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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
BSE 00:00 | 24 Apr Engineers India Ltd
NSE 05:30 | 01 Jan Engineers India Ltd
OPEN 68.00
PREVIOUS CLOSE 68.80
VOLUME 148064
52-Week high 128.60
52-Week low 49.85
P/E 10.95
Mkt Cap.(Rs cr) 4,332
Buy Price 67.35
Buy Qty 100.00
Sell Price 68.55
Sell Qty 516.00
OPEN 68.00
CLOSE 68.80
VOLUME 148064
52-Week high 128.60
52-Week low 49.85
P/E 10.95
Mkt Cap.(Rs cr) 4,332
Buy Price 67.35
Buy Qty 100.00
Sell Price 68.55
Sell Qty 516.00

Engineers India Ltd. (ENGINERSIN) - Director Report


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Company director report

To

The Shareholders

Engineers India Limited

Dear Members

Directors of your Company have great pleasure in presenting the 54Annual Report for the Financial Year ended March 31 2019 along with Audited Statement ofAccounts the Auditors' Report and Review of the Accounts by the Comptroller andAuditor General of India.

1. 2018-19 in Retrospect

Your Company sustained its good performance during FY 2018-19. The keyhighlights of the financial performance of the Company for the year as stated in theaudited financial statement along with the corresponding performance for the previousyear are as under:

Financial Performance

(Figures in र Lakhs)

SI. No. Description Actual Actual
2018-19 2017-18
A. INCOME
i) Consultancy & Engineering Contracts 134947 137929
ii) Turnkey Contracts 109487 40829
iii) Other Income 22508 17947
TOTAL INCOME 266942 196705
B. EXPENDITURE
i) Cost of rendering services 207955 137512
ii) Depreciation & Amortization 2236 2383
Total 210191 139895
C. PROFIT BEFORE TAX (A-B) 56751 56810
D. Provision for Current tax 19470 21669
E. Provision for Deferred Tax 871 (3179)
F. Earlier Year Tax Adjustments Short/
(Excess) (597) 533
G. PROFIT FOR THE YEAR (C-D-E-F) 37007 37787
H OTHER COMPREHENSIVE INCOME (158) 460
I. TOTAL COMPREHENSIVE INCOME 36849 38247

Segment wise Performance

(Figures in र Lakhs)

Consultancy & Engineering Projects Year ended 31.03.2019 Year ended 31.03.2018
Segment Revenue
Consultancy & Engineering Projects 134947 137929
Turnkey Projects 109487 40829
Total 244434 178758

 

Consultancy & Engineering Projects Year ended 31.03.2019 Year ended 31.03.2018
Segment Profit From Operations
Consultancy & Engineering Projects 38938 43027
Turnkey Projects 6279 7537
Total (A) 45217 50564
Interest 123 57
Other un-allocable expenditure* 10851 11644
Total (B) 10974 11701
Other Income (C) 22508 17947
Profit Before Tax (A-B+C) 56751 56810
Income Tax Expense 19744 19023
Profit for the year 37007 37787
Capital Employed ** 227585 226787

* Financial year 2018-19 includes expenditure on Oil and Gasexploration blocks including dry well written off amounting to ` 1794 Lakhs ( previousyear : र 2643 Lakhs)

** Property Plant and Equipment and other assets used in theCompany's business or segment liabilities contracted have not been identified to anyof the reportable segments as these assets and support services are used interchangeablybetween segments. Accordingly no disclosure relating to total segment assets andliabilities has been made and capital employed has been presented.

2. Dividend

The Board of Directors of the Company has recommended a final dividendof र 0.75/- per share (of face value of र 5/- per share) for the financial year2018-19 in addition to `3.25/- per share interim dividend already paid during the year.With this the total dividend for the financial year 2018-19 works out to र 4/- pershare amounting to र 25276.46 Lakhs excluding dividend distribution tax. The paymentof final dividend is however subject to approval of the shareholders in the ensuingAnnual General Meeting of the Company which shall be paid to the Members whose namesappear in the Register of Members as well as beneficial ownership position provided byNSDL/ CDSL as on 19 September 2019.

3. Transfer to Reserves

The Company is proposing to transfer to general reserve afteradjustment of payment of proposed final dividend (including dividend tax-subject to theapproval of the shareholders in AGM) from retained earnings balance of ` 12039.47 Lakhsas on 31 March 2019.

4. Disinvestment by the Government of India

During the year the President of India acting through the Ministry ofPetroleum & Natural Gas has disinvested 125738 equity shares to "Bharat 22ETF" through a New Fund Offer in terms of scheme framed in this regard. Consequentlythe Government of India (Promoter) share holding as on 31.03.2019 stands reduced to 52%(328563993 equity shares).

5. Investor Relations

It has been a constant endeavour of your Company to achieve higheststandards of corporate governance and all measures are undertaken to enhance marketconfidence and improve shareholder engagement through periodic regular transparent andopen communication. The Management is committed to sharing information with investorcommunity on the Company's performance and convey essential updates on likelyexpected projects new business initiatives future outlook industry insights and avenuesof growth potential and investment plans periodically.

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

The Management and Investor Relations Cell are actively communicatingwith the investors by means of one-on-one meetings conference calls investorconferences road shows etc. The print and web media are also being utilized for timelydissemination of vital information which is extremely significant in the financial world.

6. Management Discussion & Analysis

In terms of the provisions of Regulation 34 of the Listing Regulationsthe Management Discussion and Analysis is set out in this Annual Report.

7. Business Responsibility Report (BRR)

The Listing Regulations mandate the inclusion of the BRR as part of theAnnual Report for top 500 listed entities based on market capitalisation. In compliancewith the Listing Regulations we have integrated BRR disclosures into our Annual Report.

8. Consultancy Assignments (Domestic)

8.1 Offshore Oil & Gas and LNG Projects

During the year EIL continued to make considerable progress inOffshore Oil & Gas and LNG sectors.

The following consultancy assignments were successfully completedduring the year:

• Underwater structural repair of HC Platform in Heera Field ofOil and Natural Gas Corporation (ONGC) Western Offshore.

• Feasibility of Developing a Crude Oil Tank Farm and associatedPOL storage facilities at Jawahar Dweep Mumbai Port Trust Maharashtra.

The following assignments are currently under execution:

• Construction of Fifth Oil Berth at Jawahar Dweep Island ofMumbai Port Trust Maharashtra.

• Life extension of Well Head Platform of ONGC Western Offshore.

• PMC services for Dahej Expansion Phase –III B1 project atDahej LNG Terminal Gujarat for Re-gasification facilities for Petronet LNG LimitedGujarat. During the year EIL secured the following assignments against stiff competitionand works are under implementation:

• Consultancy services for preparation of DFR for Additional CrudeUnloading Storage & Transportation Facilities at Mundra Gujarat.

• Study/ Demo Unit Design for Utilization of Waste Heat fromproduced water for heating well fluid in ONGC Group Gathering Station (GGS) IV NorthKadi Mehsana Gujarat.

8.2 Pipelines

EIL is credited with design engineering and execution of 48 pipelineprojects including cross-country pipelines for transportation of crude oil refinedpetroleum products natural gas and LPG across diverse geographies and demanding terrains.The following Pipeline Projects were successfully completed during the year:

• EPCM services for Heat Traced Pipeline projects with associatedfacilities at Mumbai & Kochi refineries of Bharat Petroleum Corporation Limited(BPCL).

• Surge Analysis Study for Vadinar - Bina Pipeline Project ofBharat Oman Refineries Limited (BORL) Madhya Pradesh.

During the year considerable progress has been achieved in thefollowing pipeline projects:

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

• PMC services for 24"/18"/8"/4" x 243 kmReplacement of KG Basin Pipeline for GAIL.

• PMC services for 12"/ 8" x 450 km Kochi-Salem LPGPipeline for Kochi Salem Pipeline Private Limited (KSPPL).

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

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

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

• PMC services for 36" x 357 km Vijaipur-Auraiya Natural GasPipeline of GAIL.

• EPCM services for Palanpur-Vadodara Pipeline and Mundra-DelhiPipeline capacity expansion Project of Hindustan Petroleum Corporation Limited (HPCL).

• Engineering and Procurement Services for Capacity Expansion ofMundra-Bhatinda Pipeline of HPCL-Mittal Pipeline Ltd.

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

• PMC services for new selected C -C product injection scheme inVJ pipeline at GAIL Vijaipur.

• Engineering Procurement Inspection & ExpeditingConstruction Supervision Pre-commissioning & Commissioning assistance ervices forlaying of 16" x 4.2 km pipeline from H2SO4Tank of Indian OilCorporation Limited (IOCL) Haldia Refinery to existing IOCL jetty.

• PMC services for HPCL Rajasthan Refinery Limited (HRRL) OnshorePipeline Project: 52" x 210 km-Raw Water Pipeline 12" x 70 km-Mangla CrudePipeline 30" x 510 km Crude pipeline and 16" x 90 km-Rageshwari Gas Pipeline.

The following project assignments were secured by the Company duringthe year and are in various stages of execution:

• Owner Engineer services for 30"/18"/12" x 931 kmMehsana Bathinda Pipeline Project (Balance Section-30") of GSPL India Gasnet Limited.

• EPCM services for 10" x 131 km HSD Siliguri India toParbatipur Bangladesh Pipeline of India-Bangladesh Friendship Pipeline Project (IBFPL).

• PMC services for Storage Augmentation of LHC Products at GAILVijaipur.

• PMC services for sustained evacuation of natural gas from ONGCGandhar Fields into High Pressure HVJ-DVPL and DVPL Upgradation Natural Gas Pipelinenetwork.

• Detailed Feasibility Report (DFR) for Pipelines for RasayaniComplex Raigad for BPCL.

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

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

8.3 Petroleum Refining

EIL has played a pivotal role in shaping the contours of refinerysector in India having built combined refining capacity of more than 150 MMTPA (3 millionBPD) in the country. Its portfolio includes grass root refineries DieselHydro-desulphurization projects Fuel Specification Upgradation Projects and revamp/modernization projects for most of the oil & gas majors.

The following Refinery Projects were successfully completed during theyear:

• PMC services (Phase-II) for Revamp and Capacity EnhancementProject of BORL Refinery for increasing refining capacity from 6.0 MMTPA to 7.8 MMTPA.

• Pre-Project Activity for Vizag Refinery Modernization Project:Construction of new utility buildings for relocating existing facilities as part ofrevised pre-project activities of Vizag Refinery Modernization Project (VRMP) HPCLAndhra Pradesh.

• HGU Revamp SRU/O enrichment SWS revamp and CDU-III revamp ofBPCL Mumbai Refinery.

• Preparation of DFR and Licensor Selection for process units ofCauvery Basin Refinery project of Chennai Petroleum Corporation Limited (CPCL) atNagapattinam Tamil Nadu.

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

• Distillate Yield Improvement Project at IOCL Haldia Refinery.

• EPCM services for 0.7 MMTPA DHDT and supporting facilitiesproject at Numaligarh Refinery of NRL.

• EPCM services for LPG Import facility at BPCL Haldia.

• MR-II Tankages project at HPCL Mumbai Refinery.

• Vizag Refinery Modernization Project of HPCL Vizag.

• BS-VI up-gradation project for six refineries of IOCL atVadodara Panipat Mathura Haldia Bongaigaon and Digboi.

• EPCM Services for BS-VI Fuel Quality Project of HMEL BathindaRefinery.

• EPCM services for BS-VI project & associated facilities atMRPL Refinery at Mangalore.

• Mumbai Refinery Expansion Project (MREP) at HPCL MumbaiRefinery.

• PMC and EPCM services for Gasoline Hydro treating Unit Projectat BPCL Mumbai Refinery.

• PMC and EPCM services for BS-VI Project at BPCL Kochi Refinery.

• Pre Feasibility Report (PFR) and Site Selection for West Coast

Refinery of RRPCL (Ratnagiri Refinery & Petrochemicals CorporationLimited).

• BDEP and other services for installation of INDJET Unit (ATFHydro Treating Process) at IOCL Barauni Refinery.

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

The following project assignments were secured by the Company in thePetroleum Refining Segment during the year and good progress has been achieved in theseprojects:

• State-of-the-art Grassroot Rajasthan Refinery Project of HRRL atBarmer Rajasthan: Project comprises PMC services for Refinery units (CDU/VDU DCUVGO-HDT DHDT/HGU PFCC MS Block Sulphur Block) Petrochemical units (DFCU LLDPE/HDPEPPU & Butene-1) SPM/COT Township & associated Pipelines and execution ofResidual Utilities & Offsite on OBE basis.

• Detailed Design Consultancy services contract awarded by NRLfor MS Block Revamp Project at Numaligarh.

• EPCM Services for Elevated Hot LPG Flare System at BDT Binaproject of BPCL.

• Health Assessment Engineering Procurement Assistance forRevival of Hydrocracker Unit at BPCL Mumbai Refinery.

• Licensor Selection of Hydrogen-based Residue Upgradation Unit(RUF) HGU and SRU under MREP Phase-II at HPCL Mumbai Refinery.

• Consultancy services for preparation of Feasibility Study forcapacity expansion of BORL Bina Refinery Madhya Pradesh from 7.8 MMTPA to 15 MMTPA withintegrated petrochemical complex .

• Water consumption studies of all IOCL BPCL HPCL and CPCLrefineries.

• EIA & RRA Study for PRFCC at Mumbai Refinery (MR) of BPCLPolypropylene Unit at Rasayani and Pipelines from MR to Rasayani.

8.4 Petrochemicals

EIL has been involved in the establishment of Ten mega petrochemicalcomplexes in India. The Company has provided Engineering Consultancy services for variousprocesses including Gas based/ Naphtha based cracker complexes and Aromatic plantscomprising Naphtha splitters pre-treaters/ reformers Benzene-Toluene extraction unitspyrolysis gasoline hydrogenation units Xylene fractionation and Isomerization unitsincluding overall integration and optimization of such complexes.

The following Petrochemical assignments were successfully completedduring the year:

• DFR for expansion of DFSU capacity from 1200 KTPA to 1500 KTPAfor HMEL Bathinda Punjab.

Significant progress has been made in the following petrochemicalproject assignments:

• Propylene Derivative Petrochemical Plant (PDPP) of BPCL KochiRefinery.

• LEPCM services for 500 TPD Methanol Project and AssociatedFacilities for Assam Petrochemicals Limited at Namrup.

• GGSR Polymer Addition Project of HMEL at Bhatinda.

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

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

• Consultancy services for preparation of DFR for capacityexpansion of Guru Gobind Singh Polymer Addition Project of HMEL.

• Process development and BEDP preparation of Carbonation Processfor Alkaline Waste water at GAIL Pata.

8.5 Strategic Storages

The Strategic Crude Oil Storage Programme is the flagship energysecurity initiative of the Govt. of India which aims at creating a buffer stock of crudeoil in underground caverns to meet requirements in case of any disruption of supplies fromabroad.

Under Phase-I of the Strategic Storage programme EIL provided PMCservices to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction ofunderground unlined rock cavern storages in Vishakhapatnam Mangalore and Padur having atotal capacity of 5.33 MMT. During the year Mangalore-Padur Pipeline 110 kV HT line andPadur carven in Karnataka have been commissioned. The strategic storages at VizagMangalore and Padur were also dedicated to the nation by Hon'ble Prime Minister ofIndia.

8.6 Metallurgy

EIL is a leading engineering consultancy service provider fornon-ferrous metallurgy sector having executed a large number of green field smelter andalumina refineries in India.

During the year following key metallurgy assignments were completed:

• DPR for National Aluminium Company Limited's (NALCO)brownfield smelter of APXe (500 KA) pot line and upgradation of existing pot line from 180KA to 220 KA.

• Consultancy Services for Comprehensive Geostatistical ResourceEvaluation and Resource Classification of Polymetallic Nodules in the Central Indian OceanBasin for National Institute of Oceanography.

• Study for structure strengthening in Hindalco plant.

• PMC services for commissioning of Rectifier in NALCO AluminaRefinery Damanjodi.

During the year the Company achieved significant progress in followingassignments:

• Consultancy services for 2nd Raw Water Plant at NALCO AluminaRefinery Damanjodi.

• Consultancy services for implementation of revised plantoperation philosophy (Electrical) for NALCO Alumina Refinery Damanjodi.

• Consultancy services for procurement and installation ofReclaimer and Associated Facilities in NALCO Alumina Refinery Damanjodi.

• DFR for mechanized production and evacuation for Kurmitar IronOre Mines of Odisha Mining Corporation Limited.

• DFR for Kodingamali Bauxite Mines of Odisha Mining CorporationLimited.

• Consultancy services for Retrofitting of HRD (High RateDecanter) and DCW (Deep Cone Washer) in Stream-1 Stream-2 & Stream-3 of NALCO'sAlumina Refinery at Damanjodi.

The following assignments were secured by the Company in Metallurgysector during the year and were successfully completed:

• Preparation of Technical Assessment Report for requirement ofland water & power for NALCO's aluminium downstream project.

• Consultancy services for assessment of land requirement forexpansion of alumina refinery of Vedanta.

8.7 Infrastructure

EIL's foray into the Infrastructure sector has met with greatsuccess with the Company having executed a large number of projects for key clients in thesector. The Company's wide spectrum of services for this sector include ProjectManagement Project Management on Depository Basis Third Party Inspection (TPI) QualityAssurance Independent Engineer & Lender's Engineer services and ProjectAppraisal and Project Execution Services.

During the year following major assignments were completed:

• PMC services for

• Headquarter Building in Delhi for Unique IdentificationAuthority of India (UIDAI).

• Data Centre in Hyderabad for SBI.

• Housing Project of Gujarat Housing Board.

• Bhamashah State Data Centre in Jaipur for Department ofInformation Technology & Communication (DoIT&C) Government of Rajasthan.

EIL continued to achieve substantial progress in the followingassignments:

• PMC services for

• Rejuvenation of 9 cities of Odisha under AMRUT Scheme.

• Development of IIT Patna Campus Bihar.

• Establishment of Main Campus of Central University of Punjab atBathinda.

• Establishing Cold Storage Facility at Guntur Andhra Pradesh.

• Construction of Domestic Terminal of Leh Airport Jammu andKashmir.

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

• TPI Services of DoIT&C Rajasthan.

• Extension of TPI services for Infrastructure Projects of PuneMunicipal Corporation Maharashtra.

• Independent Engineer for Development and Construction of GreenField International Airport at Mopa Goa.

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

• Engineering Procurement Construction Management andConsultancy Services for Development of Infrastructure Facilities at Khajekhalan GhatPatna Sahib Patna Bihar.

The Company secured the following Infrastructure assignments during theyear:

• PMC Services for Design & Development of new campus for IIMNagpur at MIHAN.

• Independent Engineering Services for Development and Expansionof IGI Airport at Delhi for AAI.

• PMC services for Residential Complex of UIDAI in Delhi.

• Supervision and PMC services for High Speed Rail Terminalproject at Sabarmati of National High Speed Rail Corporation Limited Gujarat.

• Engineering review and procurement & construction managementservices for Phase-II of HP Green R&D centre at Bengaluru of HPCL.

8.8 Fertilizers

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

Engineering activities for the project have been completed. Ordering ofall equipment has been completed and equipment have been received/ erected at site. Siteactivities are in full swing and are nearing completion.

8.9 Water and Waste Management

EIL's capabilities in Water and Waste Management sector encompassa wide array of Water Treatment projects such as Raw Water intake and treatment systemsDesalination plants Cooling Water plants Water Injection plants DemineralizationPlants Condensate Polishing plants etc. The Company has also evolved basic engineeringfor standard modules for municipal sewage treatment plants as well as standalone recycleplants.

The following Water and Waste Management assignment was completedduring the year:

• Submission of Due Diligence Report for DPR prepared for NarmadaClean Tech.

During the year the Company achieved significant progress in followingassignments:

• Execution of entry level activities including development ofGhats and Crematoriums within Uttar Pradesh and implementation of Sewerage Infrastructureworks under the Namami Gange Programme.

• Technical and Financial Audit of Infrastructure works in variousUrban Local Bodies (ULB) of Punjab for Punjab Municipal Infrastructure Development Company(PMIDC).

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

• PMC Services for the Interceptor Sewer Project of Delhi JalBoard (DJB) for abatement of pollution in River Yamuna.

• Consultancy Services for Techno-commercial service forEnvironmental Feasibility Study for Construction of De-salination Plant at MoriKesarapally and Malleswaram of ONGC Rajahmundry Asset Andhra Pradesh.

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

• PMC services for ETP revamp at BPCL Mumbai Refinery.

The following assignments were secured by the Company in Water and

Waste Management sector during the year and are in progress:

• Preparation of DPR for Development of Treatment Plant andInfrastructure facilities at Jhagadia Pumping Station for Narmada Clean Tech.

• Preparation of DFR for Treated Effluent Pipelines fromAnkleshwar and Jhagadia Pumping Station to Gulf of Khambat for Narmada Clean Tech.

• DFR for development of treatment facilities and future pipelinesfor National Green Tribunal.

8.10 Nuclear Power

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

8.11 Alternate Fuel

In the Alternate Fuel segment EIL is providing EPCM services for AssamBio Refinery Project of M/s Assam Bio Refinery Pvt. Ltd. which is a pioneering effort forusing state-of-the-art technology for conversion of ligno-cellulosic bio-mass to ethanolon a commercial scale. The project is progressing well on engineering procurement andconstruction fronts.

8.12 Overseas Assignments

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

During the year the following overseas assignments were completed:

• Detailed Feasibility Study (DFS) for construction of an OilRefinery Plant with a Crude Oil Supply Pipeline Project in Mongolia from Ministry ofMining and Heavy Industry Government of Mongolia.

• Feasibility Study of crude receiving facilities at Ruwais ofADNOC Refining UAE.

• Design and Detailed Engineering services for EPC for enhancementof Steam Condensate System at ASAB-2 and Implementation of PCR PE1695 Segregation ofHydrocarbon Flare Headers at Unit 13 Habshan-1 for ADNOC Gas Processing UAE.

• Front End Engineering Design (FEED) for Upgradation of EthaneFlow meter Skid in Train I II & III (Ruwais) of ADNOC Gas Processing.

• PMC Services for AL DABBIYAH ASR Gas Development Project ofADNOC Onshore UAE.

• FEED/ Detailed Engineering for provision to route high C contentsales Gas from H2 to THAMMAMA-F Injection wells of ADNOC Gas Processing.

• Project Management Assistance (PMA) services for improvement ofFire fighting Facilities at Abu Dhabi Refinery for TAKREER UAE.

• Pre-FEED studies for Crude Receiving Facilities at Ruwais UAE.

• Consultancy Services for technical study on failure of emergencyshutdown valves in Ruwais Refinery (West) UAE.

• Design drawing and documentation of electrical engineeringworks for G-station HPH GT#12 GT#21 GT#22 & GT#31 system installation at Jebel AliDEWA UAE.

• FEED to divert excess MP fuel gas to MP gas header –Habshan complex of ADNOC Gas Processing.

• Consultancy study for Waste Water Management at Ruwais Refinery(East) and Abu Dhabi Refinery Division of ADNOC Refining UAE.

• Technical Consultancy services for CNG station equipmentpackages Phase-III of ADNOC Distribution UAE.

• Engineering services for relocation of Suction Valves in Hot OilPumps and resultant piping modifications at Condensate Units 211 and 411 in RuwaisRefinery (East) of ADNOC Refining UAE.

• Pre-FEED and FEED for enhancement of sales gas export from ASABfor ADNOC Gas Processing.

• FEED for provision of cross over among condensate stabilizersU27 and U200 of ADNOC Gas Processing.

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

• Conduct Study on Upgradation of DEO Flow Meter Skids in Train-12 and 3 in GASCO Ruwais UAE.

• Technical Support services for Structural Integrity/ Adequacycheck of existing Pipe racks at Habshan Plant - Phase 4 of ADNOC Gas Processing.

• Various Engineering Services Assignments under Technical SupportServices Agreement (TSSA) for ADNOC Gas Processing (2013-2018) .

• Training programs on Heat Exchangers and Heaters as well asengineering design services for BAPCO Bahrain.

EIL achieved substantial progress in the following overseasassignments:

• EPCM services for the prestigious Dangote Refinery andPetrochemical Project Nigeria comprising a 650000 BPSD grassroot Petroleum Refinery and830 KTPA Petrochemical Complex at Lekki Free Trade Zone Nigeria for Dangote Oil RefiningCompany (DORC).

• FEED for 3 MMTPA grass root refinery of Eastern Refinery Limitedin Bangladesh.

• PMC services for Rehabilitation and Adaptation of AlgiersRefinery of SONATRACH having new units of MS Block RFCCU SRU and revamp of exitingunits.

• PMC services for Rehabilitation of Ethylene Unit at SkikdaPetrochemical Complex of SONATRACH Algeria.

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

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

• DFR of 306 km White Petroleum Oil (Multiproduct) Pipeline fromChittagong to Dhaka for Padma Oil Company Limited Bangladesh.

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

• Additional PMC/ EPCM Services for new units namely DHDT SWSand ARU in Dangote Refinery Nigeria.

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

• Detailed Engineering services for DM & Distillate Waterinter transfer system for L&M stations for Jebel Ali power station complex of M/sDEWA UAE.

• Feasibility Study for energy reduction & optimization atRuwais Refinery (West) of M/s ADNOC Refining.

• Technical Support Services Agreement (TSSA) (2018-2023) forADNOC Gas Processing.

• Integrity Assessment of circulation Water Tank T- 5601 of ADNOCFertilizers UAE.

• PMC Services for Integrated small & medium sized projects(2018-21) for ADNOC Gas Processing.

• PMC and Engineering Services on Call Off Basis (2018-23) forADNOC Offshore UAE.

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

8.13 Turnkey Projects

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

The following OBE/ LSTK project assignments were commissioned duringthe year:

• Modification work at Hazira Plant Surat Gujarat under DamanDevelopment Project of ONGC on OBE basis.

• Installation of Lean Gas Compressor at Hazira Plant SuratGujarat of ONGC . The following OBE/ LSTK projects were in progress during the year:

• Offsites & Utilities facilities for Vizag RefineryModernization Project.

• BS-VI Project at Manali Refinery of CPCL.

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

• Revamping of SRU at Hazira Plant of ONGC in Gujarat.

During the year EIL was successful in securing the following projecton OBE basis which is now in progress:

• Execution of Residual Utilities and Offsites for RajasthanRefinery Project of HRRL.

9. Performance of Divisions / Departments

9.1 Process Design & Development

The Process Design & Development Division is responsible forproviding design services for grassroot as well as revamp projects in the fields ofRefineries Petrochemicals Oil & Gas & cross country Pipelines. The division isalso entrusted with design of heat & mass transfer equipment viz. columns heatexchangers fired heaters etc. & selection of material of construction for variousapplications failure analysis as well as residual life assessment services. Theactivities undertaken by the division include Configuration Studies using LP modellingtechniques preparation of Feasibility Studies Technology Evaluation Studies for licensedtechnologies Basic design of open art units EIL licensed units as well as utilities& offsite facilities Residual process design of licensed units Detail engineeringfollow up Pre-commissioning / Commissioning Plant start up assistance & Troubleshooting.

The division is also actively involved in supporting Marketing Divisiontowards securing new business for the Company from existing as well as new clients bothin India and overseas. Major assignments undertaken by the division during the year are asunder:

• Basic design of New DHDT (Diesel Hydrotreating) unit at IOCLHaldia. This Project has received the "PETROTECH 2019 Special Technical Award in theGreening of Oil & Gas Business and Sustainability category".

• Detailed Feasibility Study (DFS) for setting up a grassrootrefinery in Mongolia based on local crude. This is the first assignment completed by EILin Mongolia in a challenging climatic condition.

• PMC for FEED preparation at ERL Refinery Expansion ProjectBangladesh for Eastern Refinery Limited (ERL).

• Completion of Configuration Study and Preparation ofPre-Feasibility Report for 60 MMTPA West Coast Refinery of Ratnagiri Refinery andPetrochemicals Ltd.

• DFR for setting up grassroot marketing terminal facility forpetroleum products at Mauritius. The assignment was awarded to EIL based on thePre-Feasibility Studies (PFR) prepared by EIL. This project will establish theCompany's footprints in a new geographical location.

• Completion of DFR for PDH (Propane Dehydrogenation)/PP facilityat GAIL Usar which is a stepping stone towards a new technology.

• PFR for new crude oil tanks and single buoy mooring for ORPICSohar Refinery.

• Completion of DFR for Guru Gobind Singh Polymer Addition Projectat HMEL Bhatinda for capacity expansion of Dual Feed Cracker unit and downstream Polymerunits.

• Various Process Studies for Crude & Vacuum Distillation unitfor BAPCO refinery Bahrain.

• Study to develop CPP configuration for first grassrootIntegrated Refinery cum Petrochemical complex at Barmer Rajasthan.

• Process activities for Pipeline & LNG assignments undertakenby EIL through various modes of execution.

• Technical Feasibility Study of proposed modifications at GasProcessing Unit GAIL Vaghodia.

• DFR for revamp of LPG import facility at BPCL Uran.

• Feasibility Study for expansion of BORL Refinery Project to 15MMTPA with Integrated Petrochemical Complex.

• Revised DFR for Hydrogen based Residue Up-gradation Project(MREP Phase-II) HPCL Mumbai Refinery.

• DFR for CPCL's 9 MMTPA Cauvery Basin Refinery Project.

• PFR for Ethylene Cracker and Associated Facilities at Rassayanifor BPCL Mumbai.

• Pre-commissioning/ Commissioning of Utilities Systems ofAishwarya Project of IOCL Haldia Refinery.

• Pre-commissioning of DCU and CGOT of Aishwarya Project of IOCLHaldia Refinery.

9.2 Engineering

During the year the Engineering Divisions of EIL continued theirefforts towards providing optimized and value added services for all ongoing projectsconsistent with the client requirements and objectives of the Company. The variousdivisions maintained focus on key areas like System Improvement and quality ofdeliverables enhanced productivity by adopting knowledge from past data repeatability ofdesign enhanced software application and implementation of Electronic Data ManagementSystem (eDMS) along with improved information exchange and communication systems resultingin lesser manual interfaces. Major emphasis was laid on Automation and Standardization ofsystems implementation of Internal Audit and Monitoring and updation of specificationsstandards and guides. Some of the major activities undertaken are as under:

9.2.1 Equipment

Equipment Division provides optimal design and techno-commercialsolutions for Design Engineering and Procurement of various types of Rotating EquipmentStatic Equipment Packaged Equipment and Fired Equipment. Equipment Division through itsvast database/ standards/ specifications/ vendor lists/ knowledge pool ensuresprocurement of energy efficient equipment with advanced technologies in compliance withlatest International codes. Equipment division has also taken strides towardsimplementation of "Make In India" policy of Govt. of India in order to boostlocal manufacturing of critical & bigger size equipment. Details/ Highlights of majoractivities & achievements of the Equipment division during the year are:

• Engineering for procurement & execution of around 13Reactors 33 Columns 100 Exchangers 150 Vessels 18 Tanks 2 Spheres 4 Mounded Bullets15 Compressors 300 Pumps & 30 Other Packages for Cracker LLDPE Swing HDPEPolypropylene Butene-1 & Utilities and Offsite of HMEL Petrochemical Project.

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

• Engineering for procurement of Reactor mounted Ebullating Pumps13 MW Reciprocating Compressors (one of the biggest in India) and 2 MW Hydraulic PowerRecovery Turbine (one of the biggest HPRTs worldwide) along with around 10 compressors& 300 Pumps for Vizag Refinery Modernization Project (VRMP) of HPCL.

• Engineering for procurement of New Staged Flare System andIntegration of New flare system with existing HC flare system for forming common stagedflare system Condensate Recovery Packages Pitch Solidification Package ProcessChillers catalyst handling system VPSA Oxygen Plant Sulphur forming plant CompressedAir and Cryogenic Nitrogen Plant PSA Hydrogen Plant catalyst loading system Cranes etcfor VRMP of HPCL.

• Design engineering and engineering for procurement of Columnsfor CDU and VDU Coke Drum Extruder Package Reactors for Rajasthan Refinery Project.These columns and reactors are among the largest designed by EIL.

• Engineering for procurement & execution of Integrated ShaftDesign Centrifugal Air Compressor-Steam Turbine pumps compressors for various units ofPDPP Project of BPCL Kochi.

• Engineering for procurement of Recirculation air cooler forMumbai Refinery Expansion of HPCL Mumbai. Strict air control is required to avoidcongealing of process fluid at ambient temperature. Such an air cooler has been procuredfor the first time in EIL.

• Engineering for procurement & execution of Screw Pump (850KW) in HSVR service handling fluid of 1500 cSt for Sect P/L at KR & MR with AssociatedFacilities Project of BPCL Kochi.

• Engineering for procurement & execution of Steam Turbinedriven Integrally Geared Centrifugal Compressor (6.51 MW) for PDPP Project of BPCL Kochi.

• Replacement of conventional fireproofing by intumescentfireproofing for the first time in EIL history introduced in HMEL.

• Furnace packages designed for Dangote Refinery are the biggestever designed and engineered furnaces and are getting erected seamlessly in the projectsite at Nigeria.

• Design Engineering and procurement of skid mounted prototypedesalter package for development of Desalter technology.

• Combined Heat & Power (CHP) Plant based on unique Bio fuelfired boiler is being executed by EIL at Numaligarh for Assam Bio Refinery Project. Thefuels - bio coal stillage cake & stillage syrup - are byproducts of Ethanol Biorefinery having bamboo as feed. This is the first time in the world that such bio coalshall be fired in boiler.

• Engineering for procurement of Digester Raw Bamboo HandlingRotary drum vacuum filter and twin roll press filter Ethanol distillation and Dehydrationunit Fermentation package for Assam Bio Refinery Private Limited. This bio-fuel projectis first of its kind being executed by EIL.

• Submerged Incinerator System is being executed by EIL forPetrochemical complex of BPCL Kochi. It is a very rare kind of incinerator system whichcan incinerate multi streams of Waste Gases & Liquids simultaneously. This is firstsuch installation in India and only few installations exist worldwide with limitedsuppliers.

• Extensive modularization concept has been adopted in Dangote jobfor Boilers (4x400TPH) package HRSGs (8x110TPH) package and Flue Gas Steam Generators(FGSGs) (2x 380TPH) package considering geographical location of job site in Nigeria. ThisConcept has reduced the construction schedule by at least by 8-9 months (70-80% of totalduration).

• Engineering for procurement for mechanical equipment for NewDomestic Terminal Building at Leh Airport.

• Engineering for procurement & subsequent execution ofvarious drinking water pumps intake well pumps DG sets in seven cities of Odisha underAMRUT project.

• Engineering for procurement of DG set/ HVAC at InterpretationCenter near Sun Temple Konark and for Development of Tourist Infrastructure Facilities atKhajuraho Group of Temples Madhya Pradesh.

• Design & Engineering for procurement of VRF typeAir-conditioning System for Administrative Building (G+2 Green Building target toachieve minimum Gold rating) for MR-II Project of HPCL.

9.2.2 Electrical

Major responsibilities of Electrical Division include the following:

• Activities related to Project Engineering which include basicengineering e.g. Preparation of SLD Hazardous Area classification Electrical loadAnalysis Equipment sizing/cable sizing/MTPs Engineering for Procurement includingMRs/PSs/Vendor drawing review & tendering and Engineering for Construction includinglayouts.

• Specialized functions include Power System of Studies e.g. LoadFlow/ Short Circuit / Motor start up/ Harmonic Analysis / Transient Analysis/ Protectioncoordination/ Power factor improvement capacitor sizing Micro Processors BasedElectrical Control System Metering Protection Relay Coordination Cathodic Protectionsystem for onshore and offshore projects.

• Assistance in development of Electrical Suppliers/ Manufacturers& Contractors and their enlistment /registration with EIL.

• Adoption of newer technologies e.g. GIS Indoor switchboards fordifferent voltage levels starting from 3.3 KV to 400 KV IP based Plant Communicationsystem two wire control for MOVs Nitrogen Injection Fire Protection/ Fighting system fortransformers Intelligent MCC promoting & maximization of digitization in Electricalarena state of art technologies in Electrical power system etc.

Major achievements of the Division during the year include:

• Introduction & implementation of 400 kV & 220 kV GasInsulated Indoor Switchboard Panels for two mega Projects viz. Dangote Refinery and BPCLKochi BS-VI Project.

• Implementation of new specifications for XLPE insulated FireRetardant Low Smoke Extra High Voltage Cable suitable for working voltages from 66 KV to220 KV. This has been implemented in mega projects like Dangote Refinery HMELPetrochemicals and VRMP wherein 66 kV voltage cables have been extensively used.

• Use of energy efficient Electrical equipment/ systems has beeninitiated in a big way in all projects irrespective of industry type. As a responsiblecorporate having concern for global warming and with objective for reduction of carbonfoot print use of energy efficient motors of minimum IE2 type and 100% LED fixtures forlighting of process/offsite and utilities areas is being implemented in all projects. Thishas been made a standard practice for all projects being handled. For one of the projectsenergy efficient motors of category IE3 have been deployed. Besides this all distributiontransformers having rating up to 2500 kVA 33 kV (Primary Voltage) complying to star 1(Efficiency Class) rating as per latest Govt. of India Gazette Notification orderNo.S.O.4062(E) S.O.513(E) are being procured and used in all current projects underexecution. The standard specification for Distribution Transformers has been revisited andrevised accordingly.

• DFR for NALCO Angul Aluminium Smelter Expansion Projectinvolving conversion of existing 4 nos. Potlines with capacity enhancement of eachPotline from 180 KA to 220 KA and one no. new Potline of rating 500KA 1560 V DC. Totalelectrical power for this project is estimated to be approx. 1000MW.

• Development and implementation of 3 nos. Standard Specificationsfor Cathodic Protection (CP) of Storage Tanks Underground vessels and Mounded Bullets.

• Development of Standard Design Basis & Data sheets for CPSystem – Plants and Pipelines.

• Revamping the existing CP system for LPG mounded storage tanksat HPCL Mangalore Refinery.

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

9.2.3 Instrumentation

Instrumentation Division has always been in the forefront with respectto adoption of latest digital technology. Various state-of-the-art measures likeFieldbus-based Distributed Digital Control Systems (DCS) Emergency Shutdown System (ESD)alarm management system asset management system CCTV systems gas detection system &smart field instrumentation advance diagnostic analysis system for critical rotatingequipments and monitoring of all the non- critical pumps centrally through wirelessinstrument & gateways in the DCS System are being implemented in all on-going majorprojects like VRM Project of HPCL DHT & GTU Project of BPCL Mumbai Refinery and PDPP& MS Block project of BPCL Kochi Refinery. EIL is also leading in implementing IIoT(Industrial Internet of Things) in mega refinery and petrochemical projects like HRRL forpump seal monitoring rotating equipment monitoring PSV and Flare valves leak monitoringthrough acoustic sensors. In the on- going HMEL Petrochemical project Cloud baseddetailed engineering until FAT simulation of plant graphics and logics through IIoTPlant Development Model through OTS (Operator Training Simulator)

Virtualisation Server & PC and usage of Universal I/O is alsoimplemented. The Division is contributing towards digitalization and end to end work flowintegration 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)enabling smooth work flow from each of these modules. Conversion of in-house sizingsoftware of instruments into web- based software to upgrade to latest technology &integration is underway as a continuous quality improvement system along with updating ofstandards and specification. For the BOM program incorporation of all job standards andintegration of work flow of Instrumentation with IPMCS of Piping and SORPS software hasbeen carried out.

Instrumentation Division is also participating actively in Make InIndia initiatives of EIL by enlisting Indian suppliers who maximize domestic content andoptimizing Original Equipment Manufacturers' scope in high tech areas like AnalysersMetering Skids Communication systems Radars and electronic transmitters.

9.3 Project Services

9.3.1 Cost Engineering

Cost Engineering Department provides cost related services for variousprojects in all fields of operations from inception to commissioning and beyond fordomestic as well as overseas jobs. Cost Engineering provides services such as preparationof capital cost estimates and financial/ economic analysis for diverse activities rangingfrom technology selection to preparation of feasibility reports and option study estimatesfor investment decisions pertaining to projects handled by EIL in various areas likeRefineries Petrochemicals Fertilizer Cross country pipelines Power projectsMetallurgy Mines Strategic Storage Offshore Oil & Gas Infrastructure (such asNamami Gange AMRUT Data Centers Airports) etc. The Department provides cost estimatesfor procurement and tendering assistance during price negotiation cost monitoring andcontrol during execution of projects under conventional and LSTK mode of execution. Italso prepares cost estimates for bidding in EPC contracts. Cost Engineering is alsoproviding independent services like Project cost estimation feasibility studies andreview of the cost estimate prepared by others.

9.3.2 Planning

The Planning Division continued to provide planning schedulingmonitoring risk management and material control services to various projects. Usingstate-of-the-art tools and its database the department caters to diverse projectexecution roles of the Company viz. EPCM PMC LSTK/ OBE modes. The department alsoprovides project monitoring services to the Ministry of Petroleum and Natural Gas.

9.4 Supply Chain Management

EIL offers integrated Supply Chain Management Services through itshighly effective team of Supply Chain professionals. The functions of SCM are verycritical with respect to timeliness of deliverables customer satisfaction and ensuringhigh standards of quality. Different roles are assigned to different Departments withinSCM viz. SCM - C&P responsible for indenting and Pre-award process and SCM -Inspection and Shipping for handling post-award process. SCM - PDD is a unique functionwhich takes care of Supplier & Contractor Enlistment.

Key Areas

• Contracts & Purchase

• Procurement Development Department

• Inspection Services

• Expediting & Monitoring Services

9.4.1 Contracts & Purchase

Contracts & Purchase division of SCM offers complete range ofProcurement Services to Clients to ensure timely availability of desired materials/services at site as well as fulfils its own in-house procurement requirements. Handlingmultiple global clients and their different methodologies for sourcing positions EILuniquely to have a comparative analysis and evolve best practices across the new projectsbeing executed. This provides flexibility and agility to cater to the dynamic needs ofvarious clients/projects. SCM has been able to successfully provide support to many globalclients (Public & Private) through its expertise in domestic and global contracting/procurement its competent manpower well defined procedures rules policies & astrong supplier/ contractor database. Entire Procurement process is carried out inconsonance with Public Procurement Principles viz. Transparency Equity and Fairnessensuring desired quality within the designated time frame at the most competitive pricesand against comprehensive competition.

In order to enhance efficiency effectiveness and transparency of theprocurement processes SCM has leveraged latest IT tools/ technologies to develop packageslike Electronic Procurement System (EPS) reducing procurement cycle and errors. Itautomates various stages of Contracting/ purchasing viz. Need Identification RFQpreparation Inviting Bids Processing bids and award of orders/ contracts.

Ordering highlights for Financial Year 2018-19:

` 1247 Crore of direct purchase and contracts on suppliers/contractors for various LSTK/ OBE/ Depository projects.

` 156 Crore of direct purchase and contracts for In-houserequirements of EIL.

` 17213 Crore were placed for other projects of various clientswhere EIL worked as a consultant

Total procurement of ` 18616 Crore

SCM handled in total 2207 cases (MRs + Tenders) during the year.

EIL has always played a key role in and remained committed towardsimplementation of various procurement policies of the Govt. of India including PublicProcurement Policy (PPP)-2012 for Micro and Small Enterprises ensuring increasedparticipation of MSEs in Company's procurement and overall development of the MSEsector by giving special preference to MSE owned by SC/ST and woman entrepreneurs.

Ensuring more participation by MSE players during FY 2018-19 EIL hasbeen able to procure goods and services of र 219 Crore from MSEs which is around 34%of the total value of direct purchase orders for goods and services contracts placed byEIL.

In addition to MSE sector SCM division has always been playing a majorrole in developing the Indian Industry as well as Start-ups through awareness drivesseminars and vendor meets. Under the Government of India's "Make In India"drive EIL has taken several steps to increase the local industry participation andprovide encouragement to foreign companies towards setting up plants in India. Under GOIpolicy many bidders were given preference though Purchase Preference-Local Content(PP-LC) Policy Domestic Manufactured Iron and Steel Policy (DMI-SP) and domesticallymanufactured Electronic and Telecom products.

9.4.2 Procurement Development Department

SCM – PDD a specialised department within SCM is responsible fordeveloping new suppliers/contractors and monitoring existing suppliers/contractorsthereby ensuring the Quality and Value of Money in terms of increased competition. Acomplete end to end EPS sub-system of Supplier Relationship Management forSupplier/contractor related processes like Enlistment Enhancement Revalidation andPerformance monitoring. A new interactive website for supplier/contractor Enlistment withmore features and information was also launched in the last year. The process ofSuspension/ Banning was automated and now complete digital transparency is achieved inthis critical process.

During the year EIL organized two Supplier/ Contractor meets andparticipated in five programs organized through various platforms under Ministry of MSME.EIL with its robust supplier and contractor enlistment management system has been ableto develop transparent accountable system and processes for development of manufacturingcapacity. During the year 43 new Suppliers and 26 new Contractors were added in EILMaster Supplier/ Contractor List wherein 2 new Suppliers were added under "Make InIndia". Additionally for 106 nos. Suppliers and 27 nos. Contractors Range/ProductProfile was upgraded.

9.4.3 Inspection & Shipping

Inspection Department is a multidisciplinary team of engineers withgreat experience professional judgment & compliance to codes/specification/practices. The entire gamut of Shipping activities (Customs clearanceTransportation planning and control) of a project are determined Co-ordinated &executed for meeting specific project deadlines by a team of experienced personnel in thefield of Logistics. During the year 2018-19 Inspection Department catered to inspectionof around 5500 orders worth ` 18000 Crores including Thousands of Kilometres of Pipes andLakhs of Fittings which were first of its kind:

FCHCU Reactor of 1700 MT in single piece having Wall Thickness of250 mm fabricated at L&T Hazira.

CDU Column having a diameter of 13 meters and length of 74 Metersweighing 950 MT fabricated and shipped in single piece from L&T Hazira.

Reactors for RFCL in specialized metallurgy for Fertilizer Sectorand Air Fin Coolers of Incoloy 625 for IOCL Panipat that have been fabricated for thefirst time in India.

Special Valves that have been tested for Fugitive Emission test tomeet the stringent guidelines of Ministry of Environment Forest and Climate Change(MOEF&CC).

Shipping department surveyed the routes for transportation of largeequipment in single piece and developed procedures for hassle free transportation. Specialbarges that can travel under limited clearance below the bridges were fabricated fortransporting heavy equipment through river to BPCL Kochi site where transportation overthe bridges for such heavy equipment is not allowed. Several ODCs were shipped in singlepiece from various locations to Project Site across India through Sea/Road Transportation.

9.5 Construction

The Division offers services for Construction Management in totalityincluding Contract Administration Construction Quality surveillance Feedback AnalysisHSE and Warehouse Management for various projects of EIL withstanding diverse challengesand local impediments associated with climatic conditions difficult terrain and spaceconstraints etc. which are unique to the nature of the project.

During the year 2018-2019 Construction Division continued to provideConstruction Management Services for various clients at more than 70 diverse domesticproject locations and 2 overseas locations.

Concurrent prestigious commitments for the Division include DangoteRefinery in Nigeria Vishakh Refinery Modernization Project Petrochemical Project andBS-VI project of M/s HMEL Revival of Ramagundam Fertilizer Complex BS-VI projects ofIOCL at Vadodara Panipat Haldia Mathura Bongaigaon and Digboi BS-VI project of CPCLat Chennai PDPP & MSBP of BPCL at Kochi MREP and MR-II project of HPCL at MumbaiAishwarya project of IOCL Haldia Refinery Palanpur - Vadodara Pipeline Project of HPCLBS-VI of MRPL at Mangalore NBPS-II of OIL Mumbai - Manmad pipeline of BPCL APL-NamrupGTU of BPCL Mumbai Jamnagar-Loni pipeline of GAIL KSPPL Kochi LGC Hazira Namami GangeNFC Kota and AMRUT Odisha.

The Construction Division leverages its highly skilled and motivatedteam for establishing and monitoring adherence of Construction Quality Management system.The system 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 Division implemented a host of innovative constructiontechniques and improvised equipment/machineries to minimize construction schedule acrossproject sites. Some of them are outlined 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 analternative to hazardous 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 and Environment standards in the execution of projectswas epitomized by the multitude of accolades received from clients during the year:

• 28.5 Million LTA free man hours at Aishwarya project of IOCLHaldia.

• 15 Million LTA free man hours for PDPP Kochi.

• 13.6 Million LTI free man hours at Algiers Refinery Project.

• 7 Million LTA free man hours at DHDT NRL Project.

• 7 Million LTA free man hours at BS-VI project of GGSRLBathinda.

• 6 Million LTA free man hours at BS-VI project Gujarat.

• 5 Million LTA free man hours at Nuclear Fuel Complex Kota.

• 4 Million LTA free man hours at LPG Import Facility Haldia.

• 3 Million LTA free man hours at BS-VI Project Haldia.

9.6 Environmental Engineering

EIL is committed to ensuring compliance to all health safety andenvironment requirements during delivery of products/services to customers. Minimizingenvironmental impact by conserving resources reducing waste generation and preventingpollution in all our activities have always been an integral part of our policy. TheCompany has also been providing solutions for water resources management while protectingor restoring our major water ecosystems. EIL helps enable the adoption of innovative &integrated water and wastewater management for industries & municipalities whileworking to increase environmental social and economic benefits. EIL has executed severalhundred projects in diversified fields of environmental engineering including water &wastewater treatment; effluent recycle & reuse; Environmental Impact Assessmentstudies; environmental feasibility studies; air quality assessment modeling &control; environmental management plans; etc.

Some of the major projects undertaken by the Company in the area ofEnvironmental Engineering include the following:

• PMC & OBE services for HRRL Rajasthan Refinery Projectincluding effluent recycle & reuse to meet zero liquid discharge concept to minimizethe fresh water consumption by refinery.

• Consultancy services to CPCL CBR Project for preparation ofbasic engineering design packages for their sea water desalination plant and integratedeffluent treatment & recycle facilities.

• PMC services for AMRUT project in Odisha (Atal Mission forRejuvenation and Urban Transformation) for construction/ rehabilitation of Raw WaterTreatment Plants.

• Environmental Clearance from Ministry of Environment Forest andClimate Change was successfully obtained by EIL for BPCL‘s 2G lingo-cellulosic basedEthanol Plants at Bargarh (Odisha) HMEL's Fuel Quality Upgradation Project atBhatinda Refinery Coal Conversion of Iron ore to Coal terminal of Kamarajar Port LimitedAdditional tankages projects at Sidhpur Bareja Kandla and Hazira of IOCL Expansion ofKochi refinery complex by manufacturing petrochemical product of BPCL IOCL's MEG/ERUPlant in Paradip Refinery cum Petrochemical complex and expansion of BPCL's KochiRefinery Complex.

• EIL has been accredited by Quality Council of India (QCI) forcarrying out EIA studies in India in fourteen sectors. The accreditation is valid up tothe year 2019.

9.7 Research & Development

R&D activities are the cornerstone of a knowledge-drivenorganization like EIL . It is a matter of great pride that EIL has rendered stellarservices to the country in not only imbibing technology but also developing its owntechnology independently as well as in association with other companies. The Company ispursuing developmental activities both in-house and in collaboration with academicinstitutes like IIT Delhi IIT Kanpur IIT Roorkee IIT Madras and other R&Dorganizations like IOCL (R&D) CSIR-IIP BPCL(R&D) HPCL(R&D) etc. Apart fromthese established R&D organizations EIL (R&D) has also been collaborating andcooperating with small companies to promote the creative ideas generated by them.

During the year the Division has undertaken the following initiativesfor development of new capabilities and up-gradation & commercialization of existingcapabilities:

Technology development projects initiated:

• Development of Novel Chimney type air distributor for FluidizedBed Gasifier handling high ash coal.

• Computational Fluid Dynamics (CFD) studies of new Air InjectionSystem for monitoring and controlling stack temperature in Sulphur Recovery Unit.

• Gasification studies of high ash coal in pilot Coal Gasifier.

• Kinetic model development for slurry phase hydrocrackingreactions.

• Development of slurry phase reactor model.

• Development of high level Oxygen Enrichment (O2>35%)

Technology for capacity enhancement of Sulphur Recovery Units (SRU).

• Development of Incinerator waste heat boiler bypass system fortrouble free operation of SRUs.

• Development of Process Scheme and reactor design for productionof Dimethyl ether (DME) from Methanol.

• Development of process for utilization of CO2forneutralization of alkaline stream in Effluent Treatment Plant.

• Recovery of Ammonia from refinery sour gases for production ofAnhydrous Ammonia.

• Technology Development and Demonstration for production ofMethanol from Syngas by coal gasification.

• Recovery of low level heat from process streams.

• Development of Organic Rankine cycle (ORC) technology.

• Development of Population Balance Model for Particle SizeDistribution changes due to attrition during pneumatic transport of coal – A tool forscale up and design of gasifier feeding system.

• Development of 3D CFD model for Fluidised Bed Coal Gasifier.

• Setting up of experimental facilities for water treatment byelectrocoagulation.

• Setting up of experimental facilities for study of attrition ofsolids in solid processing systems.

Technology commercialization efforts:

• Commissioning of SRUs (3 x 180TPD) of BORL.

• Commissioning of both Tail Gas Treating Units (TGTUs) of BPCLMumbai Refinery licensed by EIL.

• Performance Guarantee Test Run of Sulfur Recovery Units (SRUs)at BPCL Kochi Refinery licensed by EIL .

• Design of Oxygen enrichment facilities for capacity enhancementof two SRUs upto 25% ( 2x 421 TPD) at BPCL- Kochi.

• Basic Engineering Design Package (BEDP) preparation for StraightRun LPG treating and CR LPG treating for HRRL Refinery project.

• BEDP preparation for EngHOG unit at HRRL Refinery project.

• Commissioning of EngHOG unit at BORL licensed by EIL.

• Implementation of Indjet unit at IOCL Barauni.

• Implementation of Process Integration and Solar Integration atGGS ONGC Mehasana.

• CFD Study of Feed Distributors of Fluid Bed Reactor System forM/s Jubilant Life Sciences Ltd.

• CFD study for M/s ADNOC Fertilizers Abu Dhabi as part ofIntegrity Assessment Study for their Circulation Water Tank.

• Energy Efficiency Improvement Studies for 15 PSU Refineries.

• Energy Efficiency Improvement Study for Ruwais Refinery ofADNOC Abu Dhabi.

• Supply of PARLPAK (as part of EIL-Kevin MOU) in Amine AbsorptionColumn 307-C-01(M) of FCC Gasolene Desulphurization unit of IOCL-Mathura.

Initiatives taken for strengthening technology tie ups:

Following efforts are made to focus on collaborative R&D work andstrengthening tech tie-ups:

To take advantage of research being done at various internationalresearch consortia EIL has renewed the existing membership of the following InternationalResearch consortia:

• Process Science Technology Center (PSTC) an industry academiacollaborative research program initiated by University of Texas USA .

• Fractionation Research Incorporated (FRI) a non-profitcooperative research organization based at Oklahoma USA.

• Process Integration Research Consortium (PIRC) University ofManchester UK.

• MOU signed with BHEL for joint development of Coal to Methanolproduction technology by gasification of Indian Coal.

• MOU signed with BEE for Energy Audit of Petrochemical Plants.

• MOU under process with CSIR NCL-Pune for joint development ofMethanol to Dimethyl Ether through dehydration route.

Patents / Trademarks filed / granted:

To safeguard EIL's knowhow and technologies the following 7patents have been filed during the year:

• An apparatus and process for neutralization of alkaline wastewater using CO2 enriched stream.

• A system for continuously operating the Tail gas generation unitand the process for the same.

• A process and system for capacity enhancement of SRU byutilizing waste nitrogen oxygen and steam.

• A process for dimethyl ether production from methanol.

• A system and a process for efficient energy recovery from lowtemperature heat source.

• A system and a process for high pressure temperature andmoisture content synthesis gas sampling.

• A system and a process for purification of syngas from high ashIndian Coal for Methanol production along with recovery of high purity CO2

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

• An apparatus and method for treatment of a sour stream.

• Novel process for selective removal of Sulphur compounds fromLPG with caustic.

• High-pressure fluidized bed gasifier and gasification processtherof

• High level capacity enhancement of Sulphur recovery plant.

With this the total number of granted patents stands at 28 with 25 nos.of pending patent applications.

Trademarks applied and granted:

Two applications made earlier for registration of Trademark pertainingto in-house technologies to enhance the brand image of the company have been grantedduring the year.

• Trademark EngCHP granted on 23.09.2018: permits real-timemodelling and monitoring of the energy use in process plants to make allocation decisionsaccurately thus increasing profitability.

• Trademark EngEJCY granted on 23.09.2018: is a static and compactdevice for recovering and separating a low pressure fluid.

9.8 Information Technology Services

Information Technology Services (ITS) Division continued to makeadvances providing high-tech IT enabled services to EIL's mainstream activities bydeveloping/ implementing IT solutions to deliver better quality services with emphasis onincreased efficiency and improved productivity.

As part of commitment towards digitization and automation in workexecution the following initiatives were taken during the year:

• Online Human Resource Management System (HRMS) was successfullycompleted. With this HR system is now end to end automated.

• EIL has achieved ISO/IEC 27001:2013 Accredited Certification forthe Management and Operations of its Primary Data Center (PDC) located at its HeadOffice New Delhi from M/s DAS Certifications accredited to United Kingdom AccreditationService (UKAS).

• New state-of-the-art cloud-based Email System of NIC has beenlaunched in EIL. The new Email System provided enhanced security performance and mailboxsize thus enabling better communication and collaboration.

• With a view to creating future-ready infrastructure the Companyhas enhanced Internet bandwidth by multifold to 200 Mbps and also enhanced IPVPN bandwidthsubstantially at various sites.

• In keeping with the Government of India's cyber securitymandate the existing end-point cyber security solution has been upgraded to providelatest security features and updates. Further the coverage of the solution has beenexpanded to all offices in the country which are on IPVPN network.

• The workflow based Mechanical completion (MC) andPre-commissioning Activities Management Software (PCAMS) developed wholly by EIL hasbeen upgraded and being in use for all Refineries Petrochemicals and Fertilizers plantsfor commissioning. The online system provided transparency quality and with monitoringtools enhances the productivity. Various Clients including IOCL BPCL CPCL RFL and sitecontractors of various groups have benefitted for all BS-VI projects from this software.

• Online web based software developed for IT Asset managementincluding Data Center operations for life cycle management of IT assets from acquisitionto eWaste.

• New website launched for Supplier Enlistment Enhancement andrevalidation.

• Online web based software developed for Bill Tracking system toautomate work flow for end to end bill processing.

9.9 Sustainable Development

EIL's sustainability mandate has evolved from compliance toenvironmental regulations and norms in a way that make it a responsible organizationtransparent to all its stakeholders. The Company's project designs supportsustainability right from conceptualization to plant commissioning and subsequently thecommercial operation. Energy efficiency resource optimization and safety of plantpersonnel and society at large are the cornerstones of our business operation. They alsoensure business continuity.

EIL has refocused its engineering philosophy and business models toachieve long term sustainable growth. It has also initiated evaluation and reporting ofperformance on the triple bottom lines pertaining to economic social and environmentalaspects. The sustainability initiatives at EIL shall definitely propel the organization onan upward growth trajectory.

Separate Report on Sustainable Development is annexed to this Report.

9.10 Corporate Strategy & Business Development

Corporate strategy and plans for diversification are imperative for anyorganization with a vision and long term perspective. Corporate Strategy and BusinessDevelopment (CS&BD) division performs the role of evaluating market opportunitiespursuing business development initiatives venturing into new geographies initiatingtie-ups with licensors/vendors/collaborators and augmenting the portfolio of EIL bydiversifying into sunrise sectors.

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

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

The CS&BD Division has initiated sustained business developmentactivities in sectors like Bio Fuels Water and Waste Water Treatment UrbanInfrastructure like SMART Cities LNG Terminals Ports and Harbours Defence etc as apart of possible diversification initiatives thus aligning with Government of Indiainitiatives.

Through a self sustaining seeding exercise and extensive outreachapproach Corporate Strategy & BD division is focused towards enhancing the footprintof EIL and augmenting the current business portfolio.

10. HSE Management System

EIL sustained its OHSAS 18001 (Occupational Health and SafetyAssessment Series) and ISO 14001 (Environmental Management system) certifications duringthis year. Apart from ensuring effectiveness of the HSE Management System thesecertifications provide an edge in securing business especially overseas.

Corporate HSE department audits the HSE Management system of alldivisions/departments including construction sites. The results of these audits arereported to the Management through Management Review Committee (MRC) Meetings wherein theperformance of the HSE Management system and opportunities for improvement are presented.

On the operations front Company has put in place EmergencyPreparedness and Response Plans (EPRP) across all its office locations to secure thesafety of its employees and assets including IT assets. Regular mock drills are beingconducted to test and improve the preparedness towards the emergencies.

On the engineering front HSE aspects that are to be addressed in thedesign engineering phases are built into the procedures/specifications of variousengineering departments. Exhaustive HSE checklists separately for Health Safety &Environment are in place to ensure that these aspects are complied positively duringprocess design and engineering phases by all divisions and departments.

Being a renowned engineering consultant in the hydrocarbon sector EILdeploys proven risk assessment methodologies like HAZOP RRA QRA SIL and SIMOPS etc toensure the process safety of the plants being designed.

On the construction front the specification for HSE Management atconstruction sites which specifies the HSE requirements to be complied by constructioncontractors has been revised during this year in line with the current trends and toimprove the HSE performance. Award to construction sites based on HSE performanceIssuance of appreciation certificates to best performing construction contractors are acouple of other examples of improvements implemented during this year based on bothquantitative and qualitative scoring mechanism. During the year EIL also celebratedNational Safety Week across its offices and sites and the celebrations were used as aplatform for improving safety awareness amongst the employees.

11. Quality Management System

Quality is inbuilt into our processes workplace deliverables andservices. The Quality Management System (QMS) in respect of the Company's serviceshas been reassessed this year as per the requirements of ISO 9001:2015. Post audit theQMS of the Company continues to conform to ISO 9001:2015 and the certificate of approvalis valid up to 13.10.2021.

Important ingredients of our quality initiatives are effective &comprehensive Internal Quality Audit process planned customer perception surveysanalysis of feedbacks from stakeholders and regular reviews & directions from the MRC.Regular monitoring is done to analyze the data & feedback for recommendingimprovements in processes deliverables and QMS to reduce costs shorten cycle time crossfunctional issues improve visibility and credibility without affecting the environment.QMS implementation and its effectiveness have been further increased by computerization ofcertain processes through in-house developed software.

During the year the Quality Management System of Company's UAE(Abu Dhabi) office was also independently audited and reassessed for certification andpost-audit the Quality Management System of the Company continues to conform to theInternational Standard ISO 9001:2015. The certificate of approval is valid up to30.03.2022.

In addition the Company participated as a prominent and active memberin various committees of Bureau of Indian Standards for formulating products and qualitysystem standards.

Quality Management System of the Company provides the competitive edgein securing and executing projects with focus on full customer delight.

12. Risk Management

The objective of the corporate Risk Management function is to ensuresustainability of the organization by professionally managing the Enterprise Risks.Enterprise Risk Management (ERM) involves identification assessment analysis mitigationand monitoring of the Risks. The ERM system of your Company performs the above mentionedRisk Management activities across the business functions of the organization. EIL'sRisk Management framework is based on ISO 31000 (Risk Management Principles andGuidelines) and meets regulatory requirements namely SEBI LODR Companies Act 2013 andDepartment of Public Enterprises (DPE) Guidelines. Risk Management process has also beenintegrated with the Quality Management System requirements as per ISO 9001. The RiskManagement framework of your Company is overseen by the Risk Management Committee of theBoard.

Key risks across various business processes namely ProcurementConstruction Project Management Marketing Human Resources Legal Accounts &Recovery have been identified. During this year EIL reviewed the Key Risks with respectto the current business environment. The changes in the Key Risks have been approved bythe Risk Management Committee of the Board. Mitigation plans have been developed for thenew risks and are being deployed across the organization. Also the Mitigation plans ofall other Risks have been reviewed and revised with respect to the current scenario. Anindependent group (Corporate Risk Assurance) audits the implementation of these mitigationplans regularly and the results are presented to the Risk Management Committee of theBoard. Your company uses its in-house developed software package Enterprise RiskManagement System (ERMS) to conduct these audits across multiple locations anddepartments.

Being a Project Management organization Project Risk Managementframework has been put in place so that project specific risks are identified assessedand mitigated. Regular Risk Management meetings are conducted and reports are issued tothe stakeholders.

The status of Enterprise Risk Management (ERM) & Project RiskManagement (PRM) Systems is presented to the Risk Management Committee of the Boardregularly.

A digital newsletter ‘Risk Screen' is being issued to allemployees to promote awareness and to sustain & improve the Risk Management culture.The newsletter covers case studies survey reports and best practices on Risk Managementapart from apprising the employees on the Risk Management updates within the company.Employees across all levels are being continuously trained on Risk Management to improveawareness levels and increase their contribution and involvement towards the RiskManagement function.

EIL is continuously improving its risk management capabilities in orderto protect and enhance the interests of its stakeholders.

13. Vigilance

During the year various CTE type examination of EIL's jobsrandom inspection of in-house contracts/ purchases scrutiny of Immovable PropertyReturns investigation of complaints from different sources etc. were carried out by theVigilance Department with the focused objective of ensuring conformity to the Companyprocedures CVC and Government guidelines. For systemizing the work various rulesregulations and procedures were reviewed during the year. The observations reported byCTE/CVC were examined and necessary actions were taken. System improvements were suggestedto the Management and necessary measures were undertaken for modification/ improvement byway of issuance of around 17 system improvements.

As part of Vigilance Awareness Week-2018 (VAW-2018) a series ofprograms were held in line with this year's theme "Eradicate Corruption-Build aNew India." During the VAW-2018 two seminars were organized on the topic"Changing Business Practices under Competition Law" and "Whistle BlowerMechanism Protection & Tool of Good Governance" with an intention to createawareness about Public Procurement its imperatives and precautions to be taken. As partof VAW-2018 celebration and to spread Vigilance awareness amongst students and teachersEIL organized drawing competitions in two schools in Delhi in association with "TheHindu Group of Publications". Besides all the above awareness programs /competitionswere also organized involving local community at Colleges/ Schools in the local areasaround various project sites.

This year also Vigilance Department released the journal named"ABHIJATASYA" containing messages from C&MD CVO and Directors on theoccasion of VAW-2018. Advisories issued by the CVO and a few case studies from otherorganizations/ EIL have also been included in the journal for reference. A "VigilanceStatement" was also released during VAW-2018.

As per directions issued by the Central Vigilance Commission and theDepartment of Public Enterprises details of vigilance activities were presented to theBoard for the period ending June 2018 and December 2018.

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

Integrity Pledge

Online System has been developed for taking ‘IntegrityPledge' by EIL officials/ family members and the visitors coming to EIL-HO andEIL-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 alreadyin place in the Company and being monitored regularly against the set targets. Clearanceof vendors' bills on ‘First in First Out' (FIFO) under Bill Trackingsystem (BTS) is ensured. BTS has provision for details about pendency of vendors'bills.

Complaint Handling Policy (CHP)

As per CVC Guidelines EIL has formulated Complaint Handling Policy(CHS) to resolve complaints/grievances from public contractors vendors suppliers etc. Aweb portal for online complaint handling is available on the Company's website andComplaint Boxes are also placed in various EIL offices which are regularly monitored byVigilance with respect to the status of complaints.

Job Rotation

Job rotation of sensitive posts is being done and reporting of the sameis being done on monthly basis. Vigilance has requested for development of an onlinesystem for monitoring of status of rotation on sensitive posts and the same is beingdeveloped by HR & ITS.

Integrity Pact

EIL is committed to higher ethical standards in contracts andprocurement as well as transparency in all of its business dealings. In EIL IntegrityPact Program was adopted in November 2011 for all Contracts & Purchases on EIL'saccount for enquiries having threshold value ` 1 Crore.

Online Vigilance Clearance (OVC) & Scrutiny of IPRs

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

14. Finance

The Company continued its strong cash generation driven by businessperformance. The efficient financial and cost management system continued to facilitatecash generation as well as creation of wealth. EIL optimized the returns on cash reservesby deploying cash surplus in safe and liquid instruments as per the approved investmentpolicy of the Company.

15. Internal Audit

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

16. Corporate Management Information System

To help improve Resource Engagements Automation of Employee

Centric Systems and Real-Time Management Information on both ProjectsManpower and Future Workload aspects Company has created a Corporate ManagementInformation System Department having multi-disciplinary professionals. During the yearseveral automated software modules were launched by the Department resulting in improvedresource engagement and optimization along with various automated reports for the CompanyManagement.

17. Human Resource & Industrial Relations

Human Resources of any organization play a crucial role in overallorganizational performance and quality of services that the employees deliver has a directbearing on the success of the organization. HR Directorate strives to develop a motivatedworkforce which is committed and aligned with the organization's strategic goals andobjectives. To ensure an enabling work culture and an engaged work force employee-centricpolicies and development initiatives have been adopted from time to time. The policies areregularly re-visited and updated to keep them relevant.

HR has enhanced its role as a strategic business partner and isdirectly associated with the project verticals providing services in delivery of projects.

As on March 31 2019 EIL has 2768 employees including 2339professionally qualified employees. Approximately 2.24% of our employees are locatedoutside India functioning in international work environments.

Talent Acquisition

Our talent acquisition strategy aims at identifying and developing awell equipped talent pool to address both short term and long term requirements. Diverserecruitment models are adopted to meet our dynamic business needs with intake of freshtalent domain specialists short term hiring through empanelled agencies fixed termhiring and on boarding consultants/advisors. Planned job rotation has been implemented foroptimum utilization of available human resources.

Performance Management System

In the area of Talent Assessment and Appraisal EIL has in place arobust and transparent Performance Management System that gives weightage to bothperformance & potential and ensures holistic assessment. The Performance ManagementSystem is an online process. The outcome of Performance Management System is used forcareer progression performance related pay training & development and successionplanning.

Employee Welfare

During the year efforts were made for aligning welfare measurestowards enhancement of work life balance for employees. Various employee welfareinitiatives were taken including talk cum interactive sessions on emerging health issuesand building awareness on lifestyle enrichment matters extension of medical benefitsthrough empanelment of hospital & diagnostic centres etc. besides sports and otherfamily get-togethers for enhancing the quality of life.

Sports

Providing a supportive role in health and fitness EIL promotes aculture of sports by organizing weekend sessions and interdepartmental tournaments ofvarious sports for participation in PSPB Tournaments. EIL organises indoor sports likeTable Tennis Carrom and Chess during lunch time & 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 12 PSPB tournaments during the year. EILalso successfully hosted PSPB Badminton Tournament at Pullela Gopichand Badminton AcademyGreater Noida from 29 January to 2 February 2019.

Annual Awards

Recognizing the contribution of team(s) and individuals employees werefelicitated in following categories of Annual Awards on Independence Day:

• 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/domainknowledge.

For 2017-18 a total of 35 employees were awarded in differentcategories.

Training & Development

EIL being a technology driven organization strongly believes thattraining and development of personnel is strongly correlated to the growth of the Company.As a talent driven and knowledge based consultancy organization it is important for EILto enhance the capabilities of its human capital by increasing domain knowledge andbehavioural competency to maximize contribution towards achievement of organizationalobjectives.

Training in EIL focuses on domain behavioural and leadership trainingthrough a well-designed Annual Training Calendar wherein inputs for training requirementare taken from Heads of Departments/Divisions. Faculties were identified for specialistdomain training Aarohan (Leadership Development Program) and some of the behavioural andgeneral training through internal resources during the year. Management DevelopmentProgram and specialized soft-skill training programs were conducted through empanelledagencies. 73 numbers of in-house domain training programs attended by 1180 participantswere conducted during the year. Some of the important training programs organised includedChanges in ISO 14001 and ISO 9001 from previous versions - its impact Drafting ofContracts General Vigilance Awareness Contract Management Nuances Urban Planning: CityManagement Design of Piping/ Equipment Layouts Industrial Laws: PF Gratuity ESIPayment of Minimum Wages Maternity Benefits Contracts Labour: Managing Issues Concerns& Problems Procedure for locating fire & gas detectors 3 D Model ProgressMeasurement & Exploring 3D Space through SP3D Offshore Geotechnical Engineering -design aspects of offshore platforms jetties and SPM.

Eleven number of Behavioural/Soft-skills programs were organized duringthe year to strengthen behavioural competencies Planning for Superannuation Mind Mappingthrough Mediation Yoga for physical and mental fitness and Women Development skills.

Leadership Development Program (Aarohan – Batch-X) focusing ondelivering core leadership skills in line with EIL ‘Competency Model'‘Group Development Outcome' and ‘Individual Learning & DevelopmentPlan' was imparted through a mix of case studies simulation-based exercisesinteractive games role plays videos and concept based movies to a group of 30participants at GM/DGM Level. A three day Management Development Program for AGMs/DGMswith faculty support from M/s Attitya HR & Training Consultants with 25 participantswas organized in which participants were exposed to learning of various Managementconcepts such as Time Management Communication Skills Negotiation Skills FinancialPlanning through training tools viz. practice exercises role plays simulation and casestudies. Participants rated the programs as ‘very significant' consideringknowledge-gained usefulness course structure and program delivery by the faculty.

332 participants were nominated to 76 external training programsorganized by reputed organizations and institutions in India and abroad. The Company alsosponsored 93 participants to PETROTECH - 2019 organised during February 10-12 2019 atGreater Noida.

Training of Management Trainees (MTs)

112 Number of MTs - Batch 2018 joined during the year. Three monthsclass-room training covering topics on overview of company functional areas underdifferent directorates campus to corporate domain functions in respective discipline wasorganized at Training Centre.

Skill Development Initiatives

As part of Government of India's "SKILL INDIA MISSION"on providing thrust to "Skill Development" 182 nos. Apprentices are undergoingapprenticeship training in various disciplines at Head Office Branch/Regional Offices andConstruction Sites. Inputs on the following topics were provided to Apprentices throughtwo Familiarization Programs:

• Company and its areas of operation

• Conduct & Discipline Rules of Company applicable toApprentices

• Health Safety & Environment.

Leave Rules & Procedure for sanction of leaves.

• All India Trade Test (AITT).

• Training under respective trades as per requirement underApprentice Training Scheme.

• Filling of Clearance and issuance of Training CompletionCertificates.

Organization has achieved engagement of 10% apprentices against thetotal manpower for the year 2018-19 as mandated by the Government of India.

L&D Initiatives with Oil PSUs

Under the aegis of HR Taskforce constituted by MoP&NG an industrywide platform L.E.A.P. (Learn. Engage. Act. Progress) was formed as a concerted effort ofindustry members to partner in the developmental initiatives of common interest. Undersuch initiative by the L&D Centres of Oil PSUs a seminar by Shri Ram Charan aleading management consultant and eminent international speaker and a member of Thinkers50 on "Leadership needs in the era of talent and technology" was conducted onAugust 13 2018 in New Delhi. 25 Senior Executives of the Company participated in theseminar and highly appreciated the initiative.

Mentorship Development

With an objective to foster professional relationships and provide aforum for offering constructive advice to support the career development of the menteeEIL supports a Mentorship Development Programme allocating trained mentors in the ratio of1:3 (Mentor: Mentee) for all new entrants to the organization. Structured interactions areencouraged for building positive relationships between the mentor and mentees for longtime benefits both to the mentee and the organisation.

Leveraging IT in HR

IT assisted HR processes are regularly updated to comply with existingrules and policies with emphasis on ease of use and user friendly GUIs (Graphic UserInterface). More than 530 news items/reports were uploaded on web based EIL Connect whichrecorded more than 15 Lakh hits during the financial year effectively maintaining aninteractive environment with employees located in India and abroad.

Implementation of Government Directives on ScheduledCastes/Scheduled Tribes

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

The Company has appointed a Liaison Officer to work as a facilitator inensuring that due attention is paid to the issues of SC/ST employees. Management alsoencourages communication with the office bearers of the SC/ST Employee's WelfareAssociation by holding periodical meetings with the Association.

Scholarships were awarded by EIL to 50 SC & ST (SC – 36 and ST– 14) undergraduate engineering students. The percentage of employees belonging toScheduled Castes and Scheduled Tribes was 18.9 % and 4.7% respectively of the totalemployee strength of the Company (as on March 31 2019).

Initiatives for the benefit of Persons with Disabilities(PwDs)

EIL is implementing the provisions of the Persons with DisabilitiesAct 1995 by way of providing reservation for Persons with Disabilities. As on March 312019 there are 43 PwD employees on the rolls of the Company. Online module for PWD inaccordance with latest Government of India guidelines has been developed and implemented.

Women Development

Women constitute approximately 11.9% of EIL's human resource ofwhich 87.57% are in the officer cadre. EIL has in place a Women's Forum comprisingof senior officials as Patron Chairperson and Co-Chairperson to cater to the developmentneeds of women employees.

Ample opportunities are made available to women employees forparticipation in national as well as international Conferences and Symposiums so that theybenefit from the knowledge of Industry and Domain Best Practices.

18. Corporate Social Responsibility

EIL's CSR initiatives underscore the Company's commitment tooperate as a socially responsible corporate citizen in an economically socially andenvironmentally sustainable manner to enhance overall contribution to society. As perCompanies Act 2013 a budgetary allocation of 2% of the average net profit made duringthree immediately preceding financial years has been done in the financial year 2018-19for CSR activities.

Art & Culture: EIL is providing support for setting up of KDMalviya National Oil Museum at Guwahati. The Museum aims to create awareness with regardto the development of the Oil Industry in India and also the Infrastructure and Technologyavailable in the country in Petroleum sector. It will serve as an archive for vintageequipment relating to the Petroleum industry in India.

Education: EIL supported the setting up of Mini Science Centre in 2schools in Ratnagiri district Maharashtra and a computer centre for underprivileged youthin Tughlakabad Delhi. The Company is also supporting the construction of GovernmentSchool Building in Kabennur Dharwad Karnataka. In order to support children withIntellectual Development Disorder and creating inclusive education opportunities for themEIL is conducting 10 Workshops for training of teachers in mainstream schools to addressthe teaching needs of such students.

Health Care: EIL conducted ten camps for distribution of AssistiveAids and Appliances to poor & needy Persons with Disabilities at Udaipur Kota DelhiHaldia Kochi Udupi Ratnagiri Dharamshala Bargarh and Cuttack. EIL is also providingsupport for conducting 4-5 screening camps for eye ailments and 200 cataract operationsfor people from marginalised sections of society.

Drinking Water/ Sanitation: EIL has supported the construction of100 nos. of community toilets in remote villages of Aligarh district and 32 nos. of schooltoilets and potable drinking water facilities in schools of Pataudi block of Gurugramdistrict Haryana. The Company has supported the maintenance of 161 nos. of toiletsconstructed as part of Swachh Bharat Abhiyaan in Assam (150) and Tamil Nadu (11) and madea contribution to Swachh Bharat Kosh to supplement Government's effort towardsSwachhta Mission.

EIL is supporting the construction and installation of three waterpurification plants (ROs) in villages of Sheohar district Bihar.

Rural Electrification: EIL supported installation of 100 SolarPhotovoltaic based LED Street Lighting Systems in various villages of Poornia DistrictUttar Pradesh.

Environment Protection/ Sustainability: EIL is supporting thesetting up of plant for conversion of Waste to Fuel in Mathura and installation of solarsystem and solar lights at Ayudham Campus for old & infirm.

Women Empowerment: EIL supported the functional literacy programmeof 120 tribal women in Mushroom Cultivation and BeeKeeping at Bolangir District in Odisha.

Vocational Training/Skill Centres: EIL supported the establishmentof Skill Development Institute at Ahemdabad and is providing operational fund to SkillDevelopment Institutes at Bhubaneswar Kochi Guwahati Raebareli and Vishakhapatnam.

To enhance skill set of Persons with Disabilities (PwDs) EIL conductedSkill Development Training for 1200 PwDs in various trades at Faridabad Rajkot UjjainGwalior Gondia Ahmednagar Nashik Nagpur Thane Jalgoan Solapur Pune KalyanHanumangarh Ismailabad Shahabad Sirsa and Fatehabad.

EIL supported residential Skill Development Training Programme of 100candidates from backward classes in Haryana and Bihar.

19. Make In India

"Make In India" is a flagship initiative launched by theHon'ble Prime Minister with an objective to revive and revitalize the manufacturingsector in the country. As part of the "Make In India" campaign EIL has beenpursuing several initiatives:

• Contribution to Government's Policy formulations toencourage indigenization.

• Vendor interaction to upgrade indigenous manufacturingtechnologies.

• Indigenization of equipment manufacturing to increase domesticcontent.

• Vendor enlistment/ enhancement through continuous interactionassessment and evaluation.

• Relaxation of PTR criteria for 51% owned subsidiaries.

EIL is piloting the midstream sectors for Make In India initiativeunder MoP&NG and is a member of the Steering Committee set up for the purpose. To thiseffect regular supplier meets are being organized for interaction with the specificdomain based industries and empanelment of suppliers through an online web based process.EIL has been actively engaged with MoP&NG and other Oil & Gas sector organizationsfor this initiative through participation in several stakeholder meets and contributing tovarious draft policy formulations such as Purchase Preference for Local Content Policywhich has now been mandated under the ambit of Make In India.

20. Official Language

Implementation of official language policy

i. Quarterly meetings were held regularly wherein the progress in useof Hindi was reviewed. The meetings of different OLICs of Regional/ Field/ProcurementOffices were also organized as per schedule and the targets of four meetings as perschedule have been achieved in the financial year in all offices. ii. Senior Officers ofthe Company participated in the meetings of the Town Official Language ImplementationCommittee (TOLIC). iii. Employees are nominated for the competitions organized by otherundertakings under the aegis of TOLIC and some of them were suitably awarded. iv. Hindiworkshop for other undertakings was successfully held under the aegis of TOLIC Gurugram.v. Provisions of the Section 3(3) of the Official Language Act and the Official LanguageRules have been complied with. vi. The initiatives taken in the field of IT includesactivating Unicode facilities in all computers Providing Indic IME booklet for StandardNoting PDF of Email Signature in Hindi and Google voice typing and other software on thecomputers and training of above software were given during Hindi Workshops. NecessaryHindi software Glossary and other material are installed in the Company Portal for readyuse of employees. The facility of Google translation Mahashabdkosh of Home Ministry isprovided on computers. vii. For better implementation of Official Language inspectionshave been conducted in the offices and departments.

Hindi Teaching & Training

In pursuance of the Official Language Policy of the Government ofIndia newly joined employees not conversant with Hindi language are nominated incorrespondence course of Ministry of Home Affairs Govt. of India. Target has beenachieved in respect of stenographers and typists.

Hindi Workshops

Twenty three Hindi workshops in different Offices three OfficialLanguage conferences i.e. one in region ‘B' and two in region 'C' were organizedduring the year. Two Hindi workshops were organized for GM and above level Officers. Onespecial Hindi conference was also organized for the members of EIL Official LanguageImplementation Committee in which C&MD Directors and Executive Directors took part.

Hindi Fortnight Celebration

The Hindi Fortnight was celebrated during September 1 - 14 2018 in theCompany. Various competitions were organized to encourage the progressive use of Hindiwherein winners were awarded. On this occasion HODs/Heads of Office and their HindiCoordinators were awarded who performed maximum work in Hindi during the year.

21. Awards and Accolades

During the FY 2018-19 your Company was conferred with multiple awardsand honours at national level. The significant ones among them are as follows:

• CII National Energy Efficiency Circle Awards in two categories:Energy Efficient Technology - Implementation of Oxygen Enrichment Technology in SRU andBest Energy Efficient Case Study - combined Heat & Power Optimisation of a Refinery inMay 2018.

• Petroleum Rajbhasha Shield (Consolation award) by the Ministryof Petroleum and Natural Gas for excellent Hindi work done during 2017-18 presented onSeptember 28 2018.

• IEI Industry Excellence Award 2018 instituted by The Institutionof Engineers (India) received on December 21 2018.

• 6 Governance Now 2019 award in the categories of Outreach(Communications) and Technology Adaption conferred on January 17 2019.

• Petrotech Special Technical Award 2019 in the Greening of Oiland Gas Business and Sustainability category jointly with IOCL conferred on February 112019.

• Petrotech Special Technical Award 2019 in the Women Executive inHydrocarbon Sector category to Ms. R. Priyamvada ex-GGM (Technical) conferred on February11 2019.

• "Pride of HR Professional" Award to Sh. V.C. BhandariDirector (Human Resource) by World HRD Congress on February 15 2019.

• 11 CIDC Vishwakarama Awards for Best Construction Projects toDHDT Project Numaligarh Refinery Assam on March 7 2019.

• 11 CIDC Vishwakarama Awards for Best Practices in ConstructionHealth Safety & Environment to BS-VI Quality Fuel Project HMEL Guru Gobind SinghRefinery Bathinda (Punjab) on March 7 2019.

22. Joint Venture

Ramagundam Fertilizers & Chemicals Ltd. (RFCL) has beenincorporated as a joint venture company of Engineers India Limited (EIL) NationalFertilizer Limited (NFL) and Fertilizer Corporation of India (FCIL) for setting up Gasbased Urea Manufacturing Plant at Ramagundam Peddapalli district in the State ofTelangana with capacity of 2200 MTPD Amonia Unit and 3850 MTPD Urea Unit. The Plant isexpected to be commissioned by December 31 2019.

23. Subsidiary Company

Certification Engineers International Limited (CEIL) a wholly ownedsubsidiary of EIL continued to provide Certification as well as Third Party Inspection(TPI) services to various clients. During the year CEIL secured a number of assignmentsfrom VMC SMC GSPL GAIL PSCDCL KRCL NLC and various State Governments notable amongthese being:

• VMC SMC : TPI for various infrastructure Projects undertaken byMunicipal Corporations.

• Gujarat State Petronet Limited (GSPL): TPI for various pipelineprojects viz. GITL MBBVPL.

• GAIL: TPI at steel source or mills for GITL.

• Special Protection Group (SPG): TPI services for Residential cumTraining Complex.

• Konkan Railway Corporation Limited: Quality Assurance Servicesfor USBRL Project.

• Dedicated Freight Corridor Corporation (DFCC): TPI services ofsteel web girder bridges for western corridor.

• Pune Smart City Development Corporation Limited (PSCDCL): ThirdParty Quality Audits and Site Quality Control Inspection.

• Sardar Sarovar Narmada Nigam Limited (SSNNL): Third PartyInspection for underground pipeline.

• ERDMP Certification of Torrent Power Limited .

Apart from these CEIL secured many Third Party Inspection assignmentsfrom clients like BPCL OPaL GSPL/GITL HPCL Technimont/KTI T4S Audit of TNGCL CGDNetwork IMS Audit of IGL CGD Network etc. Earlier Certification and TPI jobs for ONGCSagar Samrat Daman Development projects continued this year also.

The Board of Directors of the company have recommended for thefinancial year 2018-19 a final dividend of र 350 Lakhs (900000 equity shares of`100/- per share) in addition to र 300 Lakhs (100000 equity shares of `100/- pershare) interim dividend already paid during the year. Payment of final dividend ishowever subject to approval of shareholders in the ensuing Annual General Meeting of thecompany.

The dividend if approved and declared in the forthcoming AnnualGeneral Meeting would result into total dividend outflow of `650.00 Lakhs and dividenddistribution tax of `133.61 Lakhs aggregating to total outflow of र 783.61 Lakhs.

24. Corporate Governance

The Company is committed to good Corporate Governance as per therequirements of SEBI Regulations and DPE Guidelines in this regard. The Board of Directorssupport the broad principles of Corporate Governance. In addition to the basic issues EILBoard lays strong emphasis on transparency accountability and integrity. As requiredunder SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and DPEGuidelines on Corporate Governance the Report on Corporate Governance together with theAuditors' Certificate on compliance of conditions of Corporate Governance along withthe Management's Reply on the comments of Auditors is annexed to this report.

25. Number of Meetings of the Board

The Board met 7 times during the financial year. The meeting detailsare provided in the Corporate Governance Report that forms part of this Annual Report. Theintervening gap between any two meetings was within the period prescribed under CompaniesAct 2013 SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 andDPE Guidelines on Corporate Governance.

26. Composition of Audit Committee

The recommendations made by the Audit Committee during the year wereaccepted by the Board. The other details of Audit Committee like composition terms ofreference meetings held are provided in the Corporate Governance Report that forms partof this Annual Report.

27. Declaration of Independent Directors

The Company has received necessary declaration from each independentDirector under Section 149(7) of the Companies Act 2013 that he/she meets the criteriaof independence laid down in Section 149(6) of the Companies Act 2013 Regulation16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 andDPE Guidelines on Corporate Governance and that he/she is not aware of any circumstance orsituation which exist or may be reasonably anticipated that could impair or impact hisability to discharge his duties with an objective independent judgment and without anyexternal influence.

The Board of Directors in their 344 meeting held on May 17 2019 hasalso take on record the declaration and confirmation submitted by the independent directorafter undertaking due assessment of the veracity of the same.

28. Training to Independent Directors

The Company has a well defined Training Policy for training to BoardMembers which inter-alia include the various familiarization programmes in respect oftheir roles rights responsibilities in the company nature of the industry in thecompany operates business model of the company etc. Further the same is also taken careduring the 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 web-link.

29. Directors and Key Managerial Personnel

Directors

Inductions

Shri Sunil Bhatia was appointed as Additional Director in the capacityof Director (Finance) w.e.f 18 October 2018 (Date of assumption of charge) in terms ofMinistry of Petroleum & Natural Gas Government of India letter no.C-31016/3/2018-PNG(25938) dated 17.10.2018. Shri Sanjeev Kumar Handa was appointed asAdditional Director in the capacity of Director (Projects) w.e.f 11 March 2019 in termsof Ministry of Petroleum & Natural Gas Government of India letter no.CA-31018/3/2018-PNG(23210) dated 11.03.2019. Shri Bollavaram Nagabhushana Reddy wasappointed as Additional Director Director (Government Nominee) w.e.f. 27.05.2019 videMoP&NG letter No. C-31033/1/2016-CA/FTS:42979 dated 27.05.2019. Shri M. Arulmuruganwas appointed as Additional Director Non-official Independent w.e.f. 17.07.2019 (date ofallotment of DIN) vide MoP&NG letter No. No.C-31033/2/2018-CA/PNG(25758) dated12.07.2019.

Re-appointments

In terms of Ministry of Petroleum & Natural Gas Government ofIndia letter No. C-31033/5/2018-CA/FTS:26192 dated 20.11.2018 the Board of Directors ofthe Company had recommended for reappointment of Dr. (Prof.) Mukesh Khare Mrs. ArushaVasudev Shri V.K. Deshpande and Shri Umesh Chander Pandey Non-Official IndependentDirectors for a second term of one year commencing from the date of completion of theirexisting tenure i.e. 19.11.2018 or until further orders of the Government whichever isearlier. They shall not be liable to retire by rotation. In accordance with the provisionsof the Act and Articles of Association of the Company Shri Vipin Chander BhandariDirector (HR) and Shri Lalit Kumar Vijh Director (Technical) would retire by rotation atthe ensuing Annual General Meeting and being eligible offers themselves forreappointment. In accordance with the provisions of the Companies Act 2013 Shri SunilBhatia Director (Finance) Shri Sanjeev Kumar Handa Director (Projects) Shri BollavaramNagabhushana Reddy Director (Government Nominee) and Shri M. Arulmurugan Non-officialIndependent Director who were appointed as Additional Director after the date of lastDirectors' Report shall vacate their office at the ensuing Annual General Meeting.Necessary Notices have been received under section 160 of the Companies Act 2013proposing their candidature for appointment. The Board recommends their appointments.Brief resume of the Directors seeking appointment / reappointment together with the natureof their expertise in specific functional areas disclosure of relationships betweenDirectors inter-se names of companies in which they hold Directorships and themembership/ chairmanship of Committees of the Board along with their shareholding in theCompany etc. as stipulated under SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 DPE Guidelines on Corporate Governance and other statutory provisionsare given in the Annexure to Notice of 54 Annual General Meeting.

Retirements

After the date of last Directors' Report i.e. 10 August 2018 ShriSandeep Poundrik Director (Government Nominee) ceased to be Director of the Companyw.e.f. 01.05.2019. The Board placed on record its sincere appreciation for the valuableservices rendered and contribution made by Shri Sandeep Poundrik Director (GovernmentNominee).

Additional Charge

Shri Jagdish Chander Nakra Chairman & Managing Director wasentrusted with the additional charge of the Post of Director (Finance) which continuedtill 30.04.2018 and was further continued for a period of 6 months w.e.f 1.05.2018 or tillthe appointment of a regular incumbent to the post or until further orders whichever isthe earliest vide Ministry of Petroleum & Natural Gas Government of India letter no.CA-31/1/2017-PNG (14564) dated 14.06.2018. Shri Jagdish Chander Nakra Chairman &Managing Director was also entrusted with the additional charge of the Post of Director(Projects) for a further period of 6 months from 13.11.2018 or till the appointment of aregular incumbent to the post or until further orders whichever is the earliest videMinistry of Petroleum & Natural Gas Government of India letter no.CA-31018/2/2018-PNG (23190) dated 04.10.2018.

Key Managerial Personnel

Company Secretary:

The Board of Directors in their meeting held on 15.01.2019 appointedShri Suvendu Kumar Padhi as Company Secretary of the Company (w.e.f. 15.01.2019) in placeof Shri Narendra Kumar Manager (CS) who was appointed as Company Secretary of the Companyas an interim measure till appointment of senior Company Secretary.

Chief Financial Officer (CFO) :

During the period under review Shri Vipin Chander Bhandari Director(HR) was holding the position of CFO of the Company till appointment of Shri Sunil BhatiaDirector(Finance) as CFO of the Company w.e.f. 13.11.2018.

30. Secretarial Auditors

M/s Agarwal S. & Associates Practicing Company Secretaries wasappointed to conduct the Secretarial Audit of the Company for the financial year 2018-19as required under Section 204 of the Companies Act 2013 and Rules there under. TheSecretarial Audit Report for the financial year 2018-19 along with the Management'sReply on the comments of Secretarial Auditor is annexed to this Report.

31. Vigilance Mechanism/Whistle Blower Policy

The Company has formed the Whistle Blower Policy/Vigil Mechanism and nopersonnel have been denied access to the Audit Committee. The same has also been given onthe website of the Company at https://engineersindia.com/investors/corporate-governance.

32. Dividend Distribution Policy

As per Regulation 43A of the SEBI (LODR) Regulations 2015 your Companyhas formulated a Dividend Distribution Policy. The dividend pay-out is in accordance withthe Company's Dividend Distribution Policy. The Dividend Distribution Policy of theCompany is available on the Company's website athttps://engineersindia.com/investors/ corporate-governance.

33. Transfer of Amounts/ Securities to Investors Education and

Protection Fund

A detailed disclosure regarding the same has been given in theCorporate Governance Report which forms part of this Annual Report. The same has also beengiven on the website of the Company athttps://engineersindia.com/investors/corporate-governance.

34. Listing on Stock Exchanges

The Company is listed on the BSE Ltd. and National Stock Exchange ofIndia Ltd. The Company has paid Listing fees for the Financial Year 2018-19 to the aboveStock Exchanges in time.

35. Nomination and Remuneration Committee

EIL is a Public Sector Undertaking (Government Company) and theappointment of Directors both Executive and Non-Executive are made by the Government ofIndia and are being paid remuneration as per the terms of their appointment. The Companyhas a Nomination and Remuneration Committee and detailed disclosure in this regard hasbeen given in the Corporate Governance Report which forms part of this Annual Report.

36. Performance Evaluation of the Board

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

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

In line with the provisions of the Companies Act 2013 and the ListingRegulation the Company has formulated a Policy on materiality of Related PartyTransactions and also on dealing with Related Party Transactions. The same has been postedon the website of the Company athttps://engineersindia.com/investors/corporate-governance. The Company gives thedisclosure regarding material transactions with related parties on quarterly basis alongwith the compliance report on Corporate Governance. As per requirements of Section 134 (3)of Companies Act 2013 read with rule 8 of Companies (Accounts) Rule 2014 particulars ofcontracts or arrangements with related parties as referred in section 188 (1) of theCompanies Act 2013 is annexed to this report. During the year there were no materialRPTs. Further suitable disclosure as required by the Indian Accounting Standard (IndAS-24) "Related Party Disclosures" has been given in the Notes to the FinancialStatements.

38. Details of Loans/Investments/Guarantees

In compliance with the provisions of the Companies Act 2013 thedetails of investments made and loans/guarantees provided as on 31.03.2019 are given inthe respective Notes to the financial statements.

39. Reporting of Frauds by Auditors

During the year under review neither the statutory auditors nor thesecretarial auditor has reported to the audit committee under Section 143(12) of theCompanies Act 2013 any instances of fraud committed against the Company by its officersor employees the details of which would need to be mentioned in the Directors'Report.

40. Extracts of Annual Return

In accordance with Section 134(3)(a) of the Companies Act 2013 anextract of the annual return in the prescribed format is annexed to this report. The samehas also been given on the website of the Company athttps://engineersindia.com/investors/corporate-governance.

41. Cost Auditors

EIL does not fall under the cost audit rules and therefore there is norequirement of cost audit for the Company in terms of amended Companies (Cost Records andAudit) Rules.

42. Conservation of Energy Research and Development Technology

Absorption Foreign Exchange Earnings and Outgo

In accordance with the provision of the Companies Act 2013 and rulesframed thereunder particulars relating to Energy Conservation Technology Absorption aregiven under Research & Development and Sustainable Development Sections of theDirectors' Report.

Information regarding imports foreign exchange earnings andexpenditures etc. (excluding exchange difference on conversion of foreign currency) is asfollowing:

(Figures in र Lakhs)

STANDALONE
Sl. No. PARTICULARS Year ended 31 March 2019 Year ended 31 March 2018
a) Expenditure (disbursement basis) in foreign Currency on account of:
(i) Knowhow and professional fees including sub-contracts (others) 1182.22 591.70
(ii) Sub-contractor/Construction Material turnkey projects 3351.58 1100.43
(iii) Others (foreign travel living allowance membership fees agency commission foreign office expenses) 3466.40 3096.58
b)
(i) Earnings (accrual basis) in foreign exchange on account of professional fees including र 78.29 Lakhs (Previous year: ` 107.79 Lakhs) earned in local foreign currencies which are not repatriable to India against which an expenditure of र 88.82 Lakhs (Previous year: र 38.69 Lakhs) incurred in local foreign currencies. 17985.38 22583.95

43. Significant and Material Orders

There are no significant and material orders passed by the regulatorsor courts or tribunals impacting the going concern status and Company's operations infuture.

44. Other Disclosures

No disclosure or reporting is required in respect of the following itemas either these were not applicable or there were no transactions on these items duringthe financial year 2018-19:-

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

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

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

4. Neither the Managing Director nor the Whole–time Directors ofthe Company receive any remuneration or commission from any of its subsidiaries. Furtherthe names of Companies which have become or ceased to be its subsidiaries during the yearare NIL and the companies which have become or ceased to be joint ventures or associatecompanies during the year are also NIL. The Company has complied with the applicableSecretarial Standards (SS-1&SS-2).

The Company has complied with the provisions and has in place InternalComplaints Committee under the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013. Further during the financial year 2018-19 therewere no cases filed under the above act.

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

45. Code of Conduct

EIL has formulated a Code of Business Conduct and Ethics for Board ofDirectors and Senior Management Personnel. The confirmation of compliance of the same isobtained from all concerned on annual basis. All Board Members and Senior ManagementPersonnel have given their confirmation of compliance for the year under review. Adeclaration duly signed by C&MD is given under para 2(e) of the Report on CorporateGovernance annexed to this Report. The Code of Business Conduct and Ethics for Board ofDirectors and Senior Management Personnel are given on the website of the Company athttps://engineersindia.com/investors/corporate-governance.

46. Right to Information

An elaborate mechanism has been implemented within the Organization todeal with requests received under Right To Information Act 2005. A dedicated RTI Cell isavailable at HO-New Delhi to deal with the matters pertaining to RTI Act.

Under the provisions mentioned in Section 4(1) (b) of RTI Act everypublic authority is required to display mandated information to citizens to secure accessto the information under the control of public authority in order to promote transparencyand accountability in its functioning. EIL being a responsible public sector undertakinghas displayed the mandated information on its corporate website under ‘Right toInformation' section. Details of CPIO and First Appellate Authority have also beennotified in line with the requirements of the Act.

During the period April 01 2018 to March 31 2019 a total of 224 (Twohundred and twenty four) RTI applications were disposed off timely by providinginformation in line with provisions mentioned in the Act. Company also received a numberof First Appeals in response to the information provided by CPIO. 32 (Thirty two) numberRTI Appeals were attended and appropriately disposed off by First Appellate Authorityduring the aforesaid period.

47. Directors' Responsibility Statement

Your Directors state that:

a. in the preparation of the annual accounts for the year ended March31 2019 the applicable accounting standards read with requirements set out underSchedule III to the Companies Act have been followed and there are no material departuresfrom the same;

b. the Directors have selected such accounting policies and appliedthem consistently and made judgements and estimates that are reasonable and prudent so asto give a true and fair view of the state of affairs of the Company as at March 31 2019and of the profit of the Company for the year ended on that date;

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

d. the Directors have prepared the annual accounts on a ‘goingconcern' basis;

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

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

48. Auditors

M/s Arun K Agarwal & Associates Chartered Accountants wereappointed as Auditors of the Company for the financial year 2018-19 by the Office ofComptroller & Auditor General of India.

49. Bankers

Bankers of the Company include State Bank of India Indian OverseasBank Vijaya Bank Corporation Bank Bank of Baroda Punjab National Bank Union Bank ofIndia HDFC Bank ICICI Bank Indian Bank Bank of India Oriental Bank of CommerceCanara Bank IDBI Bank Axis Bank and IndusInd Bank.

50. Particulars of Employees

As per the provisions of Section 197 of the Companies Act 2013 andrules made thereunder Government Companies are exempted from inclusion of the statementof particulars of employees. The information has therefore not been included as part ofthe Directors' Report.

51. Acknowledgement

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

Directors thank all our esteemed clients for the faith and trustreposed in the Company. With continuous learning skill upgradation technologydevelopment your Company continue to provide world class professionalism and services toour clients.

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

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

For and on behalf of the Board of Directors
Place: New Delhi J.C. Nakra
Date : August 9 2019 Chairman & Managing Director