 43.44 crore in 2008-09
Major developments during 2008-09
The year witnessed substantial reduction in demand for
optical cables. This resulted in lower production and sales
for the Company’s unit during the year under review.
The Company’s cable plant is situated in Mysore and
is spread over an area of 10 acres. The manufacturing
capacity of the telecom division is 30,000 Cable KM (0.75
million FKM, 6% of Industry capacity).
Exports
During 2008-09, the Company’s divisional exports
witnessed more than 3-fold jump from Rs. 2.59 crore in
2007-08 to Rs. 8.26 crore in 2008-09. This was mainly on
account of tapping new demand centres like Egypt.
Employees
The division has 62 permanent employees as on 31.3.09
as against 65 employees as on 31.03.08.
Windmills
Operational highlights
Power generation decreased by 30% from 20.43 Lac
Kwh in 2007-08 to 14.24 Lac Kwh in 2008-09 due to
lower wind velocity in the State.
Divisional turnover decreased by 23% from Rs. 45.94
Lac in 2007-08 to Rs. 35.36 Lac in 2008-09.
Location and capacities
The Company has six windmills with an aggregate capacity
of 1.75 MW in Tamil Nadu.
Five decades of proven leadership
Strong pulpwood procurement systems
Qualified management team
Self sufficient on power
Among the first movers in raw material cultivating initiatives
Technology at par with the global majors
Continuous innovation and quality control
Strong branding as a multi-size and quality specialist
Favorable demand & supply situation will keep the margins
intact
Has been expanding capacities on a regular basis to drive
growth
Presence in copier paper, which is a high growth segment
Enjoys dominance in the MICR cheque paper segment
Weakness
Not the largest of capacities in India in paper sector
Optical cable business underperforming
Opportunities
The sustenance of strong demand for paper in India
Presence across all the paper grades, to result in one stop
shop
Post completion of expansion, the Company will be able to
offer a superior quality and command a price premium in
the market
Threats
Delay in completion of project would lead to escalated cost
Higher dependence on external factors for raw material
requirements
Human Resources
The Company employed 2,551 people as on 31.03.2009 as
against 2,526 people as on 31.03.2008. The Company will
witness an increase in its human resources on account on
expansion activity, where the production capacity is slated to
increase more than 80% of the present capacity.
The industrial relations were cordial and the management
thoroughly acknowledges the support from the employees
at all levels. The present tripartite settlement with the Joint
Negotiations Committee/Unions is in force from 1.1.2007 to
31.12.2010.
West Coast Paper Mills has a full-fledged colony in Dandeli,
where it accommodates its employees. This town has been
built with all the vital utilities like schools, colleges, banks and
hospitals, etc.
Internal Control System
The Company has an adequate system of internal controls to
safeguard and protect from loss, unauthorised use or disposition
of its assets. All transactions are properly authorised, recorded
and reported to the management. The Company is following all
the Accounting Standards for properly maintaining the books of
accounts and reporting of financial statements. The Company
has an Internal Audit department and has also appointed external
Internal Auditors to review various areas of the operations of the
Company. The audit reports are reviewed by the management
and the Audit Committee of the Board periodically.
RISK
MANAGEMENT
1 Industry risk
The paper industry is a highly capital intensive business.
With the increased capacities during 2009-10, the industry
in India can witness an oversupply, resulting in lower
margins and increased costs for the paper companies.
Risk mitigation
Paper consumption in India is greatly influenced by
education, FMCG and pharmaceutical segments. The
significant outlay towards education has spurred a huge
demand for paper. Besides, the recent growth in FMCG
categories and expansion in organised retail have led to
increased demand for high-quality packaging paper. This
is a big demand driver for large paper companies that
have consciously invested in state-of-the-art technology
in the past 8-10 years. Further, the increasing exports of
pharma products from India are acting as a stimulus for
paperboards.
With the demand on a rise, the companies have been
investing for technological upgradation. The sector is highly
capital-intensive. However, only large capacity plants have
access to cutting-edge technologies, therefore are able to
minimise their costs in the long run and offer superior quality
products. With the macro factors intact in the Indian growth
story, the oversupply if any, would be expected to remain
only in the short term as most of the unviable units would
become unsustainable in an environment-conscious world.
2 Realisations risk
A decline in paper realisations could severely dent
profitability and growth.
Risk mitigation
During 2008-09, the Indian paper industry was the fastest
growing industry in the world. On account of sustained
demand from education, FMCG, Pharma sectors, the
industry is expected to witness strong demand. The
realisations will further improve post- commissioning of
world-class capacity, which will enable the Company to
offer superior quality of products at better efficiencies.
3 Input risk
Raw material procurement is one of the biggest challenges
for the paper industry. With the Government policy
forbidding companies from utilising barren land for
plantation and pulp production, the industry depends largely
on small plantations owned and cultivated by the farmers.
This results in a risk of procuring required raw materials
timely and at competitive costs.
Risk mitigation
The Company has invested and developed a raw material
cultivating programme in 2006. As on 31.03.2009, the
Company’s plantation programme consisted more than
9,000 acres of barren land, where it partners with the
farmers to grow plantations and to meet their requirement
of fuel and fodder. In addition, the Company also enjoys
the support and robust relationship with more than 2000 33
farmers, ensuring sustained raw material supply for its
MANAGEMENT’S DISCUSSION & ANALYSIS
existing operations.
4 Environment risk
Non-compliance with environment protection policies or
related issues could dent operation and can get work to a
complete standstill.
Risk mitigation
The Company has state-of-the-art pollution control and
treatment equipments to reduce the effluent levels and
has gone for ECF Technology for new Fibreline being
commissioned in August 2009.
5 Project delay risk
Any delay in the commissioning of Company’s additional
capacity would result in potential revenue losses and would
attract cost escalation.
Risk mitigation
The Company’s project is scheduled to be completed in
December 2009. The expected time required for completion
of the project is 3 years, the optimal for the commissioning
of a huge capacity project.
 D
ANNUAL REPORT 2008-09

IRECTORS’ REPORT
THE WEST COAST PAPER MILLS LIMITED

Your Directors are pleased to present the 54th Annual Report of the Company, together with the
audited accounts for the year ended 31st March 2009.

Financial Results
(Rs. in Lac)
2008-09 2007-08
Gross Profit 12,036.19 11,438.35
Balance brought forward 316.58 140.03
12,352.77 11,578.38
ALLOCATIONS
Depreciation 1,990.28 2,042.71
Taxation – Current 1,149.00 1,095.00
– Deferred (156.91) 110.31
Proposed Dividends – Preference Shares 3.03 -
– Equity Shares 1,254.98 1,721.25
Tax on Dividends 213.80 292.53
Debenture Redemption Reserve 6,500.00 -
General Reserve 905.38 6,000.00
Balance carried forward 493.21 316.58
12,352.77 11,578.38
 The production of paper, paperboard and duplex
board increased from 1,69,891 MT in 2007-08
to 1,73,682 MT in 2008-09, i.e., by 3,791 MT

Dividend The production was marginally higher than the previous

year as there was shutdown of one of the duplex board
For the year ended 31st March 2009, your Directors
machines for a period of 30 days during last year. In other
recommended dividend @ 8.5% for 30th & 31st March 2009 on
words, the production level is stagnant as there is no
65,00,000 Cumulative Redeemable Preference Shares of
addition to the capacity on the existing paper machines.
Rs. 100/- each and a dividend of Rs. 2/- per equity share
B) Cable Division – Mysore
(100%) on 6,27,48,908 Equity Shares of Rs. 2/- each, subject
(i) Optical Fibre Cable
to members’ approval.
Production and sales has been reduced during the year

Performance under review to 16,787 km and 16,762 km, as against

The Company, during the year under review, was able to sustain
the peak level performance achieved during earlier years. It also
successfully set new benchmarks in corporate performance,
drawing sustenance from the upswing in production as well
as sales realisations, reduced power and fuel costs, lower
maintenance cost, etc conjoining improved working results
of the Cable Division. To put the performance in a clearer
perspective, this was achieved in the face of persistent increase
22,829 km and 22,836 km in the previous year,
respectively. The turnover, in terms of value, amounted
to Rs. 43.44 crore as against Rs. 55.66 crore (both
inclusive of excise duty) during the previous year. The
decrease in the production and sales was on account
of comparatively lower demand from private telecom
operators.
35
(ii) J. F.T.C. PLANT
The J.F.T.C. plant was not operated through out this

in cost of raw materials, chemicals, coal, exchange rate
difference coupled with increase in the wage bill on account of
steep hike in the Variable Dearness Allowance during the year
Such a performance, in particular against the backdrop of global
and national economic slowdown, rises naturally above the
satisfactory level.
DIRECTORS’ REPORT
year as well as last year for want of orders. However,
the facilities were partially utilised for production of
Optical Fibre Cable during these years. Turnover was
Nil against Rs. 1.98 Lac in the previous year (out of
stock).

The Company posted an all-time high gross profit of Rs. 120.36

crore as against Rs. 114.38 crore in the previous year, which
Exports
The export of paper and paperboard and duplex board decreased
is an increase of Rs. 5.98 crore or a 5 per cent growth. The net
from 5,396 MT worth Rs. 16.32 crore (FOB) in 2007-08 to
profit increased by 11 per cent from Rs. 81.90 crore to
4291 MT worth Rs. 16.20 crore (FOB) in 2008-09 due to
Rs. 90.54 crore or by Rs. 8.64 crore.
unremunerative rates. 2361 km of Cable worth Rs. 8.26 crore

Divisionwise Performance was exported in 2008-09 compared to 1,204 km of Cable worth

Rs. 2.59 crore in 2007-08. Three fold growth in cable export is
A) Paper and Duplex Board Divisions
mainly on account of penetration into new countries like Egypt.
The production of paper, paperboard and duplex board
increased from 1,69,891 MT in 2007-08 to 1,73,682 MT
in 2008-09, i.e., by 3,791 MT. Simultaneously, the sale
Raw Materials
The Company procured 3.80 lac tonnes of wood in the year
of paper, paperboard and duplex board increased from
under review as against 3.40 lac tonnes in the previous year,
1,70,193 MT in 2007-08 to 1,70,686 MT in 2008-09, i.e.,
which resulted in increased stock of wood. The cost of wood
by 493 MT. There was an increase in turnover from
has gone up consecutively in the sixth year by 9 per cent, due
Rs. 597.38 crore in 2007-08 to Rs. 618.91 crore in 2008-
to an increase in royalty, procurement rates, as well as freight
09 (both inclusive of excise duty), i.e., higher by Rs. 21.53
charges. The transportation cost of raw material by road as well
crore or 4%, due to better sales realisation consequent to
as by rail has increased due to hike in rates. Procurement rates
revision in sale prices and reduction in excise duty from
are also likely to go up further in the current year due to stiff
12% to 8% w.e.f. 1st March 2008 which was retained by
competition.
the Company The Company, however, has passed the
entire benefit of reduction in Cenvat rate by 4% w.e.f. 7th The Eucalyptus grown in drier areas is affected by gall disease.
December 2008, to the market. While efforts to contain the disease through pesticides have
 Company has plans to cover around 1 Lac acres
of land under afforestation in a period of 5 to 6
years under Company’s Plantation Scheme
not proved effective, scientists in Israel, it is reported, have
found a biological method to control the gall wasps. They have
successfully mass-reared the parasitoid wasps that kill the gall
wasps, thus preventing the spread of the disease.
This eco-friendly biological method will be utilised to curtail the
spread of disease. However, recently it has been observed that
the above disease is controlled automatically by nature and is
more a seasonal one rather than epidemic in nature. This will,
however, have a negative effect on the overall availability of
Eucalyptus wood grown in the drier areas in the near future.
In pursuance of the Company’s objective of greening waste
ANNUAL REPORT 2008-09
lands within 250 Kms. radius of the factory, an area of 9,100
acres of degraded / waste lands was covered under Core
Plantation Scheme. For the 2009 rains, preparations are in
progress to cover an area of about 7,000 acres. Company has
plans to cover around 1 Lac acres of land under afforestation
in a period of 5 to 6 years under Company’s Plantation
Scheme. The identification of land has been completed.
THE WEST COAST PAPER MILLS LIMITED
Simultaneously, distribution of seedlings to the farmers in
parts of Karnataka and Tamil Nadu are in progress enhancing
the overall availability of raw material within the catchment
area. The Company has distributed 110 Lac seedlings during
2008-09.
Expansion Programme –
Rs. 1300 Crore
The Company’s expansion programme to increase its production
capacity to 3,20,000 TPA, is in progress with stage-wise
execution and implementation of projects. The revised project
cost would be about Rs. 1300 crore as against estimate of
Rs. 1100 crore., i.e., higher by Rs. 200 crore., due to change
in the scope, ordering of equipments with higher capacity,
increase in civil cost, exchange rate variation, etc. The over-run
in the project cost will be funded by internal accruals. It was
originally expected that Fibreline will be commissioned by March
2009 and Paper M/c VI, by September 2009, but looking to the
present progress of the project, Fibreline is expected to be fully
operational from August 2009 and Paper Machine No. VI, by
January 2010.
The entire Project Loan of USD 165 Million has been disbursed
by the lenders with the last disbursement of USD 19 Million on
30th/31st March 2009. The Company has also been sanctioned
project loan of Rs. 100 crore by Central Bank of India against
Cenvat Receivables, since Cenvat could not be utilised as duty
on paper and paperboard reduced from 12% (when the project
was conceived) to 4% ad velorem. The Company has drawn
Rs. 25 crore and balance will be drawn over the period.
Share Capital
Out of the Equity Share Capital of Rs. 200 crore to be raised,
the Company had raised Rs. 85.46 crore by way of GDR/QIP
issue in November/December 2007. Further shares of Rs. 22.25
crore were issued to Promoter Group on 25th March 2008
and amount of Rs. 2.77 crore as advance against warrants
was forfeited as promoters decided not to convert the balance
warrants on 29th January 2009.
An advance of Rs. 25 crore was brought in by the promoters
on 4th February 2009 to meet the debt:equity ratio as
stipulated by the lenders, against which 30 lac equity shares
@ Rs. 45/- per share (including premium of Rs. 43/- per
share) amounting to Rs. 13.50 crore were allotted on 13th
March 2009. Further, 23,73,578 equity shares @
Rs. 48.45 per share (including premium of Rs. 46.45 per
share) amounting to Rs. 11.50 crore are allotted to the
persons/ entities in the promoter group as decided by the
Board of Directors in the meeting held on 27th May 2009
and approved by the members of the Company in the Extra-
ordinary General Meeting held on 26th June 2009. Thus, the
promoter group has brought in the total amount of Rs. 50 crore
as committed for the Project.
The Company has raised Rs. 65 crore from IFCI Ltd., New Delhi,
by issue of 65,00,000 Cumulative Redeemable Preference
Shares of Rs. 100/- each, on 30th March 2009. Thus the
Company has raised the total share capital of Rs. 200 crore,
including Preference Shares, for the Project purpose.
The proceeds from the equity issues have been utilised for
expansion-cum-modernisation programme. There is no deviation
from the purpose stated in the offer documents, except proceeds
out of preference share issue of Rs. 65 crore which is lying as
bank balance at the end of the year.
Exchange Rate Variation
The Company used to adjust the foreign currency exchange rate
differences on amounts borrowed for acquisition of fixed assets,
to the carrying cost of fixed assets in compliance with Schedule
VI to the Companies Act, 1956 as per legal advice, which is
consistent with the amendment to the Accounting Standard
AS-11 issued vide Notification No.G.S.R. 225(E) dated
31.03.2009 by the Ministry of Corporate Affairs. A detailed
explanation in this regard is given vide Note No.8 to the Notes on
Accounts, forming part of this Annual Report.
 The Company is certified to ISO
14001 (2004) International Standard
Environmental Management System
by Det Norske Veritas, the Netherlands
ISO 9001 (2000) Quality
Management System
The Company is certified to ISO 9001 (2000) International
Standard Quality Management System by Det Norske Veritas,
the Netherlands. The validity of this certification is up to
May 2010. The Company is fully committed to continually
improve upon the implemented Quality Management System
for various operational processes and services as a long term
strategy.
ISO 14001 (2004)
Environmental Management
System
The Company is certified to ISO 14001 (2004) International
Standard Environmental Management System by Det Norske
Veritas, the Netherlands. The validity of this certification is up
to January 2012. The Company is committed to continually
improve upon the implemented EMS to ensure full compliance
with applicable environmental as also other legal and regulatory
requirements. As a long term and tactical environmental
strategy, the Company has embarked upon an expansion and
modernisation of the mills at their existing site with best available
technologies as a commitment towards corporate responsibility
on environmental protection and fulfillment to corporate
governance as well.
OHSAS 18001 (2007)
Occupational Health and
Safety Assessment Series
The Company takes pride on being certified to the OHSAS
18001:2007 Health and Safety Management System in January
2009 from Det Norske Veritas, the Netherlands. The validity of
this certificate is up to January 2012. In tandem with the two
implemented Quality and Environmental Management Systems,
the OHSAS 18001 Certification further reinforces Company’s
commitment to comply with applicable enactments which apply
not only to its existing operations but also as a commitment
towards corporate responsibility and fulfillment to corporate
governance as well.
Corporate Social
Responsibility
The Company’s response to the developmental needs of the
society has been an integral part of its corporate philosophy
ever since its incorporation, much before the concept of
Corporate Social Responsibility appeared on the Indian corporate
horizon. The Company deserves the lion’s share of credit in
developing Dandeli an ideal third-tier city in Karnataka with good
infrastructural civic amenities, educational, medical and public
health facilities. The sphere of the Company’s social service
has been enlarged to the surrounding areas of Dandeli and its
adjoining districts with the launching of the massive plantation
programme, which has contributed in a large measure to the
greening of the degraded lands of farmers in addition to the
creation of rural employment to thousands of families. 37
During the year under review the Company continued to
DIRECTORS’ REPORT
champion the cause of providing quality education in Dandeli
through Dandeli Education Society, its educational arm, by
providing infrastructural and financial support to its institutions
that span pre-primary to post-graduate education. Its student-
support twin programme, viz., distribution of subsidised
exercise note books to the students of Dandeli and Vidyavardhak
Financial Assistance Scheme to School and College students
of Dandeli have been well taken by the student community and
much appreciated.
The Company also further strengthened its total maintenance of
Bangur Nagar Colony for employees as a self contained, model
residential complex with civic facilities and amenities such as
the 30-bedded hospital, well laid-out roads, lighting, treated
drinking water supply, sanitation, etc., as well as the temple, the
playground, the gymnasium, the employees’ and officers’ clubs,
the cable TV, etc. Service to the neighbouring villages in the form
of drinking water supply and rural health visits of doctors and
medical staff have also continued.
The Company’s plantation programme has been extended on a
massive scale with 9086 acres of land being covered under the
programme and 110 lac genetically superior quality seedlings
having been distributed to farmers in the rural areas in 2008-09
along with the technical know-how to grow crops from sowing
to harvesting.
 The Company is complying with the revised Clause
49 of the Listing Agreements with regard to Corporate
Governance and a report to that effect was also filed with
the Stock Exchanges
Conservation of Energy,
Research & Development,
Technology Absorption &
Foreign Exchange Earning/
Outgo
The information required under Section 217(1)(e) of the
Companies Act, 1956, read with Companies (Disclosure of
particulars in the report of the Board of the Directors) Rules,
ANNUAL REPORT 2008-09
1988, is annexed hereto and forms a part of this report.
Particulars of Employees
The particulars of employees, as required under Section 217
(2A) of the Companies Act, 1956, are given in a separate
Annexure to this Report.
Management’s Discussion
THE WEST COAST PAPER MILLS LIMITED
and Analysis
A comprehensive Management’s Discussion and Analysis
Report, forming a part of the Corporate Governance is carried
elsewhere in this annual report.
Corporate Governance
Pursuant to Clause 49 of the Listing Agreements with the stock
exchanges (as amended), a Corporate Governance Report is
made a part of this annual report.
A certificate from the auditors of the Company regarding
compliance of the conditions of Corporate Governance as
stipulated by Clause 49 of the Listing Agreements is attached
with this report.
The Company is complying with the revised Clause 49 of the
Listing Agreements with regard to Corporate Governance and a
report to that effect was also filed with the Stock Exchanges. The
Company has obtained declaration from the Directors and senior
Management members of the Company for compliance of code
of conduct and the Certificate from CEO/CFO was placed before
the Board of Directors at the meeting held on 29th June 2009.
Directors’ Responsibility
Statement
The Directors’ responsibility statement as required under Section
217(2AA) of the Companies Act, 1956, reporting the compliance
with the accounting standards, is attached and forms a part of
this report.
Directors
Shri PN Kapadia and Shri RN Mody retire from the office by
rotation in terms of Article 143 of the Articles of Association
of the Company, but being eligible, offer themselves for
re-appointment at the ensuing Annual General Meeting. Brief
resume of the Directors proposed to be reappointed, nature of
their expertise in specific functional areas, names of companies
in which they hold directorships and memberships of Board
Committees, shareholding, as stipulated under Clause 49 of
the Listing Agreements with the Stock Exchanges in India, are
provided in the Notice to Members, forming part of this Annual
Report.
Lt.Gen.(Retired) Utpal Bhattacharyya has been appointed as
additional Director by the Board of Directors under the provisions
of Section 260 of the Companies Act, 1956, with effect from
27th May 2009. He holds the office up to the date of ensuing
Annual General Meeting of the Company and is eligible for
reappointment as Director of the Company. The Company has
received a Notice under Section 257 of the Companies Act,
1956 proposing his candidature for appointment as Director of
the Company, subject to retirement by rotation.
 RNPL has discharged term debt of Rs. 40.63 crore
in 2008-09; consequently, the amount of Corporate
Guarantee given by the Company has been reduced to
Rs. 107.91 crore against realigned debt of Rs. 210 crore
Shri Bodhishwar Rai, who was a Director on the Board, expired
on 16th October 2008. The Directors place on record their
appreciation of the valuable advice given by Late Shri Bodhishwar
Rai during the period he was a Director of the Company.
Auditors
Messers Batliboi & Purohit, Chartered Accountants, will retire at
the end of the 54th Annual General Meeting of the Company but
offer themselves for re-appointment for the ensuing year.
Cost Audit
The audit of the cost accounts of the Company for the year
ended 31st March 2009 is being carried out by Shri S.
Sankaranarayanan, Cost Accountant, Mumbai, and after
completion of the audit he will be submitting his report to the
Company Law Board.
Rama Newsprint &
Papers Ltd.
Rama Newsprint & Papers Ltd (RNPL) has produced 124,508
MT (94% capacity utilisation) as against 138,771 MT (105%
capacity utilisation) achieved in the previous year. The working
results of this Company were affected due to unremunerative
prices of newsprint and increase in the cost of waste paper
cuttings and other inputs, which has resulted into cash loss
before depreciation and tax of Rs. 14.19 crore as against Profit
before depreciation and tax of Rs. 36.15 crore in the previous
year. Net Loss of Rs. 27.27 crore was incurred in the year
under review as against Net Profit Rs. 1.07 crore earned in the
previous year.
The Company holds 36.32 per cent of the equity share capital of
Rama Newsprint and Papers Ltd (RNPL) with an investment of
Rs. 45.41 crore (market value Rs. 26.62 crore as on 31.3.2009)
whereas other group companies hold 0.52% of the share capital
of RNPL. The voting rights held by the Company are 55.46 per
cent, including the voting rights acquired as per the shareholders
agreement dated 6.9.2003 with Vashu Group (Shri Vashu J.
Ramsinghani and persons acting in concert).
RNPL has discharged term debt of Rs. 40.63 crore in 2008-
09; consequently, the amount of Corporate Guarantee given by
the Company has been reduced to Rs. 107.91 crore against
realigned debt of Rs. 210 crore. Further RNPL has made
payment of Rs. 5.16 crore in the current year by which the
Corporate Guarantee now stands further reduced to Rs. 102.75
crore.
Industrial Relations
The Company’s industrial relations are cordial. Your Directors
acknowledge the support and co-operation from employees at
39
all levels.
DIRECTORS’ REPORT
Acknowledgement
Your Directors would like to thank the Union and State
Governments, banks, financial institutions, customers, suppliers
and shareholders for their continued support.
For and on behalf of the board
S.K. BANGUR
Chairman and Managing Director
Place : Mumbai
Dated : 29th June 2009
 ANNEXURE TO
DIRECTORS’ REPORT

Information as per Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of particulars in the Report of
Board of Directors) Rules, 1988, and forming part of the Directors’ Report to the members for the year ended 31st March, 2009.

A. Conservation of energy: florescent tubes and optimum voltage supply for the
ANNUAL REPORT 2008-09

illumination area to conserve energy.

a) Measures taken for Energy Conservation :
• Replacement and reuse of Pm-I, II & III Fiber-mizer
• Installation of energy efficient New Super Batch
rejects (Resource conservation).
Cooking Plant supplied by Metso Paper Sundsvall,
• Partial replacement of furnace oil with Producer
Sweden.
Gas at Rotary Lime Kiln by installation of wood dust
• Installation & commissioning of centralised
based Producer Gas Plant.
Centrifugal Compressors in place of Reciprocating
• Special laminated felts used at PM II 2nd Press in
THE WEST COAST PAPER MILLS LIMITED

Compressors.
place of inner fabric & felt thereby saving power by
• Replacement of old conventional identified pumps,
not running inner fabric blower.
vacuum pumps & agitators with energy efficient
• OSR of stock controlled at Brushing Refiner
versions in various process sections of Pulp Mill,
stage and 1 No. Disc Refiner by-passed in Stock
Stock Preparation (Paper & Duplex), Paper Machines
Preparation in PM II.
and Chemical Recovery.
b) Projects under Installation :
• Modification of identified process loop to bypass
• Replacement of old vacuum pumps with energy
pumps and agitators for power saving in Pulp Mill,
efficient pumps in phased manner.
Stock Preparation and Chemical Recovery.
• Replacement of Paper Machine No. IV and Stock
• Installation of VFDs for optimised power
Preparation (Duplex and Writing & Printing) old
consumption in identified process areas of Pulp
conventional agitators with energy efficient agitators.
Mill, Stock Preparation, Paper Machine & Chemical
Recovery Departments. • Replacement of old higher capacity fan pumps of
Paper M/c. No. 5 with lower capacity fan pumps
• Trimming of pump impellers in Paper Machine,
along with VFD.
Chemical Recovery & Power House.
• Replacement of outdated & inefficient old water
• Use of back water from various process sources
supply pumps by new efficient pumps for Filter
in identified process areas to conserve fresh water
House and River Pump House.
in Pulp Mill, Duplex Board, Stock Preparation and
Chemical Recovery. • Replacement of Refiner Disc Pattern with suitable
Disc Pattern for better controlled refining and power
• Installation of energy savers, photocells, auto on-off
saving in Paper Machine.
system, transparent sheets, energy efficient chokes/
 Year ended Year ended
Power & Fuel Consumption
31st March 2009 31stMarch 2008
1 Electricity
a. Purchased:
Units (Kwh in lac) 55 68
Total amount (Rs./lac) 361 428
Rate/Unit (Rs.) 6.51 6.33
b. Own Generation :
(i) Through Diesel Generators 41
Units (Kwh in lac) 95 108

DIRECTORS’ REPORT
Units per litre of Diesel/Furnace Oil 4.18 3.91
Cost/Unit (Rs.) 4.50 4.93
(ii) Through Steam Turbines (Back Pressure)
Units (Kwh in lac) 130 40
Units per litre of Fuel Oil/Gas -- ---
Cost/Unit (Rs.) 0.70 0.59
(iii) Through Steam Turbine (Partial Condensing)
Units (Kwh in lac) 1683 1765
Units per litre of Fuel Oil/Gas -- ---
Cost/Unit (Rs.) 2.07 1.71
2 Coal (Steam & Slack Coal of Grades ‘B’ to ‘F’ used in Boilers)
Quantity (Tonnes) 202102 184123
Total Cost (Rs in lac) 6200 4832
Average rate (Rs./tonne) 3068 2624
3 Furnace Oil
Quantity (KL) 2344 2878
Total Amount (Rs in lac) 442 551
Average rate (Rs./KL) 18846 19157
4 Diesel Oil
Quantity (KL) 23 24
Total Amount (Rs in lac) 8 8
Average rate (Rs./KL) 33160 32865
Consumption per unit of production :
Paper / Paper Board & Multi-layer Board (Per tonne)
Electricity (Kwh) 1131 1166
Furnace Oil (Ltrs.) 14 17
Coal (MT) 1.16 1.08
Diesel Oil (Ltrs.) 0.13 0.14
 B. Research & development:
1. Specific areas in which Research
Development is carried out.
ANNUAL REPORT 2008-09
2. Benefits derived as a result of the
Research & Development
3. Future plan of action
THE WEST COAST PAPER MILLS LIMITED
4. Expenditure on R & D.
Research & Development activities were mainly
concentrated in the following areas:
• Introduction of Binary Sizing, resulting in better
runnability / productivity of the Paper Machine
especially in Surface Sized variety of Paper.
• Introduction of wet end additives in order to improve
the strength properties of paper with improved
ash %, leading to a cleaner white water system &,
conservation of the fibrous raw material.
• Introduction of cost effective and better quality coating
chemicals, indigenous products to replace imported
coating chemicals leading to cost savings.
Improved Productivity, better quality above and cost
reduction.
Various Research Projects are taken up keeping in view the
mega project activities.
• Projects will be taken up to introduce new cooking aids
suitable for the super batch digester, thereby improving
the pulp yield and quality.
• Better value addition for the paper as well as the
duplex board products.
(Rs in Lac)
2008 – 2009 2007 – 2008
[a] Capital 69.18 -
[b] Recurring 27.82 27.55
[c] Total 97.00 27.55
[d] Total R&D expenditure as a 0.15 0.04
% of total turnover
 Improved production, quality and realization
of the end product, cleaner white water system
& lower effluent load on ETP

C. Technology absorption, adaptation & innovation:

1. Efforts, in brief, made towards technology adaptation and innovation.
a. Improved Machine runnability, higher productivity.
b. Improved production, quality and realization of the end product, cleaner white water system & lower effluent load on
ETP.
c. Better duplex board with improved printing qualities.
2. Benefits derived as a result of above These Research & Development activities have enabled
efforts e.g. Product improvement, the Company to increase productivity, improve the
cost reduction, import substitution etc.. product quality and cost savings.
3. Particulars of imported technology
(Imported during the last five years.) -

D. Foreign exchange earnings and outgo:

The Foreign Exchange Earnings and outgo were Rs. 2446.14 Lac and Rs. 37091.37 Lac respectively (Rs. 1891.31 Lac and
Rs. 15113.00 Lac previous year).
43
Particulars of Employees pursuant to the provisions of Section 217(2A) of the Companies Act, 1956 and forming part of
the Directors’ Report dated 29th June, 2009 for the year ended 31st March, 2009.

DIRECTORS’ REPORT
Previous Employment,
Designation & Remuneration Experience Date of Designation Name of
Name Qualification Age
Nature of Duties (Rs. Lac) (Years) Joining Employer, Period of Service
(Years)
Shri SK Bangur Chairman & 494.67 B.Com. 59 35 01.05.03 Managing Director
Managing M/s.Jayshree Chemicals
Director Ltd., Ganjam 15 years
Shri KL Chandak Executive 36.92 B.Com 63 37 18.12.71 ---
Director F.C.A.
Overall
management
Notes:
1. Remuneration includes salary, commission, Company’s contribution to Provident, Superannuation and Gratuity Funds.
2. The appointment is contractual, other terms and conditions are as per rules of the Company.
3. Shri.S.K.Bangur is related to Smt.Shashi Devi Bangur (Wife) & Shri.Saurabh Bangur (Son).
 R EPORT ON
CORPORATE GOVERNANCE
ANNUAL REPORT 2008-09
THE WEST COAST PAPER MILLS LIMITED
The detailed report on Corporate Governance for the financial year 2008-09 as incorporated in Clause 49 of the Listing
Agreements is set-out here-below -
1. Company’s philosophy on
corporate governance
The West Coast Paper Mills Limited maintains high
standards of corporate governance. It sets the bar
with a proactive approach as opposed to a compliance
driven one. The Company has always focused on good
corporate governance, which is a key driver of sustainable
growth and long-term value creation for its shareholders.
It believes that corporate governance is not just limited
to checks and balances, but it is more about creating
organization excellence leading to increasing customer
satisfaction and shareholder value.
The Company takes utmost care to ensure complete
compliance of Company affairs with all requirements
of listing agreements and corporate laws. A highly
professional and responsive Board has eminent thought-
leaders and stalwarts drawn from diverse fields.
Exhaustive disclosures made in the Company’s annual
report are the trendsetters, reflecting its openness and
transparency in sharing information with stakeholders,
investors, analysts and competitors. It is also easy reading
for the lay investor with incisive yet jargon-free analyses.
Above all, corporate governance must balance individual
interest with corporate goals and operate within accepted
norms of propriety, equity, fair play and a sense of
justice. Accountability and transparency are key drivers to
improve decision-making and the rationale behind such
decisions, which in turn creates stakeholder confidence.
2. Board of directors
(i) Composition
The Company’s policy is to have an appropriate mix
of promoters, executives and independent directors
to maintain the independence of the Board. The
Board comprises -
Three promoter Directors, including Chairman &
Managing Director
Four Independent, Non-Executive directors and
One Non-Promoter, Executive Director.
 (ii) Category, Attendance & Other Directorship:
The number of other Directorships, memberships of other Board Committees of which he/she is a member/chairperson as on
date and attendance in Board Meetings are as follows:-
Director Category Board Number of No. of Membership No. of Board
Meetings Director- of other Board Committees for
Attended Ships* Committees* which chairperson*
Shri S.K.Bangur Promoter, Chairman 3 10 - 1
& Managing Director
Smt. Shashi Devi Bangur Promoter, 2 4 - -
Non-Executive
Shri V.N.Somani Non-Executive 4 - - -
Independent Director
Shri R.N.Mody “ 1 4 2 1
Shri Chandra Kumar Somany “ 4 9 - -
Shri Premal N. Kapadia “ 2 3 - -
Shri Saurabh Bangur Promoter, 3 5 - -
Non-Executive
Shri K.L.Chandak Executive Director 4 2 - -
*excluding private, foreign and companies registered under Section 25 of the Companies Act, 1956.
Shri KL Chandak attended the last Annual General Meeting.
45
(iii) Board Meetings held:
During the year under review, Four Board Meetings were held on June 26, July 17, October 23, 2008 and January 29, 2009.

REPORT ON CORPORATE GOVERNANCE

3. Audit Committee iii) Meetings and Attendance during the year
During the year ended March 31, 2009, four
i) Brief description of terms of reference meetings of the Audit Committee were held on the
following dates :-
Terms of Reference of the Audit Committee are
(i) June 26, 2008
as per Section 292A of the Companies Act, 1956 (ii) July 17, 2008
and the guidelines set out in the listing agreements (iii) Oct. 23, 2008
with the Stock Exchanges that inter-alia, include (iv) Jan. 29, 2009
The attendance of the Chairman and the members of
overseeing financial reporting processes, reviewing
Audit Committee at the meetings held during the year
periodic financial results, financial statements under review was as under –
and adequacy of internal control systems with No. of
Name of the Director
the Management and adequacy of internal audit Meetings attended
functions, discussions with the auditors about the Shri R N Mody (Chairman) 1
Shri V N Somani 4
scope of audit including the observations of the
Shri P N Kapadia 2
auditors and discussion with internal auditor on any
Shri C.K. Somany 4
significant findings. Shri KL Chandak 4
ii) Composition, names of members and Chairperson
The Audit Committee comprises of five directors, of
4. Remuneration committee
i) Brief description of terms of reference
which four are independent, non-executive directors, To periodically approve the remuneration package
and one is Executive Director, all of them possessing of whole-time Directors and ensure appropriate
knowledge of corporate finance, accounts and disclosure of the same.
company law. The Chairman of the Committee is an ii) Composition, names of Members and Chairperson
independent non-executive director. The Company The Remuneration Committee comprises of three
Secretary acts as the Secretary of the Committee. The non-executive independent Directors and the
Company Secretary acts as Ex-officio Secretary of
composition of the Audit Committee is as follows:-
the Committee.
(i) Shri RN Mody Chairman
The names of the Members & Chairperson of the
(ii) Shri VN Somani Member
Remuneration Committee are as under:-
(iii) Shri PN Kapadia Member
(i) Shri VN Somani Chairman
(iv) Shri CK Somany Member (ii) Shri PN Kapadia Member
(v) Shri KL Chandak Member (iii) Shri CK Somany Member
 iii) Meetings and attendance during the year
The Remuneration Committee has not met during the year ended 31st March 2009.
iv) Remuneration Policy
Except Chairman & Managing Director and Executive Director, the remaining directors do not receive any remuneration, other
than sitting fees, for attending the meetings of the Board of Directors, Audit Committee and Remuneration Committee @
Rs. 10,000/- per meeting in terms of the resolution passed by the Board of Directors in its meeting held on June 27, 2005.
v) Details of remuneration
The details of Remuneration package, sitting fees paid etc., to directors during the year ended March 31, 2009, for
information of members, are furnished here below:-
(a) Paid to Non-executive Directors :
S.N Name of Director Sitting fees paid (Rs.) Remarks
ANNUAL REPORT 2008-09

1. Shri S.K.Bangur --
2. Smt. Shashi Devi Bangur 20,000 Except sitting fees for meeting of Board or its
3. Shri Saurabh Bangur 30,000 Committees, non-executive directors are not paid any
salary, benefits, bonuses, stock options, pension etc.,
4. Shri R.N.Mody 20,000
5. Shri V.N.Somani 80,000 There is no contract, Notice period or severance fees
6. Shri C.K.Somany 80,000 applicable.
7. Shri P.N.Kapadia 40,000 Stock Option details - Not applicable as the same is not
8. Shri KL Chandak --
THE WEST COAST PAPER MILLS LIMITED

given.
TOTAL 2,70,000
Note: Shri S.K. Bangur is related to Smt. Shashi Devi Bangur (wife) and Shri Saurabh Bangur(son).

(b) Paid to Chairman & Managing Director/Executive Director :

S.N Particulars Shri S.K.Bangur Shri K.L.Chandak
Chairman & Executive Director
Managing Director
(i) Remuneration :
Salary 24,00,000 27,57,349
Contribution to Provident, Gratuity and Superannuation Funds 7,63,384 7,05,267
Benefits-Allowances/perks 3,643 2,29,451
Commission 4,63,00,000 ---
TOTAL 4,94,67,027 36,92,067
(ii) Details of Fixed Component and performance linked incentives
along with the performance criteria:(as approved by members
in Annual General Meeting dated September 30, 2006 and
29th September 2007).
(a) Fixed Component : (Rs. Per month) (Rs. Per month)
- Salary – per month 2,00,000 2,29,779
- Contribution to Provident Fund (12%) &
Superannuation Fund (15%) of salary As per Rules As per Rules
- Perks and other allowances As per Rules As per Rules
(b) Performance Linked Incentive : Up to 5% of net -
Commission profit by way of
(Based on Net Profit for the year Salary, perks and
within the individual/overall ceiling Commission, all
for managerial remuneration from time to time) taken together.
(c) Minimum Remuneration : Within the ceiling Within the ceiling
In case of inadequacy of profit in any year as calculated of Schedule XIII, as of Schedule XIII, as
under section 198/349 of the Act. amended from time amended from time
to time. to time.
 (b) Paid to Chairman & Managing Director/Executive Director (Contd.) :
S.N Particulars Shri S.K.Bangur Shri K.L.Chandak
Chairman & Executive Director
Managing Director
(iii) Service Contracts, notice period, severance fees:
(a) Service Contract The re-appointment is The re-appointment
for a further period of is for a further period
five years i.e., till April of four years i.e., till
30, 2011. November 30, 2010.
(b) Notice period- Not specified Three months from
either side
(c) Severance fees Not specified Not specified
(iv) Stock Option details, if any, and whether the same has been No Stock option No Stock option
issued at discount as well as the period over which accrued issued, hence not issued, hence not
and over which exercisable. applicable. applicable.
Note: Shri S.K. Bangur is related to Smt. Shashi Devi Bangur (wife) and Shri Saurabh Bangur (son).

5. Shareholders/investors 6. General Body Meetings 47

grievances committee a) The details of General Body Meetings held in the

REPORT ON CORPORATE GOVERNANCE

last three years are as under:-
The “Shareholders/Investors Grievances Committee”
(i) Annual General Meetings/Extra-ordinary
deals with approval of share transfer/transmission, issue
General Meeting
of duplicate share certificates, split and consolidation
requests and other matters relating to transfer and AGM Day Date Time Location
registration of shares. 51st Saturday 30.09.2006 4:00 P.M Bangur Nagar, Dandeli
Composition 52nd Saturday 29.09.2007 4:00 P.M Bangur Nagar, Dandeli
The composition of the Shareholders’/Investors’ Grievances 53rd Saturday 30.08.2008 4:00 P.M Bangur Nagar, Dandeli
Committee is as under:- EGM Saturday 28.02.2009 4.00 P.M. Bangur Nagar, Dandeli
(i) Smt Shashi Devi Bangur Chairperson
ii) Special Resolutions passed in the previous 3
(ii) Shri Saurabh Bangur Member
(iii) Shri KL Chandak Member AGMs:
Shri PK Mundra, Company Secretary is the Compliance (1) At the 53rd Annual General Meeting held
Officer. on 30th August 2008, the following special
Meetings and Attendance during the year resolutions were passed by the shareholders:-
During the year, four meetings were held on June 13, a) For increasing the limit of investment by
2008, September 29,2008, November 07, 2008 and Foreign Institutional Investors (FIIs) and
February 03, 2009:- their sub-accounts in the equity share
No. of capital of the Company by purchase or
Name of the Director Meetings attended otherwise by acquiring from the market
Smt.Shashi Devi Bangur 3 or subscribing to the offer and /or private
Shri Saurabh Bangur 4 placement of the Company under the
Shri KL Chandak 1 Portfolio Investment Scheme on repatriation
Complaints Status basis or otherwise, from 24% up to 40% of
The Share Department of the Company and Link Intime the paid up share capital of the Company,
India Pvt. Ltd., the RTA of the Company attend to all in accordance with the FEMA (Transfer
grievances of the shareholders and investors received or Issue of Security by a Person Resident
directly or through SEBI, Stock Exchanges, etc. Continuous Outside India) Regulation, 2000 or any
efforts are made to ensure that grievances are more other applicable law and subject to any
expeditiously redressed to the satisfaction of the investors. other statutory approvals, if required,
During the year under review, the Company has received b) To issue, offer and allot in one or more
27 complaints from shareholders/investors, which inter- tranches, securities in the course of
alia included non-receipt of dividend, annual report and domestic/international offerings to various
transfer of shares and all the complaints were resolved. categories of investors, not exceeding
No complaint was pending as on March 31, 2009. Rs. 646 Million in accordance with and
 subject to the provisions of Section 81(1A)
and all other provisions, if any, of the
Companies Act, 1956, the SEBI (Disclosure
and Investor Protection) Guidelines, 2000, etc.
c) To issue, offer and allot Cumulative
Redeemable Preference Shares, not
exceeding Rs.650 Million, in one or
more tranches, through a preferential
issue through an offer document and/
or prospectus and/or offer letter and/
or offering circular, etc subject to the
provisions of Section 80 and 81(1A) all
other provisions, if any, of the Companies
ANNUAL REPORT 2008-09
Act, 1956, the SEBI (Disclosure & Investor
Protection) Guidelines, 2000, enabling
provisions of Memorandum and Articles
of Association of the Company and the
Listing Agreements entered with the Stock
Exchanges, etc.
d) To substitute the existing Article 6 of the
THE WEST COAST PAPER MILLS LIMITED
Articles of Association of the Company by
the following as new Article 6:
“The Authorised Capital of the Company is
Rs.95,00,00,000 divided into 15,00,00,000
Equity Shares of Rs.2/- each and 65,00,000
Cumulative Redeemable Preference Shares
of Rs.100/- each,”
(2) At the Extra-ordinary General Meeting held on
28th February 2009, a special resolution was
passed by the members to allot 30,00,000
Equity Shares to Veer Enterprises Ltd, an entity
belonging to the Promoter Group(known as
S.K. Bangur Group), under a preferential issue
at a price of Rs.45/- per equity share (including
premium of Rs.43/- per share) pursuant
to Section 81(1A) and all other applicable
provisions of the Companies Act, 1956.
(iii) Special Resolution passed last year through postal
ballot (under Section 192A) and details of voting
pattern:-
No special resolutions were passed through postal
ballot last year.
(iv) Special Resolution proposed to be passed through
Postal Ballot during this year.
At present, no Special Resolution is proposed to be
passed through Postal Ballot during the current year.
7. Disclosures
(a) Related Party Transactions
The Company has not entered into any transaction
of material nature with the promoters, the Directors
or the management, their subsidiaries or relatives etc
that may have any potential conflict with the interests
of the Company.
(b) Compliance of various legal requirements by the
Company
The Company has complied with the various
requirements of the Stock Exchanges, SEBI and other
statutory authorities on all matters related to capital
markets during the last three years and no penalties/
strictures have been imposed on the Company by
the Stock Exchanges or SEBI or any other statutory
authorities relating to the above.
8. Means of communication
(i) The Board of Directors of the Company approves the
quarterly and half-yearly unaudited financial results
in the proforma prescribed by Clause 41 of the
Listing Agreements within one month of the close of
the respective periods (except audited results for the
year/last quarter within three months of the end of
the accounting year).
(ii) The approved financial results are faxed immediately
after the Board Meeting to the Stock Exchanges
where the Company’s shares are listed and are
published in Business Standard (English) and
Karavali Munjavu (Kannada), within twenty-four
hours of approval thereof by the Board of Directors.
(iii) Pursuant to Clause 51 of the Listing Agreements,
all data related to quarterly financial results,
shareholding pattern, etc., are posted on the
Electronic Data information Filing and Retrieval
(EDIFAR) – website maintained by SEBI in
association with the National Informatics Centre,
within the time frame prescribed in this regard.
(iv) The Company’s financial results and official news
releases are displayed on the Company’s website -
www.westcoastpaper.com.
(v) Management Discussion and Analysis forms part
of the Annual Report, to the shareholders of the
Company.
9. General shareholder
information
54th Annual General Meeting
Date 31st August 2009
Time
Venue
4.00 PM
Shree Rangnath Auditorium
Bangur Nagar DANDELI -581 325
Tentative Financial Calendar 2009-10
 Adoption of Quarterly Results Stock Code
of the quarter ending 3rd/4th week of 1. The National Stock Exchange of India Ltd
June 30, 2009 July 2009 - WSTCSTPAPR
September 30, 2009 October 2009 2 Bombay Stock Exchange Limited
- 500444
December 31, 2009 January 2010
3 ISIN NO.
March 31, 2010 (year ending) By June 2010
- INE976A01021
Book Closure date 17th August 2009 to
31st August 2009 Market Price Data (Rs.)
(Both days inclusive)
Bombay Stock National Stock
Dividend payment date 4th September 2009 Month Exchange (BSE) Exchange (NSE)
onwards
High High High Low
Listing of Equity Shares on Stock Exchanges
The Company’s equity shares are listed on the following Apr-08 80.80 80.80 80.50 64.05
Stock Exchanges, having nationwide trading terminals - May-08 75.50 75.50 76.95 66.50
(a) Bombay Stock Exchange Limited Jun-08 71.00 71.00 72.65 58.05
Corporate Services Jul-08 63.50 63.50 66.00 55.50
Floor 25, P.J.Towers, Dalal Street, Mumbai -400 001 Aug-08 67.80 67.80 67.00 55.50 49
(b) National Stock Exchange of India Ltd
Sep-08 62.00 62.00 59.00 46.00
Listing Department

REPORT ON CORPORATE GOVERNANCE

Exchange Plaza, Bandra-Kurla Complex, Bandra(E) Oct-08 50.00 50.00 51.80 30.25
Mumbai -400 051 Nov.-08 39.55 39.55 39.90 32.10
Dec-08 39.80 39.80 39.20 35.00
Listing Fees
Listing fee for the year 2008-09 has been paid to Bombay Jan-09 41.50 41.50 40.75 34.00
Stock Exchange Limited (BSE) and National Stock Feb-09 43.00 43.00 43.25 35.00
Exchange of India Limited (NSE). Mar-09 39.00 39.00 43.70 34.00

WCPM Share Price Performance

20000 80
18000 70
16000
60
14000
50 BSE SENSEX
WCPM Share Price

12000
BSE Indices

BSE MIDCAP Index

10000 40
WCPM on BSE
8000 30 WCPM on NSE
6000
20
4000
2000 10

0 0
Nov-08
Jul-08
Apr-08

Jun-08

Mar-09
Jan-09
Aug-08

Dec-08
Sep-08
May-08

Oct-08

Feb-09

Months
 Registrar and Transfer Agents Share Transfer System
For Shares held in physical mode as well as in The Company’s Registrar and Transfer Agent (RTA) has
dematerialized form - been entrusted with handling of Physical transfer of
Link Intime India Pvt.Ltd., shares also, as per the directions of SEBI, w.e.f. February,
2003, apart from dematerialisation of shares. The Board
C-13, Pannalal Silk Mills Compound
of Directors of the Company has delegated the power of
LBS Road, Bhandup (W) approval of share transfers executed/processed by the
MUMBAI-400 078. RTA to the Shareholders/Investors Grievances Committee
Ph: (022) 2596 3838; comprising of two Directors, Executive Director and
Company Secretary of the Company. The RTA does the
Fax: (022) 2596 2691;
physical share transfers once in a fortnight and sends the
E-mail: mumbai@linkintime.co.in statement to the Company for approval purpose.
ANNUAL REPORT 2008-09

Shareholding Pattern as on March 31, 2009

Category No. of shares held Percentage of share holding
Promoters 30007805 49.70
Mutual Funds & UTI 1600 -
Banks, Financial Institutions, 10213046 16.92
Insurance Companies & FII
Private Corporate Bodies 5265587 8.72
THE WEST COAST PAPER MILLS LIMITED

Indian Public 14662452 24.29

NRIs/OCBs 212790 0.35
Foreign Nationals 12050 0.02
ADRs/GDRs - -
Total 60375330 100%

Distribution of Shareholding as on March 31, 2009

From To No. of shareholders No. of shares
Number % Number %
Upto - 5000 14967 94.21 6310875 10.45
5001 - 10000 487 3.07 1804580 2.99
10001 - 20000 210 1.32 1550243 2.57
20001 - 30000 60 0.38 767046 1.27
30001 - 40000 34 0.21 602145 1.00
40001 - 50000 24 0.15 550536 0.91
50001 - 100000 47 0.30 1795180 2.97
100001 & Above 58 0.36 46994725 77.84
Total 15887 100% 60375330 100%
 Dematerialisation of Shares suggestions/grievances/queries pertaining to share
The shares of the Company are in compulsory demat transfer/demat including physical transfer requests and
segment w.e.f. July 2000. The Company’s shares are demat requisition forms, to the Company’s RTA at the
available for trading in the depository systems of both following address -
the National Securities Depository Limited and the Link Intime India Pvt. Ltd.,
Central Depository Services (India) Limited. As on 31st C-13, Pannalal Silk Mills Compound
March 2009 90.50% of the shares of the Company LBS Road, Bhandup (W)
were held in dematerialized form and rest in physical MUMBAI -400 078
form. 30,00,000 equity shares were allotted to Veer Phone: (022) 25963838
Enterprises Ltd., an entity in Promoter Group, under a Fax: (022) 25962691;
preferential issue on 13.3.2009, for which application E-mail: mumbai@linkintime.co.in
for listing and demating has been submitted to BSE
and NSE. As the listing approval was received after
31.03.2009, these shares have been demated on
10. CEO/CFO Certification
As required by the revised clause 49 (V) of the Listing
30.04.09 and therefore are not considered to work out
Agreements, the Certificate from CFO and CEO was
demat percentage as on 31.3.2009.
placed before the Board of Directors at the meeting held
Plant location of the Company on 29th June 2009.
Paper & Paperboard and Duplex Board
Bangur Nagar, Dandeli -581 325
Uttara Kannada Dist. (Karnataka)
11 Compliance certificate of 51

the auditors

REPORT ON CORPORATE GOVERNANCE

Optical Fibre Cable/Jelly Filled Telecom Cable Unit :
The Statutory Auditors have certified that the Company
Sudarshan Telecom
has complied with the conditions of Corporate
Plot No.386/387 Governance as stipulated in Clause 49 of the Listing
KIADB, Electronic City Agreements with the Stock Exchanges and the same
Hebbal Industrial Area forms part of the Annual Report.
Mysore -570 016 The Certificate from the Statutory Auditors will be sent
Address for Correspondence to the Stock Exchanges along with the Annual Report of
The shareholders may address their communications/ the Company.

Declaration
As provided under clause 49 (I) (D) of the Listing Agreements with the Stock Exchanges, all Board members and Senior Management
personnel have affirmed compliance with Code of Conduct adopted by the Board in its meeting held on 29th January 2009.

For THE WEST COAST PAPER MILLS LTD.,

Place: Mumbai SK BANGUR

Date: 29th June 2009. Chairman & Managing Director
 DIRECTORS’
responsibility statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, it is hereby confirmed that :

i) in the preparation of the accounts for the financial year ended 31st March 2009, the applicable accounting standards have been
followed along with proper explanation relating to material departures.

ii) the Directors have selected such accounting policies which have been applied consistently and made judgement and estimates that
were 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 and
of the profit or loss of the Company for the year under review.

iii) proper and sufficient care has been taken for the maintenance of 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 and other irregularities.

iv) the accounts for the financial year ended on 31st March 2009 have been prepared on a ‘going concern’ basis.

On behalf of the Board

ANNUAL REPORT 2008-09

Place : Mumbai S.K. Bangur

Dated : 29th June, 2009 Chairman & Managing Director
THE WEST COAST PAPER MILLS LIMITED
AUDITORS’ CERTIFICATE
on Corporate Governance
On Compliance with the conditions of corporate governance under clause 49 of the listing agreement.
To The members of
The West Coast Paper Mills Limited
We have examined the compliance of conditions of Corporate Governance by The West Coast Paper Mills Limited (“The Company”) for
the year ended on March 31, 2009, as stipulated in clause 49 of the listing agreements of the Company with the Stock Exchanges in
India.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review
of the procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditions of corporate
governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied
with the conditions of corporate governance as stipulated in the above mentioned listing agreements.
As required by the guidance note issued by the Institute of Chartered Accountants of India, we have to state that as per the records
maintained by the Company, there were no investor grievances remaining unattended, pending for more than 30 days.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

For Batliboi & Purohit

Chartered Accountants 53
Place : Mumbai (R. D. Hangekar)
Dated : 29th June, 2009 Partner
Membership No. 30615

SECRETARIAL
Compliance Certificate
TO WHOMSOEVER IT MAY CONCERN
This is to certify that The West Coast Paper Mills Limited, having its Registered Office at Bangur Nagar, Dandeli - 581 325, Karnataka, has
complied with all the statutory requirements and maintained all books/records as required under the Companies Act, 1956 and all other
applicable statutes and rules there under.

For The West Coast Paper Mills Limited

Place: Mumbai P K Mundra

Date: 29th June, 2009 VP(Fin.) & Company Secretary
THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2008-09

FINANCIAL SECTION
AUDITORS’ REPORT
To the Members of
The West Coast Paper Mills Limited

1. We have audited the attached Balance Sheet of The West Coast Paper Mills Limited (‘the Company’) as at 31st March, 2009, the
Profit and Loss Account and Cash Flow Statement for the year ended on that date, annexed thereto. These Financial Statements are
the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on
our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (the Order), as amended, issued by the Central Government of India
in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our
examination of those books;
55
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of the written representations received by the Company from the Directors at on 31st March, 2009, and taken on
record by the Board of Directors, we report that none of the directors is disqualified as at 31st March, 2009 from being appointed
as a director in terms of Section 274 (i) (g) of the Companies Act, 1956;
f) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together
with the Significant Accounting Policies and other notes thereon, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009;
ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and
iii)in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

For Batliboi & Purohit

Chartered Accountants
Place : Mumbai (R. D. Hangekar)
Dated : 29th June, 2009 Partner
Membership No. 30615
 ANNEXURE
to the Auditors’ Report
With reference to the Annexure referred to in paragraph 3 of the Auditors’ Report to the Members of The West Coast Paper Mills
Ltd. on the financial statements for the year ended on 31st March, 2009, we report that:
i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which, in our opinion,
is reasonable and no material discrepancies have been noticed on such verification.
c) The Company has not disposed off substantial part of its fixed assets during the year, accordingly, the assumption of the going
concern being affected, does not arise.

ii) a) Inventories have been physically verified during the year by management at reasonable intervals.
b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
c) The Company is maintaining proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) a) During the year, the Company has granted unsecured loans to a body corporate covered in the register maintained under section
ANNUAL REPORT 2008-09

301 of the Companies Act, 1956. The maximum amount involved during the year and the year-end balance of such loans
aggregates to Rs.5 Crores and NIL respectively.
b) In our Opinion, the rate of interest and other terms and conditions of such loans were not prima facie prejudicial to the interest of
the Company.
c) In respect of the aforesaid loans, the party has repaid the principal amounts as stipulated and was also regular in payment of
interest.
d) In respect of the aforesaid loans granted, there was no overdue amount more than Rupees One Lakh
THE WEST COAST PAPER MILLS LIMITED

e) The Company has not taken any loans, secured or unsecured, from Companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly clauses (f) and (g) of the Order are not applicable.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the
sale of goods. We have not observed any major weakness in the internal control system during the course of our audit.

v) a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that
section.
b) The transactions made in pursuance of such contracts or arrangements aggregating during the year to Rupees five lacs or more
in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such goods
and materials or the prices at which transactions for similar goods or materials have been made with other parties.

vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from
the public during the year. Therefore the provisions of clause (vi) of the Order are not applicable to the company.

vii) In our opinion, and according to the information and explanations given to us, the Company has an internal audit system
commensurate with the size and the nature of its business.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central
Government for maintenance of cost records prescribed under section 209 (1) (d) of the Companies Act, 1956 and are of the
opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determining whether they are accurate or complete.

ix) a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we
are of the opinion that the company has been generally regular in depositing undisputed statutory dues including Provident fund,
Investor Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales tax/VAT, Wealth tax, Customs Duty,
Excise Duty, Service tax, Cess and other material statutory dues with the appropriate authorities and there are no outstanding
unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.
ANNEXURE
to the Auditors’ Report (Contd.)
b) According to the information and explanations given to us, the dues in respect of Sales tax and Income tax, which have not
been deposited with the appropriate authorities on account of dispute and the forum where the disputes are pending are given
below:
Name of the Statute Nature of the dues Amount (Rs. In lacs) Forum where dispute is pending
The Tamilnadu General Sales Tax Act Sales Tax 30.66 Madras High Court
Income Tax Act, 1961 Income Tax 722.13 Bombay High Court
Income Tax Act, 1961 Income Tax 658.77 Income Tax Appellate Tribunal
Income tax Act, 1961 Income Tax 1417.27 Commissioner of Income Tax (Appeals)

x) The Company does not have accumulated losses as at the balance sheet date and has not incurred cash losses in the current or in
the immediately preceding financial year.

xi) On the basis of our examination and according to the information and explanations given to us, the Company has not defaulted in
repayment of the dues to any financial institutions, banks or debenture holders.

xii) According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.

xiii) The Company is not a chit fund / nidhi / mutual benefit fund / society to which the provisions of any special statute apply;
accordingly, the provisions of clause 4(xiii) of the Order are not applicable to the Company.

xiv) The Company has maintained proper records of transactions and contracts in respect of trading in shares, securities, debentures 57
and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by
the Company in its own name.

xv) The Company has given guarantees amounting to Rs. 13,415 lacs (Previous year Rs. 17,478 lacs) for loans taken by others from
banks or financial institutions. According to the information and explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interests of the Company.

xvi) In our opinion and according to the information and explanations given to us, on an overall basis, the term loans were applied for the
purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we are
of the opinion that prima facie there are no funds raised on short-term basis that have been used for long term investment.

xviii) During the year under consideration, the Company has made preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act. In our opinion, each of the transactions has been made at price; which are not
prejudicial to the interest of the Company.

xix) During the year covered by our audit, the Company has issued 650 privately placed non-convertible debentures of Rs.65 Crores.
The Company has created Security in respect of said debentures issued and outstanding at the year-end.

xx) The Management has not raised any money by public issues during the year. However, money raised through Preferential issue to
promoter group and Preference Shares on private placement basis has been disclosed in the Directors Report and verified by us.

xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the
course of the audit.

For Batliboi & Purohit

Chartered Accountants
Place : Mumbai (R. D. Hangekar)
Dated : 29th June, 2009 Partner
Membership No. 30615
 BALANCE SHEET
as at 31st March, 2009
(Amount in Rs. Lacs)
Schedule 2009 2008
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 7,707.51 1,425.01
Advance Against Share Capital 1,150.00 -
Reserves & Surplus 2 47,920.21 38,770.70
56,777.72 40,195.71
Loan Funds
Secured Loans 3 94,420.94 20,092.66
Unsecured Loans 4 22,944.12 20,412.00
117,365.06 40,504.66
Deferred Tax Liability 4,001.92 4,158.83
Present Value of Lease - 111.68
ANNUAL REPORT 2008-09

Total 178,144.70 84,970.88

APPLICATION OF FUNDS
Fixed Assets 6
Gross Block 41,138.98 40,494.44
Depreciation 20,457.27 18,478.39
Net Block 20,681.71 22,016.05
THE WEST COAST PAPER MILLS LIMITED

Capital work-in-progress 112,004.52 30,991.44

132,686.23 53,007.49
Assets Taken on Lease
Gross Block 8,654.82 8,654.82
Depreciation 8,654.82 8,543.14
Net Block - 111.68
132,686.23 53,119.17
Investments 7 4,604.64 5,504.64
Current Assets,Loans,Advances and Deposits 8
Inventories 14,368.28 11,272.72
Sundry Debtors 4,340.45 4,289.38
Cash and Bank Balances 28,443.38 18,632.03
Loans, Advances and Deposits 14,325.47 5,891.97
61,477.58 40,086.10
Less: Current Liabilities & Provisions 5 20,623.75 13,739.03
Net Current Assets 40,853.83 26,347.07
Total 178,144.70 84,970.88
Notes on Balance Sheet 17
Accounting Policies 18

The attached Schedules and notes form an integral part of these accounts.
This is the Balance Sheet referred to in our report of even date.
For BATLIBOI & PUROHIT S.K. Bangur V.N. Somani C.K. Somany
Chartered Accountants Chairman & Managing Director Director Director

R.D. Hangekar P.K. Mundra Shashi Devi Bangur Lt.Gen.(Retd.) Utpal Bhattacharyya
Partner Company Secretary Director Director
Membership No. 30615
Place : Mumbai Saurabh Bangur K.L. Chandak
Date : 29th June, 2009 Director Executive Director
PROFIT & LOSS ACCOUNT
for the year ended 31st March, 2009
(Amount in Rs. Lacs)
Schedule 2009 2008
INCOME
Turnover 9 66,270.79 65,352.11
Less: Excise Duty 4,295.65 6,943.40
Net turnover 61,975.14 58,408.71
Other Income 10 788.27 1,565.85
Variation in Stock of Finished Goods 11 1,251.39 257.08
Total 64,014.80 60,231.64
EXPENDITURE
Raw Materials Cost 12 23,182.90 21,777.23
Manufacturing Expenses 13 19,470.67 16,885.68
Payments to Employees 14 5,452.68 5,203.78
Administrative Expenses 15 3,097.95 4,591.60
Interest & Financing Charges 16 774.41 335.00
Depreciation 1,990.28 2,042.71
Total 53,968.89 50,836.00
Profit Before Taxation 10,045.91 9,395.64
Provision for Taxation Including Fringe Benefit Tax 1,149.00 1,095.00 59
Deferred Tax (156.91) 110.31
Profit After Taxation 9,053.82 8,190.33
Balance as per last Balance Sheet 316.58 140.03
Available for Appropriation 9,370.40 8,330.36
APPROPRIATION
Proposed Dividend on - Preference Shares 3.03 -
- Equity Shares 1,254.98 1,721.25
Tax on Proposed Dividends 213.80 292.53
Debenture Redemption Reserve 6,500.00 -
General Reserve 905.38 6,000.00
Balance Carried Over 493.21 316.58
9,370.40 8,330.36
Earnings per Share of Rs.2 Each (Rs.) 15.74 17.06
Basic
(Refer Note No.10 of Notes on Accounts)
Diluted 15.74 16.42
Notes on Profit and Loss Account 17
Accounting Policies 18

The attached Schedules and notes form an integral part of these accounts.
This is the Profit & Loss Account referred to in our report of even date.
For BATLIBOI & PUROHIT S.K. Bangur V.N. Somani C.K. Somany
Chartered Accountants Chairman & Managing Director Director Director

R.D. Hangekar P.K. Mundra Shashi Devi Bangur Lt.Gen.(Retd.) Utpal Bhattacharyya
Partner Company Secretary Director Director
Membership No. 30615
Place : Mumbai Saurabh Bangur K.L. Chandak
Date : 29th June, 2009 Director Executive Director
 CASH FLOW STATEMENT
for the year ended 31st March, 2009

(Amount in Rs. Lacs)

2009 2008
(A) CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax and extraordinary items 10,045.91 9,395.64
Add: Adjustments for:
Depreciation 1,990.28 2,042.71
Interest expenses 774.41 335.00
Financial Lease rentals 132.09 469.02
Assets discarded - 50.17
Loss on impairment of Assets - 145.90
12,942.69 12,438.44
Less: Adjustment for:
Profit on sale of Fixed Assets 0.85 3.80
ANNUAL REPORT 2008-09

Profit on Sale of Investments 145.50 -

Interest & dividend received 259.48 871.41
Operating profit before working capital changes 12,536.86 11,563.23
Add: Decrease in Working capital:
Trade Payables 7,426.69 2,603.70
Inventories - 657.50
Trade & other receivables - 118.74
THE WEST COAST PAPER MILLS LIMITED

19,963.55 14,943.17
Less: Increase in Working capital:
Inventories 3,095.56 -
Trade & Other Receivables 8,321.16 -
Cash generated from operations 8,546.83 14,943.17
Less: Interest paid 774.41 335.00
Direct taxes paid 1,312.41 1,748.61
Cash Flow before Extraordinary items 6,460.01 12,859.56
Extraordinary items - -
Net Cash Flow in operating activities 6,460.01 12,859.56
(B) CASH FLOW FROM INVESTING ACTIVITIES
Add: Inflow:
Sale of Fixed assets 4.26 6.54
Sale of Investments 900.00 -
Interest received 255.78 836.32
Dividend received 3.70 35.09
Profit on Investment 145.50 -
1,309.24 877.95
Less: Outflow:
Purchase of fixed assets 81,672.43 32,640.99
Purchase of investment - 900.00
81,672.43 33,540.99
Net cash used in investing activities (80,363.19) (32,663.04)
CASH FLOW STATEMENT
for the year ended 31st March, 2009 (Contd.)

(Amount in Rs. Lacs)

2009 2008
(C) CASH FLOW FROM FINANCING ACTIVITIES
Add: Proceeds from borrowings 79,119.83 23,662.26
Equity/Preference Share Capital & Share Warrants
9,000.00 10,801.34
including premium
88,119.83 34,463.60
Less: Repayment of loans 2,259.43 10.00
Repayment of Finance lease liabilities 132.09 469.02
Dividend and Dividend Tax paid 2,013.78 1,569.02
4,405.30 2,048.04
Net Cash flow in financing acitivities 83,714.53 32,415.56
Net Increase/(Decrease) in Cash and Cash
9,811.35 12,612.08
equivalents during the year
Cash & Cash equivalents at the beginning of the year 18,632.03 6,019.95
Cash & Cash equivalents at the end of the year 28,443.38 18,632.03

61

This is the Cash Flow Statement referred to in our report of even date.

For BATLIBOI & PUROHIT S.K. Bangur V.N. Somani C.K. Somany
Chartered Accountants Chairman & Managing Director Director Director

R.D. Hangekar P.K. Mundra Shashi Devi Bangur Lt.Gen.(Retd.) Utpal Bhattacharyya
Partner Company Secretary Director Director
Membership No. 30615
Place : Mumbai Saurabh Bangur K.L. Chandak
Date : 29th June, 2009 Director Executive Director
 SCHEDULES annexed to and forming part
of the Balance Sheet as at 31st March, 2009
(Amount in Rs.Lacs)
2009 2008
1. SHARE CAPITAL
Authorised
15,00,00,000 Equity Shares of Rs.2 each 3,000.00 3,000.00
65,00,000 Cumulative Redeemable Non-convertible
Preference Shares of Rs.100 each 6,500.00 -
9,500.00 3,000.00
Issued & Subscribed
60375330 Equity Shares of Rs.2 each Fully paid-up 1,207.51 1,147.51
Equity Share Warrants - 277.50
6500000 8.5% Cumulative Redeemable Non-Convertible
Preference Shares of Rs.100 each Fully paid up 6,500.00 -
Total 7,707.51 1,425.01
ANNUAL REPORT 2008-09

Note: [1] Out of the above Equity shares - 75,00,000 shares of Rs.2 each fully paid were allotted as Bonus Shares by Capitalisation of
General Reserve.
[2] Preference Shares are redeemable at the end of 5 years from the date of allottment i.e. 30.03.2009, however, the Company
can redeem at anytime at its option after one year from the date of allotment.
[3] Equity Share Warrants have been forfeited and transferred to Reserves and Surplus.
2009 2008
2 RESERVES AND SURPLUS
THE WEST COAST PAPER MILLS LIMITED

Share Premium Account 11,744.12 10,454.12

Equity Share Warrant Forfeiture Account 277.50 -
Debenture Redemption Reserve 6,500.00 -
General Reserve
Balance at commencement of the year 28,000.00 22,000.00
Transferred from Profit & Loss Account 905.38 6,000.00
28,905.38 28,000.00
Balance as per Profit & Loss Account 493.21 316.58
Total 47,920.21 38,770.70

2009 2008
3 SECURED LOANS
(i) 650 Nos. of 12.5% Non-Convertible Secured Redeemable
6,500.00 -
Debentures of Rs.10 Lacs each
(ii) Working Capital Facilities from Banks: 1,789.23 4,048.66
(iii) Term Loans
a) International Finance Corporation (IFC), Washington 20,284.00 16,044.00
b) Barclays Bank Plc. Mauritius 10,142.00 -
c) ICICI Bank Ltd., Singapore - Led Syndicate 53,205.71 -
d) Central Bank of India 2,500.00 -
Total 94,420.94 20,092.66
Note: 1. The Working Capital facilities from banks are secured by joint hypothecation of stores, spares, raw materials, stock-in-
process, finished goods, book debts etc., ranking pari-passu inter-se.
2. Term loans from IFC, Washington, Barclays Bank Plc & ICICI Bank Ltd., are secured by way of hypothecation on all movable
assets both present and future and are secured / to be secured by equitable mortgage of immovable assets , both present and
future on pari-passu basis.
3. 12.5% Non-convertible Debentures are redeemable in eight equal quarterly installments after 2 years from the date of
allottment i.e. 30.03.2009. However, there is no pre-payment penalty for pre-payment on interest reset dates at yearly interval.
4. 12.5% Non-convertible redeemable Debentures and loan from Central Bank of India, are secured by second charge by way of
hypothecation on all moveable assets on pari-passu basis.
SCHEDULES annexed to and forming part
of the Balance Sheet as at 31st March, 2009 (Contd.)
(Amount in Rs.Lacs)
2009 2008
4. UNSECURED LOANS
Loan from Banks 14,000.00 11,500.00
Interest-free Loan under Sales-tax Deferral Scheme 8,944.12 8,912.00
Total 22,944.12 20,412.00
2009 2008
5 CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry Creditors:
Small scale industrial undertakings
211.29 15.01
(See Note 6 of Schedule 17)
Others 17,990.87 11,649.73
18,202.16 11,664.74
Unclaimed Dividends 66.86 58.48
Interest accrued but not due on loans 882.92 2.03
Provisions
Proposed Dividend 1,258.01 1,721.25
Tax on Proposed Dividend 213.80 292.53
Total 20,623.75 13,739.03 63
 THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2008-09

(Amount in Rs.Lacs)
GROSS BLOCK AT COST DEPRECIATION NET DEPRECIATED BLOCK
As at Sales/ As at As at Deductions/ As at As at As at
Additions For the year
1.4.2008 Adjustments 31.3.2009 1.4.2008 Adjustments 31.3.2009 31.3.2009 31.3.2008
6. FIXED ASSETS
Land - Leasehold 156.11 - - 156.11 - - - - 156.11 156.11
- Freehold 61.61 - - 61.61 - - - - 61.61 61.61
Factory Buildings 3,416.31 133.79 - 3,550.10 1,941.24 151.06 - 2,092.30 1,457.80 1,475.07
Non-Factory Buildings 1,009.44 - - 1,009.44 504.61 25.24 - 529.85 479.59 504.83
Roads and Drainage 163.54 - - 163.54 21.47 2.75 - 24.22 139.32 142.07
Effluent Treatment Plant 1,028.77 - - 1,028.77 302.17 48.69 - 350.86 677.91 726.60
Construction machinery & Equipments 4.49 - - 4.49 3.22 0.18 - 3.40 1.09 1.27
Water Treatment Plant 46.29 - - 46.29 46.11 0.03 - 46.14 0.15 0.18
Electric Installations 34.13 0.40 - 34.53 23.43 3.68 - 27.11 7.42 10.70
Fire Fighting Equipments 6.78 - - 6.78 6.53 0.03 - 6.56 0.22 0.25
Furniture, Fittings
308.94 23.12 - 332.06 202.79 19.70 - 222.49 109.57 106.15
and Airconditioners
Office Equipments 494.24 40.72 - 534.96 349.82 59.66 - 409.48 125.48 144.42
Trucks & Vehicles 190.25 22.26 14.81 197.70 115.85 22.61 11.40 127.06 70.64 74.40
Plant and Machinery 32,929.13 439.06 - 33,368.19 14,316.74 1,656.65 - 15,973.39 17,394.80 18,612.39
Plant and Machinery [Leased] 644.41 - - 644.41 644.41 - - 644.41 - -
Total 40,494.44 659.35 14.81 41,138.98 18,478.39 1,990.28 11.40 20,457.27 20,681.71 22,016.05
Capital work-in-progress 112,004.52 30,991.44
Total 132,686.23 53,007.49
Previous Year 38,193.34 3,268.60 967.50 40,494.44 17,204.37 2,042.71 768.69 18,478.39 53,007.49 22,608.02
Note: 1. Buildings at Paper & Paper Board Unit at Dandeli are constructed on Leasehold land.
2. Leasehold Land represents the amount paid to Karnataka Industrial Area Development Board (KIADB), Bangalore against allotment of land at Kesarolli village, Haliyal on Lease-cum-sale basis.
3. Capital work in progress includes Rs.14,221.72 Lacs (Previous Year Rs.1,48.42 Lacs ) for Project Expenses and Rs.3,401.73 Lacs (Previous Year Rs.11,526.79 Lacs) for advances to
SCHEDULES annexed to and forming part

suppliers/contractors.
of the Balance Sheet as at 31st March, 2009 (Contd.)
SCHEDULES annexed to and forming part
of the Balance Sheet as at 31st March, 2009 (Contd.)
2009 2008
No. of Value No. of Value
Description
Shares/Units (Rs. in Lacs) Shares/Units (Rs. in Lacs)
7. INVESTMENTS
[1] TRADE INESTMENTS NIL NIL
[2] NON TRADE INVESTMENTS
Long Term Investments
(A) In Government Securities:
6 Year National Savings Certificate - 0.10 - 0.10
(B) In Equity Shares
(a) Quoted:
Jayshree Chemicals Ltd., 98,618 28.40 98,618 28.40
Fort Gloster Industries Ltd., 4,016,680 - 4,016,680 -
The Kilkotagiri Tea & Coffee Estate Co.Ltd., 55,545 28.23 55,545 28.23
The Thirumbadi Rubber Co.Ltd., 14,000 7.04 14,000 7.04
Rama Newsprint & Papers Ltd., 21,124,791 4,540.86 21,124,791 4,540.86
Total (a) 4,604.53 4,604.53
(b) Unquoted:
Speciality Coatings & Lamination Ltd., 1,850,130 - 1,850,130 -
Digvijay Investments Ltd., 7 0.01 7 0.01
Total (b) 0.01 0.01
Current Investments 65
(A) In Mutual Fund
Grindlays Floating Rate Fund - - 5,002,289 500.00
HDFC Cash Management Fund - - 3,991,686 400.00
- 8,993,975 900.00
Grand Total 4,604.64 5,504.64
(Rs. in Lacs)
As at 31.03.2009 As at 31.03.2008
Investments Book Value Market Value Book Value Market Value
(A) LONG TERM INVESTMENT
Investment in shares
Quoted 4,604.53 2,714.44 4,604.53 6,351.35
(B) UNQUOTED
Shares/Securities 0.11 - 0.11 -
(C) CURRENT INVESTMENT 900.00 900.93

Mutual Fund Units Purchased and Sold during the year :

S. No. Mutual Funds Units No. of Units Cost (Rs. in Lacs)
1 FRANKLIN TEMPLETON Super Institutional Plan - Growth 80,652 460.00
2 TATA Liquid Super High Inv. Fund - Appreciation 77,648 1,200.00
3 NLFSG Canara Robeco Liquid Super Instt Growth Fund 7,836,300 800.00
4 Kotak Liquid (Institutional Premium ) - Growth 4,782,487 800.00
5 ICICI Prudential Flexible Income Plan - Growth 43,919,408 5,700.00
6 IDFC Liquid Fund - Daily Dividend 1,659,924 900.00
7 DWS Insta Cash Plus Fund- GROWTH 19,045,474 2,000.00
8 Reliance Liquidity Fund - Growth Option 17,789,695 3,000.00
9 HDFC Cash Mgt Fund- Savings Plan 48,888,722 5,200.00
10 HDFC Floating Rate Income fund - Short Term Plan 7,339,099 950.00
11 LICMF Floating Rate Fund - Short Term Plan 18,710,412 1,900.00
12 LICMF Liquid Fund - Dividend Plan 67,469,037 7,400.00
Total 237,598,858 30,310.00
 SCHEDULES annexed to and forming part
of the Balance Sheet as at 31st March, 2009 (Contd.)
(Amount in Rs.Lacs)
2009 2008
8. CURRENT ASSETS, LOANS, ADVANCES AND DEPOSITS
[a] Inventories (As certified by Management) :
Stores, spares, machinery/machinery parts,
Building materials etc. 4,925.10 3,849.37
Loose Tools 84.89 75.71
Finished Goods 3,372.04 2,152.14
Raw Materials 5,465.10 4,501.32
Work-in-Process 293.81 395.02
Stock of Scrap 227.34 299.16
14,368.28 11,272.72
[b] Sundry Debtors (Unsecured)
Considered good
ANNUAL REPORT 2008-09

Over Six months 166.33 251.05

Others 4,174.12 4,038.33
4,340.45 4,289.38
[c] Cash & Bank Balances
Cash on hand 15.00 33.94
Bank Balances with Scheduled Banks:
In Current Accounts including remittance in transit 17,271.49 16,575.03
THE WEST COAST PAPER MILLS LIMITED

In Fixed Deposit Accounts 11,056.13 1,940.68

In Unpaid Dividends Accounts 66.86 58.48
In Fixed Deposit (Employees’ Security Deposits) 33.90 23.90
28,443.38 18,632.03
[d] Loans, Advances and Deposits (Unsecured)
(Considered good except stated otherwise)
Advances recoverable in cash or in kind or for value to be
904.89 893.74
received or pending adjustments
Balance with Customs,Excise,Port Trust and other Authorities 11,703.72 3,410.19
Advance tax/tax paid at source [Net of provision] 1,514.66 1,351.25
Deposits:
- With Electricity supply companies 84.82 154.28
- With others 117.38 82.51
14,325.47 5,891.97
Total 61,477.58 40,086.10
SCHEDULES annexed to and forming part of the
Profit & Loss Account for the year ended 31st March, 2009
(Amount in Rs.Lacs)
2009 2008
9. TURNOVER
Sale of Paper and Board 61,831.70 59,753.29
Sale of Traded Paper - 2.02
Sale of Cables 4,344.21 5,567.74
Sale of Power 35.36 45.94
Exchange Rate Difference 59.52 (16.88)
Total 66,270.79 65,352.11
10. OTHER INCOME
Dividend (Non-trade) 3.70 35.09
Interest (Gross)
Banks 233.02 200.55
Others 22.76 635.77
[Income Tax deducted at source Rs.66.14 lacs (Rs.44.96 lacs)]
Profit on Sale of Fixed Assets 0.85 3.80
Excess Provision Written back 1.07 18.39
Profit on sale of Investments 145.50 -
Exchange rate difference - 23.76
Miscellaneous Income 381.37 648.49 67
Total 788.27 1,565.85
11. VARIATION IN STOCK OF FINISHED GOODS
Closing Stock:
Paper and Board 3,367.89 2,149.79
Cables 4.15 2.35
3,372.04 2,152.14
Less: Opening Stock:
Paper and Board 2,149.79 1,918.05
Traded Paper - 2.22
Cables 2.35 13.72
2,152.14 1,933.99
1,219.90 218.15
Add/Less : Variation in Excise duty on opening and
closing stock of Finished goods
Paper and Board 31.53 37.37
Cables (0.04) 1.56
31.49 38.93
Total 1,251.39 257.08
 SCHEDULES annexed to and forming part of the Profit &
Loss Account for the year ended 31st March, 2009 (Contd.)
(Amount in Rs.Lacs)
2009 2008
12. RAW MATERIALS COST
Opening Stock 4,501.32 4,702.38
Add: Purchases including expenses thereon 24,045.47 21,654.21
28,546.79 26,356.59
Less:Closing Stock 5,465.10 4,501.32
23,081.69 21,855.27
Accretion / Decretion to Stocks:
Add: Opening Stock of work-in-process 395.02 316.98
Less: Closing Stock of work-in-process 293.81 395.02
Total 23,182.90 21,777.23
13. MANUFACTURING EXPENSES
ANNUAL REPORT 2008-09

Stores & Spareparts etc.consumed 11,324.41 9,934.99

Coal and Oil consumed 6,659.46 5,401.53
Electricity Charges 541.99 624.88
Repairs and Maintenance:
- Buildings 350.57 304.22
- Plant and Machinery 398.14 419.16
- Other Assets 139.90 115.43
THE WEST COAST PAPER MILLS LIMITED

Water Charges/Cess 56.20 85.47

Total 19,470.67 16,885.68
14. PAYMENTS TO EMPLOYEES
Salaries, Wages and Bonus 4,224.16 4,230.03
Contribution to:
- Provident and Family Pension Funds 338.69 318.81
- Employees' State Insurance 106.65 109.92
- Gratuity Fund 318.92 125.44
- Superannuation Fund 98.62 68.97
- Employees' Group Insurance Scheme 9.86 10.12
Employees' Welfare Expenses 355.78 340.49
Total 5,452.68 5,203.78
SCHEDULES annexed to and forming part of the Profit &
Loss Account for the year ended 31st March, 2009 (Contd.)
(Amount in Rs.Lacs)
2009 2008
15. ADMINISTRATIVE EXPENSES
Insurance Charges 75.30 159.06
Rent 80.22 80.17
Lease Charges 132.09 469.02
Rates and Taxes 16.28 15.18
Vehicles Maintenance 148.92 152.74
Miscellaneous Expenses 745.44 759.94
Payment to Auditors:
- Audit Fees 7.00 4.00
- Tax Audit Fees 0.65 0.65
- Company Law Matters 0.20 0.20
- Other Services 1.08 1.78
- Out of pocket Expenses 1.40 10.33 1.28 7.91
Cost Auditors' Remuneration and Expenses 0.40 0.40
Forwarding Charges on Sales 930.83 1,119.50
Commission on Sales 438.88 387.74
Commission to Director 463.00 440.00
Directors' Fees and Expenses 69
- Sitting Fees 2.80 3.70
- Travelling Expenses 14.46 11.90
[including Executive Director's Rs.4.17 Lacs
17.26 15.60
(Rs.4.23 lacs)]
Charity and Donation 39.00 43.50
Obsolete Assets written off - 50.17
Loss on impairment of Assets - 145.90
Irrecoverable Advances Written off - 744.77
Total 3,097.95 4,591.60
Note : Lease charges include depreciation of Rs.111.68 Lacs (Rs.438.43 Lacs) and interest of Rs.20.41 Lacs (Rs.30.59 Lacs).

2009 2008
16. INTEREST AND FINANCING CHARGES
Interest :
Term Loans - 0.04
Debentures 4.45 -
Others (Net) 545.54 470.45
Bank Charges 71.90 82.05
Exchange rate difference (Net) 152.52 (217.54)
Total 774.41 335.00
 SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date

17. NOTES ON ACCOUNTS

1. Contingent liabilities not provided for in respect of :
a) Bank Guarantees outstanding : Rs. 2194.81 lacs (Rs. 1199.00 lacs).
b) Letters of Credit outstanding : Rs. 9532.23 lacs (Rs. 24596.03 lacs).
c) Corporate Guarantees given by the Company to the Banks & Institution : Rs.13415.47 lacs (Rs.17478.08 lacs).
d) Demand raised by the Income Tax department and Sales Tax department disputed by the Company : Rs. 2798.17 lacs
(Rs. 2187.56 lacs) and Rs. 30.66 lacs (Rs. 30.66 lacs) respectively.
e) Various demands of employees pending for adjudication : amounts not ascertainable.
2. a) The Income tax assessments of the Company have been completed upto Assessment Year 2006-07.
b) The Total demand outstanding as on 31.03.2009 on account of income tax dues for various assessment years is
Rs.2798.17 lacs (Rs. 2187.56 lacs). These dues will get substantially reduced once the order giving effect is passed by
the Income Tax Department. The Company and the Income Tax Department are in appeal before the Appellate authorities
for various assessment years. Since most of the issues raised in these years are already covered by the decisions of
Hon’ble Income Tax Appellate Tribunal in Company’s favour, the Company is of the opinion that the demands are likely
to be either deleted or substantially reduced in appeal before appellate authorities and in view of this, the Company has
ANNUAL REPORT 2008-09

decided to adjust the short/excess provision, if any, after the appeals are disposed off.
c) The Company and the Income Tax Department are in appeal before the High Court of Bombay on various grounds
decided by the Income Tax Appellate Tribunal. The Company has therefore not recorded adjustment of refund of taxes.
However, the interest received thereon of Rs.Nil (Rs.623.45 Lacs) has been accounted.
3. Estimated amount of contracts remaining to be executed on Capital account and not provided for Rs.32016.16 lacs
(Rs.52716.96 lacs).
THE WEST COAST PAPER MILLS LIMITED

4. Additional information pursuant to the provisions of paragraphs 3,4C and 4D of part II of Schedule VI of the Companies Act, 1956.
(Rs. in lacs)
a) Imports during the year (CIF) value
[i] Raw Materials & Trade purchases 2,639.71 (4,011.46)
[ii] Components and Spare parts 777.88 (711.53)
[iii] Capital goods 31,625.32 (9,582.19)
b) Expenditure in Foreign Currencies during the year
[i] Travelling 5.65 (12.30)
[ii] Others 2,042.81 (795.52)

c) Value of Raw Materials, Components and Spare Parts etc. consumed during the year:
Raw Materials Components & Spare Parts
(Rs in lacs) % % (Rs in lacs) % %
Indigenous 19,741.47 (17,305.05) 86 (79) 10,693.16 (9,052.24) 94 (91)
Imported (including Duty, 3,340.22 (4,550.22) 14 (21) 631.25 (882.75) 6 (9)
Freight and Clearing
Expenses etc.)
23,081.69 (21,855.27) 100 (100) 11,324.41 (9,934.99) 100 (100)
d) Details of Raw Materials consumed
Unit Quantity (Rs. in lacs)
Wood (M.T) 379,331 (374,019) 13,127.57 (11,715.22)
Pulp/Waste paper (M.T) 61,266 (56,870) 6,942.03 (6,264.47)
Optical Fibre (Kms) 295,798 (469,263) 1,136.09 (1,668.27)
Nylon (M.T) 0.80 (65.10) 3.66 (200.59)
Steel Tape (M.T) 229.14 (--) 430.08 (--)
Other allied inputs - (--) 1,442.26 (2,006.72)
23,081.69 (21,855.27)
e) Earnings in Foreign Exchange during the year: (Rs. in lacs)
Export of Paper, Paper Board, Duplex Board & Optical Fibre Cable (F.O.B. Value) 2446.14 (1,891.31)
SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

17. NOTES ON ACCOUNTS (Contd.)

f) Amount remitted in Foreign Currencies towards dividend to non-resident shareholders during the year:
No. of Non-resident Shareholders No. of Shares held Net Dividend remitted : (Rs. In Lacs)
124 (67) 188,601 (23,100) 5.66 (3.47)
The above payment was made in India to the mandatees of non-resident shareholders in rupees.
g) Particulars in respect of Capacities & Production:
Class of goods Unit Installed Capacity per annum Production/Generation
Paper/Paper Board & Multilayer Board M.T. 180,000 (180,000) 173,682 (169,891)
Optical Fibre Cables km. 83,500 (83,500) 16,787 (22,829)
JFTC Ckm. 1,542,000 (1,542,000) - -
Wind Mills M.W/Kwh. 1.75 (1.75) 1,424,285 (2,042,633)
h) Particulars in respect of Sales and Stock:
Opening Stock Closing Stock
Sales
(1st April, 2008) (31st March, 2009)
Quantity Value Quantity Value Quantity Value
(M.T.) (Rs. in lacs) (M.T.) (Rs. in lacs) (M.T.) (Rs. in lacs)
Paper/Paper Board & Multilayer Board 8,116 2,149.79 170,686 61,891.22 11,112 3367.89
(8,418) (1,918.05) (170,193) (59,736.41) (8,116) (2,149.79)
Sale of Imported Paper - - - - - -
(4) (2.22) (4) (2.02) (-) (-)
Optical Fibre Cables 48 2.35 16,762 4,344.21 73 4.15
(Km) (Km) (Km)
(55) (11.80) (22,836) (5,565.76) (48) (2.35) 71
(Km) (Km) (Km)
JFTC - - - - - -
(CKm) (CKm) (CKm)
(119) (1.92) (119) (1.98) (-) (-)
(CKm) (CKm) (CKm)
Sale of Power 1,424,285 35.36
(Kwh)
(--) (--) (2,042,633) (45.94) (--) (--)
(Kwh)
N.B.: [i] Pulp plant is an integrated part of the Paper plant and therefore the capacity and actual production of pulp are
not separately ascertained.
[ii] Paper Industry, Cable Industry & Wind Power Generation are delicensed.
[iii] The Installed Capacities are certified by Executive Director.
[iv] Sale of paper as shown above includes Rs.18.56 Lacs (39 MT) for internal consumption [Rs.23.28 Lacs (57 MT)].
5. Managerial Remuneration
(Rs. in lacs)
Year ended 31-3-2009 Year ended 31-3-2008
Salary (including leave encashment) 50.62 48.75
Commission 463.00 440.00
Contribution to Provident, Gratuity and Superannuation Funds 14.69 18.25
Reimbursement of Medical & LTC Expenses 0.03 0.16
Other perquisites 3.26 2.88
531.60 510.04
Remuneration to Chairman & Managing Director :
Computation of Net Profit in accordance with section 198 / 349 of the
Companies Act, 1956
Profit before Taxation 10,045.91
Less: Profit on sale of Investments 145.50
9,900.41
Remuneration to CMD
1. Commission 463.00
2. Salary 31.67
Total 494.67
Percentage of Net Profit 5
 SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

17. NOTES ON ACCOUNTS (Contd.)

6. Disclosure pertaining to Micro, Small and Medium Enterprises Development Act, 2006 (as per information available with the
Company) :
Principal amount due outstanding as at 31st March, 2009 is Rs.211.29 Lacs and interest paid or payable is Rs.NIL.
7. The Company has been advised that its activity of investing surplus funds in Shares / Mutual Funds does not constitute trading
activities, as such the details of purchases, opening and closing stocks and turnover in respect of aforesaid activities are not
required to be furnished.
8. The Company used to adjust the foreign currency exchange rate differences on amounts borrowed for acquisition of fixed
assets, to the carrying cost of fixed assets in compliance with Schedule VI to the Companies Act, 1956 as per legal advice,
which was at variance to the treatment prescribed as per Accounting Standard 11.
The Ministry of Corporate Affairs, G.O.I. vide Notification No.G.S.R. 225 (E) dated 31st March 2009, notified the Companies
(Accounting Standards) Amendment Rules, 2009 (the said Rules) wherein option is given for adding or deducting the
exchange rate variation from the cost of depreciable capital assets in respect of long term foreign currency loans upto
ANNUAL REPORT 2008-09

31.03.2011. The Company has, therefore, opted for adjusting the foreign currency exchange rate difference to the carrying
cost of fixed assets as per the said Rules.
The Company was already adjusting exchange rate difference to the carrying cost of fixed assets in compliance with Schedule
VI which is consistent with the said Rules. Its expansion programme is in progress and has not capitalized any of the fixed
assets acquired under the Project so far and therefore there is no impact on the Profit & Loss A/c due to the exchange rate
difference. However, the exchange rate difference on the foreign currency loans as on 31.03.2009 of Rs.3417.88 lacs has
been included in the Capital Work in Progress.
THE WEST COAST PAPER MILLS LIMITED

9. As per the Accounting Standard on ‘Related Party Disclosures’ (AS 18), issued by the Institute of Chartered Accountants of
India, the related parties of the Company are as follows :
A] Associate Company 1. Fort Gloster Industries Ltd., Kolkata (FGI)
2. Rama Newsprint & Papers Limited (RNPL)
B] Key Management Personnel 1. Shri.S.K.Bangur
Chairman & Managing Director
2. Shri.K.L.Chandak
Executive Director

The following transactions were carried out with related parties during the year in the ordinary course of business.
a) Subsidiary and Associated Companies:
(Rs. in lacs)
Associate Companies
Particulars F.G.I. R.N.P.L.
INCOME
Rent - 0.90
Interest - 14.00
EXPENDITURE
Rent 1.08
LIABILITIES
Corporate Guarantee 12,915.47
ASSETS
Loans & Advances [at the end of the year outstanding NIL] 1,200.00
b) Key Managerial Personnel:
Managerial Remuneration Rs. 531.60 Lacs (Rs. 510.04 Lacs)
SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

17. NOTES ON ACCOUNTS (Contd.)

10. Earnings per share [“EPS”] computed in accordance with Accounting Standard 20 : “Earnings per Share”.
Basic:
Particulars 2008 - 2009 2007 - 2008
Profit after tax as per Accounts (Rs. lacs) 9,053.82 8,190.33
Number of shares issued (Rs. 2 each) 60,375,330 57,375,330
Basic EPS (Rupees) / Face Value of Rs. 2 each 15.74 17.06
Diluted EPS (Rupees) 15.74 16.42
11. Segment Reporting:
Information about Business Segments (Information provided in respect of revenue items for the year ended
31.03.2009 and in respect of assets / liabilities as at 31.03.2009)
(Rs. in lacs)
Year ended Year ended
Particulars
31.03.2009 31.03.2008
1. Segment Revenue (Net Sale / Income from)
a) Paper and Paper Board 57,980.66 53,579.80
b) Telecommunication Cable 3,959.12 4,782.97
c) Others 35.36 45.94
Net Sales / Income from operations 61,975.14 58,408.71
2. Segment Results - Profit / (Loss) before Tax and Interest from Segment
a) Paper and Paper Board 11,234.93 10,416.34
b) Telecommunication Cable 79.05 (108.68) 73
c) Others (4.15) 0.43
Total 11,309.83 10,308.09
Less: i) Interest 774.41 335.00
ii) Other un-allocable expenditure net of un-allocable income 489.51 577.45
Total Profit before Tax 10,045.91 9,395.64
3. Capital Employed (Segment Assets - Segment Liabilities)
a) Paper and Paper Board 1,59,733.13 58,412.79
b) Telecommunication Cable 2,659.72 2,458.04
c) Others 224.49 255.15
Total Capital employed in segments 1,62,617.34 61,125.98
Add : Un-allocable Corporate
Assets less Corporate Liabilities 17,236.83 9,332.76
Total Capital employed in company 1,79,854.17 70,458.74
12. The Deferred Tax Asset of Rs. 156.91 Lacs (Rs.110.31 Lacs Liability) for the current year has been
recognised in Profit & Loss Account.
(Rs. in lacs)
Particulars As at 31.03.2009 As at 31.03.2008
Deferred Tax
a) Deferred Tax Liability on account of Depreciation 4,169.28 4,381.22
4,169.28 4,381.22
b) Deferred Tax Asset on account of disallowances under
section 43B of Income Tax Act 167.36 222.39
167.36 222.39
NET DEFERRED TAX LIABILITY 4,001.92 4,158.83
13. The year end shortfall, as there may be, pertaining to certain sundry debtors, loans and advances is not
currently ascertainable and accordingly not provided for.
 SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

17. NOTES ON ACCOUNTS (Contd.)

14. As per Accounting Standard 15 “Employee Benefits”, the disclosures of Employee benefits as defined in the
Accounting Standard are given below:
Defined Contribution Plan
Contribution to Defined Contribution Plan, recognised as expenses for the year are as under:
(Rs. in lacs)
2008-09 2007-08
Employer's Contribution to Provident Fund/Pension Fund 338.69 318.81
Employer's Contribution to Superannuation Fund 98.62 68.97
The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund Act, 1952.
Conditions for grant of exemptions stipulates that the employer shall make good deficiency, if any, in the interest
rate declared by the trust vis-à-vis statutory rate.
Defined Benefit Plan
The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises
each period of service as giving rise to additional unit of employee benefit entitlement and measures each
ANNUAL REPORT 2008-09

unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same
manner as gratuity.
(Rs. in lacs)
Gratuity (Funded) Gratuity (Funded)
2008 - 2009 2007 - 2008
1. Components of Employer Expenses
Service Cost 61.93 92.80
THE WEST COAST PAPER MILLS LIMITED

Interest Cost 117.82 75.47

Expected Return on Plan Assets (131.16) (125.41)
Actuarial (gain)/Loss 270.33 82.58
Net expense / (gain) recognised in the Profit and Loss account 318.92 125.44
2. Changes in Benefit Obligations Present value of
1,606.27 1,547.69
Obligation
Service Cost 61.93 92.80
Interest Cost 117.82 75.47
Actuarial(gain)/Loss 222.68 103.77
Benefits paid (342.16) (213.46)
Present value of Obligation 1,666.54 1,606.27
3. Changes in Plan Assets
Fair value of Plan Assets 1,606.27 1,548.92
Expected return on Plan Assets 131.16 125.41
Employer's contributions 204.38 125.44
Benefit Paid (342.16) (213.46)
Actuarial(gain)/Loss (47.66) 19.96
Fair value of Plan Assets 1,551.99 1,606.27
Category of Plan Assets
GOI Securities 0.48 0.46
Special Deposit 63.93 60.56
PSU/State Government Securities 7.12 9.15
ICICI Mutual Fund 28.47 27.33
Others - 2.50
Actuarial Assumptions
Discount Rate (per annum) 7.75% 8.00%
Expected Rate of Return on Assets (per annum) 8.00% 8.00%
Salary Escalation over & above highest of salary in the grade 1.00% 1.00%
15. Previous year’s figures have been regrouped and reclassified wherever necessary and disclosed within brackets.
SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

18. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance
with the provisions of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of
Chartered Accountants of India.
2. Use of Estimates:
The preparation of the financial statements in conformity with the generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of
contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates are recognized in the period in which the results are
known/ materialized.
3. Fixed Assets:
Fixed Assets are stated at cost of acquisition (net of Cenvat and VAT wherever applicable) or construction less accumulated
depreciation and impairment loss, if any. Cost includes any directly attributable cost of bringing each asset to its working
condition for intended use. Assets under installation or under construction as at balance sheet date are shown as Capital
work in progress together with project expenses and advances to suppliers/contractors.
4. Depreciation:
a) On the fixed assets, is provided at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on
the written down value method, other than on plant and machinery, effluent treatment plant, roads and drainage on which 75
depreciation is provided on Straight Line Method.
b) On the Plant & Machinery of JFTC at Mysore Division and Duplex Board Plant at Paper Division at Dandeli is provided at
the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on written down value method.
5. Impairment of Assets:
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in use. In assessing the value in use, the estimated future
cash flows are discounted to their present value based on an appropriate discount factor. The impairment loss recognized in
the prior accounting years is reversed if there has been a change in the estimate of recoverable amount.
6. Investments:
Current investments are carried at the lower of cost or quoted/ fair value, computed category-wise. Long term investments
are stated at cost and provision is made for any diminution in such value, which is not temporary in nature.
7. Valuation of Inventories:
a) Inventories of raw materials, stores, spares, machinery parts, building materials, loose tools etc. are valued at weighted
average cost, after providing for obsolescence, if any.
b) Work in process is valued at cost.
c) Finished goods are valued at lower of cost or net realizable value.
d) Stock of scrap is valued at realizable value.
e) Standing crops are valued at the total amount of expenditure incurred (including land development expenditure) less any
incidental revenue realized.
8. Revenue recognition:
Turnover is recognized when goods are dispatched to customers and are adjusted for discounts (net), Sales Tax/ VAT and
foreign exchange differences. Turnover is inclusive of Excise Duty.
9. Research and Development Expenditure:
Revenue expenditure on research & development is charged to Profit & Loss account and capital expenditure is added to the
cost of fixed assets in the year in which it is incurred.
 SCHEDULES Notes Annexed to and forming part of the Balance Sheet as at
31st March, 2009 and Profit and Loss Account for the year ended on that date (Contd.)

18. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

10. Employee Benefits:
a) Contribution to Provident Fund is accounted for on accrual basis. The Provident Fund contributions are made to
a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower
than statutory rate of interest declared by the Central Government under the Employees Provident Funds and
Miscellaneous’ Provisions Act, 1952 and shortfall, if any, shall be made good by the Company. Such shortfall on
account of interest, if any, is recognized in the Profit and Loss account.
b) Company’s defined contributions made to Pension Fund of Government and Superannuation Scheme of Life
Insurance Corporation of India are charged to the Profit and Loss account on accrual basis.
c) Contribution to Gratuity Fund and provision for Leave Encashment is based on actuarial valuation carried out as on
the Balance Sheet date as per Projected Unit Credit Method.
11. Foreign Currency Transactions:
Foreign currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign currency
ANNUAL REPORT 2008-09

current assets and current liabilities outstanding at the balance sheet date are translated at the exchange rate prevailing
on that date and the resultant gain or loss is recognized in the Profit & Loss account. In cases where they relate to the
acquisition/construction of fixed assets, they are adjusted to the carrying cost of fixed assets.
12. Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost
of such assets upto the date when they are ready for their intended use and other borrowing costs are charged to Profit &
Loss account.
THE WEST COAST PAPER MILLS LIMITED

13. Taxation:
Provision for Taxation is made on the basis of the Taxable profits computed for the current accounting period in accordance
with the Income Tax Act, 1961.
Deferred Tax resulting from “timing difference” between book profit and taxable profit for the year is accounted for using the
tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is
recognized and carried forward only to the extent that there is a certainty that the asset will be adjusted in future. Deferred tax
on timing differences which reverse during the tax holiday is not recognized.
14. Contingent Liabilities:
Claims against the Company not acknowledged as debts are treated as Contingent Liabilities. Provision in respect of
contingent liabilities if any, is made when it is probable that a liability may be incurred and the amount can be reasonably
estimated.

Signature to Schedules from 1 to 18

For BATLIBOI & PUROHIT S.K. Bangur V.N. Somani C.K. Somany
Chartered Accountants Chairman & Managing Director Director Director

R.D. Hangekar P.K. Mundra Shashi Devi Bangur Lt.Gen.(Retd.) Utpal Bhattacharyya
Partner Company Secretary Director Director
Membership No. 30615
Place : Mumbai Saurabh Bangur K.L. Chandak
Date : 29th June, 2009 Director Executive Director
BALANCE SHEET ABSTRACT
Additional information as required under Part IV of Schedule VI to the Companies Act, 1956
Balance Sheet Abstract and Company’s General Business Profile:

I Registration Details State Code : 0 8

Registration No. 0 1 9 3 6

Balance Sheet Date : 3 1 0 3 2 0 0 9

Date Month Year

II Capital raised during the year: (Amount in Rs. Thousands)

Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L 6 0 0 0

III Position of Mobilisation and deployment of Funds: (Amount in Rs. Thousands)

Total Liabilities Total Assets
1 7 8 1 4 4 7 0 1 7 8 1 4 4 7 0
Sources of Funds
Paid up Capital Reserves & Surplus
7 7 0 7 5 1 4 7 9 2 0 2 1
Advance against Share Capital Unsecured Loans
1 1 5 0 0 0 2 2 9 4 4 1 2
Secured Loans Deferred Tax Liability
77
9 4 4 2 0 9 4 4 0 0 1 9 2
Application of Funds
Net Fixed Assets Investments
1 3 2 6 8 6 2 3 4 6 0 4 6 4
Net Current Assets Miscellaneous Expenditure
4 0 8 5 3 8 3 N I L
Accumulated Losses
N I L

IV Performance of Company (Amount in Rs. Thousands)

Turnover including other income Total Expenditure
6 4 0 1 4 8 0 5 3 9 6 8 8 9
+ - Profit/ Loss before tax + - Profit/ Loss after tax
+ 1 0 0 4 5 9 1 + 9 0 5 3 8 2
Earning per Share in Rs. Dividend Rate (%)
1 5 . 7 4 1 0 0

V Genric Names of Three Principal Products/Services of the Company (as per monetary terms)
Item Code No. (ITC Code) 4 8 0 2 0 0 0 0
Product description U N C O A T E D P A P E R
A N D P A P E R B O A R D S
U S E D F O R W R I T I N G
A N D P R I N T I N G
Item Code No. (ITC Code) 4 8 0 5 0 0 0 0
Product description O T H E R U N C O A T E D
P A P E R A N D P A P E R
B O A R D S I N S H E E T S
O R R O L L S
Item Code No. (ITC Code) 9 0 0 1 0 0 0 0
Product description O P T I C A L F I B R E
C A B L E S
THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2008-09

NOTES
NOTES

79
 CORPORATE INFORMATION
BOARD OF DIRECTORS REGISTERED OFFICE
Shri S. K. Bangur, Chairman & Managing Director Bangur Nagar, Dandeli – 581 325
Smt Shashi Devi Bangur District. Uttar Kannada, Karnataka

Shri V.N.Somani Ph: 08284 231391-395 Fax: 08284 231225

Shri R. N. Mody E-mail: co.sec@westcoastpaper.com

Shri C. K. Somany CORPORATE OFFICE

Shri P N Kapadia
Shri Saurabh Bangur
Lt. Gen.[Retd.] Utpal Bhattacharyya
Shri K. L. Chandak, Executive Director
MANAGEMENT TEAM PAPER AND DUPLEX BOARD DIVISION
Chandra Kiran, 4th Floor, 10/A Kasturba Road
Bangalore – 560 001
Ph: 080 – 22231828-1837, 41120001-0006
Fax: 080 - 22231838
E-mail: wcpm.sale@westcoastpaper.com

Corporate Office ZONAL OFFICES

Shri J.K.Mandelia, President (Corporate) North Zone

ANNUAL REPORT 2008-09

Shri V. Subbiah, Vice-President (Marketing) Vishnu Bhavan, 1st Floor, 5 Ansari Road

Works Daryaganj, New Delhi – 110 002

Shri S.S.Pal, President (Technical) Ph.: 011-23269806, 23273679, 23246254, Fax: 011- 23284913
E-mail: wcpm.north@westcoastpaper.com
Shri B.K Bhuyan, Vice-President (Operations)
East Zone
Telecom Cable Division
31, Chowringhee Road, (Park street crossing)
THE WEST COAST PAPER MILLS LIMITED

Shri V. Bangur, Chief Executive Officer

Kolkata – 700 016
Shri P K. Ghosh, Vice-President [Technical]
Ph.: 033 22656271(8 Lines), Fax: 033 22265242
V.P (Finance) & Company Secretary E-mail: wcpm.east@westcoastpaper.com
Shri P.K. Mundra
West Zone
Bankers Shreeniwas House
Central Bank of India H.Somani Marg, Mumbai-400 001
State Bank of Mysore Ph.: 022 22070041-44, Fax: 022-22070001
Syndicate Bank E-mail: wcpm.west@westcoastpaper.com
ICICI Bank Ltd.
South Zone
IDBI Bank Ltd.
Flat No.7, 12/13, Kanakasri Nagar
Barclays Bank Plc
St. George Cathedral Lane
Auditors Off Cathedral Road, Chennai-600 086
Batliboi & Purohit Ph.: 044 28111654, 28111299, Fax: 044 28117013

Chartered Accountants E-mail: wcpm.south@westcoastpaper.com

Cost Auditors TELECOM CABLE DIVISION

Shri S. Sankaranarayanan Sudarshan Telecom

Cost Accountant Plot No. 386/387, KIADB, Electronic City

Hebbal Industrial Area, Mysore – 570 016
Legal Advisors Ph.: 0821 2404060, Fax: 0821 2404061
Khaitan & Co. E-mail: pkghosh@sudarshantelecom.com
THE WEST COAST PAPER MILLS LIMITED
www.westcoastpaper.com