To The Members
 
 The Directors are pleased to present Twenty Seventh Annual Report
 together with the Audited Accounts of the Company for the year ended
 31st March, 2011.
 
 Financial Results                                       (Rs.in lacs)
 
                                            Year ended     Year ended
                                            31.03.2011     31.03.2010
 
 Sales and other income                        185,992        141,290
 
 Profit/(loss) before                           10,538          7,391 
 depreciation, 
 exceptional item and
 tax
 
 Depreciation                                    6,862          5,907
 
 Exceptional item                                  Nil         (1,626)
 
 Profit/(loss) before tax                        3,676          3,110
 
 Provision/(credit) for tax                      1,114          1,110
 
 Net profit/(loss)                               2,562          2,000
 
 Profit/(loss) brought forward                  27,109         25,698
 
 Profit available for                           29,671         27,698 
 appropriation
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs.1.50 (Rupee
 One and paisa fifty only) per equity share.  The outgo on dividend will
 be Rs.486.09 lacs including tax on dividend.
 
 Performance
 
 During the year under review, performance of the Company has shown
 improvement consequent to the improvement in the overall economic
 situation worldwide.  The price of Glycols have started showing upward
 trend in the current year vis a vis last year. However, the prices of
 feedstock like molasses and alcohol have increased due to the
 Government decision to increase the use of Ethanol for blending in
 Petroleum. Keeping in mind the reduction in the prices of the Glycols
 in the year 2009- 10, Company had diversified towards production of
 high value added Ethylene Oxide Derivatives (EODs), which has provided
 better margins as compared to Glycols.
 
 Sales and other income for the year under review has been Rs.185,992
 Lacs compared to Rs.141,290 Lacs last year showing an increase by 32%
 vis a vis last year. Profit before depreciation, exceptional item and
 tax for the year has been Rs.10,538 Lacs as compared to Rs.7,391 Lacs
 last year showing an increase by 43%. The net profit after tax for the
 year has been Rs.2,562 Lacs as compared to net Profit of Rs.2,000 Lacs
 last year.
 
 The borrowing cost has increased to Rs.8,631 lacs as compared to
 Rs.6,009 lacs last year, due to increase in the borrowings as well as
 increase in the overall interest rates by all the banks. The Company
 has taken various steps to keep the borrowing cost under control by
 availing PCFC, Buyers credit and converting Rupee Loans into FCNRB
 Loans.
 
 During the year, your Company produced 76,364 MT of Glycols compared to
 47,865 MT last year. Ethylene Oxide Derivatives (EODs) production has
 been 106,927 MT compared to 97,803 MT last year.
 
 The Company has produced 37,280 KBL of Potable Alcohol and has produced
 664 lacs PET Bottle at Gorakhpur for the Potable Alcohol plant at
 Gorakhpur.
 
 Marketing
 
 The Company is the largest manufacturer of Bio-MEG in the world made
 out of agriculture feedstock i.e.  Molasses and Ethanol. Bio-MEG has an
 application, apart from other products, in PET bottles, which is used
 for packaging of beverage products. Sale of Glycols has been 77,572 MT
 compared to 43,677 MT last year.  The sale of Ethylene Oxide
 Derivatives (EODs) has been 108,585 MT compared to 97,254 MT last year.
 
 Exports
 
 During the year under review, your Company has achieved total export
 turnover of Rs.70,462 lacs as compared to Rs.41,068 lacs last year.
 Your Company expects reasonable growth in the overall export sales in
 the current year. Company has been granted `One Star Export House’
 status by Government of India, Office of the Jt. Director General of
 Foreign Trade.
 
 Natural gum
 
 During the year, your Company achieved total sales of Rs.6,488 lacs of
 the Natural Gum products out of which the export turnover was Rs.6,322
 lacs as compared to total sales of Rs.2,624 lacs last year out of which
 the export turnover was Rs.2,584 lacs. The Company has registered a
 growth of 147% in Natural Gum segment, due to high international
 quality standard. The Company is modifying its existing Guar Gum Plant
 to upgrade the quality of the product of first hydrating Guar going for
 Oil Field Industry.  The Company has enhanced the production capacity
 by 50% as against earlier capacity and is also further planning to
 increase capacity by end of August 2011 to cater to the growing
 international demand.
 
 Ethyl alcohol (potable) & extra natural alohol
 
 During the year, your Company registered total sales of Rs. 34,147 lacs
 compared to Rs.38,707 lacs last year in the Ethyl Alcohol (Potable) and
 Extra Natural Alcohol division. Efforts are being made to increase the
 sales of Ethyl Alcohol (Potable). Company has the most modern & largest
 captive distillery in Asia and is among few Companies in the country
 having license of operations in and sale of Country Liquor and Indian
 Made Foreign Liquor (IMFL) in the states of Uttar Pradesh and
 Uttarakhand.  During the year, IMFL brands of the Company have been
 supplied to Defence Forces Canteens (CSD). The Segment contributes
 around 19% in the total revenues of the Company.
 
 Ennature bio-pharma division (100% export oriented undertaking)
 
 Company has a 100% Export Oriented Unit (100% EOU) by the name of
 Ennature Bio-pharma division.  The Company has taken 47 acres land on
 lease from Uttarakhand government, where it is growing a wide variety
 of medicinal plants etc. It has also set up a Supercritical Fluid
 Extraction facility (SCFE) at Dehradun, which will be cGMP and HACCP
 compliant. The unit is Kosher certified and approved by Indian Food &
 Drug Authorities (FDA). SCFE at Dehradun has started production and is
 in process of stabilizing and developing various Phytopharmaceuticals
 and Nutraceuticals products. The unit has received accreditation from
 the Indian Spices Board and has been enrolled as members of Pharmexcil
 and Shellac Export Promotion Council. This unit will be used for
 extraction of Dietary Food supplements, Natural Colors, Health care
 fruits & vegetables, Herbal Extracts, Fruit flavors & fragrances &
 Spice flavors & extracts.  Future thrust is to become supplier of more
 refined natural active pharmaceutical ingredients (API) & intermediates
 to pharmaceutical & natural health product industries.  All these are
 very high value added products. Since this will be a 100% EOU, this
 diversification will provide tax benefit also. During the year, your
 Company registered total sale of Rs.1,538 lacs in the Ennature Bio
 Pharma Division.
 
 Industrial gases
 
 The Company has an Industrial Gases division producing Oxygen, Nitrogen
 and Argon with an overall capacity of
 13,460 NM3/h. During the year under review, Company produced
 approximately 641 lacs NM3 of Oxygen and 218 lacs NM3 of Nitrogen. Both
 Oxygen and Nitrogen were successfully marketed and also used for own
 requirement. Industrial gases division also produced 13 lacs NM3 of
 Argon.
 
 The Industrial Gases division has also produced food and industrial
 grade liquid Carbon Di-oxide (CO2) at Kashipur Plant having capacities
 of 160 MT/day each, to meet growing domestic market. Company has
 produced 46,102 MT of Carbon Di-oxide (CO2). During the year,
 Industrial Gases segment registered total sales of Rs.2,941 lacs
 compared to Rs. 2,330 lacs last year.
 
 Joint venture for private freight terminal (PFT)
 
 Our Company is setting up a Private Freight Terminal (PFT) under a
 joint venture with Fourcee Infrastructure Equipments Pvt. Ltd. as
 permitted vide Freight Marketing Circular No. 14 of 2010 dated
 31.05.2010, and Freight Marketing Circular No. 6 of 2011 dated
 21.06.2011 by the Indian Railways, for providing railways-based
 logistics services and other facilities at Kashipur, Uttarakhand, as
 provided under extant guidelines of the Indian Railways.  The facility
 would be adjacent to the existing plant of Company at Kashipur.
 
 The Parties have entered into a Memorandum of Understanding to
 co-operate and partner with each other for the purpose of setting-up,
 operating and managing the said Private Freight Terminal (PFT) in order
 to provide multi-modal logistics solutions to our Company and external
 customers and enhance its service delivery capacity. With the
 commissioning of this facility, logistics movement for both inbound and
 outbound cargo would become more dependable, reliable, economical,
 would also ensure on-time delivery of goods and enable better inventory
 management.
 
 Expansion / modernisation / diversification plans
 
 The Company is actively pursuing growth opportunities and looking at
 areas to reduce its cost of production.  The Company is evaluating
 plans to further expand its Ethoxylates capacity to improve its product
 mix and also considering the setting up of a Power Plant to reduce its
 dependence on external power. In addition, the Company is actively
 pursuing expansion opportunities for its business other than Chemicals.
 
 The Company is setting up 10 ton biomass/day capacity pilot plant to
 convert lignocellulosic agricultural waste
 biomass to ethanol by using the bench-scale process developed at
 DBT-ICT Centre for Energy Bio-Sciences, Mumbai. The pilot plant will
 use agricultural non-fodder lignocellulosic waste (i.e. Rice straw,
 Wheat straw & Bagasse) as feedstock to manufacture ethanol.  The plant
 will aim at solving technical roadblocks in lignocellulosic ethanol
 technology in order to improve the overall situation with regard to
 alcohol availability.  The plant is being set-up with the Department of
 Bio- Technology aid/loan.
 
 Finance
 
 During the year under review, Company has raised Rupee Term Loans of
 Rs.3,170 million. The Company has repaid total loans of Rs.2,010
 million, out of which Company repaid Rupee Term Loan of Rs.1513 million
 and Foreign Currency Loans of US$ 7.61 million and JPY 276.25 million
 equivalents to Rs. 497 million.
 
 The Company has been regular in meeting its obligations towards payment
 of principal/interest to Financial Institutions / Banks /
 Debentureholders / Fixed Deposit holders.
 
 Listing of securities
 
 The shares of the Company shall continue to be traded at the Bombay
 Stock Exchange and the National Stock Exchange.
 
 Subsidiary companies
 
 The Company is having controlling stake in Shakumbari Sugar & Allied
 Industries Limited (SSAIL), which operates a sugar manufacturing plant
 in the state of Uttar Pradesh with a crushing capacity of 5500 tones
 per day (TCD) alongwith a modern distillery of 40 KL per day (KLPD)
 producing high quality rectified spirit, ethanol and country liquor and
 an internal bagasse fired co-generation plant of 11.4 MW catering to
 the captive power needs of the sugar and distillery units.
 
 The Company has completed first phase of expansion plan and the
 capacity of sugar manufacturing plant has been enhanced from 3200 TCD
 to 5500 TCD and co- generation plant capacity has been enhanced from 3
 MW to 10.4 MW of power generation.
 
 Your Company has also established a subsidiary in Singapore to augment
 its activities in South Eastern region & help the marketing of products
 from Chemical Plant and Supercritical Fluid Extraction facility to
 large buyers in US, Europe and South East Asia.
 Your Company has three, wholly owned subsidiary companies, i.e.
 Shakumbari Sugar & Allied Industries Limited (SSAIL), IGL Finance
 Limited and IGL CHEM International Pte. Ltd. The Ministry of Corporate
 Affairs, Government of India, vide General Circular dated 8th February
 2011 and 21st February 2011 has granted a general exemption from
 compliance with section 212 of the Companies Act, 1956, subject to
 fulfillment of conditions stipulated in the circular for non-inclusion
 of Subsidiary Companies’ Annual Report with the Annual Report of the
 Holding Company. The Company has satisfied the conditions stipulated in
 the circular and hence have availed the exemption. Necessary
 information relating to the subsidiaries has been included in the
 Consolidated Financial Statements.
 
 The Company undertakes that annual accounts of the subsidiary companies
 and the related detailed information shall be made available to
 shareholders of the Company and subsidiary companies seeking such
 information at any point of time. The annual accounts of the subsidiary
 companies shall also be kept for inspection by any shareholders in the
 head office of the company and of the subsidiary companies concerned.
 The Company shall furnish a hard copy of details of accounts of
 subsidiaries to any shareholder on demand.
 
 Fixed deposit
 
 The amount of Fixed Deposit held as on 31st March, 2011 was Rs.179.68
 lacs. There are no overdue deposits except unclaimed deposits amounting
 to Rs.46.90 lacs.
 
 Directors
 
 Shri Pradip Kumar Khaitan, Shri Ravi Jhunjhunwala and Shri U.S Bhartia,
 Directors of the Company, retiring by rotation and being eligible,
 offer themselves for reappointment. Your Directors recommend the
 reappointment of retiring Directors for your approval.
 
 During the year under review, the Board of Directors has appointed Shri
 Jitender Balakrishnan as Additional Director of the Company, who will
 hold the office till ensuing Annual General Meeting of the Company. The
 Board has recommended the appointment of Shri Jitender Balakrishnan as
 Director of the Company, whose period of office shall be liable to
 determination for retirement by rotation.
 
 Directors'' responsibility statement
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
 confirm that:
 
 - in the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 - appropriate accounting policies have been selected and applied
 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 at the end of the financial year ended 31st March, 2011 and
 of the profit and loss account of the Company for that period;
 
 - proper and sufficient care has been taken 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;
 
 - the annual accounts have been prepared on a going concern basis.
 
 Management discussion and analysis
 
 A separate report is appended herewith.
 
 Corporate governance
 
 The Board of Directors supports the broad principles of Corporate
 Governance. The report on Corporate Governance as stipulated in clause
 49, as amended, of the listing agreement with the stock exchanges for
 the year ended 31st March, 2011 and Auditor’s Certificate on Corporate
 Governance are appended herewith.
 
 Auditors
 
 The Auditors, M/s. Lodha & Co., Chartered Accountants, retiring at the
 ensuing Annual General Meeting and offer themselves for reappointment.
 They have confirmed that they are eligible under Section 224(1B) of the
 Companies Act, 1956 for reappointment.
 
 Environment, energy conservation, technology absorption, etc.
 
 The Company is working actively on various projects efficiently,
 approaching and targeting towards Clean Development Mechanism (CDM) and
 reduction in GHG emissions.
 
 The Company has installed distillery effluent Evaporators at Gorakhpur
 and the concentrated effluent is burnt in specially designed boiler,
 the calorific value of concentrated effluent generates super heated
 steam which is utilized for power generation. In the same way, your
 company has installed distillery evaporator at Kashipur Plant alongwith
 Boiler and the same superheated steam produced will generate power in
 8.64 MW Turbo generator. The power will be utilized for plant operation
 as essential power which is being generated by DG set and back pressure
 steam will be utilized for plant operation.
 
 The Biomass based Cogeneration Project activity taken up bythe Company
 at its Gorakhpur, U.P plant is successfully registered under Clean
 Development Mechanism (CDM) project by United Nations Framework
 Convention on Climate Change (UNFCCC) having equivalent 110157 CERs
 (certified emission reduction) per annum for ten year fixed crediting
 period 16/12/2010 to 15/12/2020.  Under the Clean Development
 Mechanism, emission- reduction (or emission removal) projects in
 developing countries can earn certified emission reduction credits.
 These saleable credits can be used by industrialized countries to meet
 a part of their emission reduction targets under the Kyoto Protocol.
 
 In accordance with the provisions of Section 217(1)(e) of the Companies
 Act, 1956 and the Companies (Disclosure of particulars in the Report of
 Board of Directors) Rules, 1988 the required information relating to
 “Conservation of Energy, Technology Absorption and Foreign Exchange
 earnings and outgo” is annexed hereto and forms part of this Report.
 
 Human resources
 
 Your Directors wish to place on record their deep appreciation to
 employees at all levels for their all-round efforts, dedication,
 commitment and loyal services which helped in achieving satisfactory
 performance during the year.
 
 The required information as per Section 217(2A) of the Companies Act,
 1956 read with Companies (Particular of Employees) Rules, 1975, forms
 part of this report.  However, as per the provisions of Section
 219(1)(b) (iv) of the Companies Act, 1956, the report and accounts are
 being sent to all shareholders of the Company excluding the Statement
 of particulars of Employees under Section 217(2A) of the Act. Any
 shareholder interested in obtaining a copy of the said statement may
 write to the Company Secretary at Head Office of the Company.
 
 Social responsibility
 
 Good governance demands adherence of social responsibility coupled with
 creation of value in the larger interest of the general public. Your
 Company, Directors and its dedicated employees continue to contribute
 towards society by several worthwhile causes.  Your Company aims to
 enhance the quality of life of the community in general and has a
 strong sense of social responsibility.
 
 The range of our activities begins in and around Kashipur (Uttarakhand)
 by organizing regular Medical camps (three days a week) so that
 villagers get medical assistance free of cost and also active
 participation in organizing blood donation camps, facilitating
 plantation of trees for better environment, facilitating in
 constructing roads, bridges, drains and installing street lamps ,
 promoting schools in vicinity (Ajay Bhartia Saraswati Shisumandir Jr
 High School Kashipur), providing furniture and other infrastructure
 facilities to nearby school (Barkhedi ) and hand pumps for drinking
 water, which is benefiting nearby areas. The Company also extends
 support to the victims of flood affected during Monsoon, distributing
 of blankets to poor during winter, promoting Sports and socio-cultural
 activities in the State of Uttarakhand, supporting the local
 administration in fighting and managing fire accidents and other
 disasters taking place in the close by areas of factory and other noble
 works in the surrounding area of factory.
 
 Your Company is supporting a community school at Dwarka, New Delhi
 through Nirmal Bhartia Society for Education Promotion, and a
 charitable institution by making grants, School is now operational. The
 school is equipped with modern facilities and also has a good
 infrastructure. The school possess qualified and experienced faculties,
 which enable children to make a great future.
 
 Your Company extending educational and on-job training to the students
 of many professional Institutions and the professionals of many other
 Management and Engineering Institutions, which helps them to start a
 new beginning for their future professional career.
 
 At the end your Directors constantly strive hard to serve the society
 by implementing such other policies which benefited people at large.
 
 Acknowledgment
 
 Your Directors place on record their deep appreciation of the support
 given by the Central Government, States of Uttarakhand and Uttar
 Pradesh, Financial Institutions and banks and looks forward to their
 continued support.
 
 
                                       for and on behalf of the Board
 
                                                         U.S. Bhartia 
                                       Chairman and Managing Director
 
 Place : NOIDA,U.P 
 Dated : 16th July,2011