YEAR                                                                  
      EVENTS
 1995 - The company was incorporated and the manufacturing operations
 are considered
               only for one day.
 
 1996 -  The 'Scheme of Arrangement' entered between the Company and
 'The K.C.P.Ltd' was
               approved by the Hon'ble High Court of Madras vide their
 order dated 18th March,
                whereby the following units of 'The K.C.P. Limited'
 stands transferred and vested in
                the company from the Effective Date viz., 1st April.
 
             - One equity share in the Company of Rs.10/- each
 credited as fully paid up for every two
               equity shares of Rs.10/- each fully paid up held by
 such members in 'The K.C.P. Ltd.' and
               all the Shareholders in 'The K.C.P. Ltd'  will be
 issued share certificates in the Company.
               On completion of the related formalities, the said
 shares of the company will be listed on
               the Chennai and Hyderabad Stock Exchanges.
 
             - Shri. V.M. Rao, Chief Promoter Director of the Company
 has been appointed as the
               Chairman and Managing Director for a period of five
 years from 2nd April, 1996 to 1st April,
                2001 on a remuneration which is within the limits of
 Schedule II of the Companies Act, 1956.
 
             - The Company is setting up a Bio technology Institute at
 Vuyyuru for increasing the yield
                in sugarcane.
 
            - The first Directors of the Company Shri. V.M. Rao, Smt.
 V.P. Durgamba and Smt. Rajeswary
               Ramakrishnan retire at the ensuing Annual General
 Meeting in terms of Article 119 of the Articles
               of Association of the Company and being eligible offer
 themselves for reappointment.
 
 1997 - The Board of Directors also wish to inform that the Company
 has entered into
              seperate Memorandum of Understanding with Central
 Electronics Engineering Research
              Institute (CEERI), Pilani, Indian Institute of Science,
 Bangalore and National Remote
              Sensing Agency, Hyderabad for various R & D activities.
 
           - The Company issued/allotted the shares pursuant to the
 Scheme of Arrangement
              approved by the Hon'ble High Court of Madras on 18th
 August 1996 and share
              certificates are being issued to the Shareholders who
 have surrendered the old
              certificates to 'The K.C.P. Ltd'.
 
           - The fully owned Subsidiary 'The Eimco-K.C.P. Ltd' was
 awarded 'ISO 9001' in February,
              by Lloyds Registrar Quality Assurance for design,
 manufacture and service of chemical
              process equipment covering solid liquid separation
 technology.
 
            - During the period under review, the Company has
 introduced 'Voluntary Retirement
              Scheme' at Vuyyuru and 50 employees have opted for the
 same as on 31.03.97, towards
              which an amount of Rs.55.61 lakhs has been expended by
 the Company.
 
           - The Industrial relations, though quite congenial was
 affected on account of a strike called
              by a section of the workers on 27th March,  which ended
 on 6th April, '97. The strike did not
              disrupt manufacturing operations as the Company was able
 to effectively maintain the
              same level of production with Support from the loyal
 employees.
 
 1999 - The Company is exploring various avenues for venturing into
 downstream
               by products and further consolidation in the acetic
 acid and alcohol units.
 
            - During the year under review, the Company has promoted a
 Subsidiary Company,
               KCP Sugars Agricultural Research Farms Private Limited,
 primarily aimed at extensively
               carrying out research and development programmes on
 sugarcane and other agricultural
                produce.
 
 2000 - Ms. V. R. Durgamba, Director, has resigned and Ms. Irmgard
 Velagapudi has
              been co-opted as a director on the board.
 
           - The Equity Share Capital of the Company stood at
 Rs.12,89,30,160 and the Reserves
              and Surplus stood at Rs. 61,05,68,115/- as at 31st
 March.
 
            - The Company has completed the installation of the high
 pressure boilers and
               automation of some of the processes at both the Units. 
 In the coming year, expansion
               in the capacity of acetic acid unit from 3300 tpd to
 12500 tpd; setting up of a new industrial
               alcohol plant of 10000 kl, in addition to setting up of
 1 MW power plant from biogas are
               expected to be completed.
 
             - Shri. R.K. Talwar and Dr. N.B. Prasad retire by
 rotation and are eligible for reappointment.
 
 2006
 -Company has splits its Face value of Shares from Rs 10 to Re 1