N R Agarwal Industries Ltd. , a prominent paper manufacturing company, has disclosed that the Income Tax Department is conducting search operations at its premises, including plant locations and the residences of certain directors. The company made this announcement in a regulatory filing to the stock exchanges.

Search Operations Underway

According to the company's statement, officials from the Income Tax Department are carrying out the search. N R Agarwal Industries has assured that it is extending full cooperation to the authorities during the course of these proceedings.

Business Operations Unaffected

Despite the ongoing search, N R Agarwal Industries has emphasized that its regular business operations remain unaffected. This assurance is aimed at maintaining stakeholder confidence during this period of scrutiny.

Compliance and Transparency

The company has stated its commitment to conducting business in compliance with all applicable laws and regulations. In line with this commitment and adhering to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, N R Agarwal Industries has promised to make further disclosures of any material developments as and when required.

Management's Response

Pooja Daftary, Company Secretary & Compliance Officer of N R Agarwal Industries, signed the regulatory filing. The company noted that due to the ongoing search, they did not have access to digital signatures, and hence the document was physically signed.

Investors and stakeholders are advised to monitor further announcements from the company regarding this matter.

The Income Tax Department's actions underscore the importance of regulatory compliance in the corporate sector. As the situation develops, more details may emerge about the nature and scope of the search operations at N R Agarwal Industries.

N R Agarwal Industries , a leading player in the paper and paperboard industry, has announced strong financial results for the first quarter, alongside key board decisions.

Financial Highlights

The company reported a significant surge in profitability for Q1:

N R Agarwal Industries witnessed a robust 30.31% year-on-year growth in revenue from operations, which increased to Rs 45,214.23 lakhs from Rs 34,697.87 lakhs in the same quarter last year. The company's net profit saw an impressive jump of 386.33%, reaching Rs 1,654.88 lakhs compared to Rs 340.28 lakhs in the previous year's corresponding quarter.

The earnings per share (EPS) for the quarter stood at Rs 9.72, a substantial improvement from Rs 2.00 in the corresponding quarter of the previous year, reflecting the company's strong financial performance.

Board Recommendations and Corporate Actions

In a board meeting held on August 13, N R Agarwal Industries' directors made several key decisions:

1. Appointment of New Independent Director: The board recommended the appointment of Mahendra Kumar Gupta as an Independent Director for a five-year term, subject to shareholder approval at the upcoming annual general meeting. Gupta, a Chartered Accountant, brings 30 years of experience in fund raising, strategic business planning, and compliance management.

2. Alteration of Memorandum of Association: The board approved alterations to the company's Memorandum of Association object clause, potentially signaling new business directions or expansions.

3. Unaudited Financial Results: The board approved the unaudited financial results for the quarter ended June 30.

Other Notable Information

• The company's total income for Q1 stood at Rs 47,782.70 lakhs, which includes other income of Rs 2,568.48 lakhs.
• Expenses for the quarter were reported at Rs 46,801.20 lakhs, with cost of materials consumed being the largest component at Rs 29,845.23 lakhs.
• The company maintains its status as a single-segment entity, focusing on the manufacture and sale of paper and paper boards.

N R Agarwal Industries' strong Q1 performance and strategic board decisions indicate a positive outlook for the company in the paper and paperboard sector. The significant increase in profitability and revenue suggests effective cost management and potentially improved market conditions for the industry.

Investors and stakeholders will be keenly watching the company's performance in the coming quarters, as well as the impact of the proposed appointment of Mahendra Kumar Gupta as an Independent Director on the company's strategic direction.