<PAGE>   1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                              ACT OF 1934 $ 250.00

                   For the fiscal year ended December 31, 1995

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                          ACT OF 1934 [NO FEE REQUIRED]

        For the transition period from               to               .

                         Commission file number 0-19770

                            IEA INCOME FUND XI, L.P.
             (Exact name of registrant as specified in its charter)

          California                                     94-3122430
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

         444 Market Street, 15th Floor, San Francisco, California 94111
         (Address of principal executive offices)            (Zip Code)

        Registrant's telephone number, including area code (415) 677-8990

          Securities registered pursuant to Section 12(b) of the Act:

<TABLE>
<CAPTION>
                                                     Name of each exchange on
           Title of each class                           which registered
           -------------------                       ------------------------
           <S>                                       <C>
              Not Applicable
</TABLE>

           Securities registered pursuant to Section 12(g) of the Act:

                     UNITS OF LIMITED PARTNERSHIP INTERESTS
                                (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports, and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No   .
                                      ---    ---

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (sec.229.405 of this chapter) is not contained herein, and 
will not be contained, to the best of registrant's knowledge, in definitive 
proxy or information statements incorporated by reference in Part III of this 
Form 10-K or any amendment to this Form 10-K. [X]

The aggregate market value of the voting stock held by non-affiliates of the
registrant is not applicable.

                       Documents Incorporated by Reference
PART I
Item 1 - Business            Prospectus of IEA Income Fund XI, L.P.,
                             dated December 14, 1990 included as part of
                             Registration Statement on Form S-1 (No.
                             33-36701)

                             Certificate of Limited Partnership of IEA
                             Income Fund XI, L.P., filed as Exhibit 3.2
                             to the Registration Statement on Form S-1
                             (No. 33-36701)

                             Form of Leasing Agent Agreement with LPI
                             Leasing Partners International N.V., filed
                             as Exhibit 10.2 to the Registration
                             Statement on Form S-1 (No. 33-36701)
<PAGE>   2
                         PART I - FINANCIAL INFORMATION


Item 1.  Business

     (a)  General Development of Business

     The Registrant is a limited partnership organized under the laws of the
State of California on July 30, 1990, for the purpose of owning and leasing
marine cargo containers, special purpose containers and container related
equipment to unaffiliated third-party lessees. The Registrant was initially
capitalized with $100, and commenced offering its limited partnership interests
to the public subsequent to December 14, 1990, pursuant to its Registration
Statement on Form S-1 (File No. 33-36701). The offering terminated on November
30, 1991.

     The Registrant raised $39,996,240 in subscription proceeds. The following
table sets forth the use of said subscription proceeds:

<TABLE>
<CAPTION>
                                                                           Percentage of
                                                            Amount        Gross Proceeds
                                                            ------        --------------
         <S>                                              <C>             <C>
         Gross Subscription Proceeds                      $39,996,240         100.0%

         Public Offering Expenses:
             Underwriting Commissions                     $ 3,999,634          10.0%
             Offering and Organization Expenses           $   703,234           1.7%
                                                          -----------         -----

             Total Public Offering Expenses               $ 4,702,868          11.7%
                                                          -----------         -----

         Net Proceeds                                     $35,293,372          88.3%

         Acquisition Fees                                 $   345,466           0.9%

         Working Capital Reserve                          $   401,330           1.0%
                                                          -----------         -----

         Gross Proceeds Invested in Equipment             $34,546,576          86.4%
                                                          ===========         =====
</TABLE>

                                        2
<PAGE>   3
     The general partner of the Registrant is Cronos Capital Corp. ("CCC"), a
wholly-owned subsidiary of Cronos Holdings/Investments (U.S.), Inc., a Delaware
corporation, which is in turn a wholly-owned subsidiary of Cronos Investments
B.V., a Dutch company. These and other affiliated companies are ultimately
wholly-owned by The Cronos Group, a holding company registered in Luxembourg
("Holding Company") and are collectively referred to as the "Group". The
activities of the container division of the Group are managed through the
Group's subsidiary in the United Kingdom, Cronos Containers Limited ("the
Leasing Company"). The Leasing Company manages the leasing operations of all
equipment owned or managed by the Group on its own behalf or on behalf of
third-party container owners, including all other programs organized by CCC.

     On January 1, 1991, Cronos Containers N.V., (formerly LPI Leasing Partners
International N.V.) entered into a Leasing Agent agreement with the Registrant
assuming the responsibility for all container leasing activities. On January 1,
1992, Cronos Containers N.V. entered into an Assignment of Leasing Agent
Agreement, whereby, Cronos Containers N.V. assigned and transferred to the
Leasing Company all of its rights, responsibilities and duties concerning the
Registrant's container leasing activities.

     For information concerning the containers acquired by the Registrant, see
Item 2, "Properties."

     (b) Financial Information About Industry Segments

     Inapplicable.

     (c) Narrative Description of Business

     (c)(1)(i) A marine cargo container is a reusable metal container designed
for the efficient carriage of cargo with a minimum of exposure to loss from
damage or theft. Containers are manufactured to conform to worldwide standards
of container dimensions and container ship fittings adopted by the International
Standards Organization ("ISO") in 1968. The standard container is either 20'
long x 8' wide x 8'6" high (one twenty-foot equivalent unit ("TEU"), the
standard unit of physical measurement in the container industry) or 40' long x
8' wide x 8'6" high (two TEU). Standardization of the construction, maintenance
and handling of containers allows containers to be picked up, dropped off,
stored and repaired effectively throughout the world. This standardization is
the foundation on which the container industry has developed.

     Standard dry cargo containers are rectangular boxes with no moving parts,
other than doors, and are typically made of steel. They are constructed to carry
a wide variety of cargos ranging from heavy industrial raw materials to
light-weight finished goods. Specialized containers include, among others,
refrigerated containers for the transport of temperature-sensitive goods and
tank containers for the carriage of liquid cargo. Dry cargo containers
constitute approximately 85% of the worldwide container fleet. Refrigerated and
tank containers constitute approximately 7% of the worldwide container fleet,
with open-tops and other specialized containers constituting the remainder.

     One of the primary benefits of containerization has been the ability of the
shipping industry to effectively lower freight rates due to the efficiencies
created by standardized intermodal containers. Containers can be handled much
more efficiently than loose cargo and are typically shipped via several modes of
transportation, including truck, railway and ship. Containers require loading
and unloading only once and remain sealed until arrival at the final
destination, significantly reducing transport time, labor and handling costs and
losses due to damage and theft. Efficient movement of containerized cargo
between ship and shore reduces the amount of time that a ship must spend in port
and reduces the transit time of freight moves.

     The logistical advantages and reduced freight rates brought about by
containerization have been a major catalyst for world trade growth during the
last twenty-five years, which in turn has generated increased demand for
containerization. The world container fleet has grown from an estimated 270,000
TEU in 1969 to 9,198,000 TEU at the end of 1995, and according to recent
industry data, growth of containerized shipping since 1987 has generally
averaged two to three times that of average GDP growth in industrialized
countries.

                                       3
<PAGE>   4
     The Registrant believes that growth of containerization will continue to
outpace GDP growth and the growth in world trade over the next five years for
the following reasons:

     -    Lower freight rates resulting from containerization are generating new
          cargos that previously were not economical to export. Containerization
          provides inexpensive, timely and secure transport to manufacturers
          allowing them to take advantage of regional opportunities in
          technology or labor, and to move products to different locations at
          various stages of production;

     -    Intermodal traffic is expected to continue to grow, and industrialized
          countries are continuing to improve intermodal infrastructure (i.e.,
          railways, roads and ports);

     -    Shippers continue to demand transportation of cargo by containers
          rather than break-bulk;

     -    Countries with rapidly-growing economies in emerging markets are
          continuing to build new container port facilities that accommodate an
          increased flow of containerized trade; and

     -    Recent trade agreements, such as the North American Free Trade
          Agreement ("NAFTA") and the General Agreement on Tariffs and Trade
          ("GATT"), should further stimulate world trade, and, therefore
          containerized trade.

     The container leasing industry has been a significant contributor to the
growth of containerization, and, in 1995, had an approximately 47% share of the
total world container fleet with ocean carriers holding most of the remainder.
To an ocean carrier, the primary benefits of leasing rather than owning
containers are the following:

     -    Reduced Capital Expenditures. Leasing is an attractive option to ocean
          carriers because ownership of containers requires significant capital
          expenditures. Carriers constantly evaluate their investment strategy,
          with container purchasing competing directly with other expenditure
          requirements, such as ship purchases, ship conversions and terminal
          improvements. Container leasing allows ocean carriers to invest
          capital in assets that are more central to their business.

     -    Improved Asset Management. Trade flow imbalances and seasonal demands
          frequently leave ocean carriers with regional surpluses or shortages
          of containers, requiring costly repositioning of empty containers.
          Leasing companies help ocean carriers manage these trade imbalances by
          providing the inventory to service demand, reducing the costs of
          maintaining local inventories and minimizing repositioning expenses.
          By matching different carriers' container needs, leasing companies can
          reduce their own risks of container inventory imbalances and
          seasonality through a portfolio of lessees as well as variations in
          lease terms.

     -    Increased Container Fleet Flexibility. Ocean carriers benefit from the
          variety of lease types offered by leasing companies such as the master
          lease, long-term and short-term lease and direct financing lease.
          These various leases give ocean carriers flexibility in sizing their
          fleets while minimizing capital costs. For example, master lease
          agreements give ocean carriers the option of adjusting the size of
          their fleets, with the flexibility to pick-up and drop-off containers
          at various locations around the world.

     Dry cargo containers are the most-commonly used type of container in the
shipping industry. The Registrant's dry cargo container fleet is constructed of
all Corten(R) steel (Corten(R) roofs, walls, doors and undercarriage), a
high-tensile steel yielding greater damage and corrosion resistance than mild
steel.

     Refrigerated containers are used to transport temperature-sensitive
products such as meat, fruit, vegetables and photographic film. All of the
Registrant's refrigerated containers have high-grade stainless steel interiors.
The Registrant's 20-foot refrigerated containers have high-grade stainless steel
walls, while the Registrant's 40-foot refrigerated containers are steel framed
with aluminum outer walls to reduce weight. As with the dry cargo containers,
all refrigerated containers are designed to minimize repair and maintenance and
maximize damage resistance. The Registrant's refrigerated containers are
designed and manufactured to include the latest generation refrigeration
equipment, with modular microprocessors controlling and monitoring the
container.

                                       4
<PAGE>   5
     The Registrant's containers are leased primarily to ocean-going steamship
companies operating in major trade routes (see Item 1(d)). Most if not all of
the Registrant's marine dry cargo containers are leased pursuant to operating
leases, primarily master leases, where the containers are leased to the ocean
carrier on a daily basis for any desired length of time, with the flexibility of
picking up and dropping off containers at various agreed upon locations around
the world and, secondarily, term leases (1-5 years) and one-way or round-trip
leases. Special purpose containers acquired by the Registrant, including
refrigerated containers, are generally committed to term leases, where the high
cost of interchanging the higher value specialized container makes master lease
agreements less attractive to customers.

     Master lease agreements. A master lease is designed to provide greater
flexibility by allowing customers to pick-up and drop-off containers where and
when needed, subject to restrictions and availability, on pre-agreed terms. The
commercial terms of master leases are generally negotiated annually. Master
leases also define the number of containers that may be returned within each
calendar month and the return locations and applicable drop-off charges. Because
of the increased flexibility they offer, master leases usually command higher
per-diem rates and generate more ancillary fees (including pick-up, drop-off,
handling and off-hire fees) than term leases.

     Term lease agreements. Term lease agreements include short-term and
long-term leases. Long-term lease agreements define the number of containers to
be leased, the pick-up and drop-off locations, the applicable per-diem rate for
the duration of the lease and the early termination penalties that may apply in
the event of early redelivery. Ocean carriers use long-term leases when they
have a need for identified containers for a specified term. Long-term leases
usually are not terminated early by the customer and provide stable and
relatively predictable sources of revenue, although per-diem rates and ancillary
charges are lower under long-term leases than under master lease agreements.
Short-term lease agreements have a duration of less than one year and include
one-way, repositioning and round-trip leases. They differ from master leases in
that they define the number and the term of containers to be leased. Ocean
carriers use one-way leases to manage trade imbalances (where more containerized
cargo moves in one direction than another) by picking up a container in one port
and dropping it off at another after one or more legs of a voyage. Except for
direct financing leases, lease rates typically are highest for short-term
leases.

     Under these leases, customers are responsible for paying all taxes and
service charges arising from container use, maintaining the containers in good
and safe operating condition while on lease and paying for repairs upon
redelivery, other than ordinary wear and tear. Some leases provide for a "damage
protection plan" whereby lessees, for an additional payment (which may be in the
form of a higher per-diem rate), are relieved of the responsibility of paying
some of the repair costs upon redelivery of the containers. The Leasing Company
has historically provided this service on a limited basis to selected customers.
Repairs provided under such plans are carried out by the same depots, under the
same procedures, as are repairs to containers not covered by such plans.
Customers also are required to insure leased containers against physical damage
and loss, and against third party liability for loss, damage, bodily injury or
death.

     All containers are inspected and repaired when redelivered by a customer,
and customers are obligated to pay for all damage repair, excluding wear and
tear, according to standardized industry guidelines. Depots in major port areas
perform repair and maintenance which is verified by independent surveyors or the
Leasing Company's technical and operations staff.

     Before any repair or refurbishment is authorized on older containers in the
Registrant's fleet, the Leasing Company's technical and operations staff reviews
the age, condition and type of container and its suitability for continued
leasing. The Leasing Company compares the cost of such repair or refurbishment
with the prevailing market resale price that might be obtained for that
container and makes the appropriate decision whether to repair or sell the
container.

     The non-cancelable terms of the operating leases of the Registrant's
containers will not be sufficient to return to the Registrant as lessor the
purchase price of the equipment. In order to recover the original investment in
the equipment and achieve an adequate return thereon, it is necessary to renew
the lease, lease the equipment to another lessee at the end of the initial lease
term, or sell the equipment.

                                       5
<PAGE>   6
     The Registrant estimates that a dry cargo or refrigerated container may be
used as a leased marine cargo container for a period ranging from 10 to 15
years. The Registrant disposes of used containers in a worldwide market for used
containers in which buyers include wholesalers, mini-storage operators,
construction companies and others. The market for used refrigerated containers
is not as developed as the market for used dry cargo containers. Although a used
refrigerated container will command a higher price than a dry cargo container, a
dry cargo container will bring a higher percentage of its original price. As the
Registrant's fleet ages, a larger proportion of its revenues will be derived
from selling its containers.

     Of the 6,206 twenty-foot, 3,229 forty-foot and 198 forty-foot high-cube dry
cargo containers, 100 twenty-foot and 50 forty-foot refrigerated cargo
containers owned by the Registrant as of December 31, 1995, 5,195 twenty-foot
(or 84% thereof), 2,742 forty-foot (or 85% thereof) and 184 forty-foot high-cube
dry cargo containers (93% thereof), as well as 95 twenty-foot (or 95% thereof)
and 50 forty-foot refrigerated cargo containers (or 100% thereof) were on lease.
The following table sets forth the information on the lease terms with respect
to the containers on lease:

<TABLE>
<CAPTION>
                                                              Number of
                                                              Containers
                                                              ----------
         <S>                                                  <C>
         20-Foot Dry Cargo Containers:
             Term Leases                                           639
             Master Leases                                       4,556

         40-Foot Dry Cargo Containers:
             Term Leases                                           245
             Master Leases                                       2,497

         40-Foot High-Cube Dry Cargo Containers:
             Term Leases                                             5
             Master Leases                                         179

         20-Foot Refrigerated Cargo Containers:
             Term Leases                                            88
             Master Leases                                           7

         40-Foot Refrigerated Cargo Containers:
             Term Leases                                            47
             Master Leases                                           3
</TABLE>

     The Leasing Company will make payments to the Registrant based upon rentals
collected from ocean carriers after deducting certain operating expenses
associated with the containers, such as the base management fee payable to the
Leasing Company, certain expense reimbursements to CCC, the Leasing Company, and
its affiliates, the costs of maintenance and repairs not performed by lessees,
independent agent fees and expenses, depot expenses for handling, inspection and
storage, and additional insurance.

     The Registrant's sales and marketing operations are conducted through the
Leasing Company, in the United Kingdom, with support provided by area offices
and dedicated agents located in San Francisco, California; Iselin, New Jersey;
Windsor, England; Hamburg; Antwerp; Auckland; Genoa; Singapore; Hong Kong;
Sydney; Tokyo; Taipei; Seoul; Rio de Janeiro; and Shanghai. Each of the Leasing
Company's area offices and dedicated agents is staffed with local people
familiar with the customers and language of the region. The Leasing Company's
marketing directors have been employed in the container industry in their
respective regions for an average of 15 years, building direct personal
relationships with the local ocean carriers and locally based representatives of
other ocean carriers.

     The Leasing Company also maintains agency relationships with over 20
independent agents around the world, who are generally paid a commission based
upon the amount of revenues they generate in the region or the number of
containers that are leased from their area on behalf of the Registrant. They are
located in jurisdictions where the volume of the Leasing Company's business
necessitates a presence in the area but is not sufficient to justify a
fully-functioning Leasing Company office or dedicated agent. These agents
provide marketing support to the area offices covering the region, together with
limited operational support.

                                       6
<PAGE>   7
     In addition, the Leasing Company relies on the services of over 300
independently-owned and operated depots around the world to inspect, repair,
maintain and store containers while off-hire. The Leasing Company's area offices
authorize all container movements into and out of the depot and supervise all
repair and maintenance performed by the depot. The Leasing Company's technical
staff sets the standards for repair of its owned and managed fleet throughout
the world and monitors the quality of depot repair work. The depots provide
a vital link to the Leasing Company's operations, as the redelivery of a
container into a depot is the point at which the container is off-hired from one
customer and repaired in preparation for re-leasing to the next, and the point
when the Leasing Company's area offices report the container's movements onto
the Leasing Company's equipment tracking system. The Leasing Company's computer
system has the capability to accommodate future developments, such as allowing
depots access to record directly on the system the on-hire and off-hire activity
of containers delivered into the depot. It also has the capability of verifying
the terms of redelivery authorized by the area offices. These functions are
currently being performed by the Leasing Company's area offices.

     (c)(1)(ii) Inapplicable.

     (c)(1)(iii) Inapplicable.

     (c)(1)(iv) Inapplicable.

     (c)(1)(v) The Registrant's containers are leased globally, therefore,
seasonal fluctuations are minimal. Other economic and business factors to which
the transportation industry in general and the container leasing industry in
particular are subject, include fluctuations in supply and demand for equipment
resulting from, among other things, obsolescence, changes in the methods or
economics of a particular mode of transportation or changes in governmental
regulations or safety standards.

     (c)(1)(vi) The Registrant established a working capital reserve of
approximately 1% of subscription proceeds raised. In addition, the Registrant
may reserve additional amounts from anticipated cash distributions to the
partners to meet working capital requirements.

     Amounts due under master leases are calculated at the end of each month and
billed approximately six to eight days thereafter. Amounts due under short-term
and long-term leases are set forth in the respective lease agreements and are
generally payable monthly. However, payment is normally received within 45-100
days of receipt. Past due penalties are not customarily collected from lessees,
and accordingly, are not generally levied by the Leasing Company against lessees
of the Registrant's containers.

     (c)(1)(vii) For the year ended December 31, 1995, no single lessee
accounted for 10% or more of the Registrant's rental income. The Registrant does
not believe that its ongoing business is dependent upon a single customer,
although the loss of one or more of its largest customers could have an adverse
effect upon its business.

     (c)(1)(viii) Inapplicable.

     (c)(1)(ix) Inapplicable.

     (c)(1)(x) Competition among container leasing companies is based upon
several factors, including the location and availability of inventory, lease
rates, the type, quality and condition of the containers, the quality and
flexibility of the service offered and the confidence in and professional
relationship with the lessor. Other factors include the speed with which a
leasing company can prepare its containers for lease and the ease with which a
lessee believes it can do business with a lessor or its local area office. The
Leasing Company believes that it, on behalf of the Registrant, competes
favorably on all of these factors.

                                       7
<PAGE>   8
     The Leasing Company, on behalf of the Registrant, competes with various
container leasing companies in the markets in which it conducts business,
including Genstar Container Corp., Transamerica Leasing, Triton Container
International Ltd., Trans Ocean Ltd., Textainer Corp. and others. In a series of
recent consolidations, one of the major leasing companies, as well as some
smaller ones, have been acquired by competitors. It is estimated that at the end
of 1995, the ten largest leasing companies (including the Leasing Company)
represented 94% of the global leased fleet. Genstar Container Corp. and
Transamerica Leasing, the two largest container leasing companies, had
approximately 50% of the worldwide leased container fleet at the end of 1995.
Some of the Leasing Company's competitors have greater financial resources than
the Leasing Company and may be more capable of offering lower per-diem rates on
a larger fleet. In the Leasing Company's experience, however, ocean carriers
will generally lease containers from more than one leasing company in order to
minimize dependence on a single supplier. In addition, not all container leasing
companies compete in the same market, as some supply only dry cargo containers
and not specialized containers, while others offer only long-term leasing.

     (c)(1)(xi) Inapplicable.

     (c)(1)(xii) Environmental Matters

     A portion of the Registrant's equipment portfolio consists of special
purpose containers, primarily refrigerated containers. Historically,
refrigerated containers have utilized a refrigerant gas which is a
chlorofluorocarbon ("CFC") compound. It is generally assumed that CFCs are
harmful to the Earth's ozone layer when released into the atmosphere. Many
nations, including the United States, have taken action, both collectively and
individually, to regulate CFCs. These nations set various targets for the
reduction in production and use of CFCs starting as early as 1993, and their
eventual elimination. There has been substantial progress recently to determine
a viable substitute for the refrigerant used in containers, such that both the
Leasing Company and the container leasing industry association have selected a
replacement refrigerant. Production of new container refrigeration units
operating with the replacement refrigerant became generally available in 1993.
All of the Registrant's refrigerated containers use CFC refrigerated gas in the
operation and insulation of the containers. Depending on market pressures and
future governmental regulations, the Registrant's refrigerated containers may
have to be retrofitted with non-CFC refrigerants, the cost of which will be
borne by the Registrant. The Leasing Company's technical staff has cooperated
with refrigeration manufacturers in conducting investigations into the most
effective and economical retrofit plan. CCC and the Leasing Company believe that
this expense, should it be required, would not be material to the Registrant's
financial position or results of operations. In addition, refrigerated
containers that are not retrofitted may command lower prices in the used
container market. Most of the independent depot operators utilized by the
Registrant currently have the facilities to provide CFC recycling and disposal
services to container owners and lessors such as the Registrant.

     Under the state and Federal laws of the United States, and possibly under
the laws of other nations, the owner of a container may be liable for
environmental damage and/or cleanup and/or other sums in the event of actual or
threatened discharge or other contamination by material in a container. This
liability may be imposed on a container owner, such as the Registrant, even if
the owner is not at fault.

     (c)(1)(xiii) The Registrant, as a limited partnership, is managed by CCC,
the general partner, and accordingly does not itself have any employees. CCC has
27 employees, consisting of 5 officers, 4 other managers and 18 clerical and
staff personnel.

                                       8
<PAGE>   9
     (d) Financial Information about Foreign and Domestic Operations and Export
Sales

     The Registrant's business is not divided between foreign or domestic
operations. The Registrant's business is the leasing of containers worldwide to
ocean-going steamship companies. To this extent, the Registrant's operations are
subject to the fluctuations of worldwide economic and political conditions that
may affect the pattern and levels of world trade.

     Rental income from leases to foreign customers constituted approximately
90% of the Registrant's total rental income for the year 1995, 1994 and 1993.
The Registrant believes that the profitability of, and risks associated with,
leases to foreign customers is generally the same as those of leases to domestic
customers. The Leasing Company's leases generally require all payments to be
made in United States currency.


Item 2. Properties

     As of December 31, 1995 the Registrant owned 6,206 twenty-foot, 3,229
forty-foot and 198 forty-foot high-cube marine dry cargo containers, as well as
100 twenty-foot and 50 forty-foot refrigerated containers suitable for
transporting cargo by rail, sea or highway. The average useful life and
manufacturers' invoice cost of the containers in the Registrant's fleet as of
December 31, 1995 is as follows:

<TABLE>
<CAPTION>
                                                                 Estimated
                                                                Useful Life      Average Age      Average Cost
                                                                -----------      -----------      ------------
                <S>                                             <C>              <C>              <C>
                20-Foot Dry Cargo Containers                    10-15 years        5 years          $ 2,646
                40-Foot Dry Cargo Containers                    10-15 years        5 years          $ 4,369
                40-Foot High-Cube Dry Cargo Containers          10-15 years        5 years          $ 4,750
                20-Foot Refrigerated Cargo Containers           10-15 years        5 years          $18,177
                40-Foot Refrigerated Cargo Containers           10-15 years        5 years          $20,699
</TABLE>

     During 1995, the Registrant invested a portion of its cash from sales
proceeds through the purchase of 61 new twenty-foot marine dry cargo containers,
at an aggregate manufacturer's cost of $153,975, as replacement for containers
which had been lost or damaged beyond repair. Of this amount, $102,000 remained
payable to a container manufacturer at December 31, 1995. The Registrant expects
to pay this amount in January 1996. At December 31, 1995, the Registrant had no
commitments to purchase additional containers.

     Utilization by lessees of the Registrant's containers fluctuates over time
depending on the supply of and demand for containers in the Registrant's
inventory locations. During 1995, utilization averaged 89% and 99% for the
Registrant's dry cargo and refrigerated container fleet, respectively.

     During 1995, the Registrant disposed of 77 twenty-foot, 22 forty-foot and
one forty-foot high-cube marine dry cargo containers at an average book gain of
$459 per container.


Item 3. Legal Proceedings

     Inapplicable.


Item 4. Submission of Matters to a Vote of Security Holders

     Inapplicable.

                                       9
<PAGE>   10
                                     PART II


Item 5. Market for the Registrant's Common Equity and Related Stockholder
        Matters

     (a) Market Information

     (a)(1)(i) The Registrant's outstanding units of limited partnership
interests are not traded on any market nor does an established public trading
market exist for such purposes.

     (a)(1)(ii) Inapplicable.

     (a)(1)(iii) Inapplicable.

     (a)(1)(iv) Inapplicable.

     (a)(1)(v) Inapplicable.

     (a)(2) Inapplicable.

     (b) Holders

<TABLE>
<CAPTION>
                                                     Number of Unit Holders
    (b)(1)   Title                                   as of December 31, 1995
             -----                                   ------------------------
<S>          <C>                                     <C>
             Units of limited partnership
                interests                                      3,290
</TABLE>

     (c) Dividends

     Inapplicable. For the distributions made by the Registrant to its limited
partners, see Item 6 below, "Selected Financial Data."

                                       10
<PAGE>   11
Item 6. Selected Financial Data

<TABLE>
<CAPTION>
                                                                  Year Ended December 31,
                                         -----------------------------------------------------------------------
                                             1995           1994           1993           1992          1991 (1)
                                             ----           ----           ----           ----          ----
     <S>                                 <C>            <C>            <C>            <C>            <C>
     Net lease revenue                   $ 4,908,910    $ 4,802,127    $ 4,959,736    $ 5,982,173    $ 2,582,135

     Net earnings                        $ 2,758,007    $ 2,575,709    $ 2,686,507    $ 3,689,793    $ 1,729,315

     Net earnings per unit of
        limited partnership interest     $      1.25    $      1.16    $      1.24    $      1.74    $      2.11

     Cash distributions per unit of
        limited partnership interest     $      2.22    $      2.04    $      2.23    $      2.29    $      1.27

     At year-end:

     Total assets                        $30,040,568    $32,207,224    $34,276,395    $36,633,079    $38,039,757

     Partners' capital                   $29,858,468    $31,784,230    $33,506,361    $35,521,166    $36,657,207
</TABLE>

---------------

     (1) For the period January 31, 1991 (commencement of operations) through
December 31, 1991.



Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

Liquidity and Capital Resources

     The Registrant's primary objective is to generate cash flow from operations
for distribution to its limited partners and, during the initial years of
operation, reinvest excess cash flow in additional equipment. Aside from the
initial working capital reserve retained from gross subscription proceeds (equal
to approximately 1% of such proceeds), the Registrant relies primarily on
container rental receipts to meet this objective as well as to finance current
operating needs. No credit lines are maintained to finance working capital.

     At December 31, 1995, the Registrant had $2,024,584 in cash and cash
equivalents, an increase of $453,727 and $375,550 from the December 31, 1994 and
1993 cash balances. This additional cash allowed the Registrant to increase its
cash distributions from operations from 10.5% (annualized) to 12% (annualized)
of the limited partners' original capital contribution. During 1995, the
collections of outstanding lease receivables and sales proceeds were favorable,
contributing to the aforementioned increase in cash and cash equivalents, as
well as to a $306,247 decline in net lease receivables due from the Leasing
Company. The Registrant's allowance for doubtful accounts increased from
$181,262 in 1994 to $192,455 in 1995. The Leasing Company has either negotiated
specific payment terms or is pursuing other alternatives in an attempt to
collect the outstanding receivable balances. During 1995, the Leasing Company
concentrated on improving the credit quality of its customer portfolio. The
Registrant expects to gain long-term benefits from the improvement in the credit
quality of this customer portfolio, as the allowance for doubtful accounts and
related expenses should experience declines in subsequent periods. Direct
operating payables and accrued expenses, a component of net lease receivables,
increased $51,844. The amount due to the general partner declined $342,894 as
the Registrant extinguished the amount due to CCC for acquisition fees deferred
during the build-up phase of the Registrant's fleet and operations.

     During 1995, the Registrant purchased 61 new twenty-foot marine dry cargo
containers at an aggregate purchase price of $153,975. The containers were paid
for using sales proceeds generated during 1995. At December 31, 1995, $102,000
remained payable to a container manufacturer. This amount will be paid during
January 1996. During 1996, the Registrant intends to continue using cash
generated from equipment sales to purchase and replace containers which have
been lost or damaged beyond repair. At December 31, 1995, the Registrant had no
commitments to purchase additional containers.

                                       11
<PAGE>   12
     Cash distributions from operations are allocated 5% to the general partner
and 95% to the limited partners. Distributions of sales proceeds are allocated
1% to the general partner and 99% to the limited partners. This sharing
arrangement will remain in place until the limited partners receive aggregate
distributions in an amount equal to their capital contributions plus a 10%
cumulative, compounded (daily), annual return on their adjusted capital
contributions. Thereafter, all distributions will be allocated 15% to the
general partner and 85% to the limited partners, pursuant to section 6.1(b) of
the Partnership Agreement.

     From inception through February 29, 1996, the Registrant has distributed
$18,999,506 in cash from operations to its limited partners, or 48% of the
Registrant's original limited partners' investment. Distributions are paid
monthly, based primarily on each quarter's cash flow from operations and cash
generated from container sales. Distributions are also affected by periodic
increases or decreases to working capital reserves as deemed appropriate by the
managing general partner.

     The container leasing market generally softened during the fourth quarter
of 1995 and has remained so during the early months of 1996. Demand for leased
containers remains stable in some areas of the world; however, sluggish activity
in other markets, particularly in Southeast Asia, has resulted in an increase in
container inventories. The current market conditions cannot be attributed to any
one factor; rather, a series of factors, in combination, have resulted in a
slowdown in leasing activity. Some of the contributing factors are: a slowdown
in some European economies, as well as in some Far East exporting countries;
increased efficiencies in the shipping industry through the formation of
alliances between shipping lines; and a prolonged seasonal slowdown in container
demand during the holiday season. Although some further softening in market
conditions may be anticipated, the volume of world trade continues to grow and
the long-term outlook is a positive one.


Results of Operations

1995 - 1994

     In 1995, the Registrant's operations were impacted by its declining fleet
size, increasingly competitive market conditions, including, but not limited to,
the container leasing market's resistance to higher per-diem rental rates, an
expanding supply of containers within the container industry, as well as
increased efficiencies in the shipping industry. The Registrant's net lease
revenue, which increased by approximately 2% when compared to 1994, is
determined by deducting direct operating expenses, management fees and
reimbursed administrative expenses, from rental revenues billed by the Leasing
Company from the leasing of the Registrant's containers. The Registrant's net
lease revenue is directly related to the size of its fleet and the utilization
and per-diem rental rates of the equipment owned by the Registrant.

     Gross rental revenue, a component of net lease revenue, decreased from
$7,159,556 in 1994 to $7,080,775 in 1995. This decline was attributable to
declines in the Registrant's average fleet size, utilization and per-diem rental
rates. The Registrant's average fleet size (as measured in twenty-foot
equivalent units ("TEU")) was 13,282 TEU, as compared to 13,306 TEU in 1994. The
Registrant's dry cargo container utilization rates decreased slightly from an
average of 90% during 1994 to an average of 89% during 1995. Refrigerated
container utilization rates averaged 99% in 1995, unchanged from 1994. Dry cargo
container per-diem rental rates decreased by less than 1% from 1994 levels.
Refrigerated container per-diem rental rates declined approximately 5% from 1994
levels, as many of the term leases originally entered into during the
Registrant's initial year of operations have since been renewed at lower,
current market rates. A 15% increase in ancillary revenue partially offset the
decline in gross rental revenue. Ancillary revenue contributed to approximately
13% and 11% of the Registrant's total gross rental revenue in 1995 and 1994,
respectively. Ancillary revenue was comprised of pick-up, drop-off , handling
and off-hire charges, as well as lease incentives such as drop-off and pick-up
credits.

                                       12
<PAGE>   13
     The Leasing Company makes payments to the Registrant based upon the rentals
collected from ocean carriers after deducting certain operating expenses
associated with the containers, such as base management fees and reimbursed
administrative expense payable to CCC and its affiliates, the costs of
maintenance and repairs not performed by lessees, independent agent fees and
expenses, depot expenses for handling, inspection and storage, and additional
insurance. Rental equipment direct operating expenses decreased as declines in
the provision for doubtful accounts, agent fees and handling, offset increases
in repair and maintenance, as well as the cost associated with the recovery
actions against the doubtful accounts of certain lessees, including legal and
container recovery expenses. Base management fees declined by $18,492, or
approximately 4%, during 1995.

     The Registrant disposed of 77 twenty-foot, 22 forty-foot and one forty-foot
high-cube marine dry cargo containers during 1995, as compared to 24 twenty-foot
and 16 forty-foot marine dry cargo containers during 1994. As a result,
approximately 2% of the Registrant's net earnings for 1995 were from gain on
disposal of equipment, the same as for 1994. The decision to repair or dispose
of a container is made when it is returned by a lessee. This decision is
influenced by various factors including the age, condition, suitability for
continued leasing, as well as the geographical location of the container when
disposed. These factors also influence the amount of sales proceeds received and
the related gain on container disposals.


1994 - 1993

     The container leasing industry began to benefit from a global economic
recovery during the latter half of 1994, experiencing an improvement in
conditions that existed during 1993, including an upward trend in utilization
rates, a reduction in container inventories, and a stabilization of declining
per-diem rental rates during the fourth quarter of 1994. Despite these
conditions, net lease revenue decreased by approximately 3% when compared to
1993. During 1994, the Registrant operated a fleet averaging 13,306 TEU,
consistent with 13,335 TEU averaged during 1993. The Registrant's per-diem rates
during 1994 for dry cargo and refrigerated containers decreased 4% and 9%,
respectively, from 1993 levels. Dry cargo container utilization rates averaged
90% in 1994, an increase of 3% from the 87% rate averaged during 1993.
Refrigerated container utilization rates averaged 99% in 1994, unchanged from
1993.

     Rental equipment direct operating expenses increased as the decline in
utilization contributed to an increase in storage, handling and repositioning
costs. Additionally, the provision for doubtful accounts increased from $130,233
in 1993 to $192,850 in 1994.

     The Registrant disposed of 24 twenty-foot and 16 forty-foot marine dry
cargo containers during 1994, as compared to 15 twenty-foot, 10 forty-foot and
one forty-foot high-cube marine dry cargo containers during 1993. As a result,
approximately 2% of the Registrant's net earnings for 1994 were from gain on
disposal of equipment, as compared to less than one percent for 1993.


Item 8. Financial Statements and Supplementary Data

                                       13
<PAGE>   14
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Partners
IEA Income Fund XI, L.P.:

We have audited the accompanying balance sheets of IEA Income Fund XI, L.P., as
of December 31, 1995 and 1994, and the related statements of operations,
partners' capital and cash flows for each of the three years in the period ended
December 31, 1995. These financial statements and the schedule referred to below
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements and schedule based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of IEA Income Fund XI, L.P., as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 1995, in conformity
with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information included in
Schedule 1 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. This information has been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.

                                            Arthur Andersen LLP


San Francisco, California,
  March 15, 1996

                                       14
<PAGE>   15
                            IEA INCOME FUND XI, L.P.

                                 BALANCE SHEETS

                           DECEMBER 31, 1995 AND 1994

<TABLE>
<CAPTION>
                   Assets                                       1995                  1994
                   ------                                       ----                  ----
<S>                                                         <C>                   <C>
Current assets:
    Cash, includes $295,315 in 1995 and $247,749
       in 1994 in interest-bearing accounts                 $   299,445           $   258,118
    Short-term investments (note 2)                           1,725,139             1,312,739
    Net lease receivables due from Leasing Company
       (notes 1 and 4)                                          969,993             1,276,240
                                                            -----------           -----------

           Total current assets                               2,994,577             2,847,097
                                                            -----------           -----------

Container rental equipment, at cost                          36,036,469            36,194,456
    Less accumulated depreciation                             9,156,748             7,141,246
                                                            -----------           -----------
       Net container rental equipment                        26,879,721            29,053,210
                                                            -----------           -----------

Organization costs, net (note 3)                                166,270               306,917
                                                            -----------           -----------

                                                            $30,040,568           $32,207,224
                                                            ===========           ===========

      Liabilities and Partners' Capital

Current liabilities:
    Accrued expenses (note 5)                               $    75,000           $    75,000
    Due to general partner (notes 1 and 6)                        5,100               347,994
    Due to manufacturer                                         102,000                    -
                                                            -----------           -----------

           Total current liabilities                            182,100               422,994
                                                            -----------           -----------

Partners' capital (deficit) (note 10):
    General partner                                             (24,831)              (50,994)
    Limited partners                                         29,883,299            31,835,224
                                                             ----------           -----------

           Total partners' capital                           29,858,468            31,784,230
                                                             ----------           -----------

                                                            $30,040,568           $32,207,224
                                                            ===========           ===========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       15
<PAGE>   16
                            IEA INCOME FUND XI, L.P.

                            STATEMENTS OF OPERATIONS

              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                                             1995            1994            1993
                                                             ----            ----            ----
<S>                                                       <C>             <C>             <C>
Net lease revenue (notes 1 and 8)                         $4,908,910      $4,802,127      $4,959,736

Other operating expenses:
    Depreciation and amortization (notes 1 and 3)          2,236,369       2,237,563       2,256,309
    Other general and administrative expenses                 71,050         100,630          72,120
                                                          ----------      ----------      ----------
                                                           2,307,419       2,338,193       2,328,429
                                                          ----------      ----------      ----------

           Earnings from operations                        2,601,491       2,463,934       2,631,307

Other income:
    Interest income                                          110,637          62,791          43,575
    Net gain on disposal of equipment                         45,879          48,984          11,625
                                                          ----------      ----------      ----------
                                                             156,516         111,775          55,200
                                                          ----------      ----------      ----------

           Net earnings                                   $2,758,007      $2,575,709      $2,686,507
                                                          ==========      ==========      ==========

Allocation of net earnings:

    General partner                                       $  260,353      $  246,164      $  199,679
    Limited partners                                       2,497,654       2,329,545       2,486,828
                                                          ----------      ----------      ----------

                                                          $2,758,007      $2,575,709      $2,686,507
                                                          ==========      ==========      ==========

Limited partners' per unit share of net earnings          $     1.25      $     1.16      $     1.24
                                                          ==========      ==========      ==========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       16
<PAGE>   17
                            IEA INCOME FUND XI, L.P.

                         STATEMENTS OF PARTNERS' CAPITAL

              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                              Limited
                                              Partners         General
                                              (note 10)        Partner         Total
                                              ---------        -------         -----
<S>                                          <C>              <C>           <C>
Balances at January 1, 1993                  $35,568,046      $(46,880)     $35,521,166

Net earnings                                   2,486,828       199,679        2,686,507

Cash distributions                            (4,466,246)     (235,066)      (4,701,312)
                                             -----------      --------      -----------

Balances at December 31, 1993                 33,588,628       (82,267)      33,506,361

Net earnings                                   2,329,545       246,164        2,575,709

Cash distributions                            (4,082,949)     (214,891)      (4,297,840)
                                             -----------      --------      -----------

Balances at December 31, 1994                 31,835,224       (50,994)      31,784,230

Net earnings                                   2,497,654       260,353        2,758,007

Cash distributions                            (4,449,579)     (234,190)      (4,683,769)
                                             -----------      --------      -----------

Balances at December 31, 1995                $29,883,299      $(24,831)     $29,858,468
                                             ===========      ========      ===========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       17
<PAGE>   18
                            IEA INCOME FUND XI, L.P.

                            STATEMENTS OF CASH FLOWS

              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                                                          1995             1994              1993
                                                                          ----             ----              ----
<S>                                                                   <C>              <C>               <C>
Cash flows from operating activities:
    Net earnings                                                      $ 2,758,007      $ 2,575,709       $ 2,686,507
    Adjustments to reconcile net earnings to net cash
       provided by (used in) operating activities:
          Depreciation and amortization                                 2,236,369        2,237,563         2,256,309
          Net gain on disposal of equipment                               (45,879)         (48,984)          (11,625)
          Decrease (increase) in net lease receivables
              due from Leasing Company                                    380,499         (190,807)          198,391
                                                                      -----------      -----------       -----------

              Total adjustments                                         2,570,989        1,997,772         2,443,075
                                                                      -----------      -----------       -----------

              Net cash provided by operating activities                 5,328,996        4,573,481         5,129,582
                                                                      -----------      -----------       -----------

Cash flows from (used in) investing activities:
    Proceeds from sale of container rental equipment                      208,469          116,984            75,345
    Purchases of container rental equipment                               (51,975)        (119,350)          (97,130)
    Acquisition fees paid to general partner                             (347,994)        (351,452)         (347,311)
                                                                      -----------      -----------       -----------

              Net cash used in investing activities                      (191,500)        (353,818)         (369,096)
                                                                      -----------      -----------       -----------

Cash flows used in financing activities:
    Distributions to partners                                          (4,683,769)      (4,297,840)       (4,701,312)
                                                                      -----------      -----------       -----------

              Net cash used in financing activities                    (4,683,769)      (4,297,840)       (4,701,312)
                                                                      -----------      -----------       -----------

Net increase (decrease) in cash and cash equivalents                      453,727          (78,177)           59,174

Cash and cash equivalents at beginning at year                          1,570,857        1,649,034         1,589,860
                                                                      -----------      -----------       -----------

Cash and cash equivalents at end of year                              $ 2,024,584      $ 1,570,857       $ 1,649,034
                                                                      ===========      ===========       ===========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       18
<PAGE>   19
                            IEA INCOME FUND XI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 1995, 1994 AND 1993


(1)  Summary of Significant Accounting Policies


     (a)  Nature of Operations

          IEA Income Fund XI, L.P. (the "Partnership") is a limited partnership
          organized under the laws of the State of California on July 30, 1990
          for the purpose of owning and leasing marine cargo containers. Cronos
          Capital Corp. ("CCC") (see Note 9) is the general partner and, with
          its affiliate Cronos Containers Limited (the "Leasing Company"),
          manages and controls the business of the Partnership.

          The Partnership commenced operations on January 31, 1991, when the
          minimum subscription proceeds of $1,000,000 were obtained. As of
          December 31, 1995, the Partnership operated 6,206 twenty-foot, 3,229
          forty-foot and 198 forty-foot high-cube marine dry cargo containers,
          as well as 100 twenty-foot and 50 forty-foot marine refrigerated cargo
          containers.

          The Partnership offered 2,000,000 units of limited partnership
          interest at $20 per unit, or $40,000,000. The offering terminated on
          November 30, 1991, at which time 1,999,812 limited partnership units
          had been purchased.


     (b)  Leasing Company and Leasing Agent Agreement

          The Partnership has entered into a Leasing Agent Agreement whereby the
          Leasing Company has the responsibility to manage the leasing
          operations of all equipment owned by the Partnership. Pursuant to the
          Agreement, the Leasing Company is responsible for leasing, managing
          and re-leasing the Partnership's containers to ocean carriers and has
          full discretion over which ocean carriers and suppliers of goods and
          services it may deal with. The Leasing Agent Agreement permits the
          Leasing Company to use the containers owned by the Partnership,
          together with other containers owned or managed by the Leasing Company
          and its affiliates, as part of a single fleet operated without regard
          to ownership. Since the Leasing Agent Agreement meets the definition
          of an operating lease in Statement of Financial Accounting Standards
          (SFAS) No. 13, it is accounted for as a lease under which the
          Partnership is lessor and the Leasing Company is lessee.

          The Leasing Agent Agreement generally provides that the Leasing
          Company will make payments to the Partnership based upon rentals
          collected from ocean carriers after deducting direct operating
          expenses and management fees to CCC and the Leasing Company. The
          Leasing Company leases containers to ocean carriers, generally under
          operating leases which are either master leases or term leases (mostly
          one to five years). Master leases do not specify the exact number of
          containers to be leased or the term that each container will remain on
          hire but allow the ocean carrier to pick up and drop off containers at
          various locations; rentals are based upon the number of containers
          used and the applicable per-diem rate. Accordingly, rentals under
          master leases are all variable and contingent upon the number of
          containers used. Most containers are leased to ocean carriers under
          master leases; leasing agreements with fixed payment terms are not
          material to the financial statements. Since there are no material
          minimum lease rentals, no disclosure of minimum lease rentals is
          provided in these financial statements.

                                       19
<PAGE>   20
                            IEA INCOME FUND XI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


     (c)  Basis of Accounting

          The Partnership utilizes the accrual method of accounting. Revenue is
          recorded when earned.

          The preparation of financial statements in conformity with generally
          accepted accounting principles (GAAP) requires the Partnership to make
          estimates and assumptions that affect the reported amounts of assets
          and liabilities and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported amounts of
          revenues and expenses during the reported period.


     (d)  Allocation of Net Earnings and Partnership Distributions

          Net earnings have been allocated between general and limited partners
          in accordance with the Partnership Agreement.

          Actual cash distributions differ from the allocations of net earnings
          between the general and limited partners as presented in these
          financial statements. Partnership distributions are paid to its
          partners (general and limited) from distributable cash from
          operations, allocated 95% to the limited partners and 5% to the
          general partner. Sales proceeds are allocated 99% to the limited
          partners and 1% to the general partner. These allocations remain in
          effect until such time as the limited partners have received from the
          Partnership aggregate distributions in an amount equal to their
          capital contributions plus a 10% cumulative, compounded (daily),
          annual return on their adjusted capital contributions. Thereafter, all
          Partnership distributions will be allocated 85% to the limited
          partners and 15% to the general partner.


     (e)  Acquisition Fees

          Pursuant to Article IV Section 4.2 of the Partnership Agreement,
          acquisition fees paid to CCC are based on 5% of the equipment purchase
          price. These fees are capitalized and included in the cost of the
          rental equipment. The fees are payable in two or more installments
          commencing in the year of purchase.


     (f)  Depreciation of Containers

          Rental equipment is depreciated over a twelve-year life on a
          straight-line basis to its estimated salvage value.


     (g)  Amortization

          The Partnership's organization costs will be amortized over 60 months
          on a straight-line basis.


     (h)  Underwriting Commissions

          Underwriting commissions of 10% on the gross proceeds from sale of
          limited partnership units (not applicable to certain sales outside
          California) were deducted in the determination of net limited
          partnership contributions. The commissions were paid to Cronos
          Securities Corp. (formerly IEA Securities Corporation), a wholly-owned
          subsidiary of CCC, and to other broker/dealers who participated in the
          offering.

                                       20
<PAGE>   21
                            IEA INCOME FUND XI, L.P.

                          NOTES TO FINANCIAL STATEMENTS



     (i)  Income Taxes

          The Partnership is not subject to income taxes, consequently no
          provision for income taxes has been made. The Partnership files an
          annual information tax return, prepared on the accrual basis of
          accounting. At December 31, 1995, the tax basis of total partners'
          capital was $17,723,430.


     (j)  Foreign Operations

          The Partnership's business is not divided between foreign or domestic
          operations. The Partnership's business is the leasing of containers
          worldwide to ocean-going steamship companies and does not fit the
          definition of reportable foreign operations within Financial
          Accounting Standards Board Statement No. 14 "Financial Reporting for
          Segments of a Business Enterprise." Any attempt to separate "foreign"
          operations from "domestic" operations would be dependent on
          definitions and assumptions that are so subjective as to render the
          information meaningless and potentially misleading.


     (k)  Financial Statement Presentation

          The Partnership has determined that for accounting purposes the
          Leasing Agent Agreement is a lease, and the receivables, payables,
          gross revenues and operating expenses attributable to the containers
          managed by the Leasing Company are, for accounting purposes, those of
          the Leasing Company and not of the Partnership. Consequently, the
          Partnership's balance sheets and statement of operations display the
          payments to be received by the Partnership from the Leasing Company as
          the Partnership's receivables and revenues.


(2)  Short-term Investments

     Short-term investments are carried at cost which approximates market value.
     Short-term investments with an original maturity of less than three months
     are considered cash equivalents.


(3)  Organization Costs

     The Partnership incurred $703,234 in offering and organizational costs
     during its offering period. Amortization of these costs was $140,647 for
     the years ended December 31, 1995, 1994 and 1993.

                                       21
<PAGE>   22
                            IEA INCOME FUND XI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


(4)  Net Lease Receivables Due from Leasing Company

     Net lease receivables due from the Leasing Company are determined by
     deducting direct operating payables and accrued expenses, base management
     fees payable, and reimbursed administrative expenses payable to CCC and its
     affiliates from the rental billings payable by the Leasing Company to the
     Partnership under operating leases to ocean carriers for the containers
     owned by the Partnership. Net lease receivables at December 31, 1995 and
     December 31, 1994 were as follows:

<TABLE>
<CAPTION>
                                                                   December 31,        December 31,
                                                                       1995                1994
                                                                   ------------        ------------
           <S>                                                     <C>                 <C>
           Lease receivables, net of  doubtful accounts
              of $192,455 in 1995 and $181,262 in 1994              $1,619,922          $1,892,212
           Less:
           Direct operating payables and accrued expenses              291,464             239,620
           Damage protection reserve (note 7)                          165,172             164,467
           Base management fees                                        163,004             179,226
           Reimbursed administrative expenses                           30,289              32,659
                                                                    ----------          ----------
                                                                    $  969,993          $1,276,240
                                                                    ==========          ==========
</TABLE>

(5)  Accrued Expenses

     Accrued expenses consist of $75,000 for the expected cost of retrofitting
     the Registrant's refrigerated containers with non-CFC refrigerants.


(6)  Due to General Partner

     The amounts due to CCC at December 31, 1995 and December 31, 1994 consist
     of acquisition fees.


(7)  Damage Protection Plan

     The Leasing Company offers a repair service to several lessees of the
     Partnership's containers, whereby the lessee pays an additional rental fee
     for the convenience of having the Partnership incur the repair expense for
     containers damaged while on lease. This revenue is recorded when earned
     according to the terms of the rental contract. A reserve has been
     established to provide for the estimated costs incurred by this service.
     This reserve is a component of net lease receivables due from the Leasing
     Company (see note 4). The Partnership is not responsible in the event
     repair costs exceed predetermined limits, or for repairs that are required
     for damages not defined by the damage protection plan agreement.

                                       22
<PAGE>   23
                            IEA INCOME FUND XI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


(8)  Net Lease Revenue

     Net lease revenue is determined by deducting direct operating expenses,
     management fees and reimbursed administrative expenses to CCC and its
     affiliates from the rental revenue billed by the Leasing Company under
     operating leases to ocean carriers for the containers owned by the
     Partnership. Net lease revenue for the years ended December 31, 1995, 1994
     and 1993, was as follows:

<TABLE>
<CAPTION>
                                                                      1995              1994              1993
                                                                      ----              ----              ----
            <S>                                                    <C>               <C>               <C>
            Rental revenue (note 11)                               $7,080,775        $7,159,556        $7,190,339
            Rental equipment operating expenses                     1,304,301         1,458,957         1,238,979
            Base management fees (note 9)                             482,563           501,055           528,119
            Reimbursed administrative expenses (note 9)               385,001           397,417           463,505
                                                                   ----------        ----------        ----------
                                                                   $4,908,910        $4,802,127        $4,959,736
                                                                   ==========        ==========        ==========
</TABLE>

(9)  Compensation to General Partner and its Affiliates

     Base management fees are equal to 7% of gross lease revenues attributable
     to operating leases pursuant to Section 4.3 of the Partnership Agreement.
     Reimbursed administrative expenses are equal to the costs expended by CCC
     and its affiliates for services necessary to the prudent operation of the
     Partnership pursuant to Section 4.4 of the Partnership Agreement.
     Underwriting commissions are equal to 10% of the gross subscription
     proceeds, less commissions to other broker/dealers. The following
     compensation was paid or will be paid by the Partnership to CCC or its
     affiliates:

<TABLE>
<CAPTION>
                                                                      1995              1994              1993
                                                                      ----              ----              ----
            <S>                                                    <C>               <C>               <C>
            Base management fees                                   $  482,563        $  501,055        $  528,119
            Reimbursed administrative expenses                        385,001           397,417           463,505
            Acquisition fees                                            7,699             5,968             4,857
                                                                   ----------        ----------        ----------
                                                                   $  875,263        $  904,440        $  996,481
                                                                   ==========        ==========        ==========
</TABLE>

(10) Limited Partners' Capital

     The limited partners' per unit share of capital at December 31, 1995, 1994
     and 1993 was $15, $16 and $17, respectively. This is calculated by dividing
     the limited partners' capital at the end of the year by 1,999,812, the
     total number of limited partnership units.


(11) Major Lessees

     No single lessee contributed more than 10% of the rental revenue earned
     during 1995, 1994 and 1993.

                                       23
<PAGE>   24
                                                                     Schedule 1

                            IEA INCOME FUND XI, L.P.

                 SCHEDULE OF REIMBURSED ADMINISTRATIVE EXPENSES
                       PURSUANT TO ARTICLE IV SECTION 4.5
                          OF THE PARTNERSHIP AGREEMENT

              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<TABLE>
<CAPTION>
                                                            1995         1994        1993
                                                            ----         ----        ----
<S>                                                       <C>          <C>          <C>
Salaries                                                  $195,348     $186,055     $240,654
Other payroll related expenses                              30,692       52,246       69,237
General and administrative expenses                        158,961      159,116      153,614
                                                          --------     --------     --------

    Total reimbursed administrative expenses              $385,001     $397,417     $463,505
                                                          ========     ========     ========
</TABLE>

                                       24
<PAGE>   25
Item 9. Changes in and Disagreements with Accountants on Accounting and 
        Financial Disclosure

     Inapplicable.

                                       25
<PAGE>   26
                                    PART III


Item 10. Directors and Executive Officers of the Registrant

     The Registrant, as such, has no officers or directors, but is managed by
CCC, the general partner. The officers and directors of CCC at January 31, 1996,
are as follows:

<TABLE>
<CAPTION>
                    Name                                          Office
         ---------------------------       ----------------------------------------------------
         <S>                               <C>
         Dennis J. Tietz                   President, Chief Executive Officer, and Director
         John P. McDonald                  Vice President/Sales
         Elinor Wexler                     Vice President/Administration and Secretary
         John Kallas                       Vice President/Treasurer and Chief Financial Officer
         Laurence P. Sargent               Director
         Stefan M. Palatin                 Director
         A. Darrell Ponniah                Director
</TABLE>

     DENNIS J. TIETZ Mr. Tietz, 43, as President and Chief Executive Officer, is
responsible for the general management of CCC. From 1986 until August 1992, Mr.
Tietz was responsible for the organization, marketing and after-market support
of CCC's investment programs. Mr. Tietz is also President and a director of
Cronos Securities Corp. and a director of The Cronos Group. Mr. Tietz was a
regional manager for CCC, responsible for various container leasing activities
in the U.S. and Europe from 1981 to 1986. Prior to joining CCC in December 1981,
Mr. Tietz was employed by Trans Ocean Leasing Corporation as Regional Manager
based in Houston, with responsibility for all leasing and operational activities
in the U.S. Gulf.

     Mr. Tietz holds a B.S. degree in Business Administration from San Jose
State University and is a Registered Securities Principal with the NASD.

     JOHN P. MCDONALD Mr. McDonald, 34, was elected Vice President - National
Sales Manager of CCC in August 1992, with responsibility for marketing CCC's
investment programs. Since 1988, Mr. McDonald had been Regional Marketing
Manager for the Southwestern U.S. From 1983 to 1988, Mr. McDonald held a number
of container leasing positions with CCC, the most recent of which was as Area
Manager for Belgium and the Netherlands, based in Antwerp.

     Mr. McDonald holds a B.S. degree in Business Administration from Bryant
College, Rhode Island. Mr. McDonald is also a Vice President of Cronos
Securities Corp.

     ELINOR A. WEXLER Ms. Wexler, 47, was elected Vice President -
Administration and Secretary of CCC in August 1992. Ms. Wexler has been employed
by the General Partner since 1987, and is responsible for investor services,
compliance and securities registration. From 1983 to 1987, Ms. Wexler was
Manager of Investor Services for The Robert A. McNeil Corporation, a real estate
syndication company, in San Mateo, California. From 1971 to 1983, Ms. Wexler
held various positions, including securities trader and international research
editor, with Nikko Securities Co., International, based in San Francisco.

     Ms. Wexler attended the University of Oregon, Portland State University and
the Hebrew University of Jerusalem, Israel. Ms. Wexler is also Vice President
and Secretary of Cronos Securities Corp. and a Registered Principal with the
NASD.

     JOHN KALLAS Mr. Kallas, 33, was elected Vice President/Treasurer and Chief
Financial Officer of CCC in December 1993 and is directly responsible for CCC's
accounting operations and reporting activities. Mr. Kallas has held various
accounting positions since joining CCC in 1989, including Controller, Director
of Accounting and Corporate Accounting Manager. From 1985 to 1989, Mr. Kallas
was an accountant with KPMG Peat Marwick, San Francisco, California.

     Mr. Kallas holds a B.S. degree in Business Administration from the
University of San Francisco and is a certified public accountant. Mr. Kallas is
also Treasurer of Cronos Securities Corp.

                                       26
<PAGE>   27
     LAURENCE P. SARGENT Mr. Sargent, 66, joined the Board of Directors of CCC
in 1991. Mr. Sargent was a founder of Leasing Partners International ("LPI") and
served as its Managing Director from 1983 until 1991. From 1977 to 1983, Mr.
Sargent held a number of positions with Trans Ocean Leasing Corporation, the
last of which was as a director of its refrigerated container leasing
activities. From 1971 to 1977, Mr. Sargent was employed by SSI Container
Corporation (later Itel Container International), ultimately serving as Vice
President / Far East. Prior to that, Mr. Sargent was a Vice President of Pacific
Intermountain Express, a major U.S. motor carrier, responsible for its bulk
container division. Mr. Sargent holds a B.A. degree from Stanford University.
Mr. Sargent also serves as a director of the Institute of International
Container Lessors ("IICL"), an industry trade association. Mr. Sargent is also a
director of Cronos Securities Corp.

     Mr. Sargent retired as Deputy Chairman of the Group as of January 1, 1996 .
He will remain a director of CCC, The Cronos Group, as well as other various
subsidiaries of The Cronos Group.

     STEFAN M. PALATIN Mr. Palatin, 42, joined the Board of Directors of CCC in
January 1993. Mr. Palatin is Chairman and CEO of The Cronos Group, and was a
founder of LPI in 1983. From 1980 to 1991, Mr. Palatin was an executive director
of the Contrin Group, which has provided financing to the container leasing
industry, as well as other business ventures, and has sponsored limited
partnerships organized in Austria. From 1977 to 1980, Mr. Palatin was a
consultant to a number of companies in Austria, including Contrin. From 1973 to
1977, Mr. Palatin was a sales manager for Generali AG, the largest insurance
group in Austria.

     Mr. Palatin, who is based in Austria, holds a Doctorate in Business
Administration from the University of Economics and World Trade in Vienna. Mr.
Palatin is also a director of The Cronos Group.

     A. DARRELL PONNIAH Mr. Ponniah, 46, was elected to the Board of Directors
of CCC in January 1993. Mr. Ponniah is Chief Financial Officer of The Cronos
Group and is based in the United Kingdom. Prior to joining Cronos in 1991, Mr.
Ponniah was employed by the Barclays Bank Group and served as Chief Operating
Officer of Barclays European Equipment Finance. From 1973 to 1988, Mr. Ponniah
was employed by Rank Xerox, the European-based subsidiary of Xerox Corporation
of the U.S.A., in a number of positions, the most recent of which was as Group
Controller and Chief Financial Officer of the International Equipment Financing
Division of Rank Xerox Limited.

     Mr. Ponniah is an honors graduate of Manchester University in England and
holds post graduate degrees in operational research from Brunel University and
in Business Administration from the Manchester Business School. Mr. Ponniah is
also a director of The Cronos Group and Cronos Securities Corp.

     The key management personnel of the Leasing Company at January 31, 1996,
were as follows:

<TABLE>
<CAPTION>
                    Name                                          Office
         ---------------------------       ----------------------------------------------------
         <S>                               <C>
         Nigel J. Stribley                 President
         John M. Foy                       Vice President/Americas
         Geoffrey J. Mornard               Vice President/Europe, Middle East and Africa
         Danny Wong                        Vice President/Asia Pacific
         David Heather                     Vice President/Technical Services
         John C. Kirby                     Vice President/Operations
         J. Gordon Steel                   Vice.President/Tank Container Division
</TABLE>

     NIGEL J. STRIBLEY Mr. Stribley, 42, has been responsible for the general
management of the Leasing Company since September 1991. From 1985 to 1991, Mr.
Stribley was a director of LPI, based in the United Kingdom and responsible for
worldwide lease marketing and operations of refrigerated containers. From 1978
to 1985, Mr. Stribley was employed by Sea Containers Limited, London, where he
was involved in refrigerated container leasing, ultimately as Manager of
Refrigerated Containers with responsibility for world-wide activities. From 1975
to 1978, Mr. Stribley was employed by Sealand Containerships, Ltd., the United
Kingdom subsidiary of a major U.S. container shipping company, as a management
trainee and later as Operations Manager and a Container Terminal Manager.

                                       27
<PAGE>   28
     Mr. Stribley holds a BA degree with honors from Bristol University in
England. Mr. Stribley is a director of The Cronos Group.

     JOHN M. FOY Mr. Foy, 50, is directly responsible for the Leasing Company's
lease marketing and operations in North America, Central America, and South
America, and is based in San Francisco. From 1985 to 1993, Mr. Foy was Vice
President/Pacific with responsibility for dry cargo container lease marketing
and operations in the Pacific Basin. From 1977 to 1985 Mr. Foy was Vice
President of Marketing for Nautilus Leasing Services in San Francisco with
responsibility for worldwide leasing activities. From 1974 to 1977, Mr. Foy was
Regional Manager for Flexi-Van Leasing, a container lessor, with responsibility
for container leasing activities in the Western United States. Mr. Foy holds a
B.A. degree in Political Science from University of the Pacific, and a Bachelor
of Foreign Trade from Thunderbird Graduate School of International Management.

     GEOFFREY J. MORNARD Mr. Mornard, 36, is directly responsible for the
Leasing Company's lease marketing and operations in Europe, the Middle East and
Africa. From 1991 to 1993, Mr. Mornard was Director of Marketing for
refrigerated containers in Australia and New Zealand. From 1989 to 1991, Mr.
Mornard held the same position with LPI. From 1979 to 1989, Mr. Mornard was
employed by Cooltainer Services, Ltd., a refrigerated container carrier company,
initially as Melbourne Branch Manager, later as Sydney Branch Manager, and
ultimately as Australian Trade Manager, responsible for marketing and operations
of all container traffic to and from Australia.

     DANNY WONG Mr. Wong, 42, is responsible for the Leasing Company's lease
marketing and operations in Asia, Australia and the Indian sub-continent, and is
based in Singapore. From 1991 to 1993, Mr. Wong was Vice President/Refrigerated
Containers, responsible for the marketing of refrigerated containers worldwide
for the Leasing Company. From 1988 to 1991, Mr. Wong was employed by LPI, as
Director of Marketing for the Far East and Southeast Asia based in Singapore.
From 1987 to 1988, Mr. Wong was a district manager in Singapore covering leasing
activities in Southeast Asia for Gelco CTI, a major container leasing company.
From 1979 to 1987, Mr. Wong was employed by Flexi-Van Leasing in Singapore as a
sales manager and later as Regional Manager for Southeast Asia and the Indian
sub-continent. Mr. Wong holds a Diploma in Marketing Management from the
Singapore Institute of Management.

     DAVID HEATHER Mr. Heather, 48, is responsible for all technical and
engineering activities of the fleet managed by the Leasing Company. Mr. Heather
was Technical Director for LPI, based in the United Kingdom, from 1986 to 1991.
From 1980 to 1986, Mr. Heather was employed by ABC Containerline NV as Technical
Manager with technical responsibility for the shipping line's fleet of dry
cargo, refrigerated and other specialized container equipment. From 1974 to
1980, Mr. Heather was Technical Supervisor for ACT Services Ltd., a shipping
line, with responsibility for technical activities related to refrigerated
containers. Mr. Heather holds a Marine Engineering Certificate from Riversdale
Marine Technical College in England.

     JOHN C. KIRBY Mr. Kirby, 42, is responsible for container purchasing,
contract and billing administration, container repairs and leasing-related
systems, and is based in the United Kingdom. Mr. Kirby joined CCC in 1985 as
European Technical Manager and advanced to Director of European Operations in
1986, a position he held with CCC, and later the Leasing Company, until his
promotion to Vice President/Operations of the Leasing Company in 1992. From 1982
to 1985, Mr. Kirby was employed by CLOU Containers a container leasing company,
as Technical Manager based in Hamburg, Germany. Mr. Kirby acquired a
professional engineering qualification from the Mid-Essex Technical College in
England.

     J. GORDON STEEL Mr. Steel, 63, is directly responsible for the overall
lease marketing activity for the Leasing Company's Tank Container Division. From
1990 to 1992, Mr. Steel held the position of Director/General Manager for
Tiphook Container's Tank Division. From 1977 to 1990, Mr. Steel held various
managerial positions, involving manufacturing and transportation of hazardous
materials, with Laporte Industries and ICI, major chemical distribution
companies. Mr. Steel is a qualified Chemical Engineer and attended the Associate
Royal Technical College in Scotland.

                                       28
<PAGE>   29
Item 11.  Executive Compensation

     Beginning with the first quarter of 1991, the Registrant commenced monthly
distributions to its partners (general and limited) from distributable cash from
operations, allocated 95% to the limited partners and 5% to the general partner.
Sales proceeds are allocated 99% to the limited partners and 1% to the general
partner. These allocations remain in effect until such time as the limited
partners have received from the Registrant aggregate distributions in an amount
equal to their capital contributions plus a 10% cumulative, compounded (daily),
annual return on their adjusted capital contributions. Thereafter, all
Partnership distributions will be allocated 85% to the limited partners and 15%
to the general partner.

     The Registrant will not pay or reimburse CCC or the Leasing Company for any
remuneration payable by them to their executive officers, directors or any other
controlling persons. However, the Registrant will reimburse the general partner
and the Leasing Company for certain services pursuant to Section 4.4 of the
Partnership Agreement. These services include but are not limited to (i)
salaries and related salary expenses for services which could be performed
directly for the Registrant by independent parties, such as legal, accounting,
transfer agent, data processing, operations, communications, duplicating and
other such services; (ii) performing administrative services necessary to the
prudent operations of the Registrant.

     The following table sets forth the fees the Registrant paid (on a cash
basis) to CCC or the Leasing Company ("CCL") for the year ended December 31,
1995.

<TABLE>
<CAPTION>
                                                                                  Cash Fees and
               Name                         Description                           Distributions
               ----                         -----------                           -------------
          <S>             <C>                                                     <C>
          1) CCC          Acquisition fee - equal to 5% of the purchase              $347,994
                           price of containers acquired by the Registrant
                           pursuant to Section 4.2 of the Limited
                           Partnership Agreement

          2) CCL          Base management fees - equal to 7% of gross                $518,189
                           lease revenues attributable to operating
                           leases pursuant to Section 4.3 of the
                           Limited Partnership Agreement

          3) CCC          Reimbursed administrative expenses - equal to              $ 57,393
                           the costs expended by CCC and its affiliates
             CCL           for services necessary to the prudent operation           $333,737
                           of the Registrant pursuant to Section 4.4 of the
                           Limited Partnership Agreement

          4) CCC          Interest in Fund - 5% of distributions of                  $234,190
                           distributable cash for any quarter pursuant
                           to Section 6.1 of the Limited Partnership
                           Agreement
</TABLE>

                                       29
<PAGE>   30
Item 12. Security Ownership of Certain Beneficial Owners and Management

     (a) Security Ownership of Certain Beneficial Owners

     There is no person or "group" of persons known to the management of CCC,
the general partner of the Registrant, to be the beneficial owner of more than
five percent of the outstanding units of limited partnership interests of the
Registrant.

     (b) Security Ownership of Management

     The Registrant has no directors or officers. It is managed by CCC, the
general partner. CCC, the general partner, owns 916 units, representing 0.05% of
the total amount of units outstanding..

     (c) Changes in Control

     Inapplicable.


Item 13. Certain Relationships and Related Transactions

     (a) Transactions with Management and Others

     The Registrant's only transactions with management and other related
parties during 1995 were limited to those fees paid or amounts committed to be
paid (on an annual basis) to CCC, the general partner, and its affiliates. See
Item 11, "Executive Compensation," herein.

     (b) Certain Business Relationships

     Inapplicable.

     (c) Indebtedness of Management

     Inapplicable.

     (d) Transactions with Promoters

     Inapplicable.

                                       30
<PAGE>   31
                                     PART IV


Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K

     (a)1. Financial Statements

<TABLE>
<CAPTION>
                                                                                                    Page
                                                                                                    ----
     <S>                                                                                            <C>
     The following financial statements of the Registrant are included in Part II, Item 8:

         Report of Independent Public Accountants............................................        14

         Balance sheets - December 31, 1995 and 1994.........................................        15

         Statements of operations - for the years ended
             December 31, 1995, 1994 and 1993................................................        16

         Statements of partners' capital - for the years ended
             December 31, 1995, 1994 and 1993................................................        17

         Statements of cash flows - for the years ended
             December 31, 1995, 1994 and 1993................................................        18

         Notes to financial statements.......................................................        19
</TABLE>


     All other schedules are omitted as the information is not required or the
information is included in the financial statements or notes thereto.

                                       31
<PAGE>   32
(a)3. Exhibits

<TABLE>
<CAPTION>
   Exhibit
     No.                                Description                                             Method of Filing
   -------                              -----------                                             ----------------
<S>          <C>                                                                                <C>
3(a)         Limited Partnership Agreement of the Registrant, amended and                       *
             restated as of December 14, 1990

3(b)         Certificate of Limited Partnership of the Registrant                               **

10(a)        Form of Leasing Agent Agreement with LPI Leasing Partners                          ***
             International N.V.

10(b)        Assignment of Leasing Agent Agreement dated January 1, 1992                        Filed with this document
             between the Registrant, CCC (formerly Intermodal Equipment
             Associates), Cronos Containers N.V. (formerly LPI Leasing Partners
             International N.V.) and Cronos Containers Limited

27           Financial Data Schedule                                                            Filed with this document

(b)          Reports on Form 8-K

             No reports on Form 8-K were filed by the Registrant during the
             quarter ended December 31, 1995
</TABLE>

---------------

*    Incorporated by reference to Exhibit "A" to the Prospectus of the
     Registrant dated December 14, 1990, included as part of Registration
     Statement on Form S-1 (No. 33-36701)

**   Incorporated by reference to Exhibit 3.2 to the Registration Statement on
     Form S-1 (No. 33-36701)

***  Incorporated by reference to Exhibit 10.2 to the Registration Statement on
     Form S-1 (No. 33-36701)

                                       32
<PAGE>   33
                                   SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                       IEA INCOME FUND XI, L.P.

                       By  Cronos Capital Corp.
                           The General Partner



                       By  /s/ John Kallas
                           ----------------------------------------------------
                           John Kallas
                           Vice President/Treasurer and Chief Financial Officer
                           Principal Accounting Officer

Date:   March 28, 1996


    Pursuant to the requirement of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of Cronos
Capital Corp., the general partner of the Registrant, in the capacities and on
the dates indicated:

<TABLE>
<CAPTION>
       Signature                             Title                            Date
<S>                               <C>                                    <C>
/s/  Dennis J. Tietz               President and Director of             March 28, 1996
------------------------              Cronos Capital Corp.
Dennis J. Tietz                   ("CCC") (Principal Executive
                                        Officer of CCC)


/s/  John Kallas                  Vice President/Treasurer and           March 28, 1996
------------------------            Chief Financial Officer
John Kallas                       Principal Accounting Officer
                                            of CCC)


/s/  Laurence P. Sargent                Director of CCC                  March 28, 1996
------------------------
Laurence P. Sargent


/s/  A. Darrell Ponniah                 Director of CCC                  March 28, 1996
------------------------
A. Darrell Ponniah
</TABLE>

                            SUPPLEMENTAL INFORMATION

     The Registrant's annual report will be furnished to its limited partners on
or about April 30, 1996. Copies of the annual report will be concurrently
furnished to the Commission for information purposes only, and shall not be
deemed to be filed with the Commission.
<PAGE>   34
                                                     EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
  No.                                Description                                             Method of Filing
-------                              -----------                                             ----------------
<S>       <C>                                                                                <C>
 3(a)     Limited Partnership Agreement of the Registrant, amended and                       *
          restated as of December 14, 1990

 3(b)     Certificate of Limited Partnership of the Registrant                               **

 10(a)    Form of Leasing Agent Agreement with LPI Leasing Partners                          ***
          International N.V.

 10(b)    Assignment of Leasing Agent Agreement dated January 1, 1992                        Filed with this document
          between the Registrant, CCC (formerly Intermodal Equipment
          Associates), Cronos Containers N.V. (formerly LPI Leasing Partners
          International N.V.) and Cronos Containers Limited

 27       Financial Data Schedule                                                            Filed with this document
</TABLE>

---------------

*    Incorporated by reference to Exhibit "A" to the Prospectus of the
     Registrant dated December 14, 1990, included as part of Registration
     Statement on Form S-1 (No. 33-36701)

**   Incorporated by reference to Exhibit 3.2 to the Registration Statement on
     Form S-1 (No. 33-36701)

***  Incorporated by reference to Exhibit 10.2 to the Registration Statement on
     Form S-1 (No. 33-36701)