Tamil Nadu Newsprint & Papers Limited (TNPL), a government enterprise, has announced significant changes to its board composition and the appointment of new statutory auditors following a board meeting held on September 18, 2025.

New Statutory Auditors Appointed

The company has appointed M/s. A. John Moris & Co., Chartered Accountants, as its statutory auditors for the financial year 2025-26. This appointment was made based on the designation by the Comptroller and Auditor General of India (CAG), as per Section 139 of the Companies Act, 2013.

M/s. A. John Moris & Co. brings a wealth of experience to TNPL, having provided professional services such as audit, assurance, and related services for three decades. The firm, established in 1996, boasts 31 partners and operates 23 branches across India.

Board Changes

TNPL also announced the completion of terms for two of its independent directors:

1. Dr. M. Arumugam (DIN: 01439166)
2. Thiru P. B. Santhanakrishnan (DIN: 03213653)

Both directors have concluded their second consecutive three-year terms as Independent Directors of the company. Their tenure ended at the close of business hours on September 18, 2025.

Committee Leadership Changes

As a result of these departures, several key committee leadership positions have been affected:

• Dr. M. Arumugam has stepped down as Chairman of the Risk Management Committee and the Corporate Social Responsibility Committee.
• Thiru P. B. Santhanakrishnan has relinquished his position as Chairman of the Audit Committee.

Annual General Meeting Highlights

The company also held its 45th Annual General Meeting (AGM) on the same day, where several important matters were addressed:

• The financial statements for the year ended March 31, 2025, were presented for adoption.
• A dividend declaration was proposed.
• The reappointment of Thiru T. Anbalagan, I.A.S., (DIN: 10402554) as a Director was considered.
• The remuneration for statutory auditors was fixed.
• The remuneration for cost auditors was ratified.
• The appointment of secretarial auditors was discussed.

The AGM, conducted through video conferencing, saw active participation from shareholders, with queries addressing various aspects of the company's operations and future outlook.

Tamil Nadu Newsprint & Papers Limited (TNPL) has reported a net loss of 74.10 million rupees for the first quarter, marking a significant downturn from the 219.10 million rupees profit recorded in the same period last year. The company's financial performance has been impacted by challenging market conditions in the paper industry.

Revenue Growth Amidst Profitability Challenges

Despite the setback in profitability, TNPL managed to increase its revenue to 11.55 billion rupees, up from 11.30 billion rupees in the corresponding quarter of the previous year. This modest growth in revenue highlights the company's ability to maintain sales momentum in a difficult operating environment.

Decline in EBITDA and Margins

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) saw a substantial decline, dropping to 1.14 billion rupees from 1.61 billion rupees year-over-year. Consequently, the EBITDA margin contracted to 9.87% from 14.26% in the previous year, indicating increased pressure on the company's operational efficiency.

Factors Affecting Performance

TNPL attributed the decline in profitability to two main factors:

1. Drop in market prices of Paper & Paper Board
2. Increase in the cost of raw materials

These market dynamics have adversely impacted the company's bottom line, despite the growth in revenue.

Strategic Measures

In response to these challenges, TNPL is taking proactive steps to improve its financial performance. The company is focusing on:

• Introducing premium products
• Concentrating on higher realization products

These measures are aimed at improving sales and profitability in the upcoming quarters.

Production Overview

For the quarter:

• Paper production: 106,375 MT (compared to 109,378 MT in the previous year)
• Packaging Board production: 49,682 MT (up from 44,731 MT in the previous year)

Financial Highlights

The company incurred a loss before tax of 11.82 crore rupees for the quarter, compared to a profit of 34.06 crore rupees in the same period last year. After accounting for tax adjustments, the net loss stood at 7.41 crore rupees.

TNPL's management remains focused on navigating through the current market challenges and implementing strategies to return to profitability in the coming quarters.