The present study aims to identify the financial strengths and weaknesses of the Tamil Nadu Newsprint and Papers Limited (TNPL) by properly establishing relationships between the items of the balance sheet and profit and loss account. The study has been undertaken for the period of Six years 2014 -15 to 2019-20 and the necessary data have been obtained from CMIE database. The liquidity position was strong in case of TNPL thereby reflecting the ability of the company to pay short-term obligations on due dates and they relied more on external funds in terms of long-term borrowings thereby providing a lower degree of protection to the creditors. Financial stability of TNPL has showed a downward trend and consequently the financial stability of TNPL has been decreasing at an intense rate. This is a major limitation of the research. The study is of crucial importance to measure the firm’s liquidity, solvency, profitability, stability and other indicators that the business is conducted in a rational and normal way; ensuring enough returns to the shareholders to maintain at least its market value. The study will help investors to identify the nature of paper industry and will also help to take decision regarding investment.