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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
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VOLUME 99149
52-Week high 175.70
52-Week low 113.75
P/E 31.70
Mkt Cap.(Rs cr) 10,341
Buy Price 0.00
Buy Qty 0.00
Sell Price 153.45
Sell Qty 463.00
OPEN 151.50
CLOSE 152.25
VOLUME 99149
52-Week high 175.70
52-Week low 113.75
P/E 31.70
Mkt Cap.(Rs cr) 10,341
Buy Price 0.00
Buy Qty 0.00
Sell Price 153.45
Sell Qty 463.00

Engineers India Ltd. (ENGINERSIN) - Director Report

Company director report

To

The Shareholders Engineers India Limited

Dear Members

Your Directors have great pleasure in presenting the 51st Annual Report forthe financial year ended March 31 2016 along with Audited Statement of Accounts theAuditors' Report and Review of the Accounts by the Comptroller and Auditor General ofIndia.

2015-16 in Retrospect

Your Company sustained its good performance during FY 2015-16. The key highlights ofthe financial performance of the Company for the year as stated in the audited financialstatement 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/ (Excess) (455) 124
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

Consultancy & Engineering Projects Year ended 31.03.2016 Year ended 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 beenidentified to any of the reportable segments as the fixed assets and support services areused interchangeably between segments. Accordingly no disclosure relating to segment wiseassets and liabilities has been made.

Dividend

The Board of Directors of the Company has recommended a final dividend of '2/- pershare (of face value of Rs 5/- per share) for the financial year 2015-16 in addition toRs 2/- per share interim dividend already paid during the year. With this the totaldividend for the financial year 2015-16 works out to Rs 4/- per share amounting to Rs13477.46 Lacs excluding dividend distribution tax. The payment of final dividend ishowever subject to approval of the shareholders in the ensuing Annual General Meeting ofthe Company which shall be paid to the Members whose names appear in the Register ofMembers as well as beneficial ownership position provided by NSDL/ CDSL as on 8thSeptember 2016.

Investor Relations

It has been a constant endeavor of your Company to achieve highest standards ofcorporate governance and all measures are undertaken to enhance market confidence andimprove shareholder engagement through periodic regular transparent and opencommunication.

The Management is committed to sharing information with investor community on theCompany's performance and convey essential updates on likely expected projects newbusiness initiatives future outlook industry insights and avenues of growth potentialand investment plans periodically.

Investor Relations provides timely communication of such information which acts as aneffective bridge between the management and investor community. The Investor RelationsCell handles all investor concerns and issues efficiently aligning it with disclosurerequirements transparency and Corporate Governance Rules & Regulations therebyinculcating a "trust relationship" with the stakeholders.

The Management and Investor Relations Cell are actively communicating with theinvestors by means of one-on-one meetings conference calls investor conferences roadshows etc. The print and web media are also being utilized for timely dissemination ofvital 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 & Gasand 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 LNGTerminal at Chhara of HPCL Shapoorji Energy Pvt. Limited (joint venture project of HPCLand 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 andimplementation 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 handlechemical small Parcel size vessels at New Mangalore Port.

• Detailed Feasibility Report & Detailed Project Report to provide handlingequipment 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 revampproject.

• 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'sAssociated Facilities Project at Mangala Processing Terminal comprising Storage Tanks andExport System Power Generation & Distribution system and integrated balance works wascompleted.

Additionally FEED for Bhagyam Polymer EOR Project of Cairn India Limited was preparedduring the year.

Pipelines

EIL has a significant track record in design and execution of crosscountry pipelinesfor transportation of crude oil refined petroleum products natural gas and LPG. Thefollowing 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 Pipelinefor GAIL.

• 36" HDD SatlujRiver crossing and 18" HDD Yamuna River crossing forGAIL.

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

• DFR for Palanpur-Vadodara pipeline project for HPCL.

• DFR for augmentation of Barauni-Bongaigaon Section in Naharkatiya-Baurauni CrudeOil 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 andSpurline to Chittorgarh for GAIL.

• Engineering and PMC Services for Mundra-Bhatinda Pipeline Capacity Expansion ofHPCL-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 tothe 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 majorprojects:

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

• EIL is providing EPCM services for conversion of CRU to ISOM and revamp of NHDSto NHT at BPCL Mumbai Refinery to maximize Isomerate yield and Octane Number and producespecial products like Food Grade Hexane. Detailed engineering procurement andconstruction activities are in progress.

• EIL has been rendering PMC services for Revamp and Capacity Enhancement Projectof BORL Refinery which aims to increase the refining capacity from the current 6.0 MMTPAto 7.8 MMTPA. Completion of BDEP by Licensors for licensed units and procurementactivities 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 whichEIL is providing EPCM Services.

• Engineering procurement and construction activities are in progress forDistillate Yield Improvement Project at IOCL Haldia Refinery.

• Detailed engineering and ordering has been completed for INDAdeptGProject at IOCL Guwahati Refinery. Construction activities are in progress.

• Substantial progress has been achieved in construction of new RO Plant atBarauni Refinery.

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

• EPCM services for 2.6 MMTPA Diesel Hydrotreater (DHT) and Associated Facilitiesproject at BPCL Mumbai Refinery to produce Diesel conforming to BS IV standards. All majorequipment and other materials have been ordered. Construction activities are progressingin full swing.

• EPCM services for 0.7 MMTPA DHDT and Supporting Facilities project at NumaligarhRefinery of NRL. Engineering Procurement and Construction activities are in full swing.

• HPCL engaged EIL as PMC for the pre-project activities of their Vizag RefineryModernization Project. Additionally multiple assignments for preparation of DFRs forHPCL's new/existing (upgradation) of marketing terminals across the country have beenreceived.

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

• HPCL awarded to EIL their new tankages project at Mumbai. Engineering andtendering is in progress.

Petrochemicals

The following Projects were successfully completed during the year:

• The Assam Gas Cracker Project a grass-root petrochemical project of BrahmaputraCracker and Polymer Limited was commissioned during the year. The Project was dedicatedto 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 plasticindustry in the North-Eastern region of the country.

• GAIL Petrochemical Complex-II Project consisting of Gas Sweetening and GasProcessing units with associated Captive Power Plant and Utilities & Offsite atVijaipur and Gas Cracker complex GPU-II LLDPE/HDPE (Swing unit) and Butene-1 Units atPata were successfully commissioned and Plants have been put into operation afterstabilization.

Significant progress has been made on the following petrochemical projects:

• The DahejPetrochemical Complex of ONGC Petro additions Limited (OPaL) hasachieved considerable progress wih the Dual Feed Cracker HDPE PP and Butene units beingunder commissioning and LLDPE/HDPE Swing Unit is in advanced stage of completion. TheCaptive 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 movingahead with EPCM-I awarded by BPCL for site enabling works BDEP review and acceptance ofLicensor's package. For EPCM-II go ahead has been given by BPCL.

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

Strategic Storages

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

Under Phase-I of the Strategic Storage programme EIL is providing PMC services toIndian Strategic Petroleum Reserves Limited (ISPRL) for construction of undergroundunlined rock cavern storages in Vishakhapatnam Mangalore and Padur having a totalcapacity of 5.33 MMT. During the year Vishakhapatnam storage has been commissioned whilepre-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 ofBarmer Lignite Mining Company Limited in Rajasthan.

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

• Techno Economic Feasibility study for increasing production productivity orprofitability of Smelter Plant at Angul for NALCO.

• Benchmarking study for downstream Aluminium industries in the proposed Aluminiumpark in Angul.

The following Projects/Assignments are in progress:

• Detailed Feasibility Report based on the report for Scoping Study for MechanisedProduction and Evacuation of Iron Ore from Kurmitar Project of Odisha Mining CorporationLimited (OMC).

• Review of various high rise structure stability for Hindalco.

Infrastructure

In the Infrastructure sector EIL is providing a wide spectrum of services such asProject 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 forPackage VI.

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

• Consultancy services for preparation of Master Plan and DPR for development ofVijayawada 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 watersupply sewerage & septage transportation and park development as part ofrejuvenation of 9 cities of Odisha under AMRUT (Atal Mission for Rejuvenation and UrbanTransformation) 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 IndianOilFoundation.

• Technical and Financial Audit of Infrastructure works in various Urban LocalBodies (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 IndiaLimited.

• Extension of TPI services for Infrastructure Projects of Pune MunicipalCorporation.

• 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 Governmentof India and its amendment in September 2014 the Fertilizer sector in India is expectedto grow in the near future. EIL is leveraging its capabilities and global network to tapsignificant business opportunities presented by this sector in India and Overseas. As aresult EIL has achieved considerable success in this sector.

As part of strategic investments in the Fertilizer sector EIL has taken equityparticipation in Revival of Ramagundam Fertilizer Project along with National FertilizersLimited and Fertilizer Corporation of India Limited. A joint venture company (M/sRamagundam Fertilizers and Chemicals Limited) has been formed to pilot this project. EILis also executing this project on EPCM Mode. During the year significant progress wasachieved 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 (GhatsCrematoriums & Village level drain treatment) and Sewerage Infrastructure.

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

• PMC services for implementation of Sewerage Projects on the command of NajafgarhDrain 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 theUrban Local Bodies and Punjab Water Supply & Sewerage Board for Punjab MunicipalInfrastructure Development Company.

• EPCM Services for Effluent Treatment Plant at Tengakhat Assam for Oil IndiaLimited.

The Interceptor Sewer Project of Delhi Jal Board (DJB) for abatement of pollution inRiver Yamuna witnessed significant progress during the year. One Package has been alreadyhanded 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 atKota Rajasthan. During the year engineering and procurement activities progressed andsite activities gathered momentum.

Overseas Assignments

EIL has leveraged its strong track record in the Indian hydrocarbon sector tosuccessfully expand its international operations . Over the years the Company has emergedas a global player with the execution of a number of prestigious assignments forinternational 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 Upgradeat 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 HAZOPStudies for Habshan 1 & 2 Plants of Abu Dhabi Gas Industries (GASCO).

• Technical Support Study for 2 Nos. External Double Deck Floating Roof Tanks ofENOC.

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

• PMC services for Indorama Fertilizer Project for Indorama Eleme Fertilizer andChemicals Ltd. Nigeria.

• Advance FEED studies for Kuzey-Marmara Fixed Offshore platform and Pipelines ofTurkish Petroleum Corporation Turkey.

• Draft Pre-Feasibility Study Report for Global Steel Holdings UK for EngineeringConsultancy services for setting up an Ammonia and Urea Fertilizer complex in extremeweather conditions in Sakha Province of Russia.

• Configuration Study for Petcoke Storage & Handling Facility at Sohar Portnear Sohar Refinery.

EIL achieved substantial progress in the following major projects:

• EIL is providing EPCM services for the prestigious Dangote Refinery andPetrochemical Project comprising a 460000 BPSD grassroot Petroleum Refinery & 830KTPA Petrochemical Complex at Lekki Free Trade Zone Nigeria for Dangote Oil RefiningCompany (DORC). The major process units in Refinery include Crude Distillation Unit (CDU)a Residue Fluid Catalytic Cracking unit MS Block a Mild Hydrocracker unit Alkylationand Sulphuric Acid Regeneration Unit Product Treatment units Polypropylene Unit Sulphurblock and associated Utilities generation & Offsite facilities. The Project facilitiesinclude crude oil receipt & storage including two SPMs with associatedoffshore/onshore pipelines. The product dispatch facilities include product disposalthrough 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 infull swing and recommendation sent for order placement for major Long Lead Items Packagesand equipment. Second stage 3D model review and HAZOP study have been concluded for mostof the Process Units Utilities & Offsite area.

Additionally EIL is also providing class room and on the job training to NigerianExecutive Trainee Engineers from DORC. The Trainee Engineers of DORC will be provided aninsight into various facets of Project Management Process Design Detailed Engineeringand Construction Management as well as detailed information about DORC Refinery byin-house faculty .

• A number of major milestones have been achieved for Sonangol's 200000 BPSDGrassroot 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 RFCCGasoline DCU and Meroxes are underway.

• Under PMC services for Rehabilitation and Adaptation of Algiers Refinery ofSONATRACH substantial progress has been achieved on construction front.

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

• Design Consultancy and Project Management Consultancy services for miscellaneoustank 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 ZKWHTs of ADMA-OPCO.

• Protection Relay Coordination Study for the Abu Dhabi Refinery DivisionElectrical 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 SoharRefinery 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 considerableprogress during the year:

• GSPC's Onshore Gas Terminal (OGT) project at Mallavaram Andhra Pradeshexecuted on OBE mode was commissioned during the year.

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

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

• Modification work is in progress at Hazira Plant under Daman Development Projectof ONGC on OBE basis.

During the year EIL was successful in securing the job for executing Installation ofLean Gas Compressor and Associated facilities at Hazira Gas Processing Complex on OBEbasis from ONGC.

Performance of Divisions

Process Design & Development

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

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

• Basic Design Engineering Package and other services for revamping DHDT Unit atIOCL's Gujarat Refinery.

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

• Revamp of Vis-breaker of IOCL's Haldia Refinery through installation of soakerinternals.

• Coke Chamber replacement and modernization of Coker-A of IOCL's BarauniRefinery.

• EPCM Services for DHDT Project for Numaligarh Refinery Ltd.

• DFR for 6 MMTPA expansion of Numaligarh Refinery based on 100% Sour Crudeprocessing.

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

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

• PFR for maximization of production of MS and Diesel fuel quality upgradation toBS VI in BPCL's Kochi refinery.

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

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

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

• Licensor evaluation and detailed engineering for grass root Diesel Hydrotreaterunit for BPCL's Mumbai Refinery. Design and detail engineering of new and revampedassociated 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 offacilities required for building basic blocks of the petrochemical hub in Bina Region.

• Preparation of revamp process packages of CDU/VDU and other open art treatingunits utilities and offsite besides review of revamp process packages of licensed unitsof BORL's Bina refinery.

• Configuration study and DFR for HPCL's Mumbai Refinery for expansion of crudeprocessing capacity from 7.5 MMTPA to 9.5 MMTPA.

• DFR for expanding HPCL's Vizag Refinery crude processing capacity to 15 MMTPAwith inclusion of suitable bottom upgradation facilities for distillate yield and productquality improvement.

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

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

• Licensor selection for Residue Upgradation facilities of HPCL's Vizag RefineryModernization Project.

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

• Basic engineering and design services for FCC feed preparation unit for EssarOil Limited at Vadinar Refinery Gujarat.

• Feed Augmentation study with Ethane import facilities for GAIL's PetrochemicalComplex at Vijaipur and Pata.

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

• License Engineering Procurement and Construction management (LEPCM) Serviceswith single point responsibility for Methanol ISBL plant and integrated OSBL facilitiesfor 500 TPD Methanol and 200 TPD Acetic acid plant of Assam Petrochemical (APL).

• Vetting of Prefeasibility Report carried out by Adani Energy Limited inChhattisgarh for Polygeneration.

• PFR for 2200 TPD Ammonia and 3850 TPD Urea plants in Siberia Russia for GlobalSteel.

• 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 PetrochemicalComplex.

• Configuration Study Licensor Selection and Feed Revalidation for SonarefRefinery 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 underLCEP of GGSR Refinery.

• Conceptual Study for a Mega Refinery-cum-Petrochemical Complex on West Coast ofIndia.

• Configuration study for proposed refinery project in South Sudan.

• Preparation of DFR for standalone petrochemical complex based on importedEthane.

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

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

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

• Study report for examining the impact of high H2S content in ONGC'sB193 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 LPGtransportation in Ramanmandi-Bahadurgarh pipeline along with facilities for separation ofLPG/HSD LPG/MS and MS/HSD for HPCL is in progress.

• BDEP preparation for Life Extension of Well Platform (LEWP) project (Tender-1Tender-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 injectionplatform 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 towardsproviding optimized and value added services for all ongoing projects consistent with theclient requirements and objectives of the Company. The various divisions maintained focuson key areas like System Improvement and quality of deliverables enhanced productivity byadopting knowledge from past data repeatability of design enhanced software applicationand implementation of Electronic Data Management System (eDMS) alongwith improvedinformation exchange and communication systems resulting in lesser manual interfaces.Major emphasis was laid on Automation and Standardization of systems implementation ofInternal Audit and Monitoring and updation of specifications standards and guides. A largenumber of innovative processes concepts and technologies were implemented for the firsttime this year and some of them are as follows:

• Maiden Implementation of 66KV Gas Insulated Indoor Switchboards for a projectbeing executed in EPCM mode including development of specifications data sheets offerevaluation and preparation of contract specifications (Technical). Till recently EIL hadbeen going in for 33KV as primary distribution voltage for all projects being executed inconventional mode. For DORC's 20MMTPA refinery cum petrochemical project 66KV has beendesignated as the primary distribution voltage across the plant in view of the largequantum of Electric Power required to be handled and distributed because of the mega sizeof the plant and future expansion plans for the same.

• Development of new specifications for XLPE insulated Fire Retardant Low SmokeExtra 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 allprojects. As a responsible corporate with concern for global warming and carbon footprint use of energy efficient motors of min. 1E2 type and 100% LED fixtures for lightingof process / offsite and utilities has been initiated. This has been made a standardpractice 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 ofthermally sprayed Zn coating (TSZC) with paint top coat on external surface mounded bulletis employed as sacrificial type CP System. This requires no maintenance and monitoring.For corrosion protection of steel components exposed to water bimetallic component (newconstruction) of cooler and condenser application of thermally sprayed aluminum coatings(TSAC) with top coat Sealant on channel tube sheet flange faces gasket seating surfaceis used as sacrificial type CP System. This also does not require maintenance andmonitoring system.

Focused Services for corrosion protection and refurbishment of existing facilities:

• Revamping the Corrosion Protection system for LPG mounded storage tanks at GPUUsar.

• Corrosion Protection audit for Vizag Refinery.

• Pipeline Inspection and CIPL survey of five pipelines from Jawahar Dweep toPirpau Mumbai Port Trust.

• Miscellaneous troubleshooting/consulting related to Corrosion Protectionactivities 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 householdwater metering in AMRUT Project for nine cities of Odisha.

• Study Report on implementation of Wireless TETRA system in BORL Refinery complexand its adjacent township. The study includes integration of existing VHF based systemwith TETRA system.

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

• Maiden usage of Inception type aspiration based smoke detection system for therooms of offshore platforms in Neelam Redevelopment project ONGC.

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

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

• Design and engineering of Truck Loading gantry to take care of wide variation intanker sizes from 33 kl to 60 kl was carried out for Dangote Refinery & Petrochemicalplant 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. Thisis a relatively new concept and has been done for the first time in EIL.

• Conceptualization of HVAC system for Catalyst Chemical and TEAL storagebuilding in Dahej Petrochemical complex (OPaL) and developing detailed HVAC scheme forHazardous areas handling especially for critical chemicals like Peroxide TEAL etc. Thebuilding shall house chemicals and catalysts vital to plant equipment operation andrequiring stringent HVAC conditions.

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

Capability and Technology Enhancement in new areas having significant businesspotential in future:

Capability Development in the following new fields has been vigorously pursued andachieved 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 asper ASME Section VIII Division 2 Code 2015 edition.

• Thermo-Mechanical Fatigue Analysis of Coke Drums using Field MeasuredThermocouple Temperature Data.

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

• Design and Analysis of Single Deck and Double Deck Floating Roof Tanks. Troubleshooting 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 projectsin all fields of operations from inception to commissioning and beyond for domestic aswell as overseas jobs. Cost Engineering provides services such as preparation of capitalcost estimates and financial/economic analysis for diverse activities ranging fromtechnology selection to preparation of feasibility reports and option study estimates forinvestment decisions pertaining to projects handled by EIL in various areas likeRefineries Petrochemicals Fertilizer Cross country pipelines Power projectsMetallurgy Mines Strategic Storage Offshore Oil & Gas Infrastructure (such asNamami Gange and AMRUT) etc. It provides cost estimates for procurement and tenderingassistance during price negotiation cost monitoring and control during execution ofprojects under conventional and LSTK mode of execution. It also prepares cost estimatesfor bidding in EPC contracts.

Cost engineering has been maintaining historical data related to procurement andtendering of individual items ranging from nuts/ bolts/gaskets to packages worth thousandsof Crores since past two decades which is unparalleled worldwide. This data bank isconstantly updated based on the projects handled by EIL. The data bank has captured thehistorical 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 forvarious projects/items with a wide range of value. This vast database providescapabilities for valuable support in decision making regarding investments bid evaluationand award of contracts as well as effective cost control services.

Project Services - Planning

The Planning Division continued to provide planning scheduling monitoring projectrisk management and material control services to various projects. Using state-of-the-arttools and its database the Division caters to diverse project execution roles of theCompany viz. EPCM PMC LSTK/OBE modes. The Division also continued to provide projectmonitoring services to the Ministry of Petroleum and Natural Gas as in the precedingyears.

Procurement Services

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

The Procurement Services Division in order to excel in its services has beencontinuously improving its systems and working procedures by introduction/ upgradation ofIT tools newer technologies guidelines database and most importantly updation ofknowledge and skills of its officials. This has resulted in efficiency effectiveness andtransparency in procurement.

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

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

EIL has been instrumental in stimulating and promoting domestic manufacturing andproduction capacities besides providing support to priority sectors in becoming morecompetitive and export oriented. EIL has also been in the forefront in supportingGovernment initiatives in enhancement of indigenous vendors' involvement in GovernmentProcurement.

While whole heartedly carrying on Government of India's Make in India initiative withan aim to get global recognition for the Indian economy EIL has been pursuing severalinitiatives like focus on import substitution vendor interaction to upgrade indigenousmanufacturing processes and technologies online empanelment of prospective vendors andskill development of vendors through continuous interaction assessment evaluation andfeedback.

Government of India through Public Procurement Policy (PPP)-2012 for Micro and SmallEnterprises has set certain milestones for the Government and PSUs to achieve. EILthrough its commitment and dedication has been instrumental in implementation of thispolicy and ensuring increased participation of MSEs in the Company's procurement. EIL hasprocured Rs 47.14 Crores goods and services from micro and small enterprises which isaround 30.57% of the total value of direct purchase orders for goods and servicecontracts placed by EIL during the year 2015-16.

EIL has been organizing and participating in various seminars organised by Ministry ofMicro Small & Medium Enterprises to encourage development of MSME sector includingSC/ST Entrepreneurs. EIL has participated in various seminars organised in Delhi KolkataKarnal Solan Chennai Ghaziabad by CII HPCL BPCL etc.

Procurement Services Division carried out in-process and pre-dispatch inspection ofcritical equipment at suppliers' works as well as at Project sites through its regionalProcurement Offices located all over the country and overseas offices located in LondonShanghai and Milan. Major items inspected included two VGO Reactors (Chrome Moly) weighing550 MT each for BPCL IREP Project amongst many other large sized equipments. Tenengineers were trained in TOFD (Time of Flight Defraction) and PAUT (Phased ArrayUltrasonic Testing) i.e. the latest NDT Techniques which resulted in reducing delays ascompared to conventional Radiography techniques.

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

Construction

The Division provides services for Construction Management in totality includingContract Administration Construction Quality Surveillance Feedback Analysis HSE andWarehouse Management for various projects of EIL withstanding diverse challenges andlocal impediments associated with climatic conditions difficult terrain spaceconstraints etc. which are unique to the nature of the project.

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

Concurrent prestigious commitments for the Division include Integrated RefineryExpansion Project at Kochi OPaL Petrochemical Complex at Dahej DCU for CPCL at ChennaiSJPL Paradeep NBPS Guwahati Indorama Fertilizer Project in Nigeria RehabilitationProject 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 forestablishing and monitoring adherence of Construction Quality Management system. Thesystem advocates quality plans inspection test plans and implementation of specialprocesses for concreting welding involving latest NDT techniques digital radiographyultrasonic test etc. during all phases of construction to ensure trouble freecommissioning/operation of critical units.

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

• 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 andimprovised equipment/machineries to minimize construction schedule across project sitesas 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 hazardousconventional NDT methods like radiography.

The Company's commitment towards adherence of world-class Health Safety andEnvironment standards in the execution of projects was epitomized by the multitude ofaccolades 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 aswell as natural environment during its services to customers. The Company enables theadoption of innovative integrated water management solutions for industries andmunicipalities while working to increase environmental social and economic benefits.EIL's commitment to sustainable environment is reflected from the fact that the Companyhas a full-fledged Environment Water & Safety Division in the company which hascompleted several projects in diversified fields of environmental engineering includingwater & wastewater treatment; effluent recycle and zero discharge projects;Environmental Impact Assessment studies; Environmental Audits; Air Quality AssessmentModeling and Control; Ground Water Monitoring Studies; Solid and Hazardous WasteManagement; Oily Sludge Management; Volatile Organic Carbon (Voc) and Fugitive EmissionsControl; 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 DahejPetrochemical Complex was commissioned successfully. This is the first plant in Indianhydrocarbon industry and one of the biggest installations in India for surface watertreatment based on membrane processes. This plant will pave way for the treatment of rawwater using membrane route with minimum footprint area and compatible cost besidesadvanced treatment and reduced project delivery time.

• EIL continued to provide consultancy services in municipal water and seweragesector including Condition Assessment Feasibility Study entry level activities underNamami Gange Program PMC Services to Odisha Water Supply & Sewerage Board (OWSSB) formanagement of Septage under AMRUT Detailed Feasibility and Project report to Punjab WaterSupply & Sewerage Board (PWSSB) for abatement of pollution in Buddha Nala in Ludhianaand PMC Services to Delhi Jal Board (DJB) for construction of Sewerage Network and SewageTreatment 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 nowbeen accredited in twelve sectors with the addition of a new sector viz. 'IsolatedStorage & Handling of Hazardous Chemicals'. The Company has QCI-NABET accreditedin-house EIA Coordinators and Functional Area Experts.

• Environment clearances were obtained from the Ministry of Environment Forestand Climate Change (MoEFCC) for RFCL's Ramagundam Fertilizer Project HPCL's VisakhRefinery Modernization Project and MOPA airport at Goa. Environment clearance was alsoobtained 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 SustainableDevelopment. Biodiversity Improvement Project (Phase-IV) for flowering plants in the EIL'sGurgaon Complex has been completed.

Research & Development

EIL has continually endeavored to deliver optimum services to the clients by providingvalue addition and leveraging technological advances. It is with this objective offostering the spirit of innovation and creativity in the organization that the Researchand Development Division was established. R&D has contributed significantly in theconsolidation of existing capabilities development of new technologies and hardwarebesides enhancement of the portfolio for special technology related services. The Divisionis pursuing developmental activities both in-house and in collaboration with academicinstitutes like IIT Delhi and other R&D organizations like IOCL-R&D CSIR-IIPBPCL (R&D) etc. Apart from these established R&D organizations EIL (R&D) hasalso been collaborating and cooperating with small companies to promote the creative ideasgenerated by them.

During the year R&D Division has undertaken the following initiatives fordevelopment of new capabilities and up-gradation / commercialization of existingcapabilities:

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 ashIndian coal

• Process scheme for selective Di-Olefin saturation for upgradation of CokerGasoline

• 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 lightpetroleum distillates

• Feasibility study of improved 3 phase reactor configuration for hydroprocessingapplications

• 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 producingaromatic free solvents.

Technology Commercialization Efforts:

• Energy Efficiency Improvement Study (EEIS) at HPCL Visakh Refinery inassociation with CHT.

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

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

• A proposal was sent to BORL for implementation of Kero Dearomatisationtechnology for production of aromatics free solvents from hydrotreated kerosene.

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

• Grassroot Sulfur Recovery Unit (SRU) and Tail Gas Treating Unit (TGTU) atNumaligarh 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 GatheringStation process system with Solar Block at ONGC Mehsana.

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

• Following orders were received for development of high capacity trays andpackings from

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

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

Initiatives taken for strengthening technology tie ups:

Renewal of membership for FY2015-16 for

• Process Science Technology Center (PSTC) an industry- academia collaborativeresearch program initiated by University of Texas USA.

• Fractionation Research Incorporated (FRI) a non-profit cooperative researchorganization 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 asystem 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 wereapplied 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 PetroleumPetrochemical 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 TrustMumbai.

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

• Revamp of Cathodic Protection system for LPG mounded storage tanks at GPU GAILUsar

Information Technology Services

Information Technology Services (ITS) Division continued to make advances providinghigh-tech IT enabled services to EIL's mainstream activities by developing/implementing ITsolutions to deliver better quality services with emphasis on increased efficiency andimproved 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 beingenhanced by adding new locations.

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

• The implementation of IT infrastructure at Abu Dhabi hub which included PCsperipherals LAN and videoconferencing was completed.

• To automate schedule monitoring during project execution a ManufacturingSchedule Portal was developed for suppliers. A new web based system for Supplier DatabaseManagement is also under development.

• A new software was developed for management of tender related billing titled RABilling System. This shall facilitate construction engineers in provide faster billinginformation and the designers in accurate calculation of tender item quantities.

• Development of a 3D Modeling Progress Monitoring System is in progress forfetching information from various sources (PDMS/ PDS/ IPMCS/ eDMS etc.) and compiling themin a single user interface to allow the end user to track progress of modeling stressanalysis isometric preparation verification and other piping activities therebyplanning the timely release of Isometrics.

• Enhancements in existing systems

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

• As a part of statutory requirement of the Government of India the eTDS systemat 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 thelatest file validation utility of NSDL.

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

• A new web based system titled PayIT is being developed to enhance employeebenefit modules by automating more processes putting various checks and balances in placethereby creating a better robust IT ecosystem.

• Workflows associated with processing of employee's expense report related withdomestic and foreign tours LTC etc have been automated through the software ExpenseManagement System.

• Enhancements were made in Financial Accounting System including:

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

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

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

• LSTK vendor payment system (LSTKVAcS) a new software has been developed forautomating advance payment processing bills from suppliers contractors and site RAprovision and release of withholding etc. apart from passing entries to accounting ledgersafter deducting taxes as applicable.

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

Sustainable Development

EIL's sustainability mandate has evolved from compliance to environmental regulationsand norms in a way that make it a responsible organization transparent to all itsstakeholders. The Company's project designs support sustainability right fromconceptualization to plant commissioning and subsequently the commercial operation.Energy efficiency resource optimization and safety of plant personnel and society atlarge are the cornerstones of our business operation. They also ensure businesscontinuity.

EIL has refocused its engineering philosophy and business models to achieve long termsustainable growth. It has also initiated evaluation and reporting of performance on thetriple bottom lines pertaining to economic social and environmental aspects. Thesustainability initiatives at EIL shall definitely propel the organization on an upwardgrowth 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 termperspective. Corporate Strategy and Business Development (CS&BD) division performs therole of evaluating market opportunities business developments venturing into newgeographies tie-ups with licensors/vendors/collaborators and augmenting the portfolio ofEIL by diversifying into sunrise sectors.

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

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

The CS&BD Division has initiated sustained business development activities insunrise sectors like Water and Waste Water Treatment SMART Cities PCPIRs etc as a partof expansion initiatives in new lines of business. Sustained BD efforts are also underprogress with ULBs Municipal Corporations and respective state governments in thisdirection. 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 Indiainitiatives and an enhanced presence in these domains.

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

HSE Management System

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

The Company's HSE policy covers the following

• Compliance to statutory requirements National & International Engineeringcodes and standards

• HSE Risks of activities mitigation of the same to prevent injuries & illhealth

• Minimization of environmental impact by conserving resources reducing wastegeneration 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 Managementsystem). The compliance with these standards was revalidated during the year by thirdparty certification bodies through a surveillance audit.

Various procedures checklists templates and an HSE manual have been developed andimplemented across the organization as part of HSE Management System. Awareness of the HSEManagement system amongst employees was created through class room trainings sharing oftraining materials/documents across different portals and an HSE Newsletter in additionto live demonstration of fire safety drills.

All establishments i.e. Head Office Gurgaon Branch Office in Mumbai RegionalOffices Regional Procurement Offices and Construction Sites of the Company have evolvedEmergency Preparedness and Response Plans (EPRP). Class room trainings and mock drills arebeing conducted to gauge the effectiveness of these plans besides the preparedness torespond to emergencies and feedback on gaps in the EPRPs.

In addition Hazard Analysis Risk Assessment & Control (HIRAC) and EnvironmentalImpact Analysis (EIA) are being carried out at all EIL locations to mitigate and controlHealth & Safety hazards and environmental impact.

Departmental audits and Management reviews of the HSE Management system are beingcarried out to strengthen and continuously improve the HSE Management system.

EIL has 26 qualified lead auditors for OHSAS 18001 and 3 qualified lead auditors forISO 14001 in addition to several internal auditors who contribute in conducting effectiveinternal audits.

HSE aspects are built into the procedures of various engineering departments.Exhaustive HSE checklists have been developed to ensure that these aspects are compliedpositively during process design and detailed engineering.

EIL has a detailed mechanism in place for HSE management at construction sites e.g. HSEspecification for construction activities is included as a part of all constructioncontracts so that contractors comply with EIL's HSE norms uniformly. Incident/Accidentreporting and investigation procedures with specific reporting protocols have beendeveloped and deployed.

Being a member of the British Safety Council and National Safety Council EIL keepsabreast of the developments in HSE domain through updates articles journals etc.

EIL has been accorded the status of "HSE Qualified Contractor" by its clientM/s NIS Serbia.

Quality Management System

Quality is inbuilt into the processes workplace deliverables and services of yourCompany. The Quality Management System (QMS) of EIL was reassessed during the year to meetthe requirements of ISO 9001:2008 by the accredited certification agency who conducted therenewal audit. The certification agency declared that the QMS of the Company continues toconform to international standards and extended the ISO 9001 certification for a period ofthree years.

Important ingredients of your Company's quality initiatives are effectivecomprehensive Internal Quality Audit processes planned customer perception surveysanalysis of feedbacks from stakeholders and frequent guidance from the Management ReviewCommittee (MRC) and Systems Committee. The MRC is chaired by the C&MD with allfunctional Directors being members. The Systems Committee is chaired by a senior ExecutiveDirector 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 inprocesses deliverables and QMS to reduce costs shorten cycle time address crossfunctional issues and improve credibility without affecting the environment. QMSimplementation and its effectiveness have been increased further by computerization ofcertain processes through in-house software.

The Quality Management System of EIL's UAE (Abu Dhabi) hub was also auditedindependently and reassessed for certification during the year. In addition the Companyparticipated as a prominent and active member in various committees for formulatingproducts and quality standards by Bureau of Indian Standards.

Quality Management System at EIL provides a competitive edge in securing and executingprojects with focus on customer satisfaction.

Risk Management

Your Company's Risk Management policy with a robust supporting risk management framework facilitates identification and assessment of new risks besides reviewing alreadyidentified risks. The process is based on identified risks and risk events or factorswhich require regular assessment and quick response. Based on the probability impact ofthe risk requisite controls and mitigation action plans have been designed andimplemented for risk treatment.

As an early warning mechanism Key Risk Indicators (KRI's) have been identified tomeasure the adequacy effectiveness and efficiency of these controls and action plans forprioritized risks.

The objective of risk management in the Company is to act as an enabler in maintainingits knowledge edge sustaining and expanding the business being competitive and ensuringexecution of projects within budgeted cost time and quality resulting in improvedturnover and profitability.

To cover all the elements of risk at enterprise level risks have been divided intonine categories as shown in the following diagram:

Risk compliance is verified regularly to test the compliance of controls and mitigationplans. A summary is presented to the Risk Management Committee (RMC). Risk identificationand 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 criteriaapproved by RMC. The risks severities are categorized into critical major cautionary andminor based on Risk Score (probability multiplied by overall impact). A risk reportissued monthly along with mitigation action plans is circulated to all concernedregularly 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 Committeeand 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 aboutvarious risk management activities/ achievement new topics/practices/ updates on ERM orPRM and creates enthusiasm in them to control risks proactively in their work processes.

The Company is committed to further strengthening its risk management capabilities inorder to protect interests and enhance shareholder value.

Vigilance

During the year CTE type examination of EIL's jobs on LSTK/OBE basis randominspection of in-house contracts/purchases scrutiny of Immovable Property Returnsinvestigation of complaints etc. were carried out by the Vigilance Department with thefocused objective of ensuring conformity to Company procedures and Government guidelines.Various rules regulations and procedures were reviewed during the year for systemizingthe work. The observations reported by CTE/CVC were examined and necessary actions taken.System improvements were suggested to the Management and necessary measures wereundertaken for improvement.

A number of initiatives were undertaken for spreading vigilance awareness amongst theemployees which include orientation program for new joinees on May 22 2015 andcelebration of Vigilance Awareness Week 2015 during October 26-31 2015 in various officesof EIL. As part of the Week a seminar on the topic "Preventive Vigilance as a toolfor Good Governance" was organized on October 28 2015 wherein Shri M. P. Junejaformer Additional Member - Railway Board & Ex. CTE CVC delivered the keynote addressin 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 & PurchaseProcesses was inaugurated by C&MD and Functional Directors on March 29 2016. As perdirections issued by the Central Vigilance Commission and the Department of PublicEnterprises details of vigilance activities were also presented to the Board for theperiod 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 beenimplemented 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 Trackingsystem (BTS) is ensured. BTS has a provision for facilitating details about the status ofvendors' bills.

• Complaint Handling Policy (CHP)

As per CVC Guidelines EIL has formulated a Complaint Handling Policy (CHP) to resolvecomplaints/grievances from public contractors vendors suppliers etc. A web portal foronline complaint handling is linked to the Company's website which is regularly monitoredby 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 consideredfor re-employment.

• Job Rotation

Job rotation of sensitive posts is being done and the same is being reported on monthlybasis.

• Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well astransparency in all its business dealings. An Integrity Pact Program was adopted inNovember 2011 for all Contracts & Purchases in EIL's account for enquiries havingthreshold value over Rs 5 Crore. The threshold value has now been lowered from Rs 5 Croreto Rs 1 Crore.

• Online Vigilance Clearance (OVC) and Scrutiny of IPRs

Online Vigilance Clearance and Immovable Property returns for employees are beingcarried out through the website for Vigilance activities - "Avalokan" on OVCportal.

Finance

The Company continued its strong cash generation driven by business performance. Theefficient financial and cost management system continued to facilitate cash generation aswell as creation of wealth.

EIL optimized the returns on cash reserves by deploying cash surplus in safe and liquidinstruments as per the approved investment policy of the Company.

Internal Audit

The Company has an Internal Audit Department having competent professionals. During theyear several internal audit assignments with focus on checks and controls on system andprocedures monitoring compliances and continuous upgrade of controls have been carriedout and the reports are regularly submitted to the Management and the major findings tothe 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 theemployees deliver directly impacts the results of the organization. HR thus endeavors atdeveloping a motivated workforce which is committed and aligned with the organization'sstrategic goal and objectives. Employee-centric policies and development initiatives drivethe human resource to deliver their best. The policies are regularly re-visited andupdated to keep them relevant.

As of March 31 2016 EIL has 3042 employees including 2425 professionally qualifiedemployees. Approximately 5.69% of our employees are located outside India functioning ininternational work environments.

• Talent Acquisition

Our talent acquisition strategy aims at identifying and developing a well equippedtalent pool. Diverse recruitment models are employed to meet dynamic business needs withintake of fresh talent domain specialists short term hiring through outsourcing andonboard consultants/advisors.

Planned job rotation has been implemented for optimum utilization of available humanresources.

• Performance Management System

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

• Employee Welfare

During the year efforts were made for aligning welfare measures towards enhancement ofthe quality of worklife for employees. Various employee welfare initiatives were takenranging from holding talk-cum-interactive sessions on Health & Lifestyle Enrichmentextension in medical benefits coping with stress etc besides sports and other familyget-togethers for enhancing the quality of life.

• Thrust on Sports

Providing a supportive role towards employee health & fitness EIL promotes aculture of sports by organizing weekend sessions and interdepartmental tournaments forvarious sports. Employees are encouraged to participate in trekking expeditions and sporttournaments at regional and national levels. The employees participated in 10 PSPBtournaments. An active member of Petroleum Sports Promotion Board (PSPB)

EIL hosted the PSPB Lawn Tennis Tournament at R.K. Khanna Stadium New Delhi where 8teams participated. Annual Sports Day is a calendared event and was organized in December2015.

• Annual Awards

Recognizing the contribution of team(s) and individuals employees were felicitatedthrough 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 37employees were awarded in different categories.

• Training & Development

In alignment with overall organizational and business strategy the Training Divisioncontinued to facilitate individual and organizational development. An Annual TrainingCalendar was drawn up enlisting programmes planned for the year. For the development ofinternal resources 111 Domain training programmes 73 soft skills/ behavioral and 6Leadership Development Programmes were organized for professional and life skillenhancement besides development of leadership continuity. Around 412 participants werenominated to 132 external training programmes organized by reputed organizations andinstitutions 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 forclients generating revenues for the Company and showcasing EIL's technical dominance.During the year 4 open programmes were organized at Company's Training & DevelopmentCentre Gurgaon and 12 customized programmes were conducted at various client locationsincluding Bahrain Vadodara Guwahati etc.

• Mentorship Development

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

• Leveraging IT in HR

IT assisted HR processes are regularly updated to comply with existing rules andpolicies 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 recordedmore than 17 Lakh hits during the financial year thus continuing its efficacy inmaintaining an interactive environment with employees located in India and abroad.

• HR Initiatives

The HR Strategy was formulated integrating multiple perspectives on the linksbetween business objectives and Human Resource functions. Cross functional teams wereformulated for pointers on how HR can contribute towards better integration of businessstrategy with HR functions on identified focus areas.

Assessment & Development Centres (ADCs) were conducted for 67 senior managementpersonnel during October - November 2015 for assessing officers in both individual andgroup based environments for all round development.

Performance Contracts (PCs) for 2015-16 were executed for all Divisions of HRDirectorate cascading business objectives within HR functions. The four perspectivesnamely Operational Process Financial and HR with each perspective having defined KeyPerformance Indicators (KPIs) and quarterly targets enabled continuous monitoring andevaluation 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 hasbeen endeavoring towards safeguarding the interests of SC/ST employees.

The Company has appointed a Liaison Officer to work as a facilitator in ensuring thatdue attention is paid to the issues of SC/ST employees. Management also encouragescommunication with the office bearers of the SC/ST Employee's Welfare Association byholding periodical meetings with the Association.

Scholarships were awarded by EIL to 15 SC and ST (SC- 10 and ST-5) undergraduateengineering students.

The percentage of employees belonging to Scheduled Castes and Scheduled Tribes was18.6% and 4.5% respectively out of the total employee strength of the Company (as onMarch 31 2016). Regular meetings were held with representatives of SC/ ST WelfareAssociation 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 withDisabilities (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 theofficer cadre. EIL has in place a Women Forum comprising of senior officials as PatronChairperson and Co-Chairperson to cater to the development needs of women employees.

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

Corporate Social Responsibility

EIL's CSR policy aims at creating a sustainable environment through its activities forcommunity and environment.

As per Companies Act 2013 a budgetary allocation of 2% of the net profitmade during three immediately preceding financial years has been done in the financialyear 2015-16 for CSR activities.

Education: Extensive interventions were made by the way of adopting 100 EkalVidyalayas of Dibrugarh District in Assam and 25 Vidyalayas in Odisha under the 'OneTeacher School' program. Educational programmes are being supported in schools ofUttarakhand and slums of Delhi/NCR. Construction of classrooms and toilets (for girls) atCuddalore and set up of Digital Library for children in rural areas of Andhra Pradesh wereundertaken. Projects like construction of auditorium in Ongole Prakasm district AndhraPradesh compound wall of school in Thiruvottiyur Chennai are under implementation.

Health Care: Four Mega health camps were held for the needy in DibrugarhMangalore Vadodra and Rawatbhata. Projects such as 30 health checkup camps for poor inDelhi/NCR installation of medical equipment for slums dwellers of Delhi and MobileMedical Care Units for affording health care to needy villagers in remote Odisha are inprogress.

Drinking Water/Sanitation: EIL supported the construction of sanitation facilitiesin schools of Assam Bihar Odisha and Tamil Nadu under Swachh Vidyalaya Project.

Installation of RO plants in six locations at Kakinada in Andhra Pradesh andconstruction of 20 RO Plants in Dharwad District Karnataka are in progress.

Rural Electrification: EIL supported installation of two Units of 40 KwP SolarPhoto Voltaic Power Plants on community participation basis one each at Pipcha and Pigmoin Zanskar subdivision Kargil district Jammu and Kashmir. LED based solar publiclighting system and solar street lights were installed in Mizoram Odisha and UttarPradesh. Installation of Solar Power Plant at Ramakrishna Ashram New Delhi is inprogress.

Environment Protection/Sustainability: EIL supported the social outreach programmeof Ladakh Region and installation of environment friendly green cremation system in NewDelhi.

Women Empowerment: EIL is supporting skill training for

underprivileged women in dress making and embroidery in villages around Kota. EIL isalso facilitating livelihood training in cottage industry and basic IT skills for 5000women of backward sections of the society in Delhi besides conducting a functionalliteracy programme for economic empowerment of 120 tribal women of Bolangir DistrictOdisha

Upliftment of underprivileged: Health Care equipment was distributed to speciallyabled old and destitute in New Delhi. Assistive aids and appliances were distributed topoor and needy with disabilities in Odisha and Assam. A lift was installed at an old agehome in New Delhi. EIL is also supporting the construction of first floor of an old agehome for the blind in New Delhi and providing 'Multi-Facility Health Package' fordestitute people. 10 Camps for distribution of assistive aids and appliances to PwDs areunderway.

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 skilldevelopment of 40 candidates belonging to SC ST OBC and BPL categories at BharuchGujarat and special placement linked skill development training for various trades likeIT/ITES Hospitality Retail

Supervisory Garment etc for youth in Manali and Siruseri area in Tamil Nadu wassupported by EIL. Skill development training is also being extended to youth at Bhopal andFaridabad.

Swachh Bharat Abhiyan

Swachh Bharat Abhiyan is a transformational initiative launched by the Hon'ble PrimeMinister Shri Narendra Modi. Your Company has eagerly responded to the Hon'ble PrimeMinister's clarion call for a Swachh Bharat and undertaken various activities during theyear :

Swachh Vidyalaya Program

To help provide the basic amenity of safe and clean toilets to a large segment of theIndian population esp. the women EIL adopted 509 school toilets in the states of BiharOdisha Tamil Nadu and Assam for construction and repair. Separate toilets were plannedfor girls and boys in schools some of which are located in very remote areas. With activeinvolvement of the local state and central govt. construction of all toilets wasachieved before schedule.

Shramdan

EIL officers have been participating enthusiastically in cleanliness drives that areorganized on a regular basis in and around the Head Office adjoining traffic islands andvarious site premises.

Awareness Campaigns/Social Media

Photographs news items and articles on various activities relating to Swachh BharatAbhiyan have been uploaded/published regularly on the Corporate Website IntranetFacebook Twitter Company Journals etc.

The Unaudited Financial Results of EIL for most of the Quarters were designed on thetheme of "Swachh Bharat".

To increase public awareness about the Swachh Bharat Abhiyaan an outdoor advertisementhas been on display since the last year at a bus queue shelter in Bhikaiji Cama Placewhich caters to the high volume traffic passing through the busy Ring road. A front-litsignage (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/weeklyat all EIL offices. Detailed Reports are received from site In-charges via EIL's FieldPersonnel 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 conversionfacility as a part of Swachh Bharat initiatives being undertaken under the aegis ofMoP&NG. Active discussions and strategies are underway for its execution.

In addition to the above CSR highlights a report on CSR activities as per theprovisions 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 PrimeMinister aimed at reviving and revitalizing the manufacturing sector in the country. Aspart of the "Make In India" campaign your Company has been pursuing severalinitiatives:

• 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 researchin order to promote indigenous technology

• Local skill development initiatives and enablers.

Your Company is piloting the midstream sectors for Make In India initiative underMoP&NG and is a member of the Steering Committee set up for the purpose. To thiseffect regular vendor meets are being organized by EIL for interaction with the specificdomain based industries and online vendor empanelment processes. Towards the Make In Indiacampaign apart from regular vendor meets two dedicated workshops were also organizedwith select domestic and overseas stakeholders in Mumbai and Delhi for sensitizing themanufacturing sector to various policy initiatives being contemplated by the Govt. ofIndia and Oil & Gas sector.

EIL has been actively engaged with MoP&NG and other Oil & Gas sectororganizations for this initiative through participation in several stakeholder meets andcontributing to various draft policy formulations such as Purchase Preference Policy whichwould be mandated under the ambit of Make In India.

Official Language

To propagate and enhance the usage of Official Language in communication variousinitiatives like facilitation of Regular Classes and Correspondence Courses Hindiworkshops and IT intervention facilitating ease of use were undertaken.

Rajbhasha Vibhag organized 'Poster' and 'Hindi Kavita Path' competition for children ofEIL employees during the Pakhwada Celebration.

Official Language inspections were conducted by the Committee of Parliament on OfficialLanguage and Department of Official Language Ministry of Home Affairs. Rajbhasha Vibhagalso 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-4Project BPCL Refinery Mumbai.

• "Outstanding Concrete Structure in Delhi NCR for the year 2014" Awardby 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 ofPetroleum & Natural Gas Govt. of India.

• National Awards for Excellence in CSR & Sustainability by "WorldFederation of CSR Professionals" in the category of "Best Overall Excellence inCSR".

• Award for Most Innovative use of Training & Development as HR initiative forOD by World HR Congress.

• Awards in the categories of "Organization with Innovative HRPractices" and "Best Corporate Social Responsibility Practices" by AsiaPacific 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 SinghDirector (Finance) EIL by Chartered Institute of Management Accountants (CIMA).

• Delhi Management Association's 'Prashasti Samman'- National Award for Excellenceto 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. Firozeformer GM (Corporate Affairs and CSR).

• "Women of Excellence Awards 2015" by IPE to Ms. Indrani Krishnan andMs. 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 settingup a Urea and an Ammonia plant at Ramagundam in Karimnagar district of Telengana. The JVwill 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 inEPCM mode. The project completion schedule is challenging for EIL with a time line of 36months for commissioning from the technology award date. NFL shall provide expertise foroperation 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 executingconsultancy projects in City Gas Distribution CNG Oil Gas and Refinery sectors. Theprospects of the JVC do not appear to be good and with the fall in the commodity pricesespecially Oil the possibility of securing orders is virtually nil. The shareholders ofJVC therefore decided to dissolve the JVC with a view to arrest further erosion ofcapital.

Subsidiary Companies

Certification Engineers International Limited (CEIL)

CEIL a wholly owned subsidiary of EIL continued to provide Certification as well asThird Party Inspection (TPI) services to various clients. During the year CEIL secured anumber of assignments from ONGC VMSS RINL GSPL BPCL Reliance Industries Ltd. andvarious State Governments Like TEDA VMSS Rajasthan Housing Board and others notableamong these being:

• ONGC- Certification Services for Mumbai High Daman Development Project &C-26 Pipeline and TPI services for Sagar Samrat Conversion Project Additional Developmentof 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 clientslike IOCL MDL DRDO Afcon Infrastructure Ltd. Jindal Saw Ltd. ERDMP & statutoryaudit assignments from GAIL IOCL Cairn India Ltd. etc.

The Board of Directors of the Company has recommended for the financial year 2015-16 afinal dividend of Rs 300/- per share (of face value of Rs 100/- per share) in addition toRs 200/- per share interim dividend already paid during the year. With this the totaldividend for the financial year 2015-16 works out to Rs 500/- per share. Payment of finaldividend is however subject to approval of shareholders in the ensuing Annual GeneralMeeting of the Company. The dividend if approved and declared in the forthcoming AnnualGeneral Meeting would result into total dividend outflow of Rs 500.00 Lakhs and dividenddistribution 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 theMalaysian Companies Act 1965. EILAP was not able to secure business because of mandatoryBhoomiputra regulations of the Government of Malaysia. The JV was closed in the FY2015-16.

Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of SEBIRegulations and DPE Guidelines in this regard. The Board of Directors support the broadprinciples of Corporate Governance. In addition to the basic issues EIL Board lays strongemphasis on transparency accountability and integrity. As required under SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 and DPE Guidelines on CorporateGovernance the Report on Corporate Governance together with the Auditors' Certificate oncompliance of conditions of Corporate Governance along with the Management's Reply on thecomments 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 aregiven in the Corporate Governance Report annexed to this Report which forms part of theAnnual Report. The intervening gap between any two meetings was within the periodprescribed under Companies Act 2013 SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and DPE Guidelines on Corporate Governance. For furtherdetails regarding number of meetings of the Board and its committees please referCorporate Governance Report annexed to this Report.

Composition of Audit Committee

The recommendations made by the Audit Committee during the year were accepted by theBoard. The other details of Audit Committee like composition terms of reference meetingsheld 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 underSection 149(7) of the Companies Act 2013 that he meets the criteria of independence laiddown in Section 149(6) of the Companies Act 2013 SEBI (Listing Obligations andDisclosure 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 whichinter-alia include the various familiarisation programmes in respect of their rolesrights responsibilities in the company nature of the industry in the company operatesbusiness model of the company etc. Further the same is also taken care during the variousstrategy meets of the Company and different presentations in the Board/Committee meetingson the statutory Laws. The details of such familiarisation programmes/Training Policy havealso 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 142015 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 asDirector (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 datedJanuary 2 2016. Shri Umesh Chandra Pandey Shri Vikas Khushalrao Deshpande and Dr.(Prof.) Mukesh Khare were appointed as Additional Directors (Non-official ParttimeIndependent) w.e.f. November 20 2015 and Mrs. Arusha Vasudev was appointed as AdditionalDirector (Non-official Part-time Independent) w.e.f. December 15 2015 in terms ofMinistry 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 ShriRam Singh Director (Finance) and Shri Ashwani Soni Director (Projects) would retire byrotation at the ensuing Annual General Meeting and being eligible offer themselves forreappointment. In accordance with the provisions of the Companies Act 2013 Shri UmeshChandra Pandey Shri Vikas Khushalrao Deshpande Dr. (Prof.) Mukesh Khare and Mrs. ArushaVasudev who were appointed as Additional Directors

(Non-official Part-time Independent) after the date of last Directors' report shallvacate their office at the ensuing Annual General Meeting. Necessary notices have beenreceived from them under section 160 of the Companies Act 2013 proposing theircandidature for appointment. The same has also been given on the website of the Company athttp://engineersindia. com/corporate-governance/m-160. The Board recommends theirappointment. Brief resume of the Directors seeking appointment/ reappointment togetherwith the nature of their expertise in specific functional areas disclosure ofrelationships between Directors inter-se names of companies in which they holdDirectorships and the membership/chairmanship of Committees of the Board along with theirshareholding in the Company etc. as stipulated under SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 DPE Guidelines on Corporate Governance andother statutory provisions are given in the Annexure to Notice of 51st AnnualGeneral Meeting.

• Retirements

After the date of last Directors' Report i.e. July 9 2015 Dr. Archana S. MathurDirector (Government Nominee) ceased to be Director of the Company w.e.f. 28thOctober 2015. Ms. Veena Sawarup Director (HR) ceased to be Director of the Companyw.e.f. 1st July 2016 due to her retirement on attaining the age ofsuperannution on 30th June 2016. The Board placed on record its sincereappreciation 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 additionalcharge of the Post of Director (Commercial) for a period of 3 months w.e.f. 1.06.2015 to31.08.2015 or till the appointment of regular incumbent to the post or until furtherorders whichever is the earliest vide Ministry of Petroleum & Natural Gas Governmentof India letter no. C-31018/3/2015- CA/FTS:38389 dated 25.06.2015 which has further beenextended twice and Shri Sanjay Gupta continues to hold the same.

Secretarial Auditor

M/s Agarwal S. & Associates Practicing Company Secretaries was appointed toconduct the Secretarial Audit of the Company for the financial year 2015-16 as requiredunder Section 204 of the Companies Act 2013 and Rules thereunder. The Secretarial AuditReport for the financial year 2015-16 along with the Management's Reply on the comments ofSecretarial Auditor is annexed to this Report.

Vigil Mechanism/Whistle Blower Policy

The Company has formed the Whistle Blower Policy/Vigil Mechanism and no personnel havebeen denied access to the Audit Committee. The same has also been given on the website ofthe 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 GovernanceReport which is annexed to this Report. The same has also been given on the website of theCompany 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. TheCompany has paid Listing fees for the Financial Year 2015-16 to the above Stock Exchangesin time.

Nomination and Remuneration Committee

EIL is a Public Sector Undertaking (Government Company) and the appointment ofDirectors both Executive and Non-Executive are made by the Government of India and arebeing paid remuneration as per the terms of their appointment. The Company has aNomination and Remuneration Committee and detailed disclosure in this regard has beengiven 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 ofDirectors 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 theIndependent 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 theCompany has formulated a Policy on materiality of Related Party Transactions and also ondealing with Related Party Transactions. The same has been posted on the website of theCompany at http://engineersindia.com/corporate-governance/m-160. The Company gives thedisclosure regarding material transactions with related parties on quarterly basis alongwith 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 ofcontracts or arrangements with related parties as referred in section 188 (1) of theCompanies Act 2013 is annexed to this report. During the year there were no materialRPTs. Further suitable disclosure as required by the Accounting Standards (AS18) has beengiven in the Notes to the Financial Statements.

Details of Loans/Investments/Guarantees

In compliance with the provisions of the Companies Act 2013 the details ofinvestments made and loans/guarantees provided as on 31.03.2016 are given in therespective Notes to the financial statements.

Extract of Annual Return

In accordance with Section 134(3)(a) of the Companies Act 2013 an extract of theannual 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 ofcost audit for the Company in terms of amended Companies (Cost Records and Audit) Rules.

Conservation of Energy Research and Development Technology Absorption ForeignExchange Earnings and Outgo

As the Company operations do not involve any manufacturing or processing activitiesthe particulars as per the Companies (Disclosure of Particulars in the Report of the Boardof Directors) Rules 1988 regarding conservation of energy and technology absorption arenot applicable. The particulars regarding expenditure and earnings in foreign exchange aregiven 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 ortribunals 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 eitherthese were not applicable or there were no transactions on these items during thefinancial 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 orotherwise.

iii. Issue of shares (including sweat equity shares) to employees of the Company underany scheme.

iv. Details regarding receipt of remuneration or commission by the Managing Director orthe 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 Companyduring the year 2015-16 whereas the companies which have become or ceased to be jointventures or associate companies during the year are NIL.

During the financial year 2015-16 there were no cases filed pursuant to the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013.

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

Code of Conduct

EIL has formulated a Code of Business Conduct and Ethics for Board of Directors andSenior Management Personnel. The confirmation of compliance of the same is obtained fromall concerned on annual basis. All Board Members and Senior Management Personnel havegiven their confirmation of compliance for the year under review. A declaration dulysigned by C&MD is given under para 2(e) of the Report on Corporate Governance annexedto this Report. The Code of Business Conduct and Ethics for Board of Directors and SeniorManagement Personnel are given on the website of the Company athttp://engineersindia.com/corporate-governance/m-160.

Right to Information

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

EIL being a responsible public sector undertaking has displayed essential informationon its website under the head RTI. The management has notified CPIO and the FirstAppellate Authority (FAA) in compliance with the requirements of the RTI Act. BetweenApril 01 2015 and March 31 2016 a total of 127 (one hundred twenty seven) applicationswere received by the Company and all of them were disposed off by providing requisiteinformation as per rules. Apart from RTI applications the Company also received appealsagainst the decision of CPIO which too were duly attended to and appropriately disposedoff 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 theapplicable accounting standards read with requirements set out under Schedule III to theCompanies Act have been followed and there are no material departures from the same;

b) the Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at March 31 2016 and of the profit ofthe Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets 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 theCompany and that such internal financial controls are adequate and are operatingeffectively; and

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

Auditors

M/s Arun K Agarwal & Associates Chartered Accountants were appointed as Auditorsof the Company for the financial year 2015-16 by the Office of Comptroller & AuditorGeneral of India.

Bankers

Bankers of the Company include State Bank of India Indian Overseas Bank State Bank ofTravancore Vijaya Bank Corporation Bank Bank of Baroda Punjab National Bank UnionBank of India HDFC Bank ICICI Bank Indian Bank Bank of India Oriental Bank ofCommerce 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 madethereunder Government Companies are exempted from inclusion of the statement ofparticulars of employees. The information has therefore not been included as part of theDirectors' Report. However the same information is open for inspection at the registeredoffice of the Company on all working days between 10.30 a.m. to 12.30 p.m. prior to theAnnual General Meeting.

Acknowledgement

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

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

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

Your Directors wish to convey their appreciation to all employees for the valuableservices and cooperation extended by them and are confident that they will continue tocontribute 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