1.  Loan Funds:
 
 (a) External Commercial Borrowing from DBS Bank is secured by first
 charge on the specific fixed assets of the Kandla SEZ.
 
 (b) Working Capital facilities are secured against hypothecation of
 stocks and book debts of the Company and further secured by way of
 second charge on all the fixed assets (excluding specific fixed assets)
 of the Company. The borrowings are guaranteed by Directors and their
 relatives.
 
 2.  Contingent liabilities not             As at        As at 
 provided for in respect of:            31.03.2011   31.03.2010
                                      (Rs. in Lac)   (Rs. in Lac)
 
 (a) Disputed Tax and other Matters
 
 Income Tax                                 21.14           –
 
 Sales Tax                                 114.82           –
 
 Lease Tax                                  16.34       16.34
 
 Claims not acknowledged
 
 as debts                                       –        1.74
 
 The Company has taken legal and other steps necessary to protect its
 position in respect of these claims, which in its opinion, based on
 professional advice are not expected to devolve. It is not possible to
 make any further determination of the liabilities which may arise or
 the amounts which may be refundable in this respect.
 
 (b) Corporate Guarantees given on 
 behalf of subsidiaries and
 step down subsidiaries                 34,380.50   36,112.00
 
 (Amounts outstanding
 there against)                         10,848.92   19,247.55
 
 3.  (a) Sundry Creditors in Schedule  L to the Accounts include (i)
 Rs. 16.77 Lac (Rs. 36.31 Lac as at 31.03.2010) due to micro and small
 enterprises registered under the Micro, Small and Medium Enterprises
 Development Act, 2006 (MSME) and (ii) Rs. 6,232.34 Lac (Rs. 9,226.86
 Lac as at 31.03.2010) due to other creditors.
 
 (b) No interest is paid / payable during the year to any enterprise
 registered under MSME.
 
 (c) The above information has been determined to the extent such
 parties could be identified on the basis of the information available
 with the Company regarding the status of suppliers under the MSME.
 
 4. During an earlier year, the Company had raised a sum of USD 35
 Million by issue of Zero Coupon Foreign Currency Convertible Bonds
 (FCCB) which is due in 2012. The principal terms of the FCCBs are given
 below:
 
 (i) The bond holders can exercise the option to convert into equity
 shares at any time after 41 days from the date of issue, upto seven
 days prior to maturity, at a fixed conversion price of Rs. 303.36 per
 share with a fixed rate of Rs. 39.84 to USD 1 (i.e. a conversion ratio
 of 13,133.1279 shares per bond).
 
 (ii) On expiry of one year from the date of issue of the bonds, i.e. on
 9th October, 2008, the conversion price has been reset to Rs. 271.32
 (i.e. a conversion ratio of 14,684.0103 shares per bond).
 
 (iii) The Company may opt for early redemption of the bonds at a
 redemption premium that gives the bond holder a gross yield of 7.25%
 per annum (compounded half yearly), provided bonds outstanding are less
 than 10 per cent of the bonds originally issued.
 
 (iv) The Company may at its absolute discretion, at any time on or
 after 3 years from the date of issue of bonds, convert all outstanding
 bonds, provided the closing price of shares, during the specified
 period, is at least 130 per cent of the applicable early redemption
 amount.
 
 (v) Bonds outstanding on the maturity date will be redeemed at
 142.8010% of the principal amount.
 
 Due to variables currently indeterminable, the premium on actual
 redemption is not computable and hence will be recognised if and as and
 when the redemption option is exercised. Such premium shall be first
 charged to the available balance in securities premium account.
 
 5.  Related parties disclosures: 1.  Relationships:
 
 (a) Subsidiary Companies:
 
 EKC Industries (Tianjin) Co. Ltd., China 
 
 EKC International FZE, UAE 
 
 EKC Industries (Thailand) Co. Ltd., Thailand 
 
 Calcutta Compressions & Liquefaction Engineering Ltd. (CC&L)
 
 (b) Step Down Subsidiary Companies:
 
 EKC Hungary Kft, Hungary
 
 CP Industries Holdings, Inc., USA
 
 (c) Other related parties where control exists:
 
 Everest Kanto Investment and Finance Private Limited
 
 Khurana Gases Private Limited
 
 Medical Engineers (India) Limited
 
 Khurana Fabrication Industries Private Limited
 
 Khurana Exports Private Limited
 
 Everest Industrial Gases Private Limited
 
 Khurana Charitable Trust
 
 Khurana Education Trust
 
 G.N.M. Realtors Private Limited
 
 Ukay Valves & Founders Private Limited
 
 (d) Key Management Personnel:
 
 Mr. Prem Kumar Khurana
 
 Mr. Puneet Khurana
 
 Mr. Pramod Samvatsar
 
 (e) Relatives of Key management personnel and their enterprises, where
 transactions have taken place: 
 
 Mr. S.S. Khurana
 
 Mrs. Suman Khurana 
 
 Note: Related party relationship is as identified by the Company and
 relied upon by the Auditors.
 
 6.  Bonds / Undertakings given by the Company under concessional duty
 / exemption schemes to government authorities (net of obligations
 fulfilled) aggregate Rs. 2,045.47 Lac as at the close of the year
 (31.03.2010 Rs. 5,874.44 Lac).
 
 7.  In accordance with Accounting Standard (AS) 15 - Employee
 Benefits, an amount of Rs. 126.42 Lac (Previous Year Rs. 99.53 Lac) as
 contribution towards defined contribution plans is recognised as
 expense in the Profit and Loss Account.
 
 8.  In accordance with Accounting Standard – 17 Segment Reporting
 segment information has been given in the consolidated financial
 statements of the Company and therefore, no separate disclosure on
 Segment information is given in these financial statements.
 
 9.  Considering foreign exchange exposures and the volatility in
 exchange rates, mark to market losses during the year on outstanding
 foreign currency derivative contracts to hedge highly probable forecast
 transactions have been charged to the Profit and Loss Account,
 discontinuing the Hedge Accounting principles followed upto 31st March,
 2010.  Accordingly, debit balance in the Hedging Reserve, as at 31st
 March, 2011, representing mark to market losses, considered as probable
 hedge transactions as at 31st March, 2010, contracts of which are
 maturing upto December, 2012, stands at Rs. 365.43 Lac.
 
 10.  The Company has an investment of Rs. 200 Lac in 2,000,000 Equity
 Shares of GPT Steel Industries Private Limited (GPT).  As per the
 latest audited financial statements of GPT, the networth has fully
 eroded. The Company has during the year made an assessment and has
 accordingly provided for diminution in value of investments made in
 GPT.
 
 11.  The Company has investments of Rs. 238.88 Lac in and loans and
 other receivables aggregating Rs. 853.34 Lac recoverable from Calcutta
 Compressions & Liquefaction Engineering Limited (CC&L), a subsidiary
 with a majority stake. The networth of CC&L has fully eroded mainly on
 account of pre-operating losses. In the opinion of the management,
 after considering the projected earnings and cash flows of CC&L, the
 improvements in its operational performance during the last quarter of
 the current financial year and the intention to hold this investment on
 a long term and strategic basis, no provision for diminution in the
 value of investment or for losses on account of loans and other
 receivables is considered necessary, at present.
 
 12.  As a part of its global expansion plans, the Company has formed a
 wholly owned subsidiary in Thailand viz., EKC Industries (Thailand)
 Company Limited on 7th October, 2010.  The said Company will cater to
 the needs of Thailand market, since Thailand is promoting Natural Gas
 Vehicles in a big way.
 
 13.  The Company, during Financial Year 2009 - 2010, changed its method
 of providing for depreciation on fixed assets, from Written Down Value
 Method (WDV) to Straight Line Method (SLM). Accordingly, depreciation
 was recalculated in accordance with SLM from the date the assets were
 put to use and surplus of Rs. 1,986.69 Lac (net of tax) in respect of
 earlier years was credited to the Profit and Loss Account.
 
 14.  With a view to consolidate and promote synergy amongst similar
 facilities and effective utilisation of the manufacturing facilities,
 it was considered prudent to shift the entire activities of Aurangabad
 plant to larger unit located at Gandhidham, during the quarter ended
 31st December, 2010.
 
 15.  Previous year figures have been regrouped / recast wherever
 necessary.