TO THE MEMBERS
 
 The Directors have pleasure in presenting the Thirtyfirst Annual Report
 and the Audited Accounts of your Company for the financial year ended
 31.3.2011.
 
 1.  FINANCIAL RESULTS
 
 The Financial performance of your company for the year under review is
 summarized in the table below:
 
                                                   (Rs. in crore)
 
 Particulars                             2010-11         2009-10
 
 Sales                                   1184.44         1025.68
 
 Other income                              40.59           47.94
 
 Operating Profit (PBIDT)                 362.75          319.80
 
 Interest and Finance charges              44.24           46.18
 
 Gross Profit (PBDT)                      318.51          273.62
 
 Depreciation                             123.37          115.56
 
 Profit before tax                        195.14          158.06
 
 Provision for tax                         46.14           32.00
 
 Profit after tax                         149.00          126.06
 
 Balance brought forward                   20.83           21.77
 
 Profit Available for appropriation       169.83          147.83
 
 APPROPRIATIONS
 
 Transfer to General Reserve              103.00           85.00
 
 Debenture Redemption Reserve               5.70            5.68
 
 Proposed Dividend                         34.61           31.14
 
 Tax on Dividend                            5.61            5.17
 
 Balance carried forward                   20.91           20.84
 
                                          169.83          147.83
 
 The company has achieved a higher PBDT and PAT compared to the previous
 year despite adverse conditions in the domestic and export markets and
 increase in input costs.  This financial performance is indeed a
 commendable achievement by the Management.
 
 2.  DIVIDEND
 
 Your Directors are pleased to recommend a dividend of 50% for the
 financial year ended 31.3.2011. The dividend, if approved by the
 shareholders, will be paid to all the equity shareholders whose names
 appear in the Register of Members as on 15.9.11. The dividend of 50 %
 for the year 2010-11 will cost the company Rs.40.22 crore, inclusive of
 taxes.
 
 3.  PERFORMANCE HIGHLIGHTS OF THE YEAR
 
 1. Sales crossed Rs.1000 Cr. for the third consecutive year.  Current
 year sales of Rs. 1184.44 Cr. is the highest ever achieved so far.
 
 2.  The Profit after tax has increased by 18.20% from Rs. 126.06 crore
 to Rs. 149.00 crore despite increase in input costs.
 
 3.  The dividend has been increased to 50% from 45% in the previous
 year.
 
 4.  The production capacity is increased from 245,000 tonnes per annum
 to 400,000 tonnes per annum and the inhouse Pulp capacity from 720 tpd
 to 880tpd.
 
 5.  Exports Sales leaped dramatically from 50,394 MTs. to 64,776 MTs.
 
 6.  Hardwood Pulp production increased to 97,492 MTs.  from 95,514 MTs
 in the previous year.
 
 7.  The wind farm generated 598.70 lakh units of Wind Power and earned
 a profit of Rs.4.56 cr.
 
 8.  Pulp wood plantation touched a new peak of 15,379 acres in a single
 year.
 
 9.  The Bio-methanation Plant generated 59.34 lakh cubic metres of
 methane gas enabling the company to save consumption of 3,545 KL of
 furnace oil.
 
 10. Achieved capacity utilization of 99.91 % in PM 1 & PM 2 and 60.92%
 in PM 3 in the first 72 days of operation with no introductory discount
 for new products.
 
 11. Adjudged as the best performer at the National level in Pulp &
 Paper category in the EVI Green Business Survey.
 
 12.  a) Received FSC Chain of Custody (C-o-C) and Controlled Wood
 Certificate from M/s Smart Wood Program of Rainforest Alliance, USA for
 complying with FSC-STD-40-004 and FSC-STD-40-005 standards.
 
 b) Received National Award for Excellence in Water Management 2010
 from Confederation of Indian Industry (CII) for the best performance in
 Water Management in India among the Industrial Sectors.
 
 13. The Mill Expansion Plan was completed during the year and the
 commercial production was commenced on 19.1.2011. Three other projects
 viz. setting up of a 300 tpd De-inking Plant, Revamping of power and
 steam system and setting up of a 600 tpd cement plant under lime sludge
 and fly ash management system are taken up for implementation during
 the year. The Cement Plant is likely to be completed by December 2011,
 De- inking plant by March 2012 and Revamping of power and steam system
 by April 2012.
 
 4. CONTRIBUTION TO ENVIRONMENT/ POLLUTION CONTROL.
 
 1. Your company has switched over completely from conventional
 bleaching to environmentally friendly ECF bleaching involving a capital
 outlay of Rs. 316 crore.
 
 2.  Reduction in water consumption has made your Company the lowest in
 water consumption in manufacture of fine paper.
 
 3.  Your Company has introduced ''Ozone Treatment System'' in the
 effluent treatment as a tertiary treatment for improving the quality of
 effluent discharge .
 
 4.  A Research project has been assigned to Tamilnadu Water Investment
 Company, Chennai for further improving the quality of effluent
 discharge. The pilot plant involving capital expenditure of about
 Rs.2.00 crore is under erection.
 
 5.  Project work relating to converting waste lime sludge and fly ash
 generated in the paper mill into high grade cement has been taken up
 for execution. This will make TNPL one of the most eco-friendly
 companies in India.
 
 6.  Continuous ambient air quality monitoring system has been
 commissioned to monitor the quality of air in the mill area.
 
 7.  Your Company''s windfarm with a total installed capacity of 35.5 MW
 at Devarkuarm and Perungudi in Tirunelveli District has generated
 598.70 lakh kWh Units of Green Power.
 
 5.  CONTRIBUTION TO SOCIETY
 
 1.  Your company is committed to being a socially responsible corporate
 body and has spent Rs.3.24 crore under its Corporate Social
 Responsibility Programme (CSR) during the year.
 
 2.  The CSR Policy of your company has as its aim, an expenditure of 3%
 of the profit of the previous year for CSR activities in the subsequent
 year.
 
 3.  The CSR projects focus on promoting Economic, Social, Environmental
 and Cultural growth of the community at large in an equitable and
 sustainable manner in the areas surrounding the factory and in
 peripheral areas around the factory.
 
 6.  CONTRIBUTION TO INNOVATION AND NEW KNOWLEDGE DEVELOPMENT
 
 1.  Your company gives great importance to all creative ideas in its
 Research and Development activities.
 
 2.  The expenditure on R&D activities has increased to Rs.4.12 Cr. from
 Rs.3.53 Cr. in the previous year. The long term plan is to increase R&D
 investment to atleast 1% of the turnover, from the current level of
 0.34%.
 
 3.  The R&D activities focus on product development, process
 improvement, raw material substitution, development of new products and
 environment protection.
 
 4.  R & D projects are carried out in-house. Projects are outsourced
 when necessary and warranted.
 
 7.  OVERALL PERFORMANCE- OTHER HIGHLIGHTS
 
 The production and capacity utilization are given hereunder;
 
                                                 (Figures in MTs) 
 
 Particulars                 2010-11            2009-10
 
                   PMI    PMII   PMIII   Total    PMI    PMII    Total
 
 Newsprint          -       -      -       -       -      -       -
 
 PWP            116921  127861   20262  265044  114610  130398   245008
 
 Total          116921  127861   20262  265044  114610  130398   245008
 
 Capacity           99.91%    60.92%                  l00.00%
 
 Utilisation (%)
 
 Your company has achieved an overall capacity utilization of 99.91% in
 Paper Machines 1 & 2 and 60.92% in Paper Machine 3 in its first 72 days
 of operation. During the year, your company has not produced Newsprint.
 The entire resources were utilised to produce Printing & Writing Paper
 in order to improve profitability.
 
 Power Exports during the year was 295.37 lakh units against 158.10 lakh
 units in the previous year. Total power generation during the year was
 4561.23 lakh units against 4103.81 lakh units in the previous year
 During the year, your company has drawn only 16.01 lakh units of power
 from the State grid, equivalent to 1% of the total consumption. Your
 company is therefore generating almost its entire requirements of
 power.
 
 Bagasse stock at the end of the year was 3,39,837 MTs.  With the
 implementation of several water conservation measures, water
 consumption stands reduced to 55 kl. per metric tonne, of finished
 production, the lowest in manufacture of fine paper using virgin fibre.
 
 The Company has tied up term loans with Banks for financing the ongoing
 projects viz.De-inking Plant , Revamping of Power and Steam System and
 600 tpd Cement Plant. Of the funds availed, pending crystallization of
 expenditure, the company has temporarily applied the loan proceeds of
 Rs.37.58 crore for general business operation. The unspent loan funds
 would be applied for the purpose when the expenditure crystallizes.
 
 8.  MARKET TRENDS
 
 a) Printing and Writing Paper
 
 The printing and writing paper demand and prices were affected
 adversely by the global economic slowdown since October 2008. Demand
 started improving from February 2010. The prices declined to about USD
 700-750 per MT during October- December 2008 and remained at that level
 until January 2010. Export prices started firming up slowly from
 February 2010. Your company has exported 64,776 MTs. of Printing &
 Writing Paper during the year against 50,394 MTs. in the previous year.
 
 Since 2008, many major players in the Indian Paper Industry have
 expanded their capacities. With the significant growth in consumption,
 the additional capacities have been fully absorbed.
 
 Import duty on printing and writing paper has been retained at 10% The
 excise duty was reduced from 8% to 4% effective 7th December 2008. This
 has subsequently been increased to 5% from 1st March 2011.
 Simultaneously, excise exemption allowed on the first 3500 MTs of PWP
 produced out of non-conventional raw material has also been withdrawn.
 
 TNPL Copier Brand has become a household name in the copier segment.
 
 b) Newsprint
 
 Newsprint which registered a sharp price increase between July 2008 and
 January 2009 started declining since February 2009 and stabilized at
 about USD 600 per MT till May 2010. For most part of the current year,
 the imported newsprint was being traded at about USD 650 pmt. and since
 April 2011 being traded at about USD 690 pmt. The newsprint prices are
 volatile and uneconomical. In view of the low profitability, your
 company resorted to manufacture of printing and writing paper only.
 
 9.  OUTLOOK
 
 a) Printing and Writing Paper
 
 The per capita paper consumption is estimated at 9.2 kg. The demand has
 picked up from January 2011 in both the domestic market and exports.
 
 Increase in spending by the Government on Education is likely to boost
 demand for writing paper from the academic segment. With the consistent
 economic growth, demand for packaging paper will also show improvement.
 
 There has been a sharp increase in fuel and pulp prices during the
 year. Coal price increased by about 25%, Hardwood pulp by 15% and
 Softwood pulp by 25% during the year. The spiralling cost has prompted
 the Industry to increase prices to sustain margins.
 
 b) Newsprint
 
 The Newsprint production in the country during the year grew by about
 3.2%. The growth in newsprint production is very low as majority of the
 demand is being met by imports. The imported newsprint is considered
 good in quality and lower in price.
 
 10. FIXED DEPOSITS
 
 Your company has stopped accepting fresh deposits from 1.6.2002 and
 renewals from 1.8.2005. The outstanding deposits as on 31.3.2011 was
 Rs.2.63 Lakhs against Rs.4.43 Lakhs in the previous year.  Number of
 depositors as on 31.3.2011 was 15 against 25 depositors in the previous
 year. Since the depositors are not available in the given addresses,
 the outstanding remains undisbursed.
 
 11. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
 
 During the year, the company has transferred a sum of Rs.5,81,760/- to
 the Investor Education and Protection Fund, the dividend amount which
 was due and payable and remained unclaimed and unpaid for a period of
 seven years , as required under Section 205A(5) of the Companies Act,
 1956.
 
 12. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The particulars required under Sec. 217(l)(e) of the Companies Act,
 1956, read with the Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988 are furnished in the Annexures to
 this Report (Annexure I and II).
 
 13.  STATEMENT OF EMPLOYEES'' PARTICULARS
 
 None of the employees drew remuneration of Rs.60,00,000/- or more per
 annum / Rs.5,00,000/- or more per month during the year. This
 information is furnished as required under section 217(2A) of the
 Companies Act, 1956, read with Companies (Particulars of Employees)
 Rules, 1975.
 
 14.  DIRECTORS
 
 Pursuant to the orders of Government of Tamil Nadu, Dr.N Sundaradevan
 IAS has been co-opted as an Additional Director w.e.f.27.5.2011 in
 place of Thiru Rajeev Ranjan IAS who has taken charge as Commissioner
 of Sugar. Dr.N Sundaradevan IAS will hold office upto the date of
 forthcoming Annual General Meeting and is eligible for appointment as
 Director in the Annual General Meeting . Further, vide Government Order
 dt.26.5.2011, Dr.N Sundaradevan IAS has been nominated as Chairman of
 the Company.
 
 Vide Government Order dt.25.5.2011, Thiru Rajeev Ranjan IAS has been
 nominated as a Director on the Board of TNPL in place of Thiru Vikram
 Kapur IAS.
 
 Tvl . N Kumaravelu and D.Krishnan, Directors retire by rotation and
 being eligible are seeking for re- appointment as Directors at the next
 Annual General Meeting.
 
 15.  COST AUDITORS
 
 Pursuant to orders of the Department of Corporate Affairs, M/s S
 Mahadevan & Co, Cost Accountants, Chennai have been appointed as Cost
 Auditors of your Company for the year 2010-2011.
 
 16.  STATUTORY AUDITORS
 
 The Comptroller and Auditor General of India has appointed M/s. P.B
 Vijayaraghavan & Co., Chartered Accountants, Chennai as the Auditors of
 your Company for the year 2010-2011.
 
 17.  SECRETARIAL AUDITOR
 
 Secretarial Audit of the company for the financial year ended March 31,
 2011 has been carried out through M/s R. Sridharan & Associates,
 Practising Company Secretaries. The Secretarial Audit Report confirms
 that the company has complied with all the applicable provisions of the
 Companies Act, 1956, Depositories Act, 1996, Listing Agreement with the
 Stock Exchanges and all the regulations of SEBI as applicable to the
 company.
 
 18.  INDUSTRIAL RELATIONS
 
 Overall industrial relations during the year were cordial.  The
 Directors place on record their appreciation of the valuable
 contribution made by the employees of your Company towards the
 performance and growth of your Company.
 
 19.  DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act, 1956, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed:
 
 1.  That the applicable accounting standards have been followed along
 with proper explanation relating to material departures, if any;
 
 2.  That the selected accounting policies were applied consistently and
 judgments and estimates that are reasonable and prudent were made 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 of the company for that
 period;
 
 3.  That the Directors have taken proper and sufficient care 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;
 
 4.  That the annual accounts were prepared for the financial year ended
 31st March 2011 on a going concern basis.
 
 20.  CORPORATE GOVERNANCE
 
 The Report on Management Discussion and Analysis and Report on
 Corporate Governance are forming part of Directors'' Report and are
 annexed as Annexure III and Annexure IV.
 
 As required by the Listing Agreement, an Auditor''s Certificate on
 Corporate Governance and a Declaration by the Managing Director with
 regard to Code of Conduct are attached to the said report.
 
 21.  CEO/CFO CERTIFICATION
 
 As required by Clause 49 of the Listing Agreement, a Certificate on the
 financial statements and Cash Flow statement of the company for the
 year ended March 31, 2011 duly signed by the Managing Director and
 Deputy Managing Director was submitted to the Board of Directors at the
 meeting held on May 27, 2011.
 
 22.  ACKNOWLEDGEMENT
 
 The Board has pleasure in recording its appreciation of the assistance,
 co-operation and support extended to your company by the shareholders,
 the Govt, of Tamil Nadu, the Commercial banks, Financial
 Institutions,the Depositors, Sugar Mills and the indentors. The Board
 also places on record its sincere appreciation towards the Company''s
 valued customers for the support and confidence reposed by them in the
 organization and looks forward to the continuance of this mutually
 supportive relationship in future.
 
                                       For and on behalf of the Board
 
                                                    DR.N SUNDARADEVAN
 
                                                             CHAIRMAN
 
 Date: 27th May 2011
 
 Place:Chennai 600032.