The Directors of your Company present its 37th Annual Report on the
 functioning of the Company together with the Profit and Loss Account
 for the year ended 31st March 2012 and the Balance Sheet
 as at that date together with the Auditor''s Report there on.
 
 Financial Results:
 
                                       Current year      Previous Year
                                         31.03.2012         31.03.2011
                                       (Rs.in Lakhs)      (Rs.in Lakhs)
 
 Gross Profit / (Loss)                     452.16            428.38
 
 Depreciation                              358.74            323.37
 
 Profit / (Loss) before Tax                 93.42            105.01
 
 Provision for Income Tax                    7.20             21.00
 
 Provision for Fringe Benefit Tax               -                 -
 
 Provision/ Release of Deferred Tax          7.48             21.00 
 
 Net Profit for the year                    78.74             63.01
 
 Balance brought forward from
 the earlier year                          286.69            309.89
 
                                           365.43            372.90
 
 During the financial year 2011-12, despite the power crisis and
 increased business competition, your company was able to attain
 reasonable profit levels and register a net profit of Rs. 78.74 lakhs
 as compared to profit of Rs. 63.01 lakhs in the previous year.  ,
 
 Business Operations: 
 
 Industrial Gases
 
 The order book position is comfortable since the Company was able to
 tie up long term contracts with the customers. The newly erected plant
 at Pondicherry had performed well and was able to reach optimum
 production levels but for the difficulty in the power front. The
 proposed plant under implementation in Perundurai, Erode District, is
 expected to commence production during second half of 2012-13.  ''
 
 Windmill: 
 
 The Power generation is normal and we expect the generation of power
 will improve in the coming months.
 
 Dividend:
 
 The Board of Directors in their meeting held on 3rd May, 2012 had
 declared an Interim dividend of 10% (Re 1 per equity share of Rs 10/-
 each fully paid up) for the year ended 31st March 2012 on the paid up
 capital of the Company aggregating to Rs. 31,16,550 which was paid to
 those shareholders whose /lames appeared in the Register of Members as
 at the closing hours of business on 12th May 2012. your Board of
 Directors wish to recommend the same for confirmation as final
 dividend, by the shareholders at the ensuing Annual General Meeting.
 
 Directors:
 
 Mr Anil Kumar Seth and Mr P Siva are retiring at this meeting by
 rotation and being eligible, offer themselves for reappointment. .
 
 Rights Issue:
 
 The Company received the required minimum subscription of 90 percent of
 the issue size by the closure of the issue.
 
 Out of the above issue, the Company has allotted 16,85,721 equity
 shares to the existing shareholders and the Company has also obtained
 the Listing/ trading approval from the Bombay Stock Exchange and the
 Madras Stock Exchange.
 
 The Board of Directors is proposing to utilize the proceeds of the
 rights issue towards setting up of a new plant in Perundurai, Erode
 District, Tamil Nadu.
 
 The Board, further, thank all the shareholders for making the issue
 success.
 
 Fixed Deposits:
 
 The Company has not accepted any fixed deposits during the year.
 
 Particulars of Employees and Labour Relations:
 
 None of the employees fall under the category specified under Sec.217
 (2A)of the Companies Act, 1956 and the Rules there under.
 
 The relations with the employees during the year had been smooth and
 cordial.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 inflow & Outgo:
 
 Prescribed particulars under Section 217(1 )(e) of the Companies Act,
 1956 are furnished as Annexure-A to this Report.
 
 Director''s Responsibility Statement:
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, your Directors confirm that '' -
 
 - in the preparation of the annual accounts for the financial year
 ended 31st March 2012, the applicable accounting standards have been
 followed along with proper explanation related to material departures,
 if any.
 
 - they 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 on 31st March, 2012 and of the profit and loss 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 are prepared on a going concern basis.
 
 Corporate Governance:
 
 As a listed Company, necessary measures are taken to comply with the
 listing agreements with stock exchanges. A Report on Corporate
 Governance, along with certificate of Compliance from the Practising
 Company Secretary forms Annexure-B to this report.
 
 Management Discussion and Analysis Report:
 
 A Management Discussion and Analysis Report is given as Annexure C to
 this report.
 
 Auditors:
 
 Messrs. Singhi & Co., Chartered Accountants, retire at this meeting and
 being eligible are proposed for reappointment. They also expressed
 their willingness to continue in office if reappointed, at the ensuing
 annual general meeting.
 
 Compliance Certificate:
 
 In accordance with Section 383Aof the Companies Act, 1956, and
 Companies (Certificate) Rules, 2001, the company has obtained a
 certificate from M/s. Lakshmmi Subramanian & Associates, Chennai,
 Secretary in whole time practice confirming that the company has
 complied with all the provisions of Companies Act, 1956 and a copy of
 such certificate is annexed to the report.
 
 Cost Audit Compliance Certificate:
 
 Our Company has obtained the Cost Audit Compliance Certificate for the
 period ended 31st March, 2012 issued by M/s Sivasubramaniart & Co.,
 Cost Accountant and the same shall be filed with MCA.
 
 Acknowledgement:
 
 Your Directors take this opportunity to place on record their
 appreciation of the continued support and Co-operation from Punjab
 National Bank and HDFC Bank Limited.
 
 Your Directors also wish to convey their thanks to all the valued
 customers and the valuable services rendered by the Officers, Staff and
 Workers at all levels.
 
                                      For and on behalf of the Board
 
 Place: Chennai                               G.N.Saraf
 
 Date : 03.09.2012                    Chairman and Managing Director