Ester Industries Ltd. — Interim / Quarterly Report 2023

Aug 10, 2022

Date: 10th August, 2022

BSE Limited	National Stock Exchange of India Limited
Department of Corporate services	Exchange Plaza,
Phirojee Jeejeebhoy Towers	Plot no. C/1, G Block,
Dalal Street, Mumbai – 400023	Bandra‐Kurla Complex,
Symbol : 500136	Bandra (E), Mumbai – 400051
	Symbol : ESTER

Dear Sir

Subject : 1) Outcome of the Board Meeting

2) Submission of financial results for quarter ended on 30th June, 2022 3) Intimation for Annual General Meeting (AGM) and Book Closures

We wish to intimate you that a meeting of the Board of Directors of the Company was held on Wednesday, 10th August, 2022. The meeting was commenced at 3.36 PM and concluded at 4.22 PM. During the meeting, the Board, amongst other items of Agenda, approved the following matters –

• 1. Approval of the Un‐audited Financial Results for the quarter ended on 30th June, 2022.
• 1. 36th Annual General Meeting (the AGM) of the Company will be held on Wednesday, 28th September, 2022 at 11:00 AM through Video Conferencing/ Other audio visual means , in accordance with the applicable circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Notice of the AGM is also approved by the Board of Directors.
• 1. The Company has fixed Wednesday, 21st September, 2022 as the "Cut‐off Date" for the purpose of determining the members eligible to vote on the resolutions set out in the Notice of the AGM or to attend the AGM.
• 1. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 91 of the Companies Act, 2013, the Register of Member and Share Transfer Books will remain closed from Thursday, 22nd September, 2022 to Wednesday, 28th September, 2022 (both days inclusive) for the purpose of Annual General Meeting and ascertaining the list of shareholders eligible for the Dividend.
• 1. If dividend on Equity Shares, as recommended by the Board, is declared at the Annual General Meeting, the Payment of such dividend will be made before 26th October, 2022 to those member whose names are recorded in the Register of Members or in the Register of Beneficial Owners maintained by Depositories at the end of business hours on 21st September, 2022

Pursuant to the requirement of Regulation 33 of SEBI (LODR) Regulation, 2015, we wish to submit the approved Un‐audited Financial Results for the quarter ended on 30th June, 2022 along with Limited Review Report.

We hereby inform that In compliance with the applicable MCA circulars, the Annual Report for the financial year 2021‐22, comprising the Notice of the AGM and Standalone and Consolidated financial statements for the financial year 2021‐22, along with Directors' Report, Auditors' Report and other documents required to be attached thereto, will be sent to all such members of the Company whose email addresses are registered with the Company / Depository Participant.

Please take the above on your record.

Thanking You

Yours Faithfully For Ester Industries Limited

Diwaker Dinesh Head‐Legal & Company Secretary

Encls: As above

Walker Chandiok &.Co LLP

Walker Chandiok & Co LLP 21" Floor, DLF Square Jacaranda Marg, DLF Phase II Gurugram -122 002 India T +91124 4628099 F +91124 4628001

Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Ester Industries Limited

• 1. We have reviewed the accompanying statement of standalone unaudited financial results ('the Statement') of Ester Industries Limited ('the Company') for the quarter ended 30 June 2022, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
• 1. The Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34'), prescribed under Section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Chartered Accountan1B

Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Naida and Puna

Walker Chandiok & Co LLP is registered with limited liability with identification number MC-2085 and its registered office at L-41 Connaught Circus, New Delhi, 110001, India

100'••010~,o ~~ 'i ?'e..9E'oAcc"i:fo.~

Walker Chandiok &.Co LLP

1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

Nitin Toshniwal Partner Membership No. 507568 UDIN: 22507568AOSCBN2231

Place: Faridabad Date: 10 August 2022

Walker Chandiok & Co LLP 21" Floor, DLF Square Jacaranda Marg, DLF Phase II Gurugram -122 002 India

T +91124 4628099 F +91124 4628001

Independent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Ester Industries Limited

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results ('the Statement') of Ester Industries Limited ('the Holding Company') and its subsidiary (the Holding Company and its subsidiary together referred to as 'the Group'), (refer Annexure 1 for the list of subsidiary included in the Statement) for the quarter ended 30 June 2022, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
• 1. This Statement, which is the responsibility of the Holding Company's management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34'), prescribed under section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Chartered Accountan1B Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kechi, Kolkata, Mumbai, New Delhi, Neida and Puna Walker Chandiok & Co LLP is registered with limited liabily wh identification number MC-2085 and its registered office at L-41 Connaught Circus, New Delhi, 110001, India

Walker Chandiok &_Co LLP

We also performed procedures in accordance with the SEBI Circular CIR/CFD/CMD1/44/2019 dated 29 March 2019 issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), to the extent applicable.

1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

Nitin Toshniwal Partner Membership No. 507568 UDIN: 22507568AOSBTD1510

Place: Faridabad Date: 10 August 2022

Walker Chandiok &_Co LLP

Annexure 1

List of entities included in the Statement

Name of Holding Company Ester Industries Limited

Name of Subsidiary Company Ester Filmtech Limited

ESTER INDUSTRIES LIMITED Regd. Office: Sohan Nagar, P.O. Charubcta, Khatima- 262 308. Dlstt. Udhamsin&h Nagar (Uttarakhand) CIN- l..24ll1UR1985PLC015063, Website: www.cstcrlndustrtcs.com; Email: investor@ester.in Phone: (05943) 250153-57; Fax: (05943) 250158

Statement of unaudited financial tUults for the quarter ended 30 .June 2022

										(fin la('s)
					Standalone results		Consolidated results
Sr. No			Quarter ended	Preceding quarterended	Correspondi•gquarter ended	Pre"Viousyearended	Quarter endfll	Preceding quarterended	Correspondingquarter ended	rre\fous yl'arended
		Particular	30 .lune 2022	31 March 2022	3tl June 2021	31 March 2022	30 June2022	31March2022	30 June 2021	31 March 2022
			(Unaudited)	(Audited as explainedin note 5)	(U naudltcd)	(Audited)	(Unaudited)	(Audited as explainedin nott•S)	(Unaudited)	(Audited)
	PAN.Tl
		Income
	•)	Revenue from operations	32,429.20	30.309.71	25,992.12	111,024.95	32,429.20	30,309.71	25,992.12	111.024.95
	b)	Other income	221.87	2 14.41	206.60	880.42	221.87	209.44	206.60	880.42
		Total income (a+b)	32,651.07	30,524.12	26,198.72	111,905.37	32,651.07	30,519.15	26,198.72	111.905.37
		Expenses
	•)	Cost of materials consumed	18,838.91	18.913.89	15.586.13	70,271.70	18,838.9 1	18,9 13.89	15.586.13	70,271.70
	b)	Changes in invenlories of finished goods and work in progress	56.65	(557.86)	372.94	(2.728.86)	56.65	(557.86)	372.94	(2.728.86)
	c)	Employee benefits expense~	1,728.99	1.675.88	1.499.95	5.9 19.88	1,753.23	1,685.99	1.516.87	5,979.95
	d)	Finance cost	662.64	857.32	494.11	2,486.31	662.64	851.72	41J7.57	2.487.53
	•)	Ocpn:ciation and amortisation expense	951.54	946.87	874.87	3.670.RJ	955.76	950.73	875.29	3.682.17
	f)	Other expenses	5,826.66	5.253.38	4,539.00	20,271.89	5,850.22	5.218.64	4,587.09	20.413.98
		Total expenses (a+b+e+d+c+I)	28,065.39	27,089.48	23,367.00	99,891.75	28,117.41	27,063.11	23,435.89	100,106.47
		Profit before tax from continuing operations	4,585.63	3,434.64	2,831.71	12,013.62	4,533.66	3,456.04	2,762.83	11,798.LJO
		Tax expense related to continuing operations
		Curren! tax	1,231.73	960.96	756.20	3,167.59	1,23 1.73	960.96	756.20	3.167.59
		Tax earlier years		136.75		136.75		136.75		136.75
		Deforred lax charye/ (credit)	(56.66)	(20.09)	(42.44)	(72.35)	(56.66)	(20.09)	(42.44)	(72.35)
		Net profit for the quarter I year from continuing operations (3-4)	3,410.61	2.)57.02	2,117.96	8,781.63	3,358.59	2,378.42	2,049.07	8,566.91
		Proflt before tax from discontinuing operations #	1,066.64	1,221.67	2,197.34	6,821.46	1,066.64	1,221.67	2,197.34	6.821.46
		Tax expense related lo discontinuing operations#	268.47	307.50	553.07	1.716.96	268.47	307.50	553.07	1.710.%
		Net profit for the quarler I year from discontinuing operations (6-7)	798.17	914.17	1,644.27	5,I04.50	798.17	914.17	1,644.27	5,I04.50
	9	Total net profit for the quarter/year (5+8)	4,208.73	3,271.19	3,762.23	13,886.13	4,156.76	J,292.59	3,693.34	13,671.41
	10	Other comprehensive income
	•)	Items that will not be reclas::.ified to profit and loss
		i) Actuarial gain/ (loss) on remeasurement of defined benefit plan	27.62	0.24	5.96	(14.73)	26.67	(1.47)	5.96	(16.83)
		ii) Income tax effocl	(7.05)		(1.50)	3.76	(7.05)		(1.50)	3.7•
		Other comprehensh·e income/ (lua:s) for the quarter I year (a(i+ii))	20.57	0.24	4.46	(10.97)	19.62	11.47)	4.46	(13.07)
	II	Total comprehensive iaconie/ (loss) for the quarter I year (9+10)	4,229.35	3,271.43	3,766.69	13,875.16	4,176.38	3,291.12	3,697.80	13,65>1.34
		Paid-up equity share capital (face value of share~ S each)	4.169.69	4.169.69	4.169.69	4.169.69	4.169.69	4,109.69	4,16CJ.69	4.169.69
		Other equity				58,676.66				58.001.43
		Earning per share (face- value of~ S each)
		Basic and Diluted EPS from continuing operation (not a1mualiscd) - inf	4.09	2.82	2.54	10.53	4.02	2.85	2.46	10.27
		Rasic and Diluted EPS from discontinuing operation (not annualised) - in~	0.96	1.10	1.97	6.12	0.96	1.10	1.97	6.12
		Basic and Diluted EPS from continuing and discontinuing operation (notannualised) · in ~	5.05	3.92	4.51	16.65	4.98-	3.95	4.4 3	16.39

* ~ i PURPOSES ONLY

o~

ESl'ER INDUSTRIES LIMITED H.egd. Office : Sohan Nagar, P.O. Charubeta, Khatlma - 262 308. Distt. Udhamsineh Nll.gar (Uttarakband) CIN - L24111URl985PLC01S063, Website: www.esterlndHlrics.com; Emllil: iavestor@cster.in Phone: (05.943) 250153-57; l<'ax: (05943) 250158 Stitlement of unaudited financial results for the quarter ended 30June1012

Segment wise Re.'em1e, R<.~ults, Assets and Liabi.litii:!s

										(fin lacsl
				Standalone results			Consolidated results
Sr. No		Particulars	Quarter ended	Pre('ediog quarterended	Correspondingquarter ended	Previous yearended	Quarter ended	Preceding qm11.rtcrended	Correspondingquarter ended	Previous ~·earended ·
			30 June 2022	3 I March 2022	30 June 2021	31 March 2022	30 June 2022	31 March 21122	30 June 2021	JI March2022
			(Unaudited)	(Audited as explainedIn note 5)	(Unaudited)	(Audited)	(Unaudited)	(Audited as explainedin note5)	(Unaudiled)	(Audited)
		Segment revenue
		a) Polyester chips and film	26,636.28	25.580.85	22,451 .68	93,758.83	26,636.28	25,580.85	22 ,451.68	93,758.83
		h) SpccialitY polymeno	5.792.92	4,728.86	3,540.44	17,266.12	5.792.92	4.728.8•	3,540.44	17.266.12
		Revenue from 011cr11tions	32,429.20	30,-309.71	25 992.12	111,024.95	32,429.20	30.309.71	25,992.12	Ill 024-.95
		Segment results
		Profit before tax and Interest
		a) Polyester chips and film	5.262.95	4.905.12	3,585.14	1:'5 ,2.59.25	5,210.93	4,920.91	3.519.71	15.045.74
		b) Speciality polymers	1,795.28	1,366.11	1,286.73	5,566.63	1.795.28	l,366.1 I	l.280.73	5.560.63
		Total	7,058.23	6,271.23	4,871.87	20,81.5.88	7,006.21	6,287.02	4,806.44	20,612.37
		Less:
		a) Finance cost	662.64	85 7.32	494.11	2,486.31	662.64	851.72	497.57	2.487.53
		b) Other un-allocable exoenditure net oJTfrom un-a\locable income	1.809.91	1,979.27	1.546.04	6,325.95	1.809.91	1,979.20	1,540.114	6,325.94
		Profil before tax from coutinuini?. 011erations	4,585.68	3,434.64	2,831.72	12,013.62	4,533.66	3,456.()4	2,762.83	I 1,798.90
		Profit before tax from discontinuinJ,! 01•erations	I OM.fi-4	1,221.67	2 197.34	6 821.46	1,066.64	1221.67	2,197.34	6,821.46
		Profit before tax	5,652,32	4,656.31	5 029.06	18,835.08	5 600.30	4,677.71	4,960.17	18,620.36
		Segment assets
		ii) Polycstcrchips and film	45,616.19	47.842 .53	41.515.59	47.842.53	100.139.41	98,591.91	51 ,960.96	9S.591.91
		b) Speciality polymers	17,773.50	12.921.00	10,519.46	12.921.00	17,773.50	12,921.00	10.519.46	12.921.00
		c) Um1lloc11ted	37,741.06	35,574.95	27,763.64	35,574.95	18,752.62	17,506.51	16,892.64	17.500.51
		d) Assets associated with discontinued oncrations #	15,022. 15	13,799.68	13,085.93	13,799.68	15,022.15	13,799.68	13.085.93	13.799.68
		Total	116.152.90	110 138.16	92.884.62	110 138.16	151 687.68	142,819.10	91464.99	142 819.111
		Segment liabilities
		a) Polyester chips and film	5,745.95	5,981.80	5211.91	5,981.80	7,114.81	7,459.53	5.333.46	7.459.53
		b) Speciali1y polymers	1,315.36	l,827.81	432.47	1.827.81	1,315.36	1.827.81	432.47	U!27.81
		c) Unallocated	39,774.69	37,511.82	30.463.11	37.511.82	74,b68.81	69.390.26	30.449.23	69.390.20
		d) Liabilities associated with discontinued operations #	2.).29.27	l,970.38	1.334.59	1,970.38	2,229.27	1.970.38	1.334.59	1.970.38
		·1·otal	49,065.27	47,291.81	37,442.08	47,291.81	85,328.25	80,647.98	37,549.75	80,647.98

NOTES'

Refer note 3

I Jn tenns of Regulation 33 of the SEBI (Listing Obligations and Disclosuri: Requirements) 2015, as amended, above financial results for tht: quarter ended 30 June 202:2 have been reviewed and recommended for appro\181by1hc Audit Committee and accordingly lia'C been approved by the Board of Directors of Ester Industries Limited (''lhc Company") at their respective meetings held on 10 August 2022. Tfle statutory auditors have carried out limited review of the financial results of lite Company for the quarter ended 30 June 2022. 2 Thi; results have been prepared in accordance with the recognition and measurement principles of applicable Indian Accnunting Standard ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in section 133 of the Companies Act. 2013 (read with SEBI Circular CIR/CFD/FAC/62/2016 dated 05 July 2016 and other recognised accounting practices and policies).

3 01\ 06 May 2022 , Board of Directors of the Company had approved transfer of Engineering Plastics Business by way of Slump Sale as a 'Going Concern' to ~1/s. Radici Plastics India Private Limited (Buyer). The Company lrns signed and entered into a Busi11ess Trnnsti:!r Ab'Tecment with the Buyer on the same date i.e. on 06 May 2022 to transfer Engineering Plastic business (consisting of two product lines viz Compounded Products and Products related to Optical Fiber Cable (OF(')) on a slump sale basis. Business w<1s re1"io1t..:d under "Enginc.::ring PlastK; S1;:gment" in accordance with the requin:ments of the IND AS 108 ·"Operating Segments" in the financial statement for the year ended 3'\ March 2022.

SIGNED FOR IDENTIFICATION PURPOSES ONLY

ESTER INDUSTRIES LIMITED Regd. Office: Sohan Nagar. P.O. Charubela, Khatima - 262 308. Distt. Udbamslngh Nagar (UUarakhand) CIN - L24111URl985PLC015063, Website: www.cstcrind•stl'"ies.com; Email: lnvestor@e.<r;ier.in Phone: (05943) 250153-57; Fax: (05943) 250158 Statement of unaudited financial results for the qurter ended 30 June 2022

In ten us or Ind AS 105-"Non·currcnt assts held for sale .and discontinued operation" particulars of discounh:d operation disclosed in the above results are as follows~

(fin lacs)

Particulars		Standalone results			Consolidated results
	Ouarter ended	Preceding quarterended	Correspondingquarter ended	Previous yearended	Ouarter ended	Preceding quarterended	Correspondingquarter ended	Previous yearended
	30 June 2022	31 March 2022	30 June 2021	31 March 2022	30 June 2022	31 March 2022	30 June 2021	31 March 2022
	(Unaudited)	(Audited as explained)in note 5)	(Unaudited)	(Audited)	(Unaudited)	(Audited as explained)in note 5)	(Unaudited)	(Audited)
Total income	7,764.69	8.501.96	5,899.74	29,540.99	7,764.69	8,501.96	5,899.74	29.540.99
Total expenses	6,698.05	7.280.29	3,702.40	22,719.53	6,698.05	7,280,29	3,702.40	22,719.53
Profit before tax from discontinued operations	1,066.64	1,221.67	2,197.34	6,821.46	1,066.64	1,221.67	2,197.34	6,821.46
Tax expenses related to discontinued operations	268.47	307.50	553.07	1.716.96	268.47	307.50	553.07	1,716.96
Profit after tax from discontinued operations	798.17	914.17	1,644.27	5,104.50	798.17	914.17	1,644.27	5,104.50

4 111e figures or the quarter/year have been re-grouped/re-dassificd in accordance with Ind AS 105-"Non-c urrent assts held for sale and discontinued operation" and Ind AS 108- "Operdting Segments" 10 give effect slump sales or Engineering rlastic Business.

5 figures for ttle quarters ended 3 1 March 2022 is balancing fii.'Ures between audited figures for the full financial year and rhe reviewed year to date tigurcs up to the lhird quarter of the financial year.

Place: Gurugram Oafe: I 0 August 2022

SIGNED FOR IDENTIFICATION PURPOSES ONLY