The Directors are pleased to present the 32nd Annual Report and the
 audited accounts for the financial year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
 The financial performance of the Company, for the year ended 31st
 March, 2011 is summarized below:
 
                                                         (Rs. in Lac)
 
 Particulars                     Standalone             Consolidated
                               2010-11    2009-10    2010-11    2009-10
 
 Sales                       39,993.83  37,166.69  79,997.92  67,225.43
 
 Less: Excise Duty            2,364.41   2,260.18   2,364.41   2,260.18
 
 Total Sales                 37,629.42  34,906.51  77,633.51  64,965.25
 
 Profit before Finance 
 Charges, Depreciation,
 Foreign Exchange Variation 
 (net) and Tax                6,192.62   2,660.23  14,404.74   6,419.16
 
 Less:
 
 - Finance Charges              314.84     312.20     822.72   1,135.39
 
 - Depreciation               2,419.02   1,429.00   6,389.29   5,688.34
 
 Profit before Foreign 
 Exchange Variation (net) 
 and Taxation                 3,458.76     919.03   7,192.73    (404.57) 
 
 Foreign Exchange Variation 
 – Gain (net)                    91.46   2,434.99     268.02   2,235.03
 
 Profit before Tax            3,550.22   3,354.02   7,460.75   1,830.46
 (Less) / Add: Provision for 
 Taxation
 - Current Tax               (1,330.00)   (580.00) (1,330.00)   (580.00)
 
 - Deferred Tax                  28.33    (627.13)    892.66      33.86
 
 - Wealth Tax                    (2.50)     (2.00)     (2.50)     (2.00) 
 
 Profit for the year          2,246.05   2,144.89   7,020.91   1,282.32 
 
 Add: Prior period adjustments 
 and Tax adjustments of 
 earlier years (net)              5.70   1,903.90       5.70   2,860.41
 
 Minority Interest                   –          –      24.45       8.32
 
 Net Profit                   2,251.75   4,048.79   7,051.06   4,151.05 
 
 Balance brought forward 
 from previous year           9,707.17   8,073.88  29,021.76  27,286.21 
 
 Balance Available for
 appropriation               11,958.92  12,122.67  36,072.82  31,437.26
 Appropriations
 
 Proposed Dividend            1,607.37   1,213.89   1,607.37   1,213.89
 
 Provision for Dividend Tax     266.96     201.61     266.96     201.61
 
 Dividend and Dividend Tax 
 for the year 2009-10            83.96          –      83.96          –
 
 Transfer to General Reserve  1,000.00   1,000.00   1,000.00   1,000.00
 
 Balance carried forward      9,000.63   9,707.17  33,114.53  29,021.76
 
 Basic and Diluted earnings 
 per share of Rs. 2 each 
 before excess depreciation*      2.13       2.04       6.66       1.19
 
 Basic and Diluted earnings 
 per share of Rs. 2 each after 
 excess depreciation*             2.13       4.00       6.66       4.10
 
 * Calculated on weighted average number of shares.
 
 PERFORMANCE REVIEW
 
 Financial Year 2010-11 marked a strong resurgence in volume and demand
 growth post the financial crisis. The Company has registered a strong
 broad based sequential growth across all key markets and customer
 segments.
 
 On consolidated basis for FY 2010-11, revenues at Rs. 77,634 Lac were
 higher by around 20% over the previous years revenues of Rs. 64,965
 Lac. Net profit at Rs. 7,051 Lac was higher by around 70% over the
 previous years net profit of Rs. 4,151 Lac. During the year, the total
 consolidated sales volume of cylinders increased to 884,339 nos. as
 against 687,212 nos. in the previous year.
 
 This was achieved mainly on account of overall improvement in sales
 volume, increase in sales of high value added products and continuing
 efforts to control costs and improve profitability.  The growth in
 international business also contributed towards the overall
 profitability of the Company.
 
 DIVIDEND
 
 Your Directors have recommended a dividend of Rs. 1.50 per Equity Share
 (last year Rs. 1.20 per Equity Share) for the financial year ended 31st
 March, 2011, amounting to Rs. 1,874.33 Lac (inclusive of dividend tax
 of Rs. 266.96 Lac).
 
 The dividend payout for the year under review has been formulated in
 accordance with the Companys policy to pay sustainable dividend linked
 to long term growth objectives of the Company to be met by internal
 cash accruals.
 
 PREFERENTIAL ALLOTMENT OF EQUITY SHARES
 
 Pursuant to the approval accorded by the members at the Extraordinary
 General Meeting held on 19th June, 2010, your Company had raised Rs. 81
 crores by allotting 6,000,000 equity shares to 2 schemes of Reliance
 Mutual Fund on a preferential basis at Rs. 135/- per equity share
 (including a premium of Rs. 133/- per share) on 19th June, 2010. The
 proceeds of the proposed preferential offer were utilised for capital
 expenditure, working capital and repayment of debt.
 
 SUBSIDIARIES
 
 Your Company established a wholly owned subsidiary (WOS) in Thailand on
 7th Oct, 2010 by the name of EKC Industries (Thailand) Co. Ltd. Since
 Thailand is promoting Natural Gas Vehicles in a big way, EKC looks
 forward to expanding its market share in Thailand.
 
 As on 31st March, 2011, the Company had three wholly owned subsidiary
 companies, viz., EKC International FZE in Dubai, UAE, EKC Industries
 (Tianjin) Co. Ltd. in China and EKC Industries (Thailand) Co. Ltd. in
 Thailand and two step down wholly owned subsidiary companies, viz. EKC
 Hungary Kft in Hungary and CP Industries Holdings, Inc. in USA and one
 Indian Subsidiary Company viz., Calcutta Compressions & Liquefaction
 Engineering Ltd.
 
 Pursuant to the provision of Section 212(8) of the Companies Act, 1956
 (the Act), the Ministry of Corporate Affairs, Government of India vide
 its circular dated 8th February, 2011 has granted general exemption
 from attaching the Balance Sheet, Profit and Loss Account and other
 documents of the subsidiary companies with the Balance Sheet of the
 Company. A statement containing brief financial details of the
 Companys subsidiaries for the financial year ended 31st March, 2011 is
 included in the Annual Report. The annual accounts of these
 subsidiaries and the related detailed information will be made
 available to any member of the Company who may be interested in
 obtaining the same at any point of time and are also available for
 inspection by any member of the Company at the registered office of the
 Company and that of the respective subsidiary companies. The
 Consolidated Financial Statements presented by the Company include the
 financial results of the subsidiary companies.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed deposits during the year under
 review.
 
 SHIFTING OF ACTIVITIES OF AURANGABAD UNIT TO GANDHIDHAM UNIT
 
 With a view to consolidate and promote synergy amongst similar
 facilities which would result in effective utilization of the
 manufacturing facilities and also considering the feasibility and
 viability of order execution and prompt delivery of committed supplies
 to customers, it was considered prudent to shift the entire activities
 of the plant located at Aurangabad, Maharshtra to the companys larger
 unit located at Gandhidham, Gujarat which has the resources and the
 capacity to handle the incremental volume of business as a result of
 such change.
 
 DIRECTORS
 
 Mr. Arvind Malhan ceased to be alternate director to Mr. Varun Bery
 w.e.f. 1st January, 2011. Mr. Akash Mehta who had been appointed as an
 alternate director to Mr. Varun Bery w.e.f.  31st January, 2011 also
 ceased to be alternate director to Mr. Varun Bery w.e.f. 13th May,
 2011. Mr. Hon Cheong Lam has been appointed as an alternate director to
 Mr. Varun Bery w.e.f.  27th May, 2011.
 
 As per the provisions of Article 137 of the Articles of Association of
 the Company, Mr. Naresh Oberoi, Mr. Vyomesh Shah and Mr. Gurdeep Singh,
 retire by rotation and being eligible, offer themselves for
 re-appointment at the ensuing Annual General Meeting. The Board of
 Directors has also recommended their re- appointment for consideration
 of the shareholders.
 
 Brief resume of the Directors proposed to be re-appointed, nature of
 their expertise in specific functional areas and names of public
 limited companies in which they hold directorships and memberships /
 chairmanships of Board Committees, as stipulated under Clause 49 of
 Listing Agreements with the Stock Exchanges in India, are provided in
 the Report on Corporate Governance forming part of the Annual Report.
 
 CREDIT RATING FROM CRISIL
 
 The Company continues to have the highest domestic credit rating of P1
 for short term borrowings and A+ / Stable for long term borrowings by
 CRISIL. Strong credit ratings by the leading rating agency reflect the
 Companys financial discipline and prudence.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 Management Discussion and Analysis Report for the year under review, as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India, is presented in a separate section forming part of
 the Annual Report.
 
 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 that:
 
 (i) in the preparation of the annual accounts for the year ended 31st
 March, 2011, the applicable accounting standards have been followed and
 there are no material departures from the same;
 
 (ii) the Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as at 31st March, 2011 and of the profit of the Company
 for the year ended on that date;
 
 (iii) 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; and
 
 (iv) the Directors have prepared the annual accounts of the Company on
 a going concern basis.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 In accordance with the Accounting Standard AS-21 on Consolidated
 Financial Statements, your Directors provide the Audited Consolidated
 Financial Statements in the Annual Report.  As a significant part of
 your Companys business is conducted through its subsidiaries, your
 Directors believe that the consolidated accounts provide a more
 accurate representation of the performance of your Company.
 
 AUDITORS
 
 M/s. Dalal & Shah, Chartered Accountants, Statutory Auditors and M/s.
 Arun Arora & Co., Chartered Accountants, Branch Auditors hold office
 until the conclusion of the ensuing Annual General Meeting and are
 elligible for re-appointment.
 
 The Company has received letters from M/s. Dalal & Shah and M/s. Arun
 Arora & Co. to the effect that their re-appointment, if made, would be
 within the limits prescribed under Section 224(1B) of the Companies
 Act, 1956 and that they are not disqualified for re-appointment within
 the meaning of Section 226 of the said Act.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to achieving and maintaining the highest
 standards of Corporate Governance and places high emphasis on business
 ethics. The Report on Corporate Governance as stipulated under Clause
 49 of the Listing Agreement forms part of the Annual Report.
 
 The Report on Corporate Governance as stipulated under Clause 49 of the
 Listing Agreement forms part of the Annual Report. The requisite
 Certificate from the Auditors of the Company, M/s. Dalal & Shah,
 confirming compliance with the conditions of Corporate Governance as
 stipulated under the aforesaid Clause 49, is annexed hereto as
 Annexure A” and forms part of this report.
 
 PARTICULARS OF EMPLOYEES
 
 In terms of the provisions of Section 217(2A) of the Companies Act,
 1956, read with the Companies (Particulars of Employees) Rules, 1975 as
 amended, the particulars of employees are set out in annexure to this
 Report.
 
 However, having regard to the provisions of Section 219(1)(b)(iv) of
 the said Act, the Annual Report excluding the aforesaid information is
 being sent to all the members of the Company and others entitled
 thereto. Any member interested in obtaining such particulars may write
 to the Company Secretary at the registered office of the Company.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The particulars relating to energy conservation, technology absorption,
 foreign exchange earnings and outgo, as required to be disclosed under
 Section 217(1)(e) of the Companies Act, 1956 read with the Companies
 (Disclosure of Particulars in the Report of Board of Directors) Rules,
 1988 are provided as Annexure B” to this Report.
 
 ACKNOWLEDGEMENT AND APPRECIATION
 
 Your Directors would like to express their appreciation for the
 assistance, support and co-operation received from the financial
 institutions, banks, Government authorities, customers, vendors and
 members during the year under review. Your Directors also wish to place
 on record their deep sense of appreciation for the committed services
 by the executives, staff and workers of the Company globally.
 
 For and on behalf of the Board
 
 P.K. Khurana
 
 Chairman & Managing Director
 
 Mumbai
 
 27th May, 2011