Tamil Nadu Newsprint & Papers Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

I. INTRODUCTION

TNPL was promoted by the Government of Tamilnadu to produce Newsprint and Printing & Writing Paper (PWP) using bagasse as the primary raw material. Bagasse is the solid fibrous material left after the extraction of juice from the Sugarcane and is normally burnt as in house fuel in the sugar mill to generate steam and power.

The Company was incorporated on April 16, 1979 under the Companies Act, 1956. The mill was established at Kagithapuram and the commercial operations was commenced during October 1985 with a capacity of 90,000 tonnes per annum (50,000 tpa for Newsprint and 40,000 tpa for printing and writing paper) and thereafter enhanced the capacity to 4,00,000 tonnes per annum in four phases. The Packaging Board Plant was set up in the year 2016 with an annual capacity of 2,00,000 MT per annum in Mondipatti village, Manaparai taluk, Tiruchirapalli District. With this the total capacity of the Company is 6,00,000 tonnes per annum. The pulping capacity as on date is 1,580 tonnes per day which was stared with 300 tonnes per day (tpd) in 1984.

Founded in 2013, TNPLs cement plant is located at Kagithapuram. Started with a capacity to manufacture 600 TPD of high-quality cement, in the year 2016, subsequently TNPL has enhanced its production capacity to 900 TPD by introducing Pre-Calciner and other balancing equipment in the Cement Plant. Right from raw material procurement to cement production, TNPLs Cement Plant is equipped with the most innovative and ultra-modern machinery to perform all its operations in-house.

II. INDUSTRY SCENARIO

In the World Economy, Paper Industry is a crucial player. In todays scenario the four key Paper and Board segments are: Newsprint, and Printing and Writing Papers, Paper Boards, Tissue Papers & other Specialty Papers are considered to be rapidly expanding sectors globally.

A brief SWOT Analysis of Indian Paper Industry:-

STRENGTH	WEAKNESS
Well developed Printing Industry	High capital intensive
Well established Research Institute (CPPRI)	Increasing need for scalability to maintain
Large/Growing Domestic Paper MarkeT	High raw material costs/Energy costs from Grid/High financing costs.
Well developed Printing Industry
OPPURTUNITIES	THREATS
Plastic bans and consequent opportunities	Rising digitalisation
Export potential	Environmental pressures - Affecting/delaying expansion
Enormous Domestic market potential - Low per capita consumption	Competition in Wood sourcing

III. STRATEGY

With our vision set to become the world market leader to not just manufacture the most ecofriendly products, but also implement sustainability across all our operations, we are constantly upgrading ourselves with the latest and forwardlooking technology available in the market.

TNPLs success is largely due to the consistency in the performance by adopting the the following strategies:

1. Sustainability

2. Innovation

3. Management of Human Resources

4. Financial re-engineering with Efficient cost management

5. Customer centric

6. Digital Innovation and Transformation

7. Continuous and Sustainable Growth

1. Sustainability

From partnering with state-of-the-art technology suppliers to reinventing production processes for sustainability, TNPL innovates to maximise environment-positivity through its functions.

TNPL firmly believes that one operations waste could be anothers fuel and we are developed on the concept of "Waste to Wealth" and ensures that most of the waste that we generate is reused, recycled and repurposed to the maximum extent possible at all levels of our production.

TNPL is widely known for our environmental consciousness and eco-friendliness in the country with the least water consumption. The wastewater generated in the mill is treated with our advanced water treatment plant and repurposed as process water and is also utilized for irrigation purposes

Further, we utilize One (1) million tonnes of bagasse, a renewable residue from sugarcane, avoiding about 30,000 acres of forest land from commercial exploitation.

TNPL boasts FSC-FM and FSC-Coc certified captive plantation and farm forestry for pulpwood, which serves as a major raw material for paper and packaging boards.

TNPL aspires to create a circular economy model that minimizes pollution-led damage and maximizes positive environmental impact. TNPL, a regenerative system is followed in which resource input, waste, emission and energy requirements are minimized by narrowing and closing energy and material loops.

This is achieved through long-lasting design, maintenance, reusing, remanufacturing, refurbishing and stringent recycling.

Being the torch-bearers of sustainability and circular economy, we strive to make sure that almost no waste from any process is disposed of without making sure that they cannot be used for any other operation. We are firm believers that waste from one process could be the fuel to another. So, we optimize and utilize all the waste generated from our paper, paperboard and cement plants and ensure that it is repurposed at all levels. This makes us enhance operational efficiency and promote greener energy, which further aids in better resource planning and product-life extension.

It is a known fact that the major raw material for our paper manufacturing is bagasse - which is a residue that is obtained from sugarcane.

2. Innovation

With dedicated team of experts in our R&D department to not just ensure that our customers get access to the best products and services, but also aid in achieving our sustainability goals. Our R&D department covers three key aspects that make us achieve our commitment towards producing top-of-the-line products and being environmentally conscious across all our inter functional departments.

Ever since our inception, TNPL has been devoted towards manufacturing products that are only of the finest quality. Integrating ultra-modern technology with optimized operations, the Company is now one of the world leaders in the pulp and paper industry.

TNPL is the "first" mill in the Paper Industry in the Country, producing cement by reusing inorganic solid wastes like lime sludge from the paper mills soda recovery plant and fly ash from power plant to produce superior-grade cement.

With the construction of TNPLs Unit-II packaging board plant in Mondipatti using the TNPL cement, The Company realized the circular economy. By optimizing resources and employing pollutant by- products from TNPLs other plants into manufacturing cement, the Company creates a strong clean and unpolluted environment.

3. Management of Human Resources

In TNPL, the employees are at the heart of the success. The Company fosters a culture of collaboration, inclusivity, and continuous growth, where every individual is valued for their contribution to the sustainable business operations. The companys commitment to providing a safe, supportive, and rewarding work environment is reflected in strong employee engagement programs and initiatives aimed at skill enhancement.

Industrial relations at TNPL have always been harmonious, built on mutual trust and understanding between the management and employees. The Companys proactive approach to addressing concerns and fostering transparent communication has contributed to a positive and productive work atmosphere. The Company continues to prioritize employee welfare, safety standards, and work-life balance, ensuring that the workforce remains motivated and aligned with the companys vision of excellence.

TNPL is dedicated to enhancing employee development programs, promoting innovation, and nurturing an environment that supports both personal and professional growth. The commitment to industrial harmony and the well-being of employees remains a cornerstone of long-term sustainability strategy.

4. Financial Re-engineering with efficient cost management

TNPL has benchmarked the entire operations and monitor the actuals with reference to the targets set with focus on creating a more efficient and effective cost reduction aligning directly to the strategic goal and mission of TNPL.

5. Customer Centric

TNPL puts the customers needs and desires at the heart of all business decisions, aiming to create positive experiences and build lasting relationships and invest in understanding their customers through research and feedback.

6. Digitalization Innovation and Transformation

Adopting Digital Transformation is the new normal. With the ever-changing advancements in the digital landscape, and TNPL, being the torch-bearers of innovation and collaboration, has deployed state-of-the-art digital technology that caters across different departments.

The digital revolution has had a significant impact on the paper industry. While demand for traditional printing and writing paper has declined due to digital alternatives, there has been a shift towards specialty papers, packings materials and paper-based products that offer unique functionalities. Digital technologies are being integrated into production processes to enhance efficiency, reduce costs, energy conservation and customize products according to customer preferences with better quality by implementation of digital log book.

As digital communication evolves, the paper industry must continue to adapt by focusing on high - value products that cannot be easily replaced by digital alternatives. This might include innovative packaging solutions, eco-friendly papers and personalized print products.

7. Continuous and Sustainable Growth

TNPL has expanded its production capacity over the years, starting from 90,000 Tonnes Per Annum (TPA) in 1984 to 6,00,000 TPA in 2023 to keep up with industry growth. TNPL is one among the leading producer of Printing and Writing Paper in the country in both installed and producing capacities. The company currently operates in TamilNadu state with three paper machines with a total capacity of 4,00,000 TPA at Kagithapuram, Karur Unit and one board machine with a capacity of 2,00,000 TPA at Mondipatti, Trichy Unit.

IV. THE SUCCESS DRIVERS

Sustainable Environment Management:

One of the significant indicators in industrial sustainability is environmental health. Despite contributing to economic development of a nation, industrial activities have their own impact on the environment and society. TNPL understood that using appropriate environmentally benign technologies can minimize the impact on the environment caused by industrial activities.

Carving the Process through Suitable Sustainable Decisions:

TNPL is striving to achieve its environmental objectives and decrease its impact by implementing multiple strategies, which include resource conservation, recycling, restoring ecosystems, conserving biodiversity, and raising awareness. Moreover, the monitoring system effectively communicates with top management whenever needed about environmental aspects that may impact industrial operations, and to make suitable decisions on financial resources needed to improve environmental performance. The outcome of such suitable environmental performance decision is the installation of cement factory by TNPL, by utilizing waste generated during manufacturing of pulp. Other examples of such decisions are harnessing renewable energy from wind and solar reduces fossil fuel consumption, installation of deinking plant to recycle waste paper, installation of energy & water efficient Generation3 (G3) pulp mill, modern Effluent Treatment Plant etc. Additionally during the year 2024-2025, TNPL is in the process of installation of rooftop solar power- plants.

Despite the positive impact on employment generation and improving socio-economic status in the surrounding villages, technological interventions can prevent negative environmental impacts caused by environmental discharges.

TNPL has spent a significant amount of money on discharge control measures, including an NCG burning system, to expel the malodorous gases generated from the pulping process, Recovery boiler with Electrostatic Precipitator (ESP) to control dust in flue gas much below the statutory emission norms, fully integrated Chlorine dioxide plant with zero effluent discharge, and a modern Effluent Treatment Plant (ETP) to effectively treat the effluent generated and to keep them within stipulated norms.

The current trends indicate that there will be a higher demand for paper and paperboards, which in turn will require more natural resources. TNPL has already implemented backward integration to meet the raw material requirement by enhancing farm forestry and captive plantations in the farmlands to ensure that this is a well-balanced process. The partnership between industry and farmers has resulted in a win-win situation because it has produced positive outcomes for both parties. By implementing backward integration, the Company established high yielding clonal pulpwood plantations to achieve the Sustainable Development Goals (SDGs). As on 31^st March, 2025, the existing pulpwood plantations under company fold is 78,402 acres involving 18,054 farmers.

CERTIFICATIONS

The successful surveillance audits underscore TNPLs unwavering commitment to:

• Maintaining the highest standards of quality management

• Implementing robust environmental management practices

• Continuously improving energy efficiency

• Adhering to internationally recognized management system standards

The continued validation of these certifications reflects the organizations dedication to excellence, sustainability, and continuous improvement across its operational processes.

A. FOREST STEWARDSHIP COUNCIL (FSC) CERTIFICATION

Commitment to Sustainable Forest Management

At the core of our environmental strategy lies an unwavering commitment to protecting natural forests and ensuring sustainable use of forest resources. During the fiscal year 2024-25, we continued to strengthen our dedication to responsible resource management through our Forest Stewardship Council (FSC) certification.

Certification Highlights

In December 2024, we successfully completed the annual FSC surveillance audit, maintaining our dual certification:

• FSC Forest Management (FSC FM)

• FSC Chain of Custody (FSC CoC)

This achievement represents more than just a certification; it is a testament to our ongoing commitment to:

• Environmental conservation

• Continuous improvement

• Responsible resource management

Third-Party Assurance

The FSC certification provides critical third-party assurance that our plantations and operations are managed with the highest standards of environmental and social responsibility. By ensuring 100% use of certified materials or legally verified procurement through reputable global agencies, the Company demonstrates holistic approach to sustainable business practices.

Key Benefits of FSC Certification

FSC certification drives significant improvements in:

• Forest management practices

• Environmental protection measures

• Social and economic sustainability of plantations

Audit Process

The annual audit for Chain of Custody Certification and Controlled Wood was conducted by M/s. Nepcon (Preferred by Nature) during December 2024. The dedicated FSC Core team played a central role in the audit process, ensuring

comprehensive and transparent evaluation of our forest management practices.

Looking Forward

The Company remains committed to maintaining and enhancing forest stewardship practices, recognized that the approach to resource management has far-reaching implications for environmental conservation, social responsibility, and economic viability.

The forest management journey continues, guided by the principles of sustainability, responsibility, and continuous improvement.

B. ISO CERTIFICATION ACHIEVEMENTS

a) Quality and Environmental Management Systems (ISO 9001 & 14001)

Surveillance Audit Overview

In the fiscal year 2024-25, TNPL successfully underwent its 2^nd Annual Surveillance Audit for ISO 9001 and ISO 14001 certifications. The audit was conducted by M/s TUV India Private Limited, working in close collaboration with the TNPL Integrated Management System (IMS) core team members.

Scope of Certification

The certification covers:

• Quality Management System for "Design, Manufacture and Supply of Writing and Printing Paper"

• Environmental Management System for

"Development and Manufacture of Writing and Printing Paper"

Audit Details

• Certification Standard: ISO 9001 and 14001 (2015 version)

• Audit Completion: March 2025

• Certificate Validity: Extended until 20.02.2026

The external audit team thoroughly evaluated TNPLs management systems and recommended the continuation of both ISO 9001 and ISO 14001 certificates for Unit I.

b) Energy Management System (ISO 50001)

Surveillance Audit Overview

During the same period, TNPL successfully completed its 1^st Annual Surveillance Audit for the ISO 50001 Energy Management System certification.

Scope of Certification

The certification covers:

• Energy Management System for "Development and Manufacture of Writing and Printing Paper"

Audit Details

• Certification Standard: ISO 50001 (2018 version)

• Certification Body: M/s TUV India Private Limited

• Audit Completion: March 2025

• Certificate Validity: Extended until 24.03.2027

The audit team, working alongside TNPLs Energy Management System (EnMS) core team members, comprehensively assessed the organizations energy management practices and recommended an extension of the ISO 50001 certificate.

Significance of Certifications

These successful surveillance audits underscore TNPLs unwavering commitment to:

• Maintaining the highest standards of quality management

• Implementing robust environmental management practices

• Continuously improving energy efficiency

• Adhering to internationally recognized management system standards

The continued validation of these certifications reflects the organizations dedication to excellence, sustainability, and continuous improvement across its operational processes.

Water Management

TNPL sources water from the river Cauvery for both the units. TNPL has installed a series of rain water harvesting structures in the factory campus. Various measures are being initiated to conserve water, both in technology and with process improvement. Results of the implementation of various water conservation projects, the overall water consumption was achieved lowest in the Indian Industries.

Energy Management

TNPL Unit - I has four power boilers and four Turbo Generators with generation capacity of 103.62 MW. TNPL Unit - II has two power boilers and one Turbo generator with generation capacity of 50 MW. TNPL is 100% self-sufficient in power. Surplus power is exported.

Marketing Management

In spite of digitisation, due to growth of a young and learning population, growth of paper consumption in India is fuelled primarily by demand from the education segment. However, your company has taken necessary steps to diversify its product range, in order to reduce dependence on the education segment alone. The new Industrial products developed at UNIT - I have been well received in the market place.

In order to improve profitability in the present market scenario, it is imperative that Quality needs to be improved and Cost needs to be optimised. The Company is working towards strengthening the dealer network by appointing dealers in unrepresented markets and reinforcing dealer network in the existing markets. Your company accesses continuously the performance of dealers and removes the non performing dealers, periodically..

With the commissioning of Pulp Mill at Unit II during 2022-23, the product mix of the packaging board business has undergone a major change. The company is now focused on increasing its market share in the higher value added Virgin Fiber Boards business which includes Cup Stocks. In house pulp will provide the company an input cost advantage as well as consistency in raw material quality. Active efforts are being made to shift the product mix towards Virgin Fiber grades of packaging boards like Folding Box Boards, SBS Boards, Cup Stock and other specialty grades. Distribution strengths are being further strengthened and additional customers are being mapped. The company has successfully executed a major re-entry into the cup stock market and focusing on developing new products like Cup Stock grades with High Bulk meant for Exports Oriednted Customers and SBS grades to utilize the additional pulp from the new pulp mill. Focus is also there on pushing Higher GSM Products in all grades which increases productivity, output and overall contributions. Your company has successfully introduced Aqueous Barrier Coated Products which is an alternate to Polyextrusion which is being banned by many of the State Governments for Environment protection purposes.

IT Initiative and Cyber Security

The Company has carried out the below mentioned initiatives/implementations: -

• Adoption of digital transformation is the new-normal with the ever-changing advancements in the digital landscape and TNPL, being the torch-bearers of innovation and collaboration, has deployed state-of the-art digital technology that caters across different departments and exploring the digital advancements at all levels.

• Many new MIS dashboards added using Power BI for various module Top management for easy decision making & analytics based on Python forecast models.

• Industry 4.0 project - Based on the assessment and ROI and multiple validations, considering the immediate cost savings, make the advantage of Paper Plant Pulp, Soda Recovery and Energy.

• In-house process & instrumentation team studied from Board Plant for HW Pulp and

Chemical Bagasse Pulp (CBP) with various stages to control the variability and reduction in the chemical consumption for Paper plant pulp processes.

• TNeGA eOffice implemented since September 2024 for quick decision making of work flow approval process with enhanced productivity, transparency & accountability.

• Implemented Custom eProcurement system (EPS) portal with ERP integration for the purchase value less than or equal to Rs.5 Lakhs from December 2024.

• TNPL FarmConnect mobile application launched on March 2025 to the farmers for monitoring the plantation status of Eucalyptus & Casuarina.

• Drone aerial surveys for Bulk material stock verification of fossil fuels (Imported & Indigenous Coal), Lime Stone, Bagasse and Wood were carried out and is being compared between physical volume with arial calculation.

• Implementation of Sale Order tracking from Jumbo to Finished Goods for Paper Machine 3 as similar to Board Machine.

• AOP-Monthly Costing Report directly from Oracle EBS as system generated with the Process Cost & Variable Cost Sheet for manufacturing org viz. in Paper & Cement plants. Being developed for Board plant.

• Pulpwood supply chain - right from farmers field with Integrated Farming to harvest and procurement are managed through a single enterprise mobile app and being enhanced with very recent technology stack.

• Implementation of Automatic employee payments through integrations with the banks Cash Management Services (CMS) software.

• The current paper-based employee appraisal system is in the process of digitalisation into a Key Performance Indicator (KPI) software to avoid subjectivity and maintain confidentiality of information.

• Upgraded with latest ICT specific Certification of ISO/IEC 27001:2022 in the aspect of cyber security from 2013 to 2022.

V. RESOURCES & LIQUIDITY

TNPL funded the expansion project and all other Projects through appropriate mix of internal generation and borrowed funds. TNPL has repaid loans on due dates.

VI. OUTLOOK, OPPORTUNITIES AND CHALLENGES

The global paper industry is navigating a complex landscape, influenced by growth in packaging grades, particularly paperboard and paper-based packaging, alongside socio-economic challenges stemming from geopolitical tensions and economic uncertainties.

Paper and paperboard imports into India reached an all-time high of 19.3 lakh tonnes in FY 2024, marking a 34% increase from the previous year. This surge was largely driven by ASEAN countries, which benefited from zero import duties under the ASEAN-India Free Trade Agreement. Imports from China also saw a significant rise, contributing to the overall increase. Consequently, despite Indias substantial domestic production capacity, many mills operated below optimal levels, with only 553 out of over 900 mills remaining operational.

The influx of low-cost imports exerted downward pressure on domestic prices, leading to a 2-5% decline in volume growth and an estimated 7-10% revenue contraction for the industry in FY 2024. Operating margins for writing and printing paper manufacturers contracted by 400-500 basis points, influenced by increased raw material costs and reduced selling prices.

The Industry continues to face shortage of the major raw material for the Paper Industry - Wood, as this is now being consumed more by Non Paper Industry users, such as Ply wood and Veneer Industry etc., also the available wood cost has gone up substantially higher by 100%.

The industry is expected to face continued challenges in FY 2025, with a projected 2-4% volume growth and revenue contraction due to ongoing import pressures and elevated raw material costs. However, long-term prospects remain positive, supported by the New Education Policy (NEP), increased demand for packaging in sectors like FMCG and e-commerce, and a shift towards sustainable, paper-based solutions.

As far as Packaging is concerned, based on the representation from IPMA and other Associations, positive actions expected from Govt. of India can improve the sentiment of local manufacturers and realisations can improve.

Though the demand for the Packaging grades is expected to be low at present, it can be stable for the remaining period of FY as the demand can improve based on Festival requirements. Price and availability of Imported raw material is expected to get affected due to the on going turbulence in International scenario.

VII. RISKS AND CONCERNS

TNPL has a robust Risk Management process to identify, evaluate and mitigate risks impacting business and to create transparency, minimise adverse impact on the business objectives and enhance the Companys competitive advantage. This also defines the risk management approach across the enterprise at various levels including documentation and reporting and take proactive steps to mitigate them.

Further risks are categorized functions wise and classified further as High Risk, Medium Risk and Low risk depending on the dynamics and severity.

VIII. HUMAN RESOURCES DEVELOPMENT

1. TRAINING AND DEVELOPMENT

In TNPL, the Company recognize that continuous learning and development are crucial to both personal and organizational growth. In the ever-evolving business landscape, investing in our employees professional development enhances their career progression, builds interpersonal competencies, and equips them with the skills needed to meet emerging challenges. In line with this vision, the training programs for the year 2024-25 were meticulously designed to address technical, behavioural, and leadership areas, ensuring that employees are well-prepared to excel.

In the 2024-25 period, a total of 192 training programs were conducted, encompassing 2,583.5 mandays. These sessions covered a wide range of topics tailored to empower employees at various stages of their career. From enhancing technical expertise to cultivating leadership potential, the programs aimed at equipping our workforce with the tools necessary to navigate the complexities of the industry.

A key aspect of our training initiatives is the use of the Alfresco Portal, a powerful tool leveraged by HR Department. This platform hosts a rich repository of in-house training circulars, external program materials, and valuable feedback from participants. The Alfresco Portal allows employees who could not attend live training sessions to access training resources anytime, anywhere. This ensures that all employees, regardless of their location, have the opportunity to stay updated with the latest industry trends, hone their skills, and continually improve their competencies. This virtual accessibility offers a significant, intangible benefit, creating a culture of continuous learning within the organization.

The Company also believe in the power of knowledge sharing. Employees who participate in external training programs often return eager to share their insights and learnings with their colleagues. Many of these employees take the initiative to lead knowledge-sharing sessions within their respective departments, fostering a culture of collaboration and technology upgradation. Additionally, materials from external training programs are archived in the Technical Library, ensuring that the latest best practices and technical insights are readily available for reference by all employees.

The commitment to enhancing employee safety and well-being, 2024-25 also saw the introduction of First Aid and CPR training, not only for employees but also for contract workmen. In high-risk work environments, these life-saving skills are invaluable. The training empowers the workforce to respond effectively in medical emergencies, reducing risk and fostering a safer workplace. This initiative underscores dedication to improving overall safety standards and supporting the health and well-being of all personnel across the organization.

Aligned with the companys strategic objective of "Manufacturing Excellence," interactive

"Orientation Programs" are held for newly hired employees, led by Heads of Departments (HODs) to provide them with a comprehensive understanding of their roles and the organizational culture. These programs play a crucial role in integrating new employees and setting them up for success in their respective positions.

In line with TNPLs commitment to skill development and improving youth employability, the Company continue to engage Graduate, Diploma, and Sandwich Course students (SIT students) as Apprentices, as per the Board of Apprenticeship Training, Chennai. Additionally, the Company provide training opportunities for ITI Apprentices under the guidance of the Assistant Director of Training and the District Skill Training Offices of Karur/Trichy, as mandated by the Apprentices Act, 1961. This initiative not only helps in bridging the skill gap but also contributes to the development of a skilled workforce for the future.

Through these concerted efforts, TNPL is committed to fostering a culture of continuous learning and development, thereby ensuring both employee satisfaction and organizational success in the years ahead.

2. EMPLOYEE/ INDUSTRIAL RELATIONS

In TNPL, the employees are at the heart of our success. We foster a culture of collaboration, inclusivity, and continuous growth, where every individual is valued for their contribution to sustainable business operations. The companys commitment to providing a safe, supportive, and rewarding work environment is reflected in the strong employee engagement programs and initiatives aimed at skill enhancement.

Industrial relations at TNPL have always been harmonious, built on mutual trust and understanding between the management and employees. The proactive approach to addressing concerns and fostering transparent communication has contributed to a positive and productive work atmosphere. The Company continues to prioritize employee welfare, safety standards, and work- life balance, ensuring that our workforce remains motivated and aligned with the companys vision of excellence.

TNPL is dedicated to enhancing employee development programs, promoting innovation, and nurturing an environment that supports both personal and professional growth. The Companys commitment to industrial harmony and the wellbeing of the employees remains a cornerstone of long-term sustainability strategy.

IX. Corporate Social Responsibility (CSR)

TNPLs CSR activities are implemented mostly in the villages/Town Panchayats located in the vicinity of TNPL plants. CSR in TNPL is considered and taken as Personal Social Responsibility. Voluntarily employees come forward for carrying out several CSR initiatives. TNPL is committed to help the inhabitants of the surrounding villages by improving infrastructure facilities in Government Schools/Government Hospitals, Providing medical equipments to local Primary Health Centre (PHC), Constructing community hall, supplying drinking water to the local villages, de-silting strengthening of bunds, laying and improving roads, Constructing passenger sheds, culverts, providing street light facilities, Development of greeneries, Conducting medical camps, Conducting skill development training programmes, Providing financial assistance under medical assistance/education assistance, Contributing for Cultural programmes, Conducting Sports activities and for renovation of places of worship like Temple, Church, Mosque, etc., This has paved the way for congenial atmosphere with the inhabitants living in the local areas..

New Initiative - "Daily Mobile Medical Camp"

As part of the ongoing commitment to community welfare, the Company launched the Daily Mobile Medical Camp initiative in collaboration with Royal Care Super Speciality Hospital, Coimbatore. This initiative aims to provide accessible healthcare services to the residents of 50 surrounding villages of the mill, particularly focusing on elderly individuals, those with disabilities, and economically disadvantaged populations.

The daily mobile medical camp offers free general medicine consultations, along with vital health services such as blood pressure checks, sugar level monitoring, nebulizer facilities, and more. Over the course of one month, the camp has successfully served 1,200 beneficiaries, ensuring critical healthcare access to the underserved.

A dedicated team consisting of a doctor and two staff nurses from Royal Care Super Speciality Hospital is providing professional treatment, making a significant impact on the health and wellbeing of the community. This initiative reflects our ongoing efforts to improve quality of life for those in need and contribute positively to the communitys health infrastructure.

2% of the average profit before tax of the previous three years is spent generally by TNPL for various CSR activities covering Education, Health Care, Community Development & Infrastructure Development, Environment & Soil Quality and Culture & Heritage. During 2024-25, TNPL has spent Rs.6.35 crores towards CSR activities.

As required in the Companies Act, 2013, "Corporate Social Responsibility Committee" consisting of three Independent Directors and One Nominee Director - Government of Tamil Nadu is functioning in TNPL.

DISCUSSION ON FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE

Particulars	UOM	2024-25	2023-24
Production (Paper & Board)	MT	614572	618179
Sales (Paper & Board)	MT	615570	559608
Profit Before Interest, depreciation & tax	Rs.in Cr	525.17	838.75
Finance Cost	Rs.in Cr	216.13	223.48
Depreciation	Rs.in Cr	303.73	290.51
Profit Before Tax	Rs.in Cr	5.29	324.76
Profit After Tax	Rs.in Cr	3.72	208.16

KEY FINANCIAL RATIOS

The Management has reviewed the changes in key financial ratios and noted significant changes in all the ratios as given below:

Particulars	UOM	2024-25	2023-24	% Change Inc/Dec	Remarks
Revenue from Operation	Cr	4490.91	4689.62	-4.24%	Not applicable
EBIDTA Margin	%	11.45	17.61	-34.98%	Reduction in market price and net sales due to lower volume and lower realisation in Paper
Operating Profit Margin (EBIT)	%	4.83	11.51	-58.04%
Net Profit Margin (PAT)	%	0.08	4.37	-98.17%
Interest cover ratio (All Loans)	times	2.43	3.75	-35.20%	Reduction in Profit and increase in Long term loan repayments, finance costs and depreciation leads to higher difference in Interest coverage
Debt Equity Ratio	"	0.49	0.59	-16.95%	Not applicable
Current ratio	"	0.77	0.78	-1.28%	Not applicable
Debtors Turnover	"	10.58	11.93	-11.32%	Not applicable
Inventory Turnover	"	4.38	4.74	-7.59%	Not applicable
Return on Net Worth	?/ /o	0.18	10.32	-98.26%	Reduction in Net Profit due to reduction in net sales realisation and decrease in sale quantity