June 2004 Quarter Results

NOTES

1.The Company has implemented SAP R/3 ERP (Enterprise Resource Planning) System w.e.f. April, 2004.

2.The implementation of SAP R/3 system has resulted in change in the determination of cost for the purpose of valuation of Stores & Spares inventory, Chemicals inventory and Packing Material inventory from monthly moving weighted average to moving weighted average. It is not feasible to quantify the impact of such changes in the basis of determination of cost for the purpose of valuation of inventory and accordingly, the results for the quarter ended June 30, 2003 and year ended March 31, 2004 have not been restated considering the revised basis of detemination of cost.

3.The Board of Directors has approved incorporation of a subsidiary Company in Oman for installation of a new Film Line of 24000 TPA capacity.

4.The Education Cess @ 2% has not been considered pending enactment of Finance Bill, 2004. The impact of the same is Rs.0.56 lacs on the Minimum Alternate Tax and Rs. 12.84 lacs on the Deferred Tax Liability.

5.Investor's complaints received and disposed of during the quarter under report: (N0s.)
Complaints pending at the beginning of the quarter: 6
Complaints received during the quarter: 20
Complaints disposed of during the quarter: 22
Complaints lying unresolved at the end of the quarter: 4

6.Previous year / quarter figures have been regrouped / recast wherever necessary to make them comparable.

7.The results for the quarter ended 30th June 2004 have been subjected to limited review by the Auditors and were taken on record at the Board of Directors meeting held on 3rd August 2004.

For ESTER INDUSTRIES LIMITED