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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
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VOLUME 45449
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P/E 17.04
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OPEN 72.45
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VOLUME 45449
52-Week high 93.60
52-Week low 67.65
P/E 17.04
Mkt Cap.(Rs cr) 4,033
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Engineers India Ltd. (ENGINERSIN) - Director Report

Company director report

To

The Shareholders Engineers India Limited

Dear Shareholders

Directors of your Company have great pleasure in presenting the 55th AnnualReport for the Financial Year ended March 31 2020 along with Audited Standalone andConsolidated Financial Statements of Accounts the Auditors' Report and Review of theAccounts by the Comptroller & Auditor General of India.

1. 2019-20 in Retrospect

Your Company sustained its good performance during FY 2019-20. 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

Description Actual 2019-20 Actual 2018-19
A. INCOME
i) Consultancy & Engineering Contracts 156531 134947
ii) Turnkey Contracts 163774 109487
iii) Other Income 25804 22508
TOTAL INCOME 346109 266942
B. EXPENDITURE
i) Cost of rendering services 276175 207955
ii) Depreciation & Amortization 2383 2236
Total 278558 210191
C. PROFIT BEFORE TAX (A-B) 67551 56751
D. Provision for Current tax 21936 19470
E. Provision for Deferred Tax 2640 871
F. Earlier Year Tax Adjustments Short/(Excess) (49) (597)
G. PROFIT FOR THE YEAR (C-D-E-F) 43024 37007
H OTHER COMPREHENSIVE INCOME (3057) (158)
I. TOTAL COMPREHENSIVE INCOME (G+H) 39967 36849

Turnover for FY 2019-20 has been the highest ever turnover of the Company after FY2011-12.

Segment wise Performance

Consultancy & Engineering Projects Year ended 31.03.2020 Year ended 31.03.2019
Segment Revenue
Consultancy & Engineering Projects 156531 134947
Turnkey Projects 163774 109487
Total 320305 244434

 

Consultancy & Engineering Projects Year ended 31.03.2020 Year ended 31.03.2019
Segment Profit From Operations
Consultancy & Engineering Projects 49892 38938
Turnkey Projects 6545 6279
Total(A) 56437 45217
Interest 174 123
Other un-allocable expenditure* 14516 10851
Total (B) 14690 10974
Other Income(C) 25804 22508
Profit Before Tax(A-B+C) 67551 56751
Income Tax Expense 24527 19744
Profit for the year 43024 37007
Capital Employed** 234546 227585

* Financial year 2019-20 includes expenditure on Oil and Gas exploration blocksincluding dry well written off and impairment amounting to Rs 2985 Lakhs (previous year:Rs 1794 Lakhs)

* Includes Rs 1630.10 lakhs (previous year : Nil) of accrued provident fund liabilityfor default till 31-03-2020 on account of Provident Fund Trust investment.

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

2. Dividend

The Board of Directors of your Company has recommended a final dividend of Rs 1.55/-per share (of face value of Rs 5/- per share) for the financial year 2019-20 in additionto interim dividend of Rs 3.60/- per share already paid during the year. With this thetotal dividend for the financial year 2019-20 works out to Rs 5.15/- per share amountingto Rs 325.43 Lakhs excluding dividend distribution tax on interim dividend. The payment offinal dividend is however subject to approval of the shareholders in the ensuing AnnualGeneral Meeting of the Company which shall be paid to the Members whose names appear inthe Register of Members as well as beneficial ownership position provided by NSDL/ CDSL ason 14.09.2020. It may be noted that pursuant to Finance Act 2020 dividend income will betaxable in the hands of the shareholders at prescribed rates in the Income Tax Act 1961w.e.f. 1st April 2020.

3. Transfer to Reserves

Your Company is proposing to transfer all the balance amount from retained earningsbalance of Rs 16087.14 Lakhs after adjustment of payment of proposed final dividendsubject to the approval of the shareholders in AGM to the General Reserve for the yearended 31st March 2020.

4. Disinvestment by the President of India (Promoter)

The promoter of EIL i.e. President of India acting through the Ministry of Petroleum& Natural Gas has disinvested 3159269 equity shares on 10.10.2019 to "Bharat 22ETF" through a Further Fund offer launched by ICICI Prudential Asset ManagementCompany alongwith the Government of India. Consequently the President of Indiashareholding reduced to 325404724 equity shares constituting 51.50% of the paid- upequity share capital of the Company.

5. Investors Relations

Your Company is committed to continuously improve its Corporate Governance Practicesand Policies for effectively managing its business and for protecting the interests of allStakeholders.

Your Management is responsive for ensuring that the performance of the CompanyBusiness Outlook and Growth Strategies are reported to its Shareholders InvestmentCommunity Concerned Regulators and Public on a regular basis.

To achieve the above objective our Investor Relations (IR) Cell acts as a nodalintermediary with Investment Community for disseminating vital information pertaining tothe Company in timely accurate and consistent manner. IR Cell is responsible foreffectively utilizing channels of communication like press releases websitesparticipation in conferences analyst meets besides having one-to-one meetings forsharing crucial Company information such as financial results dividend policyshareholding pattern investor presentations and material news updates. Senior Managementis actively engaged in annual meets and conferences for facilitating the FinancialCommunity to comprehend Company's business model and to share with them new businessareas strategic outlook and direction coupled with growth plans. Earning calls aregenerally held after the declaration of Quarterly/ Annual Results so that stakeholders areupdated about significant developments of the preceding quarter. Major events milestonesand plans are shared within stipulated timelines with Stock Exchanges to keep theminformed on the Company's performance and future outlook.

Your Company remains committed to creation of an open and transparent environment forreaching out to existing and potential Investors and other Stakeholders therebyinstilling trust and confidence leading to a harmonious relationship with the Investors.

6. Management Discussion & Analysis

The Management Discussion & Analysis (MDA) Report as required under CorporateGovernance guidelines has also been incorporated as a separate section forming a part ofthe Annual Report.

7. Business Responsibility Report

The Business Responsibility Report covering initiatives taken with environmentalsocial and governance perspective has been prepared in accordance with the directives ofSEBI and forms a part of the Annual Report.

8. Consultancy Assignments (Domestic)

8.1 Upstream Oil and Gas

During the year Your Company continued to make considerable progress in Offshore Oil& Gas and LNG sectors. The following consultancy assignments were successfullycompleted during the year:

• Consultancy services for 10 wellhead platforms under Life Extension of WellheadPlatform (LEWP-3) Western Offshore of Oil and Natural Gas Corporation (ONGC).

• PMC services for Dahej Expansion Phase-IIIB1 project at Dahej LNG TerminalGujarat for Re-gasification facilities for Petronet LNG Limited.

The following assignments are currently under execution:

• Construction of Fifth Oil Berth at Jawahar Dweep Island of Mumbai Port TrustMaharashtra.

• Consultancy Services for Life Extension of Wellhead Platform (LEWP) 1 2 and 4Western Offshore of ONGC.

• Study/ Demo Unit Design for Utilization of Waste Heat from produced water forheating well fluid in ONGC Group Gathering Station (GGS) IV North Kadi Mehsana Gujarat.

During the year your Company secured the following new orders against stiffcompetition and work is in progress for these assignments:

• Technical Feasibility Study for successful Operation of LP Compressor at ARPProject Assam of ONGC.

• Pre-Feasibility Study for upcoming Naphtha and HFHSD handling facility forstorage and transportation of Uran Naphtha to Hazira of ONGC.

• FEED for 2 nos. LNG storage tanks for Petronet LNG Dahej Gujarat. FEED is inadvance stage of completion.

• DFR for Single Point Mooring (SPM) at Padur for Indian Strategic PetroleumReserves Limited (ISPRL).

• Consultancy services for design engineering and technical studies supervisionand assistance for crude handling facilities project in Gulf of Kutch off VadinarGujarat.

• PMC for HSEPL's LNG import storage and re-gasification terminal with capacityof 5 MMTPA with potential expansion to 10 MMTPA capacity at village Chhara Gujarat.

8.2 Pipelines

Your Company has established an outstanding track record in design engineering andexecution of cross-country pipelines for transportation of crude oil refined petroleumproducts natural gas and LPG across diverse geographies and demanding terrains indomestic as well as international markets. EIL scope of services encompasses the entireproject life cycle ranging from Detailed Feasibility Reports EPCM (EngineeringProcurement and Construction Supervision) services PMC (Project Management Consultancy)services Integrity Studies etc. By virtue of EIL's skills in executing world classpipeline projects EIL is the most sought after technical consultant for major clientele.

Considering Government of India's (GOI) thrust on National Gas Grids EIL is bestplaced to exploit the opportunities in pipeline sector which are likely to unfold in thenext five years. M/s Numaligarh Refinery Limited has reposed their confidence in EIL'scapabilities by awarding EPCM Services for Crude Oil Terminal (COT) at Paradip 28" x1400 km Paradip - Numaligarh Crude Oil Pipeline (PNCPL) and 24" x 610 km NRL -Siliguri Product Pipeline (NSPPL). The proposed COT PNCPL and NSPPL project involveslaying of pipelines of cumulative length around 2100 km across Odisha Jharkhand WestBengal and Assam. Similarly BPCL has also awarded the assignment of EPCM Services forAlternate Water Supply Scheme (AWSS) of BPCL Kochi Refinery (Pipeline 32"x 26 km).

Your Company had successfully completed the following pipeline projects in thisfinancial year:

• PMC services for 24"/18"/8"/4" x 243 km Replacement of KGBasin Pipeline for GAIL.

• EPCM services for 18" x 234 km Palanpur-Vadodara Multiproduct Pipeline andMundra-Delhi Pipeline Capacity Expansion from 5.0 MMTPA to 8.0 MMTPA of HPCL.

• Engineering and Consultancy services for 18" x 362 Km

Khunchanpalli-Ramagundam Pipeline project of GSPL India Transco Limited in AndhraPradesh.

• Engineering and Procurement Services for Mundra-Bathinda Pipeline CapacityExpansion from 9 MMTPA to 11.25 MMTPA of HPCL-Mittal Pipeline Ltd.

• DFR for various crude/multi-product/Propylene Pipeline from BPCL Mumbai Refineryto Rasayani Petrochemical Complex and Propane Pipeline from BPCL Uran to RasayaniPetrochemical Complex Dist. Raigad for BPCL.

• DFR for Additional Crude Unloading Storage & Transportation Facilities atMundra Gujarat of HMPL.

Your Company is executing following major pipeline projects for

various customers which are in different stages of progress.

• DFR QRA/RRA for Revamp of LPG Import Facility at Uran for BPCL.

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

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

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

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

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

• PMC services for 36" x 357 km Vijaipur-Auraiya Natural Gas Pipeline ofGAIL.

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

• PMC services for new selected C2-C3 product injectionscheme in HVJ pipeline at GAIL Vijaipur.

• EPCM services for laying of 16" x 4.2 km pipeline from H2SO4Tank of IOCL Haldia Refinery to existing IOCL jetty.

• PMC services for HRRL Onshore Pipeline Project.

• EPCM services for 10" x 131 km HSD India-Bangladesh Friendship PipelineProject (IBFPL) from Siliguri India to Parbatipur Bangladesh.

• PMC services for Storage Augmentation of Light Hydrocarbon (LHC) Products atGAIL Vijaipur.

• PMC services for Sustained Evacuation of Natural Gas from ONGC Gandhar Fieldsinto High Pressure HVJ-DVPL and DVPL Upgradation Natural Gas Pipeline network.

• PMC Services for Balance Jobs of Dabhol LNG Terminal of M/s. Konkan LNG Pvt.Ltd.

The following major projects were secured by the Company in the Pipeline Segment ofhydrocarbon value chain during the year and are in progress:

• DFR for Naharkatiya-Barauni Crude Oil Pipeline Phase-3 of OIL.

• DFR for upgradation of Numaligarh-Siliguri Product Pipeline of OIL.

• PMC services for Installation of Gas Turbine Compressor (GTC) at GAIL GandharGujarat.

• EPCM services for Western Gateway Project Early Production facilities of WCPL.

8.3 Petroleum Refining

Your Company has carved a niche as one of the leading engineering consultancy serviceproviders to the refinery sector in India having its footprints in 20 operatingrefineries including 10 grass root refineries in the country DieselHydro-desulphurization projects Fuel Specification Upgradation Projects andrevamp/modernization projects for most of the Oil & Gas majors.

The following Refinery Projects/Assignments were successfully completed during theyear:

• PFR for West Coast Refinery of RRPCL (Ratnagiri Refinery & PetrochemicalsCorporation Limited).

• DFR Licensor Selection and BDEP for few process units for Cauvery BasinRefinery project of Chennai Petroleum Corporation Limited (CPCL) at Nagapattinam TamilNadu.

• Distillate Yield Improvement Project at IOCL Haldia Refinery West Bengal.

• EPCM services for 0.7 MMTPA DHDT and supporting facilities project at NumaligarhRefinery of NRL Assam.

• PMC and EPCM services for Gasoline Hydrotreating Unit Project at BPCL MumbaiRefinery Maharashtra to produce BS-VI quality Gasoline.

• Detailed Design Consultancy services for MS Block Revamp Project of M/s NRLNumaligarh Assam.

• BS-VI up-gradation projects of IOCL Mathura Uttar Pradesh and Digboi AssamRefineries.

• Health Assessment Engineering Procurement Assistance for Revival ofHydrocracker Unit at BPCL Mumbai Refinery Maharashtra.

• Preparation of Feasibility Study for capacity expansion of BORL's Bina RefineryMadhya Pradesh from 7.8 MMTPA to 15.0 MMTPA with integrated petrochemical complex.

• License BDEP and other related services for new 0.235 MMTPA NHT Unit and revampof existing DHDT Unit at Bongaigaon Refinery IOCL.

• Water consumption studies of all IOCL BPCL HPCL and CPCL refineries.

During the year the Company achieved significant progress in the following projectssome of which are under final stage of completion:

• EPCM Services for BS-VI Fuel Quality Project of HMEL Bathinda Refinery Punjabconsisting of a New DHDT (1.9 MMTPA) HGU & Offsite.

• EPCM services for LPG Import facility of BPCL at Haldia West Bengal.

• MR-II Tankages project of HPCL at Mumbai Refinery Maharashtra.

• Mumbai Refinery Expansion Project (MREP) of HPCL at Mumbai to produce upgradedBS-VI fuels along with expansion of Plant capacity by 2.5 MMTPA.

• Vizag Refinery Modernization Project of HPCL Visakhapatnam.

• BDEP of INDJET Unit (ATF Hydro Treating Process) of IOCL Bihar under R&Dinitiative of EIL & IOCL.

• The country has achieved supply of BS-VI fuel from April 2020 as variousrefiners upgraded their facilities in the country to produce the same. Work on some of theunits not directly related to BS-VI fuel production is nearing completion.

• EPCM services for BS-VI project & associated facilities at MRPL RefineryMangalore Karnataka to upgrade their products to BS- VI standards.

• PMC and EPCM services for BS-VI Project at BPCL Kochi Refinery Kochi Keralais in advance stage.

• EPCM services for Kerosene Hydro-Desulphurization unit at BORL Bina RefineryMadhya Pradesh.

• Feasibility Report of West Coast Refinery of RRPCL for site at Roha Maharashtranear West Coast based on ICC configuration.

• EPCM Services for Elevated Hot LPG Flare System at Bina Despatch Terminal (BDT)Bina of BPCL.

The following projects were secured during the year and work is in progress:

• Environment Impact Assessment (EIA) Study & Rapid Risk Assessment (RRA)Study for Petro resid fluid catalytic cracker unit (PRFCC) at Mumbai Refinery (MR)Polypropylene Unit at Rasayani and Pipelines from MR to Rasayani for BPCL.

• Phase-I PMC services for PRFCC along with Sulphur Recovery Unit (SRU) associatedfacilities including Utility & Offsite at Mumbai Refinery and Polypropylene Unit (PPU)along with associated facilities including Utility & Offsite at Rasayani for BPCL.

• Consultancy for overall project management and EPCM services for capacityexpansion of IOCL Panipat Refinery Haryana from 15 MMTPA to 25 MMTPA (P-25) project.

• Detailed Feasibility Report for Marketing Terminal at Barmer Rajasthan of HPCL.

• Lender's Independent Engineer services for State Bank of India (SBI) for ProjectReview & Assessment for financing of HRRL's 9.0 MMTPA Refinery cum Petrochemicalcomplex.

• Adequacy check and Basic Engineering for DHDT Naptha splitter revamp at HMELBathinda Punjab.

• Feasibility Study for Capacity Expansion of IOCL's Paradeep Refinery Odishafrom 15.0 MMTPA to 25.0 MMTPA.

• EIA and RRA for Petchem Addition and Capacity Expansion (PACE) Project of MRPLKarnataka.

8.4 Petrochemicals

Your Company has been involved in the establishment of a large number of megapetrochemical complexes in India. The Company has provided Engineering Consultancyservices for various processes including Gas based/ Naphtha based cracker complexes andAromatic plants comprising Naphtha splitters pre-treaters/ reformers Benzene-Tolueneextraction units pyrolysis gasoline hydrogenation units Xylene fractionation andIsomerization units including overall integration and optimization of such complexes.

The following Petrochemical assignments were successfully completed during the year:

• Study for installation of Flare Recovery Unit Lower Explosive Limit (LEL)detector Adequacy check Improvement of Utility System at GAIL Vijaipur Madhya Pradesh.

• Evaluation of suitability of new site for re-locating Ratnagiri Refinery andPetrochemicals Limited Maharashtra.

• Process development and BDEP preparation of Carbonation Process for AlkalineWaste water at GAIL Pata Uttar Pradesh.

Significant progress has been made on the following petrochemical projects:

• Propylene Derivative Petrochemical Plant (PDPP) of BPCL Kochi Refinery Keralacomprising Acrylic Acid Unit Oxo-Alcohol Unit and Acrylates Unit.

• LEPCM services for 500 TPD Methanol Project and Associated Facilities for AssamPetrochemicals Limited Namrup.

• Licensor Selection and Pre-project activity for Andhra Pradesh Petrochemicalcomplex at Kakinada for GAIL/ HPCL.

• Consultancy Services for DFR EIA/ RRA and Licensor Selection in progress forPropane Dehydrogenation (PDH)/ Polypropylene (PP) Unit at GAIL Usar in Maharashtra.

• Guru Gobind Singh Refinery (GGSR) Polymer Addition Project of HMEL at BathindaPunjab comprising EPCM services for DFCU Linear low-density polyethylene (LLDPE) HighDensity polyethylene (HDPE) (Swing) Butene- 1 HDPE & PP Units (Powder Section) andUtilities & Offsite and PMC services for HDPE & PP Units (excluding Powdersection).

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

• Setting up of Hydrogenated Pyrolysis Gasoline (HPG)- 2 Butene-1 and PressureSwing Adsorption (PSA) units in BCPL Lepetkata.

• EPCM Consultancy Services for replacement of Regenerator Column of GasSweetening Unit at GAIL Pata.

• EPCM services for 60 KTPA Polypropylene plant at Pata Petrochemical ComplexUttar Pradesh of GAIL.

• PMC Services for new STG Project of HMEL Bathinda Punjab.

8.5 Strategic Storages

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

Your Company has been awarded following assignments:

• PMC services for storage of 80000 MT of LPG in underground rock caverns atMangalore by HPCL.

• DFR & PMC for Pre-project Activities (PPA) for New SPM facility at PadurKarnataka by ISPRL.

8.6 Metallurgy

Your Company is a leading engineering consultancy service provider for non-ferrousmetallurgy having executed a large number of green field smelter and alumina refineries inIndia.

During the year following key metallurgy assignments were completed:

• Detailed Feasibility Report for mechanized production and evacuation forKurmitar Iron Ore Mines of Odisha Mining Corporation Limited.

• Study of High Rise Structures Stability for Mahan Aluminium Plant.

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

The Company achieved significant progress in following projects:

• Consultancy services for Retrofitting of HRD (High Rate Decanter) and DCW (DeepCone Washer) in Stream-1 Stream-2 & Stream-3 of NALCO.

• Consultancy services for 2nd Raw Water Intake Pump House and Pipelineat Damanjodi of NALCO.

• Consultancy services for procurement and installation of Reclaimer andAssociated Facilities in NALCO's Alumina Refinery at Damanjodi Odisha.

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

The following assignments were secured by the Company during the year and are inprogress.

• Consultancy services and construction management for addition of 11thRectifier Group (Swing Group) between Potlines 3 & 4 of Aluminium Smelter at NALCOAngul.

• Consultancy services for assessment of land requirement for common corridorproject at Gopalpur for Industrial Promotion & Investment Corporation of Odisha.

• Consultancy services for preparation of Feasibility Report of Jhamarkotra RockPhosphate Mines Udaipur for Rajasthan State Mines & Minerals Ltd.

8.7 Infrastructure

Your Company has made a strong track record in Infrastructure sector by providing awide spectrum of services such as Project Management Project Management on DepositoryBasis Third Party Inspection (TPI) Quality Assurance Independent Engineer and Lender'sEngineer services Project Appraisal and Project Execution Services in some of theimportant projects of key clientele in the sector.

During the year following major assignments were completed:

• PMC Services for Development of IIT Patna Campus Bihar.

• PMC Services for establishing Cold Storage Facility at Guntur Andhra Pradesh.

• Consultancy Services for Review of Tender Documents for Construction of PLL'sOffice Building Complex at Dwarka Sector-14 Delhi.

• Consultancy services for Third Party assessment for establishment of Data Centreof Dept. of Information Technology & Communication (DoIT&C) Rajasthan.

Upholding our commitments to customers your Company continued to achieve substantialprogress in following projects:

• PMC services for rejuvenation of 9 cities of Odisha under AMRUT Scheme (AtalMission for Rejuvenation and Urban Transformation).

• PMC Services for establishment of main campus of Central University of Punjab atBathinda.

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

• PMC Services for Construction of NCR Biotech Science Cluster Phase-2 works atFaridabad Haryana.

• Engineering PMC for Development of Tourist Infrastructure Facilities in andaround Khajuraho Group of Temples Madhya Pradesh.

• EPCM Services for Development of Infrastructure Facilities at Khaje khalan GhatPatna Sahib Patna Bihar.

• PMC Services for New Campus Design & Development of IIM Nagpur at MIHAN.

• Independent Engineering Services for Development and Expansion of IGI Airport atDelhi for AAI.

• Independent Engineer for Development and Construction of Green FieldInternational Airport at Mopa Goa.

• PMC Services for Residential Complex of UIDAI in Delhi.

• Supervision and PMC services for High Speed Rail Terminal Project at Sabarmatiof National High Speed Rail Corporation Limited Gujarat.

• Engineering review Procurement & Construction Management Services forPhase-II of HP Green R&D centre at Bengaluru of HPCL Karnataka.

The Company's footprints in Infrastructure sector received an impetus with securing ofthe following assignments during the year:

• Owner's Engineers services for construction of PLL's office Building at DwarkaSector-14 Delhi.

• Third Party Auditor Services for Construction of various Institutional BuildingInfrastructure Facilities in Rajasthan.

• Consultancy Services for preparation of Detailed Project Report for developmentof Barunei Paika Bidroha Smruti Project at Khurdha Odisha of Indian Oil Foundation (IOF).

• PMC Services for construction of Data Centre Office Complex & ResidentialComplex of UIDAI Delhi.

• Technical assistance for Environmental Clearance of Mopa Airport Goa.

• Assessment of completion cost of assets occupied by AAI at KempegowdaInternational Airport (BIAL).

8.8 Fertilizers

Your Company is leveraging its capabilities to tap significant business opportunitiespresented by fertilizer sector in India and Overseas. As part of strategic investment inFertilizer sector EIL has taken 26% equity stakes in a JV Company M/s RamagundamFertilizers & Chemicals (RFCL) along with NFL and FClL. RFCL has been formed to pilotthe Revival of Ramagundam Fertilizer Project Telangana. EIL is executing this project onEPCM mode.

Pre-commissioning activities are in advance stage of completion.

8.9 Water and Waste Management

Your Company has the expertise to undertake a multitude of Water Treatment projectssuch as raw water intake and treatment systems Desalination plants Cooling Water plantsWater Injection plants Demineralization Plants Condensate Polishing plants etc. TheCompany has also evolved basic engineering for standard modules for municipal sewagetreatment plants as well as standalone recycle plants.

The following Water and Waste Management projects were completed during the year:

• DFR for development of treatment facilities and future pipelines for NationalGreen Tribunal.

• DPR for Development of Treatment Plant and Infrastructure facilities at JhagadiaPumping Station for Narmada Clean Tech.

Following projects are in progress and at various stages of execution:

• Entry level activities including development of Ghats and Crematoriums in UttarPradesh and Implementation of Sewerage

Infrastructure works under the Namami Gange Programme.

• Technical and Financial Audit of Infrastructure works in various Urban LocalBodies (ULB) of Punjab for Punjab Municipal Infrastructure Development Company (PMIDC).

• 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 the Interceptor Sewer Project of Delhi Jal Board (DJB) forabatement of pollution in River Yamuna.

• Consultancy Services for Techno-commercial service for Environmental FeasibilityStudy for Construction of Desalination Plant at Mori Kesarapally and Malleswaram of ONGCRajahmundry Asset Andhra Pradesh.

• EPCM Services for Effluent Treatment Plant at Tengakhat Assam for OIL.

• PMC services for Effluent Treatment Plant revamp at BPCL Mumbai Refinery.

8.10 Nuclear Power

Your Company is making promising in-roads in Nuclear power sector as well. DetailedEngineering Consultancy and Construction Supervision for setting-up Greenfield NuclearFuel Complex at Rawatbhata Kota Rajasthan is in progress.

8.11 Alternate Fuel

In the Alternate Fuels space your Company is providing EPCM services for Assam BioRefinery Project of M/s Assam Bio Refinery Pvt. Ltdthe first of its kind plant in India.Engineering Procurement for Long lead items Tendering for Utility LSTK packages/ otherworks and construction activities related to Civil/Structural & Piling works forBuilding works Tankages fabrication is in progress at site.

9. Overseas Consultancy Assignments

Your Company 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 assignments were completed:

• PMC Services for Al Dabbiya ASR Gas Development Project of ADNOC Onshore UAE.

• Design Consultancy and PMC Services for Miscellaneous Tank Farm PipingInstrumentation and Control System Inspection Repair Maintenance & Upgrade works atvarious depots of ADNOC Distribution UAE.

• Project Management Assistance (PMA) services for improvement of Fire fightingFacilities at Abu Dhabi Refinery for ADNOC Refining UAE.

• PMC Services for Hail Full Field Development Project of M/s ADOC Japan.

• DFR of 306 km White Petroleum Oil (Multiproduct) Pipeline from Chittagong toDhaka for Padma Oil Company Limited Bangladesh.

• Feasibility Study for Energy reduction & optimization at Ruwais RefineryWest of M/s ADNOC Refining.

• Detailed engineering services for DM & Distillate Water intertransfer systemfor L&M stations for Jebel Ali power station complex of M/s DEWA UAE.

• Integrity Assessment of circulation Water Tank T- 5601 of M/s ADNOC FertilizersUAE.

Various Engineering PMC Technical Support services are being provided to M/s ADNOCGas Processing UAE under the following service agreements:

• Technical Support Services Agreement (TSSA) (2018-2023) of M/s ADNOC GasProcessing UAE.

• PMC Services for Integrated small & medium sized projects (2018-21) of M/sADNOC Gas Processing UAE.

• PMC Services on Call Off Basis (2018-23) of M/s ADNOC Offshore UAE.

• Engineering Services on Call Off Basis (2018-23) of M/s ADNOC Offshore UAE.

Following overseas assignments are in progress and at various stages of execution:

• EPCM services for the prestigious Dangote Refinery and Petrochemical ProjectNigeria comprising a 650000 BPSD grass root Petroleum Refinery and 830 KTPA PetrochemicalComplex at Lekki Free Trade Zone Nigeria for Dangote Oil Refining Company (DORC). Thiswill become the largest single train refinery in the world. The Project facilities includecrude oil receipt and storage including two SPMs with associated offshore/ onshorepipelines.

• FEED for 3 MMTPA grass root refinery of Eastern Refinery Limited in Bangladeshhaving 17 units like CDU VDU SAT GAS LPG Treating Unit NHT ISOM CCR KTU DHDT HCUVBU SWS ARU SRU and H2 completed.

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

• Upper Zakum/Artificial Island facilities - Studies/Engineering Packages(package-1)- under Engineering Service Agreement (ESA).

• Lower Zakum facilities - Studies/Engineering Packages (package-1) - under ESA.

• Additional PMC/EPCM Services for new units viz. DHDTSWS &ARU in DangoteRefinery Nigeria.

The following assignments were secured by the Company during the year and are invarious stages of execution.

• PMC Services for Construction of a Crude Oil Refinery Plant in Mongolia forMongol Refinery State Owned LLC.

• FEED for Hail Oil Field Water Injection Project (WIP) ADOC Japan. FEEDcompleted along with the scope for preparation of EPC Scope of work.

• Engineering Services for Instrument Air Network Upgrade and Oily Water TreatmentPlant Upgrade Project ADNOC UAE.

• FEED for Power Supply re-arrangement of 11 KV distribution network fed fromsubstation-0 by constructing new 132/33/11 KV substation at Ruwais Refinery East (RRE)ADNOC UAE.

• FEED Services for Automatic Overfilling Protection and flammable gas Detectorsfor HC tanks in ADNOC Refining locations-ADNOC UAE.

10. Turnkey Projects

Your Company's turnkey project portfolio consists of projects executed on LSTK mode oron the Rs Open Book Estimate (OBE)' basis.

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

• Vizag Refinery Modernization Project Offsite.

• BS-VI Project at Manali Refinery of CPCL.

• Revamping of Slug Catcher at Uran Plant of ONGC in Maharashtra.

• Execution of Residual Utilities and Offsites for Rajasthan Refinery ProjectHRRL on OBE basis. Construction of Offsite Piperacks and buildings are in full swing.

• SRU Revamping at ONGC Hazira Plant

• Installation of Lean Gas Compressor at Hazira Complex of ONGC

11. Performance of Divisions

11.1 Process Design & Development

The Process Design & Development Division is primarily engaged in providing designservices for grass root as well as revamp projects in the field of RefineriesPetrochemicals Oil & Gas Cross country Pipelines and LNG.

The division is also responsible for design of heat & mass transfer equipment likecolumns heat exchangers fired heaters and configuration & design of Captive Powerplant. Selection of material of construction for various applications failure analysisetc. are special services offered by the division.

The activities undertaken by the division include Configuration studies using LPmodelling techniques Preparation of Feasibility studies Technology evaluation studiesfor licensed technologies Basic design of open art units and process units licensed byEIL Conceptualisation and design of utilities & offsite facilities Residual processdesign Detail engineering follow up for open art units licensed units and U&Ofacilities FEED preparation selection of EPC contractors and PMC activities andPre-commissioning / Commissioning Plant startup assistance & Trouble shooting.

The division is also actively involved in supporting Business Development division ofthe Company in securing new business for the company from existing as well as new clientsboth in India and overseas.

11.2 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) along with improvedinformation exchange and communication systems resulting in lesser manual interfaces.Major emphasis was laid on Automation and Standardization of systems implementation ofInternal Audit observations and Monitoring and updation of specifications standards andguides.

11.2.1 Equipment

Equipment Department provides optimal design and technocommercial solutions for designengineering and procurement of various types of Rotating Static Packaged and FiredEquipments. Equipment Department through its vast database/standards/specifications/vendor lists/knowledge pool ensures procurement of energy efficientequipment with advanced technologies in compliance with latest International codes.Equipment Department has also taken strides towards implementation of "Make InIndia" policy of Govt. of India in order to boost local manufacturing of critical& bigger size equipment.

11.2.2 Electrical

Electrical Department is one of the core departments of EIL responsible for thedesign engineering and implementation of the electrical network systems for all projectsboth in domestic as well as international arena adopting latest technologies and stayingabreast with the international standards and codes.

As the existing plants get smarter with digitalisation and major focus being ondependency on National Grid Power and use of renewable energy resources the ElectricalDepartment has aligned with the latest policies. State-of-the-art Electrical ControlSystem (ECS) Substation Automation system microprocessor based Fire Alarm System andPlant Communication System are being utilised in all projects viz. Dangote HPCL-VizagHRRL and HMEL Petrochemicals. To evacuate power from grid electrical department isimplementing 400kV Gas Insulated Switchgear (GIS) in HMEL Petrochemical and 220V GIS inBPCL Kochi MSB Project. Auto Load shedding systems through ECS have been successfullyimplemented in many plants which has prevented many black-outs in plants and providedcentralised monitoring of the complete electrical network at the plant level.

Digitalisation is also seen in the field of Data Centres where Electrical Departmenthas pioneered and successfully completed Data Centre project at SBI Hyderabad. Majoremphasis is also given to renewable energy sources. Solar panels are installed in variousbuildings within the complex to harness the solar energy. The department has successfullycompleted 2MW SPV Solar Plant at HPCL Bengaluru. Electrical department has also carriedout Electrical Power Studies for various plants which include load flow studies shortcircuit studies motor start-up studies and stability studies. Cathodic Protection hasbeen another area of expertise for the department- standard specifications have beendeveloped along with project-wise activities for this field.

Electrical Department has also contributed majorly in the plant wide energy saving byuse of LED light fixtures (both indoor and outdoor) LED based High Mast systems use ofEnergy Efficient motors and transformers and usage of Variable Frequency Device (VFD).

All deliverables from the department are par excellence and are furnished with the useof renowned software viz. E-Tap Smart Plant Electrical (SP-EL) Smart Plant 3D Modelling(SP-3D) and various inhouse software.

Under the Make In India initiative of EIL Electrical Department has also activelyparticipated by carrying out frequent vendor interactions developing and enlistingindigenous vendors for various items viz. Numerical Relays Electrical Heat TracingElectrical Control system VFD Motors etc.

11.2.3 Instrumentation

Instrumentation Department is always in the fore-front of latest digital technology.State-of-the-art Distributed Digital Control Systems (DCS) and Emergency Shutdown System(ESD) incorporating alarm management asset management and gas detection CCTVs smartfield instrumentation Condition Monitoring System for advance diagnostic analysis ofRotating equipments wireless monitoring of all non- critical pumps and pump seals PlantDevelopment Model through OTS (Operator training Simulator) Virtualisation server & PCfor DCS is being implemented in on-going mega refinery and petrochemical projects likeHRRL HMEL Petrochemical VRMP HPCL PRFCC BPCL Mumbai and PDPP & MS Block of BPCLKochi Refinery. EIL is also leading in implementing IIoT (Industrial Internet of Things)for pump seal monitoring rotating equipment monitoring PSV and Flare valves leakmonitoring through acoustic sensors Cloud based simulation of plant graphics logics andtesting of DCS. Use of RFID cards for Truck identification Smart cards and Biometricverification of truck drivers in Loading Gantry Control System Optical Fibre based leakdetection system for Liquid and Gas Pipeline application are other such measures.

Instrumentation Department is contributing towards digitalization & end to end workflow integration of EIL including integration of data from smart Plant P&IDs (SP-P&ID) Smart Plant Instrumentation Module (SPI) and Smart Plant 3D Model (SP3D).Incorporation of all job installation standards and integration of work flow ofInstrumentation with IPMCS of Piping and SORPS software for the in house BOM program hasbeen implemented.

Instrumentation Department is also participating actively in Make In India initiativeof EIL by enlisting Indian suppliers who maximize domestic content by optimizing OriginalEquipment Manufacturers scope in high tech areas like DCS PLC Analysers Metering SkidsCommunication systems CCTV Radars and electronic transmitters.

11.3 Project Controls

Need was felt in recent years for an efficient Project Control System which wouldmonitor Project Schedule Performance effectively within Budgeted / Approved CostParameters wherein the Planning / Scheduling and Cost Control functions need to beinterlinked and monitored through a common control. With this vision the Functions ofPlanning / Scheduling and Cost Control were combined under a single umbrella and RsProject Controls Division' was formed in July 2019 under Project Directorate. The ProjectControl Specialists who have knowledge of both Planning / Scheduling and Cost Controlfunctions are able to identify and manage potential variations from the budget andschedule by integrating the two and hence will be able to exercise better control as wellas take timely corrective action as necessary. This would help further to create arobust pool of Multi-Skilled Project Control Specialists who can switch roles based onwork demand.

With the above vision of Integrated Project Controls in focus a leadership line hasbeen identified from amongst senior level multiskilled Planning and Cost Engineers holdingdual work experience. Deployments have been made in Rs Project Controls' roles whichstarted showing desired results. Management Reports on Project Controls are being rolledout combining both Schedule and Cost status and impacts on Project establishing theirlinks for necessary interventions. Budding Engineers are being trained by cross-functionaldeployment for multi-skilled grooming.

Besides monitoring of Project Schedule and Cost Parameter Project Controls also dealswith the change management devising strategies to remove the roadblocks causing Time andCost Overruns analysis and monitoring of Project Time and Cost Forecasts RiskManagement etc.

Over and above the umbrella Rs Project Controls' functions as routine services Rs CostEngineering' continues to be engaged in preparation of Capital Cost Estimates andFinancial/ Economic Analysis for diverse activities ranging from Technology Selection topreparation of Feasibility Reports (DRF and PFR) and Option Study Estimates for InvestmentDecisions pertaining to Projects handled by EIL in various Industry Segments. CostEngineering also provides Cost Estimates for Procurement Tendering and Assistance inPrice Negotiations.

The Rs Planning and Scheduling' Department provides Planning Scheduling MonitoringRisk Management and Material Control Services to various Projects using state of the arttools and database. The Department also provides Project Monitoring Services to theMinistry of Petroleum and Natural Gas. During the current year 20192020 web based ProjectMonitoring Software with Dashboard (called MMC Dashboard) was implemented for theMinistry. This has not only changed the gamut of Project Monitoring Capabilities but alsomade available to the Stakeholders the Key Project Information sector wise state wiseperiod wise time and cost overrun details etc. at a click of the button. Dashboard basedMonitoring System has improved the efficiency of Planning Professionals in monitoring ofthe project data storage retrieval and handling of crucial project information. The MMCDashboard System has been widely appreciated and adopted by the MoP&NG as well as allthe Oil and Gas CPSEs' Management.

11.4 Supply Chain Management

Your Company offers Integrated Supply Chain Management Services including Supplier/Contractor Registration & Revalidation Contracting & Purchasing of goods/services/ works Expediting Inspection Logistics Supplier / Contractor PerformanceReview etc. through its Supply Chain Management (SCM) Division within the CommercialDirectorate.

The Division through its highly experienced and effective team of Supply Chainprofessionals works closely with key suppliers and contractors across the globe and istasked with developing a reliable and low cost supply chain offering a comprehensive arrayof Procurement Services to the clients with focus on customer delight. The Division hasenough flexibility and agility to cater to the dynamic needs of various Clients andProjects.

Being a CPSE the Company's procurement policy and practices are guided by GovernmentPolicies and CVC Guidelines. Entire Procurement is carried out in consonance with PublicProcurement Principles viz. Transparency Equity and Fairness ensuring desired qualitywithin the designated time frame at the most competitive prices and against aggressivecompetition.

Your Company has been at the forefront in adopting and implementing various policies ofGovernment of India like Make In India Start-up India e-procurement through GePNIC &GeM Public Procurement Policy for MSEs various Purchase Preference Policies etc.

During the year 2019-20 EIL procured Rs 117 Crore worth of goods and services (around28% of total procurement of goods and services) from Micro and Small Enterprises for itsin-house requirements.

Ordering highlights for Fiscal Year 2019-20

• Rs 1673 Crore-direct purchase and contracts on suppliers/ contractors forvarious LSTK/OBE/Depository projects.

• Rs 109 Crore - direct purchase and contracts for EIL Inhouse requirements.

• Rs 21170 Crore for projects where EIL worked as a Consultant

• Rs 22952 Crore - Total Procurement

• 1362 cases (MRs + Tenders) handled during the year

SCM is responsible for developing new suppliers/contractors and monitoring existingsuppliers/contractors thereby ensuring the Quality and Value for Money with increasedcompetition for its projects and provides a complete end to end Supplier RelationshipManagement for supplier/contractor related processes like

Enlistment Enhancement Revalidation and Performance monitoring. EIL with its robustsupplier and contractor enlistment management system has been able to developtransparent accountable system and processes for development of manufacturing andcontracting capacity within the country. Currently around 2300 suppliers and 370contractors are enlisted with EIL for various goods and services. EIL is encouragingindigenous manufacturers to enhance their product portfolio and manufacturing capabilitiesand capacity in collaboration with their foreign principals.

In order to get our enlisted suppliers/contractors an entry in a new geography EILalongwith Embassy of India Mongolia and in association with Government of Mongolia andMongol Refinery organized First joint India-Mongolia Oil and Gas Exhibition inUlaanbaatar Mongolia during May 12-14 2019. A total of 31 Indian Companies participatedin the exhibition. This exhibition evoked wide interest in Mongolia and was very wellattended.

On domestic front EIL organised five (5) industry specific exclusive supplier /contractor meets including one specifically for SC/ST entrepreneurs to make themunderstand EIL requirements and to address challenges faced by the suppliers /contractors. EIL also participated in 3 programs organized through various platforms fordevelopment of SC/ST entrepreneurs with one exclusive program of EIL organized byNSIC-NSSHO.

SCM through its global inspection offices including nine (9) within India and one eachin London Milan and Shanghai carries out Inspection of almost all types of itemsrequired for a project. The engineers are highly skilled in various testing techniques andhave many certifications to their credit. They are well versed with International codesand standards and are technically qualified with internationally recognisedcertifications.

Inspection is carried out at supplier's shop so as to avoid discrepancies after thematerial reaches site. This value addition helps not only in getting a quality product asper specification but also in trouble free operation of the plant after commissioning.

In the year 2019-2020 Inspection was carried out for more than 2000 equipment 2000 Kmof Pipes about 600000 fittings 225000 flanges and 125000 Valves. In addition tothis large numbers of Electrical Instrumentation and various other items have also beeninspected. During Covid-19 pandemic inspection activities were undertaken online.

In addition to the above there is a focussed team of logistics experts (shipping andallied activities) which helps in ensuring smooth flow of project material from Indian aswell as global sources.

11.5 Construction

The Division offers services for Construction Management in totality including ContractAdministration Construction Quality surveillance Feedback Analysis HSE and WarehouseManagement for various projects of EIL withstanding diverse challenges and localimpediments associated with climatic conditions difficult terrain and space constraintsetc. which are unique to the nature of the project.

During the year 2019-2020 Construction Division continued to provide ConstructionManagement Services for various clients at more than 69 diverse domestic projects and 3overseas locations.

Concurrent prestigious commitments for the Division include Dangote Refinery atNigeria Vishakh Refinery Modernization Project (PMC & OBE) of HPCL RajasthanRefinery Project (PMC & OBE) of HRRL Slug Catcher Project Uran on OBE mode SRUrevamping of ONGC at Hazira on OBE mode Petrochemical Project of HMEL - Bathinda Revivalof Ramagundam Fertilizer Complex BS-VI projects of IOCL at Vadodara & Panipat BS-VIproject of CPCL at Chennai (OBE) PDPP & MSBP of BPCL at Kochi MREP and MR-II projectof HPCL at Mumbai Bio Refinery Project Palanpur Vadodara Pipeline Project of HPCLDDHPL& Vijaipur Aurya Pipeline project of GAIL BS-VI of MRPL at Mangalore NBPS-II Projectof OIL Mumbai Manmad pipeline of BPCL Jawahar Dweep project Mumbai Indjet Unit of M/sIOCL at Barauni KHDS-BORL Bina APL-Namrup Jamnagar-Loni pipeline of GAILKSPPL KochiHigh Speed Rail Terminal at Sabarmati Leh Airport IIM Nagpur and Amrut Odisha.

Construction activities commenced for the following new domestic/ overseas projectsduring the year:

• Mongolia Refinery Project

• LNG Terminal at Chhara

• India-Bangladesh Friendship Pipeline Project

• PPU of GAIL Pata

• DHDT Inter connecting Pipe Rack of MRPL at Mangalore

• HP Green R&D Centre Phase -II Bengaluru

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 software for piping management system etc. during all phases ofconstruction to ensure trouble free commissioning / operation of critical units.

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

• BS-VI Project of HMEL at GGS Refinery Bathinda

• BPCL LPG Import Terminal Facility Project Haldia

• Gasoline Hydro-treater Unit at BPCL Mumbai Refinery

• Namami Gange Project

• NFC Kota

• Lean Gas Compressor Hazira of M/s ONGC

• BS-VI projects of IOCL at Haldia Mathura & Bongaigaon

The Construction Division implemented a host of innovative construction techniques andimprovised equipment/machineries to minimize construction schedule across project sites.Some of them are as mentioned below:

• Erection of equipment in dressed up condition.

• Modular construction of Tech Structure Piperack and Heaters

• Use of Pre-fabricated/Bolted structures

• Use of Auto Blasting and auto beveling machines

• Use of monsoon shelter / hanging platform

• Introducing extensive use of Auto UT/TOFD techniques as an alternative tohazardous conventional NDT method like radiography.

• Use of Digital Radiography

• Use of Piping Management Software

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:

• 35 Million LTI free man hours at VRMP HPCL Vizag(PMC)

• 33 Million LTI free man hours at Aishwarya project of IOCL Haldia

• 15.5 Million LTI free man hours at BS-VI project IOCL Panipat

• 15 Million LTI free man hours at MREPHPCL-MR Mumbai

• 10 Million LTI free man hours at MSBP-BPCL Kochi

• 10 Million LTI free man hours at BS-VI project of GGSRL Bathinda

• 10 Million LTI free man hours at LPG Import Facility Haldia

• 8.5 Million LTI free man hours at PVPL-Vadodara

• 8 Million LTI free man hours at MREPHPCL-MR-II Tankages Mumbai

• 6 Million LTI free man hours at VRMPHPCL Vizag (OBE)

• 5.2 Million LTI free man hours at BS-VI Project MRPL Mangalore.

• 3 Million LTI free man hours at DDHP Project GAIL

• 2 Million LTI free man hours at IIT Patna

• 2 Million LTI free man hours at APL Namrup

• 0.425 Million LTI free man hours at ONGC-Uran Mumbai

11.6 Environmental Engineering

Your Company's business mandate revolves around complying with the environmentalregulations and norms with focus on delivering projects as per our Corporate Quality andHSE policies. Our project designs thrive on water & energy efficiency resourceoptimization process safety and health of plant personnel & society at large. TheCompany has been providing solutions for water resources management while protecting orrestoring our major water ecosystems. EIL helps enable the adoption of innovative &integrated water and wastewater management for industries & municipalities. EIL hasexecuted several hundred projects in diversified fields of environmental engineeringincluding water & wastewater treatment; effluent recycle & reuse; EnvironmentalImpact Assessment studies; environmental feasibility studies; air quality assessmentmodeling & control; environmental management plans; etc.

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

• Water consumption study for 13 nos. of Indian PSU refineries (of IOCL BPCL andHPCL) for optimum utilization of water in the refinery and reduction of water intake fromnatural resources by recommending effluent recycle water recovery and reducing waterwastages. Report for all 13 refineries has been submitted during the year. The study isbeing carried out as part of initiative by Centre for High Technology (CHT).

• Water & wastewater treatment facilities including effluent recycle &reuse for Mongol refinery.

• Construction of entire water & wastewater treatment facilities includingeffluent recycle & reuse to meet zero liquid discharge concept to minimize the freshwater consumption by refinery for PP PRU and associated facilities at Rasayani ComplexBPCL Mumbai.

• Water & wastewater treatment facilities including effluent recycle &reuse to meet zero liquid discharge concept to minimize the fresh water consumption isbeing implemented for HRRL Rajasthan Refinery Project.

• PMC services for AMRUT project in Odisha for construction/ rehabilitation of RawWater Treatment Plants.

• Environmental Clearance from Ministry of Environment Forest and Climate Changewere successfully obtained by EIL for IOCL Technology Development & Deployment Centre(R&D-II Campus) at Faridabad Haryana; HRRL Township at Barmer District Rajasthan(from state SEIAA Rajasthan) and Petro Resid Fluidized Catalytic Cracking Unit (PRFCC)& Associated Facilities at BPCL Mumbai Refinery.

11.7 Research & Development

Your Company takes pride in being a technology driven company and being one of the fewengineering consultancy organizations that have a dedicated Research and DevelopmentDivision boasting of developing more than 35 commercialized process technologies. R&DDivision over the years has contributed significantly in keeping pace with the changingtechnologies in the spectrum of core refining areas and other diversification sectors likeBiofuels Energy optimization Coal to Liquid (CTL) and promoting "Start-upIndia" through EIL's flagship "EngSUI" initiative. In the present scenariowhen experiment and innovation holds the key to technology development and upgradationinfluencing businesses and socio-economic growth all across the globe Research &Development holds a dominant spot in the world economy and India in particular. Hon'blePrime Minister of India has urged the Nation to work for attaining size of $5 trillioneconomy which can be realized with benchmarking our research to global standards andpositioning India on global canvas.

The long journey of R&D Centre from its inception in 1988 till today is testimonyof EIL's vision in shaping research and innovation based ideas to reality. Focus oncollaborative R&D with other research partners and successes in jointcommercialization of technologies are laudable.

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

Technology development projects New Projects Initiated:

• Scale-up and Commercialization of in-house developed Desalter technology incollaboration with BPCL

• Gasification of high ash coal with steam and oxygen in collaboration with BPCL

• Development of Reference Fuel used for vehicle testing in collaboration withIOCL R&D

• Waste heat recovery from Gas Turbine (GT) Exhaust

• Technology Upgradation of LPG Treating (EngTreatLSuper) to reduce impurities upto 50 ppm Total Volatile Sulphur

• Development of Divided Wall Technology for Refinery Application

• Optimization of Sulphur plant for 99.9 wt% overall Sulphur recovery

• Development of design methodology for Amine Purification Process for removingHeat stable salts from Industrial Amines

• Development of analytical testing methodology for hydrocarbon and water/wastewater sample

Ongoing Projects:

• Computational Fluid Dynamics (CFD) study of new Air Injection

System for monitoring and controlling stack temperature in Sulphur Recovery Unit

• Kinetic model development for slurry phase hydrocracking reactions

• Development of high level Oxygen Enrichment (O2 > 35%) Technologyfor capacity enhancement of Sulphur Recovery Units (SRU)

• Development of Incinerator waste heat boiler bypass system for trouble freeoperation of SRUs

• Development of process for utilization of CO2 for neutralization ofalkaline stream in Effluent Treatment Plant

• Recovery of Ammonia from refinery sour gases for production of Anhydrous Ammonia

• Recovery of low level heat from process streams

• Development of heat recovery scheme based on Organic Rankine cycle (ORC)

• Setting up of experimental facilities for study of attrition of solids in solidprocessing systems

Technology commercialization efforts:

• Conducting baseline verification audit for six petrochemical units under PAT-IVcycle for Bureau of Energy Efficiency (BEE)

• BDEP Preparation for EngHOG unit at IOCL Panipat (P-25) Refinery project

• Implementation of EngHOG at HRRL Refinery Project

• Implementation of Saturated LPG treating and Unsaturated LPG treating units atHRRL Refinery project

• BDEP Preparation "utilization of CO for neutralization of 2 alkaline streamin Effluent Treatment Plant" for GAIL Pata

• Development of process scheme for reference fuel

• CFD Study of Cooling water pumps for M/s HMEL

• CFD Study of Inlet Manifold of CGOHDT Reactor Feed Heater for IOCL HaldiaRefinery

• CFD analysis to support FEA analysis for wedge baffle of Feed Nozzle towithstand potential flow-induced dynamic resonant vibration and impingement for QuenchTower for M/s HMEL

• Implementation of indJet unit at IOCL Barauni

• Reactor design data provided for proposal preparation for DHDT unit under NREPproject

• Developed a new process scheme of TGTU for NRL new SRU Project

• Implementation of Process Integration and Solar Integration at GGS ONGCMehasana

Initiatives taken for widening technology portfolio:

Apart from carrying out research in-house EIL has always been instrumental inrealizing synergistic potential by forging relationships with other research organizationsand educational institutes. EIL is also championing the cause of GoI's flagship programme"Start-up India" initiative by providing not only financial assistance but alsoTechnical and Infrastructural support through modes like "Innovation Challenge"and "Seed Funding" to the upcoming Start-ups. EngSUI apart from Oil and Gasdomain is also promoting research in varied areas such as Lube Packaging RenewableEnergy & Storage Nano Materials Engineering plastic from Petro chemical productslate Waste to energy Replacement of Raw material/catalyst Health Safety andEnvironment (HSE).

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

• 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

EIL is also proud to be part of Oil PSUs consortia and has signed MoU for setting up RsCentre for Excellence' at IIT Bombay.

Patents / Trademarks filed / granted:

Continuing with the tradition to safeguard EIL's intellectual property and furthercommercialization interests following 5 patents were filed during the year:

• A self- sustaining process and system for heat recovery and improving efficiencyby reducing fuel

• Design of Desalter System

• Maximisation of power generation from existing gas turbine using a thermodynamiccycle

• A process for production of hot water chilled water and electricity using solarenergy

• Integrated energy efficient Tail Gas Treating process and system for the same

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

• A 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

• Apparatus and method for removal of sulfur-containing impurities

• An absorbent liquid and a process for removal of acid gases using the same

With this the number of Rs Live' granted patents stands at 31 and patents pending grantare 27.

Trademarks applied and granted:

An application has been made for registration of Trademark for Rs EngDEGAS' technologyto enhance the brand image of the Company.

11.8 Information Technology Services

Information Technology Services (ITS) Division continued to make advances providinghigh-tech IT enabled services to EIL's mainstream activities by developing/ implementingIT solutions to deliver better quality services with emphasis on increased efficiency andimproved productivity. The major focus of ITS remained digitization sustainability andensuring availability of the IT infrastructure in safe and secured manner. EIL ITS hasalso expeditiously provided support to meet all statutory requirements.

Various initiatives taken during the year are enumerated below:

• As part of Ministry of Finance directive a new Integrated Invoice Portal wasimplemented and integrated with Bill tracking System (In-house & LSTK) and VendorAccounting System. This Portal provides e-uploading of Vendor Invoices to expedite/viewStatus of Invoice payments. Integration of MSME payment status reporting has beenimplemented.

• As per GeM-CFO directive EIL software are integrated with GeM portal upto postorder handling of Invoices and Payment Status.

• Completed digitization of GST (TDS) report for filling GSTR-7 details on monthlybasis.

• As a part of HR MOU activity for Industrial segment wise competency in theCompany implemented a Competency Analysis and Review System (CAReS) Application asSkillset

• Towards Paperless Office : Online system developed to incorporate facilities sothat activities can be concluded with various approval requisition systems

• Automation has been enhanced with system integration for seamless data flowusing intelligent database connectivity for engineering activities HR-systems F&Asystem procurement system. EIL introduced concept of Managed Print Services (MPS) forFloor-printing at EIL offices.

• In the Project area EIL successfully implemented Electronic Plant Data &Document Management System (EPDDMS) for HPCL- VRMP project for Digital Plant handover.This online system stores and intelligently links all Project related documents designdata and 3D models for operations and maintenance of the plant.

• In March 2020 the Covid-19 pandemic and resultant Lockdown has demanded"work-from-home" concept. Proactive planning and measures were taken by EIL ITSand users were guided on the methodology of work-from-home. Support teams were mobilizedto provide hand-holding to users to adapt to new way of working. A few major stepsundertaken are as follows:

• Proactive Reconfiguration of the Internet Perimeter Firewalls at EIL to enablethe remote access facility for work-from- home. When lockdown was enforced users wereguided to immediately start work-from-home.

• Internet bandwidth upgradation for ensuring work from home for all users.

• The web based applications were secured further with additional SSL and OTPfacility. Balance applications were made accessible through remote access facility throughFirewall.

• Data security under work-from-home has been enhanced through the implementationof Active Directory Policies and other means.

• Cloud-based Desktop Video-Conferencing was rolled out to users and effectivelyused for meetings / discussion with multiple participants.

• Required hardwares were provided to users to ensure WFH.

11.9 Sustainable Development

If each one of us takes responsibility in altering our own behaviour we can triggerthe type of change that is necessary to achieve sustainability for our race on the planet.We have the ability to change our planet our environment our humanity every day everyyear every decade and every millennia. EIL has viewed sustainability as being a matterof survival for its business which creates massive change in its business ethics. In EILwe strive for compliance to environmental regulations norms and sustainable developmentgoals which makes us a responsible organization transparent to all its stakeholders byaddressing the local and global issues. Sustainability is inbuilt in our thoughts andactions right from conceptualization to plant commissioning and subsequently thecommercial operation. All personnel of society are the cornerstones of our businessoperation. EIL has refocused its engineering philosophy and business models to achievelong term sustainable growth. In a way we have achieved it by way of repeat business. Ithas also initiated evaluation and reporting of performance on the triple bottom linespertaining to economic social and environmental aspects. Separate Report on SustainableDevelopment is annexed to this Report.

11.10 Business Development and Strategic Initiatives

Pursuing the road map of growth initiative your Company is venturing into newgeographies initiating tie ups with licensors/vendors/ collaborators thereby augmentingthe portfolio of EIL with strategic and diversification initiatives into sunrise sectors.

Your Company is consistently mapping the evolving market scenarios disruptivetechnologies and developing strategies required for envisioned growth of the organization.Your Company while focusing on core hydrocarbon sector requirements is also seedingideas and exploring business possibilities with new and potential clients.

Your Company has been aligning with the vision of the GoI. The various schemesannounced by the GoI such as Start Up India Skill India Make In India etc from time totime have seen concentrated support from EIL. EIL through its vendor network has beenable to achieve more than 90% Indigenisation in the Refineries Sector. Consistent effortshave been made by EIL in developing the Vendors in the country. Regular vendor/suppliermeets are being organized for interaction with the specific domain based industries andempanelment of suppliers through an online web based process.

Your Company is in incessant engagement with MoPNG and other Oil & Gas sectororganizations for various initiatives. EIL has actively participated in the WorkingCommittee for Refining or Petrochemical Outlook Coal based Gasification initiatives andhas contributed to various draft policy formulations.

Your Company believes in delivering excellence and as a part of enhanced valuecreation it has been in continuous dialogue with various licensors/technology providersStart Ups with the objective of collaboration and provision of a bouquet of niche servicesto the owners. Your Company has initiated business development activities in sectors likeBio Fuels Water and Waste Water Treatment Urban Infrastructure like SMART Cities DataCentres LNG Terminals Ports and Harbours Defence etc as a part of possiblediversification initiatives.

Through a self sustaining seeding exercise and extensive outreach approach yourCompany is focused towards enhancing the footprint of EIL and augmenting the currentbusiness portfolio.

12. HSE Management System

EIL transitioned its Health and Safety Management System from OHSAS 18001 to ISO45001:2018. Now EIL HSE Management System is certified with ISO 45001:2018 (OccupationalHealth and Safety Management System) and ISO 14001:2015 (Environmental Management system).Apart from ensuring effectiveness of the HSE Management System these certificationsprovide an edge in securing business especially overseas. Corporate HSE department auditsthe HSE Management system of all Divisions/ Departments including construction sites. Theresults of these audits are reported to the Management through Management Review Committee(MRC) meetings wherein the performance of the HSE Management system and opportunities forimprovement are presented.

On the operations front Company has put in place Emergency Preparedness and ResponsePlans (EPRP) across all its office locations to secure the safety of its employees andassets including IT assets. Regular mock drills are being conducted to test and improvethe preparedness towards the emergencies. On the engineering front HSE aspects that areto be addressed in the design engineering phases are built into theprocedures/specifications of various Engineering Departments. Exhaustive HSE checklistsseparately for Health Safety & Environment are in place to ensure that these aspectsare complied positively during process design and engineering phases by all divisions anddepartments. Being a renowned engineering consultant in the hydrocarbon sector EILdeploys proven risk assessment methodologies like HAZOP RRA QRA SIL and SimultaneousOperations Study (SIMOPS) etc. to ensure the process safety of the plants being designed.

On the construction front the specification for HSE Management at construction siteswhich specifies the HSE requirements to be complied by construction contractors has beenrevised during this year in line with the current trends and to improve the HSEperformance. Award to construction sites based on HSE performance issuance ofappreciation certificates to best performing construction contractors are a couple ofother examples of improvements implemented during this year based on both quantitativeand qualitative scoring mechanism. During the year EIL also celebrated National SafetyWeek across its offices and sites and the celebrations were used as a platform forimproving safety awareness amongst the employees.

13. Quality Management System

Quality is inbuilt into our processes workplace deliverables and services. TheQuality Management System (QMS) in respect of the Company's services has been reassessedthis year by means of surveillance audit as per the requirements of ISO 9001:2015. Postaudit the QMS of the Company continues to conform to ISO 9001:2015 and the certificate ofapproval is maintained. Validity of the certificate is up to 13.10.2021. Importantingredients of our quality initiatives are effective & comprehensive Internal QualityAudit process planned customer perception surveys analysis of feedbacks fromstakeholders and regular reviews & directions from the MRC. Regular monitoring is doneto analyse the data & feedback for recommending improvements in processesdeliverables and QMS to reduce costs shorten cycle time cross functional issues improvevisibility and credibility without affecting the environment. QMS implementation and itseffectiveness have been further increased by computerization of certain processes throughin-house developed software.

During the year the Quality Management System of Company's UAE (Abu Dhabi) office wasalso independently audited and reassessed for certification and post-audit the QualityManagement System of the Company continues to conform to the International Standard ISO9001:2015. The certificate of approval is valid up to 30.03.2022. In addition the Companyparticipated as a prominent and active member in various committees of Bureau of IndianStandards for formulating products and quality system standards. Quality Management Systemof the Company provides the competitive edge in securing and executing projects with focuson full customer delight. A digital newsletter Rs Eminence' is being issued to allemployees to promote awareness & to improve the Quality Management culture. Thenewsletter covers various ingredients of ISO 9001 and their implementation methodology inEIL's Quality Management System apart from apprising the employees on the QualityManagement updates within the company.

14. Risk Management

The objective of the corporate Risk Management function is to ensure sustainability ofthe organization by professionally managing the Enterprise Risks. Enterprise RiskManagement (ERM) involves identification assessment analysis mitigation and monitoringof the Risks. The ERM system of your Company performs the above mentioned Risk Managementactivities across the business functions of the organization. EIL's Risk Managementframework is based on ISO 31000 (Risk Management Principles and Guidelines) and meetsregulatory requirements namely SEBI LODR Companies Act 2013 and Department of PublicEnterprises (DPE) Guidelines. Risk Management process has also been integrated with theQuality Management System requirements as per ISO 9001. The Risk Management framework ofyour Company is overseen by the Risk Management Committee of the Board. Key risks acrossvarious business processes namely Procurement Construction Project ManagementMarketing Human Resources Legal Accounts & Recovery have been identified.

During this year EIL reviewed the Key Risks with respect to the current businessenvironment. The changes in the Key Risks have been approved by the Risk ManagementCommittee of the Board. Mitigation plans have been developed for the new risks and arebeing deployed across the organization. An independent group (Corporate Risk Assurance)audits the compliance verification of these mitigation action plans regularly and theresults are presented to the Risk Management Committee of the Board. Your company uses itsinhouse developed software package Enterprise Risk Management System (ERMS) to conductthese audits across multiple locations and departments. Being a Project Managementorganization Project Risk Management framework has been put in place so that projectspecific risks are identified assessed and mitigated. Regular Risk Management meetingsare conducted and reports are issued to the stakeholders.

The status of Enterprise Risk Management (ERM) & Project Risk Management (PRM)Systems is presented to the Risk Management Committee of the Board regularly. A digitalnewsletter Rs Risk Screen' is being issued to all employees to promote awareness and tosustain & improve the Risk Management culture. The newsletter covers case studiessurvey reports and best practices on Risk Management apart from apprising the employees onthe Risk Management updates within the company. Employees across all levels are beingcontinuously trained on Risk Management to improve awareness levels and increase theircontribution and involvement towards the Risk Management function. EIL is continuouslyimproving its risk management capabilities in order to protect and enhance the interestsof its stakeholders. In view of present crisis arising out of COVID-19 pandemic theCompany has identified a new Risk No. 28 i.e. "Impact of Epidemic/Pandemic(COVID-19) War like Situation & Force Majeure'' and its Control and Mitigation actionplan.

15. Vigilance

During the year various CTE type examination of EIL's jobs random inspection ofin-house contracts/ purchases scrutiny of Immovable Property Returns investigation ofcomplaints from different sources etc. were carried out by the Vigilance Department withthe focused objective of ensuring conformity to the Company's Guidelines/ Procedures CVCand Government Guidelines. Activities were broadly covered into three categories (a)Preventive Vigilance (b) Punitive Vigilance and (c) Surveillance and detection. Forsystemizing the work various rules regulations and procedures were reviewed during theyear. The queries and observations reported by CVC/ CTEO were examined and necessaryactions were taken. System improvements were suggested to the Management and necessarymeasures were undertaken for modification/ improvement by way of issuance of advisories/system improvements.

As part of Vigilance Awareness Week-2019 (VAW-2019) a series of programs were held inline with this year's theme "Integrity-A way of Life (beiunijl-^dtlou'iyl)".During the VAW-2019 a seminar was organized on the topic "Frauds in Corporate Sectorand how to mitigate" with an intention to create awareness about frauds in corporatesector. As part of VAW-2019 celebration and to spread Vigilance awareness amongst studentsand teachers EIL organized drawing competitions for children in four schools in Delhi inassociation with "The Hindu Group of Publications". Besides all the aboveawareness programs /competitions were also organized involving local community andstudents of various Colleges/ Schools in the areas around various Project Sites.

A "Compendium of Systemic Improvements suggested by Vigilance - 2019" wasalso unveiled by the CVO during the opening ceremony of VAW - 2019. The purpose of thisCompendium is to provide compilation of cases which had resulted in practical advisoriesfor avoidance of similar mistakes in one place for ready reference. A message from CVCwas also included in this Compendium.

This year also Vigilance Department released the journal "ABHIJATASYA" onthe occasion of Vigilance Awareness Week-2019. This Journal contains messages fromC&MD CVO and Directors. Some of the inhouse case studies were also included in thejournal for ready reference. "ABHIJATASYA" also contains glimpses of VAW-2018Vigilance Initiatives and activities undertaken by EIL Vigilance Department.

As per directions issued by the Central Vigilance Commission and the Department ofPublic Enterprises details of vigilance activities were presented to the Board.

Vigilance Department continued to monitor the progress of the followingprogram(s)/policy (ies):

• Integrity Pledge

Online System has been developed for taking Rs Integrity Pledge' by EIL officials/family members and the visitors coming to EIL Head Office located at New Delhi and atEIL Gurugram Offices. All the visitors are required to take Integrity Pledge along withissuance of entry passes at reception. The system is being implemented at other regionaloffices also.

• Leveraging Technology

Reverse auctioning e-tendering e-payment e-receipt etc. are already in place in theCompany and being monitored regularly against the set targets. Clearance of vendors' billson Rs First in First Out' (FIFO) under Bill Tracking system (BTS) is ensured. BTS hasprovision for details about pendency of vendors' bills.

• Complaint Handling Policy (CHP)

As per CVC Guidelines EIL has formulated Complaint Handling Policy (CHS) to resolvecomplaints/grievances from public contractors vendors suppliers etc. Complaint Boxesare also placed in various EIL offices which are regularly monitored by VigilanceExecutive(s) with respect to the status of complaints.

• Job Rotation

Job rotation of sensitive posts is being done and reporting of the same is being doneon monthly basis. An online system for monitoring of status of rotation on sensitive postshas been developed by HR /ITS and has been implemented in EIL.

• Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well astransparency in all of its business dealings. In EIL Integrity Pact Program was adoptedin November 2011 for all Contracts & Purchases on EIL's account for enquiries havingthreshold value of Rs 1 Crore.

• Online Vigilance Clearance (OVC) & Scrutiny of IPRs

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

16. 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 cashsurplus in safe and liquid instruments as per the approved investment policy of theCompany.

17. Internal Audit

The Company has an Internal Audit Department having competent professionals. During theyear major jobs and expense heads were reviewed by Internal Audit team with focus onchecks and controls on systems procedures monitoring compliance and up-gradation ofcontrols. Reports with observations are regularly submitted to Management and majorfindings are also presented to Audit Committee of the Board at regular intervals.

18. Corporate Management Information System

To help improve Resource Engagements Automation of Employee Centric Systems andReal-Time Management Information on both Projects Manpower and Future Workload aspectsCompany has created a Corporate Management Information System Department havingmulti-disciplinary professionals. During the year several automated software modules havebeen launched by the Department resulting in improved resource engagement and optimizationalong with various automated reports for the Company Management.

19. Human Resource & Industrial Relations

Human resources are vital for any organisation to achieve sustainable performance inthis VUCA environment. The Company values its human resources and is committed toproviding them with an enabling environment which motivates facilitates their growth andrewards them for their contributions. HR Directorate strives to develop workforce which ismotivated committed and aligned with the organization's strategic goals and objectives.To ensure an enabling work culture and an engaged work force employee-centric policiesand development initiatives have been adopted from time to time. The policies areregularly re-visited and updated to keep abreast with the changing work expectations andemployee aspirations.

As on March 31 2020 EIL has 2806 employees including 2409 professionally qualifiedemployees. Approximately 3.31 % of our employees are located outside India functioning ininternational work environments.

• Talent Acquisition

In order to address both short term and long-term requirements EIL's Talentacquisition strategy aims at identifying and developing a well-qualified and effectivetalent pool. To meet our dynamic business needs diverse recruitment models are adoptedwith intake of fresh talent domain specialists short term hiring through empanelledagencies fixed term hiring and on boarding consultants/advisors. Planned job rotation hasbeen implemented for optimum utilization of available human resources.

Performance Management System

To enable a performance-based culture EIL has in place a robust and transparent onlineprocess of Performance Management System that gives weightage to both performance &potential and ensures holistic assessment. The outcome of Performance Management System isused for career progression performance related pay training & development andsuccession planning.

Employee Welfare

In the year 2019-2020 efforts were made to align welfare measures towards enhancementof work life balance for employees. Various employee welfare initiatives were undertakensuch as holding talk cum interactive sessions on emerging health issues and buildingawareness on lifestyle enrichment matters extension of medical benefits throughempanelment of hospitals etc. besides sports and other family get-togethers for enhancingthe quality of life.

Sports

Extending a supportive role in health and wellbeing of employees EIL promotes aculture of sports by organizing weekend sessions and inter-departmental tournaments ofvarious sports for participation in PSPB Tournaments. EIL organises indoor sports likeTable Tennis Carrom and Chess during lunch time and after office hours besides weekendsessions of Badminton and Tennis. Employees are also encouraged to participate inmarathons cyclothon various trekking expeditions and sports tournaments at regional andnational levels. EIL employees participated in 8 PSPB tournaments during the year. EILalso successfully hosted 39th PSPB Inter Unit Table Tennis Tournament 201920 atThyagaraj Sports Complex New Delhi from 04th February to 7thFebruary 2020. With a view to inculcate the spirit of sportsmanship and fitness amongemployees and their families EIL Annual Sports Day 2019-2020 was organised on 25thJanuary 2020 at the Company's Gurugram office Complex.

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

• Innovation Awards-Individual Innovation and Team Innovation

• Technical Paper Writing competition on technical/domain knowledge

Annual Awards for year 2018-19 were presented on Independence Day. A total of 40employees were awarded in different categories.

Training & Development

EIL being a technology driven organization strongly believes that training anddevelopment of personnel is strongly correlated to the growth of the Company. As a talentdriven and knowledge based consultancy organization it is important for EIL to enhancethe capabilities of its human capital by increasing domain knowledge and behaviouralcompetency to maximize contribution towards achievement of organizational objectives.

Training in EIL focuses on domain behavioural and leadership training through awell-designed Annual Training Calendar. Training Department during FY 2019-20 aligned itsobjective with Organisational objective to address the training needs of its employees.Annual Training Calendar (ATC) 2019-20 was prepared. While domain programs of ATC wereorganised with the faculty support of in-house resources behavioural skill &leadership -programs got organised with faculty sourced from two empanelled agencies.Various training interventions taken by Training Dept for employees during the FY 2019-20are as detailed below along with Training programs conducted for client-sideparticipants:

• External Nominations

Certain domain related dynamic training needs arising during course of FY 2019-20 wereaddressed by processing nominations for external training programs meet summit workshopand various quiz and business simulation management games.

• Client Trainings

As a revenue earning initiative eight customised training programs were organised atclient premises details are as below:

• Civil and Structural

• Optimized Electrical System Design and Equipment Selection

• Selection Application and Inspection of Refractory in Refinery Industry

• Piping Design & Drafting

• Modern Power System & Protection Relay

• Storage Tanks

• Civil and Structural

• Centrifugal and Reciprocating Pumps

• Domain Training Initiatives

EIL being an engineering-driven company the core competency of its personnel lies inthe development of its technical expertise. Training Department enhances thesecapabilities through streamlined domain-based training programs. The ATC enlists theprograms to be conducted for a given target audience and competent faculty is identifiedto address each program.

Total seventy-four numbers of domain related programs were held in FY 2019-20.

• Leadership Development Programs

Two numbers of Leadership Development Programs were conducted through faculty supportfrom external empanelled agency:

• A three-day Management Development Program for AGMs was conducted withparticipation of 25 nos participants. The participants were exposed to learning of variousmanagement concepts such as Leadership in VUCA World Leadership Framework ConflictManagement Managing Global Economy & its impact Finance and Budgetary Controlsystems Change Management Communication Skills Negotiation Skills and Decision Makingthrough training tools such as practice exercises role plays simulation exercises andcase studies. Participants rated these programs as Rs very significant' consideringknowledge-gained usefulness course structure and program delivery by the faculty.

• Aarohan-the flagship Leadership Development Program continued with launch ofEleventh Batch. Aarohan Batch XI was launched in the month of August 2019 targetingdeveloping Rs Business Leaders'. 29 employees in level-1718 and 19 were selected on thebasis of their performance and potential to take part in the program. The participantswere assigned five Action Learning Projects (ALPs) all aimed to improve the quality ofdeliverables in the company.

• Web-Based Training programs/ Webinars

One of the MoU Performance Parameters of EIL for 2019-20 was conducting developmentprogrammes for employees with special focus on web-based learnings. Under the endeavour ofpromoting such programmes fifteen web-based learning programs on domain and soft-skillwere organised with a view to overcome the geographical divide and cater to the trainingneeds of employees posted at HO/ ROs/ BOs / RPOs.

• Training of Management Trainees (MTs)

During the FY 2019-20 140 Management Trainees (MT) joined EIL. Various traininginterventions were planned and undertaken for MT 2019 Batch. Five days Orientation andCampus to Corporate (C2C) program for each batch of around 25 MTs were conducted in-house.C2C covered aspect such as changes in orientation from Campus life to Corporate cultureTeam Building Communication Skills and Business Etiquette. Five days training by R&DDivision Cross Discipline orientation Discipline wise classroom training and sitetraining orientation were some other training interventions besides on the job trainingwhich formed part of first three months training schedule of MTs after which they havebeen relocated to various Construction sites for nine months.

• Skill Development Initiatives

As part of Government of India "SKILL INDIA MISSION" the thrust is upon"Skill Development". Apprenticeship Training is considered to be one of the mostefficient ways to develop skilled manpower for the country. It provides for an industryled practice oriented effective and efficient mode of formal training. Under theApprentices Act 1961 practical training was provided to the apprentices engaged fordesignated and optional trades and the technician apprentices. Apprentices have undergoneapprenticeship training in various disciplines at Head Office Branch/Regional Offices andConstruction Sites. The activities and familiarization programs under apprenticeshiptraining are as follows:

• Orientation Program

• Classroom Training Session

• Company and its areas of operation

• Conduct & Discipline Rules of Company applicable to Apprentices

• Health Safety & Environment

• Leave Rules & Procedure for sanction of leaves

• All India Trade Test (AITT)

• Training under respective trades as per requirement under Apprentice TrainingScheme

• Filling of Clearance and issuance of Training Completion Certificates

Organization has achieved engagement of more than 10% apprentices against the totalmanpower for the year 2019-20.

As part of Rs Swachhta Hi Sewa' (SHS) Campaign and Rs Public Sector Day Celebration'various workshops and in-house Essay Writing Competitions Slogan Writing CompetitionsDebate Competitions and Painting Competitions were organized during the year. Overwhelmingnumber of employees their family members MTs and Apprentices participated in variouscompetitions. The appointed jury evaluated the events and prizes were awarded to the bestperformers.

L&D Initiatives with Oil PSUs

HR Taskforce was formed under the aegis of MoP&NG to suggest improvements in HRpractices across member organisations-ONGC IOCL HPCL BPCL GAIL EIL & OIL. With aview to target the objectives a learning platform LEAP (Learn Engage Act and Progress)was jointly constituted by all the member organizations.

Under the LEAP umbrella various collaborative L&D activities have been undertaken.Each member of Oil PSU was requested to conduct specialized program in the domainexpertise area.

Accordingly a one-day program on Rs Project Management' was conducted by EIL TrainingDepartment on 05 November 2019 wherein participants from across the Oil PSUs attended theprogram. The program included sessions on Mega Projects-Contract Execution& ResourceManagement Cost Estimation at Various Project Stages Critical Path-Analysis &Monitoring Project Close-out & Lesson Learnt. The program was highly appreciated bythe participants.

Trainings related to Women Development

Abundant 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.

Also one of the HR MOU parameters for the year 2019-20 included Rs Initiatives forWork Life Balance and Leadership Development Program for Female Employees'. Under theinitiative following programs were organised for female employees:

• Program on Mentoring and Coaching

• Program on Rs Self Defense' for Women Employees

• Program on Rs Financial Planning' for women employees

Technical Paper Writing Competition

To provide a platform for showcasing command on technical/ domain knowledge an annualevent of Technical Paper Writing Competition was organised. The competition was open toall in two categories - Category-A (for Level 1215) and Category-B (for Level 16-18).Prizes were distributed at the function held on the occasion of Independence Daycelebration on 15th August 2019 at EIL Gurugram.

Mentorship Development & Other Initiatives

• With an objective to foster professional relationships and provide a forum foroffering constructive advice to support the career development of the mentee EIL supportsa Mentorship 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 and mentees for long time benefitsboth to the mentee and the organisation.

• A youth platform "YOUPHORIA" with a tagline "Young Hearts GreatMinds" had been launched to share the best practices in each Oil & Gas PSEs andto engage enable & empower and energize the youth across the Oil and Gas PSEs byleveraging collective intellect and experiences. The platform is aimed to developleadership skills networking skills entrepreneurial skills and community engagementamongst the millennials below 35 years of age and also to provide an opportunity toshowcase and recognize their talent.

• "New Mother's Mentoring Program" has been introduced in Dec 2019 asan initiative to maintain work life balance for new working mothers. Also Family Day forwomen was organised wherein they brought their children to their workplace in an endeavourto make the concept of office and work clearer in the minds of the young children.

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 Interface. More than 570 newsitems/reports were uploaded on web based EIL Connect which recorded more than 16 Lakh hitsduring the financial year effectively maintaining an interactive environment withemployees located in India and abroad.

Implementation of Government Directives on Scheduled Caste/ Scheduled Tribes

With a view to accelerate the pace of socio-economic development of the nation EIL hasbeen endeavouring 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 Employees' Welfare Association byholding periodical meetings with the Association.

Scholarships were awarded by EIL to 54 SC & ST (SC - 37 and ST - 17) undergraduateengineering students.

The percentage of employees belonging to Scheduled Castes and Scheduled Tribes was 18.7% and 5.0 % respectively of the total employee strength of the Company (as on March 312020).

Implementation of Government Directives on Other Backward Class

The Company has appointed a separate Liaison Officer for OBCs to work as a facilitatorin ensuring that due attention is paid to the issues of OBC employees.

The percentage of employees belonging to Other Backward Class (OBC) was 17.1 % of thetotal employee strength of the Company (as on March 31 2020).

Implementation of Government Directives on Economically Weaker Section

The Company has implemented government directives pertaining to reservation ofEconomically Weaker Section (EWS).

• Initiatives for the Benefit of Persons with Disabilities

EIL is implementing the provisions of the Persons with Disabilities Act 1995 by way ofproviding reservation for Persons with Disabilities. As on March 31 2020 there are 47PwD employees on the rolls of the Company.

• Women Development

Women constitute approximately 12% of EIL's human resource of which 87.57% are in theofficer cadre. EIL has in place a Women's Forum comprising of senior officials as PatronChairperson and Co-Chairperson to cater to the development needs of women employees.

Abundant 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.

During the year many focused interventions were made to empower encourage and enablewomen to stay engaged and deliver their best to the Organisation. Empanelment of CrechesFocus on Women Health and Well-being Training on Self-defence Knowledge of FinancialPlanning Mentoring New Mothers Installation of Sanitary Napkin Vending Machines weresome of the initiatives in this direction.

20. 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 theaverage net profit made during three immediately preceding financial years has been donein the financial year 2019-20 for CSR activities. Some key initiatives that your Companyhas been engaged in are as follows:

Education: In pursuit of its endeavour to enhance the infrastructure of educationalinstitutions EIL is supporting the construction of Government School Building inKabennur Dharwad Karnataka and construction of additional educational infrastructure inGovt schools of Darrang Assam. The Company has also facilitated the installation of waterpurifiers in NDMC schools of North-West Delhi & Mewat and maintenance of schooltoilets constructed by EIL in Assam Odisha & Tamil Nadu as part of Swachh VidyalayaAbhiyan.

EIL is also supporting the setting up of group hand washing stations in 23 Govt schoolsof Odisha supported earlier as part of Swachh Vidyalaya Abhiyan. Another initiative inthis area is support for residential Skill Development Training Programme for 902candidates (mostly school dropouts) across various parts of country.

Health Care: EIL conducted eye ailments and cataract operation camps at UdalguriBaksa & Darrang (Assam) Vishakahapatnam (Andhra Pradesh) Luxar Haridwar(Uttarakhand) and organised 5 Camps for distribution of assistive aids & appliances topoor & needy Persons with Disabilities (PwDs) at Cuttack (Odisha) Virudunagar (TamilNadu) Birbhum (West Bengal) Coimbatore (Tamil Nadu) & Kozhikode (Kerala). In a bidto promote preventive healthcare the Company is supporting the organization of Camps forscreening & treatment of anemia & malnourishment amongst underprivileged inHaridwar Uttarakhand.

To treat patients with Hematological Cancers EIL supported the installation of bloodbank equipment such as refrigerators deep freezers cross blood matching systems &portable tube sealers at a blood transfusion center in Kolkata. EIL supported theconstruction and installation of three water purification plants (ROs) in villages ofSheohar district Bihar to prevent diseases caused by arsenic contamination in water.

For reduction in water & air borne diseases EIL is supporting the construction ofindividual sanitation facilities for residents living in remote communities viz.Mustafabad & Dhanpura in Haridwar Uttarakhand. A significant activity for spreadingawareness of menstrual health was also undertaken whereby sanitary napkin vending andincineration units were installed in 5 village-based Girls Secondary Schools at Noida& Greater Noida.

During the year EIL came forward to provide much needed succour to its countrymenduring times of natural disaster and pandemic. In the aftermath of devastation caused byCyclone Fani EIL contributed to the cyclone relief fund to rebuild education community& health infrastructure in the affected regions. EIL also contributed to PM CARES fundto support the Government in its fight against COVID-19.

Environment Protection/Sustainability: EIL's initiatives in the area of environmentprotection include supporting the setting up of plant for conversion of Waste to Fuel inMathura and installation of solar system and solar lights at Ayudham Campus for old &infirm.

Women Empowerment: EIL supported the Functional literacy programme of 120 tribalwomen in Mushroom Cultivation and BeeKeeping at Bolangir District in Odisha.

Vocational Training/Skill Centres: EIL supported the setting up of permanent campusof Skill Development Institute at Bhubaneswar and providing operational fund to SkillDevelopment Institutes at Ahmedabad Bhubaneswar Kochi Guwahati Raebareli andVishakhapatnam.

21. Make In India - Atmanirbhar Bharat - EIL's Perspective

EIL has been continuously engaged in the process of creating an ecosystem conducive tothe growth of Indian industry promoting import substitution and self-reliance under theaegis of Ministry of Petroleum & Natural Gas. This has been a continuous process eversince EIL's inception in 1965. EIL has been in the forefront of development of theengineering industry in India.

The indigenous component in the capital goods industry catering to the refinery segmentwas about 10-15% in late seventies/ early eighties. This rose to the current level of85-90%. Similarly in the petrochemical and gas processing sector the indigenouscomponent has grown from almost negligible to close to 60%. This has been the power ofEIL's contribution to the indigenization efforts of the Government of India.

The Make In India campaign launched by our Hon'ble Prime Minister has added much neededboost to the economic growth of the country. As part of this various initiatives arebeing taken by EIL. One such initiative is encouragement to indigenous manufacturers toenhance their product portfolio and manufacturing capabilities and capacity incollaboration with their foreign principals. This will ensure that critical technologyflows into India and helps indigenization of the same.

In addition to the ongoing indigenization efforts underway in EIL in order to give afurther boost to indigenization of state-of-the-art technologies in the year 2016 EILintroduced a policy encouraging wholly owned (100%) subsidiaries of foreign companies toavail the benefits of the policy in case of selective capital goods and technologies whereIndia had limited number of manufacturers and there was tremendous scope for technologyup-gradation. Subsequently after analyzing the experience gained in order to alsoencourage companies where indigenous holding was upto 49% in January 2017 this policywas extended to such companies also. This had a dual purpose of sustaining the interest offoreign company by its having control over the company and secondly increasing theindigenization thereby creating employment opportunities.

India now is at the cusp of taking off onto greater heights of excellence and globalacceptance. At this juncture to carry forward the campaign of Make In India and growth ofIndian Industry we have introduced certain new policies in our Vendors Enlistment Systemin sectors where only one or two players exist even manufacturers without PTR wereallowed to develop prototypes with handholding by EIL. They were considered qualifiedbased on the successful development & testing of a prototype meeting the stipulatedtechnical specifications as well as capability and capacity of the plant being upgraded tomeet the requisite standards.

These policies have been welcomed and are acting as a catalyst for the growth of IndianIndustry thereby fulfilling the aspirations of the Indian youth by providing them withemployment opportunities in the process ensuring economic growth.

22. Official Language

• Implementation of Official Language policy & New Initiatives:

i. Quarterly meetings were held regularly wherein the progress of progressive use ofHindi was reviewed. The meetings of different OLICs of Regional/ Field/Procurement Officeswere also organized as per schedule and the targets of four meetings as per schedule wouldbe achieved in the financial year in all offices.

ii. Senior Officers of the Company participated in the meetings of the Town OfficialLanguage Implementation Committee (TOLIC).

iii. Employees are nominated for all the competitions organized by other undertakingsunder the aegis of TOLIC and some of them were suitably awarded.

iv. Hindi workshop for other undertakings was successfully held under the aegis ofTOLIC Gurugram.

v. Provisions of the Section 3(3) of the Official Language Act and the OfficialLanguage Rules have been complied with.

vi. The initiatives taken in the field of IT includes activating Unicode facilities inall computers Providing Indic IME booklet for Standard Noting PDF of Email Signature inHindi and Google voice typing and other software on the computers and training of abovesoftware were given during Hindi Workshops. Necessary Hindi software Glossary and othermaterial are installed in the Company Portal for ready use of employees.

vii. For better implementation of Official Language inspections have been conducted inthe offices and departments.

• Hindi Teaching & Training

In pursuance of the Official Language Policy of the Government of India newly joinedemployees not conversant with Hindi language are nominated in correspondence course ofMinistry of Home Affairs. Cent percent target has been achieved in respect ofstenographers and typists.

• Hindi Workshops

Workshops in different Offices and two official language conferences in region Rs A'& Rs C' have been organized so far.

• Hindi Fortnight Celebration

The Hindi Fortnight was celebrated during September 2-16 2019 in the Company. Variouscompetitions were organized to encourage the progressive use of Hindi wherein winners wereawarded. On this occasion HODs/Head of office and their Hindi Coordinators that have donemaximum work in Hindi during the year were awarded.

Official Language Award

Petroleum Rajbhasha Shield (Consolation award) was awarded to EIL by the Ministry ofPetroleum and Natural Gas for the excellent Hindi work done during 2018-19. AdditionallyEIL Regional Office Vadodara and Chennai have also been provided Second Award by TOLICfor excellence in Hindi work. Gurugram Office of EIL received award in five categoriesfrom TOLIC of Gurugram.

23. Awards and Accolades

During the FY 2019-20 your Company won multiple awards and honours at national level.The significant ones among them are as follows:

• Dun & Bradstreet Corporate Awards 2019 in Best Growth Performance -"Engineering Projects/ Capital Goods" category on May 29 2019.

• CII 3rd National Energy Efficiency Circle Competition First prize inthe "Energy Efficient Technology Provider and Impact created" category on June20 2019.

• Downstream India Excellence Award 2019 Special Commendation in the category"R&D Company of the Year" on July 17 2019.

• Industry Excellence Award 2019 by the "Institution of Engineers(India)" on November 5 2019.

• FIPI Oil & Gas Industry Awards 2019 in "Young Achiever of the year -Female category" on December 02 2019.

• Shri Sunil Bhatia Director (Finance) received the Top Rankers "ExcellenceAward for Finance Leadership 2020" on January 17 2020.

• Forum of Women in Public Sector (WIPS) "Best Women Employee(Executive)" - Second Prize for the year 2019 was received in February 2020.

• Governance Now 7th PSU Awards in three categories - Research andInnovation Strategic Investment and HR Excellence on February 19 2020.

• EIL's Chairman & Managing Director received the Governance Now 7thPSU Leadership Award on February 19 2020.

24. Joint Venture

RFCL has been incorporated as a joint venture company of Engineers India Limited (EIL)National Fertilizer Limited (NFL) and Fertilizer Corporation of India (FCIL) for settingup Gas based Urea Manufacturing Plant at Ramagundam Peddapalli district in the State ofTelangana with capacity of 2200 MTPD Ammonia Unit and 3850 MTPD Urea Unit. The Plant isexpected to be commissioned by Q3 of 2020-21.

25. Subsidiary Company

Certification Engineers International Limited (CEIL) a wholly owned subsidiary of EILcontinued to provide Certification as well as Third Party Inspection (TPI) services tovarious clients. During the year CEIL secured a number of assignments from VMSS GIGLGSPL KRCL PSCDCL NLC and various State Governments notable among them being:

• Vadodara Mahanagar Seva Sadan (VMSS) : TPI for various infrastructure projectsundertaken in Vadodara

• GSPL India Gasnet Limited (GIGL): TPI for Mundra - Bhatinda Pipeline Phase II

• GSPL India Transco Limited (GITL): MBBVPL Phase I

• Konkan Railway Corporation Limited: Quality Assurance Services for USBRLproject 16 bridges on Katra Dharam sector Anji Bridge project

• Technimont / KTI : TPI services for HGU project of HPCL Mumbai Refinery

• Special Protection Group (SPG) : TPI services for Residential cum TrainingComplex

• Pune Smart City Development Corporation Limited (PSCDCL): Third Party QualityAudits and Site Quality Control Inspection

• Third Party Inspection services for UP Irrigation J&K PHED Contractorssuppliers for Oil and Gas Projects

• Technical services to Parent company Engineers India Limited

• T4S audit Natural gas pipeline network throughout Gujarat including compressorstation at Gana

Apart from these CEIL secured Certification and Third Party Inspection assignmentsfrom ONGC for Onshore terminal in Kakinada Heera Offshore Field in Mumbai and continuedearlier TPI job for ONGC Sagar Samrat. Other assignments with OPaL and Cantonment Boardswere continued. T4S audit for CGD network in Ahmedabad Vadodara for Adani Gas T4S andIMS audit for dedicated gas pipeline in Dahej for Torrent power Fit for purposeCertification for Cairn Oil and Gas in Barmer were some of the assignments carried out byCEIL in the statutory certification area.

The Board of Directors of the company has recommended for the financial year 2019-20 afinal dividend of Rs 450 Lakhs (900000 equity shares of Rs 100 per share) in addition toRs 297 Lakhs (on 900000 equity shares of Rs 100 per share) interim dividend already paidduring the year. Payment of final dividend is however subject to approval ofshareholders in the ensuing Annual General Meeting of the company. The dividend ifapproved and declared in the forthcoming Annual General Meeting would result into totaldividend outflow of Rs 747 Lakhs and dividend distribution tax of Rs 61.05 Lakhsaggregating to total outflow of Rs 808.05 Lakhs.

The highlights on performance of the Subsidiary and Associate Company and theircontribution to the overall performance of the Company can be referred to Note No. 70 ofthe Consolidated Financial Statement.

26. Corporate Governance

The Company is committed to good Corporate Governance as per the requirements of SEBIRegulations and DPE Guidelines. The Board of Directors support the broad principles ofCorporate Governance. In addition to the basic issues EIL Board lays strong emphasis ontransparency accountability and integrity. As required under SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015 and DPE Guidelines on Corporate Governancethe Report on Corporate Governance together with the Auditors' Certificate on complianceof conditions of Corporate Governance along with the Management's Reply on the commentsof Auditors is annexed to this report.

27. Number of Meetings of the Board

The Board met 4 times during the financial year. The meeting details are provided inthe Corporate Governance Report that forms part of this Annual Report. The intervening gapbetween any two meetings was within the period prescribed under Companies Act 2013 SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 and DPE Guidelines onCorporate Governance.

28. Composition of Audit Committee

The Audit Committee of the Company comprises three members and majority of members areIndependent Directors. The recommendations made by the Audit Committee during the yearwere accepted by the Board. The other details of the Audit Committee like itscomposition terms of reference meetings held etc. are provided in the CorporateGovernance Report.

29. Declaration of Independent Directors

All the Independent Directors of the Company have submitted the declaration confirmingthat they meet the criteria of independence as prescribed under Section 149(6) of theCompanies Act 2013 Regulation 16(1)(b) of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and DPE Guidelines on Corporate Governance and they arenot aware of any circumstance or situation which exist or may be reasonably anticipatedthat could impair or impact his ability to discharge his duties with an objectiveindependent judgment and without any external influence.

The Board is of the opinion that the Independent Directors of the Company possessrequisite qualifications experience and expertise and they hold highest standards ofintegrity. Further all the Independent Directors of the Company have complied andaffirmed to abide by Rule 6 (Creation and Maintenance of Databank of Persons Offering tobecome Independent Directors) of the Companies (Appointment and Qualification ofDirectors) Rules 2014 as amended from time to time and have also declared theirenrollment in the databank of Independent Directors maintained by Indian Institute ofCorporate Affairs ('IICA').

30. Training to Independent Directors

The Company has a well defined Training Policy for training to Board Members whichinter-alia include the various familiarization programmes in respect of their rolesrights responsibilities in the Company nature of the industry in which the Companyoperates business model of the Company etc. Further the same is also taken care duringthe various strategy meets of the Company and different presentations in the Board/Committee Meetings on the Statutory Laws. The details of such familiarization programmes /Training Policy have also been posted on the website of the Company at thehttps://engineersindia.com/investors/corporate-governance/.

31. Directors and Key Managerial Personnel

The following changes occurred in the Board / Key Managerial Personnel of the Company:-

Appointment

1. Shri Sunil Kumar was appointed as Government Director w.e.f. 12.12.2019

2. Shri Ashok Kumar Kalra was appointed as Director (HR) w.e.f. 01.03.2020

3. Smt. Vartika Shukla was appointed as Director (Technical) w.e.f. 01.08.2020

Cessation

1. Shri Umesh Chandra Pandey Shri Vikas Khushalrao Deshpande Dr. (Prof.) Mukesh Khareand Mrs. Arusha Vasudev Non-official Independent Directors ceased to be Directors w.e.f.20.11.2019 consequent upon completion of their term.

2. Shri Ashish Chatterjee Director (Government Nominee) ceased to be Director w.e.f.12.12.2019 consequent upon change of nomination by the Govt. of India.

3. Ms. Shazia Ilmi Malik Non-official Independent Director ceased to be Directorw.e.f. 31.01.2020 consequent upon completion of her term.

4. Shri V. C. Bhandari ceased to be Director (HR) w.e.f. 01.03.2020 consequent upon hissuperannuation.

5. Shri L.K. Vijh ceased to be Director (Technical) w.e.f. 01.08.2020 consequent uponhis superannuation.

Shri Sunil Kumar Director (Government Nominee) Shri Ashok Kumar Kalra Director (HR)and Smt. Vartika Shukla Director (Technical) who were appointed as Additional Directorafter the date of last Directors' Report shall vacate their office at the ensuing AnnualGeneral Meeting. Necessary Notices have been received under section 160 of the CompaniesAct 2013 proposing their candidature for appointment. The Board recommends theirappointments.

Shri Rakesh Kumar Sabharwal Director (Commercial) and Shri Sunil Bhatia Director(Finance) are liable to retire by rotation and being eligible are proposed to bere-appointed at the forthcoming Annual General Meeting.

The Board places on record its deep sense of appreciation for the guidance andinvaluable contribution made by the Directors during their tenure as Directors of theCompany.

Details of the proposal for appointment / re-appointment of Directors along with theirbrief profile are mentioned in the Explanatory Statement of the Notice of the 55thAnnual General Meeting of the Company pursuant to Section 102 of the Companies Act 2013.

32. Secretarial Auditors

M/s Agarwal S. & Associates Practicing Company Secretaries was appointed toconduct the Secretarial Audit of the Company for the financial year 2019-20 as requiredunder Section 204 of the Companies Act 2013 and Rules there under. The Secretarial AuditReport for the financial year 2019-20 along with the Management's Reply on the comments ofSecretarial Auditor is annexed to this Report.

33. Vigilance 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 https://engineersindia.com/investors/corporate-governance/.

34. Dividend Distribution Policy

As per Regulation 43A of the SEBI (LODR) Regulations 2015 your Company has formulateda Dividend Distribution Policy. The dividend pay-out is in accordance with the Company'sDividend Distribution Policy. The Dividend Distribution Policy of the Company is availableon the Company's website at https://engineersindia.com/investors/corporate-governance/

35. Transfer of Amounts/ Securities to Investors Education and Protection Fund

A detailed disclosure regarding the same has been given in the Corporate GovernanceReport which forms part of this Annual Report. The same has also been given on the websiteof the Company at https://engineersindia.com/investors/corporate-governance/.

36. 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 2019-20 to the above Stock Exchangesin time.

37. 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 forms part of this Annual Report.

38. 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. However regular inputs on performance of IndependentDirectors are being provided to administrative Ministry as well as Department of PublicEnterprises (DPE).

39. 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 https://engineersindia.com/investors/corporate- governance/. The Company givesthe disclosure regarding material transactions with related parties on quarterly basisalong with the compliance report on Corporate Governance. As per requirements of Section134 (3) of Companies Act 2013 read with rule 8 of Companies (Accounts) Rule 2014particulars of contracts or arrangements with related parties as referred in section 188(1) of the Companies Act 2013 is annexed to this report. During the year there were nomaterial RPTs. Further suitable disclosure as required by the Indian Accounting Standard(Ind AS-24) "Related Party Disclosures" has been given in the Notes to theFinancial Statements.

40. 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 31.03.2020 are given in therespective Notes to the financial statements.

41. Reporting of Frauds by Auditors

During the year under review neither the statutory auditors nor the secretarialauditor has reported to the audit committee under Section 143(12) of the Companies Act2013 any instances of fraud committed against the Company by its officers or employeesthe details of which would need to be mentioned in the Directors' Report.

42. Extracts 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. The same has also beengiven on the website of the Company athttps://engineersindia.com/investors/shareholders-meetings

43. 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.

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

In accordance with the provision of the Companies Act 2013 and rules framedthereunder particulars relating to Energy Conservation Technology Absorption are givenunder Research & Development and Sustainable Development Sections of the Directors'Report.

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

(Figures in Rs Lakhs)

PARTICULARS

STANDALONE

Year ended 31st March 2020 Year ended 31st March 2019
a) Expenditure (disbursement basis) in foreign Currency on account of:
(i) Knowhow and professional fees including sub-contracts (others) 617.96 1182.22
(ii) Sub-contractor/Construction Material turnkey projects 1980.45 3351.58
(iii) Others (foreign travel living allowance membership fees agency commission foreign office expenses) 4525.98 3466.40
b)
(i) Earnings (accrual basis) in foreign exchange on account of professional fees including Rs 0.37 Lakhs (Previous year: Rs 78.29 Lakhs) earned in local foreign currencies which are not repatriable to India against which an expenditure of Rs 20.67 Lakhs (Previous year: Rs 88.82 Lakhs) incurred in local foreign currencies. 36152.44 17985.38

45. 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.

46. Other Disclosures

No disclosure or reporting is required in respect of the following item as either thesewere not applicable or there were no transactions on these items during the financial year2019-20:1. Details relating to deposits covered under Chapter V of the Act.

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

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

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

The names of Companies which have become or ceased to be its subsidiaries during theyear are NIL. The companies which have become or ceased to be joint ventures or associatecompanies during the year are NIL.

The Company has complied with the applicable Secretarial Standards (SS-1&SS-2).

The Company has complied with the provisions and has in place Internal ComplaintsCommittee under the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013. Further during the financial year 2019-20 there were one casefiled under the above act.

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.

47. 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 athttps://engineersindia.com/investors/corporate-governance/.

48. Right to Information

An elaborate mechanism has been implemented within the Organization to deal withrequests received under Right to Information Act 2005. A dedicated RTI Cell is availableat HO-New Delhi to deal with the matters pertaining to RTI Act.

Under the provisions mentioned in Section 4(1) (b) of RTI Act every public authorityis required to display mandated information to citizens to secure access to theinformation under the control of public authority in order to promote transparency andaccountability in its functioning. EIL being a responsible public sector undertaking hasdisplayed the mandated information on its corporate website under Rs RTI' section. Detailsof CPIO APIO and First Appellate Authority have also been notified in line with therequirements of the Act.

During the year total of 225 (Two hundred and twenty five) RTI applications weredisposed off timely by providing information in line with provisions mentioned in theAct. Company also received First Appeals in response to the information provided by CPIO.30 (Thirty) number of RTI Appeals were attended and appropriately disposed off by FirstAppellate Authority during the aforesaid period.

49. Directors' Responsibility Statement

Your Directors state that:

a. in the preparation of the annual accounts for the year ended March 31 2020 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 2020 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 Rs 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.

50. Statutory Auditors

N. K. Bhargava & Co Chartered Accountants were appointed as Auditors of theCompany for the financial year 2019-20 by the Office of Comptroller & Auditor Generalof India.

51. Bankers

Bankers of the Company include State Bank of India Indian Overseas Bank CorporationBank Bank of Baroda Punjab National Bank Union Bank of India HDFC Bank ICICI BankIndian Bank Bank of India Canara Bank Axis Bank Standard Chartered Bank Citibank N.A.and IndusInd Bank.

52. 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.

53. Acknowledgement

Directors are grateful for all the help guidance and support received from Ministry ofPetroleum & Natural Gas and from other Ministries of the Government of India.Directors are also grateful to the Bankers Statutory Auditors Comptroller & AuditorGeneral of India and the investors for their continued patronage and confidence in theCompany.

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

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

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

For and on behalf of the Board of Directors
Place: New Delhi J.C. Nakra
Date : 18th August 2020 Chairman & Managing Director

.