Board Approval of Capital Expenditure Proposals

National Stock Exchange of India Limited
“Exchange Plaza”
Bandra-Kurla Complex,
Bandra (E),
MUMBAI 400 051.

SRF/SEC-A/16                                                                                              27.10.2004


Dear Sir,

In continuation of our letter No.SRF/SEC-D/16 dated 14th October, 2004, this is to inform you that the Board of Directors of the Company at its meeting held on 27th October, 2004 have approved the following capital expenditure proposals:

i) Modernisation and capacity expansion for Industrial Synthetics Business - Rs.262.69 crores (GFA - Rs.240.77 crores; NCA - Rs.21.92 crores).

ii) Power Project for Industrial Synthetics Business (Gwalior) - Rs.7.95 crores - investment of Rs.6.90 crores in the equity of a Special Purpose Company and Rs.1.05 crores for purchase of equipment.

iii) Metalizer and Slitter for Packaging Films Business, Indore - Rs.12.55 crores (GFA - Rs.11.01 crores; NCA - Rs.1.54 crores).

A proposal to issue a corporate guarantee for Rs.37 crores to the lenders of SRF Overseas Ltd., a wholly owned subsidiary of the Company for their expansion plans has also been approved by the Board at the said meeting.

Thanking you,

Yours faithfully,
for SRF LIMITED

ANOOP K. JOSHI
COMPANY SECRETARY