Directors Report of Engineers India Ltd.

Mar 31, 2018

Dear Members,

Directors of your Company have great pleasure in presenting the 53^rd Annual Report for the Financial Year ended March 31, 2018 along with Audited Statement of Accounts, the Auditors’ Report and Review of the Accounts by the Comptroller and Auditor General of India.

2017-18 in Retrospect

Your Company sustained its good performance during FY2017-18. Key highlights of the financial performance of the Company for the year, as stated in the audited financial statement, along with corresponding performance for immediate previous year are as under:

Financial Performance

                                                                                             (Figures in Rs. Lakhs)

SI. No.	Description	Actual 2017-18	Actual 2016-17
A.	INCOME	Â	Â
i)	Consultancy & Engineering Contracts	137929	116507
ii)	Turnkey Contracts	40829	28357
iii)	Other Income	17947	22366
Â	TOTAL INCOME	196705	167230
B.	EXPENDITURE	Â	Â
i)	Cost of rendering services	137512	114961
ii)	Depreciation & Amortization	2383	2251
Â	Total	139895	117212
C.	PROFIT BEFORE TAX (A-B)	56810	50018
D.	Provision for Current tax	21669	21480
E.	Provision for Deferred Tax	(3179)	(3958)
F.	Earlier Year Tax Adjustments,	Â	Â
Â	Short/(Excess)	533	(8)
G.	PROFIT FOR THE YEAR (C-D-E-F)	37787	32504
H	OTHER COMPREHENSIVE INCOME	460	(2323)
I.	TOTAL COMPREHENSIVE INCOME	38247	30181

Segment wise Performance                                                         (Figures in Rs. Lakhs)

Consultancy & Engineering Projects	Year ended 31.03.2018	Year ended 31.03.2017
Segment Revenue	Â	Â
Consultancy & Engineering Projects	137929	116507
Turnkey Projects	40829	28357
Total	178758	144864

 

Segment Profit From Operations	Â	Â
Consultancy & Engineering Projects	43027	35920
Turnkey Projects	7537	10355
Total(A)	50564	46275
Interest	57	317
Other un-allocable expenditure*	11644	18306
Total (B)	11701	18623
Other Income (C)	17947	22366
Profit Before Tax (A-B+C)	56810	50018
Income Tax Expense	19023	17514
Profit for the year	37787	32504
Capital Employed **	226787	277596

NOTES:

* Financial Year 2017-18 includes expenditure on oil and gas exploration blocks including dry well written off amounting to Rs.2,643.14 Lakhs ( previous year : Rs.449.47 Lakhs)

Financial Year 2016-17 included Rs.9062.88 Lakhs on account of provisions for increase in gratuity ceiling from Rs.10 Lakhs to Rs.20 Lakhs with effect from January 1, 2017.

** Property Plant and Equipment and other assets used in the Company’s business or segment liabilities contracted have not been identified to any of the reportable segments, as these assets and support services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities has been made and capital employed has been presented.

Dividend

The Board of Directors of the Company has recommended a final dividend of Rs.1.50/- per share (of face value of Rs.5/- per share) for the Financial Year 2017-18, in addition to Rs.2.50/- per share interim dividend already paid during the year. With this, the total dividend for the Financial Year 2017-18 works out to Rs.4.00/- per share amounting to Rs.25276.62 Lakhs excluding dividend distribution tax. The payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company which shall be paid to the Members whose names appear in the Register of Members as well as beneficial ownership position provided by NSDL/ CDSL as on 12^th September, 2018.

Changes in Share Capital and disinvestment by the Government of India

During the year, the Company has completed Buyback of 4,19,61,780 equity shares of the Company. Consequently, the paid up share Capital of the Company stands reduced from Rs.33693.67 lakhs to Rs.31595.58 lakhs (63,19,11,420 equity shares Rs.5 each).

The President of India acting through the Ministry of Petroleum & Natural Gas has dis-invested 4,19,46,454 equity shares under the Buyback of shares by the Company. Further, the Government of India has also dis-invested 1,35,88,409 equity shares to Bharat 22 ETF through a New Fund Offer in terms of scheme framed in this regard. Consequently, the Government of India (Promoter) share holding as on 31.03.2018 stands reduced to 52.02% (32,86,89,731 equity shares).

Investor Relations

Company is committed to continually improving its Corporate Governance Practices for effectively managing its businesses and for protecting the interests of all stakeholders.

Your Company’s Management is responsive for ensuring that the performance of your Company is accurately reported to its Shareholders, Investment Community, concerned Regulators and public on a regular basis.

To achieve the above objective, an Investor Relations (IR) Cell acts as a nodal intermediary with Investment Community for disseminating vital information pertaining to the Company in timely, accurate and consistent manner. IR Cell is responsible for effectively utilizing channels of communication like press releases, websites, participation in conferences, analyst meets, besides having one-to-one meetings with Analysts/ Brokers/ Domestic and Foreign Institutional Investors for sharing crucial information of the Company such as financial results, dividend policy, shareholding pattern, investor presentations and material news updates. Senior Management is actively engaged in annual meets and conferences for facilitating the Financial Community to comprehend Company’s business model and to share with them new business areas, strategic outlook, and direction coupled with growth plans. Earning calls are generally held after the declaration of Quarterly/ Annual Results so that stakeholders are updated about significant developments of the preceding quarter. Major events, milestones and plans are shared within stipulated timelines with Stock Exchanges to keep them informed on the Company’s performance and future outlook.

EIL remains committed to creation of an open and transparent environment for reaching out to existing and potential Investors and other stakeholders, thereby instilling trust and confidence leading to harmonious relationship with Investors.

Management Discussion & Analysis

Separate report on Management Discussion and Analysis is annexed to this Report.

Business Responsibility Report

The Business Responsibility Report covering initiatives taken with environmental, social and governance perspective has been prepared in accordance with the directives of SEBI and forms part of the Annual Report.

Consultancy Assignments (Domestic)

Offshore Oil and Gas

During the year, your Company continued to make considerable progress in Offshore Oil & Gas and LNG sectors.

The following consultancy assignments were successfully completed during the year:

- Technical Bid Evaluation of EPC packages of Chhara LNG Project of HPCL Shapoorji Energy Pvt. Limited (HSEPL), a Joint Venture between Hindustan Petroleum Corporation Limited (HPCL) and Shapoorji Pallonji Ports Private Limited.

Additionally, the following projects are currently under execution:

-    PMC services for LPG Import Facility at Haldia, West Bengal, for Bharat Petroleum Corporation Limited (BPCL).

-    PMC services for Dahej Expansion Phase-IIIB1 Project at Dahej LNG Terminal, Gujarat for Re-gas facilities for Petronet LNG Limited.

-    Construction of Fifth Oil Berth at Jawahar Dweep Island of Mumbai Port Trust, Maharashtra.

-    Life Extension of Well Platform Project of Oil and Natural Gas Corporation (ONGC), Western Offshore.

-    Underwater structural repair of HC Platform in Heera Field of ONGC.

During the year, EIL secured the following orders against stiff competition and works are under implementation:

-    Vetting of Cost Estimation Methodology for ONGC Offshore Projects.

-    Consultancy Services for LNG Terminal at Dhamra, Odisha, of GAIL (India) Limited.

Pipelines

EIL has developed an enviable track record in design, engineering and execution of cross-country pipelines for transportation of crude oil, refined petroleum products, natural gas and LPG across diverse geographies and demanding terrains. EIL ensures smooth and seamless execution of pipeline projects and has established itself with oil & gas conglomerates as a preferred consultant for execution of pipeline projects.

The following assignments were successfully completed during the year:

-    Detailed Feasibility Report (DFR) of 327 km Multi product Bina-Panki Pipeline of BPCL.

-    PFR of 1864 km long Middle East to India deepwater pipeline of South Asia Gas Enterprise Private Limited. The maximum depth at which pipeline shall be laid is 3,512 m below sea level which will be a World Record.

-    EPCM Services for Upgradation of Pumping Stations for Naharkatia-Barauni Crude Oil Pipeline of Oil India Limited (OIL).

The following pipeline projects are in progress:

-    PMC services for 18” x 45 km Re-routing of Mumbai-Manmad Pipeline for BPCL.

-    PMC services for 24”/18”/8”/4” x 243 km Replacement of KG Basin Pipeline for GAIL.

-    PMC services for 12”/ 8” x 450 km Kochi-Salem LPG Pipeline for KSPPL.

-    PMC services for capacity augmentation of Jamnagar-Loni LPG Pipeline for GAIL.

-    Modification/ Revamp of Vijaipur and Vaghodia HBJ/ DVPL system for GAIL for rich gas/ lean gas interconnection.

-    PMC services for 30”/ 24”/ 18”/ 12” x 827 km Dobhi-Durgapur-Haldia Natural gas pipeline of GAIL.

-    PMC services for 36” x 357 km Vijaipur-Auraiya Natural Gas Pipeline of GAIL.

-    EPCM services for Palanpur-Vadodara Pipeline and Mundra-Delhi Pipeline capacity expansion Project of HPCL.

-    Engineering and Consultancy services for 18” x 362 km Khunchanpalli-Ramagundam Pipeline project of GITL in Andhra Pradesh.

-    Engineering and Procurement Services for Mundra-Bhatinda Pipeline Capacity Expansion of HPCL-Mittal Pipeline Limited.

The following major projects were secured by the Company in the Pipeline sector during the year and are in various stages of execution:

-    Upgradation project for enhancement of pumping capacity of Barauni-Bongaigaon-Guwahati Sector of Naharkatia-Barauni Crude Oil Pipeline for OIL.

-    PMC services for new selected C -C product injection scheme in HVJ pipeline at GAIL, Vijaipur.

-    Engineering, Procurement, Inspection & Expediting, Construction Supervision, Pre-commissioning & Commissioning assistance services for laying of 16” x 4.2 km pipeline from H₂SO₄ Tank of IOCL Haldia Refinery to existing IOCL jetty.

Petroleum Refining

EIL has carved a niche as one of the leading engineering consultancy service providers to the refinery sector in India, having its footprints in 20 operating refineries including 10 grass root refineries in the country, Diesel Hydro-desulphurisation projects, Fuel Specification Upgradation Projects and revamp/ modernization projects for most of the oil & gas majors.

The following Refinery Projects were successfully completed during the year:

-    Implementation of Low Cost Expansion Project of HPCL Mittal Energy Limited (HMEL) at Guru Gobind Singh Refinery (GGSR), Bhatinda.

-    Construction of new utility buildings for the refinery to relocate existing facilities as part of revised pre-project activities of Vizag Refinery Modernization Project (VRMP), HPCL.

-    Tail Gas Treatment Unit (TGTU) at BPCL Mumbai Refinery for additional recovery (more than 99.9%) of Sulphur from acid gases emanating from SRU.

During the year, the Company achieved significant progress in the following projects:

-    Distillate Yield Improvement Project at IOCL, Haldia Refinery. For the project, Engineering & Ordering have been completed and equipment deliveries are in an advance stage of completion. CDSP and 132 kV Switch yard are mechanically completed, Civil & Structural work have been completed and Mechanical, Electrical & Instrumentation works are in advance stage of completion.

-    PMC services (Phase-II) for Revamp and Capacity Enhancement Project of BORL Refinery which aims to increase the refining capacity from 6.0 MMTPA to 7.8 MMTPA. For the project, ordering activities have been completed and receipt at site is nearing completion. New Penex Unit and Nitrogen plant have been commissioned. Civil & Structural works are nearing completion while site activities are progressing in full swing.

-    EPCM services for 0.7 MMTPA DHDT and Supporting Facilities project at Numaligarh Refinery of NRL. For the project, engineering and procurement have been completed. DHDT unit was successfully commissioned and on-spec product has been produced. Construction activities pertaining to the SRU are in full swing.

-    Construction works are in advance stage for HGU Revamp, SRU/ O₂ Enrichment, SWS Revamp and CDU-III Revamp of BPCL Mumbai Refinery.

-    EPCM Services for LPG Import facility at Haldia for BPCL for which engineering and procurement are in progress while construction activities are in full swing.

-    MR-II Tankages project at Mumbai, HPCL for which engineering and procurement are in advance stage and construction is also in progress.

-    Significant progress has been achieved in Vizag Refinery Modernization Project with award of all major process packages viz., CDU, FCHCU, RFU, Naphtha ISOM, HGU, SRU, Revamp of NHT/ CCR, DHDT and Prime-G to LSTK contractors. Utility packages of CPP, N₂ & compressed air, Sea & Bearing Cooling Water Tower have also been awarded. Detail Engineering and ordering of equipment is in progress. Site activities with respect to civil jobs have also been commenced by various LSTK contractors.

-    EPCM services for BS-VI up-gradation project for six refineries of IOCL at Vadodara, Panipat, Mathura, Haldia, Bongaigaon and Digboi with the following units / revamps have progressed to a major extent:

a.    Panipat Refinery : 2.2 MMTPA DHDT, HGU (LEPC mode), SRU, TAME, ARU, SWS PRIME Revamp, Utilities and Tanks

b.    Vadodara Refinery : 2.0 MMTPA DHDT, HGU, FCCGHDS, ARU, Revamp of CCR & ISOM, Utilities and Tanks

c.    Haldia Refinery    : 1.2 MMTPA DHDT, H₂SO₄, ARU, SWS, Revamp of Prime G, Utilities and Tanks

d.    Mathura Refinery : Revamp of DHDS, Prime G and Tanks

e.    Bongaigaon Refinery : 0.5 MMTPA NHT, SRU, ARU, Revamp of DHDT and HGU

f.    Digboi Refinery    : Revamp of DHDT

-    EPCM Services for BS-VI Fuel Quality Project of HMEL consisting of a New DHDT (1.9 MMTPA), HGU & Offsite. For the project, engineering, procurement and construction activities are in progress.

-    EPCM services for BS-VI Project and Associated Facilities at MRPL Refinery, Mangalore to upgrade their products to BS-VI standards. Basic Design Engineering Package (BDEP) finalized for the BS-VI project facilities. Detailed engineering and ordering activities are nearing completion for long-lead items and civil construction works are in full swing.

-    Mumbai Refinery Expansion Project (MREP) at HPCL, Mumbai Refinery is being executed on EPCM/ PMC basis. MREP’s objective is to produce upgraded BS-VI fuels along with Plant capacity expansion of 2.5 MMTPA.

-    PMC and EPCM services for Gasoline Hydrotreating Unit Project at BPCL, Mumbai Refinery to produce BS-VI quality Gasoline.

-    EPCM services for BS-VI Project at BPCL Kochi Refinery, Kochi.

-    EPCM services for Heat Traced Pipeline projects with associated facilities at Mumbai & Kochi refineries of BPCL.

-    PFR of West Coast Refinery of RRPCL (Ratnagiri Refinery & Petrochemicals Corporation Limited): A consortium comprising IOCL, HPCL and BPCL intends to jointly set up a mega refinery-cum-petrochemical complex on the West Coast, primarily to cater to the growing fuel and petrochemical requirements of the country, besides addressing the additional objective of selective export of the produce. Market Study and selection of consultant for the configuration study were awarded to EIL.

The following projects were secured by the Company in the Petroleum Refining sector during the year and good progress has been achieved in these projects:

-    PMC services for installation of new Kero Hydro Desulphurization unit at Bina Refinery of Bharat Oman Refineries Limited (BORL). The new Unit will be installed and hooked up with existing refinery aiming to meet BS-V/VI specifications for MS and HSD, maximization of Diesel production, minimize Kero production and Sulphur reduction in ATF. Engineering activities have commenced for long-lead items and critical equipment.

-    License, BDEP and other related services for new 0.235 MMTPA NHT Unit and revamp of existing DHDT Unit at Bongaigaon Refinery, IOCL.

-    BDEP and other services for installation of INDJET Unit (ATF Hydro Treating Process) at Barauni Refinery, IOCL.

-    Pre-project activities for Rajasthan Refinery Project, HPCL.

-    Preparation of DFR and Licensor Selection for process units of Cauvery Basin Refinery project, Chennai Petroleum Corporation Limited (CPCL) at Nagapattinam, Tamil Nadu.

-    EPCM services for NHT Modification at ONGC Mangalore Petrochemicals Limited (OMPL), Mangalore for processing of Naphtha with higher Olefins. Detailed engineering and procurement is underway.

Petrochemicals

EIL has been involved in the establishment of a large number of mega petrochemical complexes in India. The Company has provided Engineering Consultancy services for various processes including Gas based/ Naphtha based cracker complexes and Aromatic plants comprising Naphtha splitters, pre-treaters/ reformers, Benzene-Toluene extraction units, pyrolysis gasoline hydrogenation units, Xylene fractionation and isomerization units including overall integration and optimization of such complexes.

The following Petrochemical Projects were successfully completed during the year:

-    PPU Expansion Project of HMEL at GGSRL Complex at Bhatinda, Punjab.

-    Licensor Selection and preparation of DFR for HMEL Petrochemical Complex at Bhatinda, Punjab.

-    Additional jobs to increase operation flexibility of C₂-C₃ recovery plant at GAIL, Vijaipur, Madhya Pradesh.

Significant progress has been made on the following petrochemical projects:

-    Propylene Derivative Petrochemical Plant (PDPP) of BPCL, Kochi Refinery comprising Acrylic Acid Unit, Oxo-Alcohol Unit and Acrylates Unit. For this project, engineering and ordering activities are nearing completion and delivery of equipment and materials is in progress. Construction activities are progressing in full swing.

-    EPCM services for 500 TPD Methanol Project and Associated Facilities for Assam Petrochemicals Limited, Namrup. Detailed engineering and procurement activities are in advance stage while Piling and Civil construction works are gaining momentum.

The following projects were secured by the Company in Petrochemical sector during the year and are in progress:

-    GGSR Polymer Addition Project of HMEL at Bhatinda, Punjab comprising EPCM services for DFCU, LLDPE, HDPE (Swing) Butene- 1, HDPE & PP Units (Powder Section) and Utilities & Offsite and PMC services for HDPE & PP Units (excluding Powder section).

Environment clearance (EC) for the Project has been obtained. Licensor selection for all the Petrochemical Units was carried out by EIL on fast track basis and recommendation for award has been sent to HMEL. Detailed Engineering and Ordering / Tendering have been carried out and all civil and structural contractors have mobilized at site.

-    Expediting Services for procurement and construction supervision of two process units namely Bitumen Blowing Unit (BBU) and Polypropylene Unit (PPU) for HMEL Petrochemical Complex at Bhatinda, Punjab.

-    Licensor Selection and Pre-project activity for Andhra Pradesh Petrochemical complex at Kakinada for GAIL/ HPCL. Licensor selection and Pre-Project activities are in progress. Terms of Reference (TOR) for the project have been approved by MoEF&CC.

-    Consultancy Services for DFR, EIA/RRA and Licensor Selection for Propane Dehydrogenation (PDH)/ Polypropylene (PP) Unit at GAIL, Usar in Maharashtra. The Project has a dedicated Propane Storage, Unloading Facility and Pipeline connectivity upto plant.

-    Detailed Engineering for Flare Recovery Unit, Lower Explosive Limit (LEL) detector Adequacy check, Improvement of Utility System at GAIL, Vijaipur, Madhya Pradesh.

Strategic Storages

The Strategic Crude Oil Storage Programme is the flagship energy security initiative of the Govt. of India which aims at creating a buffer stock of crude oil in underground caverns to meet requirements in case of any disruption of supplies from abroad.

Under Phase-I of the Strategic Storage programme, EIL provided PMC services to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction of underground unlined rock cavern storages in Vishakhapatnam, Mangalore and Padur having a total capacity of 5.33 MMT. During the year, Mangalore-Padur Pipeline and 110 kV HT line have been mechanically completed.

Metallurgy

The following key Metallurgy assignments were completed during the year:

-    Consultancy services for Feasibility Study and preparation of scheme for complete revamping of Rectifier Station-1 at Hirakud, Odisha for Hindalco.

-    Consultancy services for Swing Unit Feasibility Study and Rectifier System study of 220 kV Switchyard System at Smelter-1, Jharsuguda, Odisha for Vedanta Limited.

-    Consultancy services for implementation of Fume Treatment Plant in the existing Baking Furnace at Smelter Plant, Angul, Odisha for National Aluminium Company Limited (NALCO).

-    Scoping study for Structural Integrity of Aluminium Plant at Renukoot, Uttar Pradesh for Hindalco.

The Company achieved significant progress in the following assignments:

-    Consultancy services for implementation of revised plant operation philosophy (Electrical) for NALCO’s Alumina Refinery at Damanjodi, Odisha.

-    4^th Stream upgradation project for Mines [6.3 Million Tons per Year (TPY) to 6.8 Million (TPY)] and Alumina Refinery (5.25 Lakh TPY to 7.00 Lakh TPY) at NALCO, Damanjodi, Odisha.

-    Consultancy services for procurement and installation of Reclaimer and Associated Facilities in NALCO’s Alumina Refinery at Damanjodi, Odisha.

-    Consultancy services for 2^nd raw water intake pump house and pipeline at NALCO, Damanjodi, Odisha.

-    Detailed Feasibility Report for mechanised production and evacuation for Kurmitar Iron Ore Mines of Odisha Mining Corporation Limited.

-    DFR for Kodingamali Bauxite Mines of Odisha Mining Corporation Limited.

The following assignments were secured by the Company in Metallurgy sector during the year and are in progress:

-    Consultancy services for Retrofitting of HRD (High Rate Decanter) and DCW (Deep Cone Washer) in Stream-1, Stream-2 & Stream-3 of NALCO’s Alumina Refinery at Damanjodi, Odisha.

-    Consultancy Services for Comprehensive Geostatistical Resource Evaluation and Resource Classification of Polymetallic Nodules in the Central Indian Ocean Basin awarded by National Institute of Oceanography.

Infrastructure

EIL has developed a strong track record in Infrastructure sector by providing a wide spectrum of services such as Project Management, Project Management on Depository Basis, Third Party Inspection (TPI), Quality Assurance, Independent Engineer and Lender’s Engineer services, Project Appraisal and Project Execution Services to key players in the sector.

During the year, following major assignments were completed:

-    Consultancy services for preparation of Master Plan and Detailed Project Report (DPR) for development of Rajkot Airport, Gujarat to international standards.

-    Civil Engineering services for Greenfield Airport at Rajkot, Gujarat.

-    Engineering Consultancy services for development of Deoghar Airport, Jharkhand.

-    Review of Master Plan for development of Greenfield International Airport at Mopa, Goa.

-    PMC services for execution of balance works of Konark Sun Temple for Indian Oil Foundation in Odisha.

EIL achieved substantial progress in following projects:

-    PMC Services for

-    Establishing Cold Storage Facility at Guntur, Andhra Pradesh.

-    Data Centre at Hyderabad for SBI.

-    Housing Project of Gujarat Housing Board.

-    Rejuvenation of nine cities of Odisha under AMRUT Scheme.

-    Development of IIT Patna Campus, Bihar.

-    Establishment of Main Campus of Central University of Punjab at Bhatinda.

-    Bhamashah State Data Centre (BSDC), Jaipur for Department of Information Technology & Communication (DoIT&C), Government of Rajasthan.

-    Headquarter Building of UIDAI in Delhi.

-    Construction of new Domestic Terminal Building and associated works at Leh Airport, Jammu & Kashmir.

-    Extension of TPI services for Infrastructure Projects of Pune Municipal Corporation, Maharashtra.

The Company’s footprints in Infrastructure sector received an impetus with securing of following infrastructure assignments during the year:

-    Third Party Assessment Services for establishment of Bhamashah State Data Centre, Jaipur for DoIT&C, Government of Rajasthan.

-    Engineering & PMC for Development of Tourist Infrastructure facilities in and around Khajuraho group of Temples, Madhya Pradesh.

Fertilizers

EIL is leveraging its capabilities and global network to tap significant business opportunities presented by fertilizer sector in India and Overseas. As part of strategic investment in Fertilizer sector, EIL has taken 26% equity stakes in a JV Company M/s Ramagundam Fertilizers & Chemicals Ltd. (RFCL) along with NFL and FCIL. RFCL has been formed to pilot the Revival of Ramagundam Fertilizer Project. EIL is executing this project on EPCM Mode.

Engineering activities for the project are nearing completion while ordering of all equipment has been completed and equipment are being received progressively at site. All work contracts have been awarded. Site activities are in full swing with civil works nearing completion and mechanical works in progress.

Water and Waste Management

EIL has the expertise to undertake a multitude of Water Treatment projects such as Raw Water Intake and Treatment Systems, Desalination plants, Cooling Water plants, Water Injection plants, Demineralization Plants, Condensate Polishing plants etc. The Company has also evolved standard basic engineering modules for municipal sewage treatment plants as well as standalone recycle plants.

The following Water and Waste Management assignment was completed during the year:

-    Preparation of DPRs for Water Supply Projects of AMRUT scheme in 9 cities of Odisha.

During the year the Company achieved significant progress in following projects:

-    Execution of Entry Level Activities including development of Ghats and Crematoriums within Uttar Pradesh and implementation of Sewerage Infrastructure works at Mathura under the Namami Gange Programme.

-    Technical and Financial Audit of infrastructure works in various Urban Local Bodies (ULB) for Punjab Municipal Infrastructure Development Company (PMIDC).

-    PMC Services for sewerage system in Ponda colony - Zones IA & IB of Goa for Sewerage and Infrastructure Development Corporation of Goa Limited (SIDCGL).

-    PMC Services for the Interceptor Sewer Project of Delhi Jal Board (DJB) for abatement of pollution in river Yamuna. Package-1 has been already handed over to DJB and the packages 2 to 6 are in progress.

-    EPCM Services for Effluent Treatment Plant (ETP) at Tengakhat, Assam for OIL.

-    PMC services for ETP revamp at BPCL, Mumbai Refinery.

The following assignments were secured by the Company in Water and Waste Management sector during the year and are in progress:

-    Consultancy Services for Techno-commercial and Environmental Feasibility Study for construction of De-salination Plant at Mori, Kesanapalli and Malleswaram fields of ONGC Rajahmundry Asset in Andhra Pradesh.

Alternate Fuel

In the alternate fuel area, EIL secured following assignments during the year:

-    DFR for setting-up 2G Ethanol Bio-Refineries at Bina, Madhya Pradesh, Bargarh, Odisha and Maharashtra including technology evaluation of 2G Ethanol Bio-refinery in Maharashtra for BPCL.

-    DFR for setting up 2G Ethanol Project at Mangalore for MRPL.

-    DFR for drop-in bio fuel project at U.P. was also completed during the year.

Nuclear Power

EIL is making promising inroads in Nuclear power sector as well. Detailed Engineering Consultancy and Construction Supervision for setting-up Greenfield Nuclear Fuel Complex at Rawatbhata, Kota, Rajasthan is in progress.

Overseas Assignments

EIL has leveraged its strong track record in the Indian hydrocarbon sector to successfully expand its international operations. Over the years, the Company has emerged as a global player with the execution of a number of prestigious assignments for international energy majors in Middle East, Africa and South East Asia.

During the year, the following overseas assignments were completed:

-    Detailed Feasibility Study (DFS) for construction of an Oil Refinery Plant with a Crude Oil Supply Pipeline Project in Mongolia from Ministry of Industry, Government of Mongolia (MMHI).

-    DFS for LNG Regasification Terminal at Kutubida Island, Bangladesh.

-    FEED to divert excess MP fuel gas to MP gas header - Habshan complex of ADNOC Gas Processing (formerly GASCO), UAE.

-    Consultancy study for waste water management at Ruwais Refinery (East) and Abu Dhabi Refinery Division of ADNOC Refining, UAE.

-    Technical Consultancy services for CNG station equipment packages, Phase-III of ADNOC Distribution, UAE.

-    Engineering services for relocation of Suction Valves in Hot Oil Pumps and resultant piping modifications at Condensate Units 211 and 411 in Ruwais Refinery (East) of ADNOC Refining, UAE.

-    Pre-FEED and FEED for enhancement of sales gas export from ASAB for ADNOC Gas Processing, UAE.

-    FEED for provision of cross over among condensate stabilizers U27 and U200 of ADNOC Gas Processing, UAE.

-    Installation of Chemical Injection Skids and Solar Power systems in US and ZK Wellhead Towers (WHTs) of ADMA-OPCO, UAE.

EIL achieved substantial progress in the following projects:

-    PMC services for execution of 1900 TPD Ammonia Plant of PT. Panca Amara Utama in Central Sulawesi, Indonesia. The plant has been mechanically completed and is in advanced stage of commissioning.

-    EPCM services for the prestigious Dangote Refinery and Petrochemical Project, Nigeria comprising a 460,000 BPSD grassroot Petroleum Refinery and 830 KTPA Petrochemical Complex at Lekki Free Trade Zone, Nigeria for Dangote Oil Refining Company (DORC). The major process units in Refinery include Crude Distillation Unit (CDU), a Residue Fluid Catalytic Cracking unit, MS Block, a Mild Hydrocracker unit, Alkylation and Sulphuric Acid Regeneration Unit, Hydrogen Plant, Polypropylene Unit, Sulphur block and associated Utilities generation and Offsite facilities. The Project facilities include crude oil receipt and storage including two SPMs with associated offshore/ onshore pipelines. The product dispatch facilities include product disposal through road as well as ships. Dispatch of products comprises pumping facility, onshore and offshore pipeline as well as three SPMs.

-    Revamp/ Expansion of Dangote Refinery, Nigeria from 460,000 BPSD to 650,000 BPSD. With this revamp in CDU, SWS, ARU, SRU, RFCC Gasoline, Offsite & Utilities, this will become the largest single train refinery in the world.

-    PMC Services for AL DABBIYAH ASR Gas Development Project of ADNOC Onshore, UAE.

-    PMC services for 3 MMTPA grassroot refinery of Eastern Refinery Limited in Bangladesh having 17 units like CDU, VDU, SAT GAS, LPG Treating Unit, NHT, ISOM, CCR, KTU, DHDT, HCU, VBU, SWS, ARU, SRU and H₂.

-    PMC services for Rehabilitation and Adaptation of Algiers Refinery of SONATRACH having new units of MS Block, RFCCU, SRU, and revamp of exiting units. Substantial progress has been achieved on construction front.

-    PMC services for Rehabilitation of Ethylene Unit at Skikda Petrochemical Complex of SONATRACH, Algeria. The Phase-I project activities have been successfully completed and report submitted.

-    Design, Consultancy and PMC Services for Miscellaneous Tank Farm, Piping, Instrumentation and Control System, Inspection, Repair, Maintenance & Upgrade works at various depots of ADNOC Distribution, UAE.

-    FEED for Upgradation of Ethane Flow meter Skid in Train I, II & III (Ruwais) of ADNOC Gas Processing, UAE.

-    FEED/ Detailed Engineering for provision to route high C₃ content sales Gas from H2 to THAMMAMA-F Injection wells of ADNOC Gas Processing, UAE.

-    Technical Support services for Structural Integrity/ Adequacy check of existing Pipe racks at Habshan Plant - Phase 4 of ADNOC Gas Processing, UAE.

-    Feasibility Study for Crude Receiving facilities at Ruwais of ADNOC Refining, UAE.

-    Project Management Assistance (PMA) services for improvement of Fire fighting Facilities at Abu Dhabi Refinery for TAKREER, UAE.

-    Conduct Study on Upgradation of DEO Flow Meter Skids in Train-1, 2 and 3 in GASCO Ruwais, UAE.

-    DFR of 306 km White Petroleum Oil (Multiproduct) Pipeline from Chittagong to Dhaka for Padma Oil Company Limited, Bangladesh.

The following assignments were secured by the Company during the year and are in progress:

-    DFR for Petroleum Products Terminal and Jetty at Port Albion, Mauritius for State Trading Corporation (STC).

-    Additional PMC/ EPCM Services for new units, namely, DHDT, SWS and ARU in Dangote Refinery, Nigeria.

-    Structural Integrity/ Adequacy Check of existing pipe racks at Habshan Plant - Phase 4 of ADNOC Gas Processing, UAE.

-    Feasibility study of crude receiving facilities at Ruwais of ADNOC Refining, UAE.

-    Various Engineering Services Assignments were awarded under Technical Support Services Agreement (TSSA) by ADNOC Gas Processing, UAE.

-    Design and Detailed Engineering services for EPC for enhancement of Steam Condensate System at ASAB-2 and Implementation of PCR PE1695 Segregation of Hydrocarbon Flare Headers at Unit 13 Habshan-1 for DESCON Engineering Limited, UAE.

-    Detailed Engineering Services for recommended Synergy Tie-ins and MP Steam Lines at Ruwais Fertilizer Complex (FERTIL) for ALSA Engineering & Construction, UAE.

-    Development of Engineering Standards for Gas Distribution Network; various training programs on Heat Exchangers and Heaters and Technical Assistance by providing several engineering design services for BAPCO, Bahrain.

Turnkey Projects

EIL’s turnkey project portfolio consists of projects executed on LSTK mode or on the ‘Open Book Estimate (OBE)’ basis.

The following LSTK Project was commissioned during the year:

-    Coker Block of Resid Upgradation Project of CPCL, Chennai comprising DCU of 2.2 MMTPA and LPG CFC Treating Unit of 8.8 TPH.

The following LSTK/ OBE jobs witnessed considerable progress during the year:

-    Modification work at Hazira Plant under Daman Development Project of ONGC on OBE basis.

-    Installation of Lean Gas Compressor at Hazira Plant of ONGC.

-    Site grading, Offsite & Utility facilities with integration to existing refinery under Vizag Refinery Modernization Project.

-    BS-VI Project at Manali Refinery of CPCL.

During the year, EIL was successful in securing the following projects on OBE basis, which are now in progress:

-    Revamp of Slug Catcher at Uran Plant of ONGC in Maharashtra.

-    Revamp of SRU at Hazira Plant of ONGC in Gujarat.

Performance of Divisions Process Design & Development

The Process Design & Development Division is primarily engaged in providing design services for grass root as well as revamp projects in the field of Refineries, Petrochemicals, Oil & Gas & cross country Pipelines. The Division is also responsible for design of heat & mass transfer equipment namely columns, heat exchangers, fired heaters etc. & selection of material of construction for various applications, failure analysis as well as residual life assessment services. The activities undertaken by the Division include Configuration Studies using LP modelling techniques, Feasibility Studies including cost estimation & financial analysis, Technology Evaluation Studies for licensed technologies, Basic design of open art units, EIL licensed units as well as utilities & offsite facilities, Residual process design of licensed units, Detail engineering follow up, Pre-commissioning/ Commissioning, Plant start up assistance & Trouble shooting.

The Division is also actively involved in supporting Marketing Division towards securing new business for the Company from existing as well as new clients, both in India and overseas.

Prominent assignments undertaken by the Division during the year include the following:

-    Preparation of DFR for setting up a grassroot refinery in Mongolia based on local crude. This is the first assignment won by EIL from Mongolia.

-    Preparation of DFR for setting up grassroot Marketing Terminal facility for petroleum products at Mauritius. The assignment was awarded to EIL based on the Pre Feasibility studies (PFR) prepared by the Company.

-    Preparation of PFR & providing back up consultancy services for setting up of long distance inter-continental gas pipelines between Russia & India, TAPI pipeline between Turkmenistan & India & deep water gas pipeline from Middle East to India.

-    Preparation of DFR as well as FEED (Front End Engineering Design) for Chittagong-Dhaka multiproduct pipeline.

-    DFR for PDH/ PP facility at GAIL, Usar. The proposed PDH (Propane Dehydrogenation) facility of GAIL shall be the first PDH facility in India.

-    DFR for a new Bina-Panki multi-product pipeline for BPCL.

-    DFR for land based LNG terminal for Bangladesh.

-    DFR for Butene-I & HPG Unit at Brahmaputra Cracker & Polymer Ltd., Lepetkata, Assam.

-    PFR for Pet Coke Gasification for MRPL, Mangalore.

-    PFR for Ethylene Cracker and Associated Facilities at Rasayani for BPCL Mumbai Refinery.

-    DFR updation based on modified feed/ product profile for grassroot Petrochemical Complex at Kakinada for GAIL.

-    PFR for capacity expansion of IOCL’s Panipat refinery to 25 MMTPA.

-    Feasibility Study for expansion of Bina Refinery, BORL to 15 MMTPA with Integrated Petrochemical Complex.

-    Revised DFR for MREP (Phase-I) and hydrogen based Residue Upgradation Project (MREP Phase-II) for HPCL Mumbai Refinery.

-    DFR for CPCL’s 9 MMTPA Cauvery Basis Refinery Project.

-    Configuration Study for expansion of Mangalore Refinery, MRPL to 25 MMTPA.

-    Pre-Feasibility Study for a mega Refinery-cum-Petrochemical Complex on West Coast of India.

-    Configuration Study for PMC services for revamp of Captive Power Plant (CPP) at Vizag Refinery Moderisation project of HPCL.

-    Configuration Study for capacity expansion of IOCL’s Gujarat Refinery from 13.7 MMTPA to 18 MMTPA.

-    Feasibility Report for a Naphtha-based grassroot Petrochemical Complex in Bangladesh for Super Petro Chemical Limited. This complex may become the first petrochemical complex in Bangladesh.

-    Configuration Study, technology evaluation & basic design activities for grassroot Petrochemical Complex of HMEL at Bhatinda. The proposed complex includes a Steam Cracker of 1.5 MMTPA which is the largest capacity cracker being set up for the first time in the country. The project is being executed by EIL under EPCM mode.

-    Design of Sulphuric Acid pipeline from IOCL Haldia Refinery to loading jetty. Long distance pipeline for Sulphuric Acid transportation has been designed for the first time by EIL.

-    New DHDT unit is being set up at IOCL Haldia Refinery to produce Diesel fuel conforming to BS-VI quality specifications. The basic design of the unit has been done by Process Division & the Hydrotreating technology is jointly developed by EIL & IOCL. The unit is under implementation on EPC route with EIL as the PMC.

-    New NHT (Naphtha Hydrotreating Unit) is being developed at IOCL, Bongaigaon for feed preparation for downstream Isomerization unit to produce Gasoline fuel conforming to BS-VI quality specifications. This is the first NHT unit for which the Hydrotreating Technology has been jointly developed by EIL & IOCL and EIL has developed the conceptual and basic design package. The unit, being executed under EPCM mode, is at detailed design stage.

-    Completion of Commissioning activities for all grassroot and revamp units, utilities and offsites for Integrated Refinery Expansion Project at BPCL’s Kochi Refinery for enhancing the refinery crude processing capacity from 9.5 to 15.5 MMTPA.

-    Basic design & detail engineering of grassroot LPG Import Terminal facilities of BPCL at Haldia. The facility involves import & storage of cryogenic LPG in double wall cryogenic tanks.

-    Technology selection, residual process design & detail engineering follow up for grass root Sulphuric Acid plant based on sour gases for IOCL-Haldia. This facility is being set up for the first time in India.

-    Technology evaluation for selection of licensor for grassroot PDH and PP units of GAIL at Usar.

-    Licensor evaluation activity (NIT preparation) for Petrochemical Complex at Kakinada for GAIL.

-    Execution of BS-VI projects at six refineries of IOCL which involves implementation of process units, both grass-root & revamp, as well as matching utilities & offsite facilities for production of BS-VI quality MS & HSD products. Activities undertaken by Process Division for BS-VI project implementation include preparation of DFR for each refinery, technology selection, owner’s engineer for licensor package review, detail engineering follow up, preparation of FEED for units to be implemented on EPC mode & EPC bid evaluation.

-    PMC activities for FEED preparation at refinery of Eastern Refinery Limited, Bangladesh.

-    BS-VI implementation for HMEL which includes grassroot DHDT unit, revamp of existing Hydrogen Generation Unit (HGU) to enhance its capacity & revamp of associated utility & offsite facilities.

-    Capacity upgradation of select Process Units, Utility and Offsites facilities for Dangote Oil Refinery Company from 460,000 BPSD to 650,000 BPSD.

-    Basic design & implementation of grassroot Naphtha Fractionation Unit (NFU) project at ONGC Hazira Plant as part of Daman Development Project. The project, implemented under OBE mode, has been successfully commissioned.

-    Consultancy services including failure analysis & rectification measures for existing LPG Cryogenic Tanks of BPCL at Uran.

-    Flare System modification of Hidd Metering Station at Bahrain.

-    Replacement of existing SRU trains with new facility as part of SRU Revamping Project of ONGC at Hazira under OBE Mode.

-    Detailed engineering activities for CPP of HPCL at Mumbai & Visakh Refinery.

-    Licensor selection for Residue Upgradation facilities of HPCL’s Vizag Refinery Modernization Project.

-    License, Engineering, Procurement and Construction Management (LEPCM) Services for 500 TPD Methanol Plant of APL.

-    License & BDEP preparation for New SRU with TGTU at MRPL, Mangalore.

-    Pre-project activities including licensor selection, preparation of BDEP for CDU/ VDU, etc., for Rajasthan Refinery Project of HPCL Rajasthan Refinery Limited.

-    Licensing & BDEP preparation for Revamp of Coker-B & LPG Recovery Unit of IOCL, Barauni Refinery.

-    Commissioning of DCU of CPCL, Chennai.

-    Commissioning and Performance Guarantee Test Run of Feed Preparation Unit for IOCL, Haldia Refinery.

-    Pre-commissioning & Commissioning of NRL DHT Project.

-    Commissioning of grassroot Diesel Hydrotreater Unit and other associated facilities, i.e., CDU-3 (RMP), SWS, ARU, HGU, Utilities and Offsites for BPCL’s Mumbai Refinery.

Engineering

During the year, the Engineering Divisions of EIL continued their efforts towards providing optimized and value added services for all ongoing projects consistent with the client requirements and objectives of the Company. The various divisions maintained focus on key areas like System Improvement and quality of deliverables, enhanced productivity by adopting knowledge from past data, repeatability of design, enhanced software application and implementation of Electronic Data Management System (eDMS) along with improved information exchange and communication systems resulting in lesser manual interfaces. Major emphasis was laid on Automation and Standardization of systems, implementation of Internal Audit and Monitoring and updation of specifications standards and guides. Some of the major activities undertaken are as under:

Equipment Division

Equipment Division is providing engineering services for procurement of critical equipment. Some of the critical jobs undertaken by the division are as under:

-    Engineering for procurement of 1.2 MW rotary screw compressor for flash gas, 2 nos. 2.5 MWe and 1 no. 1.2 MWe Diesel engine based generating sets and 6 nos. 0.25 MW vertical in-tank centrifugal pumps for double wall tanks for LPG Import Terminal of BPCL.

-    Engineering for procurement of VFD fed electric motor driven mainline horizontal multistage centrifugal pumps (1.5 ~ 2.6 MW) and vertical centrifugal booster pumps for Palanpur-Vadodara Pipeline & Mundra-Delhi Spur pipeline of HPCL.

-    Engineering for procurement of VFD fed electric motor driven multistage centrifugal compressor (2.25 MW) for new lean gas compressor project of ONGC.

-    Engineering for procurement of 6 nos. 1.5 MWe, 1 no. 1.0 MWe and 1 no. 0.75 MWe Crude Oil Engine based Generating sets for OIL for Upgradation Project for enhancement of pumping capacity of Barauni-Bongaigaon-Guwahati Sector of Naharkatia-Barauni Crude Oil Pipeline Project.

-    Engineering for procurement of BOG reciprocating compressor (~1.0 MW) for LNG Terminal at Jaigarh for H-Energy.

-    77 MW ISO Rating Gas Turbine Generator (GTG) with Naphtha Fuel in Captive Power Plant of HPCL VRMP Project, Vizag.

-    Engineering for procurement of around 15 Reactors, 45 Columns, 250 Exchangers, 300 Vessels, 21 Tanks, 40 Compressors, 300 Pumps & 15 Other Packages for IOCL BS-VI Projects at six refineries.

-    Engineering for procurement of around 13 Reactors, 33 Columns, 100 Exchangers, 150 Vessels, 18 Tanks, 2 Spheres, 4 Mounded Bullets, 15 Compressors, 300 Pumps & 30 Other Packages for Cracker, LLDPE Swing, Butene-1 & Utilities and Offsite of HMEL Petrochemical Complex, Bhatinda.

-    Engineering for procurement of Sync Gas Compressor (~6.6 MW Centrifugal Gas Compressor driven by Steam Turbine) for Methanol Plant at APL, Assam.

-    Design and Engineering of double wall storage tank (both metallic) of 15000 MT capacity for LPG Import Terminal of BPCL.

-    Design and Engineering of Ethylene and Propylene Double wall storage tank (Inner-9% Ni and Outer- Pre-stressed Concrete) for HMEL Petrochemical Complex, Bhatinda.

-    Engineering for procurement of 5 nos. of High Rate Decanters (HRD) of diameter 15m and 4 nos. of Deep Cone Washers (DCW) of diameter 24 m along with rake mechanisms, based on proprietary technology of Licensor RTA, for NALCO.

-    Engineering for procurement of FCHCU Reactor of 250 mm thk Cr-Mo-V metallurgy of 1650 MT for HPCL VRMP Project, Vizag.

-    Engineering activities for RUF Reactor having 258 mm thk Cr-Mo-V metallurgy of 2000 MT for HPCL VRMP Project, Vizag.

-    Design of largest furnace (hot oil heater) in India for BPCL Kochi with a heat duty of ~90 MMKCal/ hour having the largest single radiant combustion chamber plan size of ~22 m x 18 m.

-    Augmenting the capacity of a huge CCR heater for Bina Refinery, BORL by integrating a new helper heater at its rear end.

-    Conceptualization & Design of the revamp work in multiple furnaces for Bina Refinery, BORL and HPCL Mumbai Refinery to achieve capacity enhancement.

-    Engineered package for Reformer Transfer Line for HTER installation wherein all residual design left by Licensor was carried out by EIL for HGU Revamp of HMEL.

-    Engineering and procurement for CPP of Ramagundam Fertilizer Project of RFCL.

-    Design, engineering & procurement of MCC package in SRU for projects of BORL & NRL.

-    Pre-Commissioning and Commissioning of IREP Utility Boilers, Heat Recovery Steam Generators & FG Cooler. For the first time in a refinery, steam from CPP was available for commissioning of CDU.

-    Engineering for procurement of 20” Marine Loading Arm for Mumbai Port Trust for Crude Unloading. The 20” Arm is one of the largest sizes to be installed in India.

-    Cryogenic H₂ Recovery system for RFCL, for the first time by EIL.

-    Detailed Feasibility Reports for new technology areas such as 2G ethanol & Dropping Fuels from waste bio-mass (Bagasse), first time by EIL.

-    Engineering for procurement of robot operated drum filling system for niche petrochemical final product filling (High filling rate, accurate positioning etc. specified in this system) for BPCL, Kochi.

-    Engineering for procurement of Tripper wagon loader of capacity 1000 TPH in Aishwarya Project, Haldia Refinery.

-    Engineering for procurement of unique type Coalescer, separating oil from bulk face (water).

-    Design, engineering & procurement of 4 nos. of unique Column Condenser systems having two stages of Integral Top mounted Condensers with entire MOC of the system as Austenitic Stainless steel in Acrylic Acid Unit of PDPP Project, BPCL, Kochi. These are being installed for the first time in India.

-    Design of Shell and Tube Exchanger for CPCL BS-VI with Alloy 6Mo (UNS S31254) which is a super austenitic stainless steel with a high level of molybdenum and nitrogen, providing high resistance to pitting and crevice corrosion as well as high strength compared with conventional austenitic stainless steels such as 316L.

-    Conceptualized and executed first heater package on complete Repeat Engineering basis, thus contributing to significant schedule advantage to client HMEL.

-    Conducted first International training program on Fired Heaters for BAPCO.

-    Site erection activity for NRL DHDT heater was completed in seven days due to conceptualization of job on modular basis.

Electrical Division

Major works performed by Electrical Division during the year include:

-    Implementation of 400 kV Gas Insulated Indoor Switchboard Panels for one of the projects being executed in EPCM mode. Till recently, EIL had been going in for maximum 132 kV & 66 kV as primary distribution voltage for mega projects like IOCL Haldia & OPaL (PMC mode) and DORC under execution in conventional mode respectively. For HMEL Petrochemical Project, 400 kV indoor GIS is being procured in view of space constraint in area earmarked near their existing 220 kV Switchyard.

-    Development and implementation of new specifications for XLPE insulated Fire Retardant Low Smoke Extra High Voltage Cables, suitable working voltage being enhanced from 66 kV to 220 kV. This has been implemented in view of mega projects like DORC and VRMP wherein 66 kV voltage cables have been used. In BPCL-Kochi BS-VI Project, 220 kV EHV cables are being procured and used.

-    Use of energy efficient electrical equipment/ systems has been initiated in all projects. As a responsible corporate having concern for global warming and reduction of carbon foot print, use of energy efficient motors of min. 1E2 type and 100% LED fixtures for lighting of process/ offsite and utilities have been initiated. This has been made as a standard practice for all projects being handled. For one of the projects, energy efficient motors of category 1E3 are being deployed. Besides this, all distribution transformers having rating upto 2500 kVA, 33 kV (Primary Voltage) complying to star 1 (Efficiency class) rating as per latest Govt. of India Gazette Notification order No.S.O.4062(E),S.O.513(E) are being procured and used in all current projects under execution. The standard specification for distribution transformers have been revisited and revised accordingly.

-    Revamping the Corrosion Protection system for LPG mounded storage tanks at HPCL Mangalore Refinery.

-    Cathodic Protection Revamp for entire KG Basin pipeline network and redesigning and installation of CP system.

-    CP System of under execution 500 km subsea pipeline of DORC project.

-    Design and implementation of Mumbai-Manmad rerouting pipeline having very high AC/ DC Interference zone area including HDD portion along the ROU.

-    CP design, survey and installation of new pipeline along with five existing pipelines from Jawahar Dweep to Pirpau, Mumbai Port Trust.

-    CP design, survey and installation of new pipeline along with existing pipelines for Dhobi-Durgapur & Durgapur-Haldia Pipeline Project of GAIL & NBPS Phase-II Project of OIL.

- Initiated use of Zinc Anodes in place of Magnesium Anodes for Cathodic Protection of Heat Exchangers due to reduced consumption.

Instrumentation Division

Instrumentation Division is always in the fore-front of latest digital technology. Total digital control systems & instrumentation is being used for plant controls. Instrumentation has also taken strides towards implementing IIoT (Industrial Internet of Things) in on-going refinery and petrochemical projects. In the on-going HMEL Petrochemical Project, Cloud based detailed engineering until FAT, simulation of plant graphics and logics through IIoT, Plant Development Model through OTS (Operator Training Simulator), Virtualisation Server & PC and usage of Universal I/O is being implemented.

In the recently commissioned IREP Project, advance diagnostic analysis system has been implemented for critical rotating equipment. Additionally, all the non-critical pumps are centrally monitored through wireless instruments & gateways in the DCS System which is a first for this scale of refinery. This same technology is being implemented in all subsequent on-going major projects like VRM Project of HPCL, DHT & GTU Projects of BPCL Mumbai Refinery and PDPP & MS Block Project of BPCL Kochi Refinery. Contribution of Instrumentation towards digitalisation & end to end work flow integration includes integration of data from Smart Plant P&IDs (SP-P&ID), Smart Plant Instrumentation Module (SPI) and Smart Plant 3D Model (SP3D) enabling smooth work flow & data flow from each of these modules. Conversion of in-house sizing software of instruments into web-based software to upgrade to latest technology & integration is presently underway. Control valve & safety valve have already been converted. For the BOM program, incorporation of all job standards and integration of work flow of Instrumentation with IPMCS of Piping and SORPS software has been carried out.

Three more Instrument engineers achieved certification from TUV as Functional Safety Engineers in accordance with IEC 61508/ 61511, bringing the total number of certified engineers to six in the department. This is a very prestigious accreditation which is required as pre-qualification in overseas projects especially in Middle-East.

Project Services

Costing

Cost Engineering Department provides cost related services for various projects in all fields of operations from inception to commissioning and beyond, for domestic as well as overseas jobs. Cost Engineering provides services such as preparation of capital cost estimates and financial/ economic analysis for diverse activities ranging from technology selection to preparation of feasibility reports and option study estimates for investment decisions pertaining to projects handled by EIL in various areas like Refineries, Petrochemicals, Fertilizer, Cross country pipelines, Power projects, Metallurgy, Mines, Strategic Storage, Offshore Oil & Gas, Infrastructure (such as Namami Gange and AMRUT) etc. It provides cost estimates for procurement and tendering, assistance during price negotiation, cost monitoring and control during execution of projects under conventional and LSTK mode of execution. It also prepares cost estimates for bidding in EPC contracts. Cost Engg. is also providing independent services like Project cost estimation, feasibility studies and review of the cost estimate prepared by others.

Cost Engineering has been maintaining historical data related to procurement and tendering of individual items ranging from nuts/ bolts/ gaskets to packages worth Thousands of Crores of Rupees since past two decades, which is unparalleled worldwide. This data bank is constantly updated based on the projects handled by EIL. The data bank has captured the historical data for all the projects handled by EIL, at item, unit and project levels. Cost Engineering prepares thousands of cost estimates annually, worth Crores of Rupees for various projects/ items with a wide range of value. This vast database provides capabilities for valuable support in decision making regarding investments, bid evaluation and award of contracts as well as effective cost control services.

Planning

The Planning Division continued to provide planning, scheduling, monitoring, project risk management and material control services to various projects. Using state-of-the-art tools and its database, the Division caters to diverse project execution roles of the Company, viz. EPCM, PMC, LSTK/ OBE modes. The Division also continued to provide project monitoring services to the Ministry of Petroleum and Natural Gas, as in the preceding years.

Supply Chain Management

The Supply Chain Management (SCM) Division, through its knowledge pool of experienced manpower, provides complete Supply Chain Management & Contracting Services to various domestic and global Clients besides serving EIL’s in-house requirements. These services include Supplier/ Contractor Registration, Contracting and Purchasing of Goods/ Services/ Works, Expediting, Inspection, Logistics, Supplier/ Contractor Performance Review etc. The Division contributes to successful execution of Projects being set-up through procurement of works, materials and services pertaining to specified quality within designated time at the most competitive price in a fair, just and transparent manner.

In the current year, orders for Rs.2,430 Crores of direct purchase and contracts were placed on suppliers/ contractors globally for various OBE/ LSTK/ Depository Projects. Also, for in-house requirements of EIL, orders for Rs.180 Crores of direct purchase and contracts were placed. In addition, orders for Rs.22,230 Crores were placed for other projects of various clients where EIL was the Consultant.

EIL, through its commitment and dedication has been instrumental in implementation of Government of India’s Public Procurement Policy 2012 for Micro and Small Enterprises (MSEs), and ensuring increased participation of MSEs in the Company’s procurement. EIL has procured goods and services of Rs.195 Crores from MSEs, which is around 23.63% of the total value of direct purchase orders for goods and service contracts, placed by EIL during the year 2017-18.

EIL is also focused for the growth of MSE sector and specifically for MSEs owned by SC/ ST entrepreneurs. The Company, in collaboration with SC/ ST bodies like DICCI, has organized various supplier event and product development initiatives. EIL, with its robust supplier enlistment management systems, has been able to develop transparent and accountable system and processes, for development of indigenous manufacturing capacity via proto-type route and other various development activities.

The Division carried out in-process and pre-dispatch inspection of critical equipment at suppliers’ works as well as at project sites through its regional Procurement Offices, located all over the country and overseas offices located at London, Shanghai and Milan.

Major items inspected include:-

-    Urea Reactor (Special chemistry ) having overall dimension of 2.74 m outer diameter x 20 m length (with 160 MT weight of three individual section each) for Ramagundam Fertilizers and Chemicals Ltd.

-    Coke Drum with dimension of 9.15 m outer diameter x 40 m length (with 530 MT weight in single section each) for IOCL Aishwarya Project, Haldia.

-    Two Chrome Moly Reactor with dimension of 3.1 m outer diameter x 38 m length (weight 456 MT single section each) and 3.1 m outer diameter x 48 m length (weight 541 MT single section) for IOCL Aishwarya Haldia Project.

-    Two Ammonia Converter (Special chemistry) having overall dimension of 3.6 m outer diameter x 33 m length (weight 608 MT single section) and 3.4 m outer diameter x 27 m length (weight 380 MT single section) for Ramagundam Fertilizers and Chemicals Ltd.

-    DHT Reactor having overall dimensions of 5.2 m outer diameter x 36.9 m length (weight 400 MT single section) for HMEL BS-VI Project.

SCM division has been playing a major role in development of Indian Industry. Under the Government of India’s “Make In India” drive, several steps have been taken to increase local industry participation and provide encouragement to overseas industry towards setting up plants in India. The suppliers developed this year under “Make In India” were primarily in the Rotating Machinery segment, which has significant import content. The initiatives under “Make In India” will facilitate import substitution in this segment.

Construction

The Division offers complete range of services for Construction Management including Contract Administration, Construction Quality surveillance, Feedback Analysis, HSE and Warehouse Management for various projects of EIL, withstanding diverse challenges and local impediments associated with climatic conditions, difficult terrain and space constraints etc. which are unique to the nature of the project.

During the year 2017-18, Construction Division continued to provide Construction Management Services for various clients at more than sixty diverse domestic project locations and four overseas locations.

Concurrent prestigious commitments for the Division include Vizag Refinery Modernization Project of HPCL, Aishwarya Project of IOCL Haldia Refinery, Revival of Ramagundam Fertilizer Complex, BS-VI projects of IOCL at Panipat, Vadodara, Haldia, Mathura, Bongaigaon and Digboi, MR-II project of HPCL at Mumbai, BS-VI project of HMEL at Bhatinda, BS-VI Project of MRPL at Mangalore, BORL-Bina, DHDT-NRL, BS-VI project of CPCL at Chennai, PDPP of BPCL at Kochi, AMRUT Project, Odisha, Rehabilitation Project in Algeria and Dangote Refinery in Nigeria.

Construction activities commenced for the following new domestic projects during the year:

-    HMEL Petrochemicals , Bhatinda

-    Rajasthan Refinery of HPCL

-    H-Energy, Ratnagiri

-    GTU of BPCL, Mumbai

-    DDHPL of GAIL, Jharkhand

-    Vijaipur-Auraiya Pipeline of GAIL

-    Jamnagar-Loni Pipeline of GAIL

-    Mumbai-Manmad Pipeline of BPCL, Mumbai

-    Palanpur-Vadodara Pipeline of HPCL

-    NBPS-II of OIL

-    MSBP of BPCL, Kochi

-    BSDC, Jaipur

-    IT Facilities for Deptt. of Information Technology & Communication, Govt. of Rajasthan

The Construction Division leverages its highly skilled and motivated team for establishing and monitoring adherence of Construction Quality Management system. The system advocates quality plans, inspection test plans and implementation of special processes for concreting, welding involving latest NDT techniques, digital radiography, ultrasonic test, software for piping management sytem etc. during all phases of construction to ensure trouble free commissioning/ operation of critical units.

The Construction activities for the following Projects/ Units were completed during the year:

-    DCU, CPCL , Chennai

-    IREP, BPCL, Kochi

-    Banggai Ammonia plant, PAU, Indonesia

-    GASCO, Abu Dhabi

-    DHDT, NRL

-    NBPS-I, OIL

-    TGTU, BPCL, Mumbai

-    SSNL, Gujarat

The Construction Division deployed a host of innovative construction techniques and improvised equipment/ machineries to minimize construction schedule across project sites, as mentioned below:

-    Modular construction of Tech Structure and Pipe rack

-    Pre-fabricated structures

-    Auto Blasting and auto beveling machines

-    Monsoon shelter/ hanging platform

-    Extensive use of Auto UT/ TOFD techniques as an alternative to hazardous conventional NDT method like radiography.

The Company’s commitment towards adherence of world-class Health, Safety and Environment standards in the execution of projects was epitomized by the multitude of accolades received from clients, during the year:

-    15 Million LTA free man-hours at Banggai Ammonia plant, Indonesia

-    18.1 Million LTA free man-hours at Aishwarya project of IOCL, Haldia

-    10 Million LTA free man-hours for RFCL, Ramagundam site

-    8 Million LTA free man-hours for PDPP, Kochi

-    5 Million LTA free man-hours at DHDT project , NRL

-    3 Million LTA free man-hours for DDP Hazira site

Environmental Engineering

EIL is committed to ensuring compliance to all health, safety and environment requirements during delivery of products/ services to customers. Minimizing environmental impact by conserving resources, reducing waste generation and preventing pollution in all our activities have always been an integral part of our policy. The Company has also been providing solutions for water resources management while protecting or restoring our major water ecosystems. EIL helps enable the adoption of innovative & integrated water and wastewater management for industries & municipalities, while working to increase environmental, social and economic benefits.

EIL’s commitment to sustainable environment is underscored by the fact that the Company has a dedicated environment & water group, which has completed several hundred projects in diversified fields of environmental engineering, including water & waste water treatment; effluent recycle and zero discharge projects; Environmental Impact Assessment studies; environmental audits; air quality assessment, modeling & control; ground water monitoring studies; solid & hazardous waste management; oily sludge management; volatile organic carbon (VOC) & fugitive emissions control; site assessment and remediation; environmental health & risk management; environmental management plans; etc.

Some of the major projects undertaken by the Company during the year include the following:

-    PMC services for HPCL Visakhapatnam Refinery Modernization Project for construction of RO based sea water desalination plant and integrated effluent treatment & recycle facilities to minimize fresh water consumption by refinery.

-    Consultancy services to ONGC for techno-commercial & environmental feasibility study for construction of desalination plants at Mori, Kesanapalli and Malleshwaram fields of Rajahmundry Asset.

-    PMC services for HMEL Bhatinda Polymer Addition Project for construction of entire water & wastewater treatment facilities including effluent recycle and reuse.

-    PMC services for AMRUT Project (Atal Mission for Rejuvenation and Urban Transformation) in Odisha for construction/ rehabilitation of Raw Water Treatment Plants.

-    Completed feasibility study for ADNOC Refining Company, Abu Dhabi for Wastewater Management at Ruwais Refinery East and Abu Dhabi Refinery Divisions.

-    EIA studies for Ratnagiri Refinery & Petrochemical Complex; GAIL’s Petrochemical Project at Usar; HPCL’s Rajasthan Refinery Project & Township; BPCL’s 2G lingo-cellulosic based Ethanol Plants at Bargarh, Odisha & Bina, Madhya Pradesh were successfully carried out by EIL for its clients.

-    EIL has been accredited by Quality Council of India (QCI) for carrying out EIA studies in India and the accreditation is valid till 2019. EIL has now been accredited in fourteen sectors including a new sector ‘Distilleries’.

Research & Development

EIL has continually endeavoured to deliver optimum services to the clients by providing value addition and leveraging technological advances. It is with this objective of fostering the spirit of innovation and creativity in the organization that the Research and Development

Division was established. R&D has contributed significantly in the consolidation of existing capabilities, development of new technologies and hardware besides enhancement of the portfolio for special technology related services. The Division is pursuing developmental activities, both in-house and in collaboration with academic institutes like IIT Delhi and other R&D organizations like IOCL(R&D), CSIR-IIP, BPCL(R&D), HPCL(R&D) etc. Apart from these established R&D organizations, EIL (R&D) has also been collaborating and cooperating with small companies to promote the creative ideas generated by them.

During the year, R&D Division undertook following initiatives for development of new capabilities and up-gradation of existing capabilities:

Technology development projects initiated:

-    Development of Amine Purification Process with efficient resin

-    Modification of gasifier pilot plant for sustainable operation

-    Study of cross flow reactor hydrodynamics through Computational Fluid Dynamics (CFD) modeling

-    Radio tracer studies with porous spherical alumina type of catalyst to characterize hydrodynamics of improved 3 phase reactor configuration for hydroprocessing applications

-    Minimum fluidzation velocity studies in 2 Dimensional cold flow set up

-    Development of databank for potential coal gasification

-    Production of Di Methyl Ether (DME) from Methanol

-    Development of De-Foaming Cyclonic Device for liquid-gas separation

-    Development of high level Oxygen Enrichment Technology for capacity enhancement of SRU (- 35%)

Technology commercialization efforts:

Sustained efforts towards commercialization of developed knowhow and technologies have yielded following results during the year:

-    Grass root design of Tail Gas Treating Unit (TGTU) with EIL technology completed for MRPL.

-    Commissioning of TGTU of HPCL Mumbai Refinery licensed by EIL.

-    Commissioning of two Sulfur Recovery Units (SRU) of BPCL Kochi Refinery, each with 340 TPD capacity, successfully completed.

-    Commissioning of two TGTUs of BPCL Kochi Refinery with EIL technology, completed successfully.

-    Commissioning of CDU/ VDU (Vacuum Column) with EIL patented PARLPAK at IREP-BPCL-Kochi.

Following major jobs were received by R&D during the year:

-    Implementation of IndDSK unit at Paradip and Gujarat Refinery of IOCL.

-    Implementation of IndeSelect unit for IOCL Guwahati Refinery.

-    Indjet unit for IOCL Barauni Refinery.

-    Feasibility Report prepared for 2G Ethanol Plant for MRPL.

-    Licensor selection and DFR preparation for 2G Ethanol plant to be set up at Khamgaon, Maharashtra for BPCL.

-    Licensor selection and DFR preparation for 2G Ethanol plant for MRPL.

-    Energy Efficiency Improvement Study of 15 PSU Refineries being coordinated by Centre for High Technology (CHT).

-    As part of PAT cycle-4, activities have been initiated for collaboration with Bureau of Energy Efficiency (BEE) for carrying out energy efficiency studies in petrochemical area.

-    Understanding has been reached with NRL for setting up technology demonstration unit for Above Ground Sulfur Seal technology developed in-house.

Initiatives taken for strengthening technology tie ups:

To take advantage of research being done at various international research consortia, EIL has renewed the existing membership of the following International Research consortia:

-    Process Science Technology Center (PSTC), an industry-academia collaborative research program initiated by University of Texas, USA

-    Fractionation Research Incorporated (FRI), a non-profit cooperative research organization based at Oklahoma, USA

-    Process Integration Research Consortium (PIRC), University of Manchester, UK

Patents/ Trademarks filed/ granted:

EIL has been awarded 26 technology patents and 24 other patent applications are under evaluation. To safeguard EIL’s knowhow and technologies, the following patents have been filed during the year:

-    Novel gas-liquid inlet diffuser for Cocurrent downflow trickle bed Reactor.

-    Ion exchange resin process for removal of Heat Stable Salts (HSS) from alkanolamine solution.

-    Apparatus for deoxygenation of water and process for the same.

-    A device for recovering and separating a low pressure fluid.

-    Low pressure system and process for recovering anhydrous ammonia from sour gas.

-    Method for optimizing energy in a process carried out using a system.

The following patents filed earlier have been granted during the year:

-    Patent No. 283193 granted on 09.05.2017: A Novel Method for Recovery of Ethane/Propane and Liquefied petroleum gas from LNG.

-    Patent No. 291143 granted on 28.12.2017: Improved process for removal of Disulphide Oil from Caustic.

-    Patent No. 291293 granted on 02.01.2018: Recovery of Sulphur by using oxygen enriched air.

-    Patent No. 293679 granted on 01.03.2018: A process and system for re-utilizing waste nitrogen gas coming from nitrogen plant.

-    Patent No. 294749 granted on 22.03.2018: Recovery of Sulphur Slurry by using hybrid membrane-filter system.

Trademarks applied and granted:

-    Two Applications for registration of Trademark pertaining to inhouse technologies have been made during the year to enhance the brand image of the company.

-    Two nos. Trademarks have been granted in the year.

Information Technology Services

Information Technology Services (ITS) Division continued to make advances, providing high-tech IT enabled services to EIL’s mainstream activities by developing/ implementing IT solutions to deliver better quality services with emphasis on increased efficiency and improved productivity. Various initiatives were taken during the year as enumerated below:

-    Conceptualisation and Design of complete IT infrastructure including Data centre, LAN network and IT security for Nuclear Fuel Complex, Kota with over 60+ buildings.

-    In-house developed web based application for Supply Chain Management launched. This application will bring automatic work flow for end to end procurement activities.

-    State-of-the-art application developed for contract management to enhance the project progress on real time basis.

-    Automatic work flow based application developed for marketing pre-award activities to facilitate marketing strategies and implementation.

-    Successful implementation of in-house developed IT enabled GST system in financial accounting applications, for all financial transactions as per GOI directive.

Sustainable Development

EIL’s sustainability mandate has evolved from compliance to environmental regulations and norms in a way that make it a responsible organization, transparent to all its stakeholders. The Company’s project designs support sustainability right from conceptualization to plant commissioning and subsequently, the commercial operation. Energy efficiency, resource optimization and safety of plant personnel and society at large are the cornerstones of our business operation. They also ensure business continuity.

EIL has refocused its engineering philosophy and business models to achieve long term sustainable growth. It has also initiated evaluation and reporting of performance on the triple bottom lines pertaining to economic, social and environmental aspects. The sustainability initiatives at EIL shall definitely propel the organization on an upward growth trajectory.

Separate Report on Sustainable Development is annexed to this Report.

Corporate Strategy & Business Development

Corporate strategy and plans for diversification are imperative for any organization with a vision and long term perspective. Corporate Strategy and Business Development (CS&BD) division performs the role of evaluating market opportunities, pursuing business development initiatives, venturing into new geographies, initiating tie-ups with licensors/ vendors/ collaborators and augmenting the portfolio of EIL by diversifying into sunrise sectors.

The division has been mapping the evolving market scenarios and developing strategies required for envisioned growth of the organization. In the current market scenario, it is essential that EIL, while harnessing its core strengths, should also explore projects in sunrise sectors and new geographies. Thus, the CS&BD Division while focusing on core hydrocarbon sector requirements; also are seeding ideas and exploring business possibilities with new and potential clients.

As part of enhanced value creation, CS&BD has been in continuous dialogue with various licensors/ technology providers, with the objective of collaboration and provision of a bouquet of niche services to the owners.

The CS&BD Division has initiated sustained business development activities in sectors like Bio Fuels, Water and Waste Water Treatment, Urban Infrastructure like Smart Cities, LNG Terminals, Fertilizers, Airports, Ports and Harbours, Defence, etc as a part of possible diversification initiatives. Sustained BD efforts are also under progress with prospective clients, ULBs, Municipal Corporations and respective state governments in this direction. EIL has also initiated active suo motu studies and opportunity mapping in Port & Terminals, LNG value chain and Defence sector in alignment with Government of India initiatives.

Through a self sustaining seeding exercise and extensive outreach approach, Corporate Strategy & BD division is focused towards enhancing the footprint of EIL and augmenting the current business portfolio.

HSE Management System

During the year, your Company continued to accord highest priority to Health, Safety & Environment (HSE) across its operations. The Company maintained its OHSAS 18001 (Occupational Health and Safety Assessment Series) and ISO 14001 (Environmental Management system) certification. During the year, the Company’s HSE Management System was upgraded against the requirements of the latest version of ISO 14001, i.e. ISO 14001:2015. The certification agency has assessed and declared that the HSE Management System of the Company conforms to the requirements of ISO 14001:2015 standard and continues to conform to the requirements of OHSAS 18001:2007 standard. The Certificate of approval is valid up to 14.12.2020. Apart from ensuring effectiveness of the HSE Management system, these certifications enhance chances of securing business, especially overseas.

On the operational front, Emergency Preparedness and Response Plans (EPRP) are in place across all office locations of EIL to secure safety of its employees and assets. Regular mock drills are being conducted to test and improve the preparedness towards emergencies. Awareness about HSE is maintained through HSE Newsletter as well as classroom sessions.

On the engineering front, HSE aspects that are to be addressed in the design engineering phases are built into the procedures of various engineering departments. Exhaustive HSE checklists are in place to ensure that these aspects are complied during design and engineering phases. Being a renowned engineering consultant in the hydrocarbon sector, your Company uses proven risk assessment methodologies like HAZOP, RRA, QRA and SIL to ensure the process safety of the plants being designed.

On the construction front, the specification for HSE Management at construction sites, which specifies the HSE requirements to be complied by construction agencies, has been revised during this year in line with the current trends and to improve the HSE performance. Quantitative scoring system for measuring contractors’ HSE compliance, upfront analysis of HSE aspects of the construction sites through constructability study are a couple of other examples of improvements implemented during this year. On achieving 1 Million LTA free Man hours, your Company is issuing Recognition Certificate to Contractors.

Quality Management System

Quality is inbuilt into the processes, workplace, deliverables and services of your Company. During the year, Quality Management System of your Company was reassessed, vide external Surveillance Audit for continual conformance to ISO 9001:2015 by third party certification agency. The Quality Management System of your Company continues to conform to the international standard ISO 9001.

Important ingredients of our quality initiatives are effective & comprehensive Internal Quality Audit process, planned customer perception surveys, analysis of feedbacks from stakeholders and regular reviews & directions from the Management Review Committee (MRC) and Executive Council (EC). The MRC is chaired by the C&MD with all functional Directors being members. The Executive Council is chaired by senior Executive Director, and senior officials from all areas of operation & functions are members of the committee. Regular monitoring is done to analyze the data & feedback for recommending improvements in processes, deliverables and QMS to reduce costs, shorten cycle time, address cross functional issues, improve visibility and credibility. QMS implementation and its effectiveness have been further increased by using in-house developed software.

The Quality Management System of your Company’s Abu Dhabi office was also separately audited and reassessed during surveillance audit and declared conforming to ISO 9001: 2015 standard.

In addition, the Company participated as a prominent and active member in various committees for formulating quality system standards under the aegis of Bureau of Indian Standards. Quality Management System of your Company provides the competitive edge in securing and executing projects with focus on full customer satisfaction.

Risk Management

The objective of Risk Management in the Company is to act as an enabler in maintaining business continuity, its competitiveness and ensuring execution of projects within budgeted cost, time and quality, resulting in improved turnover & profitability apart from ensuring business resilience.

Your Company has in place a robust Risk Management framework which facilitates identification, assessment and mitigation of Risks. Your Company’s Risk Management framework is based on ISO 31000:2009 (Risk Management Principles and Guidelines) and meets regulatory requirements. The Risk Management framework of your Company is overseen by the Risk Management Committee of the Board. During the year, your Company’s Risk Management process has been further fine tuned to meet the changes in the regulatory requirements and has also been integrated with the Quality Management System of the Company, as required by ISO 9001:2015. The integration of the Risk Management system with the Quality Management system has provided an added advantage by further ingraining Risk Management into the day to day working.

Your Company has identified 25 Key risks across various business processes namely Procurement, Construction, Project Management, Marketing, Human Resources, Legal, Accounts & Recovery. Mitigation plans are in place for these risks and are being deployed across the organization. An independent group (Corporate Risk Assurance) audits the implementation of these mitigation plans regularly and the results are presented to the Risk Management Committee of the Board. Your company uses its in-house software package ‘Enterprise Risk Management System (ERMS)’ to conduct these audits as it enables seamless audits across multiple locations, departments of your Company.

Being a Project Management organization, Project Risk Management framework has been put in place so that project specific risks are identified, assessed and mitigated. Regular Risk Management meetings are conducted and reports are issued to the stakeholders. Numerical Risk scoring mechanism is in place to identify the important risks (Critical, Major). To add teeth to the Project Risk Management activities, your Company has certified Project Risk Management Professionals in place. Apart from enabling in-house project management, the Project Risk Management process is also seen as value addition to the clients. During the year, your Company has developed a Project Risk Management database which acts as a reference database of all Risks that have been encountered in past projects. This database is facilitating the new projects to quickly identify possible Risks.

The status of Enterprise Risk Management (ERM) & Project Risk Management (PRM) Systems is presented to the Risk Management Committee of the Board. The reporting structure meets regulatory requirements.

To spread awareness amongst the employees, a digital newsletter ‘Risk Screen’ is being issued to all employees. The newsletter covers case studies, survey reports and best practices on Risk Management apart from apprising the employees on the Risk Management updates within the company.

Being a strong believer of continuous improvement, EIL is continuously strengthening its risk management capabilities in order to protect the interests and enhance shareholder value.

Vigilance

CTE type examination of EIL’s jobs on LSTK/ OBE basis, random inspection of in-house contracts/ purchases, scrutiny of Immovable Property Returns, investigation of complaints etc. were carried out during the year by the Vigilance Division, with the focused objective of ensuring conformity to the Company procedures and Government guidelines.

For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/ CVC were examined and necessary actions were taken. System improvements were suggested to the Management & necessary measures were undertaken for improvement by way of issuance of around 30 system improvement advisories.

As part of observing Vigilance Awareness Week 2017, a series of programs were held in line with this year’s theme “My Vision -Corruption free India.” During the period, three seminars were organized on the topics “Frauds in e-procurement and solutions”, “Key features of arbitration in India & Vigilance issues” and the third was organized with the active support of SCM Department on the subject “Enhancing SC/ ST entrepreneurs participation in Public procurement” with an intention to create awareness about Public Procurement, its imperatives, precautions to be taken, opportunities for SC/ ST Entrepreneurs in EIL and the benefits provided under various schemes. Besides all the above, awareness programs/ competitions were organized involving local community, at Colleges/ Schools in the areas around various sites.

During this period, Vigilance released its annual journal named ‘ABHIJATASYA’. A ‘Vigilance Logo’ and ‘Vigilance Statement’ for the Company were also released during this period. The ‘Visitor Management System’ was made online and linked with administration of ‘Integrity Pledge’ by the visitors.

As per directions issued by the Central Vigilance Commission and the Department of Public Enterprises, details of vigilance activities were also presented to the Board for the period ending June 2017 and December 2017.

Vigilance continued to monitor the progress of the following program(s)/ policy (ies):

-    Leveraging Technology

Reverse auctioning, e-tendering, e-payment, e-receipt, etc are already implemented in the Company and being monitored regularly against the set targets. Clearance of vendors’ bills on ‘First in, First Out’ (FIFO) under Bill Tracking system (BTS) is ensured. BTS has provision for details about pendency of vendors’ bills.

-    Complaint Handling Policy (CHP)

As per CVC Guidelines, EIL has formulated ‘Complaint Handling Policy (CHS)’ to resolve complaints/ grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is available on the Company’s website which is regularly monitored by Vigilance with respect to the status of complaints.

-    Job Rotation

Job rotation of sensitive posts is being done & reporting of the same is being done on monthly basis.

-    Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all of its business dealings. In EIL, Integrity Pact Program was adopted in November, 2011 for all Contracts & Purchases on EIL’s account for enquiries having threshold value over Rs.5 Crore. The threshold value has now been lowered from Rs.5 Crore to Rs.1 Crore.

-    Online Vigilance Clearance (OVC) & Scrutiny of IPRs

On line Vigilance Clearance and Immovable Property Returns of employees is being carried out through Vigilance website -”Avalokan” on OVC portal.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth. EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company which is in-line with DPE guidelines.

Internal Audit

The Company has an Internal Audit Department having competent professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports are regularly submitted to the Management and the major findings are presented to the Audit Committee of the Board.

Corporate Management Information System

To help improve Resource Engagements, Automation of Employee Centric Systems and Real-Time Management Information on both Projects, Manpower and Future Workload aspects, Company has created a Corporate Management Information System Department having multi-disciplinary professionals. During the year, several automated software modules have been launched by the Department resulting in improved resource engagement and optimization along with various automated reports for the Company Management.

Human Resource & Industrial Relations

People are at the heart of Company’s business as the quality of services that the employees deliver directly impacts the results of the organization. HR thus endeavours towards developing a motivated workforce which is committed and aligned with the organization’s strategic goal and objectives. Employee-centric policies and development initiatives drive the human resource to deliver their best. The policies are regularly re-visited and updated to keep them relevant.

HR has enhanced its strategic role with the business and got directly associated with different project verticals providing services in delivery of projects.

As on March 31, 2018, EIL had 2827 employees, including 2339 professionally qualified employees. Approximately 2.47% of our employees are located outside India, functioning in international work environments.

-    Talent Acquisition

Our talent acquisition strategy aims at identifying and developing a well equipped talent pool. Diverse recruitment models are employed to meet dynamic business needs with intake of fresh talent, domain specialists, short term hiring through outsourcing and onboard consultants/ advisors. Planned job rotation has been implemented for optimum utilization of available human resources.

-    Performance Management System

In the area of Talent Assessment and Appraisal, EIL has in place a robust and transparent Performance Management System that gives weightage to both performance and potential. The Performance Management System is an online process. The outcome of Performance Management System is used for career progression, performance related pay, training & development and succession planning.

-    Employee Welfare

During the year, efforts were made for aligning welfare measures towards enhancement of the quality of work life for employees. Various employee welfare initiatives were taken ranging from organising talk-cum-interactive sessions on Health & Lifestyle Enrichment, extension in medical benefits, coping with stress etc. besides sports and other family get-togethers for enhancing the quality of life.

-    Thrust on Sports

Providing a supportive role in health & fitness, EIL promotes a culture of sports by organizing weekend sessions and inter-departmental tournaments for participation in PSPB Tournaments. EIL organises indoor sports like Table Tennis, Carrom and Chess after office hours and weekend sessions of Badminton and Tennis. Employees are also encouraged to participate in Marathons, various trekking expeditions, sports tournaments at regional and national levels. EIL employees participated in seven PSPB Tournaments during the year.

-    Annual Awards

Recognizing the contribution of team(s) and individuals, employees were felicitated in following categories of Annual Awards

-    Best Employee of the Year in Staff Category

-    Young Executive of the Year

-    Innovation Awards-Individual Innovation & Team Innovation

-    Technical Paper Writing

Annual Awards for year 2016-17 were presented on the occasion of 71^st Independence Day on August 15, 2017. A total of 33 nos. employees were awarded in different categories.

-    Training & Development

In alignment with organizational objectives and business strategy, the Training Department extended support towards individual and organizational development.

Structured training programs were organized on specialized subjects for clients, both in India and abroad, as open and customized training modules which generated revenue for the Company and also showcased EIL’s outstanding technical knowhow. Programme on “Materials Corrosion Engineering” and “Refractory Design Engineering & Application” were conducted for BAPCO, Bahrain and “Training for Instrumentation Engineers” at HPCL, Visakh Site.

Customized training program on Offshore Engineering for engineers of ONGC consisting forty modules was successfully completed in July, 2017. The program was highly appreciated by the participants and is a source of revenue stream for the Company.

As part of Government of India’s “Skill India Mission” on providing thrust to “Skill Development”, 226 nos., apprentices were engaged during FY 2017-18 and apprenticeship training in various disciplines was provided at Head Office, Branch/ Regional Offices and Construction Sites. During the year, 55 nos. of apprentices successfully completed their one year Apprenticeship Training and were issued Training Completion Certificate.

Leadership Development Program (Aarohan) with focus on delivering core leadership skills in line with EIL ‘Competency Model’, ‘Group Development Outcome’, ‘Individual Learning & Development Plan’ was imparted through a mix of case studies, simulation-based exercises, interactive games, role plays, videos and concept based movies to a group of 28 participants in GM/ DGM Level.

As part of joint initiative with Oil PSUs under the MoP&NG, a two-day Seminar on “Coaching for Organization Culture and Leadership Development” for executives of Oil Industry by Mr. Marshall Goldsmith, world renowned business educator & leadership coach was jointly organized during February 18-19, 2018 at ONGC, Mumbai in which 24 senior officers of the Company participated. The participants had an opportunity to listen to Mr. Marshall, interact with him, and address their concerns about various challenges they face as leaders .

As part of ‘Swachhta Hi Sewa’ (SHS) Campaign, ‘Public Sector Day Celebration’ and ‘National Productivity Week’, various Workshops and in-house Essay Writing Competitions, Slogan Writing Competitions and Painting Competitions were organized.

In an endeavour for professional and domain enhancement of personnel, 242 participants were also nominated to 58 various external training programs organized by reputed organizations and institutions in India and abroad.

-    Mentorship Development

With an objective to foster professional relationships and provide a forum for offering constructive advice to support the career development of the mentee, EIL supports a Mentorship Development Programme allocating trained mentors in the ratio of 1:3 (Mentor: Mentee) for all new entrants to the organization. Structured interactions are encouraged for building positive relationships between the mentor & mentees for long time benefits, both to the mentee and the organisation.

-    Leveraging IT in HR

IT assisted HR processes are regularly updated to comply with existing rules and policies with emphasis on ease of use and user friendly GUIs (Graphic User Interface). More than 700 news items/ reports were uploaded on web based EIL Connect which recorded more than 17 Lakh hits during the financial year, thus continuing its efficacy in maintaining an interactive environment with employees located in India and abroad.

-    Implementation of Government Directives on Scheduled Caste/ Scheduled Tribes

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavouring towards safeguarding the interests of SC/ ST employees.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ ST employees. Management also encourages communication with the office bearers of the SC/ ST Employee’s Welfare Association by holding period meetings with the Association.

Scholarships were awarded by EIL to 44 nos. SC and ST (SC-32 and ST-12) undergraduate engineering students.

The percentage of employees belonging to Scheduled Castes and Scheduled Tribes was 18.8% and 4.6% respectively, out of the total employee strength of the Company (as on March 31, 2018). Regular meetings were held with representatives of SC/ ST Welfare Association and Liaison Officers for redressal of their grievances/ concerns.

-    Initiatives for the benefit of Persons with Disabilities

EIL is implementing the provisions of the Persons with Disabilities Act, 1995 by way of providing reservation for Persons with Disabilities. Special Recruitment Drive for Persons with Disabilities (PwDs) was carried out in FY 2017-18. As on March 31, 2018, there were 42 nos. (i.e., 1.48%) PwD employees on the rolls of the Company.

-    Women Development

Women constitute approximately 12.2% of EIL’s human resource, wherein 86.67 % are in the officer cadre. EIL has in place, a Women Forum comprising of senior officials as Patron, Chairperson and Co-Chairperson, to cater to the development needs of women employees.

Adequate opportunities are made available to women employees for participation in National as well as International Conferences and Symposiums so that they benefit from the knowledge of Industry and Domain Best Practices.

Corporate Social Responsibility

EIL’s CSR policy aims at creating a sustainable environment through its activities for community and environment.

As per Companies Act 2013, a budgetary allocation of 2% of the net profit made during three immediately preceding financial years has been made in the Financial Year 2017-18 for CSR activities.

Education: Major initiatives undertaken by EIL in the domain of education include support towards providing computer literacy to children from backward segment of society in Delhi/ NCR and holistic educational programme for development of underprivileged children in Kolkata, West Bengal. In order to facilitate quality education for children of remote areas, EIL supported the setting up of smart classes in Kamdhenu Public School in Phoolpur, Uttar Pradesh and is supporting the construction of Government School Building in Kabennur, Karnataka. With an objective of creating inclusive education opportunities for children with Intellectual Development Disorder, EIL is conducting 10 nos. workshops for training of teachers so as to address the teaching needs of such students.

Health Care: In order to extend advanced health care services to poor and needy people residing in remote villages of Odisha, EIL provided Mobile Medical Care Unit equipped with Dental Unit, Eye Unit, Laboratory and OPD Unit.

Drinking Water/ Sanitation: EIL supported the restoration and development of Anjani Kund site at Palwal. The Company is also supporting the construction and installation of three water purification plants (ROs) in villages of Sheohar district, Bihar.

Rural Electrification: EIL supported installation and commissioning of 100 nos. solar photovoltaic based LED street lighting systems in various villages of Poornia District, Bihar.

Environment Protection/ Sustainability: To reduce the burden of plastic waste in the holy city of Mathura, EIL is providing support towards setting up a 5 TPD plant for conversion of waste to fuel. Plastic waste shall be collected from segregated Municipal Solid Waste and processed to convert it into value added saleable products viz., fuel. The CSR initiative will contribute towards Swachh Bharat Abhiyan mission of Govt. of India.

Women Empowerment: EIL conducted livelihood training in cottage industry and basic IT (Information Technology) skills for 5,000 nos. women belonging to backward sections of the society at various locations of Delhi.

Functional literacy programme in Mushroom Cultivation and BeeKeeping is being conducted for 120 nos. tribal women at Bolangir District in Odisha.

Upliftment of underprivileged: EIL supported distribution of adult diapers among bedridden and elderly patients across 30 nos. slum areas of Delhi. The Company also conducted eight camps for distribution of assistive aids and appliances to poor & needy Persons with Disabilities, one each at Udaipur, Kota, Delhi, Haldia, Kochi, Udupi, Ratnagiri and Dharamshala.

For well being of old underprivileged people, EIL supported the distribution of ‘Multi-Facility Health Package’ in 12 nos. Old Age Homes at Odisha, Tamil Nadu, Gujarat and Maharashtra.

Community Development: Construction of RCC retaining wall/ road side drains/ Compound wall at Yanam.

Vocational Training/Skill Centres: To promote the Skill India mission, EIL has joined hands with Oil PSUs to set up Skill Development Institutes (SDIs) at Ahmedabad, Bhubaneswar, Guwahati, Raebareli, Vishakhapatnam and Kochi which would provide vocational training to youth.

For welfare of Persons with Disabilities (PwDs), EIL is also conducting Skill Development Training for 1200 nos. PwDs in various trades across its area of operation.

Make In India

“Make In India” is a flagship initiative launched by the Hon’ble Prime Minister with an objective to revive and revitalize the manufacturing sector in the country. As part of the “Make In India” campaign, your Company has been pursuing several initiatives:

-    Contribution to Government’s Policy formulations to encourage indigenization

-    Vendor interaction to upgrade indigenous manufacturing technologies

-    Indigenization of equipment manufacturing to increase domestic content

-    Vendor enlistment/ enhancement through continuous interaction, assessment and evaluation

-    Relaxation of PTR criteria for 51% owned subsidiaries

EIL is piloting the midstream sectors for Make In India initiative under MoP&NG and is a member of the Steering Committee set up for the purpose. To this effect, regular supplier meets are being organized for interaction with the specific domain based industries and empanelment of suppliers through an online web based process.

EIL has been actively engaged with MoP&NG and other Oil & Gas sector organizations for this initiative through participation in several stakeholder meets and contributing to various draft policy formulations such as Purchase Preference for Local Content Policy which has now been mandated under the ambit of Make In India. Official Language

With an objective to promote the usage of Official Language in communication, various initiatives like organizing workshops and conferences, participation in TOLIC activities, competition for the Undertakings under the aegis of TOLIC, Gurugram, facilitating Unicode tools in all computers etc. were undertaken. During Hindi Fortnight celebrations from September 1-14, 2017, various competitions were organized to encourage the progressive use of Hindi. On this occasion, HODs/ Head of office and respective Hindi Coordinators who undertook maximum work in Hindi during the year were felicitated. The Company was bestowed with the Consolation Prize of Petroleum Rajbhasha Shield by the Ministry of Petroleum & Natural Gas for the excellent work done for propagation of Hindi during FY 2016-17, Best Rajbhasha award for progressive Official Language Implementation for year 2017, Award for conducting Hindi competition for member organizations of TOLIC Gurugram by Ministry of Home Affairs, Department of Official Language under the aegis of Town Official Language Implementation Committee, Gurugram.

Awards and Accolades

EIL was the proud recipient of the following awards and accolades during the year:

-    Best Indigenous Innovator Award at 21^st Refinery Technology Meet being organized by Centre for High Technology (CHT), MoP&NG at Visakhapatnam during April 20-22, 2017.

-    FIPI ‘Project Management -Company of the Year’ Award for the year 2016 jointly with BPCL.

-    5^th Governance Now PSU Award for “Consistent Growth” in Navratna Category.

-    10^th CIDC Vishwakarma Award for Best Construction Projects to DHT Project at BPCL Mumbai Refinery.

-    10^th CIDC Vishwakarma Award for Construction Health, Safety and Environment to Daman Development Project at Hazira.

-    Institute of Public Enterprises’ Women of Excellence Awards-2017 to four women executives of EIL.

Joint Venture

Ramagundam Fertilizers and Chemicals Limited (RFCL)

RFCL has been incorporated as a joint venture company of Engineers India Limited (EIL), National Fertilizer Limited (NFL) and Fertilizer Corporation of India (FCIL), for setting up a new Urea and Ammonia plant at Ramagundam in Karimnagar district of Telengana. The JV will be responsible for setting up a fertilizer complex consisting of ammonia & urea plant of 2200 TPD and 3850 TPD capacity respectively. Engineering activities for the project are almost complete. Ordering of all equipment has been completed and equipment are being received progressively at site. All work contracts have been awarded. Site activities are in full swing with civil works nearing completion and mechanical works in progress.

Subsidiary Company

Certification Engineers International Limited (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from VMC, SMC, RMC, RINL, GSPL, GITL , KRCL, GAIL, OPaL, TEDA, MMRDA and various State Governments , notable among these being:

-    ONGC : Extension of contracts for Daman Development, Sagar Samrat Conversion and Sagar Pragati conversion Project.

-    Konkan Railway Corporation Ltd: Quality assurance services for 16 Bridges on Katra-Dharam

-    Special Production Group (SPG) : TPI services for Residential and Training Complex.

-    Cantonment Boards : Third party Inspection services for various cantonment Boards across India.

-    Deepak Phenolic Limited : Third Party Quality Audit for Phenolic and Cumene Plant.

-    VMC, SMC, RMC : TPI for various infrastructure Projects undertaken by Municipal Corporations.

-    GAIL(I) Ltd: Inspection of Critical activities of Pipe and plates at overseas vendor’s place .

-    GSPL/ GITL : TPI for various Pipeline Projects in Gujarat and Andhra Pradesh.

-    TEDA : Third Party Inspection Services for SPV Home lighting system.

-    RINL : Pre-despatch Inspection of materials & Capacity assessment of Industrial Units.

-    MMRDA : TPI services for Construction of ROB

-    ONGC Petro additions Limited: Third Party construction supervision of Unit and offsites

Apart from these, CEIL secured many Third Party Inspection assignments from clients like, BPCL; Vijay Tanks and Vessels; Paramount Ltd., Patels Airtemp (I) Ltd; DRDO, Jindal Saw Ltd; Neuman & Essar and Heurty Petrochem (I) Pvt Ltd.; ERDMP & statutory audit assignments from GAIL, IOCL, Cairn India Ltd.

The Board of Directors of the Company has recommended for the financial year 2017-18, a final dividend of Rs.350/- per share (of face value of Rs.100/- per share) in addition to Rs.350/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2017-18 works out to Rs.700/- per share. Payment of final dividend is, however, subject to approval of shareholders in the ensuing Annual General Meeting of the Company. The dividend, if approved and declared in the forthcoming Annual General Meeting, would result into total dividend outflow of Rs.700 Lakhs and dividend distribution tax of Rs.143.19 Lakhs aggregating to total outflow of Rs.843.19 Lakhs.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of SEBI Regulations and DPE Guidelines in this regard. The Board of Directors support the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity. As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors’ Certificate on compliance of conditions of Corporate Governance, along with the Management’s Reply on the comments of Auditors is annexed to this report.

Number of Meetings of the Board

The Board met ten times during the financial year 2017-18, the details of which are given in the Corporate Governance Report annexed to this Report which forms part of the Annual Report. The intervening gap between any two meetings was within the period prescribed under Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance. For further details regarding number of meetings of the Board and its committees, please refer Corporate Governance Report, annexed to this Report.

Composition of Audit Committee

The recommendations made by the Audit Committee during the year were accepted by the Board. The other details of Audit Committee like composition, terms of reference, meetings held are provided in the Corporate Governance Report annexed to this Report.

Declaration by Independent Directors

The Company has received necessary declaration from each independent Director under Section 149(7) of the Companies Act, 2013, that he meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance.

Training of Independent Directors

The Company has a well defined Training Policy for training to Board Members which inter-alia include the various familiarisation programmes in respect of their roles, rights, responsibilities in the company, nature of the industry in the company operates, business model of the company etc. Further, the same is also taken care during the various strategy meets of the Company and different presentations in the Board/ Committee meetings on the statutory Laws. The details of such familiarisation programmes / Training Policy have also been posted on the website of the Company at the http://engineersindia.com/corporate-governance/m-160 web-link.

Directors and Key Managerial Personnel (KMP)

Directors

 -    Inductions

Shri Chaman Kumar was appointed as Additional Director (Nonofficial Independent) w.e.f. 8^th September, 2017 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31034/2/2017-CA/FTS:49128 dated 8^th September, 2017. Shri Rajesh Kumar Gogna was appointed as Additional Director (Non-official Independent) w.e.f. 20^th September, 2017 (date of allotment of DIN) in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31034/2/2017-CA/FTS:49128 dated 8^th September, 2017. Shri Jagdish Chander Nakra, Director (Projects) was appointed as Additional Director and Chairman & Managing Director w.e.f. 12^th February, 2018 (A.N.) in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31/1/2017-CA(14564) dated 12^th February, 2018. Shri Lalit Kumar Vijh, Executive Director, was appointed as Director (Technical) w.e.f 2^nd May, 2018 (A.N.) in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/1/2017-PNG (98) dated 2^nd May, 2018. Shri Ashish Chatterjee was appointed as Director (Government Nominee) w.e.f. 26.07.2018 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31033/1/2016-CA/FTS:42979 dated 26^th July, 2018.

-    Re-appointments

In accordance with the provisions of the Articles of Association of the Company, Shri Vipin Chander Bhandari, Director (HR) and Shri Rakesh Kumar Sabharwal, Director (Commercial) would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offers themselves for reappointment. In accordance with the provisions of the Companies Act, 2013, Shri Chaman Kumar, Shri Rajesh Kumar Gogna, Non-official Independent Directors, Shri Lalit Kumar Vijh, Director (Technical) who were appointed as Additional Directors and Shri Jagdish Chander Nakra who was appointed as Additional Director and Chairman & Managing Director after the date of last Directors’ report, shall vacate their offices at the ensuing Annual General Meeting. Necessary notices have been received from them under section 160 of the Companies Act, 2013, proposing their candidature for appointment. The same has also been given on the website of the Company at http://engineersindia.com/ corporategovernance/m-160. The Board recommends their appointment. Brief resume of the Directors seeking appointment/ reappointment together with the nature of their expertise in specific functional areas, disclosure of relationships between Directors inter-se, names of companies in which they hold Directorships and the membership/ chairmanship of Committees of the Board along with their shareholding in the Company etc. as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DPE Guidelines on Corporate Governance and other statutory provisions are given in the Annexure to Notice of 53^rd Annual General Meeting.

-    Retirements

After the date of last Directors’ Report i.e. 3^rd August, 2017, Shri Sanjay Gupta, Chairman & Managing Director ceased to be the Chairman & Managing Director of the Company w.e.f. 1.11.2017 due to his retirement on attaining the age of superannuation on 31.10.2017. Ms. Sushma Taishete, Director (Government Nominee) ceased to be Director of the Company w.e.f. 24^th November, 2017. Shri Ajay Narayan Deshpande, Director (Technical) with additional charge of Chairman & Managing Director and Director (Finance) ceased to be Director of the Company w.e.f. 1.02.2018 due to his retirement on attaining the age of superannuation on 31.01.2018. Shri Jagdish Chander Nakra, ceased to be Director (Projects) consequent to his appointment as Chairman & Managing Director w.e.f. 12.02.2018 (A.N.). The Board placed on record its sincere appreciation for the valuable services rendered and contributions made by Shri Sanjay Gupta, Chairman & Managing Director, Ms. Sushma Taishete, Director (Government Nominee) and Shri Ajay Narayan Deshpande, Director (Technical) with additional charge of Chairman & Managing Director and Director (Finance) of the Company.

-    Additional Charge

Shri Ajay Narayan Deshpande, Director (Technical) was entrusted with the additional charge of the Post of Chairman & Managing Director for a period of 3 months w.e.f. 1.11.2017 to 31.01.2018 (i.e. till the date of his superannuation) or until further orders whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/9/2017-CA-PNG:16545 dated 31.10.2017. Shri Ajay Narayan Deshpande, Director (Technical) was also entrusted with the additional charge of the Post of Director (Finance) for a period of 3 months w.e.f. 1.11.2017 to 31.01.2018 i.e. till the date of his superannuation or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/3/2017 (4273) dated 21.12.2017. Shri Jagdish Chander Nakra, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Projects) for a period of 3 months from 13.02.2018    to 12.05.2018 or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/2/2018-PNG (23190) dated 9.03.2018. Additional charge of the post of Director (Technical) was entrusted to Shri Jagdish Chander Nakra as Director (Projects) for a period from 1.02.2018 to 12.02.2018 vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/1/2018-CA-PNG dated 16.03.2018. Additional charge of the post of Director (Technical) was entrusted to Shri Jagdish Chander Nakra as Chairman & Managing Director for a period from 13.02.2018 to 30.04.2018    or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/1/2018-CA-PNG dated 16.03.2018. Additional charge of the post of Director (Finance) was entrusted to Shri Jagdish Chander Nakra as Director (Projects) for a period from 1.02.2018 to 12.02.2018    vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31/1/2017-PNG (14564) dated 28.03.2018. Additional charge of the post of Director (Finance) was entrusted to Shri Jagdish Chander Nakra as Chairman & Managing Director for a period from 13.02.2018 to 30.04.2018 or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31/1/2017-PNG (14564) dated 28.03.2018.    Shri Jagdish Chander Nakra, Director (Projects), was entrusted with the Additional charge of the post of Chairman & Managing Director w.e.f. 1.02.2018 till 12.02.2018 vide Ministry of Petroleum & Natural Gas, Government of India letter no. C-31018/9/2017-CA-PNG:16545 dated 5.04.2018. Shri Jagdish Chander Nakra, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Projects) for a period of 6 months from 13.05.2018 or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/2/2018-PNG (23190) dated 9.05.2018.    Shri Jagdish Chander Nakra, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Finance) for a period of 6 months w.e.f 1.05.2018 or till the appointment of a regular incumbent to the post or until further orders, whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31/1/2017-PNG (14564) dated 14.06.2018. Shri Jagdish Chander Nakra, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Technical) for a period of one day i.e. 1.05.2018    vide Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/1/2018-CA-PNG dated 14.06.2018.

Key Managerial Personnel

-    Company Secretary : Shri Rajan Kapur, Company Secretary of the Company has resigned from the post of Company Secretary w.e.f 26.07.2018. The Board in its meeting held on 9.08.2018 has appointed Shri Narendra Kumar, Manager (CS) as Company Secretary of the Company till new whole time Company Secretary is selected and appointed by the Board.

-    CFO    : During the period under review, the position of CFO was occupied as follows:

-    Shri Ram Singh, Director (Finance) was holding the position till 30.04.2017 (date of his superannuation).

-    Shri R.K. Garg, ED (F&A), was holding the position from 15.05.2017 to 30.06.2017 (date of his superannuation).

-    Shri V.C. Bhandari, Director (HR), was Designated as CFO of the Company w.e.f 1.07.2017.

Secretarial Auditor

M/s Agarwal S. & Associates, Practicing Company Secretaries, was appointed to conduct the Secretarial Audit of the Company for the financial year 2017-18, as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit Report for the financial year 2017-18 along with the Management’s Reply on the comments of Secretarial Auditor is annexed to this Report.

Vigil Mechanism/Whistle Blower Policy

The Company has formed the Whistle Blower Policy/Vigil Mechanism and no personnel have been denied access to the Audit Committee. The same has also been given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Transfer of Amounts/Securities to Investor Education and Protection Fund

A detailed disclosure regarding the same has been given in the Corporate Governance Report which is annexed to this Report. The same has also been given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Listing on Stock Exchanges

The Company is listed on the BSE Ltd. and National Stock Exchange of India Ltd. The Company has paid Listing fees for the Financial Year 2017-18 to the above Stock Exchanges in time.

Nomination and Remuneration Committee

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors, both Executive and Non-Executive are made by the Government of India and are being paid remuneration as per the terms of their appointment. The Company has a Nomination and Remuneration Committee and detailed disclosure in this regard has been given in the Corporate Governance Report which is annexed to this Report.

Performance Evaluation of the Board

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors, both Executive and Non-Executive are made by the Government of India. Therefore, the Company has not laid down any criteria for performance evaluation of the Independent Directors and the Board.

Particulars of Contracts or Arrangements made with Related Parties (RPTs)

In line with the provisions of the Companies Act, 2013 and the Listing Regulations, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company at http://engineersindia.com/corporate-governance/m-160. The Company gives the disclosure regarding material transactions with related parties on quarterly basis along with the compliance report on Corporate Governance. As per requirements of Section 134 (3) of Companies Act, 2013 read with rule 8 of Companies (Accounts) Rule, 2014, particulars of contracts or arrangements with related parties as referred in section 188 (1) of the Companies Act, 2013 is annexed to this report. During the year, there were no material RPTs. Further, suitable disclosure as required by the Accounting Standards (AS18) has been given in the Notes to the Financial Statements.

Details of Loans/Investments/Guarantees

In compliance with the provisions of the Companies Act, 2013, the details of investments made and loans/guarantees provided as on 31.03.2018 are given in the respective Notes to the financial statements.

Extract of Annual Return

In accordance with Section 134(3)(a) of the Companies Act, 2013, an extract of the annual return in the prescribed format is annexed to this report. The same has also been given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Cost Auditors

EIL does not fall under the cost audit rules and therefore, there is no requirement of cost audit for the Company in terms of amended Companies (Cost Records and Audit) Rules.

Conservation of Energy, Research and Development, Technology Absorption, Foreign Exchange Earnings and Outgo

In accordance with the provision of the Companies Act, 2013 and rules framed thereunder, particulars relating to Energy Conservation Technology Absorption are given under Research & Development and Sustainable Development Sections of the Directors’ Report.

Information regarding imports, foreign exchange earnings and expenditures etc. (excluding exchange difference on conversion of foreign currency) is as following:    (Figures in ‘ Lakhs)

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future.

Other Disclosures

No disclosure or reporting is required in respect of the following items as either these were not applicable or there were no transactions on these items during the financial year 2017-18:

1. Details relating to deposits covered under Chapter V of the Act.

2.    Issue of equity shares with differential rights as to dividend, voting or otherwise.

3.    Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

4.    Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

Further, the names of Companies which have become or ceased to be its subsidiaries during the year are NIL whereas the companies which have become or ceased to be joint ventures or associate companies during the year are NIL.

The Company has in place internal complaints committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Further, during the financial year 2017-18, there were no cases filed under the above act.

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year and the date of this report.

Code of Conduct

EIL has formulated a Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel. The confirmation of compliance of the same is obtained from all concerned on annual basis. All Board Members and Senior Management Personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance annexed to this Report. The Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel are given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Right to Information

Under the provisions of Section 4 of the Right to Information Act, 2005, every pubic authority is required to display necessary information to citizens to secure access to information under the control of public authority in order to promote transparency and accountability in its working and functioning.

EIL, being a responsible public sector undertaking, has displayed essential information on its website under the head RTI. The management has notified CPIO and the First Appellate Authority in compliance with requirements of the RTI Act. Between April 01, 2017 and March 31, 2018, a total of 154 (One hundred fifty four) RTI applications were received by the Company. The applications received have been disposed of by providing requisite information as per the guidelines. Apart from RTI applications, the Company also received Appeals against decision of CPIO, which too have been duly attended and appropriately disposed of by the First Appellate Authority.

Directors’ Responsibility Statement

Your Directors state that :

a. in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, have been followed and there are no material departures from the same;

b.    the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date;

c.    the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d.    the Directors have prepared the annual accounts on a ‘going concern’ basis;

e.    the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f.    the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Auditors

M/s Arun K Agarwal & Associates, Chartered Accountants were appointed as Auditors of the Company for the financial year 2017-18 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include State Bank of India, Indian Overseas Bank, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank, ICICI Bank, Indian Bank, Bank of India, Oriental Bank of Commerce, Canara Bank, IDBI Bank, Axis Bank and IndusInd Bank.

Particulars of Employees

As per the provisions of Section 197 of the Companies Act, 2013 and rules made thereunder, Government Companies are exempted from inclusion of the statement of particulars of employees. The information has, therefore, not been included as part of the Directors’ Report. However, the same information is open for inspection at the registered office of the Company on all working days between 10.30 a.m. to 12.30 p.m. prior to the Annual General Meeting.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development, we will continue to provide world class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results. Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

                                                                                        For and on behalf of the Board of Directors

Place: New Delhi                                                                                                                J.C. Nakra

Date : August 10, 2018                                                                      Chairman & Managing Director

---

Mar 31, 2016

Dear Members,

The Directors have great pleasure in presenting the 51st Annual Report for the financial year ended March 31, 2016 along with Audited Statement of Accounts, the Auditors'' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2015-16 in Retrospect

Your Company sustained its good performance during FY 2015-16. The key highlights of the financial performance of the Company for the year, as stated in the audited financial statement, along with the corresponding performance for the previous year are as under:

Financial Performance

(Figures in Rs. Lakhs)

No. Description 2015-16 2014-15

A (i) INCOME FROM SERVICES RENDERED 149584 171300

A (ii) OTHER INCOME 25694 27311

TOTAL INCOME 175278 198611

B. EXPENDITURE

i) Cost of rendering services 133593 149892

ii) Depreciation 2481 1963

TOTAL 136074 151855

C PROFIT BEFORE TAX (A-B) 39204 46756

D Provision for Current tax 12576 15924

E Provision for Deferred Tax 1252 (90)

F Prior Period Tax Adjustments, Short/ (455) 124 (Excess)

G PROFIT AFTER TAX (C-D-E-F) 25831 30798

H Dividend 13477 16847

I Tax on Dividend 2642 3302

J CSR Activity Reserve (47) (20)

K Retained Profits 9759 10669

L RESERVES & SURPLUS 249655 239943

M NET WORTH 266502 256790

Segment wise Performance

(Figures in Rs. Lakhs)

Consultancy & Engineering Projects Year ended Year ended 31.03.2016 31.03.2015

Segment Revenue

Consultancy & Engineering Projects 99228 94797

Turnkey Projects 50356 76503

Total 149584 171300

Segment Profit From Operations

Consultancy & Engineering Projects 22776 24650

Turnkey Projects 1218 5602

Total (A) 23994 30252

Prior period adjustment 30 818

Interest 10 23

Other un-allocable expenditure 10444 9966

Total (B) 10484 10807

Other Income (C) 25694 27311

Profit Before Tax (A-B C) 39204 46756

Capital Employed (*) 266502 256790

(*) Fixed Assets used in the Company''s Business or Liabilities Contracted have not been identified to any of the reportable segments as the fixed assets and support services are used interchangeably between segments. Accordingly, no disclosure relating to segment wise assets and liabilities has been made.

Dividend

The Board of Directors of the Company has recommended a final dividend of Rs.2/- per share (of face value of Rs.5/- per share) for the financial year 2015-16, in addition to Rs.2/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2015-16 works out to Rs.4/- per share amounting to Rs.13477.46 Lacs excluding dividend distribution tax. The payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company which shall be paid to the Members whose names appear in the Register of Members as well as beneficial ownership position provided by NSDL/ CDSL as on 8th September, 2016.

Investor Relations

It has been a constant endeavor of your Company to achieve highest standards of corporate governance and all measures are undertaken to enhance market confidence and improve shareholder engagement through periodic, regular, transparent and open communication.

The Management is committed to sharing information with investor community on the Company''s performance and convey essential updates on likely expected projects, new business initiatives, future outlook, industry insights and avenues of growth potential and investment plans periodically.

Investor Relations provides timely communication of such information which acts as an effective bridge between the management and investor community. The Investor Relations Cell handles all investor concerns and issues efficiently, aligning it with disclosure requirements, transparency and Corporate Governance Rules & Regulations, thereby inculcating a "trust relationship" with the stakeholders.

The Management and Investor Relations Cell are actively communicating with the investors by means of one-on-one meetings, conference calls, investor conferences, road shows, etc. The print and web media are also being utilized for timely dissemination of vital information, which is extremely significant in the financial world.

Management Discussion & Analysis

A separate report on Management Discussion & Analysis is annexed to this Report.

Consultancy Assignments (Domestic)

Offshore Oil and Gas

During the year, EIL continued to make considerable progress in Offshore Oil & Gas and LNG sectors in India and overseas.

The following consultancy assignments were successfully completed during the year:

- FEED for Marine Works, Storage Tanks and Re-gasification Terminal for LNG Terminal at Chhara of HPCL Shapoorji Energy Pvt. Limited (joint venture project of HPCL and Shapoorji Energy Pvt. Ltd).

- Remedial measures for ONGC''s 42" SBHT Pipeline at Umharat sea beach.

- Integrated check of platforms under PRP-4 Project.

During the year, EIL secured the following orders against stiff competition and implementation has taken off in right earnest:

- Construction of fifth oil berth at Jawahar Dweep island of Mumbai Port Trust.

- Feasibility Report for development of berth in the spending beach to handle chemical small Parcel size vessels at New Mangalore Port.

- Detailed Feasibility Report & Detailed Project Report to provide handling equipment at Berth no. 8 for containers and clean cargo at New Mangalore Port.

Additionally, the following projects are currently under execution:

- Pre-award activities for ONGC''s Water Injection South (WIS) platform.

- PMC for DahejLNG Terminal Ph-III A Expansion Project of Petronet LNG Limited.

- Consultancy services for post-award activities for ONGC''s BPA- BPB revamp project.

- Life Extension of Well Platform Project of ONGC.

- Underwater structural repair of HC Platform in Heera Field of ONGC.

- NQ-RC Phase-II Project of ONGC.

Onshore Oil & Gas

During the year, an important assignment of providing PMC services for Cairn''s Associated Facilities Project at Mangala Processing Terminal comprising Storage Tanks and Export System, Power Generation & Distribution system and integrated balance works was completed.

Additionally, FEED for Bhagyam Polymer EOR Project of Cairn India Limited was prepared during the year.

Pipelines

EIL has a significant track record in design and execution of cross- country pipelines for transportation of crude oil, refined petroleum products, natural gas and LPG. The following assignments were successfully completed during the year:

- 16" HDD Saloni River crossing for GAIL.

- 24" HDD Ganga River crossing for GAIL.

- 8" HDD Narmada river crossing for ONGC.

The following major pipeline projects are in progress:

- 18" x 45 km Re-routing of Mumbai-Manmad Pipeline for BPCL.

- 24"/ 18"/ 8"/ 4" x 243 km Replacement of KG Basin Pipeline for GAIL.

- 36" HDD SatlujRiver crossing and 18" HDD Yamuna River crossing for GAIL.

- Upgradation of pumping stations for Naharkatiya-Barauni Crude Oil Pipeline of Oil India Limited (OIL).

- DFR for Palanpur-Vadodara pipeline project for HPCL.

- DFR for augmentation of Barauni-Bongaigaon Section in Naharkatiya-Baurauni Crude Oil Pipeline-Upgradation Project (Phase-II) for OIL.

- 12"/ 8" x 450 km Kochi - Salem LPG Pipeline for KSPPL.

- 18"/ 16" x 275 km Natural Gas Pipeline from Vijaipur to Kota and Spurline to Chittorgarh for GAIL.

- Engineering and PMC Services for Mundra-Bhatinda Pipeline Capacity Expansion of HPCL-Mittal Pipeline Ltd.

Petroleum Refining

The following Projects were successfully completed during the year:

- 6 MMTPA CDU-4 project of BPCL Mumbai Refinery.

- Captive Power Plant of IOCL''s 15 MMTPA Paradip Refinery which was dedicated to the Nation by Hon''ble Prime Minister of India Shri Narendra Modi on February 7, 2016.

- Feasibility Report for BS VI Fuel Quality upgradation for IOCL Refineries. Reports completed and submitted to client.

During the year, the Company achieved significant progress on the following major projects:

- The Integrated Refinery Expansion Project of BPCL Kochi Refinery for enhancing the refining capacity to 15.5 MMTPA has witnessed considerable progress with engineering and procurement activities having been completed while the construction activities are in advance stage of completion. A number of units viz., CDU/VDU, SR LPG and FO/FG units, RWTP, Cooling Tower-I, GT-III have been mechanically completed and commissioning activities are in progress.

- EIL is providing EPCM services for conversion of CRU to ISOM and revamp of NHDS to NHT at BPCL Mumbai Refinery to maximize Isomerate yield and Octane Number and produce special products like Food Grade Hexane. Detailed engineering, procurement and construction activities are in progress.

- EIL has been rendering PMC services for Revamp and Capacity Enhancement Project of BORL Refinery which aims to increase the refining capacity from the current 6.0 MMTPA to 7.8 MMTPA. Completion of BDEP by Licensors for licensed units and procurement activities for long lead items are nearing completion.

- Procurement and construction activities are in progress for New Coke Chamber and Allied Modernization Facilities of IOCL Barauni Refinery for which EIL is providing EPCM Services.

- Engineering, procurement and construction activities are in progress for Distillate Yield Improvement Project at IOCL Haldia Refinery.

- Detailed engineering and ordering has been completed for INDAdeptG Project at IOCL, Guwahati Refinery. Construction activities are in progress.

- Substantial progress has been achieved in construction of new RO Plant at Barauni Refinery.

The following major projects were secured by the Company in the

Petroleum Refining sector during the year and good progress has been achieved in these projects:

- EPCM services for 2.6 MMTPA Diesel Hydrotreater (DHT) and Associated Facilities project at BPCL Mumbai Refinery to produce Diesel conforming to BS IV standards. All major equipment and other materials have been ordered. Construction activities are progressing in full swing.

- EPCM services for 0.7 MMTPA DHDT and Supporting Facilities project at Numaligarh Refinery of NRL. Engineering, Procurement and Construction activities are in full swing.

- HPCL engaged EIL as PMC for the pre-project activities of their Vizag Refinery Modernization Project. Additionally, multiple assignments for preparation of DFRs for HPCL''s new/existing (upgradation) of marketing terminals across the country have been received.

- EPCM Services for LPG Import facility at Haldia for BPCL.

- HPCL awarded to EIL their new tankages project at Mumbai. Engineering and tendering is in progress.

Petrochemicals

The following Projects were successfully completed during the year:

- The Assam Gas Cracker Project, a grass-root petrochemical project of Brahmaputra Cracker and Polymer Limited, was commissioned during the year. The Project was dedicated to the Nation by Hon''ble Prime Minister of India Shri Narendra Modi on February 5, 2016. The availability of petrochemicals from the project will boost the development of plastic industry in the North-Eastern region of the country.

- GAIL Petrochemical Complex-II Project consisting of Gas Sweetening and Gas Processing units with associated Captive Power Plant and Utilities & Offsite at Vijaipur and Gas Cracker complex, GPU-II, LLDPE/HDPE (Swing unit) and Butene-1 Units at Pata were successfully commissioned and Plants have been put into operation after stabilization.

Significant progress has been made on the following petrochemical projects:

- The DahejPetrochemical Complex of ONGC Petro additions Limited (OPaL) has achieved considerable progress wih the Dual Feed Cracker, HDPE, PP and Butene units being under commissioning and LLDPE/HDPE Swing Unit is in advanced stage of completion. The Captive Power Plant and utilities have been commissioned.

- The Propylene Derivative Petrochemical Plant of BPCL Kochi Refinery comprising Acrylic Acid Unit, Oxo-Alcohol Unit and Acrylates Unit is moving ahead with EPCM-I awarded by BPCL for site enabling works, BDEP review and acceptance of Licensor''s package. For EPCM-II, go ahead has been given by BPCL.

- Preparation of DFR for standalone Petrochemical Complex in Andhra Pradesh for GAIL was awarded during the year.

Strategic Storages

Recognizing the country''s dependence on imported oil and gas resources, Government of India (GoI) has embarked on the Strategic Crude Oil Storage Programme which will bolster India''s energy security by creating a buffer stock of crude oil sufficient to meet requirements in case of any disruption of supplies from abroad.

Under Phase-I of the Strategic Storage programme, EIL is providing PMC services to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction of underground unlined rock cavern storages in Vishakhapatnam, Mangalore and Padur having a total capacity of 5.33 MMT. During the year, Vishakhapatnam storage has been commissioned while pre-commissioning activities are underway at Mangalore and Padur.

Metallurgy

The following key metallurgy projects/assignments were completed during the year:

- Appointment of Mine Developer-cum-Operator for Kapurdi and Jalipa Mines of Barmer Lignite Mining Company Limited in Rajasthan.

- Feasibility Study for revamping of Rectifier Station-I for Hirakud Smelter of Hindalco.

- Techno Economic Feasibility study for increasing production, productivity or profitability of Smelter Plant at Angul for NALCO.

- Benchmarking study for downstream Aluminium industries in the proposed Aluminium park in Angul.

The following Projects/Assignments are in progress:

- Detailed Feasibility Report based on the report for Scoping Study for Mechanised Production and Evacuation of Iron Ore from Kurmitar Project of Odisha Mining Corporation Limited (OMC).

- Review of various high rise structure stability for Hindalco. Infrastructure

In the Infrastructure sector, EIL is providing a wide spectrum of services such as Project Management, Third Party Inspection (TPI), Quality Assurance, Independent Engineer & Lender''s Engineer services, Project Appraisal and project execution services.

The following infrastructure projects were completed during the year:

- Preparation of Smart City proposals for Moradabad and Rampur.

- PMC Services for Canal lining works of Sardar Sarovar Narmada Nigam Limited for Package VI.

The following major projects were secured during the year and work on these projects has been initiated:

- Consultancy services for preparation of Master Plan and DPR for development of Vijayawada Airport to international standards.

- PMC services including preparation of Service Level Improvement Plan (SLIP), State Annual Action Plan (SAAP) & DPR and execution of projects pertaining to water supply, sewerage & septage, transportation and park development as part of rejuvenation of 9 cities of Odisha under AMRUT (Atal Mission for Rejuvenation and Urban Transformation) Scheme.

- PMC Services for Development of IIT Patna Campus.

- PMC Services for Data Centre at Hyderabad for SBI.

- PMC Services for execution of balance works of Konark Sun Temple for IndianOil Foundation.

- Technical and Financial Audit of Infrastructure works in various Urban Local Bodies (ULBS) of Punjab for Punjab Municipal Infrastructure Development Company (PMIDC).

During the year, the Company achieved significant progress on the following projects:

- PMC services for Headquarter Building of UIDAI in Delhi.

- PMC services for Inland Container Depot for Container Corporation of India Limited.

- Extension of TPI services for Infrastructure Projects of Pune Municipal Corporation.

- PMC Services for Biotech Science Cluster, Faridabad.

- PMC Services for Housing Project of Gujarat Housing Board.

- PMC Services for Central University of Punjab at Ghudda, Bhatinda.

- Allied Services for Air Side development of Mumbai Airport. Fertilizers

Pursuant to the declaration of New Investment Policy in January, 2013 by the Government of India and its amendment in September, 2014, the Fertilizer sector in India is expected to grow in the near future. EIL is leveraging its capabilities and global network to tap significant business opportunities presented by this sector in India and Overseas. As a result, EIL has achieved considerable success in this sector.

As part of strategic investments in the Fertilizer sector, EIL has taken equity participation in Revival of Ramagundam Fertilizer Project along with National Fertilizers Limited and Fertilizer Corporation of India Limited. A joint venture company (M/s Ramagundam Fertilizers and Chemicals Limited) has been formed to pilot this project. EIL is also executing this project on EPCM Mode. During the year, significant progress was achieved on front end activities.

Water and Waste Management

The following major projects were secured by the Company during the year:

- Namami Gange Programme - execution of entry level activities (Ghats, Crematoriums & Village level drain treatment) and Sewerage Infrastructure.

- PMC Services for sewerage system in Ponda Colony - Zones IA & IB of Goa for Sewerage and Infrastructure Development Corporation of Goa Limited (SIDCGL).

- PMC services for implementation of Sewerage Projects on the command of Najafgarh Drain for segment A-B (Dhansa to Goyla) and B-C (Goyla to Keshopur) for Delhi Jal Board (DJB).

- Technical and Financial Audit of Infrastructure works to be executed by the Urban Local Bodies and Punjab Water Supply & Sewerage Board for Punjab Municipal Infrastructure Development Company.

- EPCM Services for Effluent Treatment Plant at Tengakhat, Assam for Oil India Limited.

The Interceptor Sewer Project of Delhi Jal Board (DJB) for abatement of pollution in River Yamuna witnessed significant progress during the year. One Package has been already handed over to DJB and the other packages are partially ready.

Nuclear Power

In the nuclear power sector, EIL is engineering the Greenfield Nuclear Fuel Complex at Kota, Rajasthan. During the year, engineering and procurement activities progressed and site activities gathered momentum.

Overseas Assignments

EIL has leveraged its strong track record in the Indian hydrocarbon sector to successfully expand its international operations . Over the years, the Company has emerged as a global player with the execution of a number of prestigious assignments for international energy majors in Middle East, Africa and South East Asia.

During the year, the following overseas projects were completed:

- Detailed Engineering & Procurement services for Slops & Drains Upgrade at Umm Shaif Super Complex of Abu Dhabi Marine Operating Company (ADMA-OPCO).

- Study for Up-gradation of Anti Surge Valves for Propane Compressor of Train 1 & 2 for Abu Dhabi Gas Liquefaction Co Ltd (ADGAS).

- Mussaffa Terminal Fire Fighting Facility Adequacy Study for TAKREER.

- Study for LG6 Foundation Rectification - Permanent Solution for ADGAS.

- Technical Support Services Agreement (TSSA) to facilitate and complete HAZOP Studies for Habshan 1 & 2 Plants of Abu Dhabi Gas Industries (GASCO).

- Technical Support Study for 2 Nos. External Double Deck Floating Roof Tanks of ENOC.

- Shahjalal Fertilizer Project in Bangladesh having a capacity of 1000 MTPD Ammonia Plant and 1760 MTPD Melt Area and Urea Granulation Plant.

- PMC services for Indorama Fertilizer Project for Indorama Eleme Fertilizer and Chemicals Ltd., Nigeria.

- Advance FEED studies for Kuzey-Marmara Fixed Offshore platform and Pipelines of Turkish Petroleum Corporation, Turkey.

- Draft Pre-Feasibility Study Report for Global Steel Holdings, UK for Engineering Consultancy services for setting up an Ammonia and Urea Fertilizer complex in extreme weather conditions in Sakha Province of Russia.

- Configuration Study for Petcoke Storage & Handling Facility at Sohar Port, near Sohar Refinery.

EIL achieved substantial progress in the following major projects:

- EIL is providing EPCM services for the prestigious Dangote Refinery and Petrochemical Project comprising a 460,000 BPSD grassroot Petroleum Refinery & 830 KTPA Petrochemical Complex at Lekki Free Trade Zone, Nigeria for Dangote Oil Refining Company (DORC). The major process units in Refinery include Crude Distillation Unit (CDU), a Residue Fluid Catalytic Cracking unit, MS Block, a Mild Hydrocracker unit, Alkylation and Sulphuric Acid Regeneration Unit, Product Treatment units, Polypropylene Unit, Sulphur block and associated Utilities generation & Offsite facilities. The Project facilities include crude oil receipt & storage including two SPMs with associated offshore/onshore pipelines. The product dispatch facilities include product disposal through road as well as ships. Dispatch of products comprise pumping facility, onshore & offshore pipeline as well as three SPMs. Detailed engineering for the project is in full swing and recommendation sent for order placement for major Long Lead Items, Packages and equipment. Second stage 3D model review and HAZOP study have been concluded for most of the Process Units, Utilities & Offsite area.

Additionally, EIL is also providing class room and on the job training to Nigerian Executive Trainee Engineers from DORC. The Trainee Engineers of DORC will be provided an insight into various facets of Project Management, Process Design, Detailed Engineering and Construction Management as well as detailed information about DORC Refinery by in-house faculty .

- A number of major milestones have been achieved for Sonangol''s 200,000 BPSD Grassroot Refinery Project at Lobito, Angola which include:

- Configuration Study for Phase-2 Units completed by EIL.

- Cost Estimates based on KBR FEED have been provided.

Further, FEED revalidation and Licensor''s selection for BDEP for DHDT, RFCC, RFCC Gasoline, DCU and Meroxes are underway.

- Under PMC services for Rehabilitation and Adaptation of Algiers Refinery of SONATRACH, substantial progress has been achieved on construction front.

- PMC services for EPC of Upgrade & Replacement of Substations project Phase-1 of ADGAS.

- Design Consultancy and Project Management Consultancy services for miscellaneous tank farm, piping, instrumentation and control system, inspection, repair, maintenance & upgrade works at various depots of ADNOC-Distribution.

- PMC services for Pipeline projects of GASCO, Abu Dhabi.

- Installation of Chemical injection Skids and Solar power systems in US and ZK WHTs of ADMA-OPCO.

- Protection Relay Coordination Study for the Abu Dhabi Refinery Division Electrical Power Network of TAKREER.

- Pre FEED/FEED Study for Flash Gas Compressor Diversion Line.

- PMC services for Liwa Plastics Project of Orpic, Oman.

- PMC services for RFCC unit revamp and various unit improvements works at Sohar Refinery for Orpic, Oman.

- PMC services for 1900 TPD Ammonia Plant in Central Sulavesi for PAU, Indonesia.

- PMC services for Al Dabbiyah ASR gas development project of ADCO.

Turnkey Projects

EIL''s turnkey project portfolio consists of projects executed on LSTK mode or on the ''Open Book Estimate (OBE)'' basis. The following LSTK/ OBE jobs witnessed considerable progress during the year:

- GSPC''s Onshore Gas Terminal (OGT) project at Mallavaram, Andhra Pradesh, executed on OBE mode, was commissioned during the year.

- Coker Block of Resid Upgradation Project of CPCL-Chennai is being executed by EIL on Lump sum Turnkey basis comprising DCU of 2.2 MMTPA and LPG CFC Treating Unit of 8.8 TPH. Piping, Electrical and Instrumentation works are in full swing.

- South Jetty Pipeline project for loading/unloading of petroleum products and crude oil for IOCL Paradip Refinery, being executed on OBE mode, is nearing completion.

- Modification work is in progress at Hazira Plant under Daman Development Project of ONGC on OBE basis.

During the year, EIL was successful in securing the job for executing Installation of Lean Gas Compressor and Associated facilities at Hazira Gas Processing Complex on OBE basis from ONGC.

Performance of Divisions

Process Design & Development

The Process Design & Development Division of EIL continued its efforts to secure business from new clients besides serving various existing clients, both in India and in overseas. Prominent assignments undertaken by the Division during the year include the following:

- DFR for capacity expansion of IOCL''s Gujarat Refinery from a crude processing capacity of 13.7 MMTPA to 18 MMTPA.

- Basic Design Engineering Package and other services for revamping DHDT Unit at IOCL''s Gujarat Refinery.

- PMC services for the Sulphur Block and Utilities & Offsites of Aishwarya project for IOCL''s Haldia Refinery under LSTK mode.

- Revamp of Vis-breaker of IOCL''s Haldia Refinery through installation of soaker internals.

- Coke Chamber replacement and modernization of Coker-A of IOCL''s Barauni Refinery.

- EPCM Services for DHDT Project for Numaligarh Refinery Ltd.

- DFR for 6 MMTPA expansion of Numaligarh Refinery based on 100% Sour Crude processing.

- Pre-commissioning and Commissioning activities for the 2.2 MMTPA Delayed Coker Unit of CPCL''s Chennai Refinery.

- Detailed engineering and pre-commissioning for Integrated Refinery Expansion Project at BPCL''s Kochi Refinery for enhancing crude processing capacity from 9.5 to 15.5 MMTPA.

- PFR for maximization of production of MS and Diesel, fuel quality upgradation to BS VI in BPCL''s Kochi refinery.

- Licensor selection for BS-VI MS Block, BDEP for utilities & offsite and DFR for BS-VI MS Block for BPCL Kochi.

- Configuration Study and Capacity expansion study for BPCL''s Mahul Refinery for enhancing crude processing from 12 MMTPA to 14 MMTPA.

- Residual, detailed engineering and commissioning of grass root Crude Distillation Unit (CDU-4) at BPCL''s Mumbai Refinery for 6 MMTPA crude processing facility.

- Licensor evaluation and detailed engineering for grass root Diesel Hydrotreater unit for BPCL''s Mumbai Refinery. Design and detail engineering of new and revamped, associated facilities i.e., CDU-3 (RMP), SWS, ARU, HGU, Utilities and Offsites.

- PFR for BORL''s Bina refinery expansion to 15.5 MMTPA and installation of facilities required for building basic blocks of the petrochemical hub in Bina Region.

- Preparation of revamp process packages of CDU/VDU and other open art treating units, utilities and offsite besides review of revamp process packages of licensed units of BORL''s Bina refinery.

- Configuration study and DFR for HPCL''s Mumbai Refinery for expansion of crude processing capacity from 7.5 MMTPA to 9.5 MMTPA.

- DFR for expanding HPCL''s Vizag Refinery crude processing capacity to 15 MMTPA with inclusion of suitable bottom upgradation facilities for distillate yield and product quality improvement.

- Revalidation of HPCL''s Vizag Refinery Modernization Project DFR for 100% BS-V quality MS and Diesel production.

- Licensor selection of Naphtha Isomerisation Unit, Full Conversion Hydrocracker Unit, design of new CDU/VDU, Utilities and Offsite facilities for HPCL''s Vizag Refinery.

- Licensor selection for Residue Upgradation facilities of HPCL''s Vizag Refinery Modernization Project.

- Configuration study for BS-VI Autofuels production and 18 MMTPA debottlenecking for MRPL integrated refinery and aromatic complex.

- Basic engineering and design services for FCC feed preparation unit for Essar Oil Limited at Vadinar Refinery, Gujarat.

- Feed Augmentation study with Ethane import facilities for GAIL''s Petrochemical Complex at Vijaipur and Pata.

- Site selection and preparation of Feasibility Report for Green Filed Petrochemical Complex based on imported Ethane for GAIL (India) Ltd.

- License, Engineering, Procurement and Construction management (LEPCM) Services with single point responsibility for Methanol ISBL plant and integrated OSBL facilities for 500 TPD Methanol and 200 TPD Acetic acid plant of Assam Petrochemical (APL).

- Vetting of Prefeasibility Report carried out by Adani Energy Limited in Chhattisgarh for Polygeneration.

- PFR for 2200 TPD Ammonia and 3850 TPD Urea plants in Siberia, Russia for Global Steel.

- PFR for NFL pet coke gasification project.

- Surge analysis for SMPL debottlenecking project, PHBPL and MPPL.

- Study Report for Expansion of GGSR to 18 MMTPA with Integrated Petrochemical Complex.

- Configuration Study, Licensor Selection and Feed Revalidation for Sonaref Refinery of Sonangol, Angola.

- Feasibility Report for BS-VI Fuel Quality Upgradation of five IOCL refineries.

- Consultancy Services for VGO HDT and SRU revamp and additional Offsite under LCEP of GGSR Refinery.

- Conceptual Study for a Mega Refinery-cum-Petrochemical Complex on West Coast of India.

- Configuration study for proposed refinery project in South Sudan.

- Preparation of DFR for standalone petrochemical complex based on imported Ethane.

- FEED preparation for revamp of Unmanned Platform Phase-II for ONGC.

- Study for Assessment and utilization of gas for the Western Offshore assets of ONGC to examine the potential for further optimization of gas usage.

- Preparation of Advance FEED package for Kuzey Marmara DP-1 & DP-2 platform offshore facilities for Turkish Petroleum Corporation (TPAO).

- Study report for examining the impact of high H2S content in ONGC''s B193 platform.

- Preparation of feasibility report for supply of petroleum products (in & around Mauritius and main land Africa, particularly east & south) was completed.

- Technical Feasibility Report & Detailed Feasibility Report for LPG transportation in Ramanmandi-Bahadurgarh pipeline along with facilities for separation of LPG/HSD, LPG/MS and MS/HSD for HPCL is in progress.

- BDEP preparation for Life Extension of Well Platform (LEWP) project (Tender-1, Tender-2 & Tender-3) for ONGC was completed.

- PMC services for post award activities of Life Extension of Well Platform (LEWP) project.

- FEED development for WIS Reconstruction Project to install a new water injection platform with a capacity of 3710 m3/hr at Mumbai High south field of ONGC is in progress.

Engineering

During the year, the Engineering Divisions of EIL continued their efforts towards providing optimized and value added services for all ongoing projects consistent with the client requirements and objectives of the Company. The various divisions maintained focus on key areas like System Improvement and quality of deliverables, enhanced productivity by adopting knowledge from past data, repeatability of design, enhanced software application and implementation of Electronic Data Management System (eDMS) alongwith improved information exchange and communication systems resulting in lesser manual interfaces. Major emphasis was laid on Automation and Standardization of systems, implementation of Internal Audit and Monitoring and updation of specifications standards and guides. A large number of innovative processes, concepts and technologies were implemented for the first time this year and some of them are as follows:

- Maiden Implementation of 66KV Gas Insulated Indoor Switchboards for a project being executed in EPCM mode including development of specifications, data sheets, offer evaluation and preparation of contract specifications (Technical). Till recently, EIL had been going in for 33KV as primary distribution voltage for all projects being executed in conventional mode. For DORC''s 20MMTPA refinery cum petrochemical project, 66KV has been designated as the primary distribution voltage across the plant in view of the large quantum of Electric Power required to be handled and distributed because of the mega size of the plant and future expansion plans for the same.

- Development of new specifications for XLPE insulated Fire Retardant Low Smoke Extra High Voltage Cables, suitable working voltage being enhanced from 66KV to 220KV. This was done in view of mega projects wherein 66KV or higher voltage is required.

- Use of energy efficient electrical equipment/systems has been initiated in all projects. As a responsible corporate with concern for global warming and carbon foot print, use of energy efficient motors of min. 1E2 type and 100% LED fixtures for lighting of process / offsite and utilities has been initiated. This has been made a standard practice for all projects being handled.

- To provide protection from soil side corrosion of carbon steel mounded bullets (new construction) with operating temperature not exceeding 55 deg.C, application of thermally sprayed Zn coating (TSZC) with paint top coat on external surface mounded bullet is employed as sacrificial type CP System. This requires no maintenance and monitoring. For corrosion protection of steel components exposed to water, bimetallic component (new construction) of cooler and condenser, application of thermally sprayed aluminum coatings (TSAC) with top coat Sealant on channel, tube sheet, flange faces, gasket seating surface is used as sacrificial type CP System. This also does not require maintenance and monitoring system.

Focused Services for corrosion protection and refurbishment of existing facilities:

- Revamping the Corrosion Protection system for LPG mounded storage tanks at GPU, Usar.

- Corrosion Protection audit for Vizag Refinery.

- Pipeline Inspection and CIPL survey of five pipelines from Jawahar Dweep to Pirpau, Mumbai Port Trust.

- Miscellaneous troubleshooting/consulting related to Corrosion Protection activities in IOCL, Mathura/ONGC/GAIL etc.

New technologies implemented/proposed by Instrumentation Department during the year are as under:

- GSM/RF based automatic water consumption data gathering system for household water metering in AMRUT Project for nine cities of Odisha.

- Study Report on implementation of Wireless TETRA system in BORL Refinery complex and its adjacent township. The study includes integration of existing VHF based system with TETRA system.

- A PLC based loading arm system for sensing loading arms and enforcing shutdown of the same in case of emergencies at Mumbai Port Trust Jetty Project.

- Maiden usage of Inception type aspiration based smoke detection system for the rooms of offshore platforms in Neelam Redevelopment project, ONGC.

New technologies implemented/proposed by Equipment Division during the year are as under:

- Basic design and engineering of Non-Conventional Coke Dispatch scheme for Aishwarya Project of IOCL to accomplish complete rake loading in space constraints i.e. in space approximately 3 times lesser than that required in conventional scheme. This has been achieved for the first time in EIL.

- Design and engineering of Truck Loading gantry to take care of wide variation in tanker sizes from 33 kl to 60 kl was carried out for Dangote Refinery & Petrochemical plant for the first time.

- Basic engineering and procurement of energy efficient VAV (Variable Air Volume) air conditioning system for LAB building in MRPL Phase-III Expansion Project and VRF (Variable Refrigerant Flow) air conditioning system for MBBVPL project of M/s GITL. This is a relatively new concept and has been done for the first time in EIL.

- Conceptualization of HVAC system for Catalyst, Chemical and TEAL storage building in Dahej Petrochemical complex (OPaL) and developing detailed HVAC scheme for Hazardous areas handling, especially for critical chemicals like Peroxide, TEAL etc. The building shall house chemicals and catalysts vital to plant equipment operation and requiring stringent HVAC conditions.

- A major landmark in design capability was reached this year with the design of 2 Ammonia Tanks of 10000 MT capacity.

Capability and Technology Enhancement in new areas having significant business potential in future:

Capability Development in the following new fields has been vigorously pursued and achieved during the year which will open up new business avenues for EIL:

- Design and Analysis of Bagging Silos.

- Nonlinear Finite Element Analysis of Pressure Vessel and Piping Components as per ASME Section VIII Division 2 Code 2015 edition.

- Thermo-Mechanical Fatigue Analysis of Coke Drums using Field Measured Thermocouple Temperature Data.

- Conversion of Non - Blast Proof Control Rooms to Blast Proof Control Rooms. New projects have been secured in this field already.

- Design and Analysis of Single Deck and Double Deck Floating Roof Tanks. Trouble shooting involving double deck floating roofs has been carried out for ENOC, Dubai.

- Evaluation of flaws like cracks in Pressure Vessels and Piping Components.

- Design and Analysis of Double Walled Liquefied Nitrogen Vessels.

- Dynamic Mooring Analysis of LNG Carriers.

The following specialized studies have been performed:

- Transient Preheat Analysis of Sodium Piping in Nuclear Plants.

- Seismic Re-qualification of Tanks.

Project Services - Costing

Cost Engineering Department of EIL provides cost related services for various projects in all fields of operations from inception to commissioning and beyond, for domestic as well as overseas jobs. Cost Engineering provides services such as preparation of capital cost estimates and financial/economic analysis for diverse activities ranging from technology selection to preparation of feasibility reports and option study estimates for investment decisions pertaining to projects handled by EIL in various areas like Refineries, Petrochemicals, Fertilizer, Cross country pipelines, Power projects, Metallurgy, Mines, Strategic Storage, Offshore Oil & Gas, Infrastructure (such as Namami Gange and AMRUT) etc. It provides cost estimates for procurement and tendering, assistance during price negotiation, cost monitoring and control during execution of projects under conventional and LSTK mode of execution. It also prepares cost estimates for bidding in EPC contracts.

Cost engineering has been maintaining historical data related to procurement and tendering of individual items ranging from nuts/ bolts/gaskets to packages worth thousands of Crores since past two decades, which is unparalleled worldwide. This data bank is constantly updated based on the projects handled by EIL. The data bank has captured the historical data for all the projects handled by EIL, at item, unit and project levels. Cost Engineering prepares thousands of cost estimates annually, worth Crores of Rupees for various projects/items with a wide range of value. This vast database provides capabilities for valuable support in decision making regarding investments, bid evaluation and award of contracts as well as effective cost control services.

Project Services - Planning

The Planning Division continued to provide planning, scheduling, monitoring, project risk management and material control services to various projects. Using state-of-the-art tools and its database, the Division caters to diverse project execution roles of the Company, viz. EPCM, PMC, LSTK/OBE modes. The Division also continued to provide project monitoring services to the Ministry of Petroleum and Natural Gas, as in the preceding years.

Procurement Services

The Procurement Services Division, through its knowledge pool of experienced manpower, provides complete supply chain management & contracting services to various domestic and global clients besides serving EIL''s in-house requirements. These services include Supplier/ Contractor Registration, Contracting & Purchasing of goods/ services/ works, Expediting, Inspection, Logistics, Supplier/ Contractor Performance Review etc. The division contributes to successful execution of projects being set up through procurement of works, material and services pertaining to specified quality within designated time at the most competitive price in a fair, just and transparent manner.

The Procurement Services Division, in order to excel in its services, has been continuously improving its systems and working procedures by introduction/ upgradation of IT tools, newer technologies, guidelines, database and most importantly, updation of knowledge and skills of its officials. This has resulted in efficiency, effectiveness and transparency in procurement.

Over the years, all procurement functions have been IT enabled - from the receipt of indent to inspection, dispatch and transportation of equipment. EIL was one of the earliest PSUs that had implemented e-Procurement as well as reverse auction for contracting and purchasing. The Division has an integrated in-house ERP & eDMS application linking all procurement functions across various geographical locations.

In the current year, orders for Rs.370 Crores of direct purchase and contracts were placed on suppliers/contractors globally for various OBE/LSTK/Depository projects. In addition, orders for Rs.3900 Crores were placed for various other clients'' projects.

EIL has been instrumental in stimulating and promoting domestic manufacturing and production capacities besides providing support to priority sectors in becoming more competitive and export oriented. EIL has also been in the forefront in supporting Government initiatives in enhancement of indigenous vendors'' involvement in Government Procurement.

While whole heartedly carrying on Government of India''s Make in India initiative with an aim to get global recognition for the Indian economy, EIL has been pursuing several initiatives like focus on import substitution, vendor interaction to upgrade indigenous manufacturing processes and technologies, online empanelment of prospective vendors and skill development of vendors through continuous interaction, assessment, evaluation and feedback.

Government of India, through Public Procurement Policy (PPP)-2012 for Micro and Small Enterprises, has set certain milestones for the Government and PSUs to achieve. EIL, through its commitment and dedication has been instrumental in implementation of this policy and ensuring increased participation of MSEs in the Company''s procurement. EIL has procured Rs.47.14 Crores goods and services from micro and small enterprises, which is around 30.57% of the total value of direct purchase orders for goods and service contracts, placed by EIL during the year 2015-16.

EIL has been organizing and participating in various seminars organised by Ministry of Micro, Small & Medium Enterprises to encourage development of MSME sector including SC/ST Entrepreneurs. EIL has participated in various seminars organised in Delhi, Kolkata, Karnal, Solan, Chennai, Ghaziabad by CII, HPCL, BPCL etc.

Procurement Services Division carried out in-process and pre-dispatch inspection of critical equipment at suppliers'' works as well as at Project sites through its regional Procurement Offices, located all over the country and overseas offices located in London, Shanghai and Milan. Major items inspected included two VGO Reactors (Chrome Moly) weighing 550 MT each, for BPCL IREP Project amongst many other large sized equipments. Ten engineers were trained in TOFD (Time of Flight Defraction) and PAUT (Phased Array Ultrasonic Testing), i.e., the latest NDT Techniques, which resulted in reducing delays as compared to conventional Radiography techniques.

Procurement Services Division has been playing a major role in development of Indian industry. Under the Government of India''s Make in India drive, several steps have been taken to increase local industry participation and provide encouragement to overseas industry towards setting up plants in India.

Construction

The Division provides services for Construction Management in totality including Contract Administration, Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse Management for various projects of EIL, withstanding diverse challenges and local impediments associated with climatic conditions, difficult terrain, space constraints etc. which are unique to the nature of the project.

During 2015-2016, Construction Division continued to provide Construction Management Services for various clients at 58 domestic and 5 overseas locations.

Concurrent prestigious commitments for the Division include Integrated Refinery Expansion Project at Kochi, OPaL Petrochemical Complex at Dahej, DCU for CPCL at Chennai, SJPL Paradeep, NBPS Guwahati, Indorama Fertilizer Project in Nigeria, Rehabilitation Project at Algeria, ADGAS in Abu Dhabi, Orpic in Oman and GASCO Abu Dhabi.

Construction activities commenced for the following projects during the year:

- Revival of Ramagundam Fertilizer Project

- DCU & RO Plant, IOCL Barauni Refinery

- Aishwarya Project, IOCL Haldia Refinery

- DHDT Project, Numaligarh Refinery

- De-bottlenecking of Bina Refinery, BORL

- DHT, NHT ISOM and TGTU, BPCL Mumbai Refinery

- Daman Development Project, ONGC Hazira

- RO Plant, IOCL Gujarat Refinery, Vadodara

- Central University of Punjab, Bhatinda

- UIDAI HQ Building, New Delhi

- PDPP, BPCL Kochi Refinery

- Kochi - Salem LPG Pipeline for KSPPL

- Petcoke Evacuation Road, Mangalore

- HDD-Yamuna/ Sutlej/ Solani

- Mounded Bullet, IOCL Panipat Refinery

- Ammonia Plant, Indonesia

- Orpic, Oman

- Dangote Refinery, Nigeria

- AMRUT, Odisha

- Namami Gange

The Construction Division leverages its highly skilled and motivated team for establishing and monitoring adherence of Construction Quality Management system. The system advocates quality plans, inspection test plans and implementation of special processes for concreting, welding involving latest NDT techniques, digital radiography, ultrasonic test etc. during all phases of construction to ensure trouble free commissioning/operation of critical units.

The Construction activities for the following Projects/Units were completed during the year:

- Assam Gas Cracker Project of BCPL at Lepetkata, Assam

- Wax Project, Numaligarh Refinery, Assam

- CDU-4, BPCL Mumbai Refinery

- 42" Re-Routed SBHT Line

- South Oil Jetty of IOCL Refinery, Paradeep

- Petrochemical Complex of GAIL at Vijaipur and Pata

- SSP, Vishakhapatnam

- PPU, Mangalore Refinery

- Dream Building-Delhi University

- Shahjalal Fertilizer Project, Bangladesh

- Indorama Fertilizer Project, Nigeria

- GAIL Spur Line for Hubbali Connectivity

The Construction Division deployed a host of innovative construction techniques and improvised equipment/machineries to minimize construction schedule across project sites, as mentioned below:

- Modular construction of Tech Structure and Pipe rack

- Use of Pre-fabricated structures

- Use of Auto Blasting and auto beveling machines

- Use of monsoon shelter/hanging platform

- Extensive use of Auto UT/TOFD techniques as an alternative to hazardous conventional NDT methods like radiography.

The Company''s commitment towards adherence of world-class Health, Safety and Environment standards in the execution of projects was epitomized by the multitude of accolades received from clients, during the year:

- 75 Million LTA free man-hours at BCPL, Lepetkata, Assam

- 58 Million LTA free man-hours at Petrochemical complex-II, GAIL, Pata

- 5 Million LTA free man-hours at EPCC-1, CPCL, Chennai

- 2 Million LTA free man-hours at DCU of IOCL Barauni Environmental Engineering Services

EIL''s accords utmost priority towards preservance of health and safety of people as well as natural environment during its services to customers. The Company enables the adoption of innovative integrated water management solutions for industries and municipalities, while working to increase environmental, social and economic benefits. EIL''s commitment to sustainable environment is reflected from the fact that the Company has a full-fledged Environment, Water & Safety Division in the company, which has completed several projects in diversified fields of environmental engineering including water & wastewater treatment; effluent recycle and zero discharge projects; Environmental Impact Assessment studies; Environmental Audits; Air Quality Assessment, Modeling and Control; Ground Water Monitoring Studies; Solid and Hazardous Waste Management; Oily Sludge Management; Volatile Organic Carbon (Voc) and Fugitive Emissions Control; Site Assessment and Remediation; Environmental Health & Risk Management; Environmental Management Plans etc.

Some of the major achievements of EIL during FY 2015-16 include the following:

- Membrane (ultra-filtration) based raw water treatment plant for OPaL''s Dahej Petrochemical Complex was commissioned successfully. This is the first plant in Indian hydrocarbon industry and one of the biggest installations in India for surface water treatment based on membrane processes. This plant will pave way for the treatment of raw water using membrane route with minimum footprint area and compatible cost besides advanced treatment and reduced project delivery time.

- EIL continued to provide consultancy services in municipal water and sewerage sector including Condition Assessment, Feasibility Study, entry level activities under Namami Gange Program, PMC Services to Odisha Water Supply & Sewerage Board (OWSSB) for management of Septage under AMRUT, Detailed Feasibility and Project report to Punjab Water Supply & Sewerage Board (PWSSB) for abatement of pollution in Buddha Nala in Ludhiana and PMC Services to Delhi Jal Board (DJB) for construction of Sewerage Network and Sewage Treatment Plants in Najafgarh Area as per NGT guidelines.

- Surveillance assessment of EIL was carried out by Quality Council of India (QCI) and the Company''s accreditation has been continued for EIA studies in India. EIL has now been accredited in twelve sectors with the addition of a new sector viz., ''Isolated Storage & Handling of Hazardous Chemicals''. The Company has QCI-NABET accredited in-house EIA Coordinators and Functional Area Experts.

- Environment clearances were obtained from the Ministry of Environment, Forest and Climate Change (MoEFCC) for RFCL''s Ramagundam Fertilizer Project, HPCL''s Visakh Refinery Modernization Project, and MOPA airport at Goa. Environment clearance was also obtained from State Expert Appraisal Committee (SEAC) for IOCL Mathura GT-IV Project.

As a part of MoU with MoP&NG, EIL is continuing its efforts towards Sustainable Development. Biodiversity Improvement Project (Phase-IV) for flowering plants in the EIL''s Gurgaon Complex has been completed.

Research & Development

EIL has continually endeavored to deliver optimum services to the clients by providing value addition and leveraging technological advances. It is with this objective of fostering the spirit of innovation and creativity in the organization that the Research and Development Division was established. R&D has contributed significantly in the consolidation of existing capabilities, development of new technologies and hardware besides enhancement of the portfolio for special technology related services. The Division is pursuing developmental activities, both in-house and in collaboration with academic institutes like IIT Delhi and other R&D organizations like IOCL-R&D, CSIR-IIP, BPCL (R&D) etc. Apart from these established R&D organizations, EIL (R&D) has also been collaborating and cooperating with small companies to promote the creative ideas generated by them.

During the year, R&D Division has undertaken the following initiatives for development of new capabilities and up-gradation / commercialization of existing capabilities:

Technology Development Projects Initiated:

- New separation devices for preflash drum

- Design methodology for trays with explosion hatches

- Basic Design for 1700 TPD fluidized type Coal Gasifier for processing high ash Indian coal

- Process scheme for selective Di-Olefin saturation for upgradation of Coker Gasoline

- Process for hydrogen recovery from refinery off-gas using cryogenic separation

- Process development for ATF hydro treatment

- Technology for Amine treatment (low pressure) of Hotwell off gasses

- Novel hardware for aiding reaction between basic media and middle or light petroleum distillates

- Feasibility study of improved 3 phase reactor configuration for hydroprocessing applications

- Catalyst and process for slurry phase residue hydrocracking

- Low pressure process technology for H2S recovery from clause tail gas

- Technology for Kerosene Dearomatization using Liquid Extraction for producing aromatic free solvents.

Technology Commercialization Efforts:

- Energy Efficiency Improvement Study (EEIS) at HPCL Visakh Refinery in association with CHT.

- Study for adequacy check and up-gradation of Anti Surge Valves for Propane Compressor of Train 1 & 2 in ADGAS LNG plant at Das Island, Abu Dhabi.

- Preparation of Feasibility Report for BORL towards implementation of process for hydrogen recovery from refinery off-gas using cryogenic separation.

- A proposal was sent to BORL for implementation of Kero Dearomatisation technology for production of aromatics free solvents from hydrotreated kerosene.

- Revamp of DHDT/DHDS reactor of IOCL Gujarat Refinery using EIL-IOCL developed DHDT/DHDS technology.

- Grassroot Sulfur Recovery Unit (SRU) and Tail Gas Treating Unit (TGTU) at Numaligarh Refinery.

- Grassroot Sulfur Recovery Unit with Oxygen Enrichment facility towards 35% capacity enhancement at BORL.

- Scope definition studies were carried out for integration of Group Gathering Station process system with Solar Block at ONGC, Mehsana.

- Preparation of technology booklets and brochures for highlighting capabilities and advantages of various indigenous technologies developed by EIL.

- Following orders were received for development of high capacity trays and packings from

- BPCL-Mumbai for supply of Parlpak in two quench columns and two amine absorption columns of TGTU

- HPCL-Mumbai for supply of Parlpak in one quench column and one amine absorption column of TGTU

Initiatives taken for strengthening technology tie ups:

Renewal of membership for FY2015-16 for

- Process Science Technology Center (PSTC), an industry- academia collaborative research program initiated by University of Texas, USA.

- Fractionation Research Incorporated (FRI), a non-profit ooperative research organization based at Oklahoma, USA.

- Process Integration Research Consortium (PIRC), University of Manchester UK.

Patents/Trademarks filed /granted

During the year 5 patents have been filed as below:

- Process and Apparatus for low pressure H2S absorption (provisional)

- Apparatus and method for removal of sulphur-containing impurities (provisional)

- Process for recovering hydrogen from off-gas stream and a system thereof.

- Low pressure process for recovering H2S from Claus tail gas and a system for absorbing H2S.

- System for gas-liquid distribution on a catalyst bed in a trickle bed reactor.

The following patent has been granted this year:

- Patent No: 269940 (19.11.2015) - Novel Distributor Tray for Trickle Bed Reactor

In a significant initiative, Trademarks pertaining to 9 in-house technologies were applied for registration to enhance the brand image of the Company.

Specialist Materials and Maintenance Services

EIL provides specialist services to various in-house projects and clients in Petroleum, Petrochemical, Metallurgical, Nuclear and Infrastructure sectors, in India and abroad. Some of the important assignments are mentioned below:

- Health study of dual diameter Usargarh - Dabhol gas pipeline for GAIL, Mumbai

- Health study of natural gas fuel pipeline for NTPC, Kawas

- Health assessment of Mumbai-Pune pipeline for HPCL Mumbai

- Health study of five pipelines from Pir Pau to Jawahar Dweep, Mumbai Port Trust, Mumbai.

- Restoration of Cathodic Protection system at Petrochemical Plant-I, GAIL, Pata

- Revamp of Cathodic Protection system for LPG mounded storage tanks at GPU, GAIL, Usar

Information Technology Services

Information Technology Services (ITS) Division continued to make advances, providing high-tech IT enabled services to EIL''s mainstream activities by developing/implementing IT solutions to deliver better quality services with emphasis on increased efficiency and improved productivity. Various initiatives were taken during the year as enumerated below:

- Up-gradation of IT Infrastructure

- Up-gradation of EILNet: The network and internet bandwidth of EILNet are being enhanced by adding new locations.

- New servers were procured and Oracle databases were migrated along with built-in redundancy and load-sharing using the RAC feature of Oracle. This facilitated a redundant environment for EIL applications as well as databases.

- The implementation of IT infrastructure at Abu Dhabi hub, which included PCs, peripherals, LAN and video- conferencing was completed.

- To automate schedule monitoring during project execution, a Manufacturing Schedule Portal was developed for suppliers. A new, web based system for Supplier Database Management is also under development.

- A new software was developed for management of tender related billing, titled RA Billing System. This shall facilitate construction engineers in provide faster billing information and the designers in accurate calculation of tender item quantities.

- Development of a 3D Modeling Progress Monitoring System is in progress for fetching information from various sources (PDMS/ PDS/ IPMCS/ eDMS etc.) and compiling them in a single user interface to allow the end user to track progress of modeling, stress analysis, isometric preparation, verification and other piping activities, thereby planning the timely release of Isometrics.

- Enhancements in existing systems

Improvement and enhancement of existing systems is done regularly at ITS. During the year, various software were enhanced by adding latest features and functionalities:

- As a part of statutory requirement of the Government of India, the eTDS system at EIL was modified in line with the changed formats and validations released by NSDL. Also, modifications were made in vendor TDS return filing program in compliance with the latest file validation utility of NSDL.

- A single window facility was developed for NEFT transfer of employee salary. It enables employees to have salary accounts in any bank all over India.

- A new web based system titled PayIT is being developed to enhance employee benefit modules by automating more processes, putting various checks and balances in place thereby creating a better, robust IT ecosystem.

- Workflows associated with processing of employee''s expense report related with domestic and foreign tours, LTC etc have been automated through the software Expense Management System.

- Enhancements were made in Financial Accounting System, including:

- Development of an asset register system to maintain electronic asset registers, calculate depreciation and written down value (WDV) besides facilitate tracking of transfer-out and transfer-in to other locations.

- A new feature was added for extraction of Service Tax Input Credit data for CenVatable and Non-CenVatable Service Tax.

- Implementation of CSC (Centralized Site Cell) concept was completed to control and withdraw site payments (for approximately 50 sites) and controlling the same through a centralized site cell at HO. Subsequent to this control, all bank, Imprest accounts and assets have been shifted to CSC branch.

- LSTK vendor payment system (LSTKVAcS), a new software, has been developed for automating advance payment processing, bills from suppliers, contractors and site RA, provision and release of withholding etc. apart from passing entries to accounting ledgers after deducting taxes as applicable.

- Development of a web-based "Equipment Dashboard" was completed to provide equipment level information at different stages in project management life cycle and present crucial milestones from the projects perspective.

Sustainable Development

EIL''s sustainability mandate has evolved from compliance to environmental regulations and norms in a way that make it a responsible organization, transparent to all its stakeholders. The Company''s project designs support sustainability right from conceptualization to plant commissioning and subsequently, the commercial operation. Energy efficiency, resource optimization and safety of plant personnel and society at large are the cornerstones of our business operation. They also ensure business continuity.

EIL has refocused its engineering philosophy and business models to achieve long term sustainable growth. It has also initiated evaluation and reporting of performance on the triple bottom lines pertaining to economic, social and environmental aspects. The sustainability initiatives at EIL shall definitely, propel the organization on an upward growth trajectory.

A separate Report on Sustainable Development is annexed to this Report.

Corporate Strategy & Business Development

Corporate plans are imperative for any organization with a vision and long term perspective. Corporate Strategy and Business Development (CS&BD) division performs the role of evaluating market opportunities, business developments, venturing into new geographies, tie-ups with licensors/vendors/collaborators and augmenting the portfolio of EIL by diversifying into sunrise sectors.

The division has been consciously focusing on the market and proposing strategies required for growth of the organization. The CS&BD Division has been focusing on core hydrocarbon sector requirements, seeding ideas to new and potential clients. In the current market scenario, it is essential that EIL, while harnessing its core strengths, should also explore projects in sunrise sectors and new geographies.

As part of enhanced value creation, CS&BD has been in continuous dialogue with various licensors/technology providers, with the objective of collaboration and provision of a bouquet of niche services to owners.

The CS&BD Division has initiated sustained business development activities in sunrise sectors like Water and Waste Water Treatment, SMART Cities, PCPIRs etc as a part of expansion initiatives in new lines of business. Sustained BD efforts are also under progress with ULBs, Municipal Corporations and respective state governments in this direction. EIL has also initiated active suo motu studies and opportunity mapping in Port & Terminals, LNG value chain and Defence sector in alignment with Government of India initiatives and an enhanced presence in these domains.

Through a self sustaining seeding exercise and extensive outreach approach, Corporate Strategy & BD division is focused towards enhancing the footprint of EIL and augmenting the current business portfolio.

HSE Management System

EIL accords highest priority to Health, Safety & Environment (HSE) in all aspects of its operation.

The Company''s HSE policy covers the following

- Compliance to statutory requirements, National & International Engineering codes and standards

- HSE Risks of activities, mitigation of the same to prevent injuries & ill health

- Minimization of environmental impact by conserving resources, reducing waste generation and preventing pollution

- Continual Improvement of the HSE Management system

EIL''s robust HSE Management system complies with International Standards OHSAS 18001 (Occupational Health and Safety Assessment Series) and ISO 14001 (Environmental Management system). The compliance with these standards was revalidated during the year by third party certification bodies through a surveillance audit.

Various procedures, checklists, templates and an HSE manual have been developed and implemented across the organization as part of HSE Management System. Awareness of the HSE Management system amongst employees was created through class room trainings, sharing of training materials/documents across different portals and an HSE Newsletter, in addition to live demonstration of fire safety drills.

All establishments i.e. Head Office, Gurgaon, Branch Office in Mumbai, Regional Offices, Regional Procurement Offices and Construction Sites of the Company have evolved Emergency Preparedness and Response Plans (EPRP). Class room trainings and mock drills are being conducted to gauge the effectiveness of these plans besides the preparedness to respond to emergencies and feedback on gaps in the EPRPs.

In addition, Hazard Analysis, Risk Assessment & Control (HIRAC) and Environmental Impact Analysis (EIA) are being carried out at all EIL locations to mitigate and control Health & Safety hazards and environmental impact.

Departmental audits and Management reviews of the HSE Management system are being carried out to strengthen and continuously improve the HSE Management system.

EIL has 26 qualified lead auditors for OHSAS 18001 and 3 qualified lead auditors for ISO 14001 in addition to several internal auditors who contribute in conducting effective internal audits.

HSE aspects are built into the procedures of various engineering departments. Exhaustive HSE checklists have been developed to ensure that these aspects are complied positively during process design and detailed engineering.

EIL has a detailed mechanism in place for HSE management at construction sites e.g. HSE specification for construction activities is included as a part of all construction contracts so that contractors comply with EIL''s HSE norms uniformly. Incident/Accident reporting and investigation procedures with specific reporting protocols have been developed and deployed.

Being a member of the British Safety Council and National Safety Council, EIL keeps abreast of the developments in HSE domain through updates, articles, journals etc.

EIL has been accorded the status of "HSE Qualified Contractor" by its client M/s NIS, Serbia.

Quality Management System

Quality is inbuilt into the processes, workplace, deliverables and services of your Company. The Quality Management System (QMS) of EIL was reassessed during the year to meet the requirements of ISO 9001:2008 by the accredited certification agency who conducted the renewal audit. The certification agency declared that the QMS of the Company continues to conform to international standards and extended the ISO 9001 certification for a period of three years.

Important ingredients of your Company''s quality initiatives are effective, comprehensive Internal Quality Audit processes, planned customer perception surveys, analysis of feedbacks from stakeholders and frequent guidance from the Management Review Committee (MRC) and Systems Committee. The MRC is chaired by the C&MD, with all functional Directors being members. The Systems Committee is chaired by a senior Executive Director, and senior officials from all areas of operation are members of the committee. Regular monitoring is done to analyze data and feedback for recommending improvements in processes, deliverables and QMS to reduce costs, shorten cycle time, address cross functional issues and improve credibility without affecting the environment. QMS implementation and its effectiveness have been increased further by computerization of certain processes through in-house software.

The Quality Management System of EIL''s UAE (Abu Dhabi) hub was also audited independently and reassessed for certification during the year. In addition, the Company participated as a prominent and active member in various committees for formulating products and quality standards by Bureau of Indian Standards.

Quality Management System at EIL provides a competitive edge in securing and executing projects with focus on customer satisfaction.

Risk Management

Your Company''s Risk Management policy with a robust supporting risk management frame work facilitates identification and assessment of new risks besides reviewing already identified risks. The process is based on identified risks and risk events or factors which require regular assessment and quick response. Based on the probability impact of the risk, requisite controls and mitigation action plans have been designed and implemented for risk treatment.

As an early warning mechanism, Key Risk Indicators (KRI''s) have been identified to measure the adequacy, effectiveness and efficiency of these controls and action plans for prioritized risks.

The objective of risk management in the Company is to act as an enabler in maintaining its knowledge edge, sustaining and expanding the business, being competitive and ensuring execution of projects within budgeted cost, time and quality, resulting in improved turnover and profitability.

To cover all the elements of risk at enterprise level, risks have been divided into nine categories as shown in the following diagram:

Risk compliance is verified regularly to test the compliance of controls and mitigation plans. A summary is presented to the Risk Management Committee (RMC). Risk identification and assessment processes, as well as risk audit process are being handled through "Enterprise Risk Management System (ERMS)" software.

Project Risk Management has been implemented for important projects as per the criteria approved by RMC. The risks severities are categorized into critical, major, cautionary and minor based on Risk Score (probability multiplied by overall impact). A risk report, issued monthly, along with mitigation action plans is circulated to all concerned regularly for action.

The status of Enterprise Risk Management (ERM) & Project Risk Management (PRM) Systems is presented to the Risk Management Committee of the Board, the Audit Committee and the Board of Directors.

Your Company issues a bi-monthly digital news letter titled "Risk Screen". The "Risk Screen" is emailed to all the employees. This spreads awareness about various risk management activities/ achievement, new topics/practices/ updates on ERM or PRM and creates enthusiasm in them to control risks proactively in their work processes.

The Company is committed to further strengthening its risk management capabilities in order to protect interests and enhance shareholder value.

Vigilance

During the year, CTE type examination of EIL''s jobs on LSTK/OBE basis, random inspection of in-house contracts/purchases, scrutiny of Immovable Property Returns, investigation of complaints etc. were carried out by the Vigilance Department with the focused objective of ensuring conformity to Company procedures and Government guidelines. Various rules, regulations and procedures were reviewed during the year for systemizing the work. The observations reported by CTE/CVC were examined and necessary actions taken. System improvements were suggested to the Management and necessary measures were undertaken for improvement.

A number of initiatives were undertaken for spreading vigilance awareness amongst the employees which include orientation program for new joinees on May 22, 2015 and celebration of Vigilance Awareness Week 2015 during October 26-31, 2015 in various offices of EIL. As part of the Week, a seminar on the topic "Preventive Vigilance as a tool for Good Governance" was organized on October 28, 2015 wherein Shri M. P. Juneja, former Additional Member - Railway Board & Ex. CTE, CVC delivered the keynote address in the presence of senior management officials of the Company. Various competitions viz. Essay, Poster, Slogan, Debate etc. were also organised during Vigilance Awareness Week.

A Compendium of Vigilance guidelines and circulars for Contracts & Purchase Processes was inaugurated by C&MD and Functional Directors on March 29, 2016. As per directions issued by the Central Vigilance Commission and the Department of Public Enterprises, details of vigilance activities were also presented to the Board for the period ending June 2015 and December 2015.

Vigilance continued to monitor the progress of the following programs/policies:

- Leveraging Technology

Reverse auctioning, e-tendering, e-payment, e-receipt, etc have already been implemented in the Company and are being monitored regularly against the set targets. Clearance of vendors'' bills on ''First in, First Out'' (FIFO) basis under Bill Tracking system (BTS) is ensured. BTS has a provision for facilitating details about the status of vendors'' bills.

- Complaint Handling Policy (CHP)

As per CVC Guidelines, EIL has formulated a Complaint Handling Policy (CHP) to resolve complaints/grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is linked to the Company''s website which is regularly monitored by Vigilance Department with respect to the status of complaints

- Policy regarding recruitment of Ex-employees

EIL has a policy for hiring retired/ex-employees of the Company and other PSUs. Vigilance ensures that employees who have been penalized during service are not considered for re-employment.

- Job Rotation

Job rotation of sensitive posts is being done and the same is being reported on monthly basis.

- Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all its business dealings. An Integrity Pact Program was adopted in November, 2011 for all Contracts & Purchases in EIL''s account for enquiries having threshold value over Rs.5 Crore. The threshold value has now been lowered from Rs.5 Crore to Rs.1 Crore.

- Online Vigilance Clearance (OVC) and Scrutiny of IPRs

Online Vigilance Clearance and Immovable Property returns for employees are being carried out through the website for Vigilance activities - "Avalokan" on OVC portal.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth.

EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having competent professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports are regularly submitted to the Management and the major findings to the Audit Committee of the Board.

Human Resource & Industrial Relations

People are at the heart of your Company''s business as the quality of services that the employees deliver directly impacts the results of the organization. HR thus endeavors at developing a motivated workforce which is committed and aligned with the organization''s strategic goal and objectives. Employee-centric policies and development initiatives drive the human resource to deliver their best. The policies are regularly re-visited and updated to keep them relevant.

As of March 31 2016, EIL has 3042 employees, including 2425 professionally qualified employees. Approximately 5.69% of our employees are located outside India functioning in international work environments.

- Talent Acquisition

Our talent acquisition strategy aims at identifying and developing a well equipped talent pool. Diverse recruitment models are employed to meet dynamic business needs with intake of fresh talent, domain specialists, short term hiring through outsourcing and onboard consultants/advisors.

Planned job rotation has been implemented for optimum utilization of available human resources.

- Performance Management System

In the area of Talent Assessment and Appraisal, EIL has in place a robust and transparent Performance Management System that gives weightage to both performance and potential. The Performance Management System is an online process. The outcome of Performance Management System is used for performance related pay, career progression, training & development and succession planning.

- Employee Welfare

During the year, efforts were made for aligning welfare measures towards enhancement of the quality of worklife for employees. Various employee welfare initiatives were taken ranging from holding talk-cum-interactive sessions on Health & Lifestyle Enrichment, extension in medical benefits, coping with stress etc besides sports and other family get-togethers for enhancing the quality of life.

- Thrust on Sports

Providing a supportive role towards employee health & fitness, EIL promotes a culture of sports by organizing weekend sessions and interdepartmental tournaments for various sports. Employees are encouraged to participate in trekking expeditions and sport tournaments at regional and national levels. The employees participated in 10 PSPB tournaments. An active member of Petroleum Sports Promotion Board (PSPB), EIL hosted the PSPB Lawn Tennis Tournament at R.K. Khanna Stadium, New Delhi where 8 teams participated. Annual Sports Day is a calendared event and was organized in December 2015.

- Annual Awards

Recognizing the contribution of team(s) and individuals, employees were felicitated through different categories of Annual Award, viz

- Best employee of the year in Staff Category

- Young Executive of the Year

- Professional of the Year

- Innovation Awards-Individual Innovation, Team Innovation

- Technical Paper Writing

Annual Awards for year 2014-15 were presented on Independence Day. A total of 37 employees were awarded in different categories.

- Training & Development

In alignment with overall organizational and business strategy, the Training Division continued to facilitate individual and organizational development. An Annual Training Calendar was drawn up enlisting programmes planned for the year. For the development of internal resources, 111 Domain training programmes, 73 soft skills/ behavioral and 6 Leadership Development Programmes were organized for professional and life skill enhancement besides development of leadership continuity. Around 412 participants were nominated to 132 external training programmes organized by reputed organizations and institutions in India and abroad.

Average training days per employee was 2.57 during the financial year.

Structured training programmes were planned and organized on specialized subjects for clients, generating revenues for the Company and showcasing EIL''s technical dominance. During the year, 4 open programmes were organized at Company''s Training & Development Centre, Gurgaon and 12 customized programmes were conducted at various client locations including Bahrain, Vadodara, Guwahati etc.

- Mentorship Development

With an objective to foster professional relationships and provide a forum for offering constructive advice to support the career development of the mentee, EIL supports a Mentorship Development Programme allocating trained mentors in the ratio of 1:3 (Mentor: Mentee) for all new entrants to the organization. Structured interactions are encouraged for building positive relationships between the mentor & mentees for long time benefits, both to the mentee and the organisation.

- Leveraging IT in HR

IT assisted HR processes are regularly updated to comply with existing rules and policies with emphasis on ease of use and user friendly GUIs (Graphic User Interface). More than 1060 news items/reports were uploaded on web based EIL Connect which recorded more than 17 Lakh hits during the financial year, thus continuing its efficacy in maintaining an interactive environment with employees located in India and abroad.

- HR Initiatives

The HR Strategy was formulated, integrating multiple perspectives on the links between business objectives and Human Resource functions. Cross functional teams were formulated for pointers on how HR can contribute towards better integration of business strategy with HR functions on identified focus areas.

Assessment & Development Centres (ADCs) were conducted for 67 senior management personnel during October - November 2015, for assessing officers in both individual and group based environments, for all round development.

Performance Contracts (PCs) for 2015-16 were executed for all Divisions of HR Directorate cascading business objectives within HR functions. The four perspectives namely Operational, Process, Financial and HR, with each perspective having defined Key Performance Indicators (KPIs) and quarterly targets enabled continuous monitoring and evaluation of performance.

- Implementation of Government Directives on Scheduled Caste/Scheduled Tribes

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavoring towards safeguarding the interests of SC/ST employees.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employee''s Welfare Association by holding periodical meetings with the Association.

Scholarships were awarded by EIL to 15 SC and ST (SC- 10 and ST-5) undergraduate engineering students.

The percentage of employees belonging to Scheduled Castes and Scheduled Tribes was 18.6% and 4.5% respectively, out of the total employee strength of the Company (as on March 31, 2016). Regular meetings were held with representatives of SC/ ST Welfare Association and Liaison Officers for redressal of their grievances/concerns.

- Initiatives for the benefit of Persons with Disabilities

EIL is implementing the provisions of the Disabilities Act, 1995 by way of 3% reservation for Persons with Disabilities. Special Recruitment Drive for Persons with Disabilities (PwDs) was carried out in FY 2015-16. As on March 31, 2016, there are 41 (i.e., 1.34%) PwD employees on the rolls of the Company.

- Women Development

Women constitute approximately 12.5% of EIL''s human resource, wherein 85% are in the officer cadre. EIL has in place, a Women Forum comprising of senior officials as Patron, Chairperson and Co-Chairperson, to cater to the development needs of women employees.

Adequate opportunities are made available to women employees for participation in National as well as International Conferences and Symposiums so that they benefit from the knowledge of Industry and Domain Best Practices.

Corporate Social Responsibility

EIL''s CSR policy aims at creating a sustainable environment through its activities for community and environment.

As per Companies Act 2013, a budgetary allocation of 2% of the net profit made during three immediately preceding financial years has been done in the financial year 2015-16 for CSR activities.

Education: Extensive interventions were made by the way of adopting 100 Ekal Vidyalayas of Dibrugarh District in Assam and 25 Vidyalayas in Odisha under the ''One Teacher School'' program. Educational programmes are being supported in schools of Uttarakhand and slums of Delhi/NCR. Construction of classrooms and toilets (for girls) at Cuddalore and set up of Digital Library for children in rural areas of Andhra Pradesh were undertaken. Projects like construction of auditorium in Ongole, Prakasm district, Andhra Pradesh, compound wall of school in Thiruvottiyur, Chennai are under implementation.

Health Care: Four Mega health camps were held for the needy in Dibrugarh, Mangalore, Vadodra and Rawatbhata. Projects such as 30 health checkup camps for poor in Delhi/NCR, installation of medical equipment for slums dwellers of Delhi and Mobile Medical Care Units for affording health care to needy villagers in remote Odisha are in progress.

Drinking Water/Sanitation: EIL supported the construction of sanitation facilities in schools of Assam, Bihar, Odisha and Tamil Nadu under Swachh Vidyalaya Project.

Installation of RO plants in six locations at Kakinada in Andhra Pradesh and construction of 20 RO Plants in Dharwad District, Karnataka are in progress.

Rural Electrification: EIL supported installation of two Units of 40 KwP Solar Photo Voltaic Power Plants on community participation basis, one each at Pipcha and Pigmo in Zanskar subdivision, Kargil district, Jammu and Kashmir. LED based solar public lighting system and solar street lights were installed in Mizoram, Odisha and Uttar Pradesh. Installation of Solar Power Plant at Ramakrishna Ashram, New Delhi is in progress.

Environment Protection/Sustainability: EIL supported the social outreach programme of Ladakh Region and installation of environment friendly, green cremation system in New Delhi.

Women Empowerment: EIL is supporting skill training for underprivileged women in dress making and embroidery in villages around Kota. EIL is also facilitating livelihood training in cottage industry and basic IT skills for 5,000 women of backward sections of the society in Delhi besides conducting a functional literacy programme for economic empowerment of 120 tribal women of Bolangir District, Odisha

Upliftment of underprivileged: Health Care equipment was distributed to specially abled, old and destitute in New Delhi. Assistive aids and appliances were distributed to poor and needy with disabilities in Odisha and Assam. A lift was installed at an old age home in New Delhi. EIL is also supporting the construction of first floor of an old age home for the blind in New Delhi and providing ''Multi-Facility Health Package'' for destitute people. 10 Camps for distribution of assistive aids and appliances to PwDs are underway.

Community Development: To strengthen the rural infrastructure in Yanam (Puducherry), a project for construction of RCC retaining wall / road side drains / Compound wall is in progress.

Vocational Training/Skill Centers: Training for employment generation and skill development of 40 candidates belonging to SC, ST, OBC and BPL categories at Bharuch, Gujarat and special placement linked skill development training for various trades like IT/ITES, Hospitality, Retail

Supervisory, Garment etc for youth in Manali and Siruseri area in Tamil Nadu was supported by EIL. Skill development training is also being extended to youth at Bhopal and Faridabad.

Swachh Bharat Abhiyan

Swachh Bharat Abhiyan is a transformational initiative launched by the Hon''ble Prime Minister, Shri Narendra Modi. Your Company has eagerly responded to the Hon''ble Prime Minister''s clarion call for a Swachh Bharat and undertaken various activities during the year :

Swachh Vidyalaya Program

To help provide the basic amenity of safe and clean toilets to a large segment of the Indian population esp. the women, EIL adopted 509 school toilets in the states of Bihar, Odisha, Tamil Nadu and Assam for construction and repair. Separate toilets were planned for girls and boys in schools, some of which are located in very remote areas. With active involvement of the local, state and central govt., construction of all toilets was achieved before schedule.

Shramdan

EIL officers have been participating enthusiastically in cleanliness drives that are organized on a regular basis in and around the Head Office, adjoining traffic islands and various site premises.

Awareness Campaigns/Social Media

Photographs, news items and articles on various activities relating to Swachh Bharat Abhiyan have been uploaded/published regularly on the Corporate Website, Intranet, Facebook, Twitter, Company Journals etc.

The Unaudited Financial Results of EIL for most of the Quarters were designed on the theme of "Swachh Bharat".

To increase public awareness about the Swachh Bharat Abhiyaan, an outdoor advertisement has been on display since the last year at a bus queue shelter in Bhikaiji Cama Place which caters to the high volume traffic passing through the busy Ring road. A front-lit signage (60 ft x 30 ft) has also been installed on the front facade of EI Annexe building.

Cleanliness and Sanitation

Inspection of toilets and floors in office premises is undertaken almost daily/weekly at all EIL offices. Detailed Reports are received from site In-charges via EIL''s Field Personnel Cell (FPC) and Administration personnel at EIL HO /Gurgaon.

Waste to Fuel

EIL adopted the city of Mathura in Uttar Pradesh to set up a Waste to Fuel conversion facility as a part of Swachh Bharat initiatives being undertaken under the aegis of MoP&NG. Active discussions and strategies are underway for its execution.

In addition to the above CSR highlights, a report on CSR activities as per the provisions of the Companies Act, 2013 is annexed to this report.

Make In India

"Make In India" is a path-breaking initiative launched by the Hon''ble Prime Minister aimed at reviving and revitalizing the manufacturing sector in the country. As part of the "Make In India" campaign, your Company has been pursuing several initiatives:

- Identification of current imports with specific focus on import substitution

- Contribution to Government''s Policy formulations to encourage indigenization

- Vendor interaction to upgrade indigenous manufacturing technologies

- Indigenization of equipment manufacturing to increase domestic content

- Vendor enlistment through continuous interaction, assessment and evaluation

- Online empanelment of prospective vendors

- Continuous interaction with other organizations towards collaborative research in order to promote indigenous technology

- Local skill development initiatives and enablers.

Your Company is piloting the midstream sectors for Make In India initiative under MoP&NG and is a member of the Steering Committee set up for the purpose. To this effect, regular vendor meets are being organized by EIL for interaction with the specific domain based industries and online vendor empanelment processes. Towards the Make In India campaign, apart from regular vendor meets, two dedicated workshops were also organized with select domestic and overseas stakeholders in Mumbai and Delhi for sensitizing the manufacturing sector to various policy initiatives being contemplated by the Govt. of India and Oil & Gas sector.

EIL has been actively engaged with MoP&NG and other Oil & Gas sector organizations for this initiative through participation in several stakeholder meets and contributing to various draft policy formulations such as Purchase Preference Policy which would be mandated under the ambit of Make In India.

Official Language

To propagate and enhance the usage of Official Language in communication, various initiatives like facilitation of Regular Classes and Correspondence Courses, Hindi workshops and IT intervention facilitating ease of use were undertaken.

Rajbhasha Vibhag organized ''Poster'' and ''Hindi Kavita Path'' competition for children of EIL employees during the Pakhwada Celebration.

Official Language inspections were conducted by the Committee of Parliament on Official Language and Department of Official Language, Ministry of Home Affairs. Rajbhasha Vibhag also carried out regular inspections of 7 departments and 6 EIL offices.

Awards and Accolades

EIL was the proud recipient of the following awards and accolades through the year:

- Dun & Bradstreet India''s Top PSUs Award 2015 in the category of "Consultancy Services: Engineering & Technology".

- Governance Now PSU Award 2015 in the category of "Value Growth."

- 8th CIDC Vishwakarma Award for Construction Health, Safety & Environment to DCU, CPCL Refinery, Chennai & Best Construction Projects to CDU-4 Project, BPCL Refinery, Mumbai.

- "Outstanding Concrete Structure in Delhi NCR for the year 2014" Award by the Indian Concrete Institute for Data Centre Complex constructed at Manesar (Haryana) for UIDAI.

- Skoch Order-of-Merit Awards 2015 for Tail Gas Treating Technology.

- Second Prize in Petroleum Rajbhasha Shield 2014-15 awards by Ministry of Petroleum & Natural Gas, Govt. of India.

- National Awards for Excellence in CSR & Sustainability by "World Federation of CSR Professionals" in the category of "Best Overall Excellence in CSR".

- Award for Most Innovative use of Training & Development as HR initiative for OD by World HR Congress.

- Awards in the categories of "Organization with Innovative HR Practices" and "Best Corporate Social Responsibility Practices" by Asia Pacific HRM Congress.

- Legend PSU of the Year Award for R&D in Petrochemicals by News Ink Media.

- National Award for Innovative Training Practices by Indian Society for Training & Development (ISTD).

- Global HR Skill Development Award 2016 by Energy and Environment Foundation.

- Citation on "100 Most Influential CFOs of India" to Shri Ram Singh, Director (Finance), EIL by Chartered Institute of Management Accountants (CIMA).

- Delhi Management Association''s ''Prashasti Samman''- National Award for Excellence to Successful Women Entrepreneurs to Ms. Veena Swarup, former Director (HR).

- Scope Excellence Award for Outstanding Woman Manager to Ms Vartika Shukla, ED (R&D).

- 8th CIDC Vishwakarma Award for Public Officer to Shri. A. Firoze, former GM (Corporate Affairs and CSR).

- "Women of Excellence Awards 2015" by IPE to Ms. Indrani Krishnan and Ms. Anubha T Agarwal.

Joint Ventures

Ramagundam Fertilizers and Chemicals Limited (RFCL)

RFCL has been incorporated as a joint venture company of Engineers India Limited (EIL), National Fertilizers Limited (NFL) and Fertilizer Corporation of India (FCIL), for setting up a Urea and an Ammonia plant at Ramagundam in Karimnagar district of Telengana. The JV will be responsible for setting up a gas based urea plant with a capacity of 3850 TPD. NFL & EIL will each have 26% equity in the JV and EIL shall take up project execution in EPCM mode. The project completion schedule is challenging for EIL with a time line of 36 months for commissioning, from the technology award date. NFL shall provide expertise for operation and maintenance of the plant as well as for marketing of the product.

TEIL Projects Limited

TEIL Projects Ltd., a joint venture Company with Tata Projects Limited, is executing consultancy projects in City Gas Distribution, CNG, Oil, Gas and Refinery sectors. The prospects of the JVC do not appear to be good and with the fall in the commodity prices especially Oil, the possibility of securing orders is virtually nil. The shareholders of JVC, therefore, decided to dissolve the JVC with a view to arrest further erosion of capital.

Subsidiary Companies

Certification Engineers International Limited (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from ONGC, VMSS, RINL, GSPL, BPCL, Reliance Industries Ltd. and various State Governments Like TEDA, VMSS, Rajasthan Housing Board and others, notable among these being:

- ONGC- Certification Services for Mumbai High Daman Development Project & C-26 Pipeline and TPI services for Sagar Samrat Conversion Project, Additional Development of Vasai east and Additional Pipeline Project.

- TEDA, VMSS, Rajasthan Housing Board - TPI for various infrastructure Projects.

- GSPL - TPI for various Pipeline Projects.

- Reliance Industries Ltd, for marketing terminals at Chennai, Kanpur and Haldia.

Apart from these, CEIL secured many Third Party Inspection assignments from clients like IOCL, MDL, DRDO, Afcon Infrastructure Ltd., Jindal Saw Ltd. ERDMP & statutory audit assignments from GAIL, IOCL, Cairn India Ltd. etc.

The Board of Directors of the Company has recommended for the financial year 2015-16, a final dividend of Rs.300/- per share (of face value of Rs.100/- per share) in addition to Rs.200/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2015-16 works out to Rs.500/- per share. Payment of final dividend is, however, subject to approval of shareholders in the ensuing Annual General Meeting of the Company. The dividend, if approved and declared in the forthcoming Annual General Meeting, would result into total dividend outflow of Rs.500.00 Lakhs and dividend distribution tax of Rs.101.79 Lakhs aggregating to total outflow of Rs.601.79 Lakhs.

EIL Asia Pacific Sdn.Bhd

EIL Asia Pacific Sdn. Bhd. (EILAP) was incorporated on February 21, 1994 under the Malaysian Companies Act, 1965. EILAP was not able to secure business because of mandatory Bhoomiputra regulations of the Government of Malaysia. The JV was closed in the FY 2015-16.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of SEBI Regulations and DPE Guidelines in this regard. The Board of Directors support the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity. As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors'' Certificate on compliance of conditions of Corporate Governance, along with the Management''s Reply on the comments of Auditors is annexed to this report.

Number of Meetings of the Board

The Board met six times during the financial year 2015-16, the details of which are given in the Corporate Governance Report annexed to this Report which forms part of the Annual Report. The intervening gap between any two meetings was within the period prescribed under Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance. For further details regarding number of meetings of the Board and its committees, please refer Corporate Governance Report, annexed to this Report.

Composition of Audit Committee

The recommendations made by the Audit Committee during the year were accepted by the Board. The other details of Audit Committee like composition, terms of reference, meetings held are provided in the Corporate Governance Report annexed to this Report.

Declaration by Independent Directors

The Company has received necessary declaration from each independent Director under Section 149(7) of the Companies Act, 2013, that he meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance.

Training of Board Members

The Company has a well defined Training Policy for training to Board Members which inter-alia include the various familiarisation programmes in respect of their roles, rights, responsibilities in the company, nature of the industry in the company operates, business model of the company etc. Further, the same is also taken care during the various strategy meets of the Company and different presentations in the Board/Committee meetings on the statutory Laws. The details of such familiarisation programmes/Training Policy have also been posted on the website of the Company at the http://engineersindia. com/corporate-governance/m-160 web-link.

Directors and Key Managerial Personnel (KMP)

- Inductions

Shri Sandeep Poundrik was appointed as Director (Government Nominee) w.e.f. July 14, 2015 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31033/1/2012- CA/FTS:18688 dated July 14, 2015. Ms. Sushma Taishete was appointed as Director (Government Nominee) w.e.f. January 2, 2016 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31033/1/2012-CA/FTS:18688 dated January 2, 2016. Shri Umesh Chandra Pandey, Shri Vikas Khushalrao Deshpande and Dr. (Prof.) Mukesh Khare were appointed as Additional Directors (Non-official Part- time Independent) w.e.f. November 20, 2015 and Mrs. Arusha Vasudev was appointed as Additional Director (Non-official Part-time Independent) w.e.f. December 15, 2015 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31034/12/2015-CA/FTS:39810 dated November 20, 2015.

- Re-appointments

In accordance with the provisions of the Articles of Association of the Company, Shri Ram Singh, Director (Finance) and Shri Ashwani Soni, Director (Projects) would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment. In accordance with the provisions of the Companies Act, 2013, Shri Umesh Chandra Pandey, Shri Vikas Khushalrao Deshpande, Dr. (Prof.) Mukesh Khare and Mrs. Arusha Vasudev who were appointed as Additional Directors (Non-official Part-time Independent) after the date of last Directors'' report, shall vacate their office at the ensuing Annual General Meeting. Necessary notices have been received from them under section 160 of the Companies Act, 2013, proposing their candidature for appointment. The same has also been given on the website of the Company at http://engineersindia. com/corporate-governance/m-160. The Board recommends their appointment. Brief resume of the Directors seeking appointment/ reappointment together with the nature of their expertise in specific functional areas, disclosure of relationships between Directors inter-se, names of companies in which they hold Directorships and the membership/chairmanship of Committees of the Board along with their shareholding in the Company etc. as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DPE Guidelines on Corporate Governance and other statutory provisions are given in the Annexure to Notice of 51st Annual General Meeting.

- Retirements

After the date of last Directors'' Report i.e. July 9, 2015, Dr. Archana S. Mathur, Director (Government Nominee) ceased to be Director of the Company w.e.f. 28th October, 2015. Ms. Veena Sawarup, Director (HR) ceased to be Director of the Company w.e.f. 1st July, 2016 due to her retirement on attaining the age of superannution on 30th June, 2016. The Board placed on record its sincere appreciation for the valuable services rendered and contributions made by Dr. Archana S. Mathur, Director (Government Nominee) and Ms. Veena Swarup, Director (HR) of the Company.

- Additional Charge

Shri Sanjay Gupta, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Commercial) for a period of 3 months w.e.f. 1.06.2015 to 31.08.2015 or till the appointment of regular incumbent to the post or until further orders whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/3/2015- CA/FTS:38389 dated 25.06.2015 which has further been extended twice and Shri Sanjay Gupta continues to hold the same.

Secretarial Auditor

M/s Agarwal S. & Associates, Practicing Company Secretaries, was appointed to conduct the Secretarial Audit of the Company for the financial year 2015-16, as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit Report for the financial year 2015-16 along with the Management''s Reply on the comments of Secretarial Auditor is annexed to this Report.

Vigil Mechanism/Whistle Blower Policy

The Company has formed the Whistle Blower Policy/Vigil Mechanism and no personnel have been denied access to the Audit Committee. The same has also been given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Transfer of Amounts to Investor Education and Protection Fund

A detailed disclosure regarding the same has been given in the Corporate Governance Report which is annexed to this Report. The same has also been given on the website of the Company at http:// engineersindia.com/corporate-governance/m-160.

Listing on Stock Exchanges

The Company is listed on the BSE Ltd. and National Stock Exchange of India Ltd. The Company has paid Listing fees for the Financial Year 2015-16 to the above Stock Exchanges in time.

Nomination and Remuneration Committee

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors, both Executive and Non-Executive are made by the Government of India and are being paid remuneration as per the terms of their appointment. The Company has a Nomination and Remuneration Committee and detailed disclosure in this regard has been given in the Corporate Governance Report which is annexed to this Report.

Performance Evaluation of the Board

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors, both Executive and Non-Executive are made by the Government of India. Therefore, the Company has not laid down any criteria for performance evaluation of the Independent Directors and the Board.

Particulars of Contracts or Arrangements made with Related Parties (RPTs)

In line with the provisions of the Companies Act, 2013 and the Listing Regulations, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company at http://engineersindia.com/corporate-governance/m-160. The Company gives the disclosure regarding material transactions with related parties on quarterly basis along with the compliance report on Corporate Governance. As per requirements of Section 134 (3) of Companies Act, 2013 read with rule 8 of Companies (Accounts) Rule, 2014, particulars of contracts or arrangements with related parties as referred in section 188 (1) of the Companies Act, 2013 is annexed to this report. During the year, there were no material RPTs. Further, suitable disclosure as required by the Accounting Standards (AS18) has been given in the Notes to the Financial Statements.

Details of Loans/Investments/Guarantees

In compliance with the provisions of the Companies Act, 2013, the details of investments made and loans/guarantees provided as on 31.03.2016 are given in the respective Notes to the financial statements.

Extract of Annual Return

In accordance with Section 134(3)(a) of the Companies Act, 2013, an extract of the annual return in the prescribed format is annexed to this report.

Cost Auditors

EIL does not fall under the cost audit rules and therefore, there is no requirement of cost audit for the Company in terms of amended Companies (Cost Records and Audit) Rules.

Conservation of Energy, Research and Development, Technology Absorption, Foreign Exchange Earnings and Outgo

As the Company operations do not involve any manufacturing or processing activities, the particulars as per the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, regarding conservation of energy and technology absorption, are not applicable. The particulars regarding expenditure and earnings in foreign exchange are given in Note No. 2.27 of the Notes to Accounts.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.

Other Disclosures

No disclosure or reporting is required in respect of the following items as either these were not applicable or there were no transactions on these items during the financial year 2015-16:-

i. Details relating to deposits covered under Chapter V of the Act.

ii. Issue of equity shares with differential rights as to dividend, voting or otherwise.

iii. Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

iv. Details regarding receipt of remuneration or commission by the Managing Director or the Whole-time Director from any of its subsidiaries.

v. Buy-back of shares.

vi. Issue of Bonus shares.

Further, EIL Asia Pacific Sdn Bhd Malaysia ceased to be the subsidiary of the Company during the year 2015-16 whereas the companies which have become or ceased to be joint ventures or associate companies during the year are NIL.

During the financial year 2015-16, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year and the date of this report.

Code of Conduct

EIL has formulated a Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel. The confirmation of compliance of the same is obtained from all concerned on annual basis. All Board Members and Senior Management Personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance annexed to this Report. The Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel are given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Right to Information

Under the provisions of section 4 of the Right to Information Act, 2005 every public authority is required to display necessary information to citizens to secure access to information under the control of public authority in order to promote transparency and accountability in its working and functioning.

EIL, being a responsible public sector undertaking, has displayed essential information on its website under the head RTI. The management has notified CPIO and the First Appellate Authority (FAA) in compliance with the requirements of the RTI Act. Between April 01, 2015 and March 31, 2016, a total of 127 (one hundred twenty seven) applications were received by the Company and all of them were disposed off by providing requisite information as per rules. Apart from RTI applications, the Company also received appeals against the decision of CPIO, which too were duly attended to and appropriately disposed off by the First Appellate Authority.

Directors'' Responsibility Statement

Your Directors state that :

a) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, have been followed and there are no material departures from the same;

b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2016 and of the profit of the Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a ''going concern'' basis;

e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Auditors

M/s Arun K Agarwal & Associates, Chartered Accountants were appointed as Auditors of the Company for the financial year 2015-16 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include State Bank of India, Indian Overseas Bank, State Bank of Travancore, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank, ICICI Bank, Indian Bank, Bank of India, Oriental Bank of Commerce, Canara Bank, IDBI Bank, Axis Bank, IndusInd Bank and Citi Bank.

Particulars of Employees

As per the provisions of Section 197 of the Companies Act, 2013 and rules made thereunder, Government Companies are exempted from inclusion of the statement of particulars of employees. The information has, therefore, not been included as part of the Directors'' Report. However, the same information is open for inspection at the registered office of the Company on all working days between 10.30 a.m. to 12.30 p.m. prior to the Annual General Meeting.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development, we will continue to provide world class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results. Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

For and on behalf of the Board of Directors

Place : New Delhi Sanjay Gupta

Date: August 3, 2016 Chairman & Managing Director

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Mar 31, 2015

Dear Members,

The Directors have great pleasure in presenting the 50th Annual Report for the financial year ended 31st March, 2015 along with Audited Statement of Accounts, the Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2014-15 in Retrospect

Your Company sustained its good performance during FY 2014-15. The key highlights of the financial performance of the Company for the year, as stated in the audited financial statement, along with the corresponding performance for the year are as under;

Financial Performance

(Figures in Rs. Lakhs)

No. Description 2014-15 2013-14

A (i) INCOME FROM SERVICES RENDERED 171300 182359

A (ii) OTHER INCOME 27311 23209

TOTAL INCOME 198611 205568

B. EXPENDITURE

i) Cost of rendering services 149892 134310

ii) Depreciation 1963 1455

TOTAL 151855 135765

C PROFIT BEFORE TAX (A-B) 46756 69803

D Provision for Current tax 15924 21375

E Provision for Deferred Tax (90) 550

F Prior Period Tax Adjustments, 124 (98) Short/(Excess)

G PROFIT AFTER TAX (C-D-E-F) 30798 47976

H Dividend 16847 21900

I Tax on Dividend 3302 3654

J CSR Activity Reserve (20) 609

K Retained Profits 10669 21813

L RESERVES & SURPLUS 239943 229329

M NET WORTH 256790 246176

Segment wise Performance

(Figures in Rs. Lakhs)

Consultancy & Engineering Projects Year ended Year ended

31.03.2015 31.03.2014

Segment Revenue

Consultancy & Engineering Projects 94797 110907

Turnkey Projects 76503 71452

Total 171300 182359

Segment Profit From Operations

Consultancy & Engineering Projects 22791 49196

Turnkey Projects 5602 4033

Total (A) 28393 53229

Prior period adjustment 818 277

Interest 23 6

Other un-allocable expenditure 8107 6352

Total (B) 8948 6635

Other Income (C) 27311 23209

Profit Before Tax (A-B C) 46756 69803

Capital Employed (*) 256790 246176

(*) Fixed Assets used in the Company's Business or Liabilities Contracted have not been identified to any of the reportable segments as the fixed assets and support services are used interchangeably between segments. Accordingly, no disclosure relating to segment wise assets and liabilities has been made.

Dividend

The Board of Directors of the Company has recommended a final dividend of Rs.2/- per share (of face value of Rs.5/- per share) for the financial year 2014-15, in addition to Rs.3/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2014-15 works out to Rs.5/- per share amounting to Rs.16846.83 lacs excluding dividend distribution tax. The payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company which shall be paid to the Members whose names appear in the Register of Members as well as beneficial ownership position provided by NSDL/ CDSL as on 18th August, 2015.

Investor Relations

EIL is constantly striving to improve its relations with all stakeholders and build a long term, healthy relationship based on trust and transparency. The Company treats all stakeholders at par and maintains disclosure and transparency in sharing information on financial performance, business outlook and strategic developments. Your Company is equally committed to strict compliance to disclosure and government norms as per applicable rules and guidelines and maintains an impartial treatment with all its stakeholders. Your Company aims to achieve this by fulfilling its responsibilities to shareholders through fair disclosure of information and bilateral communication.

EIL is committed to sharing information with shareholders, investors, financial analysts, press and other stakeholders. The Management and Investor Relations (IR) Cell regularly engage in communication with Investors and Analysts through One-on-One meetings, conference calls, conference participation and road shows, if required, as well as actively organizing and participating in investor events, such as Annual General Meetings, Press Conferences and Analyst Conferences. The IR team utilizes various communication channels and materials including presentations, press releases, financial fact sheets, business outlook and strategic developments for disseminating pertinent and timely information.

Management Discussion & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Consultancy Assignments (Domestic)

Offshore Oil and Gas

During the year, EIL continued to make considerable progress in Offshore Oil & Gas and LNG sectors in India and overseas.

The following consultancy assignments were successfully completed in Offshore Oil & Gas during the year:

* Project Management Consultancy (PMC) services for Well-head, Process -cum -Living Quarters Platform and Submarine Pipelines of Deen Dayal Field Development Project of Gujarat State Petroleum Corporation Limited (GSPC) at Mallavaram, Andhra Pradesh.

* Re-qualification and Re-certification of 50 offshore jackets for ONGC.

* Front End Engineering Design (FEED) for Marine Works, Storage Tanks and Re-gasification Terminal for Pertonet LNG Limited's 5 MMTPA Gangavaram LNG Terminal.

During the year, EIL secured the following orders against stiff competition and implementation has taken off in right earnest:

* Remedial measures for ONGC's 42" SBHT Pipeline at Umharat sea beach.

* FEED for Marine Works, Storage Tanks and Re-gasification Terminal for LNG Terminal at Chhara of HPCL Shapoorji Energy Limited (joint venture project of HPCL and Shapoorji Energy Limited).

Additionally, the following Offshore Oil & Gas projects are currently under execution:

* Pre-award activities for ONGC's Water Injection South (WIS) platform.

* PMC for Dahej Expansion Ph-III A Project of Petronet LNG Limited.

* Revamping of Unmanned platforms (50 nos.) Phase-II of ONGC.

* Consultancy services for post award activities for ONGC's BPA- BPB revamp project.

Onshore Oil & Gas

EIL is providing PMC services for Cairn's Associated Facilities Project at Mangala Processing Terminal (MPT) comprising Storage Tanks and Export System, Power Generation & Distribution system and integrated balance works.

Pipelines

EIL has a significant track record in design and execution of cross- country pipelines for transportation of crude oil, refined petroleum products, natural gas and LPG. The following assignments have been successfully completed during the year:

* Detailed Feasibility Report (DFR) for 1400 km Dhamra-Numaligarh Crude Oil Pipeline for Numaligarh Refinery Limited (NRL).

* DFR for 672 km Capacity Augmentation of Vijaipur-Auriya- Phulpur Gas Pipeline for GAIL (India) Limited.

* DFR for 1850 km Phulpur-Haldia Gas Pipeline including spurlines for GAIL.

* Supply of gas through spurlines to Hubbali/ Dharwar twin cities for GAIL.

* 10" x 26 km LPG Onshore/Offshore Pipeline from Mumbai Refineries of Bharat Petroleum Corporation Limited (BPCL)/ Hindustan Petroleum Corporation Limited (HPCL) to Uran for bpcl.

* 24" HDD Ganga River crossing for GAIL.

The following major pipeline projects are in progress:

* 12"/ 8" x 450 km Kochi-Coimbatore -Erode-Salem LPG Pipeline for BPCL.

* 18" x 45 km Re-routing of Mumbai-Manmad Pipeline for BPCL.

* 24"/ 18"/ 8"/ 4" x 243 km Replacement of KG Basin Pipeline.

* 36" x 860 km Mehsana-Bathinda Pipeline along with 24"/ 18"/ 16"/ 8" x 726 km spurlines for GSPL India Gasnet Limited (GIGL).

* 36"/30"/24" x 1428 km Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline along with 30"/ 24"/ 18" x 477 km spurlines for GSPL India Transco Limited (GITL).

* 12" x 100 km Hazira-Dahej Naphtha Pipeline for ONGC.

* 18"/ 16" x 275 km Natural Gas Pipeline from Vijaipur to Kota and Spurline to Chittorgarh for GAIL.

* 36" HDD Satluj river crossing and 18" HDD Yamuna river crossing for GAIL.

* 8" HDD Narmada river crossing for ONGC.

* 16" HDD Saloni river crossing for GAIL.

* Upgradation of pumping stations for Naharkatiya-Barauni Crude Oil Pipeline of Oil India Limited (OIL).

Petroleum Refining

During the year, the Company achieved significant progress on the following major petroleum refinery projects:

* The Integrated Refinery Expansion Project of BPCL Kochi Refinery aims to increase refining capacity from the current 9.5 MMTPA to 15.5 MMTPA and comprises process units viz., CDU/VDU, DHDT, VGO-HDT, Petro FCC, DCU, associated utilities including CPP, Offsite facilities and revamping of existing Naphtha Hydro- Desulphurization and Semi-Regenerative Reformer units. Engineering activities for the project have been completed while the construction activities are progressing in full swing.

* EIL is providing EPCM services for the CDU-4 project of BPCL Mumbai Refinery. Designed for a capacity of 6 MMTPA, the new grass root facilities will replace the ageing CDU-1 and CDU-2 Units. The project is in advanced stage of implementation and the pre-commissioning activities have commenced.

* PMC services for the installation of a new Diesel Hydrotreater unit (2.4 MMTPA) and Associated Facilities at BPCL Mumbai Refinery commenced during the year. Procurement of critical Long Lead Items (LLIs) has been initiated.

* EPCM services for conversion of CRU to ISOM and revamp of NHDS to NHT at BPCL Mumbai Refinery commenced during the year to maximize Isomerate yield and Octane Number and produce special products like Food Grade Hexane. Detailed engineering and procurement of LLIs are under progress.

* A Tail Gas Treating Unit using indigenous technology developed by EIL R&D is being installed in the existing Sulphur Recovery Unit of HPCL Vizag Refinery to achieve an overall sulphur recovery of 99.9%. Detailed engineering and all procurement activities for the project have been completed.

* The CCU Reactor Replacement Project at BPCL Mumbai Refinery was successfully commissioned during the year.

* Basic design services for Low Cost Debottlenecking of BORL, Bina have commenced. This will augment the refinery capacity from 6 MMTPA to 7.5 MMTPA. Finalization of Licensors is under progress.

* PMC services for implementation of 366 MW Captive Power Plant of lOCL's 15 MMTPA Paradip Refinery Project. Commissioning activities are progressing in full swing.

* Under Phase-Ill Refinery Expansion Project, the capacity of Mangalore Refinery of MRPL has been increased to 15 MMTPA by adding a new CDU/VDU of 3 MMTPA and associated facilities. The Project has been implemented on hybrid mode of PMC- LSTK, OBE and EPCM. All process units and associated utilities have been completed.

* Wax Project of Numaligarh Refinery Limited was successfully commissioned during the year achieving the design product quality. The project was based on inhouse Dewaxing/Deoiling technology developed jointly by EIL & IIP.

* Procurement and construction activities are in progress for EPCM Services of New Coke Chamber and Allied Modernization Facilities of IOCL, Barauni.

* Process, detailed engineering and procurement activities are in progress for the EPCM Services contract for INDAdeptG Unit of IOCL, Guwahati. Piling work is completed and Civil & structural works are in progress.

* Pre-award activities are in progress for PMC services for Distillate Yield Improvement Project at IOCL Haldia Refinery. The Project shall be executed in hybrid mode.

* Major engineering has been completed for the Engineering Services for Augmentation of Purge Treatment Unit in IOCL Haldia Refinery.

* Major engineering has been completed for Engineering Services for Revamp of INDMAX Unit of IOCL Guwahati Refinery.

Petrochemicals

Significant progress has been made on the following petrochemical projects;

* Dahej Petrochemical Complex of ONGC Petro additions Limited (OPaL) is being executed on PMC mode. The Project consists of 1100 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE/ HDPE Swing Unit, PP units, Captive Power Plant and associated Utilities and Offsites. The Dual Feed Cracker, HDPE, PP and Butene units have been mechanically completed and LLDPE/HDPE Swing Unit is in advanced stage of completion. A number of utilities have been commissioned.

* Assam Gas Cracker Project, a grass-root petrochemical project of Brahmaputra Cracker and Polymer Limited, is being executed by EIL on EPCM mode. The project comprises Gas Sweetening Unit, C2 Separation Unit, Gas Dehydration Unit, Ethylene Cracker, LLDPE/ HDPE, PP and supporting Utilities, Offsites and Pipelines. Mechanical Completion has been achieved for the complex and pre-commissioning/commissioning activities are in progress. The availability of petrochemicals from the project will boost the development of plastic industry in the North-Eastern region of the country.

* Petrochemical Complex-II Project at Vijaipur, Madhya Pradesh and Pata, Uttar Pradesh of GAIL is being executed on EPCM route. The Petrochemical complex consisting of Gas Sweetening and Gas Processing units with associated Captive Power Plant and Utilities and Offsite at Vijaipur and Gas Cracker complex, GPU-II, LLDPE/HDPE (Swing unit) and Butene-1 Units at Pata have been successfully commissioned. The Plant is under stabilization.

* Engineering activities have commenced for Integrated Methanol and Acetic Acid Plant of Assam Petrochemical Limited at Namprup, Assam.

* Work on the Propylene Derivative Petrochemical Plant of BPCL Kochi Refinery comprising Acrylic Acid Unit, Oxo-Alcohol Unit and Acrylates Unit has commenced.

Strategic Storages

Dominance of fossil fuel in the energy basket of India is poised to continue. Therefore, the need for energy security has been a key imperative for Government of India. Recognizing the country's dependence on imported oil and gas resources, Government of India (GoI) is implementing the Strategic Crude Oil Storage Programme in two phases.

Under Phase-I of the Strategic Storage programme, EIL is providing PMC services to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction of underground unlined rock cavern storages in Vishakhapatnam, Mangalore and Padur having a total capacity of 5.33 MMT. During the year, significant progress has been achieved and the Vishakhapatnam storage is receiving crude oil. Pre-commissioning activities are underway at Mangalore and Padur.

The feasibility studies for the Phase-II Strategic Storage programme have been undertaken by EIL and the DPRs have been submitted to ISPRL for a capacity of 12.5 MMT planned at four selected locations.

Metallurgy

The following key metallurgy projects/assignments were completed during the year;

* Cost Updation for Aditya and Mahan Aluminium Smelter Projects of Hindalco Industries Limited (HIL).

* Electrical Safety Audit for Hirakud Smelter of HIL.

* Installation of Fixed Long Distance Conveyor facility and Semi Mobile Crushing Plant of Nalco Mines at Damanjodi.

* Scoping Study for Mechanised Production and Evacuation of Iron Ore from Kurmitar Project of Odisha Mining Corporation Limited (OMC). Based on the study report, OMC has awarded the preparation of detailed feasibility report to EIL which is under progress.

The following Projects/Assignments are under progress:

* Appointment of Mine Developer-cum-Operator for Kapurdi and Jalipa Mines of Barmer Lignite Mining Company Limited in Rajasthan.

* Feasibility Study for revamping of Rectifier Station-I for Hirakud Smelter of HIL.

Infrastructure

In the Infrastructure sector, EIL is providing a wide spectrum of services such as Project Management, Third Party Inspection (TPI), Quality Assurance, Independent Engineer & Lender's Engineer services, Project Appraisal and project execution services.

The following infrastructure projects were completed during the year:

* Data Centre Complexes for Unique Identification Authority of India (UIDAI) at Manesar and Bengaluru.

* Preparation of Major Development Plan for construction of South-East Pier of Terminal Building, Tunnel Road under Runway and New Parallel Taxiway with associated facilities for Chhatrapati Shivaji International Airport in Mumbai.

* Construction of Housing Blocks of Rajiv Gandhi Institute of Petroleum Technology (RGIPT), Jais, U.P.

* EIL's Green office complexes at Gurgaon and Chennai.

The following major projects were secured by the Company in the Infrastructure sector during the year:

* PMC services for Head Quarters Building of UIDAI in Delhi.

* PMC services for Inland Container Depot for Container Corporation of India Limited.

* PMC services for Air-conditioning and Lab Equipment of Chemical Laboratory Building of Delhi University.

* Extension of TPI services for Infrastructure Projects of Pune Municipal Corporation.

* TPI services for Warehouses of Maharashtra State Warehousing Corporation.

Fertilizers

Pursuant to declaration of New Investment Policy in January, 2013 by the Government of India and its amendment in September, 2014, the Fertilizer sector in India is expected to grow in the near future. EIL is leveraging its capabilities and global network to tap significant business opportunities presented by this sector in India and Overseas. The Company has achieved considerable success in this sector.

During the year, EIL executed the Detailed Engineering assignment for M/s Indogulf Fertilizer for the revamp of Ammonia and Urea plant at Jagdishpur. Construction assistance was also provided for successful execution of revamp schemes.

As part of strategic investments in the Fertilizer sector, EIL has taken equity participation in Revival of Ramagundam Fertilizer Project along with National Fertilizer Limited and Fertilizer Corporation of India Limited. A joint venture company (M/s Ramagundam Fertilizers and Chemicals Limited) has been formed to pilot this project. Letter of Award to EIL for carrying out the execution of this project on EPCM mode has been issued.

Capitalizing on the availability of cheap feedstock at strategic overseas locations for new fertilizer projects, EIL has also bagged major projects abroad against stiff international competition.

Water and Waste Management

The following major projects/assignments were secured by the Company during the year:

* Engineering Consultancy Services for 5 MLD seawater desalination plant at Odisha Sand Complex, Ganjam, Odisha for Bhaba Atomic Research Centre (BARC).

* Preparation of DPR for abatement of Pollution in Buddha Nala in Ludhiana for Punjab Water Supply & Sewerage Board.

The Interceptor Sewer Project of Delhi Jal Board (DJB) for abatement of pollution in River Yamuna witnessed significant progress during the year. Package-1 is ready and Packages-2 to 6 are partially ready.

Power

The Power sector continued to be a key focus area for EIL with the Company executing projects in Nuclear, Solar & Thermal Power sectors.

Nuclear

* In the Nuclear power sector, EIL is carrying out major engineering works for the greenfield Nuclear Fuel Complex at Kota, Rajasthan for Nuclear Fuel Complex. During the year, engineering and procurement activities progressed, while site activities were initiated with the award of site grading tender.

* The assignment from Nuclear Recycle Board, Bhabha Atomic Research Centre for carrying out seismic evaluation for two clusters of buildings at Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam and re-qualifying them for safe operation has been completed. In this project, EIL implemented a number of state-of-the-art technologies pertaining to seismic qualification for the first time which includes seismic assessment of structures based on pushover analysis and probabilistic assessment of the structures using fragility curves.

Thermal

* EIL is implementing a Captive Cogeneration Power Plant for the first time on EPCM mode for BPCL Kochi. The project entails setting up of facilities for generation of 103.5 MW of power and 830 TPH of steam. During the year, the Company completed all ordering and major progress was achieved in supply and erection.

* BORL had appointed EIL as PMC for 160 TPH Utility Boiler Package. Boiler light up was achieved in a record time of 17 months and steam exported to process units.

* EIL has taken up the feasibility study for utilization of 2640 TPD Petcoke for generation of refinery steam and power for IOCL Panipat.

* Adani Enterprise Limited has entrusted EIL with a comparative study of coal to polygen and coal to power for 29 MMTPA of coal at Chhattisgarh which is under progress.

Solar/Renewables

* EIL provided EPCM services for the 1x125 MW Solar Thermal Power project of Reliance Infrastructure Limited which was synchronized and commissioned during the year.

* EIL prepared Feasibility Report for setting up a Special Purpose Vehicle for implementation of large scale grid connected renewable energy projects in India for Ministry of Petroleum and Natural Gas (MoPNG).

* Detailed Feasibility Study for installation of Solar PV systems at GAIL's petrochemical complex in Pata, U.P. is in progress.

Overseas Assignments

EIL has a significant global footprint, particularly in the Middle East and Africa, where it is executing a host of hydrocarbon and petrochemical projects for global energy majors.

During the year, the following overseas projects were completed by the Company:

* PMC services for Rehabilitation and Adaptation project of Skikda Refinery of SONATRACH, Algeria. The plant is currently under operation at full capacity of 16.5 MMTPA.

* PMC Services for EPC Phase of Habshan Acid Gas Flare Recovery project of GASCO, Abu Dhabi.

* Study for Crude Unit Tower Debottlenecking at Abu Dhabi Refinery of Takreer.

* FEED Development for installation of Flow Orifice in Raw Ethane Line to Fuel Gas System & Treater in Train 3 for GASCO, Abu Dhabi.

* Engineering Consultancy for ZAP Replacement of Corroded piping network for ADMA OPCO, Abu Dhabi.

* PMC Services for Das Temporary Accommodation EPC project of ADGAS at Das Island, Abu Dhabi.

EIL achieved substantial progress in the following projects:

* Detailed Engineering & Procurement services for Slop System Rehabilitation & Drains Upgrade at Umm Shaif Super Complex (USSC) of Abu Dhabi Marine Operating Company (ADMA-OPCO).

* PMC services for EPC of Upgrade & Replacement of Substations project Phase-1 of ADGAS.

* PMC services for Pipeline projects of GASCO, Abu Dhabi.

* Licensor selection & FEED for Liwa Plastics Project (Integrated Petrochemical Complex) of Oman Refineries and Petroleum Industries Company (Orpic) at Sohar, Oman have been completed during the year and the project is now nearing the tendering stage.

* EPC tenders have been issued and procurement for long lead items has been initiated for RFCC revamp and various unit improvements work at Sohar Refinery, Oman.

* FEED has been prepared for Petcoke Storage & Handling Facility at Sohar Port, near Sohar Refinery and EPC tender has been floated by client.

* FEED Package preparation is under progress for Greenfield Project of Brass Fertilizer Company Limited (BFCL)'s Greenfield Project consisting of Ammonia (2200 MTPD), Urea (3850 MTPD) and Methanol (5000 MTPD) units along with associated Utilities and Offsites including dispatch facility and Jetty at Brass Island in Nigeria.

* Preparation of Pre-Feasibility Study Report is under progress for Engineering Consultancy services for setting up an Ammonia and Urea Fertilizer complex in extreme weather conditions in Sakha Province of Russia.

* Under PMC services for Rehabilitation and Adaptation of Algiers Refinery of SONATRACH, substantial progress has been achieved on construction front.

* Advance FEED studies for Kuzey-Marmara Fixed Offshore platform and Pipelines of Turkish Petroleum Corporation, Turkey.

Major assignments secured in the overseas market include;

* Dangote Refinery and Petrochemical Project comprising a 460,000 BPSD grassroot Petroleum Refinery & 690 KTPA Petrochemical Complex at Lekki Free Trade Zone, Nigeria for Dangote Oil Refining Company. The major process units in Refinery include Crude Distillation Unit (CDU), a Residue Fluid Catalytic Cracking unit, MS Block, a Mild Hydrocracker unit, Alkylation and Sulphuric Acid Regeneration Unit, Product Treatment units, Polypropylene Unit, Sulphur block and associated Utilities generation & Offsite facilities. The Project facilities include Crude oil receipt & storage including two SPMs with associated offshore/onshore pipelines. The product dispatch facilities include product disposal through road as well as ships. Dispatch of products comprise pumping facility, onshore & offshore pipeline as well as three SPMs. EIL is providing Basic Design, Engineering and Project Management services for this prestigious project.

* PMC for Liwa Plastics Project of Orpic, Oman.

* PMC for RFCC unit revamp and other improvement works at Sohar Refinery for Orpic, Oman.

* PMC for Preparation of FEED & award of EPC Contract for Petcoke Storage & Handling facility at Sohar Port for Orpic, Oman.

* PMC Services for Ammonia, Urea & Methanol Project for Brass Fertilizer, Nigeria.

Turnkey Projects

EIL is executing a number of turnkey projects either on LSTK mode or on the 'Open Book Estimate (OBE)' basis. Substantial progress was made in the following LSTK/OBE jobs under implementation during the year;

* Detailed Engineering and ordering activities are in advanced stage of completion for Resid Upgradation Project of CPCL, Chennai. All major long lead items have been ordered. Civil/ structural, U/G Piping, Mechanical & A/G Piping works are in progress.

* PFCC Unit, Sulphur Recovery unit and Polypropylene units of Mangalore Refinery Expansion Phase-III project of MRPL have been successfully commissioned.

* South Jetty Pipeline project for loading/unloading of petroleum products and crude oil for IOCL Paradip Refinery, being executed on OBE mode, has progressed well during the year.

* GSPC, as a part of Deen Dayal Field Development Project, has implemented an Onshore Gas Terminal (OGT) facility at Mallavaram in Andhra Pradesh. The project has been executed by EIL on OBE mode and consists of two trains of 100 MMSCFD each. Mechanical Completion of the plant was achieved during the year.

During the year, EIL was successful in securing the job for executing Hazira Modification Job under Daman Development Project on OBE basis from ONGC.

Performance of Divisions Process Design & Development

The Process Design & Development Division of EIL continued its efforts to secure business from new clients besides serving various existing clients, both in India and in overseas. Prominent assignments undertaken by the Division during the year include the following:

* Detailed Feasibility Report (DFR) for a state-of-the-art Refinery cum Petrochemical Complex for HPCL for processing Rajasthan crude located at Barmer. The refinery capacity is 9MMTPA with maximization of Petrochemicals like Polypropylene and Polyethylene.

* Configuration Study and DFR for HPCL's Mumbai Refinery for expansion of crude processing capacity from 7.5MMPTA to 9.5 MMPTA.

* Configuration Study and Capacity Expansion study for BPCL's Mahul Refinery for enhancing crude processing from 12 MMTPA to 14MMTPA.

* Wax Production facilities of the Numaligarh Refinery have been successfully commissioned.

* Residual and Detailed Engineering of a grassroot Crude Distillation Unit (CDU-4) at BPCL's Mumbai Refinery for 6 MMPTA crude processing capacity.

* Detailed Engineering for the Integrated Refinery Expansion Project of BPCL's Kochi Refinery for enhancing crude processing capacity from 9.5 to 15.5 MMTPA.

* DFR for 6 MMTPA expansion of Numaligarh Refinery based on 100% Sour Crude Processing.

* DFR for Capacity Expansion of lOCL's Gujarat Refinery from a crude processing capacity of 13.7 MMTPA to 18 MMTPA.

* Feasibility Study for Assessment of Land, Power and Water requirement for Coal to Liquids Project to produce 80000 BPD of liquid fuel for IPCOL, Odisha.

* Detailed Feasibility Study for Low Cost Expansion of Bharat Oman's Refinery at Bina for enhancing the existing crude processing capacity from 6 MMTPA to 7.5 MMTPA.

* Detailed Engineering of 2.2 MMTPA DCU unit of CPCL's Chennai Refinery as part of the EPC project activities.

* FEED preparation for Revamp of Unmanned Platform Phase-ll for ONGC is under progress.

* PMC services for BPA/BPB offshore facilities for ONGC.

* Configuration study for setting up a Grassroot Refinery of 200,000 BPSD at Angola for Sonaref.

* Detailed Engineering for INDAdeptG unit of 35KTPA capacity being set up at lOCL's Guwahati Refinery with indigenous technology developed in association with IOCL R&D.

* Feed Augmentation study with Ethane import facilities for GAIL's Petrochemical Complex at Vijaipur and Pata.

* Feasibility study for Utilization of Pet coke via the gasification route for value addition for NFL at Nangal.

* Assessment and utilization of gas for the Western Offshore assets for ONGC to examine the potential for further optimization of gas usage.

* Pre-feasibility Report for Adani Enterprises Limited (AEL) for Coal gasification to polygeneration at their facilities located at Mundra.

* Licensor evaluation for a grassroot Diesel Hydrotreater Unit for BPCL's Mumbai Refinery. Design of new and revamp of associated facilities i.e., SWS, ARU, Utilities and Offsites.

* Vetting of Prefeasibility Report carried out by AEL in Chhattisgarh for Polygeneration.

* DFR for expanding HPCL's Vizag Refinery crude processing capacity to 15 MMTPA with inclusion of suitable bottom upgradation facilities for distillate yield and product quality improvement.

* Study Report for capacity debottlenecking of existing Crude Distillation Unit for Takreer Refinery, Abu Dhabi.

* Basic Engineering Design Package of Visbreaker Revamp with installation of Soaker internals at lOCL's Haldia Refinery in collaboration with llP.

* Advance FEED package for Kuzey-Marmara DP-1 & DP-2 platform offshore facilities for Turkish Petroleum Corporation (TPAO).

* FEED development for WlS Reconstruction Project to install a new water injection platform with a capacity of 3720 m3/hr at Mumbai High south field, ONGC.

* Study report for examining the impact of high H2S content in ONGC's B193 platform.

* Coke Chamber replacement and Modernization of Coker-A of lOCL's Barauni Refinery.

* Reviewed LSTK documents for 2200 TPD Ammonia, 4000 TPD Urea & Methanol complex of lndorama, Nigeria.

* Reviewed early work contractor documents for 5000 TPD Methanol and 3850 TPD Urea complex for Brass Fertilizers, Nigeria.

* Licensor selection for Ammonia, Urea technologies & Detailed Feasibility Report preparation for revival of Ramagundam Fertilizer Project.

* Prefeasibility study for 2200 TPD ammonia & 3850 TPD urea plant in Siberia, Russia for Global Steel.

* Licensor selection & PMC services for a grassroot 890 KTPA Dual Feed Cracker unit & associated polymer facilities of Liwa Plastics Project for Orpic, Oman.

* Basic and detailed design of the associated utility and offsites facilities as well as detailed engineering services for 460,000 BPSD Dangote Refinery and Petrochemicals Complex for Dangote Oil Refinery Company Limited, Lekki, Nigeria.

* RFCC Revamp Project at Sohar Refinery, Orpic: Preparation of Basic Design package for the RFCC Amine Absorber unit, preparation of FEED Package for the RFCC Revamp, CDU Modification, PRU Revamp and LPG Merox revamp.

* PMC services for FEED Packages, Design of Tankages and Mounded Storages for Lobito Refinery Project of Sonangol EP.

* Distillate Yield lmprovement Project (Aishwarya project) of lOCL's Haldia Refinery.

Engineering

During the year, the Engineering Division of ElL continued its efforts towards providing optimized and value added services for all ongoing projects consistent with the client requirements and objectives of the Company. The Division maintained its focus on key areas like System Improvement and improvement of quality of deliverables, Control of Rework related wastage by use of Database, Repeatability of Design, Enhanced Software applications and overall implementation of Electronic data management system and improved information exchange and communication systems resulting in less manual interfaces. Major emphasis was laid on Automation and Standardization of systems, implementation of lnternal Audit and Monitoring, updation of specifications standards and guides. A large number of improved processes, new concepts and technologies were implemented for the first time this year and some of them are as follows:

* Basic design and engineering of Non-Conventional Coke Dispatch scheme for the Aishwarya Project of lOCL to accomplish complete rake loading within limited space.

* Basic engineering and procurement of energy efficient VAV (variable air volume) air conditioning system for lab building in MRPL Phase-lll expansion project and VRF (variable refrigerant flow) air conditioning system for MBBVPL project of GlTL.

* Conceptualization of HVAC system for Catalyst, Chemical and TEAL storage building for Dahej Petrochemical complex (OPaL) and developing detailed HVAC scheme for hazardous areas handling critical chemicals like Peroxide, TEAL etc.

* Detailed engineering of CDSP unit of DCU Project of CPCL, for the first time in EIL.

* Engineering for procurement of Hot Gas Power Recovery Expander Generator of about 2 x 23 MWe rating, handling hot flue gases at around 760 °C for FCC Unit of Dangote Refinery & Petrochemical Project in Nigeria, thereby recovering the energy of hot gases.

* Engineering for procurement of 4 x 40 MWe Steam Turbine Generator Packages (VHP steam inlet, dual controlled extraction & condensing type) for DRPP Project, DORC-Nigeria.

* Engineering for procurement of 66KV, 2500A, 40KA (1 sec.), 66KV,Double Bus, Indoor Gas Insulated Switchboard (GIS) having approx. 40 panels for Dangote Refinery & Petrochemical Project, Nigeria.

* Procurement Engineering for Nitrogen Injection Fire Protection System (NIFPS) against conventional water sprinkler system for 2 nos 20/25MVA, 22/6.9KV Power Transformers for CDU-4 project of BPCL- Mumbai.

* In situ type Panel mounted IR based SOx/NOx/CO analysers for Continuous Emission Monitoring of Stack with remote monitoring and calibration facility from Pollution Control Board thereby replacing Analyser Shelters resulting in reduction in both Capex and Opex.

* Provision of Ultrasonic Liquid Flow Metering skid for custody transfer with centralised calibration and meter proving facility.

* IR based Platform Intruder Detection System, Ultrasonic Base Bird Repellent system and Seismic Detection Switch for remote offshore installations.

Heat and Mass Transfer

The Heat and Mass Transfer Division (HMTD) provided thermal/ hydraulic & mechanical designs and PMC services for Fired Heaters, Cast/Glass Air Preheaters (CAPH/GAPH), Mass Transfer Systems (column trays/packing etc.), Heat Exchangers & Air Coolers (Thermal Design only), Waste Heat Recovery Equipments, Ejectors & Ejector System (including Hybrid type) and Utility Boiler system for various projects including BPCL-IREP, BPCL NHT-ISOM, BPCL-DHT, Aishwarya Project of IOCL - Haldia and Dangote Oil Refinery Co. etc.

The Division undertook many jobs where various innovative/value added specialist services like feasibility studies, troubleshooting were provided. Some of the key projects undertaken by the division are summarized below:

* Heat exchanger thermal design services to UOP, the Process Licensor for Dangote Refinery.

* Preheat network study for the "Configuration study and DFR for CDU/VDU expansion" (7.5 to 9.5 MMTPA) for HPCL Mumbai Refinery. A preheat network was conceived for the revamp case to attain the maximum possible preheat temperature.

* Specialist services to IOCL Haldia for carrying out detailed study and analysis for the frequent tube failures in Waste Heat Boiler, SRU-IV which occurred after commissioning.

* Adequacy study and modification/engineering for IOCL- Barauni Coker Heater wherein two heater operations have been successfully converted to only single heater operation after the revamp. It was a challenging revamp job due to limited space for additional heat transfer area.

* Consulting services to Takreer, Abu Dhabi for study of the existing preheat network of CDU and providing recommendations for performance improvement in order to meet the changes implemented in diesel specification.

Project Services - Costing

The Costing Division provides services such as preparation of capital cost estimates and financial/economic analysis in diverse activities ranging from technology selection to preparation of feasibility reports and option study estimates for investment decisions. It provides assistance during price negotiation, cost monitoring and control during execution of projects under conventional and LSTK mode of execution. It also prepares cost estimates for bidding as EPC contractor. The vast database and capabilities help in providing valuable support for bid evaluation and award of major contracts as well as in providing effective cost control services.

Project Services - Planning

The Planning Division continued to provide planning, scheduling, monitoring, project risk management and material control services to various projects. Using state-of-the-art tools and its database, the Division caters to diverse project execution roles of the Company, viz. EPCM, PMC, LSTK/OBE modes. The Division continued to provide project monitoring services to the Ministry of Petroleum and Natural Gas.

Procurement Services

The Procurement Services Division of EIL through the Contracts & Purchase Department and Inspection Department has been delivering the supplies, services and works of specified quality within the specified time at the most competitive prices in a fair, equitable & transparent manner. The Division offers its services for the projects executed by EIL for various clients globally as a consultant and a contractor as well as for various in-house requirements. This division offers complete Supply Chain Management services right from registration of suppliers/contractors globally, placement of orders, inspection, expediting and logistics services for deliveries up to construction sites.

The Procurement Services Division leverages its varied experience, established systems & procedures, standards, vast knowledge pool and extensive database to aid the Company in successful project execution.

In order to deliver procurement in an effective and efficient manner on fast track, e-procurement has been implemented with the help of outsourced technologies as well as in-house developed software solutions, enabling greater transparency in the procurement process. EIL has a laid down policy of implementation of 100% e-procurement across all projects through a long term tie-up with National Informatics Centre (NIC).

In the current year, orders for Rs.390 crore of direct purchases and contracts were placed on suppliers/contractors globally for various OBE/LSTK/Depository projects. In addition, orders for Rs.3388 crore were placed for various other clients' projects.

In line with the government's promotion initiatives for enhancement of indigenous vendors' involvement in Government Procurement, EIL has implemented the prevalent guidelines including Public Procurement Policy (PPP)-2012 for Micro and Small Enterprises. During the current year, EIL procured Rs.65.93 crore worth of goods and services from micro and small enterprises which is around 21% of the total value of direct purchase orders for goods, placed by EIL (and around 19% of the total value of Purchase orders for goods and contracts for services).

Towards the promotion of Micro and Small Enterprises (MSEs), EIL associated with MSME-Development Institute, Okhla, New Delhi, Ministry of MSME, Govt. of India in organizing a two-day National Level Vendor Development Program cum Industrial Exhibition at the office premises of MSME-DI, Okhla, New Delhi, to provide a platform to display and demonstrate the products, technologies, capabilities, requirements and services of various MSEs. Procurement Division has also been instrumental in registration of MSE suppliers to enhance procurement as per MSME policy.

Procurement Division carried out in process and pre-dispatch inspection of critical equipment at suppliers' works as well as Project sites through its Regional Procurement Offices located all over the country and overseas offices located in London, Shanghai and Milan. Major items inspected included "Vaccum column for BPCL IREP project (63mtr x 12 mtr, 850 MT), among many other large sized equipment. It was for the first time ever that new inspection techniques like TOFD (Time of Flight Defraction) and PAUT (Phased Array Ultrasonic Testing) were introduced for inspection of fabricated equipment. Multimodal transportation scheme for equipment of BPCL IREP project was used from Kochi port to site by utilizing waterways and making a new jetty close to Refinery.

The Division has also been making steadfast efforts towards widening its database of capable suppliers. Suppliers and Contractors located worldwide apply through online system available at EIL website. With an objective to make the system more transparent, effective and paperless, the process of enlistment of contractors, starting from online application to final approval, has also been made online.

To give a boost to "Make in India" program launched by Hon'ble Prime Minister of India, Procurement Division is also putting in efforts to qualify vendors for items which are generally imported and organizing vendor meets in different regions, to ensure the same.

Construction

The Construction Division offers services for total Construction Management including Contract administration, Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse Management for various projects of EIL.

During the year, Construction Division continued to provide Construction Management Services for various clients at 31 diverse domestic project locations and 5 overseas locations.

The on-going prestigious commitments for the Division include IREP at Kochi & CDU-4 project at Mumbai for BPCL, OPaL Petrochemical at Dahej, DCU for CPCL at Chennai, SJPL Paradeep and U.P. Petrochemical Project-II of GAIL at Pata.

Construction activities commenced for the following new domestic projects during the year;

* Nuclear Fuel Complex, Kota

* KG Basin/VSPL Pipeline project, Rajamundry

* Dahej Expansion-IIIA Project , Dahej

* HDD works at Yamuna, Satluj and Solani

* DCU Revamp project and RO Plant project of IOCL, Barauni

* lndadeptG at Guwahati Refinery of IOCL

* EOR Barmer of Cairn India Limited

* NHT/ISOM Project of BPCL, Mumbai

* Fire water revamp project at COT, Vadinar

The highly skilled & motivated EIL construction team has been instrumental in establishing & monitoring adherence of construction Quality Management system comprising Quality plans, Inspection test plans, implementing special processes for concreting, welding involving latest NDT techniques, digital radiography, ultrasonic test etc. during all the phases of construction to ensure trouble free commissioning/operation of critical units.

The Construction activities for the following Projects/Units were completed during the year;

* Asia's largest Gas Processing Unit (21.12 MMSCMD) in a single stream for GAIL's Petrochemical Complex-II, Vijaipur.

* LPG pipeline from BPCL Mahul to Uran.

* Extruder, GCU, and N2 plant at GAIL Petrochemical Complex-II, Pata.

* STG, ACC & Boiler at Mangala Processing Terminal.

* Butene -1 plant at IOCL PNCP Panipat.

* PFCCU & SRU at MRPL Phase-III.

* Wax hydro Finishing Unit at NRL.

* Mechanical Completion of MRPL Phase-III, Pneumatic Conveying system pertinent to PPU at MRPL and Cavern Acceptance Test at SCOS, Padur.

The Construction Division is constantly striving to adopt and adapt newer techniques and processes with an aim to shorten delivery timelines. The Division is using the following innovative construction techniques and improvised equipment/machineries to minimize construction schedule across project sites:

* Alufo Shuttering, Pre-Engineered Buildings, Spool Marking and Tracking Machine, Water jet cutting machine etc.

* Pre-Assembled heavy equipment slab reinforcement cage assembly.

* Constructability study and erection feasibility study for ease of execution for projects.

EIL attaches highest importance to Health, Safety and Environment in execution of all its projects and achieved following accolades during the financial year:

* 50 Million LTA free man-hours at Petrochemical Complex-II of GAIL, Pata

* 15 Million LTA free man-hours at IREP project of BPCL

* 14 Million LTA free man-hours at Strategic Storage of ISPRL Mangalore

* 5 Million LTA free man-hours at PP Unit of MRPL, Mangalore

* 5 Million LTA free man-hours at Wax Project of Numaligarh Refinery

Plant Operation and Safety

The Plant Operation and Safety Division (POSD) of EIL continued to provide services in the following areas during the year:

* Process design for Offsite Facilities of Refinery, Petrochemicals, Gas Processing Units, Oil Terminals, Onshore Terminals, Topsides of Strategic Storages (underground caverns), Cross Country Pipelines, LNG Terminals, etc.

* Safety related studies like Hazard and Operability Study (HAZOP), Hazard Identification (HAZID), Risk Analysis & Quantitative Risk Analysis (QRA), Safety Integrity Level (SIL), Safety Audits, Safety Reviews and Emergency Planning.

* Pre-commissioning & commissioning of process plants, Utilities, Offsites in refineries, petrochemical and gas processing areas, terminals of crude oil, product and LNG and pipelines, etc., including total responsibility for LSTK projects and Operating Manuals preparation.

The following major assignments were completed/were in progress during the year:

* Process design for offsite facilities of Dangote Refinery, Nigeria.

* PMC services for Liwa Plastics Project, Orpic, Oman.

* Process package for LNG terminal at Chhara, HPCL Shapoorji Energy Limited.

* Feed Package for Offsite facilities of Aishwarya Project, IOCL Haldia.

* PMC services for GASCO pipelines Yasmina, Arkaan, Fertil, Shuweit-III.

* Advanced FEED services for Kuzey-Marmara fixed offshore platforms and pipelines, TPAO, Turkey.

* PMC services for Kochi-Coimbatore-Salem LPG pipeline of BPCL.

The following major pre-commissioning & commissioning assignments were completed during the year:

* PFCC, SRU Train-II &III and TGTU of MRPL Ph-III project.

* DDW1 & PLQP Gas Terminal and Onshore Gas Terminal of Gujarat State Petroleum Corporation, Kakinada.

* GAIL Petrochemical -II Complex at Vijaipur.

* Solvent De Oiling Unit & Wax Hydro finishing Unit at NRL, Assam.

* Habshan Acid Gas Flare Recovery Project, GASCO, Abu Dhabi.

* 52" Gas Twin lines from Habshan to Maqta pipeline, HMT Project GASCO, Abu Dhabi.

The following pre-commissioning/commissioning activities were under progress during the year:

* Assam Gas Cracker Project of BCPL, Lepetkata.

* Strategic Crude Oil Storage project of ISPRL, Vizag.

* Dahej Petrochemical Complex, OPaL.

* GAIL Petrochemical -II Complex at Pata.

* CDU-4, SWS & LPGTU of BPCL, Mumbai.

* Yas-mina Gas Pipeline Project GASCO Abu Dhabi.

The Division has also been successful with its continued efforts in securing new business in both domestic and overseas markets. During the year, the Division undertook following major studies:

* Quantitative Risk Analysis (QRA) for the Refinery Complex and Facilities of MRPL.

* QRA for HPCL, Vizag Refinery.

* QRA for BPCL, Kochi Refinery.

* RRA study for Vadinar-Bina pipeline and COT facilities at Vadinar of BORL.

* HAZOP & SIL Study of DCU CPCL, Chennai.

* HAZOP & SIL Study for Advanced FEED services for Kuzey- Marmara fixed offshore platforms and pipelines, TPAO, Turkey

* HAZOP Revalidation Study for Fuel Depot, KAFCO

* SIL Study for KCPL LPG Pipeline, BPCL.

New business initiatives like O&M services to industry are in progress and the Division undertook following assignments:

* Upkeep and Maintenance of DFCU & AU plant of OPaL, Dahej.

* LPG Plant Preservation for GAIL, Usar Plant.

Environmental Engineering

EIL's efforts in preserving long-term health and safety of people as well as natural resources have always been an integral part of its policy. Over the years, EIL's Environment Division has adopted innovative integrated water management for industries & municipalities and has executed several hundred projects in diversified fields of environment including water & wastewater treatment; effluent recycle and zero discharge projects; Environmental Impact Assessment studies; environmental audits; air quality assessment, modeling & control; ground water monitoring studies; solid & hazardous waste management; oily sludge management; volatile organic carbon (VOC) & fugitive emissions control; site assessment and remediation; environmental health & risk management; environmental management plans; etc.

The major achievements of the Division during the year include the following:

* Foray into advance aquifer water treatment (membrane nano- filtration based processes for sulphate ions removal) and production of water treatment & polishing filtration systems (to achieve very low levels of oil and suspended solids in reinjection water for enhanced oil recovery) for Cairn's Mangala Processing Terminal.

* Successful execution of a consultancy services job for Kuwait National Petroleum Company (KNPC) for selection of technically most viable process for installation of new oily sludge handling facilities at their MAA (Mina-Al-Ahmadi) Refinery, Kuwait.

* Execution of membrane (ultra-filtration) based raw water treatment plant for OPaL's Dahej Petrochemical Complex.

* Re-accreditation by Quality Council of India (QCI) for carrying out EIA studies in India in eleven sectors. The Company has QCI- NABET accredited in-house EIA Coordinators and Functional Area Experts.

* Environment clearances were obtained from Ministry of Environment, Forest & Climate Change (MoEFCC) for BORL's Bina Refinery Expansion, IOCL's Dimer Project at Mathura Refinery, BPCL's ISOM project at Mumbai Refinery and Indian Navy's Project Sea Bird at Karwar.

* As part of MoU with MoP&NG, EIL is continuing its efforts towards Sustainable Development Initiative. Biodiversity Improvement Project (Phase-III) including Development of Nursery for flowering plants in the EIL's Gurgaon Complex has been completed.

Research & Development

In order to continuously better the quality of its services to the clients by providing value addition and leveraging technological advances, it has always been EIL's endeavour to foster the spirit of innovation and creativity in the organization. Research and Development Division has played a significant role to achieve this objective by contributing in the consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related services. R&D Division is pursuing developmental activities, both in house and in collaboration with academic institutes, other R&D organizations like IOCL-R&D, IIP, BPCL (R&D), and cooperating with small companies to promote the creative ideas generated by them.

During the year, R&D Division has undertaken the following initiatives for development of new capabilities and up-gradation & commercialization of existing capabilities:

Technology Development projects

The following technology development projects were initiated and completed during the year:

* Development of Process for Treatment of Naphtha Stream to eliminate Mercaptan by CFC Process.

* Regeneration of Glycol by Extractive Distillation - Eliminating need of Stripping Gases.

* Solvent development for C02 removal from sour gases

* Hydraulic testing of M/S Kevin supplied PARLPAK 252m2/m3, ME250Y, ME250Y Additional and ME250Y Vantage at EIL R&D Complex.

The following technology development projects were initiated during the year and are in progress:

* Development of technology for design of Higee water deaeration system in association with BPCL (R&D).

* Design Methodology for Trays with Explosion Hatches.

* Process Design and Development of New Separation Devices for Flash Drum.

Technology Commercialization

* Crude Distillation Unit (CDU) Preheat Train Optimization using Pinch technology for Numaligarh Refinery.

* Proposals sent for the following:

* Parlpak application in quench columns and amine absorption columns of TGTU (Tail gas treatment unit) of BPCL-Mumbai Refinery and HPCL Mumbai Refinery.

* Parlpak application in Scrubber column of Naphtha Deep Desulphurisation Project of IOCL-Guwahati.

* CFC Prewash column: Coker block resid upgradation project CPCL Chennai.

* Undertaken Energy Efficiency Improvement Study (EEIS) at HPCL Visakh Refinery in association with CHT.

* Dynamic Simulation for Up-gradation of Anti Surge Valves for Propane Compressor of Train 1 & 2 of ADGAS LNG plant at Das Island, Abu Dhabi.

* Co-operation Agreement with M/s Kevin Enterprises on joint development of High capacity trays and packing. Received order from HPCL-VIZAG for supply of Parlpak in quench columns (3 columns) and amine absorption columns (3 columns) of TGTU (Tail gas treatment unit).

* Based on Tail Gas Treating Technology developed, a job has been secured to implement two tail gas treating units at BPCL Mumbai for improvement of sulphur recovery from 99% to 99.9%.

* Based on Oxygen Enrichment Technology developed, a job has been secured for implementing oxygen enrichment facility at BPCL Mumbai for capacity enhancement of the existing sulphur recovery unit by 130%

Initiatives for strengthening technology tie-ups

For strengthening technology tie ups, memberships of following research consortiums for year 2015-16 have been renewed:

* Process Science Technology Center, an industry-academia collaborative research program initiated by University of Texas, USA.

* Fractionation Research Incorporated, a non-profit cooperative research organization based at Oklahoma, USA.

* Process Integration Research Consortium of University of Manchester UK.

Patents filed/granted

Based on innovative work done during the year, the following two patents have been filed:

* High pressure fluidized bed gasifier and gasification process thereof.

* An absorbent liquid and a process for removal of acid gases using the same.

Two other patents filed earlier have been granted this year:

* Patent No 261235 Dated 13-6-2014: An Apparatus for Separation of C2/C3 and LPG from LNG Cold Stream and A Method for the Recovery thereof.

* Patent No 261476 Dated 20-6-2014: A Steam Trap Device

Specialist Materials and Maintenance Services

The Specialist Materials and Maintenance Services (SMMS) Department of EIL continued to provide specialist services to the various in-house projects and clients in Petroleum, Petrochemical, Metallurgical, Nuclear and Infrastructure sectors in India and abroad. Some of the important assignments are mentioned below:

* Health Study of gas pipelines in KG Basin, GAIL.

* Fitness for Service for Hazira Compressor Station, GAIL.

* Specialist services for revamping of existing Cathodic Protection system, GAIL.

* Health study of Reactor Feed Heater at Mumbai Refinery, HPCL.

* Specialist services for refractory during shutdown of Mangalore Chemical and Fertilizer Limited, Mangalore and for refractory lining repair of 95" Flue Gas Duct in FCCU, HPCL-Mittal Energy Limited, Bathinda, Punjab.

* Specialist services for Refractory, Insulation & Fireproofing in Algiers Refinery, M/s. Sonatrach, Algeria.

* Material Selection for Kuzey-Marmara Fixed Offshore platform of TPAO, Turkey and Liwa Plastics Project of Orpic, Oman.

* Material Selection, Refractory & Insulation, Corrosion Control and Cathodic Protection for IREP of BPCL, Kochi.

* Refractory & Insulation, Corrosion Control and Cathodic Protection for Dangote Refinery & Petrochemical Project, Nigeria and Indo-Rama Fertilizer, Nigeria.

Information Technology Services

Information Technology Services (ITS) division of EIL continued to provide state-of-the-art IT enabled services with an aim to deliver better quality services with increased efficiency at reduced costs. Using new IT technologies, various initiatives were taken during the year, the details of which are as follows:

Secure File Sharing System: A web based 'Secure File Sharing System' has been developed for secured sharing of Category-1 documents on to the web-application portal among the authorized users of EIL protected by multi-level password.

Projects Documents Sharing System: This web based system has been developed to facilitate sharing of project documents with the clients with features such as restricted access, e-mail notifications etc. Client may also access and upload the documents In the system by using the user id and password provided to them.

Internal Customer Perception Survey System: This Web based software has been developed for conducting internal customer perception survey. The system also facilitates the departments to see the analytical reports of their received perceptions.

GMS (Grievance Management System): An Online System developed to provide easily accessible platform for expeditious settlement of grievances of employees.

Appraisal Management System (AMS) for Staff: A web based online appraisal management system for Staff from 1 to 9 level employees has been implemented. It has various modules facilitating to capture the data required in the appraisal process.

Training Database Management System (TDMS): A web-based system has been developed for the Training department. The objective of the system is to maintain the annual training calendar and to create an employee wise centralized data base for the trainings conducted by Training division.

Software for Engineering Disciplines: Following new software have been developed for the Engineering and Technology divisions:

* Electrical Datasheet Integration System (EDIS): A web based system has been developed for generating the MR/PR/Vendor side electrical datasheet along with approval cycle with review codes, comments/resolution and revision management between EIL and supplier/manufacturer.

* Cast Air Pre-heater thermal design software: A web based system for calculation of thermal profile of tubes in cast air pre heater has been developed for HMTD department. Software can generate the temperature profile at each tube row level. The Tube configuration can be simulated for different design to maximize the heat recovery. *

* Instrumentation Field Bus Cable Schedule: A web based application has been developed to implement the Field bus technology in EIL engineered plants. This will help in Foundation Field bus cable schedule preparation, Trunk cable estimation for package equipment, Drum scheduling and MTO preparation for Field bus cables and JBs.

* Engineering Query Management System: A centralized web based system for managing engineering queries at ROs/BO with features such as cataloguing, reuse, reminders, mail alerts, SMS notifications, reporting on pending queries, auto archival etc.

Software for Cost Engineering Discipline:

* Integrated Cost Estimation System (ICES): The system captures the technical data from engineering software like ECABLE, IMPRESS, EDSIS, etc. and past commercial data from Integrated Procurement Management System (IPMS), and brings them to a single platform wherein the user can use this information for project level cost estimation and monitoring purpose.

* Cost Estimation for Feasibility Reports (DFR): A web based software to facilitate the preparation of project cost estimate for Preliminary Feasibility/Detailed Feasibility Reports (PFR/DFR) and helps in calculating the Plant & Machinery cost estimation for process/Offsite units from available costing database in various forms such as Detailed Unit Cost, Equipment Level Cost and Single line figure etc.

Enhancements in the Electronic Document Management System (eDMS):

Many improvements were carried out in the system during the year with an objective to make the document exchange and its monitoring more efficient and effective and to reduce execution time. Auto alerts and reminders were incorporated for auto escalation of user tasks to minimize document review cycle time. Enhancements were carried out in the Rendition Server to make PDF conversion process faster and smooth. New reports were incorporated for proper monitoring and tracking of document exchange and review cycles. Several improvements were also carried out in the Contractor/ Supplier and Client portals to make it more user friendly.

Enhancement of existing systems: Upgrading and enhancement of existing systems on a regularly basis is a key deliverable of the Division. During the year, the following existing software have been improved by way of enhancement of capabilities and inclusion of additional features and put to use on more number of projects:

* Pre-Commissioning and Commissioning Activities Management System (PCAMS)

* Structural Engineering Design Solution (SEDS)

* General Civil engineering Design Solution (GCEDS)

* Intelligent Design Basis for Engineering

Enhancements in Financial Accounting System:

Following enhancements have been carried out in the FAS system:

* System to generate Cash flow, Cost Record and Location wise expense statements.

* Bank Reconciliation through system for State Bank of India.

* System generated Bank Guarantees confirmation, Revoke and invocation letters to Banks.

* Filling of Vendor e-TDS return with detail of reduce rate through system.

* System generated credit invoices to clients for cost reimbursable contracts.

PMC Services for DGH's NDR Project: PMC services have been extended to Directorate General of Hydrocarbon (DGH)'s National Data Repository (NDR) project. NDR aims to provide a world- class data storage and retrieval infrastructure for the hydrocarbon exploration and production (E&P) data in a safe and reusable manner.

Implementation of IT Infrastructure:

* The implementation of IT infrastructure including both hardware and engineering software at Abu Dhabi hub is underway.

* PCs of a large number of users have been upgraded with state of the art PCs at HO/ BO/ ROs.

* A latest SAN based storage system of 40 TB capacity has been installed in the Computer Centre at HO.

* Implementation of new servers at HO is in process.

Sustainable Development

EIL's sustainability mandate evolves around complying with the environmental regulations and norms in a way that make it a responsible company and transparent to all its stakeholders. The Company's project designs support sustainability right from the concept stage to plant commissioning and subsequently during the commercial operation. Energy efficiency, resource optimization and safety of plant personnel & society at large are the cornerstones of our business operations and also ensure business continuity.

EIL has refocused its engineering philosophy and business models to achieve long-term sustainable growth. It has also initiated evaluation and reporting of its performance on the triple bottom lines of economic, social and environmental aspects. It believes that the sustainability initiatives underway will propel the organization on an upward growth trajectory.

A separate Report on Sustainable Development is annexed to this Report.

Corporate Strategy & Business Development

Corporate plans are imperative for any organisation with a time horizon of five years and a longer term perspective. A Corporate Strategy and Business Development (CS&BD) group is now functional, which performs the role of evaluation of Market opportunities, Business Developments, Venturing into new geographies, Tie-ups with Licensors/Vendors/Collaborators, augmenting the portfolio of EIL by diversifying into sunrise sectors.

The Division has been consciously focusing on the market and proposing the strategies required for growth of the organisation. The CS&BD Division has been focusing on the core hydrocarbon sector customer requirements, seeding ideas to new and potential clients. Owing to the current market scenario, it is also essential that EIL, while harnessing its core strength, should also explore projects in sunrise sectors and new geographies.

Under the Internationalization focus, the Middle East Hub of EIL in Abu Dhabi has been expanded and manpower is being progressively ramped up to service the entire MENA region. In addition, the CS&BD division has also been exploring business opportunities in South East Asia and the rapidly emerging African markets.

As part of enhanced value creation, CS&BD has been in continuous dialogue with various licensors/technology providers, with an objective to collaborate and provide a bouquet of niche services to the owner organizations.

The CS&BD group has initiated aggressive business development activities in Solar Power, Fertilizers, Water and Waste Water Treatment, SMART Cities, PCPIRs etc as part of expansion into new lines of business. Sustained BD efforts are under progress with ULBs, Municipal Corporations and respective state governments in this direction.

HSE Management System

Since its inception, EIL has always accorded highest priority to Health, Safety & Environment (HSE) in all aspects of its operations. The Company's HSE policy covers the following:

* Compliance to statutory requirements, engineering codes and standards

* Ensuring the health and safety of employees & associates

* Creating awareness on HSE amongst employees & associates

* Continual improvement of the HSE Management system

In order to implement the above policy, the Company has a robust HSE Management system based on OHSAS 18001 (Occupational Health and Safety Assessment Series) and ISO 14001 (Environmental Management System). The HSE Manual, various procedures, checklists, templates have been developed and implemented across the organization as a part of the HSE Management System.

During the year, EIL's HSE Management system was certified by an accredited Certification Body to OHSAS 18001 and ISO 14001 in December 2014. These certifications will enhance your Company's evaluations scores while bidding for overseas jobs particularly in the Middle East Oil & Gas market.

During the year, extensive HSE Management System awareness amongst employees was created through class room trainings, sharing of training materials/documents in the portals and HSE Newsletter. During the year, class room training on HSE Management system was imparted to 832 employees, which is in addition to training and materials shared in electronic form. This training included modules on emergency preparedness and response which enables employees to safeguard themselves and their colleagues during emergencies.

Internal audits, external audits and top management review of the HSE Management system are being undertaken for ensuring its continuous improvement.

Hazard Analysis, Risk Assessment & Control (HIRAC) and Environmental Impact Analysis (EIA) have been carried out at various locations to mitigate and control Health & Safety hazards and Environmental impact.

HSE aspects are in-built in the procedures of various engineering departments and compliance to the same is verified through usage of checklists.

Your Company has a detailed system for implementation of HSE management at construction sites including an elaborate HSE specification for the sites. Compliance to these specified requirements are ensured through checklists, inspections, audits, awareness etc.

Incident/Accident reporting and investigation procedures with specific reporting protocols have been developed and deployed.

Being a member of the British Safety Council and National Safety Council, EIL keeps abreast of the developments in the HSE domain through updates, articles, journals etc.

Quality Management System

Quality is inbuilt into EIL's processes, workplace, deliverables and services. The Quality Management System of the Company was reassessed through external Surveillance Audit by a third party certification agency which confirmed that the Quality Management System of EIL continues to conform to the international standard ISO 9001:2008.

The validation of EIL's relentless focus and pursuit of quality has come in form of numerous and prominent awards. During the year, the Company was conferred with the prestigious Rajiv Gandhi National Quality Award (RGNQA), Commendation Certificate Award 2012 in Large Scale Service Industry Category, instituted by Bureau of Indian Standards (BIS), the National Standards body of India.

Important ingredients of our quality initiatives are effective & comprehensive Internal Quality Audit process, planned customer perception surveys, analysis of feedbacks from stakeholders and regular reviews & directions from the Management Review Committee (MRC) & the Systems Committee. The MRC is chaired by the C&MD with all whole time Directors being members. The Systems Committee is chaired by senior Executive Director, and senior officials from all areas of operation & functions are members of the committee. Regular monitoring is done to analyze the data & feedback for recommending improvements in processes, deliverables and QMS to reduce costs, shorten cycle time, cross functional issues, improve visibility and credibility without affecting the environment. QMS implementation and its effectiveness have been further increased by computerization of certain processes through in-house developed software.

The Quality Management System of your company's UAE (Abu Dhabi) office was also independently audited and reassessed for certification during the year.

In addition, the Company participated as a prominent and active member in various committees for formulating products and quality system standards by Bureau of Indian Standards.

Risk Management

EIL's Risk Management policy with a robust supporting risk management frame work facilitates identification and assessment of new risks and review of presently identified risks. The process is based on identified risks and the risk events or factors which require regular assessment and quick response. Based on the probability & impact of the risk, the requisite controls and action plans have been designed and implemented.

Key Risk Indicators (KRIs) have been identified to measure the adequacy, effectiveness and efficiency of these, controls and action plans.

The objective of risk management in the Company is to act as an enabler in maintaining its knowledge edge, sustaining and expanding the business, being competitive and ensuring execution of projects within budgeted cost and time, resulting in improved turnover and profitability.

The elements of risks have been identified by your Company and disclosed for the benefit of all stakeholders. To cover all the elements of risks at enterprise level, nine categories have been defined by the management & risks were identified and categorized in them.

Risk compliance verifications are conducted regularly to test the compliance of controls and the same is reported to the Risk Management Committee (RMC). The risk identification & assessment processes and risk audit process are being handled through "Enterprise Risk Management System (ERMS)" software.

The status of Enterprise Risk Management (ERM) process is presented to the Risk Management Committee & Audit Committee, which is reviewed by the Board also. The reporting structure meets the regulatory requirements.

Project Risk Management has been implemented for high value and important projects as per the criteria approved by the RMC. The risk severities are categorized as critical, major, cautionary and minor based on the probability and overall impact.

In addition, a bi-monthly risk newsletter 'Risk Screen' is being emailed to all employees of your Company. This creates awareness about various risk management activities/achievement, new topics/ practices/ updates on ERM or PRM and to create enthusiasm in them to proactively control risks in their work processes & areas.

Your Company is committed to further strengthen its risk management capabilities in order to protect interests and enhance shareholder value.

Vigilance

During the year, CTE type examination of EIL's jobs on LSTK/OBE basis, random inspection of in-house contracts/purchases, scrutiny of Immovable Property Returns, investigation of complaints etc. were carried out by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures and Government guidelines. Various rules, regulations and procedures were reviewed during the year and System improvements were suggested to the Management & necessary measures were undertaken for improvement. The observations reported by CTE/CVC were examined and necessary actions were taken.

Structured meetings were held between CVO, C&MD & functional Directors and Inter-Directorate meetings were held with respective Directors to resolve the pending issues. Details of vigilance activities were also presented to the Board.

Various vigilance workshops, seminars, debates & Vigilance Awareness Week etc. were organized in HO, Regional, Branch, Procurement and site offices of EIL during the year for spreading vigilance awareness amongst the employees of EIL. A seminar on the topic "Orienting Personal Goals with Organizational Goals" was organized for senior level officials during Vigilance Awareness Week 2014. Some important features of Vigilance activities are given below:

* Leveraging Technology:

Reverse auctioning, e-tendering, e-payment, e-receipt, etc are already implemented in the Company and being monitored regularly against the set targets. Clearance of vendors' bills on 'First in, First Out' (FIFO) under Bill Tracking system (BTS) is ensured. BTS has provision for details about pendency of vendors' bills.

* Complaint Handling Policy (CHP): As per CVC Guidelines, EIL has formulated Complaint Handling Policy (CHS) & have a link on the Company's website for online complaint registration from public, contractors, vendors, suppliers etc. which is regularly monitored by Vigilance with respect to the status of complaints.

* Job Rotation: Job rotation of sensitive posts is being done & reporting of the same is being done on monthly basis.

* Integrity Pact: EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all of its business dealings & adopted Integrity Pact in November, 2011 for enquiries having threshold value over Rs.5 Crore, which has further been lowered from Rs.5 Crore to Rs.1 Crore.

* Online Vigilance Clearance (OVC) & Scrutiny of IPRs: Online Vigilance Clearance and Immovable Property returns of employees is being carried out through Vigilance website - "Avalokan" on OVC portal.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generations as well as creation of wealth. EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having adequate number of professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports are regularly submitted to the Management and the major findings to the Audit Committee of the Board.

Human Resource & Industrial Relations

People are at the heart of our business and the quality & level of service that our employees deliver, directly impacts the results of the organization. The HR function at EIL thus endeavors to build an environment that unlocks the potential of the employees and keeps them inspired to achieve more.

As of March 31, 2015, we have 3192 employees, including 2821 technically and professionally qualified employees. Approximately 4.6% of our employees are located outside India, and have experience of international work environments.

* Talent Acquisition

Closely linked with the strategic goals & objectives, our Talent Acquisition strategies aim at facilitation of Right People at the Right Time and at the Right Place. Diverse recruitment models are employed to meet the dynamic business needs with intake of fresh talent, domain specialists, short term hiring through outsourcing and taking onboard consultants/advisors.

To sharpen the skill sets and broaden the understanding of other Division/Departments of the Organization, planned job rotation has been implemented.

* Performance Management System

In the area of Talent Assessment and Appraisal, EIL has in place a robust and transparent Performance Management System that gives weightage to both performance and potential. The Performance Management System is an online process. The outcome of Performance Management System is used for performance related pay, career progression, training & development and succession planning.

Review of the Promotion Rules of Officers and PMS procedure had been initiated during the year to make the system more objective and transparent.

* Employee Welfare

During the year efforts were made for aligning our welfare measures towards enhancement of quality of work life for our employees. Various employee welfare initiatives were taken ranging from creating forums for social interactions to providing effective medical services by empanelling more hospitals and revision in rates of vaccines.

* Thrust on Sports

Providing a supportive role in health & fitness, EIL promotes various sports by organizing weekend sessions and interdepartmental tournaments. Employees are encouraged to participate in various trekking expeditions, sports tournaments at regional and national levels. EIL employees participated in 11 PSPB tournaments. An active member of Petroleum Sports Promotion Board (PSPB), EIL hosted PSPB Table Tennis Tournament at Jamia Milia Islamia Sports Complex where 8 teams including EIL participated.

* Reward & Recognition Scheme

Implementation of revised reward & recognition scheme was effected during the year for recognizing exemplary individual & team performance under various award categories.

* Best employee of the year in Staff Category

* Young Executive of the Year

* Professional of the Year

* Innovation Awards - Individual Innovation, Team Innovation

* Technical Paper Writing

The Annual Awards for the year 2013-14 were presented during the Independence Day Function on August 15, 2014. A total of 32 employees were awarded in different award categories.

* Training & Development

Significant interventions were made for development of Managerial/Behavioural Competencies as well as Technical and Domain related competencies. Self-Awareness training programs focusing on lifestyle management were also facilitated.

In addition to this, structured Management Development Programmes were organized through Management Institutes for senior and junior management levels and seventh batch of Leadership Development Programme- 'Aarohan' was completed for senior executives.

Moreover, year-long training structure was implemented for Management Trainees which is a blend of classroom as well as experiential and on-the-job learning.

During 2014-15, the average training days per employee was 2.78.

SBU training programmes were conducted on specialised domain areas like Hazardous Area Classification of Electrical Equipment & Selection of Rotating Equipment in the hydrocarbon sector for clients - Reliance Industries Limited, Vadodara & Oil India Limited, Duliajan.

* Mentorship Development

With an objective to foster professional relationships and provide a forum to offer constructive advice to support the career development of the mentee, EIL supports Mentorship Development Programme allocating trained mentors in the ratio of 1:3 (Mentor: Mentee) for Management Trainees.

A special 2-day programme on 'Mentoring for Win-Win Outcomes' was organized for selected group and the programme included a mix of questionnaire, role- plays & group exercises. The workshop provided introspection and insights to both the Mentor & the Mentee for building positive relationships and stronger teams.

* Leveraging IT in HR

Regular interventions are made to strengthen the HR processes through IT assistance. New modules have been introduced facilitating ease of operability & efficiency.

EIL Connect continued to provide an interactive environment to the employees and has proved to be a valuable communication forum for employees posted both within India and at overseas locations. More than 1098 news items/reports were uploaded on EIL Connect and more than 17.27 lakhs hits were made on portal during the financial year.

* HR Initiatives

An HR Agenda was drawn up for 2014-15 to channelize the efforts of the HR team and enhance the effectiveness of the HR function. Focused efforts were made on implementation of key action points of the HR Agenda during the year.

As an effective tool for assessing officers in both individual and group based environments for development, Assessment & Development Centres were conducted for 59 nos. of senior management personnel during September - October 2014. Performance Contracts (PCs) for 2014-15 were executed for all Divisions of HR Directorate cascading business objectives within HR functions. The four perspectives namely Operational, Process, Financial and HR, with each perspective having defined Key Performance Indicators (KPIs) and quarterly targets enabled continuous monitoring and evaluation of performance.

The first Annual Report of HR Directorate was released for the year 2013-14 by C&MD. The report is a compilation of HR efforts made during the year providing insights into Targets, Action plan & Results achieved by HR divisions.

* Implementation of Government Directives on Scheduled Caste/ Scheduled Tribe

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavoring towards safeguarding the interests of SC/ST employees. In pursuance of the philosophy and compliance of Presidential Directives dated December 30, 1972 issued by Ministry of Petroleum and Natural Gas, EIL has incorporated necessary provisions in its Recruitment process and Promotion norms.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employee's Welfare Association by holding periodical meetings with the Association. 15 no. of EIL scholarships were awarded to SC and ST (SC- 10 and ST-5) undergraduate engineering students.

The percentage of employees belonging to Scheduled Castes & Scheduled Tribes category was 18.6% and 4.5% respectively of total employee strength of the Company (as on March 31, 2015). Regular meetings were held with representatives of SC/ ST Welfare Association and Liaison Officer for redressal of their grievances/concerns.

* Women Development

Women constitute approximately 12.7% of the Company's human resource, wherein more than 80% are in the officer cadre. To cater to the development needs of its women employees, a Women Forum is in place and has been reconstituted to include a Core Committee comprising senior officials as Patron, Chairperson & Co-Chairperson. The Core committee appoints Convener, Secretary, Treasurer and Executive Members who assist in carrying out the function of the Women Forum.

The forum focuses on providing opportunities for development to women employees and identifies various training interventions especially in the area of Managerial Skills and Leadership Development as well as participation in National and International Conferences & Symposiums.

* Initiatives for the benefit of Persons with Disabilities

EIL is implementing the provisions of the Disabilities Act, 1995 by way of 3% reservation for Persons with Disabilities. Various concessions and relaxation are being extended to Persons with Disabilities in the recruitment process. In addition, Special Transport Allowance to PwD employees are provided under the scheme of the Persons with Disabilities. Presently, there are 36 nos. (i.e., 1.1%) of PwD employees on the rolls of the Company as on March 31, 2015.

Corporate Social Responsibility

In EIL, CSR is the commitment to operate in an economically, socially and environmentally responsible manner to enhance the Company's overall contribution to society. The thrust areas for CSR activities/ projects are education, healthcare, drinking water/sanitation, rural electrification, environment protection/sustainability, women empowerment, upliftment of underprivileged, community development, vocational training/skill centre and promotion of sports.

Company's CSR activities are directed towards supporting the initiatives of Local, State or Central Government with programmes located in and around its Project Sites, Regional Offices and Head Office, with special focus on the backward areas and underprivileged sections of society.

In FY 2014-15 as per Companies Act 2013, the budgetary allocation of 2% of the average net profits made during the three immediately preceding financial years has been made for CSR activities.

Some of the project/activities undertaken in various thrust areas are elaborated below:

Education: The Company facilitated renovation/up-gradation of infrastructure in various educational institutes for underprivileged children in Assam. Other projects under execution include construction of auditorium for girl students and support for setting up of the Digital Library in Andhra Pradesh, classroom and toilet facilities (for girls) in Coimbatore.

EIL also supports value based educational programs in various schools of Uttarakhand and free education to underprivileged children from the slums of Delhi/NCR.

Another on-going key initiative is adoption of 100 and 25 Ekal Vidyalayas of Dibrugarh District in Assam and Odisha respectively through 'One Teacher School'.

Health Care: For providing better healthcare services to the poor and needy, EIL supported procurement and installation of Medical Equipment at Kakinada, installation of one BERA (Brain Evoked Response Audiometry) testing facility system for remediating hearing loss among infants at Kochi, installation of Blood Bank Refrigerated Centrifuge for medical care of blood cancer patients through blood banking programs In Kolkata and provided fully equipped Mobile Cancer Detection Van for screening & diagnosing cancer and spreading cancer awareness among poor sections of society in Delhi/ NCR.

The Company organizes general Health & Eye Check up Camps for the poor and needy residing in and around EIL's areas of operation in various states.

Other ongoing projects include installation of medical equipment for mentally and physically challenged destitute senior citizens in Delhi and support for organizing camps for distribution of assistive aids & appliances to poor & needy Persons with Disabilities (PwDs) in Bhubaneswar, Bolangir & Paradeep Districts of Odisha & Dibrugarh District of Assam.

Drinking Water/Sanitation: In order to improve accessibility to safe drinking water to rural population, EIL supported installation of 93 RO water systems with water storage tanks in boys & girls hostels/ blocks of Bapatala town, Andhra Pradesh and construction of Reverse Osmosis (RO) Water Treatment Plant and associated facilities at eight villages in Karnataka. Another project under execution is provision of potable water to six villages through installation of RO water treatment plants at Kakinada.

Under Swachh Vidyalaya Abhiyan, construction of sanitation facilities and additional toilets in schools of Bihar, Odisha, Tamil Nadu & Assam is being supported.

Rural Electrification: In an effort to make a significant impact on standard of living of remotely located village communities, EIL supports installation of LED solar public lighting system in 59 villages across 3 districts of Mizoram.

Environment Protection/Sustainability: As a step towards raising awareness in youth and local population about environmental degradation, EIL is supporting a social outreach program in Trans Himalayan Region of Leh-Ladakh. Another project under this initiative includes supporting construction & installation of environment friendly green cremation system in New Delhi.

Women Empowerment: Reinforcing social & economic empowerment of women, EIL supported distribution of sewing machines to underprivileged women for advanced cutting & tailoring course in New Delhi, distribution of prosthesis & medical bras to breast cancer survivors as post-operative care at various hospitals in Delhi/NCR and providing equipment for training of deaf women at New Delhi.

Another step in this direction is construction of office cum training centre and other infrastructural facilities for underprivileged women at Kakinada for imparting various skills and vocations.

Upliftment of underprivileged: Playing a supportive role in promoting persons with disabilities, EIL organized an assessment & distribution camp for distribution of assistive devices in New Delhi.

Three workshops, each in textile (Delhi), paper craft (Delhi) & cosmetics (Nainital) for product development through design & innovation and project for physically challenged persons in IT/ITES/ BPO sector through training and skill development programs were organized at Bengaluru.

For the cause and care of disadvantaged & abandoned senior citizens, EIL facilitated construction of one block of Old Age Home - 'Guru Vishram Vridh Ashram' at Lathira (UP), construction of Old Age Home at Mirzapur Distt (UP), distribution of 3440 number of Adult Diapers for old disabled persons in Vridh Ashram, Badarpur(Delhi) and installation of solar panels &water heater systems for old & infirm in New Delhi. Projects under execution are construction of first floor of Old Age Home for the Blind and installation of lift at Old Age Home for senior citizens in New Delhi.

Other initiatives undertaken by EIL for empowering the underprivileged include Construction of girls block and associated facilities to accommodate abandoned HIV/AIDS infected/affected women & girls at Kancheepuram District, renovation of sanitation facilities at educational institute for students from marginalized background in New Delhi and construction of vocational training centre at Chikkaballarpur to promote entrepreneurship & employability skills among rural youth.

Community Development: Lending a helping hand towards advancement of community, EIL facilitated development of Panchayat Hall and provision of water supply lines for the rural community of Padur.

To strengthen rural infrastructure for the local residents of various villages of Yanam (Puducherry), project for construction of RCC retaining wall/road side drains/Compound wall is under execution.

Vocational Training/Skill Centers: EIL is extending support towards employment oriented skill development training of youth at Bhopal and Faridabad in trades like Welding Technology, Graphic Designing etc and special placement-linked, skill development training in various trades like IT/ITES, Hospitality & Retail Supervisory, Garments sector, etc for youth in Manali and Siruseri area of Chennai in Tamil Nadu.

Projects for skill development and employment oriented training for Persons with Disabilities (PwDs), SC/ST/OBC, Women and Economically Weaker Section of society in various trades across India near EIL's area of operation and for 40 candidates belonging to SC, ST, OBC and BPL category in Electrical Wireman trade in Bharuch, Gujarat are also under execution.

Swachh Bharat Abhiyan

Swachh Bharat Abhiyan is a transformational initiative launched by the Hon'ble Prime Minister, Shri Narendra Modi. Your Company has eagerly responded to the Hon'ble Prime Minister's clarion call for a Swachh Bharat and undertaken various activities during the year :

Swachh Vidyalaya Programme: To help provide the basic amenity of safe and clean toilets to a large segment of the Indian population esp. the women, EIL adopted 509 school toilets in the states of Bihar, Odisha, Tamil Nadu and Assam for construction and repair last year. Separate toilets were planned for girls and boys in schools, some of which are located in very remote areas. With active involvement of the local, state and central govt., tenders have been issued for a majority of jobs, construction of several toilets is in progress and many have achieved completion.

Shramdan: EIL officers have been participating enthusiastically in cleanliness drives that are organized on a regular basis in and around the Head Office, adjoining traffic islands and various site premises.

Awareness Campaigns/Social Media: Photographs, news items and articles on various activities relating to Swachh Bharat Abhiyan have been uploaded/published regularly on the Corporate Website, Intranet, Facebook, Twitter, Company Journals etc.

The Unaudited Financial Results of EIL for the Quarters ending Sept 30, 2014 and December 31, 2014 were designed on the theme of "Swachh Bharat".

To increase public awareness about the Swachh Bharat Abhiyaan, an outdoor advertisement has been displayed at a bus queue shelter in Bhikaiji Cama Place which caters to the high volume traffic passing through the busy Ring road. A front-lit signage (60 ft x 30 ft) has also been installed on the front facade of EI Annexe building.

Cleanliness and Sanitation: Inspection of toilets and floors in office premises is undertaken almost daily/weekly at all EIL offices. Detailed Reports are received from site In-charges via EIL's Field Personnel Cell (FPC) and Administration personnel at EIL HO/Gurgaon. Further, MCD has accorded approval to EIL for adopting areas in front of EI Bhawan at Bhikaiji Cama Place for its upkeep and maintenance.

Waste to Fuel: EIL shall be adopting a heritage City in Northern India to set up a Waste to Fuel conversion facility as part of the cleanliness campaign, Swachh Bharat being undertaken under the aegis of MoP&NG.

In addition to the above CSR highlights, a report on CSR activities as per the provisions of the Companies Act, 2013 is annexed to this report.

Make in India

"Make in India" is a path-breaking initiative launched by the Hon'ble Prime Minister aimed at reviving and revitalizing the manufacturing sector in the country. As part of the "Make in India" campaign, EIL has been pursuing several initiatives:

* Identification of current imports in this sector.

* Focus on import substitution and policy initiatives as enablers.

* Vendor interaction to upgrade indigenous manufacturing technologies.

* Indigenization of equipment manufacturing to increase domestic content.

* Online empanelment of prospective vendors.

* Vendor enlistment through continuous interaction, assessment and evaluation.

* Continuous interaction with other organizations towards collaborative research.

* Local skill development initiative and enablers.

EIL is piloting the Midstream sectors for Make in India initiative under MoP&NG and is a member of the Steering Committee set up for the purpose. A Vendor Meet with all stakeholders was held in Mumbai for sensitizing the manufacturing sector to the policy initiative being contemplated.

Official Language

To propagate and enhance usage of Official Language in communication, various initiatives like facilitation of Regular Classes & Correspondence Courses for employees not conversant with Hindi, Hindi workshops and celebration of Hindi Fortnight were undertaken.

Initiatives were also taken in the field of IT to facilitate use of Hindi Language in official work by upgrading Hindi Software and installing Glossary on Company's Portal. The facility of Google translation, Mahashabdkosh of Home Ministry has also been provided on Personal Computers.

Rajbhasha Vibhag organized 'Hindi Kavita Path' competition for undertakings of Delhi under the aegis of Town Official Language Implementation Committee (TOLIC) and EIL was honored for organizing this programme.

Inspection of Official Language through TOLIC and Committee of Parliament on Official Language was conducted at the Head Office, New Delhi. Rajbhasha Vibhag also carried out regular inspections at its Division/ Departments and Regional/ Field/ Procurement offices during the year in accordance with the Official Language policy.

Awards and Accolades

* Conferment of SCOPE 'Navratna Trophy' by the Hon'ble President of India.

* India Today PSUs Award 2014 in the category of "Best Global Presence" to EIL.

* FICCI Chemical and Petrochemical Award 2014 in the categories of "Process Innovator of the Year-Petrochemicals" and "Sustainability Award for Best Green Process-Petrochemicals."

* PSE Excellence Award 2014 for Human Resource Management by Indian Chamber of Commerce (ICC) and Department of Public Enterprises (Govt. of India).

* "GEM OF INDIA" award to Ms. Veena Swarup, Director (HR) in the Human Resource Category in recognition of her outstanding accomplishments and individual excellence in her chosen field of activity by All India Achievers' Conference.

* Award for "Outstanding Contribution in Oil & Gas (EPC Category)" for PFCC Unit of MRPL Phase III Refinery Project by EPC World Media Pvt. Ltd.

* Asia Pacific HRM Congress Award 2014 in the category of "Organization with Innovative HR Practices."

* Engineering PSE of the year 2014 Award by PSE Journal & Enertia Foundation.

* "HR Leadership Award" by LOKMAT ASPIRE for leadership and outstanding contribution in the field of HR to Ms. Veena Swarup, Director (HR), EIL.

* SKOCH Platinum Award for Crude Oil Strategic Storage Projects.

* SKOCH Order-of-Merit for Human Resources.

* Energy and Environment Foundation Global HR Skill Development Award 2015.

* Outstanding National Citizen Award' by National Citizens Guild in recognition of her outstanding achievements in the chosen field of Activity to Ms. Veena Swarup, Director (HR), EIL.

* Golden Peacock Award for Corporate Governance for the year 2014 instituted by Institute of Directors (IOD).

* Bharat Jyoti Award to Ms. Veena Swarup, Director (HR) for Meritorious Services, Outstanding Performance and Remarkable Role.

* 7th CIDC Vishwakarma Award for 'Best Construction Projects' for Deen Dayal Field Development Project, OGT, Kakinada of GSPC.

* BT Star PSU Excellence Award 2014 in the category of 'Director Personnel for Outstanding Performance' to Ms. Veena Swarup, Director (HR), EIL.

* 7th CIDC Vishwakarma Award for 'Construction Health, Safety & Environment' for GAIL PC - II Expansion Project, Pata. EIL was also the recipient of CIDC Partners in Progress Trophy.

* Indian Achievers' Award to Ms. Veena Swarup, Director (HR) for Corporate Leadership in Human Resources for outstanding achievements in Business & Social Service.

Joint Ventures and Subsidiaries

* Joint Ventures

Ramagundam Fertilizers and Chemicals Limited (RFCL)

For setting up gas based urea plant of capacity 3850 TPD, EIL, National Fertilizer Limited (NFL) and Fertilizer Corporation of India (FCIL), have incorporated RFCL as a Joint Venture Company at Ramagundam in Karimnagar district of Telengana. NFL & EIL will each have 26% equity in JVC. EIL has been retained as Project Management Consultant for project execution on EPCM mode. The Project completion schedule to commission the plant is 36 months. NFL is a reputed player in the fertilizer sector and their expertise would be utilized for operating the plant as well as for marketing of the products. The plant is being built on the existing land of FCIL.

TEIL Projects Limited

TEIL Projects Ltd., the Joint Venture Company with Tata Projects Limited, is executing consultancy projects in Oil, Gas and Refinery sector and City Gas Distribution projects. TEIL is also endeavoring to enter into business related to Water Purification Plants.

Jabal EILIOT Company Limited

EIL's Joint Venture Company, Jabal EILIOT, has been pursuing prequalification with major Clients in Saudi Arabia like Saudi Aramco, SABIC etc. JVC could not secure significant EPC business in spite of concerted efforts. In view of the challenges imposed by the business environment, the shareholders recognized that it is impossible to realize the objective for which the JVC was incorporated and accordingly decided to dissolve and initiated the process of winding up of the JVC to arrest erosion of capital.

* Subsidiary Companies

Certification Engineers International Limited (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from ONGC, VMSS, SMC, GSPL, BPCL, various State Governments and others, notable among these being:

* ONGC- Certification Services for Mumbai High North Redevelopment Project (PLP), SBHT Pipeline Project.

* KRCL- Udhampura- Shrinagar-Baramaulla Rail Link (USB RL) Project.

* VMSS, RUDA & SMC- TPI for various infrastructure Projects.

* GSPL- TPI for various Pipeline Projects.

* Reliance Industries Ltd.

Apart from these, CEIL secured many Third Party Inspection assignments from clients like Reliance Industries, Heurtey Petrochem, TEDA, PunjLloyds, ERDMP & statutory audit assignments from GAIL, IOCL etc.

The Board of Directors of the Company has recommended for the financial year 2014-15, a final dividend of Rs.250/- per share (of face value of Rs.100/- each) in addition to Rs.200/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2014-15 works out to '450/- per share. The payment of final dividend is, however, subject to approval of the shareholders in the ensuring Annual General Meeting of the Company.

EIL Asia Pacific Sdn.Bhd

EIL Asia Pacific Sdn. Bhd. (EILAP) was incorporated on February 21, 1994 under the Malaysian Companies Act, 1965. However due to local regulatory requirement in Malaysia, EILAP was not able to secure any business lately. Accordingly, with due approvals winding up activities of EILAP have been initiated.

As required under the provisions of the Companies Act, 2013, a statement on performance and financial position of each of the Subsidiaries and Joint Venture Companies is annexed to Consolidated Financial Statement and is not repeated as part of the Directors' Report to avoid duplication.

In accordance with the provisions of the Listing Agreement, the company has formulated a policy for determining Material Subsidiaries and the same has also been posted on the website of the company at http://engineersindia.com/corporate- governance/m-160.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of SEBI and DPE Guidelines in this regard. The Board of Directors supports the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity. As required under Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors' Certificate on compliance of conditions of Corporate Governance, along with the Management's Reply on the comments of Auditors is annexed to this report.

Number of Meetings of the Board

The Board met seven times during the financial year 2014-15, the details of which are given in the Corporate Governance Report annexed to this Report which forms part of the Annual Report. The intervening gap between any two meetings was within the period prescribed under Companies Act, 2013, Listing Agreement and DPE Guidelines on Corporate Governance. For further details regarding number of meetings of the Board and its committees, please refer Corporate Governance Report, annexed to this Report.

Composition of Audit Committee

The recommendations made by the Audit Committee during the year were accepted by the Board. The other details of Audit Committee like composition, terms of reference, meetings held are provided in the Corporate Governance Report annexed to this Report.

Declaration by Independent Directors

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013, Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance.

Training of Independent Directors

The Company has a well defined Training Policy for training of independent directors which inter-alia includes the various familiarisation programmes in respect of their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the company etc. Further, the same Is also taken care during the various strategy meets of the Company and different presentations in the Board/Committee meetings on the statutory Laws. The details of such familiarisation programmes/Training Policy have also been posted on the website of the Company at http://engineersindia.com/corporate- governance/m-160.

Directors and Key Managerial Personnel (KMP)

(i) Inductions

Shri Ashwani Soni was appointed as Additional Director in the capacity of Director (Projects) w.e.f. 1.09.2014 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/2/2012-CA/FTS:23053 dated 7.07.2014. Shri Sanjay Gupta, Director (Commercial) was appointed as Additional Director and Chairman & Managing Director in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/2/2014-CA/FTS:30457 dated 8.05.2015. Further, Shri Sanjay Gupta, Chairman & Managing Director and Shri Ram Singh, Director (Finance) were also designated as CEO and CFO respectively to comply with the provisions of Companies Act, 2013 with respect to appointment of Key Managerial Personnel. Shri Sanjay Gupta, Chairman & Managing Director was entrusted with the additional charge of the Post of Director (Commercial) for a period of 3 months w.e.f. 1.06.2015 to 31.08.2015 or till the appointment of regular incumbent to the post or until further orders whichever is the earliest vide Ministry of Petroleum & Natural Gas, Government of India, letter no. C-31018/3/2015- CA/FTS:38389 dated 25.06.2015.

(ii) Re-appointments

In accordance with the provisions of the Articles of Association of the Company, Ms. Veena Swarup, Director (HR) (DIN: 06388817) and Shri Ajay N. Deshpande, Director (Technical) (DIN: 03435179) would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment.

In accordance with the provisions of the Companies Act, 2013, Shri Ashwani Soni who was appointed as Additional Director in the capacity of Director (Projects) and Shri Sanjay Gupta who was appointed as Additional Director and Chairman & Managing Director after the date of last Directors' report, shall vacate their office at the ensuing Annual General Meeting. Necessary notices have been received from them under section 160 of the Companies Act, 2013, proposing their candidature for appointment. The same has also been given on the website of the Company at http://engineersindia.com/corporate- governance/m-160. The Board recommends their appointment.

Brief resume of the Directors seeking appointment/ reappointment together with the nature of their expertise in specific functional areas, names of companies in which they hold directorships and the membership/chairmanship of Committees of the Board along with their shareholding in the Company etc. as stipulated under Clause 49 of the Listing Agreement, DPE Guidelines on Corporate Governance and other statutory provisions are given in the Annexure to Notice of 50th Annual General Meeting.

(iii) Retirements

After the date of last Directors' Report i.e. 21.07.2014, Shri Adit Jain, Dr. V. Vizia Saradhi and Shri D.R. Meena, Non-official (Part-time) Independent Directors ceased to be Directors of the Company w.e.f. 28.08.2014. Shri D. Moudgil, Director (Projects) ceased to be the Director of the Company w.e.f. 1.09.2014 due to his retirement on attaining the age of superannuation on 31.08.2014. Shri A.K. Purwaha, Chairman & Managing Director ceased to be the Chairman & Managing Director of the Company w.e.f. 1.06.2015 due to his retirement on attaining the age of superannuation on 31.05.2015. Shri Sanjay Gupta ceased to be Director (Commercial) consequent to his appointment as Chairman & Managing Director w.e.f. 1.06.2015. Shri Bijoy Chatterjee, Dr. R. K. Shevgaonkar and Dr. J.P. Gupta, Non-official (Part-time) Independent Directors ceased to be Directors of the Company w.e.f. 4.07.2015. The Board placed on record its sincere appreciation for the valuable services rendered and contributions made by Shri A.K. Purwaha, Chairman & Managing Director, Shri D. Moudgil, Director (Projects), Shri Adit Jain, Dr. V. Vizia Saradhi, Shri D.R. Meena, Shri Bijoy Chatterjee, Dr. R. K. Shevgaonkar and Dr. J.P. Gupta, Non-official (Part-time) Independent Directors of the Company.

Secretarial Auditor

M/s Agarwal S. & Associates, Practicing Company Secretaries, was appointed to conduct the Secretarial Audit of the Company for the financial year 2014-15, as required under Section 204 of the Companies Act, 2013 and Rules thereunder. The Secretarial Audit Report for the financial year 2014-15 along with the Management's Reply on the comments of Secretarial Auditor is annexed to this Report.

Vigil Mechanism/Whistle Blower Policy

The Company has formed the Whistle Blower Policy/Vigil Mechanism and no personnel have been denied access to the Audit Committee. The same has also been given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Transfer of Amounts to Investor Education and Protection Fund

A detailed disclosure regarding the same has been given in the Corporate Governance Report which is annexed to this Report. The same has also been given on the website of the Company at http:// engineersindia.com/corporate-governance/m-160.

Listing on Stock Exchanges

The Company is listed on The Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd. The Company has paid Listing fees for the Financial Year 2014-15 to the above Stock Exchanges in time.

Nomination and Remuneration Committee

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors both Executive and Non-Executive are made by the Government of India and are being paid remuneration as per the terms of their appointment. The Company has Nomination and Remuneration Committee and the detailed disclosure in this regard has been given in the Corporate Governance Report which is annexed to this Report.

Performance Evaluation of the Board

EIL is a Public Sector Undertaking (Government Company) and the appointment of Directors both Executive and Non-Executive are made by the Government of India. Therefore, the company has not laid down any criteria for performance evaluation of the independent directors and the Board.

Particulars of Contracts or Arrangements made with Related Parties (RPTs)

In line with the provisions of the Companies Act, 2013 and the Listing Agreement, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company at http://engineersindia.com/corporate- governance/m-160. The Company gives the disclosure regarding material transactions with related parties on quarterly basis along with the compliance report on Corporate Governance. During the year, there were no material RPTs. Further, suitable disclosure as required by the Accounting Standards (AS18) has been given in the Notes to the Financial Statements.

Details of Loans/Investments/Guarantees

In compliance with the provisions of the Companies Act, 2013, the details of investments made and loans/guarantees provided as on 31.03.2015 are given in the respective Notes to the financial statements.

Extract of Annual Return

In accordance with Section 134(3)(a) of the Companies Act, 2013, an extract of the annual return in the prescribed form is annexed to this report.

Cost Auditors

The Company does not fall under the Cost Audit Rules and therefore, there is no requirement of cost audit for the Company in terms of amended Companies (Cost Records and Audit) Rules.

Conservation of Energy, Research and Development, Technology Absorption, Foreign Exchange Earnings and Outgo

As the Company's operations do not involve any manufacturing or processing activities, the particulars required under Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 regarding conservation of energy and technology absorption are not applicable. The particulars regarding expenditure and earnings in foreign exchange are given in Note no. 2.25 of the financial statement.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company's operations in future.

Other Disclosures

No disclosure or reporting is required in respect of the following items as either these were not applicable or there were no transactions on these items during the financial year 2014-15:-

i. Details relating to deposits covered under Chapter V of the Act.

ii. Issue of equity shares with differential rights as to dividend, voting or otherwise.

iii. Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

iv. Details regarding receipt of remuneration or commission by the Managing Director or the Whole-time Director from any of its subsidiaries.

v. Buy-back of shares.

vi. Issue of Bonus shares.

Further, the names of Companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year are NIL.

During the financial year 2014-15, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Code of Conduct

EIL has formulated a Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel. The confirmation of compliance of the same is obtained from all concerned on annual basis. All Board Members and Senior Management Personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance annexed to this Report. The Code of Business Conduct and Ethics for Board of Directors and Senior Management Personnel are given on the website of the Company at http://engineersindia.com/corporate-governance/m-160.

Right to Information

Under the provisions of section 4 of the Right to Information Act, 2005 every public authority is required to display necessary information to citizens to secure access to information under the control of public authority in order to promote transparency and accountability in its working and functioning.

EIL, being a responsible public sector undertaking, has displayed essential information on its website under the head RTI. The management has notified CPIO and the First Appellate Authority (FAA) in compliance with the requirements of the RTI Act. Between April 01, 2014 and March 31, 2015, a total of 181(one hundred eighty one) applications were received by the Company and all of them were disposed off by providing requisite information as per rules. Apart from RTI applications, the Company also received appeals against the decision of CPIO, which too were duly attended to and appropriately disposed off by the First Appellate Authority. It is heartening to note that Central Information Commission has not passed any adverse order against the CPIO/FAA.

Directors' Responsibility Statement

Your Directors state that :

a) in the preparation of the annual accounts for the year ended March 31, 2015, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, have been followed and there are no material departures from the same;

b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2015 and of the profit of the Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a 'going concern' basis;

e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Auditors

M. Verma & Associates, Chartered Accountants were appointed as Auditors of the Company for the financial year 2014-15 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include State Bank of India, Indian Overseas Bank, State Bank of Travancore, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank, ICICI Bank, Indian Bank, Bank of India, Oriental Bank of Commerce, Canara Bank, IDBI Bank, Axis Bank, IndusInd Bank and Citi Bank.

Particulars of Employees

As per the provisions of Section 197 of the Companies Act, 2013 and rules made thereunder, Government Companies are exempted from inclusion of the statement of particulars of employees. The information has, therefore, not been included as part of the Directors' Report. However, the same information is open for inspection at the registered office of the Company on all working days between 10.30 a.m. to 12.30 p.m. prior to the Annual General Meeting.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development, we will continue to provide world-class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results. Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

For and on behalf of the Board of Directors

Sanjay Gupta Chairman & Managing Director

Place : New Delhi Date : July 9, 2015

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Mar 31, 2014

Ladies & Gentlemen,

The Directors have great pleasure in presenting the 49th Annual Report together with audited accounts of the Company for the year ended March 31st, 2014 along with Audited Statement of Accounts, the Auditors'' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2013-14 in Retrospect

Your Company sustained its good performance during FY 2013-14. The salient features, as stated in the audited financial statement, are as follows:

Turnover : Rs. 182359 lakhs

Profit Before Tax (PBT) : Rs. 69803 lakhs

Profit After Tax (PAT) : Rs. 47976 lakhs

Dividend

The Board of Directors of the Company has recommended for the financial year 2013-14, a final dividend of Rs. 3/- per share (of face value of Rs. 5/- per share) in addition to Rs. 3.50 per share interim dividend already paid during the year. With this, the total dividend for the financial year 2013-14 works out to Rs. 6.50 per share. Payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company.

Investor Relations

Your company''s Investor Relations (IR) objective is to build long term relationship of trust with its stakeholders. Your company aims to achieve this by fulfilling responsibilities to shareholders through fair disclosure of information and bilateral communication.

EIL is responsive towards openly sharing information with shareholders, investors, financial analysts, press and other stakeholders. The IR team utilizes various communication channels and materials including presentations, press releases, financial fact sheets and website content for distributing relevant and timely information. Management is also actively organizing and participating in investor events, such as Annual General Meetings, Press Conferences, One-on- One meetings, Investor Road Shows and Analyst Conferences.

Your company aims to treat all stakeholders equally and maintain disclosure and transparency in sharing information on financial performance, business outlook and strategic developments.

Management Discussion & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Consultancy Assignments (Domestic)

Offshore Oil & Gas

During the year, EIL continued to make considerable progress in Offshore Oil & Gas and LNG sectors in India and overseas. Foray into Deep Water sector remained one of the key focus areas for the Company.

The following consultancy assignments were successfully completed in Offshore Oil & Gas during the year:

- Detailed feasibility report for Naval Science and Technological Laboratory (NSTL) for "Mainak” Naval System Ocean station.

- Pre-award activities for ONGC''s Water Injection South (WIS) platform.

During the year, EIL secured the following orders against stiff competition. Implementation has taken off in right earnest.

- PMC services for expansion of Petronet LNG Limited''s (PLL) Dahej LNG Terminal from 10 MMTPA to 15 MMTPA.

- Consultancy services for pre-award and post-award activities for Revamping of ONGC''s 39 (nos.) well head platforms located in various fields.

- Consultancy services for post-award activities for ONGC''s BPA-BPB revamp project.

Additionally, following Offshore Oil & Gas projects are currently under execution:

- PMC services for Well-head, Process-cum-Living Quarters Platforms and submarine pipelines of Deen Dayal Field Development Project of Gujarat State Petroleum Corporation Limited (GSPC) at Mallavaram, Andhra Pradesh. Pre- commissioning and commissioning activities for the project are in advanced stage of completion.

- Re-qualification and Re-certification of 50 (nos.) offshore jackets for ONGC is in advanced stage of completion.

- Front End Engineering Design (FEED) package for Marine Works, Storage Tanks and Re-gasification Terminal for PLL''s 5 MMTPA Gangavaram LNG Terminal.

Consultancy services for FEED Package and LSTK tender for LNG Storage Tank of 200000 m3 capacity have been completed for Hazira capacity expansion project of Hazira LNG Private Limited (HLPL).

Onshore Oil & Gas

Following Onshore projects are under execution:

The Western Onshore Redevelopment Project (WORP) of ONGC is being executed by EIL on PMC basis. The Project entails revamp of onshore assets for 90 installations at Ahmedabad, Ankleshwar and Mehsana. All seven technical bid packages for the project have been prepared based on which EPC tendering activities have been initiated by ONGC.

EIL is providing PMC services for Cairn''s Associated Facilities Project at Mangala Processing Terminal comprising Storage Tanks and Export system, Power Generation & Distribution system and integrated balance works. The project is in advanced stages of completion. Pre- commissioning & commissioning activities are under progress.

Pipelines

EIL leverages its strong credentials in designing and laying of cross country pipelines for transportation of crude oil, refined petroleum products, natural gas and LPG to explore business opportunities in India and abroad. The following pipeline projects have been successfully completed during the year:

- Two additional Compressor stations at Chainsa (Haryana) and Kailaras (Madhya Pradesh) on Vijaipur-Dadri Pipeline of GAIL.

- Capacity Augmentation of Kota - Piyala Section of Manglya –Bijwasan Multi Pipeline of BPCL.

- 30” x 2 km HDD at Narmada River for GAIL.

The Green buildings designed by EIL for Chainsa & Kailaras pumping stations have been awarded 4 star rating by GRIHA.

The following major pipeline projects are in progress:

- 12”/8”x 450 km Kochi-Coimbatore-Erode-Salem LPG Pipeline for BPCL.

- 16”x320 km Irugur-Devangonthi Product Pipeline for BPCL.

- 36”x860 km Mehsana-Bathinda Pipeline along with 24”/18”/16”/8”x 726 km Spur lines for GIGL.

- 36”/30”/24”x1428 km Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline along with 30”/24”/18” x 477 km Spurlines for GITL.

- 12”x 100 km Hazira-Dahej Naphtha Pipeline for ONGC.

- 10”x26 km LPG Onshore/Offshore Pipeline from BPCL/HPCL Mahul Refineries to Uran for BPCL.

- 18”/16”x275 km Natural Gas Pipeline from Vijaipur to Kota and Spur line to Chittorgarh for GAIL.

- Detailed Feasibility Report (DFR) for 1400 km Dhamra- Numaligarh Crude Oil Pipeline for Numaligarh Refinery Limited ( NRL).

- Upgradation of pumping stations for Naharkatiya-Barauni Crude Oil Pipeline (NBPS) project of Oil India Ltd. (OIL).

EIL believes that its vast experience in executing Pipeline and Urban Infrastructure projects can be leveraged for entry into City Gas Distribution as an Owner/Operator.

Petroleum Refining

During the year, your company achieved significant progress on the following major petroleum refinery projects:

- As part of Phase-III Refinery Expansion Project, Mangalore Refinery & Petrochemicals Limited (MRPL) had planned to increase the crude processing capacity to 15 MMTPA by adding CDU/VDU of 3 MMTPA. The Project is being implemented on hybrid mode of PMC- LSTK, OBE and EPCM for various units. EIL is PMC for LSTK packages and EPCM consultant for Utilities/Offsites.

- EPCM services for the CDU-4 project being executed by Bharat Petroleum Corporation Limited (BPCL) in their Mahul Refinery, Mumbai. The new Crude and Vacuum Distillation Unit (CDU-4), designed for a capacity of 6 MMTPA, shall replace the ageing CDU- 1 and CDU-2. Engineering and procurement for the project are in advanced stage of completion and construction activities are progressing in full swing.

- The Integrated Refinery Expansion Project (IREP) of BPCL Kochi Refinery aims to increase refining capacity from the present 9.5 MMTPA to 15.5 MMTPA. The IREP comprises CDU/VDU, DHDT, VGO-HDT, FCCU, DCU, associated utilities including CPP, Offsite facilities and revamping of existing Naphtha Hydro- Desulphurization (NHDS) and Semi-Regenerative Reformer (SRR) units. Engineering and procurement activities for the project are in progress. Major construction contracts have been awarded and construction activities are in progress.

- A Tail Gas Treating Unit (TGTU), using indigenous technology developed by EIL R&D, is being installed in the existing sulphur recovery unit of HPCL Vizag Refinery to achieve a recovery of 99.9%. Major ordering for the project has been completed.

- PMC services for implementation of 366 MW Captive Power Project (CPP) of IOCL''s 15 MMTPA Paradip Refinery Project. Construction is nearing completion and commissioning activities are progressing in full swing in the project.

- Wax Project of NRL envisages production of paraffin wax and Semi- micro-crystalline wax utilizing inherent properties of Assam Crude. Engineering and ordering activities have been completed and construction activities are in progress.

- EPCM Services for New Coke Chamber and Allied Modernization Facilities of IOCL, Barauni were awarded to EIL during the year. Process Package is under preparation. Engineering and procurement activities have commenced.

- EPCM Services for INDAdeptG Unit of IOCL, Guwahati was awarded during the year. Process and detailed engineering activities are in progress.

- Delayed Coker Unit and LPG CFC Treating Unit package for Resid Upgradation project of CPCL.

- DHDS de-bottlenecking Project at BPCL''s Mumbai Refinery was successfully commissioned during the year.

Petrochemicals

Significant progress has been made on the following petrochemical projects:

- Dahej Petrochemical Complex of ONGC Petro-additions Limited (OPaL) is being executed on PMC mode. The Project consists of 11,000 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE/HDPE swing, PP units and associated Utilities and Offsites. The Dual Feed Cracker (1.1 MTPY ethylene), HDPE & Butene units have been mechanically completed and other process units are in advanced stage of completion. The 220 KV Switchyard and raw water transportation facilities have already been commissioned.

- Assam Gas Cracker Project of Brahmaputra Cracker and Polymer Limited (BCPL), a grass-root petrochemical project is being executed by EIL on EPCM mode. The project comprises Gas Sweetening Unit, C2 Separation Unit, Gas Dehydration Unit, Ethylene Cracker, LLDPE/HDPE, PP and supporting Utilities, Offsites and Pipelines. Mechanical, Electrical and Instrumentation works are in advanced stage of completion. Availability of petrochemicals from the project will boost the development of plastic industry in the North-Eastern region of the country.

- GAIL Petrochemical Complex-II Project consists of Gas Sweetening and Gas Processing units at Vijaipur and Gas Cracker, Gas Processing, LLDPE/HDPE Swing, Butene 1 Units at Pata. The Project is in advanced stage of mechanical completion. Butene-1 unit at Pata has been commissioned. GSU at Vijaipur and LLDPE/HDPE, GPU-II, Furnaces of GCU at Pata have been mechanically completed.

- The Butadiene Extraction Unit (BDEU) of IOCL''s Panipat Naphtha Cracker Project (PNCP) was commissioned during the year. The Unit, with a capacity of 138,000 TPA, was executed on EPCM basis.

Strategic Storages

Recognizing the country''s dependence on imported oil and gas resources, Government of India (GoI) is implementing the Strategic Crude Oil Storage Programme for bolstering India''s energy security. The Strategic Storage programme envisages construction of crude oil storages in underground unlined rock caverns using the hydro- geological confinement technology.

Under Phase-I of Strategic Storage Program, EIL is providing Project Management Consultancy services to Indian Strategic Petroleum Reserves Ltd. (ISPRL) for construction of underground storages in Vishakhapatnam, Mangalore and Padur (Karnataka). During the year, significant progress has been achieved and construction is nearing completion at all the locations.

Metallurgy

The following key Metallurgy projects were completed during the year:

- Feasibility Report for Jhamarkotra Rock Phosphate Mine of Rajasthan State Mines & Minerals Limited (RSMML), Rajasthan.

- TEFR for Coal transportation options from Talabira II & III Mines to Aditya Aluminium Complex of Hindalco Industries Limited (HIL) at Lapanga, Odisha.

- Engineering Consultancy services for Boundary Wall & Storm Water Drainage System of Vedanta Aluminium Limited (VAL) at Jharsuguda, Odisha.

- Benchmarking study for Land, Power & Water for downstream industries in the proposed Aluminium Park of Odisha Industrial Infrastructure Development Corporation (IDCO) at Angul, Odisha.

- Fourth Stream Upgradation (from 0.525 MMTPA to 0.7 MMTPA) project of NALCO Alumina Refinery at Damanjodi.

- Engineering Consultancy services for Rectiformer Replacement of Hirakud Smelter of HIL.

Infrastructure

In the Infrastructure sector, EIL is providing various services such as Project Management, Third Party Inspection (TPI), Quality Assurance, Independent Engineer & Lender''s Engineer, Project Appraisal and project execution on ''Deposit Concept''.

Following major projects were secured by the Company in the Infrastructure sector during the year:

- Construction supervision services for housing projects in various cities of Gujarat for Gujarat Housing Board.

- PMC services for Central University of Punjab campus at Bhatinda.

- PMC Services for Das Temporary Accommodation EPC project for ADGAS at Das Island, Abu Dhabi.

- Audit and TPI services for construction of Integrated Check Posts for Land Ports Authority of India.

- PMC services for Ph-I extension work for NCR Biotech Science Cluster at Faridabad.

The following infrastructure projects were completed or are under advanced stage of completion during the year:

- Construction of Institutional & Examination buildings for Delhi University.

- Construction of EIL''s green office complex at Gurgaon and regional office at Chennai.

- Construction of Data Centre Complexes for UIDAI at Manesar & Bengaluru.

- Construction of Biotech Science cluster campus at Faridabad.

- Build, populate and operate National Data Repository (NDR) for Director General of Hydrocarbons (DGH).

Fertilizers

EIL is leveraging its capabilities and global network to tap the significant business opportunities presented by the fast growing fertilizer sector. By virtue of consistent efforts, your company has achieved considerable successes in this sector and is undertaking detailed engineering assignment for Indogulf Fertilizer for their revamp project of Ammonia and Urea plant at Jagdishpur. Construction assistance was also provided for successful execution of revamp schemes.

Capitalizing on the availability of cheap feedstock at strategic overseas locations for new fertilizer projects, EIL has bagged major projects abroad against stiff international competition. Details of these projects are covered under ''Overseas Assignments''.

Water and Waste Management

EIL prepared FEED Packages for implementation of facility to remove Sulphate from the injection water at Cairn''s Mangala Processing Facility at Barmer, Rajasthan. The facility is based on Nano Filtration followed by Reverse Osmosis technology.

Work on other assignments like Tertiary Treatment Reverse Osmosis Plant at Chennai for CMWSSB and Interceptor Sewer Project for the abatement of pollution in River Yamuna for Delhi Jal Board (DJB) is progressing well.

Power

The power sector continued to be a key growth area for EIL with the Company securing new business in Nuclear, Solar & Conventional Thermal Power projects.

- Nuclear

In Nuclear sector, EIL has been awarded a prestigious assignment by Nuclear Recycle Board, Bhabha Atomic Research Centre to seismically evaluate two clusters of buildings at Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam and re-qualify them for safe operation. In this project, a number of state-of-the-art technologies pertaining to seismic qualification are being implemented by EIL for the first time which includes seismic assessment of structures based on pushover analysis and probabilistic assessment of the structures using fragility curves.

EIL completed the Basic Engineering including HAZOP studies for the Greenfield Nuclear Fuel Complex at Kota, Rajasthan during the year. With the project having received Environmental clearance from MoEF & financial sanctions from Government, Detailed Engineering is being exepedited. This new complex will produce Natural Uranium Fuel bundles to cater to the fuelling requirements of new 700 MW Nuclear Power Plant being set up by Nuclear Power Corporation of India Limited (NPCIL).

The assignment from Heavy Water Board for carrying out Design Adequacy Re-Evaluation of Equipments, Structures and Piping systems of Heavy Water Plant, Manuguru has been completed by the Company.

Leveraging the Memorandum of Cooperation with NPCIL, EIL completed the assignments for Kudankulam Nuclear Power Project Units 3 & 4.

- Conventional Thermal Power

EIL is implementing a Captive Cogeneration Power Plant for the first time for IREP-Kochi. The project, being executed on EPCM mode, comprises 103.5 MW of power and 830 TPH of steam. During the year, the Company finalized the major orders for Gas Turbines, Utility Boilers and HRSGs while the remaining orders are under advanced stage of finalization.

BORL appointed EIL as PMC for 160 TPH Utility Boiler Package and substantial progress has been achieved on the same.

EIL prepared the DFR for setting up a high sulphur petroleum coke based Circulating Fluidized Bed Boiler technology Power Plant of 100 MW capacity for NRL.

- Solar/ Renewables

Engineering assignment for 1 x 125 MW Solar Thermal Power project of Reliance is nearing completion. In addition, add-on task orders for Engineering consultancy services for civil/structural design, Design & 3D modeling of interconnecting piping systems, preparation of IBR data package, Engineering of earthing/ lightning protection for Solar Block and Inspection & construction supervision services have been completed.

Engineering consultancy services for preparation of Detailed Project Report (DPR) for the Pilot project for Conversion of Sewage Gas into Compressed Biogas have been rendered to Swedish Energy Agency.

EIL continued to consolidate its footprint in the solar energy sector by commissioning a 90 kWp state-of-the-art solar photovoltaic system at the Company''s R&D complex in Gurgaon, Haryana. The 90 kWp grid-tie system is already operational and is interconnected to the existing electrical system in synchronization with the grid/ DG sets. Substantial saving in grid power consumption and reduction in diesel consumption has been achieved through this project. The solar PV system is designed to generate 126000 kWh per annum.

To further the green energy initiative and reinforce its credentials as an environment conscious corporate, solar PV systems have been installed at rooftops of three EIL owned buildings at Asiad Village, New Delhi. Your company is also entering into an SPV with other Oil majors for setting up solar power projects in India.

Overseas Assignments

EIL''s global expansion plans were bolstered during the year with the securing of following assignments:

- Configuration Study for proposed Grass-root Refinery Project in Angola for M/s Sonangol.

- Advance FEED Studies for Kuzey Marmara Fixed Offshore Platforms & Pipelines and Offshore Engineering & Consultancy Services of M/s TPAO, Turkey.

- FEED for New Gas Injection, Gas Lift, Oil Facilities for 7 (nos.) well head platforms in Upper Zakum facilities of Zakum Development Company (ZADCO), Abu Dhabi.

- PMC services for world''s largest single train Urea complex broadly consisting of 2300 MTPD Ammonia and 4000 MTPD Urea Unit along with associated Utilities and Offsite including Natural Gas Feed Pipeline ( 83 km long and 18” dia.) and Jetty facilities in Nigeria for M/s Indorama.

- PMC services for BCIC''s Shahjalal Fertilizer project (1000 MTPD Ammonia and 1760 MTPD Urea unit along with associated Utilities and Offsite) at Fenchuganj in Bangladesh.

- PMC services for PAU''s Ammonia complex consisting of 1900 MTPD Ammonia unit along with associated Utilities and Offsite including dispatch facility and Jetty at Luwuk in Indonesia.

The overseas projects completed during the year are as under:

- Design & Detailed Engineering Services contract with EPC contractor NPCC for Qusahwira Field Development (1.8 MMBOPD) project of ADCO, Abu Dhabi.

- FEED for New Gas Injection, Gas Lift, Oil Facilities for 7 (nos.) well head platforms in Upper Zakum facilities of Zakum Development Company (ZADCO), Abu Dhabi. The FEED documents and all related deliverables were delivered to ZADCO.

During the year, EIL achieved substantial progress in the following projects:

- Detailed Engineering & Procurement services for long lead items for Slops System Rehabilitation & Drains Upgrade at Umm Shaif Super Complex (USSC) of Abu Dhabi Marine Operating Company (ADMA-OPCO), Abu Dhabi.

- PMC services for Rehabilitation and Adaptation project of Skikda and Algiers Refineries of SONATRACH, Algeria. In both the Refineries, various processing units and associated utilities/offsites are being revamped and New Secondary Processing units are being added. As part of PMC contract, EIL has completed the Phase-I & II i.e. FEED and Technical evaluation of bids. Phase-III i.e. implementation and commissioning has been completed for Skikda which involved revamp of 15MMTPA refinery with addition of new units and facilities. For Algiers refinery, major civil works have been completed and mechanical works have commenced.

- PMC Services for Das Temporary Accommodation EPC project for ADGAS at Das Island, Abu Dhabi.

- PMC Services for EPC Phase of Habshan Acid Gas Flare Recovery project of GASCO, Abu Dhabi.

- PMC services for Pipeline projects of GASCO, Abu Dhabi.

- Development of Process Package for Bitumen Plant project of WIKA at Buton Island, Indonesia.

EIL has also been awarded PMC services for 20 MMTPA Refinery and 600,000 TPA Polypropylene plant by M/s Dangote Oil Refining Company in Nigeria. A contract of $139 Million to this effect which was initialed during the fiscal 2013-14 was concluded in the current financial year 2014-15. This is the single largest consultancy order received by your company.

Turnkey Projects

EIL is executing turnkey projects either on LSTK mode or on the ''Open Book Estimate (OBE)'' basis. Substantial progress was made in the following LSTK/OBE jobs during the year:

- EIL secured the LSTK contract for Delayed Coker Unit and LPG CFC Treating Unit package for Resid Upgradation project of CPCL, Chennai against stiff competition. Detailed Engineering and ordering activities are in progress with orders being placed for all major long lead items such as Fractionator Column, Coke Bridge Crane, Feed Pumps, Coke Crusher etc. Piling works have been completed while civil/structural works at site are progressing well.

- Mangalore Refinery Expansion Phase-III project of MRPL consists of 4 nos. OBE convertible to LSTK jobs viz., PFCC, SRU Block, PP and SPM facilities. PFCC Unit is in advanced stage of commissioning. SRU Train-I has been commissioned and the PP unit is in advanced stage of mechanical completion. The SPM facilities for offloading of VLCC tankers up to 3,00,000 DWT capacity were successfully commissioned during the year.

- South Jetty Pipeline project for loading/unloading of petroleum products and crude oil for IOCL Paradip Refinery, being executed on OBE mode has progressed well during the year.

- GSPC, as a part of Deen Dayal Field Development Project, is implementing an Onshore Gas Terminal (OGT) facility at Mallavaram in Andhra Pradesh. The project is being executed on OBE mode and consists of two trains of 100 MMSCFD each with GDU, GSU, DPDU, CSU, Sulphur Recovery unit and associated Utilities & Offsites. This year has witnessed significant progress with the erection of all equipment and completion of Piping, Electrical and Instrumentation works. Mechanical completion of Train-1 has been achieved. Major utilities have been commissioned and pre-commissioning and commissioning activities for the process units are in full swing.

- EIL is executing the Butene-1 Unit of PNCP on OBE basis. The 20,000 TPA capacity unit was mechanically completed ahead of contractual schedule. The unit has been successfully commissioned.

Performance of Divisions

Process Design & Development

The Process Design and Development Division of EIL continued its efforts to secure business from new clients besides serving various existing clients, both in India and overseas. Significant jobs undertaken by the Division during the year include the following:

- Residual and Detailed Engineering of Wax Production facilities of NRL.

- Residual and Detailed Engineering of a grass root Crude Distillation Unit (CDU-4) at BPCL''s Mumbai Refinery for 6 MMPTA crude processing capacity.

- Detailed Engineering activities for IREP Project of BPCL Kochi Refinery for expansion from a crude processing capacity of 9.5 MMTPA to 15.5 MMTPA as well as value addition of streams and bottom upgradation facilities.

- Basic and Detailed engineering for setting up Bitumen facilities from Bituminous Rocks for WIKA, Indonesia.

- Detailed Engineering of the DCU unit of CPCL''s Chennai Refinery as part of the EPC project activities.

- Detailed Engineering for INDAdeptG unit of 35KTPA capacity being set up at IOCL''s Guwahati Refinery with indigenous development in association with IOCL R&D.

- PMC services for BPA/BPB offshore facilities for ONGC.

- Capacity Expansion and configuration study for IOCL''s Panipat Refinery for additional crude processing and value addition from 15 MMPTA to 20 MMTPA.

- Techno Economic Feasibility study for Ethylene Derivative Project at IOCL''s Paradip Refinery to examine various possible options of monetizing the Ethylene from FCC off gases.

- Detailed Feasibility Report and pre-project activities for Licensor Selection for a state-of-the-art Refinery-cum-Petrochemical Complex at Barmer for HPCL. The refinery capacity is 9MMTPA, with maximization of Petrochemicals like Polypropylene and Polyethylene.

- Consultancy Service for Licensor Selection and Detailed Feasibility Study for Polybutadiene Rubber Project of GAIL & ONGC to be set up at Dahej, Gujarat. The project intends to utilize the 1-3 Butadiene produced from OPaL, Dahej and produce 110 KTPA Polybutadiene Rubber.

- Detailed Feasibility Report for production of Cumene/Phenol for GAIL by utilizing 50 KTPA Propylene produced at the company''s Pata Complex.

- Configuration Study and Detailed Feasibility Study Report for HPCL''s Mumbai Refinery for capacity expansion from 7.5MMPTA to about 9.5 MMPTA.

- Utilization of C4 streams from Panipat Naphtha Cracker Complex to produce MTBE, Butene 1, MMA and PMMA.

- Configuration Study and Capacity Expansion study for BPCL''s Mumbai Refinery for enhancement of crude processing from 12 MMTPA to 14MMTPA.

- Detailed Feasibility Report for 6 MMTPA expansion of NRL for 100% Sour Crude Processing.

- Due diligence study for NOCL''s Cuddalore Refinery for ONGC & IOCL.

- Detailed Feasibility Report for Capacity Expansion of IOCL''s Gujarat Refinery from a crude processing capacity of 13.7 MMTPA to 18 MMTPA.

- Feasibility Study for Assessment of Land, Power and Water requirement for Coal to Liquid Projects for IPCOL, Odisha.

- Detailed Feasibility Study for Low Cost Expansion of BORL''s Bina Refinery for additional crude processing capacity.

- Site activities related to process for enabling completion of the facilities at GAIL''s Petrochemical Complex at Vijaipur & Pata sites, BCPL''s Petrochemical sites at Duliajan and Lepetkata, GSPC''s Kakinada facilities for Gas processing and MRPL''s PFCC facilities.

- Techno Economic Study for Gulf Petrochem for setting up a Bitumen Refinery at Fujairah.

- FEED preparation for Revamp of Unmanned Platform Phase II for ONGC.

- Configuration study for setting up a Grass root Refinery in Angola for M/s Sonangol.

- Commissioning of Sulfur Recovery Unit of 185 TPD sulfur capacity as well as the 3 MMTPA Delayed Coker Unit for MRPL.

- Commissioning of Butene-1 unit of 20,000 TPA capacity at Pata for GAIL.

- Commissioning of Butadiene Extraction Unit at IOCL''s Naphtha Cracker Complex.

- Commissioning of the revamp of Propane Deasphalting Unit of HPCL''s Mumbai Refinery.

Engineering

The Engineering Division of EIL continued its efforts towards providing optimized and value added services for all ongoing projects consistent with the growth objectives of the Company. In continuous focus were the areas of System Improvement, Repeatability of Design, Enhanced 3D modeling applications and overall implementation of Electronic data management system and improved information exchange and communication systems. Major emphasis was laid on Automation and Standardization of systems, implementation of Internal Audit and Monitoring, updation of specifications standards and guides. In pursuit of its motto of continuous innovation, the Division implemented a number of new concepts & technologies for the first time which are mentioned as under:

- Engineering for procurement of major Packaged Equipment items in Russian design buildings for 2 x 1000 MW – Unit 3 & 4 of Kudankulam Nuclear Power Project of NPCIL.

- Development of mechanized material handling/automation schemes and layouts for Fuel Fabrication Facility (500 TPY capacity) for Pressurized Heavy Water Reactors being set up at Kota (Rajasthan) by Nuclear Fuel Complex.

- Conceptualization, design, engineering and execution of largest Product Ware House (of 88000 MT capacity) based on in-house experience, for OPaL, Dahej.

- Conceptualization, design, engineering and layout preparation involving non conventional concept carried out, based on client''s Pilot model plant, for production of Bitumen from Buton Asphaltic Rock (BAR) for WIKA- Indonesia.

- Engineering for procurement of 3 x 2 MWe, 3 X 1.5 MWe and 5 x 1 MWe Crude Oil Engine based Generating sets for OIL for Naharkatia-Barauni Pipeline Project.

- Engineering for procurement of Mainline/Booster centrifugal pumps and reciprocating restart/rocking pumps for challenging crude oil having gelling tendency for Naharkatia-Barauni Pipeline Project.

- Preparation of Bid Package for Enhanced Oil Recovery (EOR) Project based on Polymer Flooding of oil wells including polymer solution preparation, transportation, injection facilities for M/s Cairn Energy.

- Engineering for procurement of Hot Gas Power Recovery Expander Generator of about 13 MWe rating, handling hot flue gases at around 760 °C for FCC Unit of IREP, BPCL Kochi Refinery, thereby recovering the energy of hot gases.

- Engineering for procurement of Hydraulic Power Recovery Turbines in BPCL IREP Project, based on the payback analysis.

- Development of Design Basis Reports for NFC-Kota Composite facility for PHWR Fuel Fabrication Facility & TPY Zircaloy Fabrication Facility at Rawatbhata, Rajasthan.

- Radiation Protection System for Nuclear Fuel Complex-Kota. Various monitoring techniques such as External Radiation Monitor (Survey Meters), Airborne Radioactivity Monitoring, Thermo Luminescent Dosimeters (TLDs), Uranium Lung Burden Estimation Machine, Bio Assay & Hand and foot monitors developed for the plant.

- Application of Wireless Technology for monitoring of various parameters for IREP (Kochi) and BORL Utility Boilers. Wireless Instruments considered for the Pump seal plan instruments, vibration/accelerometers and wireless transmitters for Utility Boiler/ ETP plant.

- Application of Tunable diode laser absorption spectroscopy for O2 measurement in CDU/VDU heaters at BPCL, Mumbai.

- In-house development of concepts of Modular Pipe Rack, Pre-cast and Prefabricated structure usage and repeatability of Modular Design.

- Rationalization study and development of optimized equipment layout for CDU-4 Project of BPCL taking into account stringent requirements of space and access for construction.

Heat and Mass Transfer

The Heat and Mass Transfer Division (HMTD) provided thermal/ hydraulic mechanical designs for Fired Heaters, Cast /Glass Air Preheaters, Mass Transfer Systems (column trays/packing etc.), Waste Heat Recovery Equipments and Ejectors in addition to thermal design of Heat Exchangers & Air Coolers for various projects including BPCL- IREP, BPCL CDU-4, CPCL-DCU etc.

Further, Utility Boilers and Heat Recovery Steam Generator (HRSG) related services were also offered for various on- going projects.

The Division undertook many jobs where various innovative/value added specialist services like feasibility studies, troubleshooting were provided. Some of the key achievements are as follows:

- Desalter Development

Considering the limited vendor availability and performance issues faced by the refinery clients, EIL in association with BPCL-R&D is in the process of in-house development of Desalter technology as a CHT sponsored initiative. A prototype facility for the purpose of refinery site testing and actual performance evaluation with the operating crudes currently being processed by BPCL has been conceptualized and the engineering activities for the same are underway.

- INDAdeptG Process

INDAdeptG process has been developed jointly by EIL & IOCL-R&D as a part of technology development activity. Initially proposed to be a demonstration unit, it has now been converted into a full-fledged refinery scale commercial unit. In this, the Desulphurization section basic & detailed design has been carried out by HMTD. The purpose of Desulphurization section is to reduce the SOX content in the Reactor off gases so that same can be circulated back to the reactor-regenerator circuit.

- Heater-Treater System

Considering the performance related issues in the current design of Heater-Treater in ONGC''s Western On-shore facilities due to increase in water cut in the well fluid, ONGC awarded a job to HMTD for developing the design of new Heater-Treater.

The intention is to develop a common Heater-Treater design with improved performance, which can be universally used at their various installations in Western On-shore facilities.

- HMTD provided services to IOCL, Haldia for carrying out detailed study for the revamp of CDU-II and VDU-II heaters to achieve the targeted enhanced duty and improved performance. The study involved examination of various heater components and evaluation of the feasibility of replacement with existing constraints including interaction with the burner suppliers in order to meet the challenging shutdown requirements in a fast and reliable manner.

The job also included the preparation of complete Basic Design and Engineering Package and Tender for Execution / Implementation of modifications.

- Agreement with M/s Kamal Engineering renewed for another 5 years. HMTD provided design back-up services to licensee for various Cast / Glass Air preheaters with large magnitude of heat duty including CDU, VDU, VGO-HDT & DCU for BPCL IREP, CDU & VDU for BPCL CDU-4, DCU for CPCL etc. Further, HMTD has initiated development/up-gradation of APH design software with new design feature & flexibility for better optimization.

- As part of the DHDS Debottlenecking Project for BPCL Mumbai which had a tight schedule, HMTD carried out the study for DHDS Heater for increased duty & performance suggesting modifications, prepared all engineering documents and procurement specifications, conducted site check listing enabling the critical modifications to be completed within the limited shutdown period.

- HMTD provided services to IOCL Panipat for complete rebuilding of the OHCU vacuum furnace which had suffered extensive damage due to fire in 2012. The job included residual engineering, procurement of major components like burners, pressure parts, and tender for site work.

Project Services – Costing

Costing Division provides services such as preparation of capital cost estimates and financial / economic analysis in diverse activities ranging from technology selection to preparation of feasibility reports and option study estimates for investment decisions. It provides assistance during price negotiation, cost monitoring and control during execution of projects under conventional and LSTK mode of execution. It also prepares cost estimates for bidding as EPC contractor. The vast database and capabilities help in providing valuable support for bid evaluation and award of major contracts as well as in providing effective cost control services.

Project Services - Planning

Planning Division continued to provide critical planning services to various projects. Using state-of-the-art tools and its database, the division caters to diverse project execution roles of the Company viz. EPCM, PMC, LSTK/OBE.

Planning Division utilizes Primavera, PERT Master and various in-house software packages for project planning, scheduling, monitoring, project risk management and material control activities both at Head Office and various project sites. Apart from providing services for all the projects undertaken by EIL, the Division continued to provide project monitoring services to Ministry of Petroleum and Natural Gas, Government of India.

Procurement Services

Procurement Services Division of EIL provides end-to-end Supply Chain Management services towards procurement of goods, services and works for projects executed by EIL for various clients globally as a consultant as well as a contractor, besides various in-house requirements. Procurement Services Division provides services which include registration and maintenance of a dynamic list of capable suppliers and construction contractors globally, handling contracting and purchasing function from issue of an enquiry to placement of an order, inspection, expediting and logistics services for deliveries up to construction sites.

The Division through its effective and efficient procurement processes & established procedures has been delivering the supplies, services and works of specified quality within the specified time at the most competitive prices in a fair, equitable & transparent manner, thereby aiding successful project execution by EIL.

Procurement Services Division''s thrust on implementation of newer technologies has made all procurement functions and activities IT enabled- from the receipt of the requisition to order placement, Inspection, Dispatch and Transportation through its integrated in- house EDMS applications linking all procurement functions across various geographical locations that has resulted in enhanced efficiency and effectiveness of procurement.

The Division has a vast expertise in global procurement through knowledge based manpower, procedures, guidelines and policies ably supported by an extensive data base with vast information on global suppliers and contractors from all over the world.

During the current year, orders for Rs. 700 crores of direct purchases and contracts were placed on suppliers / contractors globally for various OBE / LSTK/ Depository projects. In addition, orders for Rs. 9850 crores were placed for various other clients'' projects.

EIL has implemented the Public Procurement Policy (PPP)-2012 for Micro and Small Enterprises. During the current year, EIL procured around Rs. 39.94 crores of goods from micro and small enterprises which is around 12.97% of the total value of direct purchase orders for goods placed by EIL (and around 4.64% of the total value of Purchase order for goods and contracts for works). EIL is committed to enhancing the procurement from MSE enterprises through generation of awareness and participation of capable MSE vendors in EIL procurement. Procurement Services Division has been instrumental in registration of MSE suppliers to enhance procurement as per PPP - 2012 and has been organising and participating in seminars to promote the MSME policy of Government of India. EIL also participated in the two-day event on National Vendor Development Programme-cum-Exhibition at MSME Development Institute, Okhla, Delhi to support development of MSE enterprises and generate awareness regarding policies and systems for vendor registration in EIL.

Procurement Services Division carried out in-process and pre-dispatch inspection of critical equipment at suppliers'' works as well as Project sites through its Regional Procurement Offices located all over the country and overseas offices located in London, Shanghai and Milan. Major items inspected included High pressure CTL - Coal Gasification pilot plant developed and supplied indigenously by M/s Thermax, Pune for EIL R&D plant, Crude Column reflux drum (19.1 mtr x 6.1 mtr, 80 MT), Flare knock out Drum (15.7 mtr x 6.1 mtr,63 MT), HP Air receivers (21.16 mtr x 6.4 mtr, 213 MT), Pre Flash Drum (36.01 mtr x 6.5 mtr, 148 MT) for BPCL Kochi Project among many other large sized equipment. It was for the first time ever that ODC packages of these sizes (in sections) were transported from Kochi port to site by road through busy city area with usual encumbrances viz., Electrical/Telephone lines etc.

Enlarging database for capable suppliers and contractors has always been the effort of the Division. Suppliers and Contractors located worldwide apply through online system available on 24 X 7 basis on EIL website. With an objective to make the system more transparent, effective and paperless, the process of enlistment of contractors, starting from application to final approval, has been made online. Similar efforts are under progress for suppliers'' enlistment. New methodology to monitor supplier performance based on parameters like quality, deviations, site complaints, timely deliveries and resources available, has also been implemented in the system.

Construction

Construction Division continued to provide Construction Management Services for various clients at 39 diverse domestic project locations and 8 overseas locations. The Division offers services for total Construction Management including Contract Administration, Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse Management for projects in Petrochemicals, Refineries, Cross-country pipelines, Gas Processing Complexes, LNG Terminals, Non-ferrous Metallurgy and Offshore industry.

Concurrent prestigious commitments for the Division include MRPL Phase-III, OPaL Petrochemicals at Dahej, BCPL Lepetkata, OGT- GSPC Kakinada, Wax project at Numaligarh for NRL, Integrated Refinery Expansion Project at Kochi for BPCL, CDU-4 project in Mumbai for BPCL, PMC services for Mangala Field Development project for Cairn Energy at Barmer, Petrochemical project of GAIL at Pata & Vijaipur etc.

Construction activities commenced for the following new domestic projects during the year:

- DCU project of CPCL, Chennai

- Naharkatiya – Barauni Crude Oil Pipeline (NBPS) project of OIL, Assam

- Utility Boiler project of BORL, Bina

- Implementation of Safety Measurement (ISM) project of OIL, Assam

- Condensate Handling project of GAIL, Gandhar

The highly skilled & motivated EIL construction team with impeccable track record has been instrumental in establishing and monitoring adherence of construction Quality Management System comprising Quality Plans, Inspection Test Plans including record keeping, monitoring special processes for concreting, welding involving latest NDT techniques, digital radiography, ultrasonic test, etc during all phases of construction to ensure trouble free commissioning/ operation of critical units.

A notable achievement of the Division during the year was the Mechanical Completion of Butene-1 at Panipat ahead of schedule. Major units, offsite and utilities were completed for MRPL Phase-III project, OGT Project at Kakinada and Petrochemical Complex-II project at Pata and Vijaipur.

The Construction Division has introduced many innovative measures for improvisation of construction activities as mentioned below:

- Adopting new construction techniques such as Hanger type of scaffolding (Positive Isolation), grade segregation of pipe rack, use of Temporary Stairway (DOKAS), close proximity/Digital NDT, bolted structures - welding at shop and bolting at site, modular shuttering etc.

- Introduction of software for construction management.

- Making mandatory and proper constructability study for ease of execution.

- Revision of payment terms.

EIL attaches highest importance to HSE policy in execution of all its projects and achieved following accolades:

- 65 million LTA free man hours at Gas Cracker of Project of BCPL

- 14 million LTA free man hours at Strategic Storage Project of ISPRL, Padur

- 10 million LTA free man hours at IREP project of BPCL

Plant Operation and Safety

The Plant Operation and Safety Division (POSD) of EIL provided the following services during the year:

- Process design for Offsite Facilities of Refineries, Petrochemicals, Gas Processing Units, Oil Terminals, Onshore Terminals, Topsides of Strategic Storages (underground caverns), Cross Country Pipelines, LNG Terminals, etc.

- Safety related studies like Hazard and Operability Study (HAZOP), Hazard Identification (HAZID), Risk Analysis & Quantitative Risk Analysis (QRA), Safety Integrity Level (SIL), Safety Audits, Safety Reviews and Emergency Planning.

- Pre-commissioning & commissioning of process plants, Utilities & Offsites in refineries, petrochemical and gas processing areas, terminals of crude oil, product and LNG and pipelines, etc., including total responsibility for LSTK projects and Operating Manuals preparation.

The following major assignments were completed/were in progress during the year:

- Feed package for Butadiene Mix Export Project, Equate Petrochemical Kuwait.

- Process Design for offsite facilities of Dangote Refinery, Nigeria.

- Process Package for LNG terminal at Gangavaram for Petronet LNG Limited.

- Process Package of additional LNG tankage for Shell Hazira Pvt. Ltd., Hazira.

- PMC services to Cairn Energy for Capacity Enhancement of Mangala Processing Terminal at Barmer.

- Process Design of offsites facilities for GAIL Petrochemical-II project at Pata & Vijaipur.

- Process Package for offsites facilities of IREP Project of BPCL, Kochi.

- PMC services for GASCO pipelines Yasmina, Arkaan, Fertil, Shuweit-III.

- Process Package for Mehsana-Bhatinda Pipeline of GSPL India Gasnet Limited.

- Process Package for Revamp of Pump stations, terminal and other facilities of the Naharkatiya-Barauni Pipeline of OIL.

- Process Package for Dahbol-Bangalore Phase-II Pipeline of GAIL.

- PMC services for Topside facilities for Strategic Storage of Crude Oil at Padur, Mangalore & Vishakhapatnam for ISPRL.

- Process Package for design of Vapor Recovery System of IREP Project of BPCL, Kochi based on in house development capabilities.

The Division has successfully executed the following major pre- commissioning & commissioning assignments during the year:

- SRU Train-I of MRPL Ph-III project.

- DCU/CHTU/Utilities and Offsite facilities of MRPL Ph-III project.

- Butene-1 Plant of GAIL Petrochemical-II project at Pata.

- Butadiene Extraction unit & Offsite facilities of IOCL, Panipat.

- PDA Revamp of HPCL, Mumbai.

- SPM and associated onshore and offshore facilities at Mangalore.

- Dabhol-Bangalore Phase-I Pipeline of GAIL.

- Vijaipur-Boreri loop section of Vijaipur-Kota pipeline of GAIL.

- Chainsa & Kailaras Compressor stations of Vijaipur-Dadri pipeline of GAIL.

- LNG Terminal at Dabhol of Ratnagiri Gas and Power Private Limited.

- Rich and Lean Gas Pipeline of Brahmaputra Cracker & Polymer Ltd., Duliajan.

- Augmentation of Kota – Piyala section of Mumbai-Brijwasan Pipeline.

- Vijaipur-Kota Pipeline of GAIL.

- Butene-1 plant of IOCL, Panipat.

The following pre-commissioning/commissioning activities were under progress during the year:

- SRU Train –II/III of MRPL Ph-III project.

- PFCC of MRPL Ph-III project.

- Gas Cracker Project of Brahmaputra Cracker & Polymer Ltd. at Lepetkata.

- Gas Dehydration Unit of Brahmaputra Cracker & Polymer Ltd. at Duliajan.

- Onshore Gas Terminal of Gujarat State Petroleum Corporation at Kakinada.

- GAIL Petrochemical -II project at Pata and Vijaipur.

- DDW1 & PLQP of Gas Terminal of Gujarat State Petroleum Corporation at Kakinada.

- EPC-1/2/3 of Mangala Processing Terminal for Cairn Energy.

- LNG Terminal of SONATRACH, Algeria.

- Acid Gas Recovery Project of GASCO, Abu Dhabi.

The Division continued its efforts in securing new business in both domestic and overseas markets and undertook following major studies during the year:

Quantitative Risk Analysis (QRA) for;

- Indian Oil Corporation Limited, Haldia Refinery.

- Hindustan Petroleum Corporation Limited, Vizag Refinery.

- Bharat Petroleum Corporation Limited, Kochi Refinery.

- Indian Oil Corporation Limited, Mathura Refinery. Rapid Risk Analysis (RRA) for;

- M11 project of Indian Oil Corporation Limited, Mathura Refinery.

- Storage tanks at Calico Plot of Hindustan Petroleum Corporation Limited, Mumbai Refinery.

HAZOP studies were done for;

- Various units of Indian Oil Corporation Limited, Mathura Refinery.

- Slop cut system for Hindustan Petroleum Corporation Limited, Vizag Refinery.

- Flue Gas Duct-II Integration for Hindustan Petroleum Corporation Limited, Vizag Refinery.

- CDU-4 project of Bharat Petroleum Corporation Limited, Mumbai Refinery.

- All the units, offsite & utilities for Integrated Refinery Expansion Project (IREP) of Bharat Petroleum Corporation Limited, Kochi.

- Revalidation study for BAPCO Refinery, Bahrain.

- Consultancy services for ICS Scenarios Risk Modeling for BAPCO Refinery, Bahrain.

- Preparation of Training Module for LPG safety, SO2 Risk, FLEXA Incidents and COMAH Safety case study for BAPCO Refinery, Bahrain.

- Pre Start up Safety Review of Coal Gasification Plant for Jindal Steel and Power Limited.

- Safety Audit of DRI unit of Jindal Steel and Power Limited.

New business initiatives like O&M services to industry are in progress:

- Upkeep and Maintenance of DFCU & AU plant of OPaL, Dahej.

- Technical Services Assistance for Skikda Refinery of SONATRACH, Algeria.

Environmental Engineering

In India, the regulatory requirements in terms of Environmental protection are quite stringent. By any benchmark, India has an extensive environmental management system with a comprehensive set of environmental laws, specific statutory mandates, regulatory instruments, and institutional frameworks to implement and enforce environmental policy objectives.

In line with its commitment to environment protection, EIL saw the deployment of state–of-the-art technologies in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements, control of volatile organic compounds, hazardous and solid waste management, technologies for recovery of oil from oily sludge and treatment of oily sludge using bioremediation process, opting energy efficient processes and treatment system as part of its key accomplishments during the year. The Company continued its progress in the field of Water & Waste Water Treatment Plants, Environmental Impact Assessment (EIA), Environment Health Safety Assessment, Feasibility and other Environmental Studies, which proudly reflect the strength of EIL in this arena.

EIL has been accredited by Quality Council of India (QCI) for carrying out EIA studies and preparation of Environmental Management Plan (EMP) for new projects in hydrocarbon and related sectors. A comprehensive and detailed EIA study helps in accurately predicting & assessing the environmental & socio-economical impacts of the proposed new facilities. EIL also carries out Environment Health Risk Assessment study for its clients, which helps in tracing the impact of various pollutants on health of the people in the vicinity of the plant.

The Company has taken some major steps for the enhancement of biodiversity in its R&D Complex at Gurgaon spreading over 21 acres. An in-house study was undertaken to assess and improve the existing biodiversity through plantation development. Moreover, an additional plantation drive of 22,500 individuals was carried out adding 42 new species to the present plant diversity.

EIL is dedicated to preserving the long-term health, function, and viability of the natural environments. Some of the major achievements of Environment Division include the following:

- Accreditation by Quality Council of India (QCI) for carrying out EIA studies in 11 sectors (Mining of minerals - Open Cast; Thermal Power Plant; Metallurgical Industry - Non-ferrous; Petroleum Refining Industry; Chemical Fertilizers; Petrochemical Complexes; Oil & Gas Transport Pipelines; Airports; Treatment, Storage and Disposal facility (TSDF); Ports and Harbours; Township and Area Development Projects).

- Commissioning of effluents recycle plant for MRPL Phase-III Expansion to reclaim water from refinery liquid effluents.

- Implementation of water block packages including effluent recycle concept for IREP Project of BPCL''s Kochi Refinery.

- Consultancy services to Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB) for tertiary treatment of secondary treated municipal sewage and reuse as industrial water supply.

- Awarded consultancy services by Kuwait National Petroleum Company (KNPC) for selection of technically most viable process for installation of new oily sludge handling facilities at their Mina Al- Ahmadi Refinery, Kuwait.

- Adopted Ultra Filtration Membrane based raw water treatment plant for OPaL''s Dahej Petrochemical Complex minimizing project execution time & cost.

- Received environmental clearance from Ministry of Environment & Forests (MoEF) for BPCL Mumbai Refinery''s new CDU/VDU projects and Catalytic Cracking Reformer project. Additionally, carried out EIA studies for Indian Navy''s Project Sea Bird Phase-II facilities, Expansion of BORL refinery by debottlenecking project, Expansion of Mathura refinery of IOCL, new Dimer unit and GT-IV projects for IOCL Mathura Refinery, etc.

- PMC services for Nuclear Fuel Complex at Kota including management of both active and non-active liquid & solid waste from the complex.

- Estimation of carbon foot print for EIL''s head office, branch office, regional offices, regional procurement offices and major site offices using in-house developed software.

- Development of knowhow in control of Volatile Organic Compounds (VOCs) and offering services to IREP Project of BPCL''s Kochi Refinery.

- Development of knowhow in conservation and enhancement of biodiversity and offering services to OGT Complex of GSPC at Kakinada.

Over a period of time, the ambit of environment activities in EIL has widened. Strict environment norms, growing awareness about environment among people have given an impetus to environment friendly technology and solutions. Today, our clients are looking for answers to environmental problems being faced not only during design phase but also during operation of the plants.

Research & Development

EIL has endeavored to foster the spirit of innovation and creativity in the organization to continuously better the quality of its services to the clients by providing value addition and leveraging technological advances. Research and Development (R&D) Division has played a significant role in achieving this objective by contributing in the consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related services. R&D Division is pursuing developmental activities, both in house and in collaboration with academic institutes, other R&D organizations like IOCL-R&D, IIP, BPCL (R&D), and cooperating with small companies to promote the creative ideas generated by them.

During the year, the Division has undertaken the following initiatives for development of new capabilities and up-gradation & commercialization of existing capabilities:

Initiatives for strengthening technology tie-ups

- Renewal of membership of Process Science Technology Center (PSTC), an industry-academia collaborative research program initiated by University of Texas, USA.

- Renewal of membership of Fractionation Research Incorporated (FRI), a non-profit cooperative research organization based at Oklahoma, USA.

- Renewal of membership of Process Integration Research Consortium(PIRC) of University of Manchester, UK.

- 3-Year Maintenance contract for Computational Fluid Dynamics (CFD) facilities signed and latest version of the software ANSYS FLUENT release 15 installed on the dedicated workstations at R&D CFD facility.

Technology development projects

A number of projects were initiated for development of:

- High level oxygen enrichment process to enhance SRU capacity by 200%.

- Generic mathematical model of fluidized bed gasifier for processing coal, high ash coal and mixture of coal and petcoke for the purpose of validation of data to be generated in the pilot gasifier being setup at EIL-R&D.

- High capacity trays for enhancing capacity of existing column and aiming at reduced down time incorporating innovative construction features.

- Advanced versions of PARLPACK structured packing for improved performance. Three versions of packings are being tested.

- Desalter design technology in association with BPCL (R&D). The project is funded by Centre for High Technology (CHT).

- Improved hardware and process design for CFC based LPG treating units. The design will lead to increased throughput, better distribution and easy maintenance.

- Gas Membrane Technology for H2 recovery from refinery off-gases.

- Gasifier pilot plant and operation of HPTGA and development of coal combustion kinetics under Coal To Liquid (CTL) Project.

- User interface for in-house developed software ARUSIM used for BTX extraction.

- CFD modelling services extended to Nuclear Power sector through a simulation for client NFC, Hyderabad. CFD modelling used in troubleshooting assignments for M/s NALCO & HPCL Vizag as also in the development of Feed Inlet Device jointly with M/s Kevin.

Technology commercialization

- Initiative taken for benchmarking of EIL technologies.

- Techno-commercial proposal submitted to NRL for Crude Distillation Unit (CDU) Preheat Train Optimization using Pinch technology. The proposal was accepted and job has been awarded to EIL-R&D.

- Based on the in-house capability developed, Company secured two jobs for minimization of fresh water usage and waste water generation using pinch technology at Gujarat and Guwahati refineries. Draft study report to Guwahati Refinery has been submitted and work is nearing completion for Gujarat Refinery.

- Based on Dynamic Simulation Capability Developed, a job has been secured to carry out Study for Up-gradation of Anti Surge Valve for Propane Compressor of Train 1 & 2 of ADGAS LNG plant at Das Island, Abu Dhabi.

- Co-operation Agreement with M/s Kevin Enterprises on joint development of High capacity trays and packings has started yielding positive outcomes and the following two orders have been received:

- Supply of structured packings (PARLPAK) for application in Vacuum Column for IREP Project of BPCL Kochi.

- Application of PARLPACK in Quench Column (65-C-301/401, 79- C-401) and Amine Absorber Column (65-C-02/402, 79-C-402) of TGTU of HPCL-Vizag.

- Development of process package for implementation of Tail Gas Treating process and Oxyenrich process at HPCL-Mumbai Refinery.

- Detailed feasibility report of Oxyenrich process at BORL-SRU for 135% capacity enhancement.

- EIL has continued to demonstrate the designing capabilities by successful commissioning of CFC technology - based LPG treating units. Three more LPG treating units (two units at MRPL, Mangalore and a unit at AOD, Digboi) have been commissioned based on this technology.

- Value engineering for reduction of cost of setting up demonstration unit at Guwahati Refinery for INDADEPT technology developed jointly by IOCL and EIL for deep desulphurization of gasoline.

Patents filed/granted

Based on innovative work done, the Division has filed one patent entitled "High level capacity enhancement of Sulphur recovery plant” while 3 other patents listed below and filed earlier have been granted:

- Device for measurement of flow rate of over flash liquid in crude distillation columns.

- An Adsorbent composition, a process for the preparation thereof and a process for removal of Hydrogen Sulphide impurities from a gaseous feed stock.

- Fluid Interface level measurement device.

Specialist Materials and Maintenance Services

Specialist Materials and Maintenance Services (SMMS) Division of EIL continued to provide specialist services to the various in-house projects and clients in Petroleum, Petrochemical, Metallurgical, Nuclear and Infrastructure sectors in India and abroad during the year. Some of the important activities are:

- Health Study of Cargo Service Pipeline at Jetty No. 4, Mumbai Port Trust, Jawahar Deep, Mumbai.

- Study of Impact of High CO2 from BH Well on Mangla Facilities, Cairn Energy, Barmer.

- Refractory Consultancy Services for TA 2014, Mangalore Chemicals and Fertilizers Limited, Mangalore.

- Expert Services during Refractory Procurement and Repair, MCF, Mangalore.

- Expert Services during Refractory Procurement & Repair, Indo Gulf Fertilizer, Amethi.

- Expert services for refractory lining of Cracker Furnaces of GAIL Pata, by API 936 qualified refractory personnel to Petron Engg., Mumbai.

- PMC Services for Intelligent Pigging of Usargarh-Dabhol Section of DPPL, GAIL, Mumbai.

- Health Study of Five Pipelines from Pir Pau to Jawahar Deep, Mumbai Port Trust, Mumbai.

- Technical Advisory Services to HPCL Vizag, Numaligarh Refinery Limited and various refineries of IOCL.

- Material Selection for equipment, piping and pipelines for various on-going projects viz., Opal, BCPL, Nuclear Fuel Complex , GSPC, BPCL Mumbai and IREP of BPCL, Kochi.

- SMMS has been advising and specifying on the Corrosion Monitoring Systems, Inhibitor Injection Systems, Corrosion Protection Coatings, Cathodic Protection Systems for On-shore and Off-shore pipelines and Chemical Cleaning Systems for new plants.

- SMMS has been actively involved in evaluating newer materials, fabrication and inspection techniques for the benefit of industries and have also contributed to the National and International Standardization bodies like BIS and ISO.

Information Technology Services

Information Technology Services (ITS) Division of EIL continued to provide state-of-the-art IT enabled services to EIL''s main stream activities by developing/implementing leading IT solutions with an aim to deliver better quality services with increased efficiency at reduced costs. Using new IT Technologies, various new initiatives were taken during the year and the details of which are as follows:

- MSME implementation

Various Engineering and Procurement software systems have been customized to implement Public Procurement Policy-2012 of GOI for Micro and Small Enterprises.

- Integrated Online system for General Civil Design and Engineering activities

Integrated online software GCEDS (General Civil Engineering Design Solution) for various General Civil Engineering activities has been developed and implemented. This system includes Dyke sizing of Tank-Farms (Pre-feasibility, Detailed engineering or Adequacy stage), Design of Rigid Pavement (Roads), Fire Water Demand Calculation, Process datasheet and MTO for various general civil standard items. The GCEDS software will also ensure uniformity in deliverables, reduction in efforts, elimination of errors, creation of a data bank, accuracy and increased reliability.

- Integrated Online system for Structural Design and Engineering activities

Integrated on-line software STEDS (Structural Engineering Design Solution) for various Structural Engineering activities has been developed and implemented. This system includes Pipe Rack Load calculation (General, Wind and Seismic) and Base Plate Design (Fixed and Hinged type for 4/6/8"bolt configuration). The STEDS software will also ensure uniformity in deliverables, reduction in efforts, elimination of errors, creation of a data bank, accuracy and increased reliability.

- Environment Services System (ESS)

An On-line system has been developed for Environment Division to facilitate collection of Effluent (Liquid) data and preparation of Effluent Summary of Plant, Generation of ETP process datasheet and Creation of Equipment List.

- Concession and Deviation System

An On-line Concession Deviation system has been developed through which deviations sought by the Suppliers/Contractors shall be entered On-line and resolution will be provided On-line by EIL. The system is being used effectively for various current projects.

- Intelligent Design Basis (IDB)

A collaborative web based system has been developed for preparing design basis of process and other engineering disciplines. The system facilitates multi disciplinary inputs and reviews by internal divisions of EIL and clients. Library of standard design basis helps to standardise the knowledge learnt from earlier projects and re-use it for the new projects. The software is currently being used to develop design basis for Dangote Refinery, Nigeria and Rajasthan Refinery, Barmer.

- Enhancements in eDMS system : Supplier / Contractor Document Submission system

EIL has been using electronic Document Management System (eDMS) for effective management of its project documents. Based on the usage and feedback, various improvements have been made in the system during the year with primary focus being improvement of system for document exchange with its suppliers and contractors for reducing overall document review cycle time.

As a part of the improvements, a web based Help Desk has also been implemented for the suppliers/contractors, for obtaining support from EIL IT team in case of any difficulty in usage of the document exchange system. Training programs were conducted for the suppliers/contractors for effective usage of the system.

- Online Supplier/Contractor Enlistment System

Online Supplier/Contractor Enlistment System is a workflow based web application to facilitate suppliers/contractors to get them enlisted online with EIL. Suppliers/Contractors can also report enhancement and revalidation of their experience/capabilities in the enlisted items/trade categories and send online request along with supportive soft copy of documents. Applications from suppliers/contractors along with supporting documents are received by Procurement Development Department (PDD) through the system which are then forwarded to Engineering/ Inspection Departments for further processing/verification and enlistment. The software provides online technical query management and email alerts to/from Suppliers/Contractors for clarifications.

- Implementation of IT infrastructure and LAN system at new EIL complexes in Gurgaon and Chennai

Presently, Local Area networks (LAN) are under implementation at EIL, Gurgaon (partly in operation) and EIL, Chennai. These LANs are being implemented in high-available configuration and using best- in-class equipments to provide uninterrupted high-speed network connectivity to more than 2000 employees.

As a part of the business continuity plan implementation, currently a state-of-the-art Data Centre is under construction at EIL, Chennai. This will act as the Disaster Recovery Data Centre for EIL and will ensure availability of IT facility to support continuance of EIL''s business operation, in case of any disaster at its primary location.

- System Automation

- New web-based Vendor Accounting System featuring an array of facilities as per business needs has been implemented during the year.

- New features added in Client Billing System to generate auto email.

- Notification to Project Managers upon invoice raised and payment received from client. This shall ensure better monitoring/control of invoices/payments.

- Online payment system through NEFT for medical claims enhanced to include retired employees at ROs and construction sites, benefiting all retired employees across the country with faster claim reimbursement.

- Online Vigilance clearance and scrutiny of Immovable Property Returns (IPRs) facilitates HR Division for issuance of NOC online to concerned employee thereby, considerably reducing man efforts of HR, Legal and Vigilance departments.

- Online assessment of 1st half yearly & final appraisal of employees who are on probation as well as employees promoted to level 18, 19, 20. Auto generated mail as well as reminders are implemented through scheduler to concerned Appraiser, Reviewer & Acceptor.

- Implementation of construction activities in Pre-commissioning Management System

PCAMS (Pre-commissioning & Commissioning Activities Management System) has been further enhanced to enable Construction and Contractor engineers for monitoring the Mechanical Completion activities at site. This system helps in creating the Loop Identification and getting the online Mechanical Clearance, NDT, Support and Hydro Test work flow status. Currently PCAMS is fully operational at eight refineries / petrochemical complexes and ITS is providing project support to construction- sites / clients / SCT team members for doing pre-commissioning related activities at HO & sites.

- Hold Management System

On-line Hold Management System has been developed and implemented. The system is integrated with major software systems like PPMS, eDMS, PDS and PDMS and will provide a consolidated list of all the holds. This will lead to better monitoring, early resolution of holds, which will help in avoiding project delays.

- Technical Audit System

ETAS (Engineering Technical Audit System) has been developed and implemented. This systems facilitates to conduct Technical Audit & Construction Audit for various projects. Presently, system is being used by all Technical divisions i.e. Engineering, Process, POSD, R&D, SMMS, Environment andHMTD. Department specific check lists are incorporated in the system.

Sustainable Development

At EIL, the sustainability mandate is not just about contributing to a good cause or complying with environmental regulations but rather about operating its business in a manner that is responsible and transparent to all its stakeholders. Our project designs support sustainability right from the concept stage to plant commissioning and subsequently during the commercial operation. Energy efficiency, resource optimization and safety of plant personnel & society at large are the cornerstones of our business operations and also ensure business continuity.

EIL has refocused its engineering philosophy and business models to achieve long term sustainable growth. Alongside, EIL has initiated evaluation and reporting of its performance on the triple bottom lines of economic, social and environmental aspects. We believe that the sustainability initiatives underway at EIL will propel our organization on an upward growth trajectory.

A separate Report on Sustainable Development is annexed to this Report.

Quality Management System

In EIL, Quality Management System (QMS) is aligned and focused with long term objective of the Company. Quality is inbuilt into our processes, workplace, deliverables and services.

The QMS in respect of Company''s services has been reassessed this year as per the requirement of ISO 9001:2008 by the certification agency, who conducted the Surveillance 1 audit. The certification agency after audit declared that the Quality Management System of the Company continues to conform to international standards and recommended for continuation of the ISO certificate. The Certificate of Approval is valid up to 13.10.2015.

The important ingredients of our quality initiatives are effective & comprehensive internal audit process, planned customer perception surveys, analysis of feedbacks from stakeholders and regular directions from Management Review Committee (MRC) & Systems Committee. MRC is chaired by C&MD and all Directors are members of the committee. The Systems committee is chaired by senior Executive Director, and senior officials from all areas of operation & functions are members of the committee. Regular monitoring is done to analyze the data & feedbacks for recommending improvements in processes, deliverables and QMS to reduce costs, shorten cycle time, cross functional issues, improve visibility and credibility without affecting the environment. QMS implementation and its effectiveness have been further increased by computerization of certain processes through in-house developed software.

Quality Management System of EIL-UAE (Abu Dhabi) office was also independently audited and reassessed for certification by Certifying Agency, who conducted the renewal audit, for its conformance to the requirement of ISO-9001:2008, during this period. The certification agency after audit declared that the Quality Management System of the Company continues to conform to international standards and recommended for renewal of the ISO certificate. The renewed Certificate of Approval is valid up to 05.05.2016.

In addition, the Company participated as a prominent and active member in various committees for formulating products and quality system standards by M/s Bureau of Indian Standards.

Quality Management System at EIL provides the competitive edge in securing and executing the projects with focus on full customer satisfaction.

Risk Management

The Company has a Risk Management policy and a supporting frame work which facilitates the identification and assessment of new risks and review of existing risks. The process is based on identified risks and the risk events or factors which require regular assessment and quick response. Based on the probability and impact of the risk, the requisite controls and action plans are designed. To measure the adequacy, effectiveness and efficiency of these controls and action plans, the concept of Key Risk Indicators (KRIs) has been implemented. KRIs have been designed and are being implemented to measure presence, level, or trend of the risk.

The objective of risk management in the Company is to act as enabler in maintaining its knowledge edge, sustaining and expanding the business, being competitive and ensuring execution of projects within budgeted cost and time resulting in improved turnover and profitability.

In order to cover all the elements of risks while identifying, nine categories have been defined by the management & risks in each have been identified at enterprise level. Risks, their root causes, controls and action plans are prepared by process owners and updated regularly. These are approved by the Risk Management Committee (RMC) with Director (Finance) as chairman of RMC and all the Executive Directors, CGM (ITS), GM (Inspection) & Company Secretary as members, with Head of Risk Group as member secretary. Risk audits are conducted regularly to test the compliance of controls and the same is reported to RMC.

The status of Enterprise Risk Management (ERM) process is presented to Audit Committee on bi-annual basis which is reviewed by the Board of Directors also. The reporting structure meets the regulatory compliance.

Based on periodic reviews and implementations of recommendations resulting from review process, the ERM process is continuously improved and strengthened. Project Risk Management is being implemented for high value and important projects as per the criteria approved by RMC. A risk register is prepared by listing all possible risk events of every discipline associated with the project. Risk Management Team approves the first risk register & meets every month to update it and continuously focuses on the identified risks. The risks severities are categorized in critical, major, cautionary and minor based on the probability and overall impact. Project Risk Management helps in facilitating management towards risk mitigation for effective project implementation.

The risk identification & assessment processes have been automated by Enterprise Risk Management System (ERMS) software.

The communication is being done regularly, across the organization to spread awareness on risks, root causes and action plans through in-house risk management awareness programs, external trainings & seminars, certification program on Project Risk Management.

To create awareness & increase the involvement of employees, the quarterly news letter ''Risk Screen'' was converted into a bi-monthly newsletter during this period. It is being shared with all the employees to inspire them to control risks in their work processes & areas.

The management is committed to further strengthen its risk management capabilities in order to protect and enhance shareholder value by improving its business performance. Continuous efforts in creating new opportunities, improving competencies/knowledge in various areas leading to improved performance and leveraging existing knowledge resources, in line with the risk appetite of the company, has enabled the company to protect the shareholders interests.

Vigilance

During the year, CTE type examination of EIL''s jobs on LSTK/OBE basis, random inspection of in-house contracts/purchases, scrutiny of Immovable Property Returns, investigation of complaints etc. were carried out by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures and Government guidelines. For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/CVC were examined and necessary actions were taken. System improvements were suggested to the Management & necessary measures were undertaken for improvement.

Structured meetings between CVO, C&MD and Directors were held and the MOMs were forwarded to CVC and MoP&NG. Inter-directorate meetings were also held between CVO & Directors to resolve the pending issues. Details of vigilance activities were also presented to the Board.

Various vigilance workshops; interactive sessions, seminars, debates, Vigilance Awareness Week etc. were organized in HO, Regional, Branch, Procurement and site offices of EIL during the year for spreading vigilance awareness amongst the employees of the Company. A seminar was organized on this year''s theme of Vigilance Awareness

Week-2013-''Promoting Good Governance-Practice to check corruption at work place'' for senior level management officials. Dr. G. K. Goswami, Director (CBI Academy) graced the occasion and delivered talk along-with presentation on the topic, followed by an interactive session.

The inaugural issue of the Vigilance journal "JAGRITI…the Awakening” was released during the year as an effort towards spreading awareness as a part of preventive vigilance.

Some important features of Vigilance activities are given below:

- Leveraging Technology

Reverse auctioning, e-tendering, epayment, e-receipt, etc. are already implemented in the Company and being monitored regularly against the set targets. Clearance of vendors'' bills on ''First in, First Out'' (FIFO) under Bill Tracking system (BTS) is ensured. BTS has provision for details about pendency of vendors'' bills.

- Complaint Handling Policy (CHP)

As per CVC Guidelines, EIL has formulated Complaint Handling Policy (CHP) to resolve complaints/grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is available on the Company''s website which is regularly monitored by Vigilance with respect to the status of complaints.

- Policy regarding recruitment of Ex-employees

EIL has adopted a policy for hiring of Retired/Ex-employees as per practice followed by other PSUs. Vigilance has ensured that employees who have been penalized during service are not considered for re-employment.

- Job Rotation

Job rotation of sensitive posts is being done & reporting of the same is being made on monthly basis. Sensitive Posts have been revisited & revised list was implemented during the year.

- Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all of its business dealings. EIL has adopted Integrity Pact Program & signed an MOU with Transparency International India and the same is applicable for all Contracts & Purchases on EIL''s account for enquiries having threshold value of ov er Rs. 5 crore.

- Online Vigilance Clearance & Scrutiny of IPRs

System for online Vigilance Clearance & Scrutiny of IPRs on EIL Intranet has been implemented during the year.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth. EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having adequate number of professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports are regularly submitted to the Management and the major findings to the Audit Committee of the Board.

Human Resource & Industrial Relations

EIL values its human resources and is committed to providing them with an enabling environment which motivates, facilitates their growth and rewards them for their contributions. Various welfare measures, employee-centric policies and development initiatives, drive its human resource to deliver their best thereby leading to enhanced productivity.

As of March 31 2014, we have 3357 employees, including 2968 technically and professionally qualified employees. Approximately 3.78 % of our employees are located outside India, and have experience of international work environments.

- Talent Acquisition

Our Talent Acquisition strategies are designed towards projecting EIL as a valued employer and diverse recruitment models are employed to meet the dynamic business needs with intake of fresh talent, domain specialists, short term hiring through outsourcing and taking onboard consultants/advisors.

- Performance Management System

In the area of Talent Assessment and Appraisal, EIL has in place a robust and transparent online Performance Management System that gives weightage to both performance and potential. The outcome of Performance Management System is used for performance related pay, career progression, training & development and succession planning.

- Employee Welfare

During the year efforts were made for aligning our welfare measures towards enhancement of quality of work life for our employees. Various employee welfare initiatives were taken ranging from creating forums for social interactions to providing effective medical services by empanelling more hospitals and extending medical facilities to dependent parents and children in case of death of employee.

- Thrust on Sports

To promote a spirit of sportsmanship and build a collaborative work environment, EIL encourages its employees to participate in various trekking expeditions, sports tournaments at regional and national levels and is an active member of Petroleum Sports Promotion Board (PSPB). EIL organized the PSPB Badminton Tournament during September 2013 at Siri Fort stadium where 8 teams from Oil & Gas sector including EIL participated.

- Reward & Recognition Scheme

With an objective to recognize individual contribution as well as team efforts and to sustain exemplary performance a new reward & recognition scheme was introduced. This scheme is more inclusive and objective and would lead to enhanced engagement of employees across all levels.

- Training & Development

Significant interventions were made in the area of training interventions for our employees wherein focus was provided to development of Managerial/Behavioural Competencies as well as Technical and Domain related competencies. In addition to this, structured Management Development Programmes were organized through Management Institutes for senior and junior management levels and sixth batch of Leadership Development Program- ''Aarohan'' was completed for senior executives. A year- long training structure was implemented for Management Trainees which is a blend of classroom as well as experiential and on-the-job learning. Adequate focus was also maintained on the health and fitness of the new recruits through yoga sessions for the MTs every morning. During 2013-14, the average training days per employee was 3.27.

- Mentorship Development

EIL supports Mentorship Development Program and allocates trained mentors in the ratio of 1:3 (Mentor : Mentee) for Management Trainees. In order to augment the mentoring process Mentorship Development programmes are organized on a continuous basis.

- Leveraging IT in HR

IT was leveraged in HR to make the current processes more robust, transparent and enhance ease of operability for internal as well as external customers. EIL Connect continued to provide an interactive environment to the employees and has proved to be a valuable communication forum for employees posted both within India and at overseas locations. More than 500 news items/reports were uploaded on EIL Connect and the portal had more than 18 lakh hits during the year.

- HR Initiatives

Formulation of the HR Vision, Mission and Objectives and its release on the 1st of January 2014 was another initiative which has further aligned the HR Services with the Organization''s Vision, Mission and Core values and has resulted in creating a foundation for HR interventions.

An HR Agenda was drawn up for 2013-14 to channelize the efforts of the HR team and enhance the effectiveness of the HR function. The Agenda included the following items: Image Building, Corporate Social Responsibility, Professional Service, Improvement in Work Environment, Effective Collaboration & Team Building, HR Audit, Employee Nominations and HR Data Accuracy. Focused efforts were made on implementation of key action points of the HR Agenda during the year.

Various initiatives were taken during the year 2013-14 to meet the talent demands of the changing business environment and expectations/aspirations of the employees. Employee Engagement Survey ''Abhivyakti'' was commissioned for obtaining an unbiased perception of the employees on various attributes. In our endeavour to obtain objective assessment of and chart clear development plans Assessment Development Centers were organized for 60 nos. of senior management personnel. To provide a structured, objective and measurable framework for performance planning, monitoring and assessment the Balanced Scorecard was implemented in HR Directorate and Annual Performance Contracts were put in place for each division.

- Implementation of Government Directives on SC/ST

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavoring towards safeguarding the interests of SC/ST employees. In pursuance of the philosophy and compliance of Presidential Directives dated December 30, 1972 issued by Ministry of Petroleum and Natural Gas, EIL has incorporated necessary provisions in its Recruitment process and Promotion norms.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employee''s Welfare Association by holding periodical meetings with the Association.

The percentage of employees belonging to Scheduled Caste & Scheduled Tribes category was 18.1% and 4.2% respectively of total staff strength of the company (as on March 31, 2014). Regular meetings were held with the representatives of SC/ST Welfare Association.

- Women Development

Women constitute approximately 12% of EIL''s human resource, wherein more than 80% are in the officer cadre. To cater to the development needs of its women employees, EIL has constituted a Women Forum. The forum focuses on providing opportunities for development to women employees and identifies various training interventions especially in the areas of Managerial Skills and Leadership Development. The forum also facilitates participation of women employees in various conferences and seminars. Senior women executives of EIL have been rewarded at prestigious forums for their contributions.

Corporate Social Responsibility

In EIL, CSR is the commitment to operate in an economically, socially and environmentally responsible manner to enhance the Company''s overall contribution to society. The thrust areas for CSR activities/projects are education, healthcare, drinking water/ sanitation, rural electrification, environment protection/sustainability, women empowerment, upliftment of underprivileged, community development, vocational training/ skill centre and promotion of sports.

EIL''s CSR activities are directed towards supporting the initiatives of local, State or Central Government with programs located in and around its project sites, regional offices and Head Office, with special focus on the backward areas and underprivileged sections of society.

The CSR Budget allocated for the FY 2013-14 was 2% of PAT of the previous financial year. The expenditure during the year was Rs. 648.49 lakhs. The full utilization of the CSR budget could not be achieved as the expenditure is based on project milestones which are spread over one or more years.

The CSR activities under various thrust areas during the year are listed below:

Education: Major projects under execution include construction/ upgradation of infrastructure in various schools of Assam and construction of auditorium for girl students of A.P. Social Welfare Residential School/Junior College in association with District Authority of Prakasm in Andhra Pradesh. Another key on-going project is the adoption of 100 Ekal Vidyalayas( i. e. One Teacher School) in the rural villages of Dibrugarh, Assam for supporting basic informal education to poor children.

Health Care: EIL has supported free Health & Eye Check up camps in backward and slum areas of Delhi NCR and Dibrugarh, Assam through an NGO for cataract detection and operation and distribution of free medicines. The Company also supported acquisition of Phacoemulsification machine for a hospital for cataract operation of underprivileged people.

Other health care projects under execution include support for acquisition of a fully equipped Mobile Cancer Detection Van for screening & diagnosing cancer and spreading cancer awareness among poor people in Delhi. EIL has also supported medical equipments to Government General Hospital at Kakinada, Andhra Pradesh and provided Prosthesis and Medical bras to cancer survivors in Delhi NCR through a society.

Drinking Water/Sanitation: Under this, EIL has constructed a water treatment plant for augmenting potable water supply in the Kancheepuram District, Tamil Nadu. Projects under implementation are installation of RO Plants in six locations at Kakinada, Andhra Pradesh and renovation of sanitation facilities & internal sewerage pipeline of Janta Adarsh Andh Vidyalaya, Delhi.

EIL has also supported a major project for installation of 93 RO Systems along with water storage tank in 81 hostels/ educational institutions of Bapatla Town & Prakasm districts of Andhra Pradesh and construction of Drinking Water Filter Unit, Borewell, Water Filter Machinery Unit and associated facilities in 8 rural villages of Chikkaballapur, Karnataka.

Rural Electrification: Under Rural Electrification initiative, EIL is providing solar lighting for households in villages where grid power is inaccessible. A major project in rural electrification is the support for setting up of solar power plants in two remote villages of Kargil in association with the Kargil Renewable Energy Development Agency.

Environment Protection/Sustainability: In an effort to enhance awareness amongst school children & local population on environmental protection and sustainability of Ladakh region in Trans Himalayas, a social outreach program was supported by EIL. Another major ongoing project is the construction of green cremation systems in different locations of Delhi NCR through an NGO, which aims to reduce considerable amount of wood consumption besides minimizing air and water pollution.

Women Empowerment: Major projects under implementation include providing equipments for vocational training of deaf women and distribution of sewing machines for the training of underprivileged women & girls through NGOs.

Upliftment of underprivileged: Projects under implementation are providing washing machine, school uniforms, Braille sheets and cooker for the underprivileged women and visually challenged children through a Trust for the Blind at Bangalore, construction of multi- purpose hall for the old age home in Mirzapur, U.P. and providing support to an NGO for construction of Girls Block and additional facilities in the Community Care Centre to accommodate abandoned HIV/AIDS infected & affected women and children at Kancheepuram District. EIL is also providing support to an NGO for construction of one block of an Old Age home in Garhmukteshwar, U.P.

Community Development: Projects under implementation for community development include construction of Panchayat building with community hall and water supply pipeline work from overhead tank to individual houses of Padur Village in Manipal and construction of road & drain facilities at Yanam in association with District Administration - Government of Puducherry.

Vocational Training/Skill Centre: EIL has provided sewing machines for training programmes to artisans in rural villages of Andhra Pradesh to a skill centre run by an NGO. Another major project under implementation is the construction of ground floor of BGS Vocational Training Centre at SJCIT, Chikkaballapur, Karnataka through a trust to promote entrepreneurship and employability skills of youth.

Contribution to Emergency Needs: EIL has provided contribution to Chief Minister''s Relief Fund to support the victims of devastating natural calamity caused by cloud bursts and floods in Uttarakhand.

Official Language

To propagate and enhance usage of Official Language in communication various initiatives like facilitation of Regular Classes & Correspondence Courses for employees not conversant with Hindi, Hindi workshops and celebration of Hindi Fortnight were undertaken.

EIL also participated in Rajbhasha Sammelan organized by Ministry of Petroleum and Natural Gas. Town Official Language Implementation Committee (TOLIC) of Delhi honored EIL for organizing the conference for Delhi based undertakings to impart training for filling of online Hindi quarterly report as per request made by Rajbhasha Vibhag, Ministry of Home Affairs.

During the year the Committee of Parliament on Official Language conducted the inspection of Official Language at our Mangalore office and the committee expressed its satisfaction on the implementation of official language policy. Rajbhasha Vibhag of EIL also carried out regular inspections at its Division/ Departments and Regional/ Field/ Procurement offices during the year in accordance with the official language policy.

Awards and Accolades

- Commendation Certificate for SCOPE Meritorious Award in Specialized Fields 2011-12 for R&D, Technology Development and Innovation. Shri A. K. Purwaha, C&MD, EIL received the award from the Hon''ble President of India Shri Pranab Mukherjee.

- Petrofed Award-2012 for Innovator of the Year Team – Special Commendation Award to EIL & Indian Oil and 22 member team of EIL and Indian Oil.

- Petrofed Award-2012 for Innovator of the Year Team – Special Commendation Award to EIL & CPCL and 8 member team lead by Shri Ajay N. Deshpande, Director (Technical), EIL.

- 12th ICSI National Award-2012 for Excellence in Corporate Governance.

- PSU Award 2013 – runner up trophy in the ''Asset Utilization'' category by Governance Now magazine.

- ICAI Award-2012 for Excellence in Cost Management Practices for the Year-1st prize in the category of Public - Service Sector – Large.

- ICC PSE Excellence Award-2013 for R&D, Technology Development & Innovation

- SKOCH Order of Merit Award for Innovative Technology on ''Oxyenrich Process for Capacity Enhancement & Trouble Free Operation of Claus Sulphur Plant''.

- Best Performance Award for 2012-13 from GAIL for Project Management Consultancy Services for Dabhol – Bangalore Pipeline Phase-1 Project of GAIL.

- FICCI Chemical and Petrochemical Awards 2013 for "The Process Innovator of the Year in Petrochemicals” for ''Food Grade Hexane (FGH)'' Technology jointly developed by EIL & IOCL and Best Contribution to Academia for ''Wet Air Oxidation (WAO)'' Technology jointly developed by EIL & IIT Roorkee.

- CIDC Award for BCPL Project at Dibrugarh under the category of Construction Health, Safety & Environment.

- Award for Green Building with 4 Star GRIHA Rating for Administrative Building project at GAIL Compressor Station Complex at Chainsa (Haryana).

- Golden Peacock Award for Sustainability for the year 2013 instituted by Institute of Directors (IOD).

- Golden Peacock Award for Corporate Social Responsibility (CSR) for the year 2013 in recognition of the Company''s unique initiatives in CSR and execution of projects for the betterment of underprivileged sections of society by Institute of Directors.

- IPE Best Innovation Award and Best Overall Corporate Social Responsibility Performance Award.

- Award for Best Social Responsibility Practices by World CSR Congress.

- Award for Talent Management by World HRD Congress.

- Business Today Best CFO Award – 2013 to Shri Ram Singh, Director (Finance), EIL.

- IPE Best CEO with HR Orientation Award 2013 to Shri A. K. Purwaha, C&MD, EIL.

- CEO with HR Orientation Award to Shri A. K. Purwaha, C&MD by World HRD Congress.

- IPE HR Leadership Award to Ms. Veena Swarup, Director (HR), EIL and citation for her inclusion in ''30 Most Talented HR Leaders in PSUs''.

- Dainik Bhaskar India Pride Award-2013 to Shri D. Moudgil, Director (Projects), EIL for Excellence as Head of Department – Projects.

- "Leadership Excellence” Award to Shri A.K. Purwaha, C&MD for evincing remarkable leadership and leading the organization on the success path of growth and prosperity by TOP RANKERS, Management Consultants

- World Women Leadership Award to Ms. Veena Swarup, Director (HR) by World Women Leadership Congress.

- HR Leadership Award to Ms. Veena Swarup, Director (HR) by Asia Oil and Gas Congress.

- Petrofed Woman Executive of the Year Award-2012 – Special Commendation to Ms. Jayati Ghosh, DGM (Process Design & Dev.), EIL.

Joint Ventures

Jabal EILIOT Company Limited

EIL''s Joint Venture Company Jabal EILIOT, which was set up on July 5, 2011, has been pursuing prequalification with all important clients in Saudi Arabia like, Saudi Aramco, SABIC etc. It has already been prequalified by Saudi Aramco for In-plant projects and the application of registration as In Kingdom EPC Contractor is under evaluation of Saudi Aramco.

TEIL Projects Limited

TEIL Projects Ltd., the Joint Venture Company with Tata Projects Limited, is executing consultancy projects in City Gas Distribution, CNG, Oil, Gas and Refinery sectors.

Subsidiary Companies

Certification Engineers International Ltd. (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from ONGC, VMSS, SMC, GSPL, RUDA, BPCL, various State Governments and others, notable among these being :

- ONGC – Certification services for HRD Process Platform Project, HRDP-II P P, Addnl. Pipeline Project, B-127 Cluster Pipeline Project and SPCON Project.

- VMSS, RUDA & SMC- TPI for various Infrastructure Projects

- GSPL- TPI for various Pipeline Projects

- BPCL - TPI for Mumbai, Kochi and Numaligarh Refineries.

Apart from these, CEIL secured many Third Party Inspection assignments from clients like Fabtech, Reliance Industries, L&T Abu Dhabi, Heurtey Petrochem, ERDMP & statutory audit assignments from GAIL, IOCL etc.

The Board of Directors of the Company has recommended for the financial year 2013-14, a final dividend of Rs. 200/-per share (of face value of Rs. 100/- each) in addition to Rs. 200/- per share interim dividend already paid during the year. With this the total dividend for the year 2013-14 works out to Rs. 400/- per share. The payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company.

EIL Asia Pacific Sdn. Bhd.

EIL Asia Pacific Sdn. Bhd. (EILAP) was incorporated on February 21, 1994 under the Malaysian Companies Act, 1965. EILAP is primarily engaged in the business of providing technical services for projects in oil and gas and other industrial sectors.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

As the Company operations do not involve any manufacturing or processing activities, the particulars as per the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, regarding conservation of energy and technology absorption, are not applicable. The particulars regarding expenditure and earnings in foreign exchange are given in Point no. 2.26 of the Notes to Accounts.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance. The Board of Directors supports the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity.

As required under Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors'' Certificate on compliance of conditions of Corporate Governance, along with the Management''s Reply on the comments of Auditors is annexed.

Code of Conduct

EIL has formulated a Code of Conduct for its Board of Directors and Senior Management Personnel. The confirmation of compliance of the same is obtained from all concerned on annual basis. All Board Members and Senior Management Personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance.

Right to Information

EIL, a Company incorporated under the Companies Act, 1956 is a reputed public sector undertaking wherein Government of India is a major shareholder. Under the provisions of section 4 of the Right to Information Act, 2005 every public authority is required to display necessary information to citizens to secure access to information under the control of public authority in order to promote transparency and accountability in its working and functioning.

EIL, being a responsible public sector undertaking, has displayed essential information on its website under the head RTI. The management has notified CPIO and the First Appellate Authority (FAA) in compliance with the requirements of the RTI Act. Between April 1st, 2013 and March 31st, 2014, a total of 137 applications were received by the Company and all of them were disposed off as per rules. Apart from RTI applications, the Company also received 17 appeals against the decision of CPIO, which too were duly attended to and appropriately disposed off by the First Appellate Authority. It is heartening to note that not even once the Central Information Commission passed any adverse order against the CPIO/FAA.

Directors'' Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, the Directors confirm:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same

ii. that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of Company for that period

iii. that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities

iv. that they have prepared the annual accounts on a going concern basis

Auditors

M. Verma & Associates, Chartered Accountants were appointed as Auditors of the Company for the financial year 2013-14 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include State Bank of India, Indian Overseas Bank, State Bank of Travancore, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank, ICICI Bank, Indian Bank, Bank of India, Oriental Bank of Commerce, Canara Bank, IDBI Bank and Axis Bank.

Particulars of Employees

Information with respect to employees as required by Section 217(2A) of Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1976, as amended is given as Annexure to this Report.

Directors

After the date of last Directors'' Report i.e. 5.07.2013, Dr. (Prof.) KDP Nigam, Non-official (Part-time) Independent Director ceased to be Director of the Company w.e.f. 9.07.2013.

Dr. Christy Fernandez was appointed as Additional Director {Non- official (Part-time) Independent} on the Board of the Company w.e.f. 26.09.2013. Shri Adit Jain, Non-official (Part-time) Independent Director ceased to be Director of the company w.e.f. 27.09.2013. However, he was again appointed as Additional Director {Non-official (Part-time) Independent} w.e.f. 27.09.2013.

Dr. V. Vizia Saradhi and Shri D.R. Meena were appointed as Additional Directors {Non-official (Part-time) Independent} w.e.f. 13.11.2013.

Shri R.N. Choubey, Director (Government Nominee) ceased to be Director of the Company w.e.f. 6.12.2013.

Dr. Christy Fernandez, Non-official (Part-time) Independent Director ceased to be Director of the Company w.e.f. 28.02.2014.

The Board placed on record its sincere appreciation for the valuable services rendered and contributions made by Dr. (Prof.) KDP Nigam, Dr. Christy Fernandez, Non-official (Part-time) Independent Directors and Shri R.N. Choubey, Director (Government Nominee) of the Company.

In accordance with the provisions of the Articles of Association of the Company, Shri Ram Singh, Director (Finance) and Ms. Veena Swarup, Director (HR) would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment.

In accordance with the provisions of the Companies Act, 2013, Shri Adit Jain, Shri D.R. Meena and Dr. V. Vizia Saradhi who were appointed as Additional Directors after the date of last Directors'' report, shall vacate their offices at the ensuing Annual General Meeting.

Brief resume of the Directors seeking reappointment together with the nature of their expertise in specific functional areas, names of companies in which they hold directorships and the membership of Committees of the Board as stipulated under Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance are given in the Annexure to Notice of 49th Annual General Meeting.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development, we will continue to provide world class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results. Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

For and on behalf of the Board of Directors

A.K. Purwaha Chairman & Managing Director

Place: New Delhi Date : July 21, 2014

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Mar 31, 2013

To The Shareholders of Engineers India Limited

Ladies & Gentlemen,

The Directors have great pleasure in presenting the 48th Annual Report together with audited accounts of the Company for the year ended March 31, 2013 along with Audited Statement of Accounts, the Auditors'' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2012-13 in Retrospect

EIL continued its good performance during the year 2012-13. The salient features, as stated in the audited financial statement, are as follows:

Turnover : Rs. 250597 lakhs

Profit Before Tax (PBT) : Rs. 89094 lakhs

Profit After Tax (PAT) : Rs. 62857 lakhs

The revenue from consultancy business increased year-on- year to Rs.123424 lakhs which is driven by an increase in overseas consultancy income.

Dividend

The Board of Directors of the Company has recommended for the Financial Year (FY) 2012-13, a final dividend of Rs. 3/- per share (of face value of Rs.5/- per share) in addition to Rs. 3/- per share interim dividend already paid during the year. With this, the total dividend for the FY 2012-13 works out to Rs.6/- per share. Payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company.

Investor Relations

Your Company is actively engaged in improving its relations with all stakeholders. Besides the holding of Annual General Meeting wherein performance of the Company is shared with existing shareholders, the Quarterly and Annual Results are shared with Statutory Bodies, Investors and Media. The results, investor presentations, major news and events are uploaded on the Company''s website for ensuring fair and equal access to all stakeholders.

Management and Investor Relations Cell engage in communication with Investors and Analysts through one on one meetings, conference calls, conference participation and road shows. Quarterly updates are also shared with the analysts who actively cover the Company. EIL is forthcoming in addressing the queries of investors on the Company''s performance, its business initiatives, industry outlook, avenues of growth, investment and diversification plans.

All channels of communication are utilized for reaching out to both institutional and retail investors. Your Company is equally committed to strict compliance to disclosures and governance norms as per applicable rules and guidelines and maintains equal and non selective treatment with all stakeholders.

Company periodically obtains the opinion of the investment and analyst community as a valuable feedback for strategic decision making.

Management Discussion & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Petroleum Refining

Petroleum Refining sector continued to be the mainstay of Company''s business. During the year, EIL has achieved significant progress on the following major projects, some of which were commissioned or are in advanced stage of completion:

- As part of Phase-III Refinery Expansion Project, Mangalore Refinery & Petrochemicals Limited (MRPL) had planned to increase the crude processing capacity to 15 MMTPA by adding CDU/VDU of 3 MMTPA. The Project also aimed at upgrading the refinery to meet Euro-III/IV specifications for its entire Diesel pool by revamping existing units or adding new secondary processing units including associated Utilities/Offsites. The Project is being implemented on hybrid mode of LSTK/OBE/conventional EPCM system for various units. EIL is PMC for LSTK packages and EPCM consultant for Utilities/Offsites. EIL is also executing the Petro Fluidized Catalytic Cracking (PFCC), Sulphur Recovery Unit (SRU) block, Poly-propylene Unit (PPU), SPM & associated facilities for this Project on OBE mode of execution.

The CDU/VDU unit was commissioned in March, 2012 with required utilities/offsites. During the year, secondary processing units viz., Hydrogen Generation Unit, DHTU, HCU I & II revamps and part of SRU block were also commissioned. Other units such as Heavy Coker Gas Oil, PFCC, DCU & remaining part of SRU block were mechanically completed. Consequently with the completion of catalyst loading, critical pre- commissioning milestone of PFCC has been achieved. The PPU unit is heading towards completion. Part of the Utilities/Offsites facilities are already commissioned and balance facilities including Coke Handling System and Captive Power Plant are in advance stage of completion.

For PFCC unit, the magnitude and the volume of work involved posed the critical challenge of building one of the most complex process units in the Refining industry, implemented hitherto in India. The construction of PPU was also a challenging tasks due to undulating terrain of the site. EIL has successfully overcome various construction impediments which has paved the way for completion of remaining facilities.

- Revamp of CDU/VDU-II at Chennai Refinery of Chennai Petroleum Corporation Limited (CPCL) was mechanically completed during the year. The shut down work was completed within 58 days against a schedule of 60 days, from receipt of the 1st hot permit. The revamped unit is now fully operational.

- New Coke Chambers & Allied Modernization Facilities at IOCL''s Guwahati Refinery were successfully commissioned during the year.

- CDU-4 project is being executed by Bharat Petroleum Corporation Limited (BPCL) in their Mahul Refinery, Mumbai to enhance safety, environment & equipment integrity and minimize energy consumption and improve yields with deep cut VGO. EIL is providing EPCM services for this project. The new Crude and Vacuum Distillation Unit (being termed as CDU-4) is being designed for a capacity 6.0 MMTPA that will replace the ageing CDU- 1 and CDU- 2. The Project also includes Treatment facilities for LPG & off-gas and associated Utilities and Offsites.

- The Integrated Refinery Expansion Project (IREP) of BPCL Kochi Refinery aims to increase refining capacity from present 9.5 MMTPA to 15.5 MMTPA, including modernization of refinery to produce auto-fuels complying with Euro-IV/V specifications, up-gradation of residue stream from the refinery to value added products and production of propylene as petrochemical feedstock to BPCL''s proposed petrochemical complex. Execution of this prestigious project has been entrusted to EIL on EPCM mode. The IREP comprises of CDU/VDU, DHDT, VGO-HDT, FCCU, DCU, associated utilities including CPP and off-site facilities. Along with above facilities, BPCL also intends to revamp and convert its existing Naphtha Hydro- Desulfurization (NHDS) and Semi-Regenerative Reformer (SRR) unit to a Naphtha Hydrotreater- Isomerisation (NHT-ISOM) unit to produce high octane Isomerate from light naphtha as a blend stream for production of Euro-IV gasoline. Process packages for all licensed units have been received. Engineering and procurement activities are gaining momentum while site grading and civil/structural works are in progress.

- A Tail Gas Treating Unit (TGTU) is being installed at HPCL Vizag Refinery using indigenous technology developed by EIL (R&D). The process objective of TGTU is to convert all sulphur bearing compounds present in Claus Tail Gas to Hydrogen Sulphide and to recycle the recovered Hydrogen Sulphide to existing sulphur recovery unit to achieve a recovery of 99.9%. This is an achievement for EIL in implementing the Company''s in-house technologies. Basic Engineering for the project is completed and detailed engineering is in progress.

- EIL is also providing PMC services for implementation of 366 MW Captive Power Project (CPP) of IOCL''s 15 MMTPA Paradip Refinery Project. Engineering & procurement are in advance stage of completion and construction activities are progressing in full swing.

- Wax Project of Numaligarh Refinery Limited (NRL) envisages production of paraffin wax and Semi- crystalline wax utilizing inherent properties of Assam Crude. Major engineering and ordering activities are completed and Construction activities for the project are in various stages of execution.

Petrochemicals

During the year, EIL made significant progress on following petrochemical projects:

- Dahej Petrochemical Complex of ONGC Petro-additions Limited (OPaL) is being executed on PMC - LSTK mode. The Project consists of 1100 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE/HDPE SWING Unit, PP units and associated Utilities & Offsites. The Dual Feed Cracker Unit, India''s largest dual feed cracker, has been mechanically completed. EIL is closely monitoring the progress of the balance 14 LSTK packages under execution by various International and Indian contractors.

With various innovative action plans worked out with the LSTK contractors, activities of all Process Units (HDPE, LLDPE, PP), Combined Cycle Power Plant,

Integrated Utilities & Offsites, Cooling Towers, Plant & Instrument Air Packages and Warehouses are progressing well. Equipment deliveries are in advanced stage and are propelling the construction towards completion.

- Assam Gas Cracker Project of Brahmaputra Cracker and Polymer Limited (BCPL) is a grassroot petrochemical project, being executed by EIL on conventional EPCM mode. The project encompasses licensed units viz., Ethylene Cracker, LLDPE/HDPE & PP from Lummus Technology USA, INEOS UK and Lummus Novolen Germany respectively besides EIL licensed Gas Sweetening Unit, C2 Separation Unit, Gas Dehydration Unit, Utilities & Offsites and Pipelines. Procurement of all equipment and award of all construction contracts have been completed. Civil & structural works are nearing completion and mechanical, piping, electrical & instrumentation works are in progress. Once completed, this complex will produce LLDPE, HDPE & PP and availability of these products shall boost the development of plastic industry in the North-East region of the country.

- GAIL Petrochemical Complex - II Project at Vijaipur & Pata consists of Gas Sweetening, Gas Cracker, C2/C3 recovery, LLDPE/HDPE Swing, Butene-I Units as well as Utilities & Offsites. The Gas Processing Unit (GPU) at Vijaipur, at a capacity of 21.71 MMSCMD, is one of the largest gas plants being designed in the world for recovery of C2/C3 fraction as feed to GCU.

Major long lead items such as Compressors, SS column/vessels, Heat Recovery Steam Generators, Utility boilers, STGs etc. have been received at site. Civil and structural activities at site are in advance stage of completion. Major focus has been on composite mechanical contracts which are progressing in full swing for both the complexes at Vijaipur and Pata.

- The Butadiene Extraction Unit (BDEU) of IOCL''s Panipat Naphtha Cracker Project (PNCP) is being executed on EPCM basis. The 138,000 TPA capacity unit has been licensed by CB & I Lummus and it is nearing completion.

- The Butene-1 Unit of PNCP is being executed on OBE basis. The 20,000 TPA capacity unit has been licensed by Axens, France. Detailed engineering and ordering activities are in the advanced stage of completion. All major long lead items such as Thin Film Evaporators, Pump Around Coolers, Pumps etc have been ordered much in advance and delivery of the equipment has started. Civil/structure works at site are progressing well and mechanical works have also commenced.

Pipelines

EIL has established a strong track record of executing cross country pipelines for transportation of crude oil, refined petroleum products, natural gas and LPG. The Company is not only working with its traditional clients like GAIL, ONGC & BPCL but has also aligned with new clients such as GSPL & its Joint Ventures in pipeline projects. Building on its success of securing the Mehsana-Bathinda Gas Pipeline project from one of GSPL''s JVs, EIL could further establish its marquee project execution capabilities, by obtaining another major pipeline project from the client i.e., Mallavaram-Vijaipur-Bhilwara project that spans a total length of 1765 kms including spur lines of sizes upto 36"

Based on the DFR prepared by EIL for Augmentation and Modernization of Pumping Stations of Naharkatiya-Barauni Crude Pipeline of Oil India Limited, the Company was entrusted the responsibility of providing EPCM services for the execution of the project.

The following pipeline projects have been successfully completed during the year:

- 36"/30"/24"/18" x 995 km Dabhol-Bangalore Natural Gas Pipeline of GAIL.

- Last Compressor train of the Vijaipur Compressor Station ofVijaipur-Dadri-Bawana Pipeline System.

- LNG terminal of RGPPL at Dabhol which has started receiving LNG cargos.

The following major pipeline projects are in progress:

- 36"x860 km Mehsana-Bathinda Pipeline along with 24"/18"/16"/8"x 726 km Spurlines for GSPL.

- South Jetty Development Pipeline project for loading/unloading of petroleum products and crude oil for IOCL Paradip Refinery. This jetty will handle a wide variety of oil & gas products including crude and is first of its kind in India.

- 12" x 100 km, Hazira-Dahej Naphtha Pipeline for ONGC.

- Two additional Compressor stations at Chainsa (Haryana) and Kailaras (Madhya Pradesh) on Vijaipur- Dadri Pipeline of GAIL.

- 10" x 26 km LPG Onshore/Offshore Pipeline from BPCL/HPCL Mahul Refineries to Uran for BPCL.

- 18"/16" x 275 km Natural Gas Pipeline from Vijaipur to Kota and Spurline to Chittorgarh for GAIL.

City Gas Distribution

City Gas Distribution (CGD) was identified as a high growth potential sector due to inherent advantage of gas as a clean fuel. EIL believes that its vast experience in executing Pipeline and Urban Infrastructure projects can be leveraged for entry into City Gas Distribution as an Owner/Operator. The regulatory environment for CGD continued to undergo changes and EIL is carefully examining the situation based on its strategic interests and looking forward to taking a calibrated view of its entry into this area.

Offshore Oil & Gas

EIL has completed the following assignments in Offshore Oil & Gas sector during the year:

- PMC services for Marine and Topside Facilities for Standby Jetty of Dahej LNG Terminal of Petronet LNG Limited (PLL). The Standby Jetty is designed to moor and offload LNG carriers with capacity of 125,000 m3 to 266,000 m3.

- Pre-award services to ONGC for turnaround reconstruction works of BPA & BPB Platform Complexes.

- Integrated offshore crude handling facilities project of IOCL at Paradip. The facilities include installation of two SPMs and 71 km subsea pipelines.

- Engineering Study for HAZOP action points of Umm Shaif and Zakum facilities in Abu Dhabi of Abu Dhabi Marine Operating Company (ADMA- OPCO).

The following Offshore Oil & Gas projects are currently under execution:

- Well-head platform, Process-cum-Living Quarters Platforms and submarine pipelines of Deen Dayal Field Development Project of GSPC at Mallavaram, Andhra Pradesh. Significant progress has been achieved in this project. Fabrication and assembly works for the various modules of platforms & connecting bridges were carried out and subsequently installed at offshore location.

- SPM and Associated Facilities Project of MRPL at Mangalore are being executed by EIL on OBE basis. With implementation of these facilities, MRPL shall be able to import crude by VLCC Tankers of up to 3,00,000 DWT capacity resulting in considerable cost savings.

- Project Management Consultancy services are being provided for South Oil Jetty of IOCL at Paradip.

- Re-qualification and re-certification of 50 (nos.) offshore jackets for ONGC.

- Front-End Engineering Design (FEED) for New Gas Injection, Gas Lift, Oil Facilities for 7 (nos.) well head platforms in Upper Zakum facilities of Zakum Development Company (ZADCO), Abu Dhabi.

During the year, EIL bagged the following orders against stiff competition:

- Consultancy services for preparation of FEED package and LSTK Tenders for following projects of Petronet LNG:

- Storage Tanks and Re-gasification Terminal for capacity expansion of Dahej LNG Terminal from 10 MMTPA to 15 MMTPA. The FEED package and tenders have been prepared and handed over to PLL.

- Marine Works, Storage Tanks and Re-gasification Terminal for 5 MMTPA Gangavaram LNG Terminal.

- Consultancy services for pre-award activities for ONGC NQRC Phase-II project including new Living Quarter Platform.

- Consultancy services for preparation of detailed feasibility study report for Naval System Ocean Station "MAINAK"

- Detail Engineering & Procurement services for long lead items for Slops System Rehabilitation & Drains Upgrade at Umm Shaif Super Complex (USSC) of Abu Dhabi Marine Operating Company (ADMA-OPCO), Abu Dhabi.

Onshore Oil & Gas

- Gujarat State Petroleum Corporation (GSPC), as a part of Deen Dayal Field Development Project, is implementing an Onshore Gas Terminal (OGT) facility at Mallavaram. The project is being executed on OBE mode and consists of two trains of 100 MMSCFD each with GDU, GSU, DPDU, CSU, Sulphur Recovery unit and associated Utilities & Offsites. A unique execution methodology has been adopted for CPP of the project wherein BHEL has supplied the equipment & material and all installation/testing activities are being directly executed by EIL.

This year has witnessed significant progress with the major achievement being erection of all heavy lifts equipment, compressors and GTG. Presently, piping, electrical & instrumentation works are in full swing. Phase-I of raw water feeder pipeline has been commissioned.

- EIL is implementing the Western Onshore Redevelopment Project (WORP) of ONGC on PMC basis. The Project entails revamp of onshore assets for 90 installations at Ahmedabad, Ankleshwar and Mehsana. The modernization plan shall ensure sustainability of oil and gas production from old ageing fields to handle increasing level of liquid, its efficient processing and declining pressure. The Project will also meet sales specifications of crude oil and better safety & reliability requirements. All 7 (nos.) technical bid packages for the project have been prepared, based on which EPC tendering activities have been initiated by ONGC.

- EIL has prepared FEED Packages for implementation of Enhanced Oil Recovery System through Polymer Injection at Mangala Oil Fields of Cairn India Limited at Barmer, Rajasthan. The Company is also providing PMC services for Cairn''s Associated Facilities Project at Mangala Processing Terminal. Associated Facilities comprise of Storage Tanks & Export System, Power Generation & Distribution System and Integrated balance works which shall enhance production capacity of the Terminal from 100 KBOPD to 175 KBOPD. Engineering and ordering activities are in advance stage of completion while construction activities are in progress.

- EIL has also completed PMC services for ONGC''s Additional Gas Processing Facilities (AGPF) Phase-IV at Hazira.

Strategic Storages

Energy security is of strategic importance in the current global geo-political climate. Taking cognizance of the nation''s heavy dependence on imported crude oil, Government of India (GoI) is creating facilities for storage of crude oil using underground unlined rock cavern storage technology.

Under the Strategic Storage Program (Phase-I) of GoI, EIL is providing PMC services for crude oil storage projects presently under construction at three locations viz., Vishakhapatnam, Mangalore and Padur (Karnataka). During the year, significant progress has been achieved at all the three locations.

EIL has been striving to adopt the latest technologies for cavern storage and engaged foreign back-up consultants for the projects at Vishakhapatnam and Mangalore. Through this process of knowledge assimilation, EIL has been able to execute the project at Padur without engagement of any foreign back-up consultant except review by experts for design of critical items related to the containment of stored products.

Under Phase-II of the Strategic Storage Program, EIL was assigned to prepare DPRs for storage of crude oil in unlined rock caverns at Padur & Chandikhol (Odisha); in-ground concrete tanks at Rajkot (Gujarat) and solution-mined salt caverns at Bikaner (Rajasthan). As storage in solution-mined salt caverns and in-ground concrete tanks are to be implemented for the first time in the country, foreign back- up consultants were engaged during the preparation of DPR. The DPRs for the aforesaid four selected sites have been completed and are under review by ISPRL.

Metallurgy

The following key Metallurgy projects were completed or are under advance stage of completion:

- Engineering services to Aditya Aluminium Smelter (capacity 360,000 TPA) project of Hindalco Industries Ltd. (HIL) at Lapanga, Odisha have been completed.

- Revalidation of Pre-feasibility Report of Aluminium Smelter & Captive Power Plant (CPP) Project of NALCO at Sundargarh, Odisha has been completed.

- Study and preparation of detailed scope towards technical consultancy services for capacity utilization of Mishra Dhatu Nigam Limited, Hyderabad has been completed.

- Fourth Stream Upgradation Project (from 0.525 MMTPA to 0.7 MMTPA) of NALCO Alumina Refinery at Damanjodi is under advance stage of completion.

- Engineering and procurement services for Fume Treatment Plant (FTP) at NALCO, Angul are nearing completion.

- Rectiformer Replacement of Hirakud Smelter of HIL is under advance stage of engineering.

Infrastructure

In the Infrastructure sector, EIL is providing various services such as Project Management,Third Party Inspection, Quality Assurance, Independent Engineer & Lender''s Engineer, Project Appraisal and project execution on ''Deposit Concept''. The Company has executed projects for many reputed organizations which include:

- PSUs/Autonomous Organizations: Oil Industry Development Board, Rajiv Gandhi Institute of Petroleum Technology, Oil & Natural Gas Corporation, Hindustan Petroleum Corporation Limited, Airports Authority of India and Sardar Sarovar Nagar Nigam Limited.

- Urban Development Agencies: Municipal Corporation of Delhi, New Delhi Municipal Council, Jaipur Development Authority, Delhi Jal Board and Pune Municipal Corporation.

- Educational Institutions: Indian Institutes of Technology, Delhi University, Institute of Genomics & Integrative Biology, Regional Centre for Biotechnology and Indian Institute of Information Technology.

- Ministries: Ministry of Home Affairs and Ministry of Environment & Forests.

- Airports: Delhi International Airport Limited, Mumbai International Airport Limited and Bangalore International Airport Limited.

- Other statutory bodies: Unique Identification Authority of India, Depa rtment of Income Tax etc.

- International clients: GASCO.

The current year marked EIL''s foray into infrastructure projects in the international market also. The Company secured the job for Annual Inspection of facilities for GASCO against stiff competition. The services were completed within the contractual period.

Efforts are being made to secure more projects in Airports, Sustainable Urban Development, Intelligent Green Buildings etc.

The following infrastructure projects were completed during the year or are under advance stage of completion:

- Construction of Data Centre Complexes for UIDAI at Manesar & Bengaluru.

- Technical Audit of project cost estimate incurred by Mumbai International Airport Limited.

- Technical Audit of automotive test track at Pithampur.

- Bid Management services for up-gradation of ONGC Nhava Supply Base.

- Construction of Institutional Buildings for Delhi University and Rajiv Gandhi Institute of Petroleum Technology at Jais (U.P.) & Sivasagar (Assam).

- Construction of Biotech Science cluster at Faridabad.

Fertilizers

Fertilizer sector is expected to achieve significant growth in near future. Recognizing this, EIL has embarked on leveraging its capabilities and global network to develop competencies in fertilizer sector. By virtue of consistent efforts, EIL''s re-entry into fertilizer sector has culminated into successes.

The following initiatives and assignments in fertilizer sector are worth mentioning:

- Fertilizer Association of India (FAI) entrusted EIL with the preparation of Cost Estimates for both Brown Field and Green Field Projects with capacity of 2200 TPD Ammonia and 3850 TPD Urea with all associated facilities so as to enable FAI to give requisite input for formulation of new Urea Policy. EIL has successfully completed the assignment.

- Detail engineering assignment for Indogulf Fertilizer for their revamp project of Ammonia and Urea plant at Jagdishpur is nearing completion.

- Capitalizing on the availability of cheap feedstock at strategic overseas locations for new fertilizer projects, EIL roped in its global network to bag some key international projects. PMC services for world''s largest single train Urea plant complex in Nigeria for Indorama is a recent success in this area. Efforts are on to maintain this momentum by securing more upcoming fertilizer projects in India and abroad.

- EIL is considering an investment in joint venture for revival of FCIL- Ramagundam Fertilizer Project.

Water and Waste Management

In this sector, EIL has secured a consultancy assignment for developing a Tertiary Treatment Reverse Osmosis plant at Koyambedu, Chennai. The Company intends to focus on integrated water management covering the gamut of water block packages, source apportionment studies etc. EIL will continue to target engineering consultancy, PMC opportunities as well as EPC projects in this sector.

Power

EIL continued efforts to ramp up its power sector operations and secured additional business in Nuclear, Solar & Conventional Thermal Power projects.

- Nuclear

In Nuclear sector, EIL has secured a major project from Nuclear Fuel Complex (a unit of Deptt. of Atomic Energy) for providing Detailed Engineering Consultancy Services and Construction Supervision for certain key processes of a Greenfield Nuclear Fuel Complex at Kota, Rajasthan. This new complex will produce Natural Uranium Fuel bundles to cater to the fuelling requirements of new 700 MW Nuclear Power Plant being setup by NPCIL.

EIL also bagged an assignment from Heavy Water Board for carrying out Design Adequacy Re-Evaluation of Equipments, Structures and Piping systems of Heavy Water Plant, Manuguru. NPCIL entrusted EIL with additional assignments for Kudankulam Nuclear Power Project Unit - 3 & 4 leveraging the Memorandum of Cooperation between the companies.

- Conventional Thermal Power

EIL has bagged the order for DFR for 22 MW CPP expansions of ONGC, Uran. In addition, EIL has been awarded PMC services for installation of 160 TPH Utility Boiler Package at BORL, Bina with completion schedule of 15 months.

EIL is presently providing EPCM services for CPP of I REP, Kochi as also for GAIL at Pata & Vijaipur i.e. by designing and integrating separate package for Gas Turbines, Utility Boilers, HRSGs and BOP.

EIL has also made an entry into 660 MW supercritical power area by providing Specialist Consultancy Services viz. Verification of Contracting strategy, Cost Implication of Side Mill v/s Front Mill Arrangement, Life Cycle Operation and Maintenance (O&M) Schedule for 2x660 MW capacity coal fired supercritical thermal power plant of Odisha Power Generation Corporation (OPGC) at Jharsuguda, Odisha.

- Solar

EIL recently completed 5MW Solar PV Power Project (under National Solar Mission Phase-I, Batch-II) of GAIL well within the given schedule of 11 months. The plant is continuously generating power and feeding to the Rajasthan State Grid.

Engineering assignment for 1 x 125 MW Solar Thermal Power Project of Reliance is nearing completion. In recognition of EIL''s proactive approach in the project, EPC contractor AREVA has entrusted EIL with five additional add-on orders for Engineering Consultancy Services for Civil/Structural Design, Design & 3D modeling of Interconnecting Piping Systems, Earthing/Lightning Protection, E&I & Communication Network of Solar Block and inspection & construction supervision services.

Turnkey Projects

EIL is executing turnkey projects either on LSTK mode or on the ''Open Book Estimate (OBE)'' basis. Substantial progress was made in following OBE jobs during the year:

- Mangalore Refinery Expansion Phase-III project of MRPL consists of 3 nos. OBE convertible to LSTK jobs viz., PFCC, SRU Block and PP. Out of these, SRU block is mechanically completed and partly commissioned; PFCC is mechanically completed and is under commissioning. Construction activities are in progress for PP unit.

- Further, SPM and associated facilities for MRPL Phase-III project is being executed on OBE mode.

- South Jetty Development Pipeline project for loading/unloading of petroleum products and crude oil for IOCL Paradip Refinery progressed well.

- The Onshore Gas Terminal Project of GSPC at Kakinada, Andhra Pradesh achieved significant progress during the year. Mechanical, Electrical and Instrumentation activities of the project are in full swing.

- For 20,000 TPA Butene-1 Unit of IOCL''s Panipat Naphtha Cracker Project (PNCP), detail engineering and procurement activities are in the advanced stage of completion.

Overseas Assignments

EIL''s global expansion plans were bolstered during the year with the securing of following assignments:

- Technical services to WIKA for 10,000 TPA Bitumen Plant in Indonesia.

- Technical support services to GASCO, Abu Dhabi.

Following assignments have been completed or good progress has been achieved during the year:

- Design & detail Engineering Services contract with EPC contractor NPCC for Qusahwira Field Development (1.8 MMBOPD) project of ADCO, Abu Dhabi has been completed. Project consisted of two gas & crude receiving/separation stations, 43 oil/gas/water injection wells, and 102 km long crude/gas transfer pipelines. EIL teams stationed at Abu Dhabi are presently supporting construction work.

- Design, engineering and preparation of FEED Package for 431 MMSCFD New Flare System at Central Gas Processing facilities, Turkmenistan for Dragon Oil (Turkmenistan) Ltd, Dubai was completed during the year. With this, a new beginning was made with an important client in Dubai.

- EIL is providing PMC services for Rehabilitation and Adaptation Projects of Skikda and Algiers Refineries of SONATRACH, Algeria. In both the Refineries, various processing units and associated utilities/offsites are being revamped. New Secondary Processing units are also being added. As part of PMC contract, EIL has completed the Phase I & II i.e. FEED and Technical evaluation of bids. Phase-III i.e. managing implementation and commissioning of projects is in progress.

- PMC Services for EPC Phase of Habshan Acid Gas Flare Recovery Project of GASCO, Abu Dhabi is progressing well.

- Engineering services assignments of BAPCO, Bahrain was completed during the year.

- EIL is also providing PMC services for 5 nos. Pipeline Projects of GASCO.

Engineering

During the year, the Engineering Division of EIL continued with efforts towards providing efficient and value added services for all ongoing projects of the Company. Special focus was put on improvement of systems, 3D Model based working, automation & customization of work processes, smooth and trouble free data transfer and information exchange as well as training and manpower development. Some of the major assignments completed during this period are given below:

- Engineering for procurement, for the first time, of Hot Gas Power Recovery Expander Generator of 12 MWe rating handling hot flue gases at around 760 °C for FCC unit of IREP, BPCL- Kochi Refinery.

- Engineering for procurement, for the first time, of a multi-stage inert gas vacuum package for Wax Plant of NRL comprising of a hybrid system of roots blower, liquid ring vacuum pump and liquid ring compressor handling gas between inlet vacuum of 0.1 ata and discharge pressure of 2.3 ata.

- Feasibility study and engineering for procurement, for the first time, of a hybrid ejector vacuum pump package for CDU-4 Project, BPCL-Mumbai & CDU of IREP, BPCL-Kochi, resulting in significant reduction in steam consumption.

- Feasibility Study & incorporation in specification for Pure & Purge oil mist lubrication for increase of bearing life of pumps of IREP, BPCL-Kochi.

- Incorporation of innovative ideas of Long Term Service Agreement and exhaust gas energy loading in Engineering for Procurement of 3x34.5 MWe Gas Turbine Generator Packages thereby specifying bid comparison based on life-cycle costing concept.

- Feasibility study and engineering for procurement, for the first time, of 2x25 Mwe & 1x 9 Mwe Steam Turbine Generator Packages for GAIL-Pata Project & 1x15 Mwe Steam Turbine Generator Packages for GAIL-Vijaipur Project.

- Study report on comparison of Gas Engine Generator with the conventionally used Gas Turbine Generator of about 8.5 MW rating for Gangavaram LNG Plant based on the life-cycle costing concept.

- Study report on comparison of Gas Engine Generator of 25-500 KVA rating with similar rating Diesel Engine Generator conventionally used on Pipeline SV stations for Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline based on life-cycle costing concept.

- Development of Design Basis Reports/Specifications for NFC-Kota Composite facility for PHWR Fuel Fabrication Facility & TPY Zircaloy Fabrication Facility at Rawatbhata , Rajasthan.

- Generation of Concept Notes, Design Basis report, Technical Specifications, Scope of supply etc. for all package items including HVAC, Centrifugal Chillers, Hydrogen and Oxygen generation package, Material handling etc. for Balance of Plant area of Kudankulam Nuclear Power Plant of NPCIL.

- Design, engineering and construction of facilities for the manufacture of fuel bundles for various nuclear power plants of Nuclear Fuel Complex. The complete detailed engineering including new schemes for automation of the plant is being done by EIL.

- Engineering for procurement including basic design and engineering of Petroleum Coke Handling system (total conveying length of approx. 3 Km) for Integrated Refinery Expansion Project, BPCL-KR at Kochi having 3 Pipe Conveyors of design capacity 750TPH and fully covered and environment friendly Coke Storage Yard of 120 m diameter with circular type Stacker-cum- Reclaimer.

- Engineering for procurement, for the first time, of Wax slabbing and packing machine for NRL Wax Project.

- PMC services for 5MWe Solar Photo Voltaic Power project of GAIL in Rajasthan.

- Detailed engineering of 15 MW Captive Power Plants of GAIL at Pata & Vijaipur.

- Detailed engineering of 125MWe Solar Field of Areva at Jaisalmer.

- Detailed engineering of 129" diameter Refractory lined piping of RR Section of PFCC unit of BPCL Kochi.

- Fully Automated hydraulic operated Instrumentation Safety Shutdown system for Unmanned Offshore Well Head Platform of ZADCO, Abu Dhabi.

- Study and analysis for implementation of Radiological Safety for Nuclear Fuel Complex, Rajasthan for compliance with enhanced safety regulations of AERB.

- Integrated perimeter security and surveillance system, anti-intrusion detection system for first time in Nuclear Fuel Complex of NPCIL.

- Detailed feasibility report for the construction of Offshore Missile Launching Platform and Torpedo control for Naval Science Technology Laboratory (NSTL), Vizag.

- Design of remote metering and monitoring of Solar Steam Generator (SSG) of Solar field area project with about 200 nos. of Reflector Control Panel (RCP) of RSTEPL, Rajasthan of Reliance Group.

- Design of LNG Double walled cryogenic storage tank prototype for 1,60,000 m3 capacity.

- Engineering & installation of heavy weight columns of 1200 MT (C3 Rectifier & C3 Stripper) for MRPL - PFCCU and very heavy walled SS vessel of 126 thk for GAIL Vijaipur.

- Engineering for C3 Splitter column in GAIL Pata. Optimal size was suggested to licensor resulting in about 100 MT saving.

- Design of Heat exchangers with double bundles for BCPL and HP Exchanger DEU type for NRL & GSPC for the first time.

- Design & procurement for 9 % Ni steel sphere for OPaL.

- Techno-commercial feasibility study for Aluminium Dome roof tanks.

- Software for Vessel design for nuclear applications as per ASME Section III is being developed.

Project Services - Planning

Planning Division continued to provide critical planning services to various projects. Using state-of-the-art tools and its database, the division caters to diverse project execution roles of the Company viz. EPCM, PMC, LSTK/OBE.

Planning Division utilizes Primavera, PERT Master and various in-house software packages for project planning, scheduling, monitoring, project risk management and material control activities both at Head Office and various project sites. Apart from providing services for all the projects undertaken by EIL, the Division continued to provide project monitoring services to Ministry of Petroleum and Natural Gas.This Division also supports man- hour control, manpower planning, project risk management and project drawing/material control activities of the Company.

Project Services - Costing

Costing Division provides services such as preparation of cost estimates and economic analysis in diverse activities ranging from technology selection to preparation of feasibility reports. It also provides other project cost related support such as cost monitoring and control during execution of projects under conventional and LSTK mode of execution. The vast database and capabilities help in providing valuable support for bid evaluation and award of major contracts as well as in providing effective cost control services.

Construction

Construction Division continued to provide Construction Management Services for various clients at 37 domestic project locations and 6 overseas locations. The Division offers services for total Construction Management including Contract Administration, Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse Management for projects in Petrochemicals, Refineries, Cross-country pipelines, Gas Processing Complexes, LNG Terminals, Non-ferrous Metallurgy and Offshore industry.

Concurrent prestigious commitments for the Division include MRPL Phase-III involving 4 OBE contracts (except PPU all others are in commissioning phase), OPaL Petrochemical at Dahej, BCPL Lepetkata, OGT, GSPC Kakinada, Wax project, NRL, DBPL Pipeline, Integrated Refinery Expansion Project at Kochi, CDU/VDU-IV Project at Mumbai for BPCL & PMC service for Mangala Field Development Project for Cairn Energy at Barmer.

Construction activities commenced for the following major projects during the year:

- Integrated Refinery Expansion Project of BPCL, Kochi

- CDU/VDU-IV Project of BPCL, Mumbai

- Mumbai-Manmad-Manglaya-Bijwasan Pipeline (MMBPL) capacity augmentation Project of BPCL

- Butene-1 of IOCL at Panipat on OBE basis

- Hazira-Dahej Naphtha Pipeline (HDNPL) Project of ONGC

- Mangala Field Development Project of Cairn Energy at Barmer.

The highly skilled & motivated EIL construction team has been instrumental in establishing & monitoring adherence of construction Quality Management system comprising of Quality Plans, test plans including record keeping (FIR), monitoring special processes for concreting, welding (involving latest NDT techniques, radiography, ultrasonic test etc) during all phases of construction to ensure trouble free commissioning/operation of critical units.

EIL attaches high importance to HSE policy in execution of all its projects and achieved following accolades:

- 50 million LTA free man-hours at Dahej Petrochemical Project of OPaL.

- 50 million LTA free man-hours at Assam Gas Cracker project of BCPL.

- Certificate of Appreciation by National Safety Council for PFCCU Project of MRPL.

- 18.04 million LTA free man-hours at DBPL project of GAIL.

- 12.4 million LTA free man-hours at Petrochemical Complex -II project of GAIL.

- 40 million LTA free man-hours at Rehabilitation & Adaptation of Skidda Refinery Project, Algeria for SONATRACH.

Five officers from Construction acquired the certification of OHSAS 18001 lead auditor course.

Process Design & Development

Prominent jobs undertaken by the Process Design and Development Division during the year include the following:

- Detailed Feasibility Report for Integrated Refinery Expansion Project of BPCL''s Kochi Refinery from 9.5 to 15.5 MMTPA capacity by value addition of streams and bottom up gradation facilities. Other activities carried out on this project are :

- Process Design of open art Units like CDU/VDU, SWS, ARU and Utilities and offsites and over all integration of all facilities.

- Licensor Selection and Detailed Engineering activities for the Petrochemical FCC, DCU, VGO HDT, TGTU, DHT units.

- Detailed Feasibility Report for Coal to Liquid Project for Government of Meghalaya.

- Study for production of 100% EURO-IV Grade Gasoline for Numaligarh Refinery Limited.

- Pre-feasibility Report for Nagarjuna Oil Corporation Limited for expansion of Cuddalore Refinery from 6 MMTPA to 12 MMTPA.

- Techno economic feasibility study for 6 MMTPA expansion of Numaligarh Refinery for identification of most optimum configuration for processing 100% PG crude.

- Capacity expansion and configuration study for IOCL''s Gujarat and Panipat Refineries for additional crude processing and value addition.

- Process Design and Engineering Package for Visbreaker Unit at IOCL''s Mathura Refinery & HPCL''s Vizag Refinery and achieving incremental yield by replacement of Soaker Internals in collaboration with IIP, Dehradun.

- Installation of Waste Heat Boilers in the Biturox unit of Mathura Refinery to enhance Waste Heat Recovery from flue gases by achieving steam generation.

- Techno economic feasibility study for Ethylene Derivative project at IOCL''s Paradeep Refinery to examine various possible options of monetizing the Ethylene from FCC off gases.

- Detailed feasibility report for a state-of-the-art Refinery-cum-Petrochemical Complex for HPCL in Rajasthan. The refinery capacity is 9MMTPA, with maximization of Petrochemicals like Polypropylene and Polyethylene.

- Consultancy service for licensor selection and detailed feasibility study for Polybutadiene Rubber Project of GAIL & ONGC to be set up at Dahej, Gujarat. The project intends to utilize the 1-3 Butadiene produced from OPaL, Dahej and produce 110 KTPA Polybutadiene Rubber.

- Detailed feasibility study for a Propylene-based Petrochemical Complex at Kochi. This project, to be set up in JV mode by BPCL and LG Chem, intends to produce Oxo alcohols, Acrylic Acid, Acrylates and SAP from Propylene produced from BPCL''s Kochi Refinery.

- Due Diligence study for 6 MMTPA Cuddalore Refinery of Nagarjuna Oil Corporation Ltd. for ONGC.

- Detailed feasibility report for production of Cumene/Phenol for GAIL by utilizing 50 KTPA Propylene produced at the Company''s Pata Complex.

- Configuration study and detailed/feasibility study report for HPCL''s Mumbai Refinery for capacity expansion from 7.5MMPTA to 9.5 MMPTA.

- Utilization of C4 streams from Panipat Naphtha Cracker Complex to produce MTBE, Butene 1, MMA and PMMA.

- Configuration study and capacity expansion study for BPCL''s Mumbai Refinery for enhancing crude processing from 12 MMTPA to 14MMTPA.

- Successfully commissioned 3 MMTPA CDU/VDU designed for processing Arab Mix and Mumbai High Crude for MRPL.

- Successfully commissioned ONGC''s Hazira Gas Processing complex with MDEA based Gas Sweetening Unit, Gas Dehydration unit and Dew Point Depression unit.

- Residual and detailed engineering of Wax Production facilities of Numaligarh Refinery.

- Residual and detailed engineering of a grassroot Crude Distillation Unit (CDU-4) at BPCL''s Mumbai Refinery for 6.0 MMPTA crude processing capacity.

Research & Development

It has been EIL''s endeavour to foster the spirit of innovation and creativity in the organization in order to continuously enhance the quality of its services to clients by providing value addition and leveraging technological advances. Research and Development (R&D) Division plays a significant role in achieving this objective by way of consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related services. R&D Division is pursuing developmental activities, both in house and in collaboration with academic institutes, other R&D organizations like IOCL-R&D, IIP, BPCL (R&D) and cooperating with smaller companies to promote the creative ideas generated by them.

During the year, the Division has undertaken the following initiatives for development of new capabilities and up- gradation & commercialization of existing capabilities:

- The major initiative taken this year was preparation of R&D Policy and detailed R&D Plan and its approval by the Board of the Company.

- The R&D Division completed the identified projects under MoU with MoP&NG well in time.

- An MoU was signed with Forbes Marshall Pvt. Ltd. to work jointly on developing ''Energy Efficient Steam Traps'' developing ''Large Size Ejectors'' for suitable applications and offering ''Energy Audit Services'' to chemical industries wherever possible.

- Enhancement of Computational Fluid Dynamics (CFD) facilities/capabilities by up-gradation of FLUENT 6.3 2007 release to ANSYS FLUENT release 14.5 and installation of the same on dedicated workstations. CFD modelling extensively deployed in the ongoing projects such as CTL, Improved Feed Inlet Device for columns and also in several troubleshooting and safety studies.

- The Centre for High Technology (CHT) sponsored Coal to Liquid (CTL) technology development project undertaken in association with BPCL (R&D) is progressing well.

- Micro & bench scale reactors have been procured and installed at BPCL and kinetic studies completed.

- At EIL, cold flow slurry bubble column pilot facility has been installed. The data generation and analysis have been completed.

- Procurement of pilot facilities for Synthesis Gas clean-up pilot facility is in progress.

- Fabrication of gasifier and civil work is in progress.

- Thermo Gravimetric Analyzer (TGA) for Coal/ Feed characterization has been Commissioned and experimental work has commenced as part of Gassifier Development.

- Technology development projects initiated during the year :

- Development of Process Design for Ammonia Recovery from Sour Water Stripper ammonia rich stream by converting to ammonium sulphate project has been completed successfully.

- Development of Process Design for CO2 Recovery from flue gas by Amine solvent project has been completed successfully.

- Development of Pinch analysis capability for minimization of waste water and fresh water usage. Based on the capability developed, EIL secured two jobs for minimization of fresh water usage and waste water generation using pinch technology at Gujarat and Guwahati refineries which are under execution.

- Technology commercialization:

- FGH technology indigenously developed by EIL and IOCL has been adopted by Guru Gobind Singh refinery (HMEL). The unit commissioned in May 2012 is producing food grade hexane (IS 3740-2002).

- Activities have started for setting up demonstration unit at Guwahati refinery for demonstration of INDADEPT technology developed jointly by IOCL & EIL for deep desulphurization of gasoline with funding from OIDB. Basic design package for the unit completed in association with Process Department.

- R&D has successfully completed the job of preparing BDEP for the High Melting Explosive (HMX) production unit of Terminal Ballistic Research Laboratory (TBRL). This is a DRDO project of national importance. Working in close association with scientists from TBRL, the plant capacity has been scaled up and a significant level of automation has been achieved.

- EIL continued its successful commercialization of CFC technology developed along with IOCL-R&D. Three more LPG treating units (one unit for BPCL Mumbai and 2 units for BPCL Kochi) have been designed based on this technology.

- Developed basic design and engineering package for flue gas Desulphurization for Demonstration of SO2 Recovery Process (SOR) Technology at NRL.

- Based on its capability for setting up Laboratory facilities, R&D has been instrumental in securing the following jobs:

- PMC role for setting up laboratory facility for Quality Control (QC) Lab of OPaL

- PMC role for setting up laboratory facility for QC Lab of Paradip Refinery

- PMC role for setting up laboratory facility for QC Lab of BCPL, Lepetkata

- QC&HPU Labs for Nuclear Fuel Complex, Kota.

- Patents

- Based on innovative work done, the Division has filed one patent titled "An apparatus and Method for Treatment of a Sour Stream"

- A new patent for the "Process for Purification of Liquid Sulphur" has been granted.

With this the number of live patents with EIL stood at 13 with 17 patent applications filed.

Plant Operation and Safety

The Plant Operation and Safety Division (POSD) of EIL continued to provide services in the following areas during the year:

- Process design for offsite facilities of refineries, petrochemicals, gas processing units, oil terminals, onshore terminals, topsides of strategic storages (underground caverns), cross country pipelines, LNG terminals, etc.

- Safety related studies like Hazard and Operability Study (HAZOP), Hazard Identification (HAZID), Risk Analysis & Quantitative Risk Analysis (QRA), Safety Integrity Level (SIL), Safety Audits, Safety Reviews and Emergency Planning.

- Pre-commissioning & commissioning of process plants, Utilities & Offsites in refineries, petrochemical and gas processing areas, terminals of crude oil, product and LNG and pipelines, etc., including total responsibility for LSTK projects and Operating Manuals preparation.

The following major assignments were completed/were in progress during the year:

- Process Package for Dahej LNG terminal Phase-III expansion from 10 MMTPA to 15 MMTPA for Petronet LNG Limited (PLL).

- Process Package for LNG terminal at Gangavaram for PLL.

- Process Package of additional LNG tankage for Shell Hazira Pvt. Ltd.

- PMC services for capacity enhancement of Mangala processing terminal at Barmer for Cairn Energy.

- Process design of offsites facilities for GAIL Petrochemical-II project.

- Process Package for offsites facilities of IREP, BPCL- Kochi.

- PMC services for GASCO Pipelines.

- Process Package for Polymer Injection Pipelines for Enhanced Oil Recovery project of Cairn Energy.

- Process Package for Mehsana-Bathinda Pipeline of GIGL.

- Process Package for revamp of pump stations, terminal and other facilities of the Naharkatiya-Barauni Pipeline of Oil India Ltd.

- Process Package for Mallavaram-Bhopal-Bhilwara Pipeline of GITL.

- DFR for Strategic Storage Phase-II at Rajkot, Padur, Bikaner & Chandikhol for ISPRL.

- Process Package for Dabhol-Bangalore Phase-II Pipeline.

- PMC/EPCM services for Topside facilities for Strategic Storage of Crude Oil at Padur, Mangalore & Vishakhapatnam for ISPRL.

- Based on in house developed design capabilities, Process Package for design of Vapour Recovery System of MRPL Phase - III project completed.

- Process Package for design of Vapour Recovery System of GAIL Petrochemical-II Project.

The Division has successfully executed the following major commissioning assignments during the year:

- DHDT Project of Bongaigaon Refinery of IOCL which is the first refinery in the country to adopt the indigenous technology developed by EIL-IOCL R&D Consortium.

- CDU/VDU, Utilities & Offsites and ARU, SWS of MRPL Phase-III Project.

- CDU/VDU-II of CPCL, Chennai.

- Additional Gas Processing Facilities of ONGC Hazira.

- SPM and associated onshore and offshore facilities at Mangalore.

- Dabhol-Bangalore Pipeline Phase-I of GAIL.

- Vijaipur Borari loop section of Vijaipur-Kota Pipeline.

- Chainsa & Kailaras Compressors station of Vijaipur- Dadri pipeline.

- LNG Terminal at Dabhol of RGPPL.

The following pre-commissioning/commissioning activities were under progress.

- SRU & PFCC of MRPL Ph-III project.

- GSU, C2 Recovery units of BCPL, Lepetkata.

- Onshore Gas Terminal of GSPC, Kakinada.

- DFCU, LLDPE Swing, HDPE, PP, Butene-1 units of OPaL, Dahej

- Augmentation of Kota - Piyala section of Mumbai- Brijwasan Pipeline.

- Vijaipur-Kota Pipeline of GAIL.

- Butadiene Extraction unit & Offsite facilities of IOCL, Panipat

The Division continued its efforts in securing new business in both domestic and overseas markets and undertook following major studies during the year:

- Safety Analysis report for construction of Nuclear Fuel Complex, Kota.

- Quantitative Risk Analysis (QRA) for BPCL-Mumbai & IOCL-Mathura Refineries.

- What-if Analysis of SALPG above ground facilities modified portion.

- HAZOP studies for various units of GAIL Petrochemical- II project.

- HAZOP study for Hydrocracker unit and SRU/ARU/SWS units of BAPCO, Bahrain

- Setting up of BAPCO''s ICS Laptop based on PHAST Runs on Risk Scenarios.

- Gas Dispersion modeling study of release to atmosphere from safety valve in GCU GAIL, Pata.

New business initiatives like O&M services to industry are in progress.

Heat and Mass Transfer

The Heat and Mass Transfer Division (HMTD) of EIL continued to provide thermal/hydraulic/mechanical designs for Fired Heaters, Cast/Glass Air Preheaters, Mass Transfer Systems (column trays/packing etc), Sulphur

Recovery Equipments and Ejectors in addition to thermal design of Heat Exchangers & Air Coolers for various projects including BPCL-IREP, BPCL-CDU-4, GAIL etc.

Further, equipment of Utility Boiler and Heat Recovery Steam Generator (HRSG) were also included in HMTD''s area of operation.

The Division also continued to provide process services for offshore jobs of ONGC, GSPC, ZADCO and ADMA-OPCO.

The Division undertook many jobs where various innovative /value added specialist services like feasibility study, troubleshooting were provided. Some of the key achievements are as follows:

- A prestigious job was undertaken for conceptual study and design for HC removal from existing glycol regeneration unit of ZADCO, Abu Dhabi. Study broadly covers identification of root cause, possible mitigation measures and suitability for installation of selected equipment within existing space constraints. Second phase of the project includes design and engineering of the scheme selected with client and preparation of EPC scope of work.

- HMTD in association with EIL R&D has developed BDEP for the Desulphurization system of INDAdeptG process. This system is based on Caustic scrubbing for removal of SO2 from the circulating combustion air system for INDAdeptG unit of IOCL-Guwahati Refinery. Salient features of this system include in-house development of process scheme using Caustic as reagent; De-SOx system expected to bring down SO in circulating gas to as low as 50 mg/Nm3; Effluent generated from the system can be treated in ETP and disposed off safely. The unit is configured to have minimum number of equipment and smaller plot space.

- HMTD provided services to IOCL, Mathura for Revamp of CDU heaters corresponding to 11 MMTPA including replacement of convection sections, burners. The job included complete health assessment and execution in modular form after identification of constraints. Basic engineering data along with burner technical / tender specifications have been furnished to enable execution by client to meet the challenging shutdown requirements in a fast & reliable manner.

- A study was carried out for performance improvement & enhancing the capacity of CDU-I heaters of IOCL, Haldia Refinery. Client has been facing chronic problems of high flue gas temperatures/ flame impingement in one CDU heater.The study involved site survey & suggesting alternatives for achieving the target duty. Study also included examination of various heater components and evaluation of the feasibility of replacement within existing constraints.

- HMTD rendered services for IOCL, Gujarat Refinery for study of replacement of conventional burners with low NOx burners. Job also includes study of replacing existing plenum-mounted arrangement with state-of- art technology and improvement of thermal efficiency scheme with respect to latest fan philosophy.

- Optimization of multi-stage ejector system design with respect to steam consumption has been carried out evolving the revised model / correlations for ejector design. Validation /testing activities through proto-type are planned to complete the development process. Optimization of vacuum ejector condenser design is already completed.

- HMTD has developed comprehensive range of PARLPAK & PARLGRID series of packings along with M/s. Kevin. Testing of different types of structured packings have been carried at EIL-R&D and data has been collected for development of PARLPAK - Ace Series (i.e. High Capacity Packings). Advanced versions of Vane Type Inlet Feed Devices have also been conceptualized and validation is in progress .

Specialist Materials and Maintenance Services

The Specialist Materials and Maintenance Services (SMMS) division of the Company continued to provide specialist services to its clients in Petroleum, Petrochemical, Metallurgical, Nuclear and Infrastructure sectors during the year. Some of the important activities are:

- Fitness for service study for HVJ Compressor Station at GAIL, Vijaipur; Health Assessment study of Sockolet joints at South Asia LPG, Vizag, Repair and Certification of Mounded Storage Vessel at GAIL, Usar.

- Condition Assessment of 30" Crude Pipeline, CPCL, Chennai; Modification of Insulation and Fireproofing of LPG spheres at HOCL, Kochi, Technical Support during Refractory application in CPCL, Chennai.

- Refractory Lining modification in Mangalore Chemical & Fertilizer Ltd., Water Pinch study at Gujarat Refinery and Guwahati Refinery of IOCL, Review of Neutralization Procedure for Austenitic Stainless Steel Equipment at Ruwais Refinery,Takreer, UAE.

- Technical Evaluation of Replacement Requirement of 18" dia. Pipeline from CTF, Nawagam to Koyali Refinery, Engineering Consultancy Services for Intelligent Pigging for two PLRP Project of ONGC; Technical advisory services to HPCL Vizag and to various refineries of IOCL.

- Material selection for equipment, piping and pipelines for various on-going projects viz., MRPL, OPaL, BCPL, NPCIL, Nuclear Fuel Complex , GSPC, BPCL Mumbai and IREP of BPCL, Kochi.

SMMS has been advising and specifying on the Corrosion Monitoring Systems, Inhibitor Injection Systems, Corrosion Protection Coatings, Cathodic Protection Systems for On- shore and Off-shore pipelines and Chemical Cleaning Systems for new plants.

SMMS has been actively involved in evaluating newer materials, fabrication and inspection techniques for the benefit of industries and have also contributed to the National and International Standardization bodies like BIS and ISO.

Environmental Engineering

Continued increase in resource use and the related environmental impacts can have a multitude of negative effects leading to ecological crises and security threats. The sustainable use and management of natural resources have therefore come into focus and has been the subject of many policy discussions. EIL works with both industries and state municipalities to deliver cost-effective and environmentally sustainable solutions for resource & waste management.

Our expertise assists in better conservation of environment and eco-system by means of effective solutions for solid & hazardous waste management, resource recoveries & conservation, liquid effluent treatment & recycle, industrial emissions management etc. Our researchers are helping solve waste management challenges by commercializing innovative technologies & cleaner processes and developing new waste remediation techniques for industries. Our processes are not only meant for mere conservation of the environment, but also ensure its protection for larger interest of mankind. In all our operations, we meet the national and international standards to keep our environment clean and green.

Improvement in the standard of living and affluence amongst the population has resulted in increase in pollution load. With a vision to diversify in specialized air pollution assessment studies, Environment Division strengthened its capability in air pollution monitoring, assessment and control. It has completed several projects in diversified fields of environmental engineering which includes:

- Water & wastewater treatment

- Effluent recycle and zero discharge projects

- Environmental impact assessment studies

- Environmental audits

- Air quality assessment, modelling & control

- Ground water monitoring studies

- Solid & hazardous waste management

- Oily sludge management

- Volatile organic carbon (VOC) & fugitive emissions control

- Site assessment and remediation

- Environmental health & risk management

- Environmental management plans

Over a period of time, the ambit of environment engineering activities in the Company has widened. Strict environment norms and growing awareness about environment among people have given an impetus for delivering effective environment solutions. Today, our clients are looking for solutions to environmental problems being faced during design as well as operation of the plants.

Some of the major achievements of Environment Division include the following:

- Water Pinch studies for IOCL for their Gujarat & Guwahati refineries.

- Consultancy services to Chennai Metropolitan Water Supply & Sewerage Board for tertiary treatment of secondary treated municipal sewage and reuse as industrial water supply.

- Implementation of Effluent Recycle Concept for OPaL and MRPL.

- Development of know how and successful research work for control of Volatile Organic Compounds and bioremediation of oily sludge in confined bioreactor for OPaL.

- Development of know-how in conservation and enhancement of biodiversity and offering services to clients.

- Development of in-house software to calculate carbon footprint and offering services to clients.

- Completion of design and engineering of water block packages of both onshore and process cum living platform of GSPC at Kakinada.

- Completion of EIA reports for BPCL Mumbai Refinery''s new CDU/VDU projects, Catalytic Cracking Reformer project and Indian Navy''s Project Sea Bird Phase-II facilities.

- Completion of comprehensive air quality monitoring works for Source Apportionment Study for NTPC Dadri Plant.

- Release of Carbon Footprint Software for computation of carbon footprint for various EIL offices.

- PMC services for Nuclear Fuel Complex at Kota including management of both active and non-active liquid & solid waste from the complex.

- Study for HMEL Bathinda Refinery to assess efficacy of pollution control measures taken

Sustainable Development

At EIL, the sustainability mandate is not just about contributing to a good cause or complying with environmental regulations but rather about operating its business in a manner that is responsible and transparent to all its stakeholders. Our project designs support sustainability right from the concept stage to plant commissioning and subsequently during the commercial operation. Energy efficiency, resource optimization and safety of plant personnel & society at large are the cornerstones of our business operations and also ensure business continuity.

EIL has refocused its engineering philosophy and business models to achieve long term sustainable growth. Alongside, EIL has initiated evaluation and reporting of its performance on the triple bottom lines of economic, social and environmental aspects. We believe that the sustainability initiatives underway at EIL will propel our organization on an upward growth trajectory.

A separate Report on Sustainable Development is annexed to this Report.

Information Technology Services

Information Technology Services (ITS) Division of EIL continued to be a backbone of EIL''s onward progress by providing critical IT enabled services during the year. This year, the focus has been to develop/implement IT solutions using state-of-the-art technology leading to improvements in systems and processes and resulting in better efficiency, cost reduction, faster execution of projects, consolidation and availability of information centrally.

Some of the initiatives implemented during the year are:

- AADHAR: A software package that facilitates re- usability of past project data from Electronic Document Management System (eDMS). This shall lead to less man-effort and cost reduction for generating required documents for the new projects.

- OPTIMA: Optima, a structural steel MTO calculation software, enables MTO generation of Structural Steel for various types of structures accurately. The software will reduce the difference between estimated and actual consumed quantities, leading to optimum structural material utilization.

- Intelligent Design Basis: An intelligent system that ensures consistency and integrity of design basis across Process Design and detailed engineering.

- E-Online: E-Online will enable standardization & integration of work flow methodology, and computerization of electrical engineering activities having interface with eDMS.

- Supplier/Contractor Document Submission System:

This software has been implemented to minimize vendor/contractor document review cycle time and to have better control & monitoring on document flow.

- Project IPMS: A Software to get Online status of MRs/RFQs by Projects. This will avoid manual intervention between Projects and C&P leading to faster procurement of various equipment.

- E-payment for vendors: As a green initiation, Electronic payment system for vendors has been implemented. Through this system payment to vendors is released electronically & vendor is able to see the status and details of payment made.

- On-line Separation/Clearance: This portal will facilitate separating employees (either on resignation or superannuation) in getting on-line clearance. Employees fill required data on-line and subsequently HR gives online clearance to the employees posted in HO or field offices.

- Employee Transfers: Employee Transfers Portal is developed to facilitate HR in issuing online Office Order for transfers. Following types of transfer are covered:

- Inter/Intra Division/Department/Directorate within same location

- Head Office to Site Offices

- Site Offices to Head Office

- Local Area Networks: New Local Area Networks (LANs) are being set up at the new EI buildings at Gurgaon & Chennai.

- EIL Connect Web Portal: To have corporate and employee related information under a single window, ''EIL Connect'' portal has been developed and implemented. Required information is updated on the portal regularly and employees are able to access the data /information on-line at any time from anywhere. Common applications like Time Sheet, Performance Management System (PMS) etc. can also be accessed through this portal.

Procurement Services

Procurement Services Division of EIL provides comprehensive and integrated end-to-end Supply Chain Management Services which includes enlistment of suppliers and construction contractors, contracting and purchasing function from issue of an enquiry to placement of an order, inspection, expediting and logistics services for deliveries up to construction sites. These activities are carried out for various projects undertaken by EIL as a consultant as well as a contractor.

Effective and efficient procurement of goods and services is a critical factor in determining EIL''s project execution success. Procurement Services Division''s thrust on implementation of newer technologies in order to enhance the efficiency and effectiveness of procurement and improved & faster deliverables has led to IT-enabling of all procurement functions in EIL. The division is continuously reviewing and upgrading IT tools towards this end.

As a step towards enhancing the transparency and fairness of its operations, the division has already implemented e- procurement as well as reverse auction for its contracting and purchasing function. This brings in better value for the project by ensuring lower operation cost as well as better prices for the supplies/services. The division has an integrated in-house ERP as well as a strong EDMS application linking all procurement functions across various geographical locations.

Procurement Services Division is fully seized of the criticality of the vital ingredients of public procurement, viz., equity, fairness and transparency and is totally focused on the same while simultaneously improving upon the efficiency of procurement.

During the year, orders for Rs.600 crores of direct purchases were placed on suppliers/contractors globally for various OBE/LSTK/Depository projects. In addition, orders for Rs.3600 crores were placed for various other clients'' projects.

EIL as a responsible CPSE is committed towards implementation of various procurement policies issued by the Govt. of India including Public Procurement Policy (PPP) 2012 for Micro and Small Enterprises. During the year, EIL procured Rs.31.73 crores of goods and services from micro and small enterprises which is 5.64% of the total value of direct orders placed by EIL.

Procurement division carried out in-process and pre- dispatch inspection of critical equipment at suppliers'' works as well as project sites through its Regional Procurement Offices located all over the country and overseas offices located in London, Shanghai and Milan. Major items inspected included GTG offshore platform facilities for GSPC project for first time at L&T Hazira, Ethylene column (96 m long, 640 MT) and C2 Splitter Column (79 m long, 409 MT) for GAIL Pata Project, Demethaniser column (39 m long, 390 MT) for GAIL Vijaipur, 18 MW Steam turbine driven Wet Gas Compressor for MRPL PFCCU project (developed for the first time by BHEL in collaboration with GE), Cold Box (23.6 m x5.18 mx5.1 m, 106MT) for BCPL etc.

Enlarging data base for capable suppliers has always been the effort of the division. Suppliers and Contractors located worldwide apply through online system available 24x7 at EIL website. Modified software and upload of technical specifications for all items helped faster resolutions on enlistment.

Quality Management System

In EIL, Quality Management System (QMS) is aligned and focused with long term objectives of the Company. Quality is inbuilt into our processes, workplace, deliverables and services.

The Quality Management System in respect of the Company''s services has been reassessed this year as per the requirement of ISO 9001:2008 by the certification agency, who conducted the renewal audit. Post audit, the certification agency declared that the QMS of the Company continues to conform to international standards and recommended for renewal of the ISO certificate. The renewed Certificate of Approval is valid up to 13.10.2015.

The important ingredients of quality initiatives are effective & comprehensive internal audit process, planned customer perception surveys, analysis of feedbacks from stakeholders and regular directions from Management Review Committee (MRC) & Systems Committee. MRC is chaired by C&MD and all Directors are members of the committee. The Systems committee is chaired by a senior ED and senior official from all areas of operation are members of the committee. Regular monitoring is done to analyze the data & feedbacks for recommending improvements in processes, products and QMS to reduce costs, shorten cycle times and improve visibility and credibility. QMS implementation and its effectiveness have been further increased by computerization of certain processes through inhouse developed softwares.

Quality Management System of EIL''s UAE (Abu Dhabi) office was also independently audited and reassessed for certification by Certifying Agency, who conducted the second surveillance audit, for its conformance to the requirement of ISO 9001:2008, during period under review. In addition, the Company participated as a prominent and active member in various committees for formulating products and quality system standards by Bureau of Indian Standards.

Quality Management System at EIL provides the competitive edge in securing and executing the projects with focus on full customer satisfaction.

Risk Management

The Company has a Risk Management policy and a supporting frame work which facilitates the identification and assessment of new risks and review of existing risks. The process is based on identified risks and the risk events or factors which require regular assessment and quick response. Based on the probability and impact of the risk, the requisite controls and action plans are designed. To measure the adequacy, effectiveness and efficiency of these controls and action plans, the concept of Key Risk Indicators (KRI) have been implemented. KRIs have been designed and are being implemented to measure presence, level, or trend of the risk.

The objective of risk management in the Company is to act as enabler in maintaining its knowledge edge, sustaining and expanding the business, being competitive and ensuring execution of projects within budgeted cost and ime resulting in improved turnover and profitability.

Risks, their root causes, controls and action plans are prepared by process owners and updated regularly. These are approved by the Risk Management Committee (RMC) with Director (Finance) as Chairman of RMC and all the Executive Directors, GM (ITS) & Company Secretary as members and Head of Risk Group as member secretary. Risk audits are conducted regularly to test the compliance of controls and the same is reported to RMC.

The status of Enterprise Risk Management (ERM) process is presented to Audit Committee on bi-annual basis which is reviewed by the Board of Directors also. The reporting structure meets the regulatory compliance.

Based on periodic reviews and implementations of recommendations resulting from review process, the ERM process is continuously being improved and strengthened. As one of the major initiative, Project Risk Management has been implemented for high value and important projects to anticipate critical risk and to take actions in advance to mitigate them. A risk register is prepared by listing all possible risk events associated with the project and approved by Risk Management Team (RMT) consisting of all disciplines associated with the project.

As advancement in this field, the risk management processes are being automated by developing Enterprise Risk Management System (ERMS) software.

The communication is being sent regularly, across the organization to spread awareness on risks, root causes and action plans through in-house risk management awareness programs, external trainings & seminars, certification program on Project Risk Management. A quarterly news letter ''Risk Screen'' has been launched during this period which is being shared with all the employees to increase their involvement & create awareness among them to control risks in their work processes & areas.

The management is committed to further strengthen its risk management capabilities in order to protect and enhance shareholder value by improving its business performance. Continuous efforts in creating new opportunities, improving competencies/knowledge in various areas leading to improved performance and leveraging existing knowledge resources, in line with the risk appetite of the company, has enabled the company to protect the shareholders interests.

Vigilance

During the year, CTE type examination of EIL''s jobs on LSTK/OBE basis, random inspection of in-house contracts/purchases, scrutiny of Immovable Property Returns, investigation of complaints etc. were carried out by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures and Government guidelines. For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/CVC were examined and necessary actions were taken. System improvements were suggested to the Management & necessary measures were undertaken for improvement.

Structured meetings between CVO, C&MD and Directors were held and the MOMs were forwarded to CVC and MoP&NG. Inter-directorate meetings were also held between CVO & Directors to resolve the pending issues. Details of Vigilance activities were presented to the Board.

Various vigilance workshops, interactive sessions, seminars, debates, Vigilance Awareness Week etc. were organized in HO, Regional, Branch, Procurement and site offices of EIL during the year for spreading vigilance awareness amongst the employees of EIL. A seminar was organized on the theme "Transparency in Public Procurement" which featured an address by General Secretary and Director (IP&CF) of Transparency International India followed by question / answer session.

Some important features of Vigilance activities are given below:

- Leveraging Technology

Reverse auctioning, e-tendering, e-payment, e-receipt, etc are already implemented in the Company and being monitored regularly against the set targets. Clearance of vendors'' bills on ''First in, First Out'' (FIFO) under Bill Tracking system (BTS) is ensured. BTS has been further improved to give details about pendency of vendors'' bills.

- Complaint Handling Policy

As per CVC Guidelines, EIL has formulated a Complaint Handling Policy (CHP) to resolve complaints/ grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is available on the Company''s website which is regularly monitored by Vigilance with respect to the status of complaints.

- Policy regarding recruitment of Ex-employees

A policy for hiring of Retired/Ex-employees on contract exists in EIL and other PSUs. Vigilance has ensured that employees who have been penalized during service are not considered for re-employment.

- Job Rotation

Job rotation of sensitive posts is being done. List of Sensitive Posts is being reviewed.

- Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all of its business dealings. EIL has adopted Integrity Pact Program & signed an MOU with Transparency International India and the same is applicable for all Contracts & Purchases on EIL''s account for enquiries having threshold value of over Rs.5 crore.

- Online Vigilance Clearance & Scrutiny of IPRs System for online Vigilance Clearance & Scrutiny of IPRs on EIL Intranet is being developed.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth. EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having adequate number of professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports are regularly submitted to the Management and the Audit Committee of the Board.

Human Resource & Industrial Relations

EIL values its human resources and is committed to providing them with an enabling environment which motivates, facilitates their growth and rewards them for their contributions. Various welfare measures, employee- centric policies and development initiatives, drive its human resource to deliver their best thereby leading to enhanced productivity.

- Human Resource Profile

As of March 31 2013, we have more than 3370 permanent employees, including more than 2950 technically and professionally qualified employees. Approximately 3.46 % of our employees are located outside India, and have experience of international work environments.

Our HR policies for talent acquisition facilitate intake of young professionals at Entry levels as well as skilled and experienced professionals at junior and middle- management level. Through focused talent development and engagement policies, individuals are encouraged to showcase their talent in their professional arena.

- Employee Welfare

Employee Welfare being a key driver of engagement is given adequate thrust throughout the year. To propagate this, 15 health camps and health talks/ programmes were organized for the benefit of employees as welfare initiative under HALE (Health Assessment & Lifestyle Enrichment) Programme, aiming at improving organizational productivity through employee health and well-being.To encourage employees to make their contribution as responsible citizens of the society, a Blood Donation Camp was organized on 15th March, 2013, EIL''s Foundation Day, wherein 80 employees volunteered for the cause.

Another significant welfare measure in EIL is organizing and participating in various sports tournaments at regional and national levels. The objective of such activities is to promote a spirit of sportsmanship and collaborative working environment. EIL is a member of Petroleum Sports Promotion Board (PSPB) and actively supports the vision of PSPB in encouraging Sports and Sports persons and has been keenly participating in various tournaments and matches organized by PSPB. During the month of October 2012, EIL hosted the PSPB veterans cricket tournament wherein 6 teams participated.

EIL teams participate in various sports like Cricket, Chess, Badminton, Table Tennis, Carrom, Golf, Hockey, Kabbadi. EIL teams have won accolades in Table Tennis & Carrom tournaments.

To encourage greater participation in sports, EIL introduced EIL Cricket League which enlisted participation of 90 employees.

Organization of various social interactions at Head Office, Regional Offices, Branch Office, Construction sites and Overseas locations and trekking expeditions help in extending the positive relationships beyond work, which is the key to effective team working and ensures better work life balance.

- Employee Grievance Management System

Grievance mechanism in EIL has been constituted to address needs of its employees and bring in more transparency in the decision making process. The Grievance Management System consists of various sub- committees and these committees attend to the employees'' representations in a time bound manner thereby promoting higher employee engagement.

- Reward & Recognition

With an objective to recognize employees'' efforts, inspire creativity and motivate the achievers, two Reward and Recognition schemes have been implemented in EIL, viz, "Kudos!" - for exemplary work done and "System Feedback" - for providing meaningful suggestion/feedback resulting in system improvement.

- Performance Management System

EIL has in place a robust and transparent Performance Management System that gives weightage to both performance and potential. The Performance Management System is an online process and follows a Bell Curve Approach. The outcome of Performance Management System is used for performance related pay, career progression, training & development and succession planning.

- Training & Development

As part of the talent development initiatives, Training & Development function of EIL is continuously engaged in identifying and implementing various areas wherein employees should be trained and enriched through different modes of learning interventions.

During year 2012-13 training initiatives were focused on domain areas wherein a total of 157 no. training programmes were conducted in technical/functional areas such as Fire Hazard Analysis in Nuclear Plant; PMP Certification for Project Management; PDS/PDMS training for 3D plant modeling; Rehabilitation of concrete structure; Lead Auditors Course For OHSAS 18001:2007, etc.

''Coaching skills workshop'' for Dy. General Managers & General Managers was organized to promote a Coaching culture. Fifth batch of Leadership Development Program - ''Aarohan'' was completed covering 24 participants.

Customized competency based programmes on Enhancing Effectiveness through Emotional Intelligence; Putting Customer First; Change is good; Creativity & Innovation; Plan, Decide & Deliver Enthusiastically; Creating Winning Teams etc. were organized on regular basis covering executives at all levels.

- HR Initiatives

- Assessment & Development Centre With a vision to sustain its competitive edge and further achieve greater heights, the Assessment & Development centers were conducted for 65 DGMs of EIL in August-September 2012. It was a starting point to a structured Individual Development Planning Process (IDP) for each participant in the programme. The data is also being utilized for creating more robust HR systems.

- Aarohan - Leadership Development Programme

Aarohan is a sustained, collaborative effort to build best in class leaders, across levels. During the year 2012-13, fifth batch of ''Aarohan'' for 24 participants from various departments including Construction sites and Regional offices was completed.

The program is divided in two phases i.e. Self Reflection and Development phase. In self reflection phase participants are provided inputs derived from psycho-metric & multi-rater tools and in the development phase structured workshops are organized on the identified development areas.

The participants of Aarohan programme were also assigned Action Learning Projects (ALPs). The ALPs focus on addressing current business issues and enable the participants to practice skills in a real environment. Senior management closely monitored and tracked progress on these projects, apart from providing active support and guidance, in their roles as ''Project Sponsors'' & ''Project Guides''.

- Mentorship Development Program

EIL supports Mentorship Development Program and allocates trained mentors in the ratio of 1:4 (Mentor: Mentee) for new joinees in level 12-14. The mentors guide their protegees in order to nourish their career in EIL and help them navigate their way towards a bright career.

- Leveraging IT in HR processes-Launch of EIL Connect

An Interactive web Portal titled ''EIL Connect'' has been developed by Information Technology Services Department with support from Corporate Affairs Department (CAD) and HR.

The objective of this interactive portal is to share latest corporate events/news/information with EIL employees through a single window as well as access existing utility applications. This portal provides an interactive environment by facilitating users to give their comments on various published information and has become a valuable communication forum for employees posted both within India and at overseas locations.

Being a progressive technology driven organization, implementation of online HR modules developed in- house for its various HR functions has been a constant endeavor in EIL. Implementation of such processes has resulted in achieving greater efficiency and employee satisfaction in the organization.

- Implementation of Government Directives on Scheduled Caste/Scheduled Tribe

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavoring towards safeguarding the interests of SC/ST employees. In pursuance of the philosophy and compliance of Presidential Directives dated December 30, 1972 issued by Ministry of Petroleum and Natural Gas, EIL has incorporated necessary provisions in its Recruitment process and Promotion norms.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employee''s Welfare Association by holding periodical meetings with the Association.

The percentage of employees belonging to Scheduled Caste & Scheduled Tribes category was 17.99% and 4.17% respectively of total staff strength of the company (as on March 31, 2013). Senior officials of the Company have been holding regular meetings with representatives of SC/ST Welfare Association and Liaison Officer for redressal of their grievances/ concerns. During the year, out of 138 personnel joining the company 30 belonged to SC/ST (SC-18, ST-12). Reports are being sent to MoP&NG/DPE periodically as per Govt. of India guidelines. Post based rosters are being maintained in direct recruitment and in promotion.

In order to fill up the backlog of vacancies, EIL has been resorting to special recruitment drives from time to time in order to meet the constitutional obligations.

- Women Empowerment

Women constitute approximately 11% of EIL''s human resource, wherein 70% of the women employees are professionally qualified and more than 50% are in the junior/ middle management. To cater to the development needs of its women employees, EIL has constituted a Women Forum.

The forum focuses on providing opportunities for development to women employees and identifies various training interventions especially in the area of Managerial Skills and Leadership Development. The forum also facilitates participation of women employees in various conferences and seminars. Senior executives of EIL have been rewarded at prestigious forums for their contributions.

As a part of International Women Day Celebration, a programme was organized on 8th March, 2013. On this occasion, the top management of EIL encouraged the women employees to continue to add value through their concerted efforts for achievement of the Organizational goals. The event was interspersed with various competitions and fun games to inculcate a feeling of togetherness and bonding.

Corporate Social Responsibility

"EIL''s Corporate Social Responsibility (CSR) policy is the company''s commitment to operate in an economically, socially and environmentally sustainable manner to enhance the company''s overall contribution to society''! In keeping with the national objective of inclusive growth and the DPE Guidelines on CSR, the areas identified for CSR projects are Education, Health Care, Drinking Water/ Sanitation, Rural Electrification, Environment Protection/ Sustainability, Women Empowerment, Upliftment of underprivileged, Community Development and other areas. The CSR Budget for FY 2012-13, in keeping with the DPE Guidelines, was kept at Rs.1273 Lakhs i.e. 2% of PAT of previous financial year. The CSR expenditure achieved during the financial year was Rs.567 Lakhs which exceeded the MoU annual ''Excellent'' target of Rs.500 Lakhs.

Salient highlights of the CSR initiatives undertaken are as follows:

- Education -Education being an essential aspect in the life of every human being, EIL has focused on providing infrastructural support to Government Secondary School in Sangam Vihar, New Delhi. The present facilities were upgraded through construction of laboratories, additional classrooms, staircase/ramp, provision for potable water along with sanitation facilities for both girls and boys. The Company also procured and distributed supplementary books amongst 500 underprivileged students of Class X in rural areas of Assam through Assam School of Education (Society) and Zilla Parishad. Around 100 villages/Vidyalayas in rural/tribal areas of Dibrugarh, Assam were also adopted for imparting training and basic informal education to children.

Projects under execution include upgradation of educational infrastructure in various schools in the North Eastern region.

- Healthcare - In an endeavour to provide better healthcare facilities within easy reach of the needy, the construction of super specialty blocks on the second and third floor of Government General Hospital at Kakinada, Andhra Pradesh was undertaken.

EIL also organized 20 free Health and Eye Check-up camps in backward and slum areas of NCR to provide primary health care treatment to the underprivileged, Projects on the anvil include providing a Mobile Cancer Detection Van to an NGO to cater to the needs of the population of Delhi/NCR as well as providing medical equipments to Government General Hospital at Kakinada, Andhra Pradesh.

- Drinking Water/Sanitation - Availability of clean and hygienic drinking water has been accomplished through construction of a water treatment plant thereby augmenting potable water supply in the Kanchipuram District in Tamil Nadu.

Additional sanitation facilities have been provided at Senior Citizen Home at Najafgarh, New Delhi by constructing separate toilets for Gents and Ladies wing.

Project under implementation is the installation of RO plants at six locations at Kakinada, Andhra Pradesh.

- Rural Electrification - As a step towards promoting sustainable development, installation of 100 Solar Powered Street Light Systems catering to the needs of rural and power starved areas of Barabanki District, UP was accomplished.

Ongoing projects include setting up of solar power plants in the remote villages of Pipcha & Pigmo of Kargil region in association with the Kargil Renewable Energy Development Agency. The highlight of this project is that the maintenance and management of the power plants will be carried out by the village community itself.

- Environment Protection/Sustainability - EIL is engaged in a social outreach program to enhance consciousness amongst school children and locals on environmental protection and sustainability of Ladakh in trans Himalayan region.

Major project under implementation is the construction of environment friendly green cremation systems in different locations of Delhi NCR.

- Women Empowerment - Prosthesis and medical bras for post-operative care to 500 breast cancer patients who had undergone mastectomy at various hospitals of Delhi NCR have been provided. The construction of 2nd and 3rd floor of office-cum-training centre of Godavari Maha Samakhya (GMS), an initiative towards women empowerment and poverty alleviation, Kakinada is underway.

- Upliftment of Underprivileged - EIL has facilitated education of 550 visually-impaired students and children by providing study materials in Mumbai. Quilts, mattresses, heaters, chairs and adult diapers were provided to the senior citizens at Vridh Ashram, New Delhi to enable them to lead a life with dignity and comfort.

Projects under implementation include extending support to camps organized for providing:

- artificial limbs, aids and appliances to persons with disability in New Delhi

- vocational training courses such as computer course, book binding course, english language course, tailoring and cloth handicraft course being run for enabling hearing impaired and handicapped women. In addition to above, construction of a multi- purpose hall for the Old Age Home in Mirzapur, Uttar Pradesh and enabling availability of Multi Facility Health Kit for Old Age Homes of Delhi are also underway.

- Community Development - The construction of Panchayat building with community hall and water supply pipeline works to individual houses in Padur Village, Manipal is under implementation.

Official Language

To propagate and enhance usage of Official Language in communication, various initiatives as follows were taken:

- Regular Classes & Correspondence Courses for employees not conversant with Hindi

- Hindi workshops for creating awareness and enhancing skills

- Hindi Fortnight celebration

EIL also organized an Essay competition on "Energy Problem and Solution in India" for Member undertakings of Town Official Language Implementation Committee (TOLIC).

EIL received appreciation and awards at various forums for implementation and dissemination of the official language like:

- Award by "Roopambra" to Delhi Head Office for maximum use of official language

- Awards by TOLIC, Gurgaon to EIL, R&D for disseminating of Hindi among TOLIC members; writing technical article and for special efforts for implementation of official language policy

During the year the Committee of Parliament on Official Language visited our site office at Kochi and branch office at Mumbai. The Committee was satisfied with the efforts invested for implementation of official language. The Rajbhasha Vibhag, Ministry of Home Affairs also conducted inspections at HO, Branch Office, Mumbai and Gurgaon Office. Rajbhasha Vibhag of EIL also carried out regular inspections at its Division/Departments and Regional/ Field/Procurement offices during the year in accordance with the official language policy.

Ministry of Petroleum and Natural Gas entrusted EIL with the responsibility of compilation of the "Brihat Petroleum Shabdawali" EIL coordinated with concerned undertakings and compiled 10,000 words after carrying out necessary editing and classification. The Shabdawali has been released in Hindi Advisory Committee of Ministry of P & NG.

Awards and Accolades

- Petrotech-2012 Special Technical Award in Project Management Category for Guru Gobind Singh Refinery Project, Bathinda of HMEL.

- Petrotech-2012 Special Technical Award in Greening of Oil and Gas Business Category for India''s first Indigenous DHDT Unit jointly developed with IOCL and implemented in Bongaigaon Refinery of IOCL.

- Petrotech 2012 Life Time Achievement Award in the ''Research & Development'' category to Dr. S J Chopra, the officiating Chairman & Managing Director of EIL (January 2000-Ja nuary 2001).

- "HelpAge India Bronze Plate Award" for the commendable contribution towards the cause and care of the underprivileged elderly. Shri Ram Singh, Director (Finance) received the award from Shri Pranab Mukherjee, the Hon''ble President of India in New Delhi.

- ICC PSE Excellence Award-2012 for R&D, Technology Development & Innovation in the Mini Ratnas Category.

- Performance Excellence Award for Financial and Operational Strength for the year 2010-11 from Indian Institution of Industrial Engineering (IIIE).

- BT Star PSU Excellence Award 2012 for Excellence in Human Resource Management.

- Special Commendation for the Golden Peacock Occupational Health & Safety Award 2012.

- PMI Award-2012 for Guru Gobind Singh Refinery Project of HPCL-Mittal Energy Limited (HMEL) at Bathinda.

- Certificate of Appreciation from National Safety Council of India (NSCI) in recognition of the appreciable achievements attained in occupational health and safety during the assessment year 2010 for PFCCU, MRPL, Mangalore.

- IPE CSR Award in recognition to Best practices in CSR.

- ''CIDC Partners in Progress Trophy 2013'' for display of utmost commitment and drive to create a vibrant work environment for the construction fraternity especially for achieving targets of "Mission Skilling India" under various initiatives by CIDC.

- Best Site Award 2012 from ISPRL in recognition of the outstanding efforts put in by site team towards safety, quality, house-keeping and Project management for Strategic Storage of Crude Oil Project at Padur.

- Lifetime Achievement Award 2012 by Indira Gandhi Technological & Medical Science University, Arunachal Pradesh to Shri A K Purwaha, C&MD for his contribution towards Project Management and Corporate Affairs.

- ICAI Award for Excellence in Cost Management Practices-2nd prize for the year 2011 in the category of Public-Service Sector-Large.

- India CFO Award for Excellence in Risk Management to Shri Ram Singh, Director (Finance) by IMA India.

- Women Super Achievers Award to Ms. Veena Swarup, Director (HR) by Institute of Public Enterprise (IPE) and World HRD Congress in recognition to her achievement.

- Award to Ms. Veena Swarup, Director (HR) by Forum for Emotional Intelligence Learning (FEIL) and Tata Institute for Social Sciences (TISS) in recognition of her Outstanding Contribution to Leadership Development.

- "Achievement Award for Academician Scientist/ Technologist/Innovator" to Dr. R N Maiti, AGM (R&D) by CIDC.

- HR Leadership Award by Institute of Public Enterprises (IPE) to Shri P K Rastogi, the then Director (HR), EIL in recognition of his outstanding contribution in the field of Human Resource.

- Rajbhasha Awards for Implementation of Official Language and Technical Writing in Hindi from the Home Ministry.

- Certificate for completing 50 million LTA free man- hours at Assam Gas Cracker Project of BCPL.

- Certificate of Recognition for achieving 50 Million LTA free man-hours for Rehabilitation & Adaptation of Skikda Refinery Project of SONATRACH, Algeria.

- Safety Certificate for achieving 28 million LTA free man- hours at Dahej Petrochemical Project of ONGC Petro additions Limited (OPaL).

- Safety Certificate for achieving 18.04 million LTA free man-hours for Dabhol-Bangalore Pipeline Project of GAIL.

- Certificate of Recognition on achieving 12.4 million LTA free man-hours at Petrochemical Complex-II Project of GAIL at Pata.

- Safety Certificate for achieving 10.3 million LTA free man-hours for the Sulphur Recovery Unit at Mangalore Refinery Expansion Project (Phase-III) of MRPL.

- Certificate of Recognition for achieving 10 million LTA free man-hours at Strategic Storage of Crude Oil Project at Padur, Karnataka of ISPRL

- Safety Certificate for achieving 5.0 million LTA free man- hours for Deen Dayal West Field Development Project at Onshore Gas Terminal, Kakinada, Andhra Pradesh of Gujarat State Petroleum Corporation Ltd. (GSPC).

- Safety Trophy for achieving 5 million LTA free man- hours for Strategic Storage of Crude Oil Project at Mangalore of ISPRL.

- Certificate of Recognition for achieving 1.8 million LTA free man-hours for Crude Drum System Project at Guwahati Refinery of IOCL.

- Certificate of Appreciation for achieving 1.37 million LTA free man-hours for Kailaras Compressor Station Project of GAIL at Morena.

Joint Ventures Jabal EILIOT Company Limited EIL, Jabal Dhahran Company Limited and IOT Infrastructure & Energy Services Limited entered into a joint venture agreement pursuant to which Jabal EILIOT was set up on July 5, 2011 for the purpose of undertaking business of engineering, design, services, project management, material procurement, site preparation, execution, installation, implementation, construction, operation, maintenance and undertaking of engineering procurement and construction projects in select sectors such as oil and gas, fertilizers, oil and gas well drilling, petro-chemicals. The companies have a shareholding of 33.33% each in Jabal EILIOT.

TEIL Projects Limited

EIL and Tata Projects Limited entered into a joint venture agreement pursuant to which TEIL was set up on July 15, 2008 for the purpose of pursuing certain identified projects on engineering, procurement and construction basis in select sectors such as oil and gas, fertilizers, steel, railways, power and infrastructure. EIL has entered into a shareholders'' agreement Tata Projects Limited by which EIL and Tata Projects Limited have a shareholding of 50% each inTEIL.

Subsidiary Companies

Certification Engineers International Ltd.

Certification Engineers International Ltd. (CEIL), a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from ONGC, VMSS, GSPL, various State Governments and others, notable among these being :

- ONGC - Certification services for B-127 WPP Project and Certification and TPI services for OGIP.

- VMSS & SMC- TPI for various Infrastructure Projects.

- GSPL- TPI for various Pipeline Projects and Technical Audit.

- ONGC Asset- TPI for Mumbai High MH, B&S, N&H and OMG Projects.

Apart from these, CEIL secured many Third Party Inspection assignments from suppliers of package equipment for projects of IOCL, ONGC and State Govt. Organizations etc.

The Board of Directors of the Company have recommended for the financial year 2012-13, a final dividend of Rs.200/- per share (of face value of Rs.100/- each) in addition to Rs.200/- per share interim dividend already paid during the year. With this, the total dividend for the year 2012-13 works out to Rs.400/- per share. Payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting.

EIL Asia Pacific Sdn. Bhd.

EIL Asia Pacific Sdn. Bhd. (EILAP) was incorporated on February 21, 1994 under the Malaysian Companies Act, 1965. EILAP is primarily engaged in the business of providing technical services for projects in oil and gas and other industrial sectors.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

As the Company operations do not involve any manufacturing or processing activities, the particulars as per the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, regarding conservation of energy and technology absorption, are not applicable. The particulars regarding expenditure and earnings in foreign exchange are given in Point no. 2.26 of the Notes to Accounts.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance. The Board of Directors support the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity.

As required under Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors'' Certificate on compliance of conditions of Corporate Governance, along with the Management''s Reply on the comments of Auditors is annexed.

Code of Conduct

EIL has formulated a Code of Conduct for its Board of Directors and Senior Management Personnel. The confirmation of compliance of the same is obtained from all concerned on annual basis. All Board Members and Senior Management Personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance.

Right to Information

EIL, being a responsible public sector undertaking, has displayed essential information on its website under the head RTI. The management has notified CPIO and the First Appellate Authority (FAA) in compliance with the requirements of the RTI Act. During the year 2012-13, a total of 141 queries were received by the Company and all of them were replied to/answered. Apart from RTI applications, the Company also received 27 appeals against the decision of CPIO, which too were duly attended to and appropriately disposed off by the FAA.

Directors'' Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, the Directors confirm:

i that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same

ii. that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of Company for that period

iii. that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities

iv. that they have prepared the annual accounts on a going concern basis

Auditors

M. Verma & Associates, Chartered Accountants were appointed as Auditors of the Company for the financial year 2012-13 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include State Bank of India, Indian Overseas Bank, State Bank of Travancore, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank, ICICI Bank, Indian Bank, Bank of India, Oriental Bank of Commerce, Canara Bank, IDBI Bank and Axis Bank.

Particulars of Employees

Information with respect to employees as required by Section 217(2A) of Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended is given as Annexure to this Report.

Directors

After the date of last Directors'' Report i.e. 16.07.2012, Shri L.N. Gupta and Shri Dependra Pathak, Directors (Government Nominee) ceased to be Directors of the Company w.e.f. 3.08.2012 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter No. C- 31033/1/2012-CA dated 3.08.2012 and their resignation of the same date.

Dr. Archana S. Mathur, Economic Adviser, MoP&NG and Ms. Sushma Taishete, Director (GP), MoP&NG were appointed as Additional Directors (Government Nominee) on the Board of the Company w.e.f. 3.08.2012. In terms of the provisions of the Companies Act, 1956, their tenure as Additional Directors expired on 30.08.2012. Therefore, their appointment was renewed and accordingly, they were appointed as Additional Directors (Government Nominee) w.e.f. 30.08.2012.

Shri P.K. Rastogi, Director (HR) ceased to be the Director of the Company w.e.f. 1.10.2012 due to his retirement on attaining the age of superannuation on 30.09.2012.

Ms. Veena Swarup was appointed as Additional Director in the capacity of Director (HR) with effect from 1.10.2012.

Shri U.N. Bose ceased to be the Director of the Company w.e.f. 1.12.2012 due to his retirement from ONGC on attaining the age of superannuation on 30.11.2012.

Dr. Avinash Chandra and Shri A.K. Purwar ceased to be the Directors of the Company due to resignation w.e.f. 30.01.2013.

Shri P. Mahajan, Director (Technical) ceased to be the Director of the Company w.e.f. 1.04.2013 due to his retirement on attaining the age of superannuation on 31.03.2013.

Shri Ajay N. Deshpande was appointed as Additional Director in the capacity of Director (Technical) with effect from 1.04.2013.

Ms. Sushma Taishete, Additional Director (Government Nominee), ceased to be Director of the Company w.e.f. 10.04.2013 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter No. C-31033/1/2012-CA dated 10.04.2013 and her resignation of the same date.

Shri R.N. Choubey, Director General, Directorate General of Hydrocarbons, Ministry of Petroleum & Natural Gas was appointed as Additional Director (Government Nominee) on the Board of the Company w.e.f. 10.04.2013

The Board placed on record its sincere appreciation for the valuable services rendered and contributions made by Shri L.N. Gupta, Director (Government Nominee), Shri Dependra Pathak, Director (Government Nominee), Shri P.K. Rastogi, Director (HR), Shri U.N. Bose, Director, Dr. Avinash Chandra, Director, Shri A.K. Purwar, Director, Shri P. Mahajan, Director (Technical) and Ms. Sushma Taishete, Director (Government Nominee) of the Company.

In accordance with the provisions of the Articles of Association of the Company, Shri D. Moudgil, Director, Shri Sanjay Gupta, Director, Dr. J.P. Gupta, Director and Shri Bijoy Chatterjee, Director would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment.

In accordance with the provisions of the Companies Act, 1956, Dr. Archana S. Mathur, Ms. Veena Swarup, Shri Ajay N Deshpande and Shri R.N. Choubey who were appointed as Additional Directors after the date of last Directors'' report, shall vacate their offices at the ensuing Annual General Meeting. Necessary notices have been received from the Members/Directors of the Company under Section 257 of the Companies Act, 1956, proposing their candidature for appointment.The Board recommends their appointment.

Brief resume of the Directors seeking appointment/ reappointment together with the nature of their expertise in specific functional areas, names of companies in which they hold directorships, membership of Committees of the Board and Shareholding of non-executive directors as stipulated under Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance are given in the Annexure to Notice of 48th Annual General Meeting.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development, we will continue to provide world class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results. Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

For and on behalf of the Board of Directors

A.K. Purwaha

Chairman & Managing Director

Place: New Delhi

Date: July 5, 2013

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Mar 31, 2012

The Directors have great pleasure in presenting the 47th Annual Report together with audited accounts of the Company for the year ended March 31, 2012 along with Audited Statement of Accounts, the Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2011-12 in Retrospect

EIL continued its good performance during the year 2011-12. The salient features are as follows:

Turnover : Rs 369882 lakhs

Profit Before Tax (PBT) : Rs 91477 lakhs

Profit After Tax (PAT) : Rs 63631 lakhs

Turnover from core consultancy business increased y-o-y by 7% to Rs120731 lakhs and LSTK business increased y-o-y by 47% to Rs249151 lakhs.

Dividend

The Board of Directors of the Company has recommended for the financial year 2011-12, a final dividend of Rs 4/- per share (of face value of Rs5/- per share) in addition to Rs 2/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2011-12 works out to Rs 6/- per share. Payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company.

Investor Relations

It has been our constant endeavor to achieve highest standards of corporate behavior. In sync with this, Company undertakes all measures to enhance the market confidence and improve shareholders engagement through regular, transparent and open communication.

Management is committed to share information with investment community on company performance as well as periodically convey essential updates on expected projects, new business initiatives, future outlook, industry insights and avenues of growth and investment plans.

Dedicated Investor Relations (IR) cell was created last year to ensure timely communication of such information acting as an effective bridge between the management and the investment community. The cell effectively handles all investor concerns and/or issues in the best possible way, aligning it with the disclosure requirements, transparency and corporate governance rules & regulations.

Company Management and IR cell are both actively engaged in investor communication through one on one meetings, con- calls, investor conferences, road shows and also exploit other print and web communication for information dissemination. In this financial year (FY11-12) itself, a total of 3 road-shows, 4 conferences and around 70 meetings/con-calls were conducted.

Company periodically also obtains the opinion of the investment and analyst community as a valuable feedback for formulating its policies and taking strategic management decisions.

Going forward Company plans to have a mechanism in place to have an online feedback system, discussion forums and webcasts for the convenience of our investors and analysts. We aim to provide guidance for the benefit of investors and sell/buy side analysts through these efforts and various channels.

Management Discussion & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Petroleum Refining

Petroleum Refining sector continued to play a dominant role in Company's business. During the year, EIL has achieved good progress on the following major jobs, some of which were commissioned/likely to be commissioned in the next financial year. These jobs include:

- 9 MMTPA grassroot Guru Gobind Singh Refinery Project of HPCL - Mittal Energy Limited at Bathinda, Punjab has been successfully commissioned in record time of less than 44 months. The Refinery was dedicated to the Nation by the Hon'ble Prime Minister of India, Dr. Manmohan Singh on April 28, 2012. The Refinery consists of SPM (Onshore & Offshore) for receiving crude from tankers and crude oil terminal at Mundra for storage and onward pumping to refinery at Bathinda through 1014 km of 30" / 28" cross country pipeline, CPP of 165 MW capacity and secondary process units viz. VGO HDT, PFCC, DCU, MS Block, DHDT to achieve high distillates yields meeting EURO-IV norms and a petrochemical unit producing Polypropylene. The Refinery is energy efficient and environment friendly. Diverse environment protection measures have been incorporated in the design of all project facilities which includes SRU, state-of-the-art ETP, Vapour Recovery System and low NOx burners in furnaces. This has provision for producing Euro-V product also along with alkylation unit in the future. The Refinery has been built at the cost of USD 4 billion.

- Mangalore Refinery & Petrochemicals Limited (MRPL), a subsidiary of Oil and Natural Gas Corporation Limited having a nameplate capacity of 9.69 MMTPA, has processed close to 12 MMTPA of crude with their Phase-I and Phase-II units. As part of Phase-III Refinery facilities, MRPL has planned to upgrade the refinery to meet Euro-III/IV specifications for its entire Diesel pool, including exports and also increase the crude processing capacity to 15 MMTPA by adding CDU/VDU of 3.0 MMTPA capacity. Associated Utilities/Offsites are being augmented to cater to MRPL's Phase-III requirements. The entire Project is being implemented on hybrid mode of LSTK/OBE/conventional system for various units. Major secondary processing facilities are being implemented on LSTK/OBE route while all the Utilities/Offsites are being implemented on EPCM route. EIL is the PMC for the LSTK contractors and EPCM consultant for Utilities/Offsites works. EIL has also been awarded the OBE-orders for the PFCC, SRU and PPU of Phase-III Project.

MRPL had targeted to commission, at least, the CDU/VDU before March, 2012. They declared mechanical completion of CDU/VDU in November, 2011. Utilities/Offsites, being implemented in EPCM mode under EIL had faced several unique impediments during construction phase like the enormous site grading, hard rock in patches of the site, PDFs, saving Benkinatheshwar temple, unprecedented rains and many more issues. EIL's management encouraged and supported its team for making all-out efforts for Utilities and Offsites to be made ready before March, 2012. Dedicated efforts by EIL/MRPL team of engineers, well- supported by the Managements of both the organizations and Contractors led to completion of the required Utilities/Offsites also, ensuring smooth commissioning of CDU/VDU on March 29, 2012 i.e. well within the targeted dates. Client could dispatch all the products from the new units and could realize the huge Income Tax benefit under section 80 (ib) for which Govt. of India had fixed March 31, 2012 as last date.

Other process units, DHDT, HGU and CHTU are also in the process of commissioning.

MRPL under Phase-III Expansion Project have embarked upon a major initiative to not only upgrade the value of the products from their existing refinery, but also to enhance their profitability considerably by installing a Petrochemical Fluidized Catalytic Cracking (PFCC) for production of Polymer Grade Propylene. The PFCC Unit has been awarded to EIL on OBE convertible to LSTK mode. The PFCCU forms the key secondary processing facility of this Project and is one of the pivotal units which add substantive value to the Project. The unit has been licensed by M/s Shaw Stone & Webster and is designed for a high severity operation with a capacity of 2.2 MMTPA to produce about 4,45,000 TPA of Polymer Grade Propylene. The difficulty factor is highly exacerbated on account of the extreme criticalities arising out of the unit size and associated complications. The sheer magnitude and the volume of work involved in the Project itself poses critical challenges of building one of the most complex process units in the Refining industry, implemented hitherto in India. The construction activities of the Unit are in advanced stage of completion.

SRU Block is also being implemented on OBE convertible to LSTK mode. Mechanical completion of Amine Regeneration Unit achieved as part of SRU and balance works is in advance stage of mechanical completion.

MRPL also awarded the Polypropylene Unit (PPU) to EIL on OBE convertible to LSTK mode of implementation. Detailed engineering and procurement activities are in advanced stage of completion. The site execution of PPU at MRPL was one of the most challenging tasks, due to uneven terrain at the site. Work at this site included piling, foundations and superstructure works, which are currently progressing well.

- Wet Air Oxidation (WAO) Project which was awarded to EIL on LSTK basis by MRPL (with EIL's own process design), has been commissioned on August 30, 2011.

- 6MMTPA grassroot Bina Refinery of Bharat Oman Refineries Ltd. (BORL) at Bina, Madhya Pradesh was dedicated to the nation on May 25, 2011.

- Diesel Hydrotreater Unit (DHDT) built with technology developed by EIL (R&D), IOCL (R&D) and I IT Delhi at IOCL's Bongaigaon Refinery was commissioned on August 10, 2011. The technology for the DHDT Unit was commercially implemented for the first time in the country at Bongaigaon Refinery and had exceeded its designed performance.

- EIL is also providing PMC services for implementation of 366 MW Captive Power Project (CPP) of IOCL's 15 MMTPA Paradip Refinery Project. BHEL is the LSTK contractor for this Project. Various activities for this project are in full swing.

- The engineering work of quality upgradation project CDU-II at CPCL has been completed and the shutdown of the plant is scheduled to be taken in the second quarter of 2012.

- Work of New Coke Chambers & Allied Modernization Facilities at Guwahati Refinery is nearing completion.

- Engineering and Procurement activities for Wax Project of NRL are progressing well. Construction activities have commenced at site.

A number of new project assignments were bagged by EIL during the year 2011-12 and work has commenced on all these projects. These include :

- BDEP as well as EPCM services for CDU - 4 Project of BPCL Mumbai Refinery. The new Crude Distillation Unit will replace the ageing CDU - 1 and CDU- 2. Both these units along with their associated facilities would be decommissioned upon commissioning & stabilizing of CDU-4. The Project will consist of associated facilities/units such as Vacuum Distillation Unit, Treatment facilities for LPG & off-gas and required balancing Utilities and Offsites. The work on this project is in progress.

- Project Management Services for new Integrated Refinery Expansion Project (IREP) at BPCL Kochi Refinery. The work on this project has commenced.

Petrochemicals

This year also witnessed significant growth in the Company's Petrochemical segment. During the year, EIL continued to make significant progress on following major jobs:

- Assam Gas Cracker Project of Brahmaputra Cracker and Polymer Limited (BCPL), a PMO monitored grassroot petrochemical project being executed on conventional mode at Lepetkata near Dibrugarh, has made significant progress during the year. The project encompasses licensed units of Ethylene Cracker, LLDPE/HDPE & PP from Lummus Technology USA, INEOS UK, Lummus Novolen Germany respectively, apart from EIL licensed Gas Sweetening Unit, C Separation Unit, Gas Dehydration Unit, Uilities & Offsites and Pipelines. Procurement for all equipment & award of all major construction contracts has been completed. Civil & structural works are in advanced stage of completion and mechanical works are in progress. Once completed, this complex will produce LLDPE, HDPE & PP and availability of these products shall boost the development of plastic industry in North-East region.

- Dahej Petrochemical Complex of ONGC Petro-additions Limited (OPaL) is being executed on PMC - LSTK mode. Construction activities for upstream Cracker Unit are in full swing. LSTK contracts for various downstream process units, Utilities & Offsites are awarded. The Project consists of 11,000 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE, PP units and associated Utilities and Offsites.

- GAIL Petrochemical Complex - II Project has facilities at Vijaipur & Pata consisting of Gas Sweetening, Gas Cracker, C2/C3 recovery, LLDPE/HDPE Swing, Butene-I Units as well as Utilities & Offsites. The Gas Processing Unit (GPU) at Vijaipur at a capacity of 21.71 MMSCMD is one of the largest gas plants being designed in the world for recovery of C2/C3 fraction as feed to GCU. GAIL took the unique initiative of nominating the Licensor (M/s Shaw Stone & Webster) for GCU thereby giving impetus to the project. Licensor selection for downstream units at Pata is also completed.

Utilities & Offsites facilities have been sized and infrastructure works are proceeding in full swing at both sites. All major long lead items such as Compressors, Heat Recovery Steam Generators, Utility boilers, STGs etc. have been ordered much in advance and delivery for some of the equipment has started. Civil and structural activities are in advance stage at site and composite mechanical contracts are already lined up for both the complexes.

- The Butadiene Extraction Unit (BDEU) of IOCL's Panipat Naphtha Cracker Project (PNCP) was awarded to EIL in October, 2010 and is being executed on EPCM basis. The 138,000 TPA capacity unit has been licensed by CB & I Lummus. Detailed engineering and procurement activities are in the advanced stage of completion. Contracts for all works have been awarded. Civil work at this site is nearing completion and mechanical works are in progress.

Pipelines

EIL has been aggressively working in the areas of oil & gas transportation and distribution in India and abroad. Following pipeline projects have been successfully completed during the year:

- 30"/28" x 1014 km Mundra-Bathinda Crude Oil Pipeline of HMEL.

- 18" X 257 km Bina-Kota multi product Pipeline of BPCL.

- Health & Integrity check of City Gas Distribution network of Adani Gas in Lucknow city and its integration with Green Gas Limited.

- Detailed Feasibility Report for augmentation of Jamnagar - Loni LPG Pipeline of GAIL. Jamnagar - Loni is one of the longest LPG Pipelines of the world.

- Detailed Feasibility Report for upgradation of plant & equipment of 1157 km Oil India Crude Pipeline in North-East India.

Following pipeline projects handling oil & gas are under execution:

- South Jetty Development Pipeline project for loading/ unloading of petroleum products and crude oil for IOCL Paradip Refinery. This jetty will handle a wide variety of oil & gas products including crude and is first of its kind in India.

- 46 nos. of flow lines of various sizes (3"- 20") totaling 240 km for NPCC/ADCO, Abu Dhabi.

- 12" x 100 km, Hazira-Dahej Naphtha Pipeline for ONGC.

- Two additional Compressor stations at Chainsa (Haryana) and Kailaras (Madhya Pradesh) on Vijaipur-Dadri Pipeline of GAIL.

- 36"/30"/24"/18" x 995 km Dabhol-Bangalore Natural Gas Pipeline of GAIL.

- 10"x26km LPG Onshore/Offshore Pipeline from BPCL/HPCL Mahul Refineries to Uran for BPCL.

- 18"/16" x 275 km Natural Gas Pipeline from Vijaipur to Kota and Spurline to Chittorgarh for GAIL.

During the year, EIL has been awarded EPCM work for 36"X 860 km Mehsana (Gujarat)-Bathinda (Punjab) Pipeline along with 24"/18"/16"/8" X 726 Km Spurlines for GSPL.

In addition, EIL intends to diversify into cross country oil & gas transportation business on owner/ operator mode (in equity partnership) for new pipeline projects such as Surat - Paradip Pipeline of GAIL & Rewari - Kanpur Pipeline of HPCL.

Offshore Oil & Gas

- During the year, EIL continued to provide PMC services to GSPC for following projects for their Offshore Block:

- Wellhead Platform

- Process - cum - Living Quarters Platform

- EIL is executing SPM and Associated Facilities Project of MRPL at Mangalore on OBE basis. After installation of these facilities, MRPL shall be able to import crude by VLCC Tankers up to 3,00,000 DWT capacity resulting in considerable cost savings.

- EIL is providing Project Management Consultancy services for Marine and Topside Facilities for Standby Jetty of Dahej LNG Terminal of Petronet LNG Limited. The Standby Jetty is designed to moor and offload LNG carriers with capacity of 125,000 m3 to 266,000m3.

- EIL is providing pre-award services to ONGC for turnaround reconstruction works of BPA & BPB Platform Complexes and successfully completed post award engineering activities for WIN Revamp project of ONGC and pre-award services to ONGC for WO-16 cluster and cluster 7.

- EIL continued to provide Project Management Consultancy services for integrated offshore crude handling facilities for IOCL at Paradip. This includes setting up of two SPMs and 48', 71 km subsea pipelines. The crude handling facility will meet the requirements of Paradip Refinery including other eastern refineries of IOCL.

- EIL is also carrying out re-qualification and re-certification of 50 (nos.) offshore jackets for ONGC.

During the year, EIL bagged the following orders against stiff competition :

- Project Management Consultancy services for construction of South Oil Jetty at Paradip for IOCL.

- Front-End Engineering Design for New Gas Injection, Gas Lift, Oil Facilities for seven numbers well head platforms in Upper Zakum facilities of Zakum Development Company (ZADCO), Abu Dhabi.

- Carrying out Engineering Study for HAZOP action points of Umm Shaif and Zakum facilities in Abu Dhabi of Abu Dhabi Marine Operating Company (ADMA-OPCO).

EIL intends to foray into deep water engineering. The deep water engineering along with LNG Terminals is viewed as the future business area for the Company.

Onshore Oil & Gas

- GSPC, as a part of Deen Dayal Field Development Project, is implementing an Onshore Gas Terminal (OGT) facility at Mallavaram (A.P.). The project is being executed on OBE mode and consists of two trains of 100 MMSCFD each with GDU, GSU, DPDU, CSU, Sulphur Recovery unit and associated Utilities & Offsites. Engineering & Orderings for the project are in advance stage of completion. Manufacturing & Deliveries to site are in progress. Construction activities have also gained momentum in full earnest.

- EIL has been awarded Western Onshore Redevelopment Project (WORP) on PMC basis by ONGC for onshore assets for 90 installations at Ahmedabad, Ankleshwar and Mehsana. The modernisation plan shall ensure sustainability of oil and gas production from old ageing fields, to handle increasing level of liquid and its efficient processing, sales specifications of Basic Sediment and Water Impurities (BS&WI) and enhance efficiency for better safety standards and better reliability.

- EIL is also providing PMC services for Additional Gas Processing Facilities (AGPF) Phase-IV at Hazira of ONGC.

Strategic Storages

Rapid economic and industrial growth coupled with increasing energy demand has resulted in increasing importance to the issue of energy security. Recognizing the country's dependence on imported oil and gas resources, Government of India has accorded high priority to securing India's energy security objectives and is constructing a buffer in the form of underground rock caverns for reserve supply of crude oil to deal with possible disruptions in the supply chain.

Phase-I of Government of India's Strategic Storage of Crude Oil programme is witnessing the development of crude oil storages at three locations, viz. Visakhapatnam, Mangalore and Padur. Sub-surface Projects Division (SSPD) of EIL is executing these three underground rock cavern projects. The project at Visakhapatnam is in advanced stage, with mechanical completion of the first cavern expected to be achieved by October 2012.

Under Phase-II of the programme, EIL has been assigned the task of preparation of Detailed Project Report for storage of crude oil and petroleum products in underground rock caverns at Padur (Karnataka) and Chandikhol (Orissa), in- ground concrete tanks at Rajkot and salt caverns at Bikaner. As the salt caverns and in-ground technologies are being implemented for the first time in the country, foreign back-up consultants are being engaged for the DPR, preparation of which is underway.

EIL is striving to attain design capability in such areas of underground storage. With expertise gained from foreign back-up consultants engaged for the projects at Mangalore and Visakhapatnam, EIL is executing the Padur project independently without the services of a back-up consultant. Services of an expert have been sought solely for the review of design of critical items being performed by EIL.

Metallurgy

The following major projects were implemented/are in various stages of implementation:

- The Phase-II expansion of NALCO Bauxite Mines at Panchpatmali (from 4.8 MMTPA to 6.3 MMTPA), Alumina Refinery at Damanjodi, Odisha (from 1.575 MMTPA to 2.1 MMTPA) has been completed.

- Fourth Stream Upgradation Project (from 0.525 MMTPA to 0.7 MMTPA) of NALCO Alumina Refinery at Damanjodi is under advance stage of completion.

- Engineering services to Mahan Aluminum Smelter (capacity 360,000TPA) project of HIL (Hindalco Industries Ltd) at Singrauli, M.P. have been completed.

- Engineering services to Aditya Aluminum Smelter (capacity 360,000 TPA) project of HIL at Lapanga, Odisha is nearing completion.

Infrastructure

The Infrastructure Division of EIL is providing Project Management services, Third Party Inspection services, Quality Assurance services, 'Independent Engineers' services, Project Appraisal services and is also working on "Deposit Concept" for various clients.

The clients include State Trading Corporation, Indian National Science Academy, Petroleum Conservation Research Association, Apparel Export Promotion Council of India, Indira Gandhi National Open University, Oil India Limited, Oil Industry Development Board, Defence Research & Development Organization, National Highways Authority of India, Airports Authority of India, Sardar Sarovar Narmada Nigam Limited, Delhi Jal Board, Delhi University, Municipal Corporation of Delhi, New Delhi Municipal Corporation, Pune Municipal Corporation, Jaipur Development Authority, National Automotive Testing and R&D Infrastructure Project, National Capital Region Planning Board, Unique Identification Authority of India, Directorate of Income Tax , Regional Centre for Biotech, Central Scientific Institute of Research, Punjab Water Supply and Sewerage Board, Hindustan Petroleum Corporation Limited, Rajiv Gandhi Institute of Petroleum Technology, Ministry of Home Affairs, Jaipur Development Authority, GAIL (India) Limited and Housing & Urban Development Corporation.

During the year, EIL was awarded the jobs of EPCM services for Green R&D Centre of HPCL at Bengaluru, Bid Management services for Upgradation and Modernization of ONGC Nhava Supply Base at Mumbai, prefeasibility study for underground services in walled city Jaipur and Technical Audit of Project cost estimate incurred by Mumbai International Airport Limited. The job of Technical Audit of Automotive Test Track at Pithampur, Madhya Pradesh was also secured.

The current financial year witnessed commencement of the assignment for construction of institutional buildings for Delhi University at North Campus, construction of Biotech Science Cluster at Faridabad for Regional Centre for Biotech and TPI services for construction of GAIL Jubilee Tower at Noida.

A number of projects such as development of CSIR's Diamond Jubilee IGIB extension campus at New Delhi, renovation of Aykar Bhavan at Ghaziabad for Directorate of Income Tax and prefeasibility study for underground services in walled city Jaipur were completed during the year.

Efforts are also on for gaining consultancy services for infrastructure projects in the areas of Metro Rail system, Sustainable Urban Development, Intelligent and Green buildings, Ports and Airports, etc.

Fertilizers

Recognizing the wide gap between demand and indigenous supply of fertilizer, EIL strategized its business operation in Fertilizer and Chemical sector. Last year, EIL re-entered the Fertilizer Sector with brownfield Ammonia/Urea complex project of Jaiprakash Industries and Revamp project of Indo Gulf Fertilizer.

As a major shift in the Company's operation, EIL along with NFL as Joint Venture partner is likely to take over the revival of Ramagundam Fertilizer Plant. The business environment of the sector is very encouraging with major players viz GSFC, GNFC, RCF, Chambal Fertilizers, Juari Industries and ONGC drawing up plans for expansions and new plants.

After adopting the PMC and EPCM business model for ongoing activities in fertilizer and chemical sector, EIL is planning to secure EPC contracts also by establishing MOU with various process licensors.

Water and Waste Management

In this sector, EIL intends to focus on integrated water management covering the gamut of water intake works, treatment, storage and water distribution as well as sewerage network for waste collection, sewage treatment plant, tertiary treatment plant and recycling/reuse of treated water, with special stress on desalination projects and solid waste management. EIL will continue to target engineering consultancy and PMC opportunities as well as EPC projects. Laying of Interceptor Sewerage System along Najafgarh, Supplementary & Shahdara Drains for abatement of pollution in River Yamuna is under execution for Delhi Jal Board (DJB).

City Gas Distribution

This is another sector which has a high growth potential due to inherent advantage of gas as a clean fuel. EIL believes that given its track record of providing engineering consultancy and EPC services for urban infrastructure projects and cross- country hydrocarbon projects, the city gas distribution sector provides attractive opportunities. Though the business dynamic of city gas distribution is passing through a challenging period due to reduced availability of natural gas, EIL is initially examining its foray into city gas distribution projects through various entry modes.

Power

Power Division which was created for spearheading EIL's diversification plans into Power sector achieved major breakthroughs with important players in the power industry. EIL secured business in all sectors in power be it Nuclear, Solar or Thermal power projects.

- Nuclear

EIL bagged Engineering Services Contract for Balance of Plant of Kudankulam Nuclear Power Project - Units 3 & 4 (KKNPP-3&4). NPCIL entrusted EIL with other assignments related to KKNPP leveraging the Memorandum of Cooperation signed between the companies. With a vision to prepare for the special requirements of Nuclear industry, training was imparted to EIL specialists in Nuclear power area.

- Solar and Conventional Thermal Power Plants

EIL is providing PMC and technical services for captive power plants for various clients and has also undertaken a Detailed Project Report along with selection of EPC contractor for 72 MW CPP for KRIBHCO's Fertilizer Complex at Hazira. Further, under stiff competitive bidding, EIL has won the contract for preparation of DFRs for 350 MW gas based Combined Cycle Power Plants at Kashipur and Haridwar from UJVNL-GAIL Joint venture. EIL has also penetrated the 660 MW super critical power projects by getting an order for providing Specialist Consultancy Services for 2x660 MW capacity coal fired Supercritical Thermal Power Plant of OPGC at Jharsuguda, Odisha.

M/s Areva have awarded EIL with Engineering Consultancy Services for Power Block and third party design review of structures for SSG in Solar Block for 1 x125 MW Concentrated Solar Thermal Power Project (under National Solar Mission) of Reliance, located at Dursar village, Pokaran (Rajasthan). AREVA Solar Inc.(USA), as an EPC contractor and technology supplier, will be developing and manufacturing solar steam generators based on the Compact Linear Fresnel Reflector (CLFR) for this project. This project is the largest solar thermal power project in India and one of the largest in the world.

EIL is also providing PMC services to GAIL for their 5MWe Solar PV Power Project at Jaisalmer (Rajasthan) under National Solar Mission Phase-I, Batch-2.

Turnkey Projects

EIL is executing turnkey projects either on LSTK mode or on the 'Open Book Estimate (OBE)' basis. Following jobs made substantial progress during the year:

- Construction progress for three OBE convertible to LSTK packages, namely PFCC, SRU Block and PP of MRPL Refinery Expansion Phase-Ill Project are in advance stage.

- Wet Air Oxidation (WAO) Project which was awarded to EIL on LSTK basis by MRPL (with EIL's own process design), has been commissioned on August 30, 2011.

- SPM and associated facilities to MRPL Phase-111 project is being executed on OBE mode. After installation of these facilities, MRPL shall be able to import crude by VLCC Tankers up to 3,00,000 DWT capacity resulting in considerable cost savings.

- For On-shore Gas Terminal Project of GSPC at Kakinada, A.P. being executed on OBE mode, Engineering & Orderings are in advance stage of completion. Manufacturing & Deliveries to site are in progress. Construction activities have gained momentum.

Overseas Assignments

There has been steady progress with EIL's global expansion plans during the year. Apart from continuing success with existing projects, EIL was also able to bag new overseas assignments during this year.

Key assignments completed during the year include:

- Preparation of technical specifications for SUDAPET Company Limited, Khartoum, Sudan

- Replacement of GUP Hydrophor Fire Water System Pumps at Ruwais Refinery of TAKREER, Abu Dhabi, UAE.

- Engineering services for assessment & selection of Heat Exchanger for ADMA OPCO, Abu Dhabi, UAE

- Licensor selection for Sohar Refinery Expansion Project for ORPC, Oman Work progressed well on following major jobs during the year :

- Design & detailed engineering services to NPCC for Qusahwira Field Development 1.8 MM BOPD Project of ADCO, Abu Dhabi, UAE. Project scope comprises two group gathering and crude processing stations, namely, Central Degassing Station (CDS) and Remote Degassing Station (RDS-1) and a 14" - 80 km. long main crude transfer oil line followed by field engineering support, commissioning support and inspection & expediting support to NPCC.

- Various services under General Services Agreement (GSA) with EQUATE, Kuwait

- New Services Contract (till January, 2013) for Development of Engineering Capabilities for M/s SONATRACH, Algeria.

- Rehabilitation and Adaptation Project of Skikda Refinery and Algiers Refinery of SONATRACH, Algeria

- Engineering Services to M/s BANAGAS and BAPCO companies of Bahrain.

Major consulting services assignments were secured from our target MENA countries, besides new assignments from CIS:

- PMC Services for 5 Nos. Pipeline Projects of GASCO, Abu Dhabi, UAE

- DFR and cost estimate for KPRL Refinery Upgrade Project of KPRL, Kenya

- PMC Services for EPC Phase of Habshan Acid Gas Flare Recovery Project of GASCO, Abu Dhabi, UAE

- FEED for New Gas Injection, Gas Lift, Oil facilities (Package B) for ZADCO, UAE

- Frame Agreement for the provision of Engineering Design Services to NPCC, Abu Dhabi

- Adequacy Check for EPF-120 Facility for Kuwait Processes for Petroleum Equipment & Facilities Co. WLL, Kuwait

- Design, Engineering and Preparation of EPIC Tender Package for New Flare System at CPF for Dragon Oil (Turkmenistan) Ltd, Dubai

- Feasibility Study for Bentiu Mini Refinery of SUDAPET Company Limited, Khartoum, Sudan

- Technical Due Diligence for Project Lotus in Vietnam for ONGC Videsh Limited (OVL)

Engineering

Engineering Division of EIL continued its efforts towards providing more efficient engineering services for all ongoing projects of the Company. There was an all round improvement in systems and processes with close coordination between different groups and streamlining of data transfer and information exchange. Some of the major assignments undertaken by Engineering Division during the year include:

- Engineering for procurement of pneumatic conveying system for handling LLDPE/HDPE Powder/Pellet with capacity of 80 TPH, highest ever capacity procured in EIL, for GAIL Petrochemical Complex-II Project at Pata, Auraiya.

- Engineering for procurement of DOX (Dispersed Oil Extraction) unit with design flow rate of 107 m3/h, highest ever capacity procured in EIL, for GAIL Petrochemical Complex-II Project at Pata, Auraiya.

- Engineering for procurement for the first time of Membrane N2 unit with design flow rate of 595 Nm3/h for Qusahwira Field Development Project of ADCO in Abu Dhabi.

- PMC services including complete conceptualization and sizing of largest Product Ware House handled by EIL with 88,000 MT storage capacity for OPaL, Dahej.

- PMC services to non-conventional energy sector projects like 125 MWe Solar Concentrated Thermal Power Project which includes the largest capacity (14000 m3/hr) of horizontal cooling water pumps by EIL, for Reliance Infrastructure and Areva.

- Development of Technical Specifications for NPCIL for Engineering Services Contract for BOP of Kundankulam Nuclear Power Plant (KKNPP) - 3 & 4.

- Engineering for procurement of a 6.4 MW cycle gas centrifugal compressor having dual drive (i.e. electric motor & gas expander) handled by EIL for the first time for LLDPE/HDPE Unit of GAIL, Pata.

- Engineering for replacement of existing 11x20kA, 900V rectiformer with 6x55 kA, 900V rectiformer without disturbing the existing operation of Pot line 2&3 of Hirakud Aluminum Smelter for Hindalco.

- Basic design, preparation of technical specs. and tender drawings for balance of plant involving 400 kV & 230kV Gas insulated switchgears, 400/230kV- 315MVA transformers etc. for power evacuation system from 2x1000MW generators of KKNPP - 3&4 of NPCIL.

- Detailed engineering for balance of Turbine Island of 125 MWe Solar Thermal Power Plant at Dursar, Jaisalmer district, Rajasthan for Reliance Industries Ltd.

- Implementation of pipeline leak detection system using state-of-the-art Fiber Optic Distributed Temperature Sensing (DTR) technique at South Jetty Project of IOCL Paradip. C3 Stripper of MRPL, PFCCU with I/D of 7000mm, Height (TL-TL) of 70955mm & Erection Weight of 150MT.

- C3 Rectifier of MRPL, PFCCU with I/D of 7000mm, Height (TL-TL) of 67000mm & Erection Weight of1060MT.

- EIL designed HP Exchanger (TEMA Type-DEU) with design pressure of 168 Kg/cm2 for first time for GSPC which has been successfully fabricated and hydrotested.

- C3 Splitter of Cracker unit of GAIL, Pata. Modification of diameter of column from 3200mm I/D as furnished by Licensor, to 4300mm I/D, thereby decreasing the erection weight by approx. 100MT.

- Engineering lay-out and composite analysis involving very high line sizes - including 129" for the first time and high temperatures in the range of 760 degree centigrade.

- Development of capability for carrying out stress analysis of class 2 & 3 nuclear piping as per ASME Sec III NC and ND.

- Carrying out development activity related to Acoustic Induced Vibration study of piping.

- Development of capability for carrying out analysis of ASME Sec VIII Division II vessels considering creep-fatigue interaction.

- Coordination and initiation of the construction of first in- house designed and engineered Green Building project (Administration Building) at GAIL's two Compressor Station sites (Chainsa and Kailaras) by the Architecture Department.

- Inauguration of state-of-the-art Main Control Room Building at MRPL Refinery Expansion Project (Ph-III) amidst great appreciation by the client due to its effective functional and aesthetic design.

- Design of buildings pertaining to new areas like Nuclear Power, Solar Power, Fertilizer plants etc. to fully comply to functional, codal and other specific requirements.

- New activity areas like Interior Designing, Landscape Design (of entire complexes) etc. undertaken.

- Site selection studies for following clients:

- TATA SASOL's Coal to Liquid plant. The study involved techno commercial, socio political analysis and plot plan optimization.

- HPCL Refinery in Ratnagiri district of Maharashtra.

- ONGC's Gas Processing Plant in Thane district of Maharashtra.

Project Services

Project Services Division of EIL continued to provide critical planning and costing services to various projects both at Head Office and various project sites. Using state-of-the-art tools and its data base, the Division caters to diverse project execution roles of the Company viz. EPCM, PMC, LSTK/OBE.

The Planning Division utilizes Primavera and various in-house software packages for project planning and monitoring activities. Apart from providing services for all the projects undertaken by EIL, the Division continued to provide project monitoring services to Ministry of Petroleum and Natural Gas for the 30th successive year. This Division also supports man- hour control and manpower planning activities of the Company.

The Costing Division provides services such as preparation of cost estimates and economic analysis in diverse activities ranging from technology selection to preparation of feasibility reports and other project cost related support such as cost monitoring and control during execution of projects under conventional and LSTK mode of execution. The vast data base and capabilities help in providing valuable support for bid evaluation and award of major contracts as well as in providing effective cost control services.

Construction

Construction Division of EIL continued to provide Construction Management Services to various clients at 42 diverse domestic project locations and 5 overseas locations. The Division offers services for total Construction Management including Contract Administration, Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse Management for projects in Petrochemicals, Refineries, Cross-country Pipelines, Gas Processing Complexes, LNG Terminals, Non-ferrous Metallurgy and Offshore Industry. The resource pool of Construction Division includes a team of qualified and experienced engineers, having strength of 702 regular technical personnel, 12 consultants, 26 management trainees as well as 105 technical personnel deployed through outsourced agencies. As on March 31, 2012, total strength of construction personnel deployed is 845.

Current prestigious commitments for the Division involve MRPL Phase-III project involving 4 (four) nos. OBE contracts, Petrochemical Complex at Dahejfor OPaL, Gas Cracker Complex at Lepetkata for BCPL, OGT at Kakinada for GSPC, Wax Project for NRL, DBPL Pipeline etc.

Construction activities commenced for the following new projects during the year:

- Wax Project, NRL

- Butadiene Extraction unit, IOCL, Panipat

- CDU/VDU-II at CPCL, Chennai

- Rehabilitation Project at Algiers Refinery

The highly skilled & motivated EIL construction team with unblemished track record has been instrumental in establishing & monitoring adherence of construction Quality Management System comprising of quality plans, test plans including record keeping (FIR), monitoring special processes for concreting, welding (involving latest NDT techniques, radiography, ultrasonic test etc) during all phases of construction to ensure trouble free commissioning/operation of critical units.

EIL attaches highest importance to HSE policy in execution of all its projects. This commitment was epitomized by following accolades earned during the year:

- 48.3 million LTA free manhours at MRPL Ph- III Project of MRPL.

- "Sarvashreshtha Suraksha Puruskar" (Golden Shield) by the National Safety Council of India (NSCI) for managing best safety standards in LLDPE/HDPE Swing unit (EPCC-3) at IOCL's Panipat Naphtha Cracker Project.

- 25 million LTA free manhours at Gas Cracker Project of BCPL.

- 25 million LTA free manhours at Rehabilitation & Adaptation of Skikda Refinery Project in Algeria for SONATRACH.

- 8.5 million LTA free manhours at DPC Project of OPaL . Process Design & Development

The Process Design & Development Division of EIL continued its efforts to secure business from new clients besides serving various existing clients, both in India and abroad. Prominent jobs undertaken by the Division during the year include the following:

- Diesel Hydrotreating Technology (DHDT) indigenously developed by EIL, IOCL (R&D) and IIT Delhi has been implemented for the first time in Bongaigaon Refinery of IOCL. The unit was commissioned on August 10, 2011. The Performance Guarantee Test Run (PGTR) of the unit was carried during December, 2011 and all the guaranteed parameters have been successfully met.

- Light Naphtha Isomerization Technology (LNIT) indigenously developed by EIL and IOCL R&D has been implemented for the first time in Bongaigaon Refinery of IOCL. The unit was successfully commissioned on September 30, 2011. The unit is running smoothly since commissioning and PGTR of the unit is scheduled to be held in May, 2012.

- Detailed Feasibility Report including configuration study, site selection, crude receipt facilities and cross country crude pipelines completed for 18 MMTPA Maharashtra Refinery Project of Hindustan Petroleum Corporation Limited (HPCL).

- Detailed Feasibility Report including configuration study completed for Visakh Refinery Modernization Project of HPCL.

- Basic Design, Engineering Package and Detailed Feasibility Report including cost estimate completed for 35000 TPA INDADEPTG unit of Guwahati Refinery of IOCL based on technology developed by IOCL R&D and EIL.

- Prefeasibility completed for processing of Rajasthan crude in Guru Gobind Singh Refinery.

- Prefeasibility Report for expansion of Guru Gobind Singh Refinery from 9 to 11.25 MMTPA crude processing capacity.

- Prefeasibility Report to enhance the processing capacity of Bina Refinery from present 6 MMTPA to maximum achievable capacity considering low cost expansion.

- Detailed Feasibility Study for a Mini Refinery Project at Bentui in United State of undivided Sudan.

- Feasibility Study for recovery of Styrene, mixed Xylene and Toluene from Pygas for IOCL.

- Residual Basic Engineering completed on KBR licensed basic design package for Propane De-asphalting unit Revamp of HPCL Mumbai Refinery.

- Study on relief valves failures for Bahrain Petroleum Company, Bahrain.

- Consultancy services to address problems being faced in Delayed Coker Unit of IOCL Gujarat Refinery.

- Preparation of adequacy check report for EPF-120 Facility at Kuwait.

- Process Design and Residual Process Engineering services for the UP Petrochemical Complex Expansion Project comprising of an Ethylene plant and Polyethylene plant of GAIL (India) Limited at Pata.

- PFR for a Pet coke based Petrochemical complex for producing Polymers and other valued added products by MRPL.

- DFR and cost estimate for KPRL Refinery Upgrade Project for KPRL, Kenya

- Detailed Feasibility Report including configuration study for Mathura Refinery Expansion to 11 MMTPA capacity by IOCL.

Research & Development

With the objective to foster the spirit of innovation and creativity in the organization, Research and Development Division (R&D) has contributed significantly in the consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related areas this year. The Division is pursuing developmental activities, both in house and in collaboration with academic institutes and other R&D organizations like IOCL-R&D, IIP, BPCL (R&D), IITs etc.

- Centre for High Technology (CHT) sponsored Coal to Liquid (CTL) technology development project undertaken in association with BPCL (R&D) is progressing well. Micro & bench scale reactors have been procured and installed at BPCL and kinetic studies are in progress. At EIL (R&D), cold flow slurry bubble column pilot facility has been installed. The data generation and analysis is in progress. Basic design package for Synthesis Gas cleanup pilot facility is ready for implementation. Design and preparation of process package for pilot gasifier is also in progress.

- The development project undertaken in association with IIT Kharagpur for CO removal from Natural Gas is nearing completion. New amine based solvent (i.e. new formulation of amine blend) has been developed for which experimental studies for vapor liquid equilibrium, kinetic data and physicochemical property generation have been carried out at IIT. The flow simulation has also been completed.

- DHDT technology indigenously developed by EIL and IOCL has been adopted by Bongaigaon Refinery (IOCL-BGR). The unit was commissioned and Guarantee Test Run accomplished successfully to produce EURO-IV Diesel and ATF fuels.

- EIL continued its successful commercialization of CFC technology developed along with IOCL-R&D. The LPG units at GGSRL Bathinda, IOCL BGR and IOCL Digboi designed on this technology have been successfully commissioned.

- EIL developed proprietary structured packings (PARLPAK) have been supplied to MRPL for CFC prewash column (LPG unit), HPCL for crude distillation unit and Brahmaputra Cracker and Polymers Limited for gas dehydration unit.

- For demonstrating INDADEPT technology for Naphtha & Diesel Desulfurization developed jointly by EIL and IOCL, IOCL is planning to set up a demonstration cum commercial unit of 39,000 MTA capacity at Guwahati Refinery to treat heavy gasoline cut of INDMAX (FCC) Naphtha. The Sulfur content will be reduced from 1000 ppmw to 50 ppmw. It will not only permit blending of complete heavy gasoline to BS III MS pool but also provide an edge to Guwahati Refinery to meet future more stringent specifications of BS IV MS pool with respect to Sulfur. OIDB has in principle agreed to fund a major cost of the unit (70%). BDEP for setting up the unit has already been prepared and submitted to Guwahati Refinery.

- R&D has undertaken the job of Design Multiplication and preparing BDEP for the High Melting Explosive (HMX) production unit of Terminal Ballistic Research Laboratory (TBRL). This is a DRDO project of national importance.

- EIL signed an MoU with BVG Waste Management Limited to prepare BDEP for modernization of the existing plastic to fuel plant of 2 TPD capacity for improved performance and safety. After successful implementation of modernizing 2 TPD plant, BDEP for 5 TPD plant will also be carried out.

- In order to carry forward their endeavour to develop more efficient structured packing and high capacity trays, EIL has signed an MoU with M/s Kevin to commercialize that design.

- EIL has also signed an umbrella MoU with BPCL R&D for taking up joint development projects.

- EIL has signed an MoU with IIP and NRL to improve Sulphur recovery efficiency of EIL- IIP developed SOR Process

- Technical proposal based on in-house developed technology for recovery of CO from flue gases has been submitted to CFCL-Chambal.

- MoU Project for development of dynamic simulation capabilities for oil & gas separation systems has been completed and a real life case study completed successfully. The results from our study are comparable with the actual commercial study carried out by an established external consultant.

- A project to carry out energy conservation study for Numaligarh Refinery Limited (NRL) had been undertaken in association with Centre for High Technology. The energy study has been completed and report submitted to NRL.

- A multidisciplinary core group (design and engineering groups) for conducting energy audit/studies is being constituted. Petroleum Conservation Research Association (PCRA) has already revalidated empanelment of EIL as energy auditor on PCRA's panel. R&D has increased its tally of BEE (Bureau of Energy Efficiency) certified Energy Auditors with three more R&D engineers successfully clearing the National Certifications Examination for the same administered by the National Productivity Council.

- Based on innovative work done during the year, the R&D Division has filed one patent entitled "Oxygen Enrichment Technology using waste Nitrogen."

Sustainable Development

Sustainable development has been accorded the highest priority.

This requires the reconciliation of Social, Economic and Environmental Demands - the Three Pillars of Sustainability. At EIL, the sustainability mandate is not just about contributing to a good cause or complying with environmental regulations but rather about operating its business in a manner that is responsible and transparent to all its stakeholders and to the society at large.

In its commitment to the environment, the company saw the deployment of state of art technologies in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements, carbon management for control of volatile organic compounds, hazardous and solid waste management, recovery of oil from oily sludge and treatment of oily sludge using bioremediation process, opting energy efficient processes and treatment system as part of its key accomplishments during the year. The Company's Environment Division continued its progress in the field of Water & Waste Water Treatment Plants, Environmental Impact Assessment (EIA), Environment Health Safety Assessment, Feasibility and other Environmental Studies, which proudly reflect the strength of Environment Division.

This year EIL is the only government organization that is authorized by GOI for carrying out EIA studies and was selected from 265 government and private organization that had applied.

On the societal front, pursuing its goal of inclusive growth, the Company's CSR Policy was updated and aligned with the national accent on inclusive growth and the DPE Guidelines on CSR.

This year also saw the company making a planned shift towards a new approach to business that creates long-term shareholder value by managing its economic, environmental and social risks and opportunities.

The company management sees business opportunity in its sustainability policy. By delivering its services in a sustainable way, and taking a long term perspective the management hopes to ensure EIL's enduring future success in harmony with the wider world.

Plant Operations and Safety

The Plant Operations and Safety Division (POSD) of EIL continued to provide services in the following areas during the year:

- Process design for Offsite Facilities of Refinery, Petrochemicals, Gas Processing Units, Oil Terminals. Onshore Terminals, Topsides of Strategic Storages (underground caverns), Cross Country Pipelines, LNG Terminals etc.

- Safety related studies like Hazards and Operability Study (HAZOP), Hazard Identification (HAZID), Risk Analysis & Quantitative Risk Analysis (QRA), Safety Integrity Level (SIL), Safety Audits, Safety Reviews and Emergency Planning.

- Pre-commissioning & commissioning of process plants, Utilities, Offsites in refineries, petrochemical and gas processing areas, terminals of crude oil, product and LNG and pipelines etc. including total responsibility for LSTK projects and Operating Manuals preparation.

The following major assignments were completed/were in progress during the year:

- Process package for offsites and utility facilities of Integrated Refinery Expansion Project (IREP), BPCL, Kochi.

- Process package for offsites, storage and transfer facilities for Wax Project of Numaligarh Refinery.

- Process package for SPM and associated onshore and offshore facilities at Mangalore.

- Process package for augmentation of Kota - Piyala section of Mumbai - Vizag Pipeline

- Process design of offsites facilities for GAIL Petrochemical-II project.

- Based on in house developed design capabilities, process package for design of Vapor Recovery System of MRPL Phase - III project completed.

- DFR for crude oil pipeline upgradation of OIL Trunk pipeline system, capacity augmentation of Jamnagar - Loni LPG pipeline of GAIL and Dabhol - Bangalore Pipeline Phase-II of GAIL.

- PMC/EPCM services for Topside facilities for Strategic Storage of Crude Oil at Padur for ISPRL, intermediate & product storage and transfer facilities for OPaL, Dahej and BCPL.

The Division has successfully completed the following major commissioning assignments during the year:

- Commissioning of 9 MMTPA grassroot Guru Gobind Singh Refinery at Bhatinda of HMEL.

- DHDT Project of Bongaigaon Refinery of IOCL. IOCL-BGR is the first refinery in the country to adopt the indigenous technology developed by EIL-IOCL R&D Consortium.

- Early commissioning of CDU / VDU, Utilities & Offsites of MRPL Ph-III Project.

- Commissioning of Mundra - Bathinda Crude Pipeline.

- Commissioning of Vijaipur-Dadri-Bawana GAIL Gas Pipeline along with Vijaipur / Jhagua Compressor Stations.

The following pre-commissioning/commissioning activities were under progress during the year:

- Commissioning of various units of MRPL Ph-III project.

The Division continued its efforts in securing new business in both domestic and overseas markets and undertook following major studies during the year:

- Quantitative Risk Analysis (QRA) for PLL's LNG Terminal at Dahej, Integrated QRA for entire Panipat Complex of IOCL (Refinery/Petrochemical/Terminals).

- HAZOP studies for GAIL- I Complex, IOCL Mathura Refinery Complex and various units of BCPL and OPaL Projects.

- HSE studies including HAZID, HAZOPS, SIL, QRA etc. for Dragon Oil, Turkmenistan.

- HAZOP study for Hydrogen Plant of BAPCO, Bahrain' Research work on failure of Relief valves of BAPCO, Bahrain

Development projects initiated earlier like design of Vapour Recovery System and new business initiatives like O&M services to industry are in progress.

Heat and Mass Transfer

The Heat and Mass Transfer Division (HMTD) of EIL continued to provide thermal/hydraulic/mechanical designs for Fired Heaters, Cast/Glass Air Preheaters, Mass Transfer Systems, Sulphur Recovery Equipments and Ejectors in addition to thermal design of Heat Exchangers & Air Coolers.

The Division also continued to provide process services for offshore jobs of both ONGC and GSPC.

The Division undertook many jobs where various innovative/value added services along with cost cutting measures were provided. Some of the key achievements are as follows:

- A prestigious job was undertaken for improving Air Cooler efficiency for Ruwais Refinery of Abu Dhabi Oil Refining Company (TAKREER), Abu Dhabi. An Engineering study was carried out to assess the current performance of Air-cooled Heat Exchangers after a detailed site survey.

- HMTD has recently carried out design of 3 nos. Inverted Kettle Heat Exchangers for GAIL-Pata & GAIL-Vijaipur. Inverted Kettle Exchangers are special type equipment where tube side fluid is under cryogenic condition and sub- zero temperatures are frequently encountered.

- Based on supportive interaction with a reputed licensor, HMTD demonstrated its expertise in using HTRI Software. With this breakthrough, EIL now has proven capability in design of Inverted Kettle Exchangers for cryogenic service. This will result in significant cost savings to our clients and eliminating monopolistic approach of vendors.

- HMTD rendered services to IOCL, Mathura for enhancing capacity of CDU heaters corresponding to 11 MMTPA including replacement of burners for reducing NOx emission. The job included site survey to ascertain the current operating performance & identification of constraints. Basic engineering data along with burner technical / tender specifications have been furnished to enable execution by client to meet the challenging shutdown requirements in a fast & reliable manner.

- HMTD rendered services to Ruwais Refinery of TAKREER for the study for performance improvement & feasibility to install APH in their existing crude heater. Client was facing chronic problems of high flue gas temperatures/flame impingement in the heater. The study involved site survey & suggesting remedial measures to be adopted for safe operation of the heater. To provide efficient services, an interactive philosophy was adopted through periodical discussions/presentations leading to time saving to conclude the study.

- Reliance Industries Limited (RIL), Vadodara placed an order to study for capacity enhancement of their Steam Superheater. As a cost saving measure, RIL desired to utilize the existing heater to super-heat high pressure steam for feeding to downstream turbine. Innovative revamping techniques with least cost have been suggested to client as part of the study to achieve desired objectives.

- The Division also handled major projects in the offshore, onshore and multiphase pipeline sectors. With its In-house process design capabilities and expertise, the Division has been successfully delivering the milestones for New Gas Injection/Gas Lift/Oil facilities for ZADCO, Abu Dhabi; implementation of HAZOP recommendation for ADMA- OPCO, Raw and Produced Water Treatment and Injection facilities for Petrolera Indovenezolana, PDVSA, Venezuela; Wellhead Platform/Process cum Living Quarter platform and sub-sea pipeline projects under Deen Dayal Field Development Project of GSPC; FEED packages for WO-16 and Cluster-7 platforms & Revamp of 39 unmanned wellhead platforms, GTG Replacement at Sagar Lakshmi platforms for ONGC.

- Division continued its efforts in technology development and knowledge acquisition through MoU with Kevin Enterprises Limited, Mumbai for joint development of various mass transfer column internals, e.g, high capacity trays, structured packing.

Specialist Materials and Maintenance Services

The Company continued to provide specialist materials and maintenance services to its clients in Petroleum, Petrochemical, Metallurgical and Infrastructure sectors during the year. Some of the important activities are:

- Health Check study for GAIL plants in Vijaipur, Gandhar, Usar and Vagodia

- Health study & RLA for critical equipments of Indo-Gulf Fertilizer Ltd.

- Health assessment & preparation of Development Plan for Trincomalee Oil Storage Terminal of Lanka IOC, Sri Lanka.

- Study of CP System in Tata Chemicals, Babrala, UP

- Condition assessment of 30" Crude Pipeline, ONGC- Ahmedabad

- Review of Refractory & Insulation in Mombasa Refinery of Kenya Petroleum Refinery Ltd. ,

- Failure Analysis of Cooling water Pumps of Essar Oil Ltd.

- Refractory Lining design & engineering analysis for Lifting of Combustor in Mundra Unit of Philips Carbon Black.

- Refractory Lining modification in Mangalore Chemical & Fertilizer Ltd.

- Technical advisory services to HPCL, Vizag and to various refineries of IOCL.

- Material Selection for equipment, piping and pipelines for various on-going projects viz., GGSR, MRPL, OPaL, BCPL, NPCIL and GSPC.

- SMMS Division has been advising and specifying on the Corrosion Monitoring Systems, Inhibitor Injection Systems, Corrosion Protection Coatings, Cathodic Protection Systems for Onshore and Offshore pipelines and Chemical Cleaning Systems for new plants.

- SMMS has been actively involved in evaluating newer materials, fabrication and inspection techniques for the benefit of industries and have also contributed to the National and International Standardization bodies like BIS and ISO.

Environmental Engineering

The new green economy has propelled the world to opt for stricter environment norms and have opened up new vistas for Environment related business. Taking initiative in this direction, the Environment Division took steps for the implementation of clean and green technologies in order to reduce carbon footprint of the project. The state of art technologies in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements, carbon management for control of volatile organic compounds, hazardous and solid waste management, recovery of oil from oily sludge and treatment of oily sludge using bioremediation process, opting energy efficient processes and treatment system, have given the Division a new vision. Environment Division continued to stride in the field of Water & Waste Water Treatment Plants, Environmental Impact Assessment (EIA), Environment Health Safety Assessment, Feasibility and other Environmental Studies, which proudly reflect the strength of Environment Division.

Some of the major achievements of Environment Division include the following:

- Successfully commissioned Wet Air Oxidation Plants at MRPL, Mangalore and Guru Gobind Singh Refinery at Bathinda based on in-house developed technology.

- Successfully completed EIA reports for GAIL Pata, GAIL Vijaipur, Petronet LNG, and CRZ clearance for Kudankulam Nuclear Power Plant (KKNPP).

- Successfully completed Environmental Health Risk assessment for NTPC Super Thermal Power Station at Kaniha.

- Estimation of EIL's Carbon footprint for EI Bhawan and R&D Centre.

- Study for IOCL Vadodara for the improvement in the existing Effluent Treatment Plant, Feasibility Studies for Desalination Plant at Barmer, Rajasthan.

- Process Package for Solid Waste Incinerator at IOCL, Paradip, a first for EIL

- Engineering work for balance of plant for KKNPP 3-6 for NPCIL. The highlight of the project is comparative analysis of Thermal Desalination and Reverse Osmosis.

- Consultancy services to Areva / Reliance Solar Thermal Power Plant at Rajasthan for their water packages.

Information Technology Services

Information Technology Services (ITS) Division of EIL continued to provide critical IT enabled services during the year. This year the focus has been to develop/implement systems resulting in fast execution of projects, productivity enhancement, cost reduction, faster decision making and better services to clients. Some of the activities undertaken were :

- Process Data Sheet Integration Systems (PDSIS) has been implemented for generation of Process data sheets and a centralized knowledge database for storage of technical parameters of various equipment. This will decrease time for down stream engineering activities for the future projects thereby reducing time schedules and ensuring consistency in the quality of documents.

- To ensure timely completion of project activities, feature to generate auto alerts have been built in various software systems such as Electronics Document Management System (eDMS), Project Progress Monitoring System and Vendor Document Management System.

- To automate activities relating to engineering functions, development of workflow based software systems has been initiated.

- Web based portals, integrated with eDMS of EIL, have been developed for electronic/on-line exchange of documents with suppliers, contractors, clients etc.

- Online Concessions and Deviations Management System has been implemented to manage entire life cycle of concessions and deviations submitted by suppliers and contractors. This shall reduce the decision making time on such matters.

- As a part of Green Initiative, printed reports in many systems have been reduced considerably and information is transmitted/exchanged electronically in a secured manner.

- Developed on-line e-investment system for Fixed Deposits and other investments.

- On-line Campus Recruitment System and On-line Induction System for Management Trainees/new joinees has been put in place.

- An Enterprise Risk Management System (ERMS) has been implemented to identify and manage existing as well as new risks in a planned and structured manner. The system shall increase the effectiveness of risk reporting structure and involvement of all the employees within their own areas of responsibility across the ERM phases. It shall also facilitate the accurate, complete and timely escalation of risk information to support management decision making.

- To enhance the degree of continuity for EIL's business operations and to plan for the risks relating to any disaster, initiatives have been taken to set up a Disaster Recovery Centre at EIL, Chennai.

Procurement Services

The Procurement Services Division of EIL provides complete supply chain management services for various projects handled by EIL, both as a consultant and a contractor. Timely and efficient procurement of goods and services is a major and critical factor in determining EIL's success in execution of projects.

The Division has been spearheading implementation of newer technologies in order to upgrade the efficiency and effectiveness of procurement. Over the years, all procurement functions have been IT enabled - from the receipt of an indent upto Inspection, Dispatch and Transportation of the Equipment. In addition, the Division has already implemented e-procurement as well as reverse auction for its contracting and purchasing. The Division has an integrated in-house ERP & EDMS application linking all procurement functions across various geographical locations.

Public procurement has three vital components, i.e., transparency, equity and fairness. EIL is continuously focusing to ensure the same whilst simultaneously improving the procurement

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Mar 31, 2011

The Shareholders

The Directors have great pleasure in presenting the 46th Annual Report together with audited accounts of the Company for the year ended March 31, 2011 along with Audited Statement of Accounts, the Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India.

2010-11 in Retrospect

EIL continued its good performance during the year 2010-11. The salient features are as follows:

Turnover : Rs. 282328 lakhs

Profit Before Tax (PBT) : Rs. 78453 lakhs

Profit After Tax (PAT) : Rs. 52251 lakhs

Turnover from core consultancy business increased y-o-y by 7 % to Rs. 112794 lakhs. LSTK business increased y-o-y by 81 % to Rs.169534 lakhs.

Dividend

The Board of Directors of the Company has recommended for the financial year 2010-11, a final dividend of Rs. 4/- per share (of face value of Rs. 5/- each) in addition to Rs. 1/- per share interim dividend already paid during the year. With this, the total dividend for the financial year 2010-11 works out to Rs. 5/- per share. Payment of final dividend is, however, subject to approval of the shareholders in the Annual General Meeting.

Investor Relations

Company is committed to continually improve its Corporate Governance Practices for effectively managing its businesses and for protecting the interests of all stakeholders. Our management is responsive for ensuring that the performance of the Company is adequately reported to its shareholders, investment community, relevant regulators and concerned public on a regular basis.

An Investor Relations (IR) Cell has been constituted under Director (Finance), as a nodal intermediary with investment community for disseminating information on Company in timely, accurate and consistent manner. IR Cell is responsible for creative effective channels of communication in form of press, website, conference, road-show and analyst meets for periodically disseminating company information such as financial results, dividend policy, shareholding pattern, investor/analyst reports and presentations and news updates.

Senior Management is actively engaged in annual meets and conferences for enabling financial community to understand Company's business model and to share with them business outlook strategic direction and growth plans.

Company plans to exploit potentialities of various channels of communication for effective business communication and information sharing. Online discussion forums, group conferencing, webcasts, newletters and tablet computing are being planned.

EIL remains committed to creation of an open and transparent environment for reaching out to existing and potential investors and other stakeholders.

Management Discussion & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Sector wise details of operations of the Company are given below:

Petroleum Refining

Petroleum Refining sector continued to play a dominant role in Company's business. During the year, EIL has achieved good progress on the following major jobs, some of which were commissioned / likely to be commissioned in the next financial year. These jobs include :

- 6 MMTPA grassroot Bina Refinery of Bharat Oman Refineries Ltd. (BORL): All the process units were commissioned during the year. BORL is now taking up commercial production. This refinery has full conversion hydorcracker unit integrated with diesel hydrotreater. The pet coke produced in Delayed Coking Unit (DCU) will be used for power generation in the Captive Power Plant (CPP).

- 11.5 MMTPA BPCL-Kochi Refinery's CEMP-II Project (Capacity Expansion & Modernization Project - II) at Kochi : All the process units of this project were mechanically completed and commissioned during the year. Petroleum products meeting Euro III & IV specifications are being dispatched to consumers from the Kochi Refinery. Completion of this project was indeed challenging, given the geographic constraints and long spell of one of the highest rainfalls in the country.

- Euro-IV Project of CPCL : The project comprising of NHT-Isom and DHDT Units executed on LSTK-OBE mode was commissioned during the year.

- For the implementation of Euro III & Euro -IV fuel compliance in north-east Assam, EIL was engaged for upgradation of Refinery of IOCL at Bangoigaon and by NRL for their Numaligarh Refinery for the following units :

- 1.2 MMTPA Diesel Hydrotreater Project (DHDT) of IOCL- Bongaigaon Refinery was completed during the year. For DHDT Unit, EIL-IOCL, indigenously developed technology was used and for the HGU, Sulphur Block (SRU, SWS & ARU) and associated Utilities & Offsites, EIL's indigenously developed technology was used.

- Diesel Quality Upgradation Project (DQUP) of NRL : The project was completed within a shut-down period of 50 days and this could be achieved by adopting meticulous planning of material and resources available at site.

- Panipat Refinery Additional Expansion Project (PRAEP) : EIL has successfully executed, a mega revamp project of IOCL's Panipat Refinery raising the refining capacity from 12 MMTPA to 15 MMTPA. The mega shutdown was executed concurrently in Crude and Vacuum units, Hydrocracker, Delayed Coking Unit and Amine Regeneration unit with zero lost time incident and involving huge quantity of existing piping and equipment replaced with new facilities.

- CDU/VDU-III and NHT/CCR Revamp projects of Chennai Refinery of CPCL were completed and are under full commercial production.

- FCC Project at HPCL's Mumbai Refinery was mechanically completed in December, 2010, and fully commissioned thereafter.

- 9 MMTPA grassroot Guru Gobind Refinery Project of HPCL - Mittal Energy Limited at Bathinda has made steady progress and 96.4% of physical progress has been achieved as on 31.03.2011. The facilities at SPM ( Onshore & Offshore) for receiving crude from tankers and crude oil terminal for storage and onward pumping to refinery through 1014 km of 30" / 28" pipeline have been mechanically completed / tested with water and are ready for crude-in upto COT facilities. All the major equipments have been delivered and installed in position at Bathinda site. CDU / VDU, the mother unit has been mechanically completed. The balance work on all other downstream process units is progressing in full swing and the units are being mechanically completed progressively enabling commissioning of the entire complex by the third quarter of 2011-12. - Mangalore Refinery Ph-III Project of MRPL involves capacity expansion from 12 MMTPA to 15 MMTPA with product quality improvement to Euro-IV specifications. The entire project is being implemented on hybrid mode of execution including LSTK/OBE/conventional system. The project activities are in full swing with LSTK/ OBE & EPCM contractors having fully mobilized for all the units and Utilities & Offsites. Engineering and procurement activities are nearly complete. Construction activities of the project are at the peak despite the obstacles posed by inclement weather during the monsoon spread over 5-6 months period.

MRPL under Phase-III Expansion Project have embarked upon a major initiative to not only upgrade the value of the products from their existing refinery, but also to enhance their profitability considerably by installing a Petrochemical Fluidised Catalyte Cracking (PFCC) for production of Polymer Grade Propylene. The PFCC Unit has been awarded to EIL on OBE convertible to LSTK mode. The PFCCU forms the key secondary processing facility of this Project and is one of the pivotal units which add substantive value to the Project. The unit has been licensed by M/s. Shaw Stone & Webster and is designed for a high severity operation with a capacity of 2.2 MMTPA to produce about 445,000 TPA of Polymer Grade Propylene. The challenge in this project is highly exacerbated on account of the extreme criticalities arising out of the unit size and associated complications. The sheer magnitude and the volume of work involved in the Project itself poses critical challenges of building one of the most complex process units in the Refining industry, implemented hitherto in India. SRU Block is also being implemented on OBE convertible to LSTK mode. Engineering and procurement activities are nearing completion and construction is in full swing for the SRU Block.

MRPL also awarded the Polypropylene Unit (PPU) to EIL on OBE convertible to LSTK mode of implementation. Detailed engineering and procurement activities are in the advanced stage of completion. The site execution of PPU at MRPL, was one of the most challenging tasks, due to uneven terrain at the site. Work at this site included piling, foundations and superstructure works, which are currently progressing well at site.

Engineering, procurement and construction are in advanced stages for the Wet Air Oxidation (WAO) Unit at MRPL Phase-III, awarded to EIL on LSTK basis. This is the first WAO unit where EIL is the licensor.

- EIL is also providing PMC services for implementation of 366 MW Captive Power Project (CPP) of IOCL's 15 MMTPA Paradip Refinery Project. BHEL is the LSTK contractor for this Project. Various activities for this project are in full swing.

- Engineering and procurement activities for CDU/VDU-II Revamp of CPCL are progressing well.

- EIL is also offering PMC Services for New Coke Chambers & Allied Modernization Facilities at Guwahati Refinery of IOCL.

Turnover from consultancy and engineering segment increased by 7 % to ? 112794 lakh. Lumpsum Turnkey project segment increased by 81 % to? 169534 lakh.

A number of new project assignments were bagged by EIL during the year 2010-11 and work has commenced on all these projects, These include :

- DFR for grassroot Refinery in Maharashtra for HPCL, Mumbai.

- EIL is also awarded the contract for Project Management Services for BPCL-Kochi Refinery for their new Integrated Refinery Expansion Project (IREP) at Kochi. The scope of work includes selection of licensors, preparation of detailed feasibility report and site grading. The work on this project has commenced.

- EPCM services contract for Wax Project of NRL was awarded to EIL during the year. The project involves setting up of Wax Plant, consisting of Solvent De-oiling Unit (Licensor: EIL along with IIP) and Wax Hydro Finishing Unit (Licensor: Axens, France) and associated Utilities and Offsites to produce 50,000 MMTPA of Paraffin Wax including 4,500 MMTPA Semi Micro-Crystalline Wax.

In addition number of new project studies were taken up during the year. Many of our major project assignments originate from these studies. This is a sign of confidence that our customers repose in our Company's technological expertise, particularly our ability to provide complete range of services from concept to commissioning.

Petrochemicals

This year also witnessed significant growth in the Company's Petrochemical segment. During the year, EIL continued to make significant progress on following major jobs.

- Assam Gas Cracker Project of Brahmaputra Cracker and Polymer Limited (BCPL), a grassroot Petrochemical project being executed on conventional mode at Lepetkata near Dibrugarh has made significant progress during the year. Procurement for critical equipment & award of major construction contracts has been completed. Engineering is in advanced stage. Once completed, this complex will produce HDPE/ LLDPE and PP and availability of these products shall boost the development of plastic industry in North-East region.

- Dahej Petrochemical Complex of ONGC Petro-additions Limited (OPaL) is being executed on PMC - LSTK mode. Construction activities for upstream cracker unit are in full swing. Significant progress has been achieved in award of LSTK packages for various downstream units, Utilities & Offsites. The Project consists of 11,000 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE, PP Units and associated Utilities and Offsites.

- EIL has been awarded the prestigious, fast track, GAIL Petrochemical Complex - II Project during the year. The project has facilities at Vijaipur & Pata consisting of Gas Sweetening, Gas Cracker, C2/C3 recovery, LLDPE/HDPE Swing, Butene-I units as well as Utilities & Offsites. The Gas Processing Unit (GPU) at Vijaipur at a capacity of 21.71 MMSCMD, apparently is one of the largest gas plants being designed in the world for recovery of C2/C3 fraction as feed to GCU.

- GAIL took the unique initiative of nominating the Licensor (M/s Shaw Stone & Webster) for GCU thereby giving impetus to the project. Licensor selection for downstream units is also completed. Utilities & Offsites facilities have been sized and infrastructure works are proceeding in full swing at both sites. Advance action has been taken for procurement of long lead items like compressors, steam generation package, columns etc.

- The Butadiene Extraction Unit (BDEU), IOCL's Panipat Naphtha Cracker Project (PNCP) has been awarded to EIL in Oct 2010 and is being executed on EPCM basis. The 138,000 TPA capacity unit has been licensed by CB & I Lummus. Engineering & procurement activities for the project are in progress.

Pipelines

EIL has been aggressively working in areas of oil & gas transportation and distribution in India and abroad. Following pipeline projects were successfully completed and commissioned during the year:

- 48" (largest diameter gas pipeline) x 498 km Vijaipur-Dadri and 36" /20"x 95 km Dadri-Bawana Natural Gas Pipeline of GAIL.The project was completed well in time despite the challenges of river crossings at Chambal & Yamuna.

- 18 "x 257 km Bina-Kota multi product pipeline of BPCL.

- Short connectivity Gas Pipelines from Dadri-Bawana Pipeline to Sonepat, Meerut, Agra, Ferozabad for GAIL, NDPL and IOCL Dadri Terminal

- 30"/24"x300 km NGL Pipeline of GASCO, Abu Dhabi.

Following pipeline/ associated projects handling oil & natural gas are under execution :

- Two additional Compressor stations at Chainsa (Haryana) and at Kailaras (Madhya Pradesh) on Vijaipur-Dadri Pipeline of GAIL.

- 30"/28" x 1014 km Mundra-Bathinda Crude Oil Pipeline of HMPL

- 36"/30"/24"/18" x 995 km Dabhol-Bangalore Natural Gas Pipeline of GAIL.

- 10" X 26 km LPG Onshore/Offshore Pipeline from BPCL/HPCL Mahul Refineries to Uran for BPCL.

- 18"/16" x 275 km Natural Gas Pipeline from Vijaipur to Kota & Spurline to Chittorgarh for GAIL.

During the year, EIL has been selected for the following new major pipeline projects for which work is under progress:

- EIL bagged South Jetty Development Pipeline Project at Paradip for loading/unloading of petroleum products and crude oil from IOCL Paradip Refienery comprising 21 nos. 4" to 38" pipelines with a total length of 140 kms. This jetty will handle variety of oil & gas products including crude and is first of its kinds in India.

- 46 no. of flow lines of various sizes(3" to 20") totalling to 240 km for NPCC/ADCO, Abu Dhabi

- Health & Integrity Check of City Gas Distribution network of Adani Gas in Lucknow City and its integration with Green Gas Limited.

- Detailed Feasibility Report (DFR) for augmentation of Jamnagar - Loni, LPG Pipeline of GAIL. The Jamnagar Loni pipeline is one of the longest LPG Pipelines in the world .

- 12" x 100 km Hazira-Dahej Naphtha Pipeline for ONGC.

In addition, EIL intends to diversify into City Gas Distribution on owner/ operator mode and bid for various cities as equity partner for new pipeline projects currently under bidding for PNGRB.

Offshore Oil & Gas

During the year, EIL continued to provide PMC services to GSPC for the following projects for their Offshore Block.

- Wellhead Platform

- Process -cum-Living Quarters Platform

EIL is executing SPM and Associated Facilities Project of MRPL at Mallavaram (A.P.) on open book estimate basis. After installation of these facilities, MRPL shall be able to import crude by VLCC Tankers upto 300000 DWT capacity resulting in cost savings.

EIL is also providing pre-award services to ONGC for WO-16 Cluster, Cluster-7, BHE and associated sub-sea pipelines projects.

EIL has received work orders for providing post-award services of WIN Revamp project of ONGC and crude handling facilities for IOCL at Paradip. The crude handling facility shall meet the requirements of Paradip Refinery including other eastern refineries of IOCL.

EIL is also entering into cooperation agreements with multinational companies having expertise in deep water engineering. This is viewed as an emerging sector for the Company.

Onshore Oil & Gas

GSPC, as a part of Deen Dayal Field Development Project, is implementing an Onshore Gas Terminal (OGT) facility at Mallavaram (A.P.). The project is being executed on OBE - LSTK mode consists of two trains of 100 MMSFD each with GDU, GSU, CSU and Sulphur Recovery Unit and associated Utilities & Offsites. The process package has been finalized and engineering procurement are in progress.

EIL is also providing PMC services for additional gas processing facilities for ONGC at Hazira.

Strategic Storages

In view of rapid economic growth and increasing energy demand, the issue of energy security has assumed importance. The country's high dependence on import for its oil and gas needs, Government of India has decided to accord high priority to securing India's energy security objectives; and is constructing a buffer for reserve supply of crude oil to deal with any disruption in the supply chain.

Under Phase-I of the crude oil strategic storage programme, Government of India is developing crude oil storages at three locations, viz. Visakhapatnam, Mangalore and Padur. Sub- surface Projects Division (SSPD) of EIL is executing these three underground rock cavern projects. The project at Visakhapatnam is in advanced stage and mechanical completion is expected to be achieved by October 2011.

Under Phase-II of the crude oil strategic storage programme, EIL prepared the pre-feasibility report for storage of crude oil and petroleum products in underground rock caverns, in-ground concrete tanks and salt caverns. Subsequently, EIL has, on advice of Indian Strategic Petroleum Reserves Ltd., submitted a

proposal for preparation of detailed feasibility report for such storages, at four locations. EIL expects to be awarded the project shortly.

EIL is striving to attain design capability in such areas of underground storage. Having engaged and gained expertise from foreign back-up consultants for the projects at Mangalore and Visakhapatnam, EIL is executing the Padur project independently without the services of a back-up consultant. Services of an expert have been sought solely for the review of design of critical items executed by EIL.

Metallurgy

The Metallurgy Division of EIL continued to excel during the year, far exceeding the client's expectations. The following major projects were implemented/ and are in various stages of implementation :

- The Second Phase Expansion of NALCO Aluminium Smelter (from 345,000 TPA to 460,000 TPA) at Angul, Orissa has been completed.

- The Second Phase Expansion of NALCO Alumina Refinery at Damanjodi, Orissa (from 1.575 MMTPA to 2.1 MMTPA) Bauxite Mines at Panchpatmali (from 4.8 MMTPA to 6.3 MMTPA) are under execution.

- Fourth Stream Upgradation Project (from 0.525 MMTPA to 0.7 MMTPA) of Alumina Refinery at Damanjodi of NALCO is under execution.

- Engineering services are being provided for Mahan Aluminium Smelter (capacity 360,000 TPA) of HIL (Hindalco Industries Ltd), at Singrauli, M.P. and for Aditya Aluminium Smelter Project (capacity 360,000 TPA) of HIL at Lapanga, Orissa. Engineering for these projects is in advanced stages.

Infrastructure

The Infrastructure Division of EIL is providing Project Management services, Third Party Inspection services, Quality Assurance services, as "Independent Engineers" services and working also on "Deposit Concept" for various clients.

The clients include State Trading Corp, Indian National Science Academy, Petroleum Conservation Research Association, Apparel Export Promotion Council of India, Indira Gandhi National Open University, Oil India Limited, Indraprastha Gas Limited, Defence Research Development Organization, Nationazl Highways Authority of India, Airports Authority of India, Sardar Sarovar Narmada Nigam Limited, Delhi Jal Board, Delhi University, New Delhi Municipal Corporation and Housing & Urban Development Corporation.

The projects like Extension Campus of IIT Roorkee at Greater NOIDA, Development of Rugby Stadium for Commonwealth Games 2010 at Delhi University & OIDB Bhawan for Oil India Development Board (OIDB) were completed during the year.

During the year, EIL was awarded PMC services for Development of Regional Biotech Centre at Faridabad for National Institute of Immunology and Data Centers for Unique Identification Authority of India at Delhi/ Bengaluru were secured. Also TPI works for Indo-China Border Road works has been secured from Ministry of Home Affairs.

The current financial year witnessed commencement of the assignment for development of campus for Rajiv Gandhi Institute of Petroleum Technology at Sibsagar, Assam.

Efforts are on to venture into EPC/ PPP projects in different sectors, especially the water sector. A special Water Initiative has been taken forward by the department to secure major jobs in the water sector in the country. Also efforts are on for gaining consultancy services for infrastructure projects in the areas of Urban Development, Intelligent and Green buildings, Highways and Airports, Solid Waste Management etc.

EIL's Business Growth Initiatives

EIL has diversification plans for the following strategic areas :

Fertilizers

Under the business growth initiatives pursued by the Company, EIL targeted 'Gas based fertilizer plants' as one of the growth areas for exploring new business opportunities. To secure new jobs, EIL made continual efforts which culminated into award of an EPCM services contract from M/s Jaiprakash Associates Ltd, New Delhi for their fertilizer units at Panki, Kanpur. The new units of Ammonia (2200MTPD) and Urea (2x1925MTPD) along with associated Utilities/Offsites shall be completed within a schedule of 33 months. The basic process design package shall be provided by M/s KBR, USA for Ammonia and M/S TOYO, Japan, for Urea. EIL's scope shall consist of residual process engineering, detailed engineering for all Utilities and Offsites with overall project management services.

Water and Waste Management

In this sector, EIL intends to focus on water desalination and treatment projects, urban water distribution projects, waste water collection and treatment, waste water disposal; and residue disposal projects. EIL will continue to target engineering consultancy and PMC opportunities as well as EPC projects. A major project of Laying of Interceptor Sewerage System along Najafgarh, supplementary & Shahdara Drains for Delhi Jal Board (DJB) is under execution.

City Gas Distribution

This sector is another sector which has a high growth potential. EIL believes that given its track record of providing engineering consultancy and EPC services for urban infrastructure projects and cross-country hydrocarbon projects, the city gas distribution sector provides attractive opportunities. EIL intends to pursue strategic city gas distribution projects through equity investments to own and operate such networks. Memorandum of Understanding (MoU) has been signed with GSPC in this area.

Power

Power Division has been created during the last quarter of 2010 with a vision to diversify in the power sector and benefit from the considerable opportunities in Nuclear, Thermal, Solar and other renewal energy projects. The decision to diversify has been taken considering an estimated investment of the order of Rs.12.9 lakh crores in the electricity sector in the next five years.

- Nuclear

With a view to expand its operations in the Nuclear Sector, EIL has signed a Memorandum of Cooperation (MOC) with Nuclear Power Corporation of India Ltd. (NPCIL). Under this agreement, EIL shall carryout the engineering, procurement, construction and project management for nuclear and balance of plant areas of nuclear power plants. EIL has also been selected by NPCIL for carrying out Environment Impact Assessment (EIP) for their upcoming nuclear power project in Gujarat. EIL has also signed a Memorandum of Association with ITER, India, against which EIL is providing engineering services for cooling water and heat removal systems.

- Captive Power Plants

EIL is providing PMC and technical services for captive power plants for various clients and has also undertaken a Detailed Project Report along with tender preparation and evaluation for CPP for Kribhco.

- Renewable Energy

As a part of its efforts to enter into renewable energy sector, EIL participated in the first phase of the National Solar Mission to bid for a 5 MW Solar Photovoltaic Power Project along with GAIL PMC services were also provided to GAIL for their bid for a 50 MW Solar Thermal Project. EIL intends to aggressively pursue solar thermal projects which offer synergy with EIL's capabilities.

Turnkey Projects

EIL is executing turnkey projects either on LSTK mode or on the 'Open Book Estimate' (OBE) basis. Following jobs made substantial progress during the year.

- Euro-IV Project of CPCL comprising of NHT-Isom unit and DHDT unit being executed on LSTK-OBE mode was commissioned during the year.

- Significant progress was achieved on three OBE convertible to LSTK packages, namely PFCC, SRU Block and PP of MRPL Refinery Expansion Phase III Project.

- Wet Air Oxidation (WAO) package of MRPL Phase -III Refinery Expansion Project is being executed as LSTK package by EIL.

- SPM and associated facilities project of MRPL Phase-III project is being executed on OBE mode.

- Basic Engineering was completed and other project activities are in progress for the On-shore Gas Terminal Project of GSFC at Kakinada, A P. This is being executed on OBE mode.

Overseas Assignments

There has been steady progress with EIL's global expansion plans during the year. Apart from continuing success with existing projects, EIL was also able to bag new overseas assignments during this year.

Assignments completed during the year include:

- Replacement of NGL Pipelines Network Project, for M/s GASCO, Abu Dhabi

- Olefins Conversion Unit (OCU) and Polypropylene Unit (PPU) of Abu Dhabi Polymer Company Ltd. (Borough) of Ruwais, Abu Dhabi

Work progressed well on the following jobs during the year:

- Design & detailed engineering services to NPCC for Qusahwira Field Development 1.8 MM BOPD Project of ADCO for Abu Dhabi.

Abu Dabhi Company for Onshore Oil Operation (ADCO) has awarded Qusahwira Project to National Petroleum Construction Company (NPCC), Abu Dhabi on EPC basis. NPCC, in turn have awarded detailed engineering services to EIL. Qusahwira Project (Phase-1) mainly consists of two group gathering and crude processing stations, namely, Central Degassing Station (CDS) and Remote Degassing Station (RDS-1) and a 14" - 80 km. long main crude transfer oil line. EIL was qualified as an engineering consultant under stiff international evaluation and competition. EIL shall also provide field engineering support, commissioning support and inspection & expediting support to NPCC on call-basis (reimbursement basis).

- Replacement of GUP Hydrophor Fire Water System Pumps at Ruwais Refinery of Abu Dhabi Oil Co., Abu Dhabi.

- New Services Contract (till January 2013) for Development of Engineering Capabilities for M/s SONATRACH, Algeria.

- Rehabilitation and Adaptation Project of Skikda Refinery and Algiers Refinery of SONATRACH, Algeria

- Engineering Services to M/s Bahrain National Gas Company, Bahrain.

There has been steady progress with EIL's global expansion plans during the year. Apart from continuing success with existing projects, EIL was also able to bag new overseas assignments during this year

New major assignments secured by EIL during the year include:

- Pre-bid engineering services for Inter Refinery Pipeline-II (IRP-II) - Project of TAKREER, UAE of M/s National Petroleum Construction Company (NPCC), Abu Dhabi

- Engineering services for assess & select for Heat Exchanger Study - ZWSC/ GGII for M/s Abu Dhabi Marine Operating Company (ADMA-OPCO), Abu Dhabi

- Pre-bid engineering services for Hasbah-Arabiyah Field Development Project of Saudi Aramco for M/s National Petroleum Construction Company (NPCC), Abu Dhabi

- Design and Engineering services for Water Injection Plant and Cathodic Protection System for Pipelines for M/s Petro Venezolana S.A, El Tigre, Venezuela

- Engineering services to M/s BAPCO, Bahrain

- Design and detailed engineering services to M/s Bahrain National Gas Company, Bahrain

- Feasibility study & FEED for revamp of Effluent & Drainage Facilities at Sabhan & Ahmadi Depots for KNPC, Kuwait

- Licensor selection for Sohar Refinery expansion Project for ORPC Oman

- Consultancy Services for pre-project works in respect of DUQM Refinery and Petrochemicals Complex for Oman Oil Company (OOC), Oman.

Engineering

In the course of providing basic and detailed engineering services for our ongoing projects, Engineering Division of EIL continues its pursuit of excellence. All work processes in Engineering are fully computerized and workflows of different departments are seamlessly integrated. Engineering teams working at all our regional offices are also integrated and follows same mode. Some of the major independent assignments undertaken by Engineering Division during the year include:

- Procurement engineering for 34 MW Gas Turbine Driven Pipeline Compressors for GAIL Projects.

- Review of procurement engineering for 65 MW Steam Turbine Driven Cracked Gas Compressor and 35 MW Refrigerant Compressors for OPaL Project. These are the largest machines of its kind undertaken by EIL.

- Engineering, supply and installation of one the World's largest P. P. Extruders for MRPL.

- Design, engineering and review of Tall Towers of maximum weight 1450 MT, 11072 mm dia and 124650 mm height executed by Climbing Jack Method for OPaL Project.

- Design, engineering and installation of VGO, HDS reactor of alloy steel construction of maximum weight 780 MT, 4485 mm dia and 37885 mm height erected by Strand Jack Method at BPCL, Kochi Refinery Project.

- Procurement engineering for 2.5 MW Diesel Engine driven pump packages, the largest of it's kind ever engineered & procured by EIL for SPM of MRPL Project.

- Conceptual design & review of special Duplex SS cavern pumps for crude service & seepage water service for approx. 90m depth underground rock caverns, first time by EIL.

- Engineering, layout and composite analysis involving very high pipe sizes for PFCC unit of MRPL including a maximum size of 127" for the first time.

- Engineering for 220 kV, 180 MVA regulating & rectifier transformers for Hindalco's Aditya & Mahan Aluminum Smelter projects.

- Engineering for 360 MW CPP involving Frame-9, 118 MW GTGs, 30 MW STGs and 66kV Double bus Gas Insulated Switchgear for bulk power distribution for IOCL Paradip Refinery Project.

- Engineering for 66 kv in plant Power distribution involving 66 kv GIS & 66 kv Cables for OPaL, Dahej Project.

- Implementation of state-of-the-art Wireless TETRA (Terrestrial Trunked Radio) based mobile communication for voice and short date services and emergency services like Public Address/General Alarm (PAGA) system in Guru Gobind singh Refinery of HMEL.

- Implementation of state-of-the-art Wireless based Process Plant Perimeter surveillance system in BCPL Dibrugarh.

- Implementation of High Integrity Pressure Protection System(HIPPS) for Downstream Pressure Protection at 15000psi for GSPC well head platform

- Implementation of state-of-the-art sand measurement and alarm system at 15000psi pressures at Well head platform of GSPC, first time in India.

- Set-up of FGL and finalization of earthwork quantities involved in a project through 3D modeling implemented by the Company for the first time.

- Development activity related to upheaval buckling of pipeline has been carried out.

- Based on the requirement of Nuclear Industry, capability has been developed in generation of floor response spectra from the site specific seismic spectra.

- Standardization of mounded bullets based on code PD 5500 has been done for various lengths upto 90 meters.

- Adopting and implementing green building design concepts (to achieve minimum 3 star rating of GRIHA) for Administration Buildings at GAIL's Compressor Station complexes at Kailaras (MP) and Chainsa (Haryana) to comply with directive from the Ministry of New & Renewable Energy (MNRE).

- Innovative and aesthetically pleasing architectural design (including complete interior works) of Control Rooms (at MRPL and GSPC)

- Implementation of web based electronic Document Management System (eDMS) for document archiving, transfer and structured Knowledge Management(KM).

Project Services

Project Services Division of EIL continued to provide critical planning and costing services to various projects both at Head Office and various project sites. Using state-of-the-art tools and its data base, the Division caters to diverse project execution roles of the Company viz. EPCM, PMC, LSTK/ OBE.

The Division utilizes Primavera and various in-house software packages for project planning and monitoring activities. Apart from providing services for all the projects undertaken by EIL, the Division continued to provide project monitoring services to Ministry of Petroleum and Natural Gas for the 29th successive year.

The Division provides services such as preparation of cost estimates and economic analysis in diverse activities ranging from technology selection to preparation of feasibility reports and other project cost related support such as cost monitoring and control during execution of projects under conventional and LSTK mode of execution. The vast data base and capabilities help in providing valuable support for bid evaluation and award of major contracts as well as in providing effective cost control services. This Division also supports man-hour control and manpower planning activities of the Company.

Construction

Construction Division of EIL continued to provide Construction Management services for various clients at 47 domestic diverse project locations and 3 overseas locations. The Division offers services for total construction management including contract administration, construction quality surveillance, feedback analysis, HSE and warehouse management for various projects of EIL.

Current major commitments for the Division involve grassroot refinery at Bathinda for HMEL, MRPL Phase-III project involving four OBE-LSTK contracts and other PMC/ EPCM facilities, Petrochemical complexes at Dahej and Lepetkata, Strategic Storages at three locations and Pipeline Projects etc.

The highly skilled and totally motivated EIL construction team has been instrumental in establishing & monitoring adherence of construction Quality Management System comprising of quality plans, test plans, including record keeping, monitoring special processes for concreting, welding (involving latest NDT techniques, radiography, ultrasonic test etc.) during all phases of construction to ensure trouble free commissioning/operation of critical units.

Company has clocked 80 million Lost Time Accident Free (LTA- Free) man hours at PNCP, Panipat which is a unique achievement.

Process Design & Development

The Process Design & Development Division of EIL continued its efforts to secure business from new clients besides serving various existing clients, both in India and abroad. Prominent jobs undertaken by the Division during the year include the following:

- Configuration study for expansion of existing CPCL Refinery.

- Configuration study for expansion of existing BPCL-Kochi Refinery.

- Configuration study for expansion of HPCL Visakh Refinery.

- Pre-Feasibility report for low cost expansion of BORL Refinery.

- Configuration study for a grassroot refinery in Maharashtra for HPCL.

- Basic Engineering Package for grassroot Solvent Deoiling unit for NRL (Numaligarh Refinery Limited) based on Solvent Deoiling technology jointly developed by EIL & IIP.

- Basic Engineering Package for installation of Soaker internals for Visbreaker unit of HPCL Visakh based on the technology jointly developed by IIP & EIL.

- Basic Engineering Package for a grassroot IndaDept unit for IOCL Guwahati based on technology jointly developed by IOCL & EIL R&D.

- Feasibility Report for a grassroot Olefin complex for BPCL, Kochi.

- Licensor selection for the new licensed process units of Sohar Refinery of Oman Refineries & Petrochemicals Company (ORPC), Oman.

The Division also continues to provide requisite support in process design & development, pre-commissioning and start-up activities to the following major projects:

- GGSRL Refinery of HMEL

- New DHT Facilities at BRPL

- Bina Refinery Project of BORL

- Euro-IV Project of CPCL

- Phase-II Expansion Project of KRL

Research & Development (R&D)

R&D has contributed significantly in the consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related services. Accordingly, the R&D Division of EIL is pursuing developmental activities, both in-house and in-collaboration with other R&D institutes/organizations like IOCL-R&D, IIP, BPCL (R&D), etc.

- In line with Company's identification of Clean Coal Technology as a thrust area, activities have been initiated for the Coal to Liquid (CTL) technology development Project with BPCL (R&D) The project is partly funded by Centre for High Technology with a total project budget of Rs. 33 crores. Combiend expenditure (by EIL & BPCL) so far on the projects is Rs. 3.31 crore. Micro & bench scale reactors have been procured and installed at BPCL. Catalyst synthesis and procurement of other facilities are in progress.

- Another project for development of new amine based solvent (i.e. new formulation of amine blend) for CO2 removal from natural gas and development of simulation software for gas sweetening process has been undertaken in association with IIT, Kharagpur. It consists of experimental studies like VLE, kinetic data and physicochemical property generation will be carried out at IIT for development of new solvent. The data generated from experimentation will be used in development of simulation model.

- EIL along with IIT Delhi and IOCL (R&D) successfully completed the CHT sponsored research project for development of Trickle Bed Reactor (TBR) Technology. Knowledge base developed on various hydrodynamic studies has been utilized in the commercial design of 1.2 MMTPA Diesel Hydro-desulphurization (DHDS) Unit of IOCL Bongaigaon Refinery and 20000 TPA Food Grade Hexane Unit of HMEL Bathinda.

- In-house developed ejector design software (DESMIX) has been upgraded with graphic user interface (GUI) and efforts are on to upgrade it further for reduced energy consumption.

- EIL continued its successful commercialization of CFC technology developed along with IOCL-R&D. The LPG units at Bina and CPCL, Chennai designed on this technology have been successfully commissioned.

- Two trains of TEG based gas dehydration units with Glycol Contractors (V-5420/5460) and Glycol Still (V-5550/5650) at NQG Platform which were revamped with EIL developed proprietary structured packings (PARLPAK) under NQRC Reconstruction Project of ONGC were commissioned successfully.

- CATSOL Technology for acid gas treatment in Sulphur Recovery unit (sponsored by DSIR) is under commercialization for GSPC- SRU.

- Utilizing the knowledge base developed over the years, R& D team successfully completed the job of setting up laboratory facilities for Naphtha Cracker, MEG, HDPE, PP, LLDPE/ HDPE Swing & its Utility services of IOCL Petrochemical complex, Panipat. This is the first time R&D has provided its services for setting up laboratory facility for a commercial plant.

- EIL and IOCL jointly developed INDAdept Technology for Naphtha & diesel Desulfurization based on IOCL developed catalyst. IOCL is planning to setup a demonstration-cum- commercial unit for INDAdept G technology at Guwahati Refinery. A demonstration unit of 39000 MTA capacity is being set up at Guwahati Refinery to treat heavy gasoline cut of INDMAX (FCC) Naphtha. The sulphur content will be reduced from 1000 ppmw to 50 ppmw. It will not only permit blending of complete heavy gasoline to BS III MS pool but also provide an edge to Guwahati Refinery to meet future more stringent specifications of BS IV MS pool with respect to Sulphur. OIDB has in principle agreed to fund a major cost of the unit (70 %).

- EIL /IIP have been awarded the job of providing soaker internals for existing Visbreaker Unit of HPCL, Visakh. The soaker internal capability is joint effort of EIL & IIP & the subject job is going to be the first commercial application. The quantitative advantages in yield are being worked out currently.

- EIL was also awarded the job of preparing BDEP for the Solvent Dewaxing / Deoiling unit by NRL for production of Paraffin & Semi-Microcrystalline wax. The process design is first grassroot application of EIL/IIP Solvent Dewaxing / Deoiling technology.

- A project to carry out energy conservation study for NRL has been undertaken in association with CHT. A multidisciplinary core group for conducting energy audit / studies is being constituted. Efforts are being made to obtain membership of PCRA (Petroleum Conservation Research Association) and BEE (Bureau of Energy Efficiency).

- The Division has filed for two patents based on innovative work done during the year. Four patents have been granted for the applications filed earlier.

Plant Operations and Safety

The Plant Operations and Safety Division (POSD) of EIL continued to provide services in the following areas during the year:

- Process design for Offsite facilities of Refinery, Petrochemicals, Gas Processing Units, Oil Terminals, On- Shore Terminal, Topsides of strategic storages (underground caverns), cross country pipelines etc.

- Safety related studies like Hazards and Operability study (HAZOP), Hazard Analysis, Risk Analysis, Safety Integrity Level (SIL), Safety Audits, Safety Reviews and Emergency Planning.

- Pre-commissioning & Commissioning of process plants, utilities, offsites, terminals, pipelines etc including total responsibility for LSTK project and Operating manuals preparation.

The following major assignments were completed/were in progress during the year:

- Process design package for Topside facilities for Strategic Storage of Crude Oil at Padur for ISPRL.

- Process design package for Feed, intermediate & product storage and transfer facilities for OPaL, Dahej.

- Process design of Feed, Intermediate & Product storage and transfer facilities for Brahmaputra Cracker and Polymers Ltd. (BCPL).

- Process Design of off-sites facilities for GAIL Petrochemical II project under progress.

- Process Design of Dabhol-Bangalore Pipeline of GAIL, Hazira-Dahej Naphtha Pipeline of ONGC, Pipelines network for Qusahwira Field Development Project of ADCO -Abu Dhabi, SPM & Pipeline Project of MRPL.

The Division has successfully completed the following major commissioning assignments during the year:

- Commissioning of 6.0 MMTPA grassroot Bina Refinery of (BORL).

- Commissioning of various facilities under CEMP Phase-II Project of BPCL-Kochi Refinery.

- Commissioning of Revamped FCC of HPCL's Vizag Refinery and new FCCU at HPCL-Mumbai.

- Commissioning of NHT/ISOM Unit of CPCL's Euro-IV Project (executed on LSTK-OBE basis)

- Commissioning of LLDPE/HDPE Swing unit of IOCL-PNCP (EPCC-3) at Panipat (executed on LSTK), PRAEP-IOCL

The following pre-commissioning/commissioning activities were under progress during the year:

- 9.0 MMTPA grassroot Guru Govind Singh Refinery at Bathinda of HMEL using web based pre-commissioning commissioning activities Management System (PCAMS).

- DHDT Project of Bongaigaon Refinery of IOCL and DHDT Unit of CPCL Euro-IV Project.

The Division continued its efforts in securing new business and secured /undertaken following major studies during the year:

- Quantitative Risk Analysis (QRA) for IOCL's Gujarat Refinery, Integrated QRA for ONGC's C2/C3 plant and PPL's LNG terminal at Dahej, Integrated QRA for entire Panipat complex of IOCL (Refinery / Petrochemical/ terminals).

- Rapid Risk Analysis (RRA) for GAIL Pata PC-II, IOCL-Paradip CPP, MRPL Phase-III and other pipeline projects.

- HAZOP studies for GSPC's OGT project, ISPR's Cavern PPL Project, MRPL's SPM & PPL project, Open-art units of BCPL, Utilities & Offsite facilities for OPal & MRPL Phase-III Project.

- HSE studies including HAZID, HAZOPS, SIL, Fire & Safety Analysis etc for Qusahwira Field Development Project of ADCO -Abu Dhabi.

The Division has also undertaken development of in-house design capabilities for Vapor Recovery System for control of emissions to offer environment friendly technologies to our clients in refineries, petrochemicals and oil & gas sectors.

In-line with EIL's growth and diversification strategy, the division has taken initiative to offer Operation and Maintenance (O&M) services to our clients.

Heat and Mass Transfer

The Heat and Mass Transfer Division of EIL continued to provide thermal/hydraulic design for Heat Exchangers, Fired Heater Systems including Cast/Glass Air preheaters, Mass Transfer systems and detailed engineering for Fired Heaters, Sulphur Recovery Unit Equipment and Ejectors etc. for various on-going projects in India and overseas. The Division continued to provide specialist services to specific clients on need basis.

- Abu Dhabi Marine Operating Company (ADMA OPCO), Abu Dhabi placed an order for study of Heat Exchangers consultancy services relating to mitigation measures for corrosion.

- The Division acquired internationally recognized software (FRNC 5) for fired heater design and rating which will enhance capability of the Division in this area. Furnace capacity and efficiency improvement services were provided to CPCL for their existing furnaces in the CDU. The Division also generated several orders for Air Preheater design against international competition.

- The in-house capability and expertise of the Division in the areas of oil & gas production were utilized to provide process package for process platforms, well head platforms, flow assurance study and design of multi-phase pipeline from offshore to onshore and slug catcher, separators and gas dehydration unit for various clients such as GSPC ,ONGC and NPCC.

Specialist Materials and Maintenance Services (SMMS) The Company continued to provide specialist services to its clients in Petroleum, Petrochemical, Metallurgical and Infrastructure sectors during the year. Some of the important activities are:

- Health Check study for GAIL Pata, Refractory Lining Design Modification of CDU Heater of CPCL, Chennai, Specialist services for Repairing & Certification of Mounded Bullet in GAIL, Usar, Refractory Lining Design for CHTU Heaters of MRPL, Ph-III Project.

- Refractory Lining Revamp of Hydrogen Reformer of Chambal Fertilizer & Chemicals Ltd., Refractory Lining modification in Duct of Mangalore Chemical & Fertilizer Ltd., Review of Insulation in Horton Spheres, HOCL Kochi, Refractory Lining Inspection of Hot Oil Heater in Garware Polyester Ltd.

- Oil Heater in Garware Polyester Ltd., Technical Advisory Services to HPCL Vizag and to various refineries of IOCL; Material Selection for equipment, piping and pipelines for various on-going projects, GGSRP, MRPL, OPal, BCPL, and GSPC.

- SMMS Division has been advising and specifying on the Corrosion Monitoring Systems, Inhibitior Injection Systems, Corrosion Protection Coatings, Cathodic Protection Systems for On-shore and Off-shore pipelines and Chemical Cleaning Systems for new plants.

- SMMS has been actively involved in evaluating newer materials, fabrication and inspection techniques for the benefit of industries and have also contributed to the National and International standardization bodies like BIS and ISO.

Environment Engineering

As EIL forays into the global energy market, it has done so with increased sensitivity to global trends in environmental engineering. Increasing concern over Global warming propagated the world's new axiom "reduce your Carbon footprint". This has propelled the world to opt for stricter environment norms and have opened up new era of Environment related businesses. Taking initiative in this direction, the Environment Division of EIL took steps for the implementation of clean and green technologies in order to reduce carbon footprint of projects. The state-of-art technologies in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements, carbon management for control of volatile organic compounds, hazardous and solid waste management, recovery of oil from oily sludge and treatment of oily sludge using bioremediation process, opting energy efficient processes and treatment system, have given the Division a new vision. Environment Division continued to thrive in the field of Water & Waste Water Treatment Plants, Environmental Impact Assessment (EIA), Environment Health Safety Assessment, feasibility and other environmental studies, which proudly reflect the strength of the Division.

Some of the major achievements of Environment Division include the following:

- EIL has been successfully accredited by Quality Council of India to carry out Environment Impact studies in the fields of Refineries, Petrochemicals, Oil and Gas Pipelines, Non Ferrous Metallurgy, Township and area development project and power plants

- EIL successfully completed Effluent treatment plant study for IOCL, Haldia for the improvement in the existing effluent treatment plant. The treatment of oily sludge by biological methods and control of volatile organic compound have also been incorporated as a part of feasibility report.

- Selection of site for Coal to Liquid based plant based on environmental, social and economical parameters to achieve "Durable Development". Site selection also involved calculation of carbon footprint for all the sites and a step towards reducing carbon emission.

- EIL developed first Volatile Compound Control and treatment system which was successfully commissioned at HPCL- Mumbai.

- Provided consultancy services to KNPC, Kuwait for feasibility and feed preparation for revamping of effluent drainage and treatment plant at Sabhan and Ahmadi Oil Depot.

Information Technology Services (ITS)

Information Technology Services (ITS) division of EIL continued to provide IT enabled services. Keeping pace with latest IT trends, some of the activities under taken are:

- Upgradation of IT infrastructure: State of the art hardware and software in various functional areas have been acquired to meet the challenging business requirements. Latest operating systems like WINDOWS 2007, Windows 2008 have been rolled out successfully. To implement Business Continuity Plans, activities for setting up of EIL's Disaster Recovery Centre (DRC) have been initiated.

- Biometric attendance system has been implemented at HO,

Chennai, Vadodara and Gurgaon.

- All the construction sites have been provided connectivity to EIL Corporate network through USB modems for accessing various applications available at Head Office through Internet directly.

- Existing software packages are being converted to web based and many new web based applications have been developed to ensure that Regional offices (ROs)/ Regional procurement offices (RPOs)/ Construction sites/ Overseas offices are able to access centralized databases and various software , available through LAN servers at HO, through EIL's Corporate Network/IP-VPN and over Internet.

- To augment mobile phone based applications, SMS services have been implemented to communicate with internal and external users of EIL including remote users.

- A comprehensive Web based time sheet system has been deployed allowing all the employees across the globe to fill their timesheets through internet.

- A project E-mail Repository Management System is implemented with the objective of efficient management of e- mails related to projects with facilities to give unique e-mail numbering and search options.

- A Management Dashboard is released to provide online single window for view of summarized information at corporate and at job level to EIL management for better and faster decision making.

Procurement Services

The Procurement Services Division of EIL provides complete supply chain management services for various projects handled by EIL. Timely and efficient procurement of goods and services is a major factor determining success in project execution. The Division is at the fore-front of new technology adoption for improving the efficiency and effectiveness of procurement functions. Almost all procurement functions are IT enabled. The Division has implemented e-procurement as well as reverse auction for its contracting and purchasing, in addition to an integrated in-house ERP application linking all procurement functions across all geographical regions.

Public procurement has three vital components, i.e., transparency, equity and fairness. EIL is continuously focusing to ensure the same whilst simultaneously improving the process efficiency. The confidence reposed by EIL's Clients in our procurement systems is one of the factors enabling EIL in securing several OBE (Open Book Execution) projects from various Clients.

During the current year, orders for Rs. 2,200 crore of direct purchases/sub-contracts were placed on suppliers / contractors, from all over the world, for various OBE / LSTK Projects including infrastructure projects. Besides this, orders for Rs. 9,300 crore of goods and services were placed for various Clients' projects.

Procurement Division carried out in-process and pre-despatch inspections of complex equipment at Supplier's works as well at Project sites through its Regional Procurement Offices located all over the country and overseas offices at London, Milan and Shanghai. Major highlights included inspection of Stripper (1120MT), 11 no LPG Bullets (each measuring 7 mtr dia x 90 mtr long), CDU/VDU Columns for GGSRL Bathinda and 900 KM pipes (size 12"-36").

Enlarging data base for capable suppliers has always been the effort of the division. Suppliers located worldwide apply through online system available 24 X 7 at EIL website. Similarly data base of capable Contractors also is maintained. This helps company and its clients in sourcing quality products at competitive prices.

The recently set up procurement office in China contributed a lot to enhancement of the supplier database through study of the Chinese manufacturing industry catering to the oil and gas industry, enlistment of capable manufacturers and also offered inspection services to Clients across China.

Quality Management System

In EIL, Quality is focused on facilitating and achieving long term success of the Company by building and using Quality into our workplace, deliverables, services and strengthening the Systems.

The Quality Management System in respect of Company's services has been reassessed as per the requirement of ISO 9001:2008 by the certification agency, who conducted the surveillance audit during the period under review. The certification agency after audit declared that the Quality Management System of the Company continues to conform to international standards and recommended for continuation of the ISO certificate.

The important ingredients of our quality initiatives are effective and comprehensive internal audit process, planned customer perception surveys, analysis of feedbacks from stake holders and regular directions from internal Systems Committee consisting of senior officials which regularly monitor and analyze the systems/processes/data and recommends the improvements in processes, products and quality system to reduce costs, shorten cycle times and improve visibility and credibility without affecting the environment. QMS effectiveness and implementation has been further enhanced by computerization of certain processes through in-house developed software.

Quality Management System of EIL - UAE (Abu Dhabi) office was also independently audited and reassessed for certification by Certifying Agency for its conformance to the requirement of ISO- 9001:2008, during period under review. In addition, the Company participated as a prominent and active member in numerous committees for formulating products and quality system standards by M/s Bureau of Indian Standards.

EIL is constantly trying to position itself to face the challenges of economic volatility with Quality as a strategic tool.

Risk Management

The Company has well defined Risk Management policy and comprehensive framework to review the risk assessment and its management for mitigation. The process is based on pre- identified risks and the risk events or factors which require regular assessment and quick response. Based on the probability, impact of the risk and cost of controls, the risks are prioritized. The objective of risk management in the Company is to act as enabler in maintaining its knowledge edge, sustaining and expanding the business, being competitive and ensuring execution of projects within budgeted cost and time resulting in improved turnover and profitability.

Risks, their root causes, controls and action plans are prepared by process owners and updated regularly. These are approved by the Risk Management Committee (RMC) with Director (Finance) as chairman of RMC and all the Executive Directors as members with Head of Risk Group as member secretary. Risk audits are conducted regularly to test the controls and report the same to RMC.

The status of Enterprise Risk Management (ERM) process is presented to Audit Committee on bi-annual basis which is reviewed by the Board of Directors also. The reporting structure meets the compliance requirement.

To further strengthen the ERM process and to identify the gaps a review of ERM process was conducted by an external agency appointed by the Management during the period under review. The Management is committed to further strengthen its risk management capabilities in order to protect and enhance shareholder value by improving its business performance. Continuous efforts in creating new opportunities, improving competencies/knowledge in various areas leading to improved performance and leveraging existing knowledge resources, in line with the risk propensity of the Company, has enabled the Company to protect the shareholders interests .

Vigilance

During the year, vigilance activities such as investigation of complaints, inspection of files pertaining to in-house contract/purchases, scrutiny of Immovable Property Returns, review of Internal Audit Reports, etc. were carried out dedicatedly by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures and Government guidelines. For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/CVC during the intensive examination of works pertaining to EIL were examined and necessary actions were taken. System improvements were suggested to the Management and the necessary actions were undertaken for improvement.

Structured meetings between CVO, C&MD and Directors were held and the MOM were forwarded to CVC and MoP&NG. Vigilance activities were also presented to the Board.

Various vigilance workshops, interactive sessions, seminars, debates etc. were also organized in HO, Regional, Branch, Procurement and site offices of EIL during the year for spreading vigilance awareness amongst the employees of EIL.

Some important features of Vigilance activities are given below:

- Leveraging Technology

EIL has 'First in, First out' methodology in Bill Watch System. E-payment/e-receipt and e-tendering progress are also monitored at regular intervals.

- Complaint Handling Policy (CHP)

As per CVC Guidelines, EIL has formulated Complaint Handling Policy to resolve complaints/grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is now available on the Company's website.

- Policy regarding recruitment of Ex-employees

EIL has policy for recruitment of ex-employees. Vigilance has ensured that employees who have been penalized during service or on the scanner of vigilance shall not be considered for re-employment.

- Job Rotation

Job rotation of sensitive posts is being done at the behest of Vigilance.

- Integrity Pact

Implementation of 'Integrity Pact' has been approved by EIL Directors and it is in advanced stage of implementation.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth. The Company optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having adequate number of professionals. During the year, several internal audit assignments with focus on checks and controls on system and procedures, monitoring compliances and continuous upgrade of controls have been carried out and the reports have been submitted to the Management and the Audit Committee of the Board.

Human Resource & Industrial Relations

People are our prime assets and EIL continued its emphasis towards welfare, multi-skilling, upgradation of skills and optimal deployment. Skilled manpower in oil & gas sector, especially in core areas like process design & development, projects, engineering etc.is in great demand globally. To meet the workload of the Company, extensive recruitment has been undertaken at the junior and middle-management level as well as the 'Management Trainees' Level.

The Company has a qualified and professional employee base with over 3,417 employees, including 3,062 technically and professionally qualified employees as of March 31, 2011 this includes 372 women employees representing 10.9% of total strength. Approximately 2.0% of these full-time employees were located outside India. Many of our engineers are familiar with international work environment and cultures. Our HR Policies are aimed towards recruiting talented employees and facilitating their integration into the Company, encouraging the development of their skills and enhancing their geographic and professional mobility. We strive to maintain good relationships with our employees, which has enabled us to avoid any industrial unrest and maintain a relatively low attrition rate. We have developed a structured incentive programme, including performance-linked variable pay structure for certain level of employees. We are dedicated to the development of the expertise and know-how for our employees and have commenced a focused leadership development programme.

EIL continued its emphasis towards welfare, multi-skilling, up gradation of skills/knowledge and optimal deployment of human resources.

During the year 2010-11, continued focus was maintained to organise Competency based learning interventions for our knowledge workers. A total of 168 training programmes were conducted for developing technical, cross functional, managerial-behavioural competencies. Our partnership with management institutes to provide structured inputs through management development programmes resulted in organization of four Management Development Programmes in collaboration with International Management Institute, New Delhi for senior executives. This also included a programme for senior executives of Construction Sites. Moreover, similar management development programme was also organized for executives in mid level in collaboration with Lal Bahadur Shastri Institute of Management, New Delhi.

Customized competency based programmes like Prarambh, Connect 360, Breaking the Mould, Plan Better: Deliver Best, Express to engage, Thinking out of the Box, Leadership in Execution, Creating Winning Teams etc. were also organized keeping in view the training needs as well as emerging business needs.

Two batches of 'Aarohan' the Leadership Development programme - one for 'Business Leaders' and the other for 'Functional Leaders' successfully completed their 8 months development journey. The programme provided participants an opportunity to not only devise their self-learnin

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Mar 31, 2010

The Directors have great pleasure in presenting the 45th Annual Report together with audited accounts of the Company for the year ended March 31, 2010 along with Audited Statement of Accounts, the Auditors Report and Review of the Accounts by the Comptroller and Auditor General of India.

2009-10 in Retrospect

EIL continued its good performance during the year 2009-10. The salient features are as follows:

- Turnover : Rs. 199380 lakhs

- Profit Before Tax (PBT) : Rs. 66048 lakhs

- Profit After Tax (PAT) : Rs. 43557 lakhs

Turnover from Companys core consultancy business increased y-o-y by 28% to ` 105533 lakhs. LSTK business contributed ` 93847 lakhs to the turnover recording a growth of 33%.

Dividend

The Company has paid two interim dividends of `106/- per share (on the face value of ` 10/- each) during the year. This includes payment of special interim dividend of `100/- per share (on the face value of ` 10/- each) as per directions received from the Department of Disinvestment, Ministry of Finance, Government of India vide their letter No. 4/8/2009/DD-II dated January 25, 2010. The Special Interim Dividend of ` 100/- per share (on the face value of ` 10/- each) was paid out of accumulated reserves as per approval received from the Government of India, Ministry of Corporate Affairs vide their letter No. 10/1/2010-CL/VI dated March 5, 2010 in terms of provisions of Section 205A(3) of the Companies Act, 1956.

Considering the total interim dividend of ` 106/- (on the face value of Rs. 10 /- each) per share paid during the year, no final dividend was recommended.

Capital Structure

The Authorized Share Capital of the Company has been increased from Rs.. 100 crores to Rs. 300 crores as approved by the Members of the Company in its 14th Extra- ordinary General Meeting held on April 22, 2010. The subscribed and paid-up capital of the Company as at

March 31, 2010 was Rs. 5615.62 lakhs comprising of 5,61,56,100 equity shares of Rs. 10/- each. The shareholders of the Company in its Extra-ordinary General Meeting held on April 22, 2010 approved the split of existing equity share of face value of Rs. 10/- each into two equity shares of face value of Rs. 5/- each and issue of bonus equity shares in the ratio of 2:1 by capitalization of its free reserves as recommended by the Board of Directors of the Company.

After the split and issue of bonus shares, the share capital of the Company stands at Rs.16846.84 lakhs comprising of 33,69,36,600 equity shares of Rs. 5/- each.

Disinvestment of 10% of Paid-up Capital of Engineers India Limited by Government of India through “Further Public Offering (FPO).

Ministry of Finance, Department of Disinvestment conveyed vide its letter dated 25.01.2010 that the Government has approved disinvestment of 10% paid- up Equity capital of the Company aggregating to 3,36,93,660 shares of face value of Rs. 5/- each out of Government shareholding of 90.401% in the domestic market through Further Public Offering (FPO). The Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) were duly filed with the Regulatory Authorities on 15th June, 2010 and 9th July, 2010 respectively and the necessary approvals were obtained. The offer opened on 27th July, 2010 and closed on 30th July, 2010 (except for QIBs, for whom the offer closed on 29th July, 2010). The issue was offered at a offer price of Rs. 290/- per equity share and a discount of 5% to the offer price was offered to the Employees and Retail Investors. The prospectus was filed with ROC on 5th August, 2010. The allotment of shares was made on 10th August, 2010. The trading in the equity shares allotted pursuant to this offer commenced on 12th August, 2010 on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

Management Discussions & Analysis

A separate report on Management Discussion and Analysis is annexed to this Report.

Sector-wise details of operations of the Company are given below:

Petroleum Refining

Petroleum Refining sector continued to play a dominant role in Companys business. During the year, EIL achieved good progress on following major jobs, some of which were commissioned/likely to be commissioned in the next financial year. These jobs include:

- For the implementation of Euro-III & Euro-IV fuel compliance in North-East Assam, EIL has been engaged for Upgradation of Refinery of IOCL at Bongaigaon and by NRL for their Numaligarh Refinery for the following units:

a) Diesel Hydrotreater Project (DHDT) of Bongaigaon Refinery of IOCL is under advance stage of completion and expected to go on stream by third quarter of 2010.

b) Diesel Quality Upgradation Project of Numaligarh Refinery of NRL has come on stream in June, 2010.

- Euro-IV Project of CPCL which EIL is executing on OBE (Open Book Estimate) convertible to LSTK basis - the first of its kind in the hydrocarbon sector in India is in advanced stage of mechanical completion. Pre-commissioning & commissioning activities are in full swing.

- 6 MMTPA grassroot Bina Refinery of Bharat Oman Refineries Limited (BORL) consisting of Crude and Vacuum Unit, Full conversion Hydro-cracker Unit, Diesel Hydro Treater, CCR, Isomer Unit and Sulphur Recovery Unit , expected to meet Euro-III & Euro-IV specifications, is under mechanical completion. The Crude Unit of the Refinery has been commissioned in June 2010 and the products were dispatched to market. The balance units of the Refinery are scheduled to be commissioned by third quarter of 2010 for full commercial production.

- All the units of Capacity Expansion and Modernization project of BPCL at Kochi are under advance stages of mechanical completion and are likely to be commissioned by third quarter of this year. The revamp of crude unit is already commissioned and is under commercial production.

- 9 MMTPA grassroot Guru Gobind Singh Refinery Project of HPCL Mittal Energy Ltd. at Bathinda is progressing as per schedule. Incentive milestones for periods 1-5 have been achieved ahead of schedule. All the equipment have been ordered. The cumulative physical progress achieved at the end of the financial year 2010 is ahead of the target schedule. The project is on track to meet the contractual completion schedule of 42 months.

Mangalore Refinery of MRPL involves capacity expansion from 9.6 MMTPA to 15 MMTPA with product quality improvement to Euro-IV specifications. The entire Project is being implemented on hybrid mode of execution i.e. LSTK/ OBE/conventional system. Major secondary processing facilities are being executed on LSTK/OBE route, while Utilities/Offsites are being executed in EPCM route. Out of the various units, EIL was awarded PFCC and SRU Block under OBE mode, besides PMC for other units being executed on LSTK mode and EPCM mode for Utilities/Offsites. The Project activities are in full swing with LSTK/OBE contractors for all the Units having fully mobilized. Construction works are in full swing for the Units and Utilities/Offsites. The Project is likely to achieve mechanical completion by third quarter of 2010-11.

- CPCL revamp project i.e. Crude Unit and Crude Reforming Units are under completion.

A number of new project assignments were secured during the year 2009-10 and work has commenced on all these projects. These include:

- Polypropylene Unit (PPU) under MRPL Phase-III Refinery Project at Mangalore on OBE convertible to LSTK basis.

- PMC services for implementation of Captive Power Plant for Paradip Refinery of IOCL.

- Basic Design Engineering Package (BDEP) and EPC for Wet Air Oxidation (WAO) Unit at Mangalore of MRPL.

- CDU/VDU-II Revamp Project at CPCL, Chennai on EPCM basis.

Petrochemicals

Petrochemical sector is another sector which, like earlier years, has contributed significantly to Companys business. During the year, EIL continued to make good progress on following major jobs:

- Detailed Feasibility Report (DFR) for GAIL Petrochemical Complex-II at Pata for enhancing the Polymer capacity to 900 KTA (expandable upto 1 MMTPA) was prepared and has been well accepted by GAIL.

- Panipat Naphtha Cracker Project, a prestigious grassroot petrochemical project of IOCL, for which EIL was awarded PMC services contract against international competitive bidding. The project consists of 800KTA of Naphtha Cracker (expandable upto 1000KTA) is being executed on LSTK(EPCC) mode. Naphtha Cracker,

Polypropylene (PP) & Mono Ethylene Glycol (MEG) Units have been successfully commissioned. Utilities & Offsites facilities are in operation.

- Assam Cracker Project of Brahmaputra Cracker & Polymer Ltd (BCPL), a grassroot petrochemical project is being executed on conventional mode by EIL at Lepetkata, near Dibrugarh. This project continued to make steady progress during the year. Once completed, this unit will produce HDPE, LLDPE and P P. The capacity output shall be 220 KTPA of Ethylene and 60 KTPA of Propylene. The availability of these products shall boost development of plastic industry in north-east. The plant is expected to go on stream during third quarter of 2012.

- Dahej Petrochemical Complex of ONGC Petro- additions Ltd.(OPaL) is being executed on EPCC mode and consists of 1100 KTA capacity Dual Feed Ethylene Cracker and will produce HDPE, LLDPE and P P. This is one of the largest single value PMC services contracts in Petrochemical field awarded to EIL against international competition. The project is making steady progress and is scheduled to go on stream by end 2012.

Pipelines

EIL Pipeline Division continue to provide extensive services for various pipeline projects at home and abroad.

935 kms of Vadinar-Bina Pipeline for Crude Oil transportation of BORL was successfully completed and commissioned during this year.

Presently, EIL is executing following Pipeline Projects:

- 48"x498 kms Vijaipur-Dadri Natural Gas Pipeline Project of GAIL.

- 18"x257 kms of Bina-Kota Pipeline for Petroleum Product transportation for BPCL.

- 30"/28"x1012 kms Mundra-Bathinda Crude Oil Pipeline of HPCL - Mittal Pipelines Ltd. (HMPL) for crude oil transportation.

- Compressor Stations for GAIL at Vijaipur and Jhabua.

- Two new Compressor Stations at Chainsa and Kailaras for Vijaipur-Dadri Gas Pipeline for GAIL.

- 18"/16"x290 kms Natural Gas Pipeline from Vijaipur to Kota & Spurlines to Bhilwara & Chittorgarh for GAIL.

- Connectivity Pipelines (Meerut, Agra, Ferozabad,

- 30"/24"x300 kms NGL Pipeline of GASCO, Abu Dhabi

All these projects are making steady progress and are expected to be completed on or ahead of schedule.

During the year, EIL was awarded major project of 36"/30"/ 24"/18" x 995 kms Dabhol-Bangalore Natural Gas Pipeline of GAIL and 10" LPG Onshore/Offshore Pipeline from BPCL/ HPCL Mahul Refineries to Uran for BPCL. As an improvement plan, EIL continued to employ cost effective and effective designs, some of which are:

- Use of X-80 Grade Carbon Steel Pipe in Dabhol- Bangalore Pipeline Project

- Using Dual Layer Fusion Bonded Epoxy coating

As a diversification strategy, EIL has decided to enter into City Gas Distribution business through joint venture or as a sole owner. EIL has already been empanelled with Petroleum & Natural Gas Regulatory Board (PNGRB) as Verification/Safety Auditing agency for City Gas Distribution networks all over India.

Offshore Oil & Gas

During the year, Gujarat State Petroleum Corporation (GSPC) awarded PMC services contract to EIL for following projects for their offshore Block:

- Wellhead Platform

- Process-cum-Living Quarter Platform

EIL has received work orders from ONGC, for providing consultancy services for Cluster-7, BHE and MNW-N-15 Pipeline of MNHRD Phase-II Project and WIN Revamp Project.

EIL has also received a work order from MRPL for executing SPM and Associated facilities including Subsea Pipeline Booster Station and Onshore Pipeline on OBE basis. The project is scheduled to be completed in 21 months. After installation and commissioning of the facilities, refinery will receive crude from the various destinations by VLCC upto 300,000 DWT capacity with lot of cost saving to the refinery.

Onshore Oil & Gas

EIL achieved another milestone by successfully commissioning of Gas Gathering Station-I as part of Rudra Sagar Modernization project of ONGC under Assam Asset.

GSPC awarded EIL the project for onshore gas processing faclities for Deen Dayal Field Development Project on OBE basis. The facilities /units envisaged are

Sweetening unit, Gas Dehydration, Gas metering & transportation, Dew Point depression unit, Condensate Stabilization, SRU and associated Utilities and Offsite facilities.

Strategic Storages

During the year 2009-10, the Sub-surface Projects Division (SSPD), EIL continued the execution of the projects pertaining to Phase-I of the crude oil strategic storage programme of the Government of India, in underground unlined rock caverns at Visakhapatnam, Mangalore and Padur.

EIL has also been assigned the task of preparing a pre- feasibility report for Phase-II of the programme, involving storage of crude oil and petroleum products. In order to attain design capability in such area, foreign consultants were engaged by EIL for the Visakhapatnam and Mangalore projects. Simultaneously, EIL is imbibing the technology in the field of design of underground caverns with the aim of attaining self-sufficiency for the Padur project.

Metallurgy

The Metallurgy Division continued to meet clients requirements during the year. Following major projects were implemented/ are being implemented:

- The Second Phase Expansion of NALCO Aluminium Smelter (from 345,000 TPA to 460,000 TPA) at Angul, Orissa is nearing completion. All the 240 pots have been commissioned and put in commercial production.

- The Second Phase Expansion of Bauxite Mines of NALCO at Panchpatmal (from 4.8 MMTPA to 6.3 MMTPA), Alumina Refinery at Damanjodi, Orissa (from 1.57 MMTPA to 2.1 MMTPA) are under execution and are likely to be completed by first quarter of next year.

- Fourth Stream Upgradation Project (from 0.55 MMTPA to 0.7 MMTPA) of Alumina Refinery at Damanjodi, NALCO is under mechanical completion.

- Engineering services are being provided to Mahan Aluminium Smelter (capacity 360,000 TPA) of Hindalco Industries Ltd.(HIL) at Singrauli, M.P. The project is being executed on schedule.

- Engineering services for project relating to Aditya Aluminium Smelter (capacity 360,000 TPA) of HIL in Lapanga, Orissa are being provided.

- Engineering work for Rectiformer Replacement for Reduction Lines 1&2 of Aluminium Bahrain (ALBA) has been completed.

Infrastructure

The Infrastructure Division is providing Project Management services, Third Party Inspection services and Quality Assurance services, as "Independent Engineers" and also working on Deposit Concept for various clients.

Substantial progress was made during the year on extension of IIT Campus, Roorkee and OIDB Bhawan for Oil India Development Board. Development of Rugby Stadium for Commonwealth Games 2010 at Delhi University and TPI services for PWD flyovers and IA services for DIAL have been successfully completed. IE (Independent Engineer) services for MIAL (Mumbai Airport upgradation) and LE (Lenders Engineer) services for Raipur-Aurung Expressway and Lucknow-Sitapur Expressway are under progress.

The prestigious work for development of Assam Centre for Rajiv Gandhi Institute of Petroleum Technology (RGIPT) at Sibsagar was secured during the year. Work commenced on two Jawaharlal Nehru National Urban Renewal Mission (JNNURM) funded prestigious projects of redevelopment and heritage restoration works of Connaught Place, New Delhi and Interceptor Sewage Project for Delhi Jal Board (DJB) also on Deposit Concept. Work on the prestigious assignment for development of Campus for Rajiv Gandhi Institute of Petroleum Technology (RGIPT) at Rae Bareilly commenced during the year.

The Company is making its best efforts to secure jobs in the areas of urban development, Intelligent & Green buildings, Highways & Airports, WRM (Water Resource Management), Waste & Energy.

Turnkey Projects

EIL is executing turnkey projects either on LSTK mode or on the recently introduced new concept of "Open Book Estimate". Following jobs continued to make satisfactory progress during the year:

- EIL commissioned HDPE/LLDPE Swing Unit of IOCL at their Panipat Naphtha Complex on LSTK basis.

- EURO-IV Project of CPCL which EIL is executing on OBE convertible to LSTK basis is in advanced stage of mechanical completion. Pre-commissioning & commissioning activities are in full swing.

- PFCC & SRU Block of MRPL Refinery Expansion Project Phase-III which EIL is executing on OBE convertible to LSTK basis, works are in progress.

During the year, MRPL has also awarded EIL execution of Polypropylene Unit (PPU) under Phase-

III on the same concept. Award of this project further marks the acceptance of EIL capabilities in undertaking major projects on OBE-LSTK concept.

- GSPC has awarded EIL onshore gas processing facilities for Deen Dayal Field Development Project on OBE basis.

Overseas Assignments

EIL continued to maintain its international footprints. During the year, apart from continuing with the projects already awarded, EIL was able to get new assignments too. Major services were provided to customers in Algeria and Abu Dhabi. Assignments completed during the year include:

- ABBR Modification Project for GASCO, Abu Dhabi.

- Condensate Top Refinery Project of SONATRACH, Algeria.

Work progressed well on the following jobs during the year:

- Olefins Conversion Unit (OCU) and Polypropylene Unit (PPU) of Abu Dhabi Polymer Company Ltd. (Borouge) of Ruwais, Abu Dhabi.

- Rehabilitation and Adaptation Project of Skikda Refinery and Algiers Refinery of SONATRACH, Algeria.

- New Services Contract (till Jan 2013) for Development of Engineering Capabilities for SONATRACH, Algeria.

New assignments secured during the year include:

- Value Maximization study for Sohar Refinery of Oman Oil Company, Muscat.

- Replacement of GUP Hydrophor Fire Water System Pumps at Ruwais Refinery of Abu Dhabi Oil Co., Abu Dhabi.

- NPCC, Abu Dhabi has awarded design engineering activities to EIL for Qusahwira Field Development 1.8 MM BOPD Project of ADCO. The Project involves a new Central Design Station (CDS) and New Remote Designing Station (RDS) at Qusahwira along with construction of flow lines from wells to RDS/CDS transfer and gas injection line. EILs scope includes 3D modeling and process simulations. The Project is scheduled to be completed by end 2012.

Engineering

Engineering division continued to provide engineering services to various Projects being executed within and outside India. Some of the major activities engineered during the year include:

- Design, engineering and procurement of Tall Towers of typically 1100MT weight,7000 mm dia and 80 metres height was carried out for MRPL. These Towers shall be transported through ship to Mangalore port.

- Procurement engineering for 18MW main Air Blower & Wet Gas Compressor for PFCC unit of MRPL Project.

- Design, engineering and procurement of RR package with vessels-dimension of over 16 M transported in multiple pieces through ship from Hazira to MRPL site.

- Engineering of 109" dia process piping for PFCC unit of GGSRL (HMEL) Project.

- Procurement engineering of 48"dia, 500 kms onshore Pipeline from Vijaypur to Dadri for GAIL.

- Procurement engineering of 30"dia onshore Pipeline through Thar Sand desert for Mundra to Bathinda Pipeline of GGSRL (HMPL).

- Procurement engineering of Integrated Offshore Crude Handling facilities for IOCL at Paradip with 2 nos. new SPMs and 3 nos. 48" dia Pipelines having integration of all 3 SPMs and 4 Pipelines designed to handle 37 MMT Oil.

- Procurement engineering of C3 Rectifier and C3 Stripper weighing 1200 MT for MRPL and GGSRL(HMEL) Projects.

- Procurement engineering of VAC column of 12 meter dia., 60 m height, weighing 810 MT for GGSRL (HMEL) Project.

- Procurement engineering of Crude column of 10 meter dia, 77m height, weighing 642 MT for GGSRL (HMEL) Project.

- Procurement engineering of Propylene reactor of 3.6 meter dia., 100 m height, weighing 490 MT.

- Procurement engineering for one of the worlds largest PP Extruder for PP plant of MRPL having 17 MW variable frequency drive motor.

- Procurement engineering for Tertiary Separators in PFCC for MRPL and GGSRL which are being installed in India for the first time, to meet latest Pollution control norms.

- Detailed Engineering for Aluminum Smelter for Hindalco Industreis Ltd. (HIL) based on 360 KA AP technology for the first time in India.

The Division assigned utmost importance to technical development by:

- Training of newly inducted personnel at entry and lower middle levels.

- Developing capabilities in new frontiers of technology.

- Developing/acquiring latest software tools, etc.

- Knowledge Management (KM) - KM would help to benchmark quality for future works and provide a yardstick for work improvement. Systematic and quick retrieval of available past data in electronic form would facilitate faster design deliverables for future assignments.

Project Services

Project Services Division continued to provide critical support for project costing and planning, right from project conception to completion and close out. It caters to the diverse project execution roles of the Company viz. EPCM, PMC, LSTK and OBE by developing procedures that are continuously updated for optimum utilization. The Division utilizes Primavera and various in-house software packages for project planning and monitoring activities. Apart from providing services for all the projects undertaken by EIL, the Division also provides third party monitoring services and has continued to provide project monitoring services to Ministry of Petroleum and Natural Gas for the 28th successive year.

Construction

Construction Division continued to provide Construction Management Services for various clients at 38 domestic diverse project locations and 7 overseas locations. The Division offers services for total Construction Management including Contract administration, Construction Quality surveillance, feedback analysis, HSE and Warehouse Management for projects in Petrochemicals, Refineries, Cross-country pipelines, Gas Processing Complexes, LNG Terminals, Metallurgy and Offshore industry. Resource pool of Construction Division includes team of qualified and experienced engineers who are deployed to various sites depending upon the requirement. Company have clocked more than 70 million manhours without any loss time accident, which is a credit in itself.

Process Design & Development

The Process Design & Development Division continued its efforts to secure business from new clients besides serving various existing clients, both in India and abroad. Prominent jobs undertaken by the Division during the year include the following:

- Value maximization study for existing Sohar Refinery of Oman Refineries & Petrochemicals Company (ORPC), Oman.

- Preparation of a Detailed feasibility study for grassroot refinery in Rajasthan for the Government of Rajasthan.

- Configuration study for a grassroot refinery in Maharashtra for HPCL.

- Basic Engineering Package for onshore facilities for Deen Dayal Field Development project of GSPC.

- Basic Engineering Package for additional Gas Processing facilities at Hazira & Uran for ONGC.

- Basic Engineering Package for a grassroot Sulphur Recovery Unit of MRPL.

- Detailed Feasibility Report (DFR) for expansion of Petrochemical Complex at Pata of GAIL.

- Basic Engineering Package for grassroot Naphtha Splitter Unit at Numaligarh.

The Division also continued to provide requisite support in Process Design & Development and pre- commissioning & start-up activities to the following major projects:

- Panipat Naphtha Cracker project of IOCL

- Bina Refinery project of BORL

- Euro-IV project of CPCL

- Phase-II Expansion of KRL

With a view to enhancing the technology portfolio and bringing in latest technology options for the benefit of the end users, EIL signed a Memorandum of Understanding with M/s Worley Parsons, USA for joint promotion of following technologies developed and owned by Worley Parsons :

- Sulphur Recovery Unit Tail Gas Treating and Liquid Sulphur Degassing

- Gas Processing technologies

Discussions were initiated with M/s Marsulex Environmental Technologies, USA for joint promotion of Ammonia based Wet Flue Gas Desulphurization (AS- WFGD) technology for flue gas cleaning. The technology application includes refineries, petrochemicals, fertilizers as well as captive power plant.

Research & Development

The Research & Development Division of EIL has contributed significantly in the consolidation of existing capabilities, development of new technologies & hardware and enhancement of the portfolio for special technology related services. The Division continued to pursue developmental activities, both in-house and in collaboration with other R&D institutes/organizations like IOCL-R&D, IIP, BPCL (R&D), etc. to further the objective of enhancing the Companys technology portfolio.

During the year, the Division has taken major strides towards commercialization of the following technologies:

- Oxygen enriched Claus Process for enhancing capacity of an existing Sulphur Recovery Unit had been demonstrated and commercialized at CPCL, Chennai and NRL. Further commercialization activities have been initiated for IOCL Mathura, IOCL Panipat and KRL Kochi.

- Preparation of Basic Engineering Design Package for the Sulphur Recovery unit of Gujarat State Petroleum Corporation for their Deen Dayal Field Development Project, based on EIL-GNFC-NRDC technology (CATSOL). This unit is to utilize the CO2 rich acid gas obtained from Natural Gas Sweetening Unit (also designed by EIL)

- Continuing successful commercialization of CFC technology developed along with IOCL-R&D. The Unit at HPCL, Visakh designed on this technology has been successfully commissioned.

- EILs developed proprietary Structured Packing was selected for commercial application in the Sulphur Recovery unit of BRPL DHDT Project and in Hydrogen purification section of Catalytic Reformer Unit of BRPL refinery.

- Commercialization efforts for Naphtha Diesel Desulfurization (INDADEPT) technology based on IOCL developed catalyst are being done for implementation of the technology in IOCL- Guwahati.

- Commercialization efforts for SO2 recycle process for improvement in Sulphur recovery efficiency of SRU have been initiated.

- EIL along with BPCL R&D has entered into an MOU for the Coal Gasification / Gas clean up / CTL pilot plant project to be funded by CHT. Setting up of the experimental facilities is in progress. In a linked activity, the Division is also coordinating due diligence activities for acquiring IPR for FT Synthesis.

Development of Amine based CO2 separation process for Sweetening of Natural Gas with high CO2 concentration has been initiated. New formulation for Amine Solvent will be developed from lab scale and pilot scale studies. This is being proposed in association with IIT.

In-house developed data reconciliation and gross error detection software package (RAGE) has been upgraded

The Division has filed for one patent based on innovative work for the Oxygen enriched Claus process and presented several papers in national and international conferences / seminars.

Plant Operations and Safety

The Plant Operations and Safety Division (POSD) continued to provide services in the following areas:

- Process design for Offsite facilities of Refinery, Petrochemicals, Gas Processing Units, Oil Terminals, On-Shore Terminal etc.

- Safety related studies like Hazards and Operability study, Hazard Analysis, Risk Analysis, Safety Audit and Emergency Planning.

- Pre-commissioning & Commissioning network, schematics & Operating manuals and assistance during pre-commissioning/commissioning of plants.

- Commissioning of plants with total responsibility for LSTK project executed by EIL.

The following major assignments were completed/are in progress during the year:

- Process Design Package for Topside facilities for Strategic Storage of Crude Oil at Mangalore for ISPRL.

- Process Design of Feed, intermediate & product storage and transfer facilities for Brahmaputra Cracker and Polymers Ltd. (BCPL).

- Intermediate storage and transfer facility for Mangalore Refinery Project of MRPL, Mangalore

- Process Design of Feed, intermediate & product storage and transfer facilities for OPal, ONGC, Dahej.

- Hazard & Operability study of different units at Guru Gobind Singh Refinery (HMEL), Bathinda

- Hazard & Operability study of different units at Mangalore Refinery of MRPL, Mangalore

- Preliminary Feasibility Report for Strategic Storage of Hydrocarbon Phase-II for ISPRL.

Commissioning activities for the following Projects were completed/are in progress during the year:

- GFEC Project of HPCL, Mumbai

- VRCF Project of HPCL, Visakh

- PNCP Project of IOCL, Panipat

- LLDPE/HDPE of IOCL, Panipat

- BORL, Bina.

- NHT/ISOM and DHT unit at CPCL Refinery,

- MS Block of BPCL, Kochi Refinery

- Guru Gobind Singh Refinery, HMEL Bathinda.

Heat and Mass Transfer

The Heat & Mass Transfer Division continued to provide thermal/hydraulic design for Heat Exchangers, Fired Heater Systems including Cast/Glass Air preheaters, Mass Transfer systems and detailed engineering for Fired Heaters, Sulphur recovery Unit Equipment and Ejectors etc. for various on-going projects including Guru Gobind Singh Refinery, MRPL Expansion and Upgradation Project, Brahmaputra Cracker & Polymer Ltd. The Division continued to provide specialist services to specific clients on need basis.

Abu Dhabi Oil Refining Company (Takreer), Abu Dhabi placed an order for consultancy services relating to Heater Design review due to tube replacement for metallurgy up-gradation of HGO heater for Ruwais Refinery, on crash schedule basis.

Furnace trouble shooting services were provided to BRPL for their furnaces in the Catalytic reforming unit and IFFCO-Phulpur for start-up heater for the problems pertaining to frequent tube failures, flame impingement, tube pitting etc.

The Division provided specialist services to Emirates National Oil Co (ENOC) to investigate the causes of an explosion in a heater in the Refinery. The report was well received by the client.

Thermal Design of Methanol Vaporizers for BCPL, Lakwa and Lepetkata were developed in-house. These are used in Cracker and C2/C3 plants for cold liquid blow down and cold flare vaporizer superheating. This design is an alternative to very expensive proprietary design available in the industry.

The in-house capability of the Division in the areas of Oil & Gas production was utilized to provide process package for offshore process platform (with top side pressure of 129 kg/sq.cm.g and 152 deg C), multi- phase pipe line from offshore to onshore and slug catcher for GSPC.

Specialist Materials and Maintenance Services (SMMS)

The Division continued to provide specialist services to clients in Petroleum, Petrochemical, Metallurgical, Pipeline, and Infrastructure sectors during the year. Some of the important activities are:

- Design modification of Refractory Lining of Secondary Reformer of Mangalore Chemicals & Fertilizers Ltd., Mangalore

- Design modification in Transition Duct roof Lining of Hydrogen reformer in HPCL, Vizag.

- Health check and Remaining Life Assessment of flare lines and associated equipment, study and recommendation for rehabilitation of damaged load bearing structure of a Heater in Lube Refinery of HPCL, Mumbai

- Organizing Advance Inspection Technologies and Asset Management for Oil, Gas and Energy Sector in association with TechCorr, USA, for providing latest Asset Integrity Management Technology tools and procedures to Indian operating plants.

- Material Selection for equipment, piping and pipelines for various on-going projects viz., GGSRL, MRPL, OPaL, BCPL and GSPC.

- Successful development of indigenous capabilities for Automated Ultrasonic Testing systems for plant piping and for high pressure vessels, as a substitute for the time consuming radiography.

- Finalization of Dual Layer Fusion Bonded Epoxy Coating specification for Pipelines and the MOC and Corrosion protection schemes for underground Strategic Storage facilities.

SMMS has also been providing specialist advice on specifications for Corrosion Monitoring Systems, Inhibitor Injection Systems, Corrosion Protection Coatings, Cathodic Protection Systems for On-shore and Off-shore pipelines and Chemical Cleaning Systems for new plants. SMMS has been actively involved in evaluating newer materials, fabrication and inspection techniques for the benefit of chemical process industries and have also contributed to the National and International Standardization bodies like BIS and ISO.

Environment Engineering

Global Environmental issues coupled with newer and stricter emission norms have opened up new areas of exploration for Environment related activities for EIL. Taking initiative in this direction, the Environment Division took steps for the implementation of clean and green technologies in order to reduce carbon footprint of the projects. The technological advancements in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements, control of volatile organic compounds, hazardous and solid waste management, contained biological treatment of oily sludge through energy efficient processes, have given a new vision to the Division.

Some of the major achievements of Environment Division during the year include:

- Commercialization of Wet Air Oxidation based on Spent Caustic Treatment technology continued to be thrust area of the division. The technology is under implementation on LSTK basis at MRPL, Mangalore for their Phase-III Expansion Project.

- Implementation of new technologies comprising of Sequential Batch Reactor, Membrane Bio-Reactor, Reverse Osmosis for treated effluent reuse and recycle have been carried in MRPL PH-III expansion. The treatment of oily sludge by biological methods and control of volatile organic compound have also been incorporated in this Project.

- Incorporation of efficient process to achieve higher recoveries in effluent recycle by RO and to optimize the evaporation plant to meet regulatory requirements have been incorporated in GGSRP- HMEL at Bathinda.

Exploration in the new area of Nuclear Energy has been initiated. The Division is also providing assistance to ITER (International Thermonuclear Experimental Reactor) for Cooling Water Treatment System as well as pursuing Environmental Impact Assessment studies for this sector.

Information Technology

EIL strives for continuous upgradation of IT infrastructure to match world class facilities. To achieve this, many activities were undertaken including:

- The Local Area Network (LAN) Systems at HO, Delhi and R&D Complex, Gurgaon have been upgraded by acquiring latest state of the art LAN equipment/ system. It implements fault tolerant switching & multi gigabit fibre optic backbone cabling to increase system availability & performance, virtual LAN for network security and WLAN for Wi-Fi connectivity and latest features for deployment of video and voice- over-IP solutions.

- Keeping in line with the latest IT technologies and to provide value added services, certain mobile based applications have been developed and implemented.

- Material handling software packages at construction sites have been upgraded to ensure better material control.

- Pre Commissioning & Commissioning Activities Management System (PCAMS) has been developed & deployed on web servers for site co-ordination activities during pre-commissioning & commissioning of plants. The system is being used by interdisciplinary teams.

- Electronics Document Management System (eDMS)

which was installed last year for creating automatic workflows and creating repository of vital document is being utilized for live projects.

Procurement Services

Successful project execution is largely dependent on timely and efficient procurement of goods and services. During the year, the Procurement Services Division continued to manage the complete supply chain for various ongoing projects.

The Division is fully of implementing new technologies for improving the efficiency and effectiveness of Contracting & Purchasing function. Almost all Contracting and Purchasing functions are IT enabled. The Division has implemented e-procurement as well as Reverse auction for its procurement.

One landmark achievement during the year was setting up a procurement office in China in order to study the Chinese manufacturing industry catering to the oil and gas industry, enlist capable manufacturers and also offer inspection services to these units.

Public procurement has three vital components, i.e., transparency, equity and fairness. EIL is continuously focusing on enhancing the same whilst simultaneously improving the process efficiency. The confidence reposed by EILs Clients in our procurement systems is one of the factors enabling EIL in securing several OBE projects from various Clients.

During the year, ` 2,500 crores of direct purchases/sub- contracts were done, from all over the world, for various LSTK Contracts including infrastructure projects. Besides this, Rs. 15,250 crores of goods and services were procured for various Clients projects.

One of the highlights this year was purchasing of the line pipe (48"/36"/20":600 km) for Vijaipur-Dadri- Bawana Pipeline Project of GAIL for a value of Rs. 2,263 crores. The Division carried out in-process and pre-dispatch inspection of various complex equipment at the suppliers works through its Regional Procurement Offices located all over the country and also in London and Italy. This includes inspection of High Pressure Breach Lock Heat Exchangers, Reactor Feed Pumps, DHDT Cr-Mo-V modified Reactor, Coke Chamber and more than 1500 kms of line pipes of size 20" to 48" in the Pipe Mills. The Division is on continuous lookout for identifying capable vendors and suppliers for which on-line application, evaluation and data bank is an ongoing activity. A dynamic data base of capable Suppliers and

Contractors is maintained in the Division, which is continuously upgraded, monitored for their performance through systematic & transparent audit- cum-assessment programme. This helps the Company and its customers in sourcing quality products at a competitive price.

Quality Management System

In EIL, Quality is focused on facilitating and achieving long term success of the Company by building Quality into our workplace, deliverables and services by using and strengthening the Systems.

The Quality Management System in respect of Companys services has been reassessed as per the requirement of ISO 9001:2008 by the certification agency, which conducted the renewal audit during the period under review. The certification agency after audit, declared that the Quality Management System of the Company conforms to international standards. The most important ingredients of our quality initiatives are effective and comprehensive internal audit process, planned customer perception surveys, analysis of feedbacks from stake holders and regular directions from internal Systems Committee consisting of senior officials which regularly monitors and analyzes the systems/data and recommends the improvements in processes, products and quality system to reduce costs, shorten cycle times and improve visibility and credibility without affecting the environment.

Quality Management System of EIL - UAE (Abu Dhabi) office was also independently audited and certified by Certifying Agency for its conformance to the requirement of ISO-9001, during period under review. In addition, the Company participated as a prominent and active member in numerous committees for formulating products and quality system standards by M/s Bureau of Indian Standards.

EIL is constantly trying to position itself to face the challenges of economic volatility with Quality as a strategic tool.

Risk Management

The Company has well defined Risk Management policy and comprehensive framework to review the risk assessment and its management for mitigation. The process is based on pre-identified risks and the risk events or factors which require regular assessment and quick response. Based on the probability, impact of the risk and cost of controls, the risks are prioritized. The objective of risk management in the Company is to reduce input cost, shorten cycle time and improve visibility.

Risks, their root causes, controls and action plans are prepared by process owner regularly and are approved by Risk Management Committee (RMC). RMC consists of executive directors and selected heads of departments. The management is committed to further strengthen its risk management capabilities in order to protect and enhance shareholder value. Considering continuous, planned efforts, monitoring by top management and participation of all employees, the identified risks are within the risk appetite of your Company. Given all this, stakeholders interests are protected.

Vigilance

During the year, vigilance activities such as investigation of complaints, inspection of files pertaining to in-house contract/purchases, scrutiny of Immovable Property Returns, review of Internal Audit Reports, etc. were carried out dedicatedly by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures and Government guidelines. For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/CVC during the intensive examination of works pertaining to EIL were examined and necessary actions were taken. System improvements were suggested to the Management wherever found necessary.

Structured meetings with the C&MD were held as per CVC guidelines also. Vigilance activities were also presented to the Board. CVO held interactive sessions on vigilance awareness with EIL officials during his visit to Regional Office Kolkata, Branch Office Mumbai and construction site office at Jodhpur.

Finance

The Company continued its strong cash generation driven by business performance. The efficient financial and cost management system continued to facilitate cash generation as well as creation of wealth. The Company optimized the returns on cash reserves by deploying cash surplus in safe and liquid instruments as per the approved investment policy of the Company.

Internal Audit

The Company has Internal Audit set up with adequate number of professionals. Several system and internal audit assignments have been carried out and the reports have been submitted to Management and the Audit Committee of the Board.

Human Resource & Industrial Relations

Human Resource being the key driver for business performance at EIL. The Company has been helping employees to develop their personal and organization skills, knowledge and abilities. This is being done by incorporating the competency based approach in various HR sub-systems especially in the area of employee development.

Competency Mapping was carried out for all lower, middle and senior management in the organization. Assessment and Development Centres were organized for 49 role incumbents and their Individual Development Plans put in place. 145 Competency based training interventions were planned for various level clusters and focused training was designed based on the functional, managerial and behavioural competencies which covered 2539 regular employees and 546 Management Trainees.

Three Management Development Programmes covering 64 employees from various EIL site offices were conducted in collaboration a Management Institute in New Delhi. An Advanced Management Programme was also conducted with one of the IIMs.

With a view to strengthen the Mentor-Mentee relationship and make the Mentoring practice more fruitful, Mentor-Mentee Meets were organized for Management Trainees and their Mentors in an out- bound format so as to focus on issues like Team Building, Trust, Risk taking, Commitment and Planning.

Aarohan - Leadership Development Programme

EIL embarked on a journey, in partnership with a global management consulting firm to develop future leaders for EIL with the following objectives:

- Strengthening organizational capabilities to sustain EILs growth aspirations

- Developing leaders from within the organization for the existing business needs and future growth plan

- Enabling sustainable leadership development at EIL The programme provided opportunities to the participants to self reflect and enhance understanding of their strengths and development areas. The programme focused on individual and group leadership development initiatives. Based on the successful completion of the programme for the first batch of 25 Business leaders, the programme is being taken forward for two more batches- one for business leaders and another for Functional leaders.

Development of E-learning modules

As part of our journey towards making our organization

knowledge driven, two more important e-learning modules were completed:

- Information Technology Services, &

- Construction Management Services

With this a total of six e-learning modules are now available in various functional areas. Moving forward it is envisaged to integrate these modules into a comprehensive Learning Management system.

Industrial relations continued to remain cordial and co-operative.

Total regular manpower strength of the Company as on March 31, 2010 stood at 3300. This includes 359 women employees representing 10.8% to total strength. This is one of the highest interms of percentage in Oil PSUs.

Scheduled Caste & Scheduled Tribes

With a view to accelerate the pace of socio-economic development of the nation, EIL has been endeavoring towards safeguarding the interests of disadvantageous sections of society. In pursuance of the philosophy and compliance of Presidential Directives dated December 30, 1972 issued by Ministry of Petroleum and Natural Gas, EIL has incorporated necessary provisions in its recruitment process and promotion norms.

The Company has appointed a Liaison Officer to work as a catalyst in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employees Welfare Association by holding periodical meetings with the Association.

As on March 31, 2010, 18.5% of total staff strength was from Scheduled Castes and 3.10% from Scheduled Tribes. Senior officials of the Company have been holding regular meetings with representatives of SC/ST Welfare Association and Liaison Officer for redressal of their grievances/ concerns. During the year, of the 349 personnel joining the Company 101 belonged to SC/ST (SC-86, ST-15). Reports are being sent to MoP&NG/DPE periodically as per Govt. of India guidelines. Post based rosters are being maintained in direct recruitment and in promotion.

In order to fill up the backlog of vacancies, EIL has been resorting to special recruitment drives from time to time which have helped in meeting the constitutional obligations.

Besides, the Company has also taken up special component plan and sub-tribal plan for the welfare of communities. In coming days, Company intends to focus its CSR initiatives keeping the welfare of SC/ST population in mind.

Corporate Social Responsibility

During the year 2009-10, the Company remained focused towards its social obligations. A budgetary allocation of 2% of PAT of the year was kept for CSR. The Companys CSR initiatives during the year include :

- Education

- Electrification in Rural areas through Solar Power

- Drinking Water

- Healthcare

Official Language

Quarterly meetings of Official Language Implementation Committee (OLIC) of EIL were held regularly in which progress made in use of Hindi was reviewed. The meetings of different OLICs of Regional/ Field/Procurement Offices were also organized as per schedule.

Provisions of the Section 3(3) of the Official Language Act and the Official Language Rules have been complied with. All assurances given to Committee of Parliament on Official Language have been fulfilled. The initiatives taken in the field of IT include - activating Unicode facilities in all computers, providing Indic IME, Shrutlekh, Shabdika, Parivartan and other software on the computers and training of above softwares has been imparted. The Hindi Fortnight was celebrated during September 14-28, 2009 in the Company. Various competitions were organized to encourage the progressive use of Hindi and 66 employees were awarded with prizes.

In pursuance of the Official Language Policy of the Government of India, 98% employees have already got working knowledge of Hindi. Hindi Classes (Prabodh, Praveen & Pragya) are being conducted in Head Office and employees of site offices are being nominated in correspondence courses. 90% stenographer & 97% typists of EIL are trained in Hindi stenography and typing respectively. In case of Head Office 100% target has been achieved in respect of Stenographer & Typist. In the computer training programme organized by NIC under the aegis of Official Language Department, Ministry of Home Affairs 11 employees were sent for training. In order to monitor effective implementation of Official Language in the Company, EIL Rajbhasha Vibhag conducted inspections of 16 Divisions/ Departments in Head office and 8 Regional/ Fields /Procurement offices. Besides, Eight Hindi workshops were organized at Head Office, New Delhi and 8 at Regional/Field/Procurement offices. In order to uplift the socially backward and

illiterate cleaning staff of the Company, the facility of Hindi teaching is being provided in official premises. For its outstanding contribution towards Official Language Implementation, EIL was awarded 3rd prize for "The Indira Gandhi Rajbhasha Award" by Rajbhasha Vibhag, M/o Home Affairs, Govt. of India. The prize was awarded by Hon. President, Mrs Pratibha Devi Singh Patil to our C&MD on the occasion of Hindi Day celebration organized on September 14, 2009 at Vigyan Bhawan, New Delhi.

Awards

- Certificate of Recognition from IOCL for achieving 70 million man-hours of continuous work without any LTA for Panipat Naphtha Cracker Project at Panipat.

- Certificate of Recognition from IOCL for achieving 10 million LTA free man hours for LLDPE/HDPE Swing Unit Project (EPCC-3) at Panipat.

- Certificate of Appreciation from HMEL for achieving 3 million man-hours without any LTA for Crude Oil Terminal Project.

- Certificate of Recognition from ISPRL for achieving 2 million man-hours without any LTA for Strategic Storages Project at Vizag.

- Certificate of Recognition from BORL for achieving 10 million man-hours without any LTA for Bina Refinery Project.

- Letter of Appreciation from MRPL for achieving 2 million man-hours without any LTA.

- Memento from HMEL for meeting engineering commitments for GGSRL Project at Bathinda.

- Eighth time recipient of Indira Gandhi Shield for Rajbhasha Implementation 2007-08 - 3rd Prize.

- OCEANTEX 2010 Leadership and Excellence Award to C&MD, EIL.

- PRSI (Public Relation Society of India) Award for EIL Annual Report for the year 2008-09 - 1st Prize.

- EIL ranked at 179 in The BS Real 500 - a Special Issue of Business World (November 2009).

Subsidiary Companies

Certification Engineers International Ltd. (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provide Certification as well as Third Party Inspection (TPI) services to various clients. During the year, CEIL secured a number of assignments from ONGC Petro Additions Ltd (OPaL), VMC, GSPL, L&T, Tecnimont, various State Governments and others, notable among these being:

- TPI for DFCU & AU of OPaL.

- Infrastructure Projects for VMC, AUDA

- Various Pipeline Projects of GSPL

- TPI for DHT, HGU & Reformer Project of MRPL Refinery from L&T.

- TPI for MRPL HCGO Hydrotreating Unit from Technimont India

Apart form these, CEIL secured many Third Party Inspection assignments from clients like VTVL, Petron Engineering etc.

The Board of Directors of the Company has recommended for the financial year 2009-10, a final dividend of `175/-per share (of face value of `100/- each) in addition to Rs.125 per share interim dividend already paid during the year. With this the total dividend for the year 2009-10 works out to Rs. 300/- per share. Payment of final dividend is, however, subject to approval of the shareholders in the Annual General Meeting.

EIL Asia Pacific Sdn. Bhd. (EILAP)

EILAP is a wholly owned subsidiary of EIL incorporated in Malaysia. The broad activities of the Company are to provide technical services for projects in oil & gas and other industrial sectors. However, lately there have been constraints in operations due to changes in local regulations and general down turn in business environment leading to paucity of business for the Company during the year.

Conservation of Energy, Technology Absorption Foreign Exchange Earnings and Outgo

As the Company operations do not involve any manufacturing or processing activities, the particulars as per the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, regarding conservation of energy and technology absorption, are not applicable. The particulars regarding expenditure and earnings in foreign exchange are given in Item No.13 Schedule J Notes to the Accounts.

Corporate Governance

Certificate of the Auditors of EIL regarding compliance of the conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges along with the Managements Reply on the comments of Auditors is enclosed.

The Board of Directors supports the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity.

A Report on Corporate Governance, as required under Clause 49 of the listing agreement, is annexed. Code of Conduct

EIL has formulated a Code of Conduct for its Board of confirmation of compliance of the same is obtained from all concerned on annual basis. All Directors and senior management personnel have given their confirmation of compliance for the year under review. A declaration duly signed by C&MD is given under para 2(e) of the Report on Corporate Governance.

Directors Responsibility Statement

Pursuant to Section 217(2AA) of the Companies Act, the Directors confirm:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same

ii. that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period

iii. that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities

iv. that they have prepared the annual accounts on a going concern basis

Auditors

M/s Jagdish Chand & Co., Chartered Accountants were appointed as Auditors of EIL for the financial year 2009-2010 by the Office of Comptroller & Auditor General of India.

Bankers

Bankers of the Company include Indian Overseas Bank, State Bank of India, State Bank of Travancore, Vijaya Bank, Corporation Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, HDFC Bank and ICICI Bank.

Particulars of Employees

Information with respect to employees as required by Section 217 (2A) of Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended is given as Annexure to this Report.

Directors

After the date of last Directors Report i.e. 4th August, 2009, Shri Ashok Kumar Purwaha was appointed as Chairman & Managing Director of the Company w.e.f. 01.10.2009 in place of Shri Mukesh Rohatgi, who relinquished office on 30.09.2009 on attaining the age of superannuation.

Shri Ram Singh was appointed as Director (Finance) of the Company w.e.f. 28.01.2010 and consequently the additional charge of Director (Finance) entrusted with Shri A.K. Purwaha, Chairman & Managing Director w.e.f. 01.10.2009 on ad-hoc basis was vacated. Shri D.K. Gupta, Director (Personnel) retired on attaining the age of superannuation from the Board of the Company w.e.f. 31.01.2010. Shri P.K. Rastogi was appointed as Director (Personnel) w.e.f. 30.04.2010 and consequently the additional charge of Director (Personnel) entrusted with Shri A.K. Purwaha, Chairman & Managing Director w.e.f 01.02.2010 on ad-hoc basis was vacated.

Shri R.K. Saxena, Director (Commercial) retired on attaining the age of superannuation from the Board of the Company w.e.f. 31.05.2010. Shri G.D. Goyal was appointed as Director (Commercial) w.e.f. 20.07.2010 and consequently the additional charge of Director (Commercial) entrusted with Shri A.K. Purwaha, Chairman & Managing Director w.e.f 1.06.2010 on ad- hoc basis was vacated.

Shri Dependra Pathak, Director (Govt. Nominee) ceased to be Director of the Company w.e.f. 2nd July, 2010. Shri Adit Jain and Dr. (Prof.) KDP Nigam were appointed as non-official part-time Directors by the Ministry of Petroleum & Natural Gas w.e.f. 09.07.2010 and accordingly they were inducted on the Board of the Company w.e.f. 09.01.2010.

Shri M.K. Joshi, Director (Technical) retired on attaining the age of superannuation from the Board of the Company w.e.f. 31.07.2010.

The Board has placed on record its sincere appreciation of the valuable services rendered and contributions made by Shri Mukesh Rohatgi, Shri Dependra Pathak, Shri D.K. Gupta, Shri R.K. Saxena and Shri M.K. Joshi during their tenure as C&MD, Director (Govt. Nominee), Director (Personnel), Director (Commercial) and Director (Technical) of the Company respectively. In accordance with the provisions of the Articles of Association of the Company, Shri R.K. Grover, Director (Projects), Shri U.N. Bose, Director and Shri B.N. Bankapur, Director would retire by rotation, at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment.

In accordance with the provisions of the Companies Act, 1956, Shri Ram Singh, Shri P.K. Rastogi, Shri Adit Jain, Dr. (Prof.) KDP Nigam and Shri G.D.Goyal who were appointed as Additional Directors after the date of last Directors report, shall vacate their offices at the ensuing Annual General Meeting. Necessary notices have been received from the Members/Directors of the Company under Section 257 of the Companies, 1956, proposing their candidature for appointment. The Board recommends their appointment.

Brief resume of the Directors seeking appointment/ reappointment together with the nature of their expertise in specific functional areas, names of companies in which they hold directorships and the membership of Committees of the Board and Shareholding of non- executive directors as stipulated under Clause 49 of the Listing Agreement are given in the Corporate Governance Report and Annexure to AGM Notice.

Acknowledgement

Your Directors are grateful for all the help, guidance and support received from Ministry of Petroleum & Natural Gas and from other Ministries of the Government of India. Your Directors are also grateful to the Bankers, Statutory Auditors, Comptroller & Auditor General of India and the investors for their continued patronage and confidence in the Company.

Your Directors thank all our esteemed clients for the faith and trust reposed in the Company. With continuous learning, skill upgradation, technology development we will continue to provide world class professionalism and services to our clients.

Your Directors thank all associates, vendors and contractors within the country and abroad, for their continued support without which EIL could not have achieved the desired results.

Your Directors are grateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for their continued help and support.

Your Directors wish to convey their appreciation to all employees for the valuable services and cooperation extended by them and are confident that they will continue to contribute their best towards achieving still better performance in future.

For and on behalf of the

Board of Directors

A.K. Purwaha

Chairman & Managing Director

Place : New Delhi

Dated : August 12, 2010.