engineers india ltd share price Management discussions


Your Company, is a Total Solutions engineering consultancy company providing design, engineering, procurement, construction and integrated project management services from Concept to Commissioning with highest quality and safety standards. Your company is also working towards realising governments Decarbonisation and Net Zero vision by playing a key role in projects evolving out of these themes. Accordingly, your company has updated its vision "To be a global leader offering Total energy Solutions for a sustainable future". To realize this vision, your Company is developing clear and executable strategies based on five pillars of growth of Entering into Strategic Alliances, Swift Diversification in sunrise sectors, Expand International Business, Focus on innovation through technologies and Achieving Operational Excellence.

Over more than 5 decades of our existence, your company has grown and evolved, overcoming numerous challenges and obstacles to become leading engineering & consulting organization in Hydrocarbon and other diversified areas.

We are pleased to present our performance highlights for FY 2022-23 and the business outlook for this year:

Some of our mega projects in the oil and gas sector are nearing completion. On domestic front, HMELs Petrochemicals Complex, first of its kind in India with respect to feedstock options, was completed and commissioning has been accomplished for most of the process unit and U&O. Methanol plant (500 TPD) of Assam Petrochemicals Ltd (APL) at Namrup in Dibrugarh where EIL provided services as LEPCM consultant for this project reached under the final stages of completion in 2022-23. APL will supply methanol to other states as well as export to neighbouring countries. Vizag Refinery Project is currently at the advanced stage of commissioning having the state- of-the-art Crude Distillation Column designed and implemented by EIL with highest energy efficiency in terms of energy number across the world. Mechanical Completion of Kochi Refinery - Palakkad section of the Kochi-Salem LPG Pipeline project has been achieved. EIL is providing EPCM services for Kochi-Salem LPG Pipeline with 1.53 MMTPA capacity, for M/s Kochi Salem Pipeline Pvt. Ltd. (KSPPL), a joint venture company of IOCL & BPCL. This pipeline system will evacuate LPG from Kochi Refinery and transport imported LPG from IOCL Jetty at Puthuvypeen to a number of LPG bottling plants of IOCL & BPCL enroute to Odayemproor/Palakkad/Coimbatore/Erode/ Salem. Chhara LNG Terminal (HPLNG) have also achieved Mechanical Completion. EIL was entrusted with the PMC services for the LNG Terminal Project (HPLNG). One of the largest capacities Biorefinery project in India for Assam Biorefinery Private Limited (ABRPL), a JV of NRL, Fortum and Chempolis OY is already at the advanced stage of completion. There are several other projects being implemented by EIL that are on the verge of completion. These projects with combined worth of multibillion-dollars clearly demonstrate EILs strong domestic presence in the oil & gas sector. The above is status of some of the major on-going projects, entire list of projects under

implementation has been discussed in subsequent section.

1. Business Overview

For the year 2022-23, the Company secured business worth 4705 Crores with segment-wise breakup as follows: -

Domestic : 4091 Crores

Overseas : 614 Crores

Of the above, LTSK/OBE assignments worth 502 Crores were secured in the Domestic Segment and your company also secured Orders worth 1250 Crores in the Consultancy segment. Change Order for 2944 Crores was also secured from HRRL.

The biggest boost to your companys international footprints was through securing of two major assignments; One for $22 Million for providing consultancy services for Integrated Natural Gas Liquids (NGL) plant and 300 MW CCTG Power plan in Guyana and another major one for rendering EPCM services for a grass root world scale fertilizer complex in Nigeria. Apart from this, couple of major assignments won in ME region were the award of CED FWA T.1: Brown Field EWRs- PMRs for ZIRKU and SARB (Under Concept & FEED Framework Agreement Phase 2) and CED FWA T.3: EWRs- PMRs for US NASR and UZ (Under Concept & FEED Framework Agreement Phase 2)

Domestic

Hydrocarbon

In the Hydrocarbon sector, major assignments secured in the Refining sector include Providing consultancy services for proposed underground mined rock LPG cavern at Vadodara; Restoration of Gas Terminal Phase-1 of ONGC ; Energy Optimization Study at BPCL Mumbai Refinery, BDEP and EPCM Services for Revamp of 2 Stage Desalter including Assistance for Site Works - Phase 1 for BPCL Kochi Refinery, Design, Detail Engineering, Procurement & PMC for Revamp of Existing IREP DHDT Charge Heater for efficiency improvement at BPCL Kochi Refinery, Energy Optimization study assignments for BPCL Bina Refinery and BORL Refinery, EPCM Services for Upgradation of Pump Stations/Terminals of Naharkatiya- Barauni Crude Oil P/L of OIL; EPCM services for MR II project at HPCL Mumbai Refinery; PMC and FEED Services for DCU Revamp; Consultancy Services for overall Project Management & EPCM Services for OHCU Revamp, CDWU and related Off-site facilities for Group- II LOBS Project at Manali Refinery of CPCL; Execution of BS-VI Auto Fuels Projects at CPCL, Manali Refinery on OBE Basis and various other assignments including several variation orders including a major change order for Execution of Residual Utilities and Offsites for RRP-RUO on OBE Mode- HRRL.

Chemicals and Petrochemicals

In the Chemicals and Petrochemicals sector, major assignments secured include Licensor Selection, Cost Estimation and Preparation of Detailed Feasibility Report (DFR) for Poly Propylene (PP) Unit Project at BPCL Kochi Refinery, Technical Due Diligence for Petrochemical Complex for GAIL, Project Management Consultancy (PMC) for Pre-award activities for Lignite to Methanol Project at Neyveli from Neyveli Lignite Corporation, EPCM for MIBC, MIBK and U&O of Deepak Chem Tech. EIL also secured Detail engineering consultant services for new turbine generator set related system, new FBC boiler and interconnecting piping from DCTL. EIL has been awarded the Pre-Feasibility Study for Integrated Specialty Chemicals Complex by HMEL, Consultant for Estimation of Cracker unit including associated units and other derivative unit by Nayara, Consultancy Services for Obtaining Environmental Clearance for Installation of PPU at Rasayani & Interconnecting Pipelines from BPCL Mumbai Refinery to Rasayani, TEFR for Polycarbonate (PC) along with BisPhenol-A(BPA) and TEFR for Cracker along with other downstream products by GNFC, DFR for setting up Green Field Petrochemical Complex based on Imported Ethane by GAIL, Pre-Feasibility Report for Crude to Chemical Complex by Abhinand Ventures Private Limited (ESSARs subsidiary), PMC services for De-aromatized Solvent (DAS) unit at BPCL, several variation orders, major one being Consultancy Services for Ethylene Cracker, its Downstream Units and Bina Refinery Expansion, CS for Techno-Commercial Feasibility Study of Propylene Based Acrylonitrile , Acrylates, PDH Project of IOCL.

Pipelines, LNG Projects, Storage terminals and Strategic Storage

In this segment, your company secured assignments for Capacity Assessment of Natural Gas Pipelines in line with PNGRB (Determining Capacity of Petroleum, Petroleum Products and Natural Gas Pipeline) Regulations, 2010 for 4 nos. Pipeline Networks, DFR for Jafrabad to Dahej Pipeline of GAIL, PMC for Anjar Palanpur Pipeline of GSPL, Detailed Feasibility Study For New Multi-Product Pipeline Network from Siliguri to Barauni & Muzaffarpur with Branch Line to Durgapur and Bokaro (SBBPL), DFR for Installation of Bitumen Pipeline from Paradip Refinery to Paradip port North Oil Jetty, Capacity Assessment of GAIL Chhainsa-Jhajjar-Hisar Natural Gas Pipeline, Detailed Feasibility Study for Expansion of KLLs Dhabol LNG Terminal from 5MMTPA to 15MMTPA including Handling of Multi-liquids viz Ethane and Propane for GAIL, PMC Services for Third Jetty at Dahej LNG Terminal of Petronet LNG. Variation order for Preparation of DFR for Feasibility Study of the provisions for expansion to land based terminal to the proposed FSRU based LNG terminal at Gopalpur from Petronet LNG etc.

Coal Gasification Projects

In the coal gasification segment, EIL bagged several consultancy assignments. Major ones being the PMC assignment for Preaward activities for Indias first Lignite to Methanol Project at

Neyveli, Consultancy Services for setting up of Surface Coal Gasification based Ammonium Nitrate Plant at Majri Area for WCL and Feasibility Study for Spare Syngas and Coal utilization for making Value- added products from JSPL. Further, your company is in active discussions with various other firms for Coal Gasification assignments.

Metallurgy

In the Metallurgy segment, EIL secured order for Preparation of Detailed project report (DPR) for Capacity Enhancement of Daitari Iron Ore Mines in Keonjhar, Odisha upto 6 MTPA from Odisha Mining Corporation, Detailed Engineering and Technical Data for Natural Gas Network for Fuel Switch-Over from Furnace Oil to Combination of Furnace Oil & Natural Gas for the Indurating Furnace Burners in Pellet Plant of KIOCL Ltd., and additional Land Assessment for Proposed 24 MTPA Integrated Steel Plant and Ancillary & Downstream Facilities and Social Infrastructure Facilities of Arcelor Mittal Nippon Steel India Limited.

Infrastructure

In Infrastructure segment, your company was successful in securing PMC Services for setting up of Rajiv Gandhi Knowledge Service & Innovation Hub at Kota & Jodhpur for RajCOMP Info Services Ltd. (RISL). EIL also successfully bagged the Principal Consultant Firm (PCF) assignment for setting up RBIs Greenfield Data Centre II, EMC Park, Khurda, Odisha & Enterprise Level Training Institute, PMC Services for Haryana Horticulture Marketing for HIHMC and PMC Services for setting up of Rajiv Gandhi Knowledge Service & Innovation Hub and Rajasthan Institute of Advanced Learning (RIAL) at Jaipur.

EIL also bagged the prestigious Technical Assessment and Transaction Advisory Services for Setting up large scale Bio- Methanation and Waste to Energy Projects in selected 25 cities, having million plus population from Ministry of Housing and Urban Affairs (MOHUA), Govt. of India. Further, your company has been assigned the Consultancy Services for Maintenance of Earthquake Warning System by DMRC as well as Consultancy Services for preparation of Detailed Project Report for Development of Greenfield International Airport at Chingen in Great Nicobar Island by AAI. EIL has also been awarded the Third Party Agency Services for Mukhya Mantri Digitial Sewa Yojana by RISL.

Sunrise Sector & Energy Transition (BioFuels/ Green H2/ Ammonia/ CCUS/ Waste to Fuel)

Several key assignments have been secured by the Company catering to Nations decarbonisation & Net zero commitments. Your company bagged Owners Engineer for Green H2 and / EPCM services for BOP project at Vijaipur from GAIL, LEPC Selection, Feasibility Study and Basic Design of OSBL for green H2 electrolyser & associated system at Bina from BPCL, Consultancy Services for Feasibility and Basic Engineering of Indias first long distance H2 pipeline (200 km) from a private

client, Consultancy services for preparation of DFR for setting up 4000 TPD Green Ammonia Plant from a major private Refiner, DPR and Technical Specification for 10 TPD CO2 Ethanol Project for NTPC., Green Ammonia Plant for HMEL, to name a few assignments secured in these segments. Preparation of BDEP, DFR and Pre-Project Activities for Bio-ATF Plant at MRPL, Preparation of Detail Feasibility Report for Biomass to Ethanol via Gasification and Gas Fermentation route for SEDL, Technical Assessment & Transaction Advisory Services for Setting up large scale Bio-Methanation and Waste to Energy Projects in selected 25 cities, having million plus population by MOHUA-GoI.

Overseas

Your company has leveraged its strong track record to successfully expand its operations internationally. The Company has earned recognition for jobs executed in several countries of Middle East, North Africa and South East Asia including Algeria, Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia, UAE etc. Most of the major oil & gas companies in these regions like GASCO, ADCO, ZADCO, KNPC, BAPCO, BANAGAS etc. have utilized EILs services for their prestigious projects. EILs Delhi office and Abu Dhabi office are catering to clients in ME region. The Dangote Refinery and Petrochemical Project, Nigeria, comprising a

650.000 BPSD grassroot Petroleum Refinery and 830 KTPA Petrochemical Complex, is in full swing and your company is contemplating its focus on the African countries as a part of its geo-strategic outreach. Apart from this, the Company has also been leveraging its presence in Middle East, Africa and neighbouring countries.

Some of the major assignments secured by your company include Variation order from Dangote Refinery for their

650.000 BPSD Refinery and 830,000 TPA Polypropylene Plant at Lekki Free Trade Zone, Nigeria, Consulting Services for the Supervision of the Guyana Integrated NGL Plant and 300 MW CCGT Power Plant Project from Ministry of Natural Resources under stiff competition from International Bidders. This assignment marks EILs entry into Latin America. Your company has also secured a grass root world scale fertilizer complex in Nigeria. Your company is also providing Consultancy Services for Concept Study for Grass Root Refinery cum Integrated Petrochemical Complex at Nigeria for Padah LNG,, various assignments for BAPCO, ADNOC OFFSHORE, PIC etc.

Your company also received several assignments for PMC Services on Call-off basis from ADNOC Offshore and Feasibility Review of critical equipment from BAPCO. Major one being CED FWA T.1 : Brown Field EWRs- PMRs for ZIRKU and SARB (Under Concept & FEED Framework Agreement Phase 2) and CED FWA T.3: EWRs- PMRs for US NASR and UZ (Under Concept & FEED Framework Agreement Phase 2).

EIL is consistently in pursuit of enhancing its geostrategic outreach in lines with the vision of GoI.

2. Business Environment & Future Outlook India

As per WEO, the global economy is showing signs of improvement despite the Russias war of aggression against Ukraine which continues to overshadow the world economy. The recovery over the next two years is expected to be moderate however the outlook still remains fragile and downside risks predominate. Concerns about financial vulnerabilities have risen, including in financial institutions, housing markets and low-income countries. While headline inflation has started declining, it remains elevated and could persist longer.

The recent tightening in global financial conditions is also hampering the recovery. Inflation remains stubbornly high, and banking strains in the United States and Europe have injected greater uncertainty into an already complex economic landscape. As a result, many economies are likely to experience slower growth in incomes in 2023.

Indias GDP growth is expected to remain robust in the financial year 2023-24 (7.2% as per MOSPI). However, International Monetary Fund predicts Indias GDP at 5.9% for 2023-24 and 6.3% for 2024-25. It is also projected that growing at predicted rate of 6.5 to 7 percent India has the potential to become 5 Trillion Economy by 2025-26 and 7 Trillion Economy by 2030.

Indias per capita energy consumption is lower than the world average, indicating significant growth potential in the Indian energy sector; such that Indian energy consumption is expected to grow to 12 per cent of global consumption by 2050. Indias Energy Demand is expected to grow at about 3% per annum by 2040, compared to the global rate of 1%. Further, 25% of the global energy growth between 2020 and 2040 is envisaged to come from India due to the fast-growing economy and demographic dividend.

The government aims to double the net area being explored for oil and gas to 500,000 sq. km from 250,000 sq. km by 2025 with an anticipated investment to tune of 4.7 Lac Crores ($58 Billion). With respect to midstream sector, investment of around INR 70,000 Cr is anticipated to expand the gas pipeline network across the country. So far, we have around 14,449 km of operational gas pipeline, partially commissioned pipeline of 6,680 Kms and additional 12,002 Km more is under construction. Oil Pipeline network is to be further augmented by another 12,000 Km in addition to the existing 32,908 Km. Your company has a major focus on offshore and onshore projects, and also pipeline projects, and active discussions are being pursued by the client.

Indias gas demand is expected to almost double to reach 115 BCM by 2030 and 170 BCM by 2050. India is aiming for a gas- based economy by broadening energy access for masses as well as decarbonizing existing energy sources. To achieve the

gas economy vision of the government, robust investments are planned in LNG and Gas space wherein Regasification Facilities are being proposed at the Western and Eastern Coast of the Nation by both Private and Public players. LNG Regasification facilities are being developed by the Private and Public organizations. Additional capacity of 30 MMT is expected to be added in next 10 years to enhance the existing capacity of 42.7 MMT.

Today, India has about 252 Million Tonnes of refining capacity, around 190 MMTA of refining capacity shall be added over next 10-12 years, which would entail an investment of around INR 4.0 Lakh Crore.

Indian chemical sector continues to grow at a rate of 1.2-1.5 times the GDP. In petrochemical domain too, the government is determined to cut down the massive imports. The flagship programmes such as Make In India and the Aatmanirbhar Bharat Abhiyan provide governmental guidance to this sector and create a facilitative environment to attract further investments. Mega Petrochemical projects have been announced by the likes of RRPCL, BPCL, Nayara Energy, Adani, RIL, HMEL etc. which would help India be self-sufficient. Total investment of around INR 6 Lakh crore is expected in next 15 years.

The revision of the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy in September 2022 was a welcome move. The revised PCPIR policy is expected to significantly impact Indias economy, attracting investment and creating jobs in the sector. Furthermore, there is a growing focus on safe, sustainable and eco-friendly petrochemical production, which is driving the development of new technologies and innovations in the industry. Bold steps like introduction of Chemical (Management and Safety) Rules (CMSR) and Extended Producer Responsibility (EPR) rules have been implemented to promote responsible chemical management practices. Additionally, the government is rationalizing the essential customs duties on raw materials used by domestic manufacturers. These initiatives aim to create a safer and more sustainable petrochemical industry, crucial for Indias long-term economic growth and development. The Indian petrochemical industry can facilitate the transition to a circular economy and explore opportunities in green chemicals to play a pivotal role in this transformation. Overall, with the right policy support and investment, the petrochemical industry can contribute significantly to the goal of making India a $5 trillion economy by 2024-25.

With impending energy transition, there is a need to diversify from refining and boost investments in petrochemicals and the government is now beginning to aggressively focus on creating downstream infrastructure/zones for domestic petrochemical capacity additions and incentivizing FDI in petrochemicals and for new technologies being brought into India.

India declared the Net Zero Pledge to achieve net zero emissions goal by 2070. India achieved its target of 40 per cent installed electric capacity from non-fossil fuels ahead of 2030. Indias current total renewable energy capacity, excluding large hydro and nuclear plants, reached 125 GW as per the latest monthly report by the Central Electricity Authority (CEA). The likely installed capacity from non-fossil fuels is expected to be more than 500 GW by 2030 resulting in decline of average emission rate by around 29% by 2029-30 as compared to 2014-15.

Driven by Indias need for Energy Security, Sustainability and Petrochemical Import substitution, Coal gasification is another significant area in which GoI has envisaged to gasify 100MT of Coal by 2030 which will entail investment of around 4.1 Lac Crore. Already several projects have been announced both by Public Sector and Private Sector.

Given Indias committed INDCs to UNFCCC at CoP 21/26 and pledge to become Net Zero by 2070, the country is set to witness a plethora of projects in Bio-fuels (Ethanol, SAF & Biogas), Coal Gasification, Green Hydrogen/ Ammonia/ Methanol etc, and CCUS under decarbonsation theme.

The Union Budget 2023 has allocated INR 35,000 Crores for priority capital investments towards energy transition and net zero objectives, and energy security as well as INR 10,000 Crore for compressed bio-gas plants and 300 community and cluster- based biogas plants. In January 2023, the Union Cabinet, chaired by the Honble Prime Minister Shri Narendra Modi, has approved National Green Hydrogen Mission (NGHM). The initial outlay for the Mission will be 19,744 crore, including an outlay of 17,490 crore for the SIGHT programme, 1,466 crore for pilot projects, 400 crore for R&D, and 388 crore towards other Mission components. The Mission will have wide ranging benefits- creation of export opportunities for Green Hydrogen and its derivatives; Decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies. Indias Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW. The targets by 2030 are likely to bring in over 8 lakh crore investments and create over 6 lakh jobs. Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.

The Mission will facilitate demand creation, production, utilization and export of Green Hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms - targeting domestic manufacturing of electrolysers and production of Green Hydrogen - will be provided under the Mission. The Mission will also support pilot projects in emerging end-

use sectors and production pathways. Regions capable of supporting large scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.

In October21, Hon. Prime Minister launched the Pradhan Mantri Gati Shakti (PMGS) scheme. The primary objective of this initiative is to break inter-ministerial silos and integrate the planning of infrastructure projects. PMGS is the National Master Plan for Multi-modal Connectivity, essentially a digital platform to bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. It will incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc. Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, agri zones will be covered to improve connectivity & make Indian businesses more competitive. It will also leverage technology extensively including spatial planning tools with ISRO (Indian Space Research Organisation) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics). The multi-modal connectivity will provide integrated and seamless connectivity for movement of people, goods and services from one mode of transport to another. In this Masterplan the national highway network will be expanded to increase the capacity of roadways and touch the 2 lakh- km mark. The plan envisions the creation of around 200 new airports, heliports, and water aerodromes to boost aviation.

Indias population growth and economic development requires improved transport infrastructure, including through investments in roads, railways, and aviation, shipping and inland waterways. In order to meet Indias aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as Make in India and the production-linked incentives (PLI) scheme to augment the growth of infrastructure sector. Under Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to 10 lakh crore (US$ 122 billion), which would be 3.3% of GDP and almost three times the outlay in 2019-20.

With the aim of strengthening domestic manufacturing in emerging areas the GoI announced PLI Scheme in Battery Storage and Manufacturing of Solar Cell Modules. A budgetary outlay of 18,100 crore has been allocated for National Programme on Advanced Chemistry Cell (ACC) Battery Storage for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC. Similarly, 19,500 crore have been allocated to incentivise manufacturing of domestic solar cell modules.

Another significant sector contributing to Indias GDP is the Steel Sector wherein the GoI has aggressive target of reaching

US$ 300 Mn by 2030, from current production of 124 MMT, which would entail an investment of around US $156 Bn. Expansion projects have been announced by SAIL, JSW, AM&NS, JSPL, Tata Steel etc. Several sustainability projects in carbon capture, Green Hydrogen, linking of Natural Gas to Steel plants, Energy and Water optimisation etc are also envisaged under the decarbonisation theme.

The abovementioned announcements would provide enormous job opportunities in the organised as well as un organised sector and also creates a series of service industry and ancillary industries that push the regional growth creating new urban centres. The projects in the remote and far-flung locations act as epicentres for the regional and economic growth. Hence for the revival of economy it is quintessential that energy projects are set up not only as per envisaged plans but for accelerated growth. Moreover, Indias pledge towards green economy will also ensure opportunities cropping up within definite timeline. This will help EILs cause as it is dependent upon domestic clientele for business.

Your Company expects that the planned projects and investments related to LNG Terminals, Refining projects, Petrochemical Complexes, Coal gasification, Fertilizers, Biofuels, Green Ammonia and Green Hydrogen as well as Energy transition, Decarbonisation and Net Zero related assignments & Renewable Energy would provide good business opportunities in near future. Necessary reforms/ revamps within the Offshore/ on-shore installation, Refineries, petrochemicals, fertiliser, NFM and other installations could also probably be taken up in future.

Overseas

Global growth slowed to 3.2% in 2022, well below expectations at the start of the year, held back by the impact of the war in Ukraine, the cost-of-living crisis, and the slowdown in China. More positive signs have now started to appear, with business and consumer sentiment starting to improve and food & energy prices falling back. Nonetheless, a gradual improvement is projected through 2023-24 as the drag on incomes from high inflation recedes. However, Global growth is still projected to remain at below trend rates in 2023 and 2024, at 2.6% and 2.9% respectively, with policy tightening continuing to take effect.

The world oil demand growth estimate for 2023, is unchanged at 2.3 mb/d, however, there are minor downward adjustments reflecting the latest developments in the OECD region, primarily in OECD Americas and OECD Europe as per the Oil Market Report, IEA. The stronger-than-expected demand is seen in non-OECD in January and February which necessitated some upward revisions. Oil demand in the OECD is forecast to increase by 0.1 mb/d in 2023, while the non-OECD is forecast to grow by 2.2 mb/d.

The Outlook indicators support robust GDP growth in 1Q23 for India, the nation is likely having accelerated its growth compared with 4Q22 GDP growth. A plethora of downstream

refinery expansion, grassroot & expansion petrochemical projects being planned by NOCs in near future are foreseen. The Russia - Ukraine war has also placed energy security at the top of the agenda of many major oil importers, thereby accelerating their plans for a transition to green growth. Several LNG projects, both liquefaction and regasification are seeing FID closure in wake of same crisis.

An analysis of the year gone by will reveal that the oil and gas industry earned record profits in 2022, providing ample cash flow to fund their strategies, and while O&G companies recognize geopolitical and macroeconomic uncertainty in the year ahead, theyve also been given a clear mandate to secure supply in the short term while transitioning to cleaner energy in the long term. Increases in natural gas investment are expected in 2023, including investments that reduce the greenhouse gas intensity of natural gas and its related infrastructure. In the United States, more natural gas is being produced with a view to reducing carbon and methane emissions and exporting incremental supplies, especially to Europe. Certified natural gas and carbon-neutral LNG are expected to continue increasing momentum in 2023.

With start up additional refining capacity of around 80 MMT and worries of recession, in coming year, one may witness a weakening demand. Thus, over next couple of years, projects undertaken by refiners would be a mix of expansion projects alongwith project focusing on Energy efficiency, Emission reduction, Operational excellence, co-processing of Bio feedstocks and production of renewable fuels are envisaged. Several LNG, petrochemical, Fertiliser projects are envisaged to come up in Africa and Middle East region. In addition to it, plethora of CCUS projects driven by both need for Blue H2 and decarbonization are being planned in EU, US and Middle East region where strong tax credit or clean energy funding is available for such projects.

Owing to geo-political situation arising out of Russia-Ukraine war, leading to abandoning of projects in Russia by US and EU engineering consultant and technology providers, several projects opportunities are now available for Indian and Chinese engineering firms and equipment suppliers.

The major emerging global themes during the last few years, besides the rise of Renewables & Digitization, have been DeCarbonisation & Hydrogen. Last couple of years have seen significant investments in projects related to these 2 themes. While more thrust in India is on green H2, the global scenario has been witnessing equal thrust on Blue H2 projects as well through planning for Carbon capture projects. Investments are expected in these emerging areas as well.

The IEAs Net Zero by 2050 scenario lays out a narrow but achievable pathway to net zero emissions in the energy sector by mid-century - a trajectory consistent with limiting global temperature rise to 1.5oC. Following this pathway represents

the worlds best chance of avoiding the worst effects of climate change, and requires accelerating the shift to non-emitting sources of energy, such as wind and solar; increasing energy efficiency; electrifying transport, industry and buildings; expanding the use of clean hydrogen and other low-emission fuels; and investing in emissions abating technologies, including negative emission technologies. Despite the continued growth of emissions in 2022, countries have increased their ambitions on climate change. According to analysis by the International Energy Agency (IEA), if countries implement in full and on time their Nationally Determined Contributions (NDCs) and net zero pledges, as well as sectoral pledges such as the Global Methane Pledge and the Glasgow Leaders Declaration on Forests and Land Use, the world would be on a pathway to limiting warming to around 1.7 ?C by 2100.

The transformation of the global energy sector needs to be led above all by a huge scale-up of investment in clean energy technologies. The needed increase in clean energy investment is most stark in emerging market and developing economies outside China, where clean energy investment needs to increase almost seven-fold by 2030. Achieving this will require a combination of scaled-up international public support, international private capital and domestic investment, facilitated by stronger and more effective policies and Technology availability.

Analysing the above trend, your company is well geared up to leverage its technical prowess for rendering service in conceptualization and implementation of projects in these evolving themes.

3. Financial Performance

The key highlights of the financial performance of the Company for the year, as stated in the audited financial statement, along with the corresponding performance for the year are as under:

Sl. No. Particulars For 2022-23 For 2021-22
A. INCOME
i) Consultancy & Engineering Contracts 141791 145750
ii) Turnkey Contracts 186585 141290
iii) Other Income 16912 13673
TOTAL INCOME 345288 300713
B. EXPENDITURE
i) Cost of rendering services 298762 253610
ii) Depreciation & Amortization 2522 2319
Total 301284 255929
C. PROFIT BEFORE TAX (A-B) 44004 44784
D. Provision for Current tax 9223 11668
E. Provision for Deferred Tax 554 (957)
F. Earlier Year Tax Adjustments, Short/(Excess) 12 (367)
G. PROFIT FOR THE YEAR (C-D-E-F) 34215 34440
H OTHER COMPREHENSIVE INCOME 708 2577
I. TOTAL COMPREHENSIVE INCOME 34923 37017

3.1 Segment wise Performance

In line with the Indian Accounting Standard (Ind AS-108) "Operating Segments", the Company has (segmented) strategized its business activity into two business segments i.e., Consultancy & Engineering Projects and Turnkey Projects, taking into account the organizational structure and internal reporting system as well as different risks and rewards of these segments. Segment results are given below:

Particulars Year ended 31.03.2023 Year ended 31.03.2022
Segment Revenue
Consultancy & Engineering Projects 141791 145750
Turnkey Projects 186585 141290
Total 328376 287040
Segment Profit From Operations
Consultancy & Engineering Projects 38309 40849
Turnkey Projects 5211 3565
Total(A) 43520 44414
Interest 144 85
Other un-allocable expenditure* 16284 13218
Total(B) 16428 13303
Other Income(C) 16912 13673
Profit Before Tax(A-B+C) 44004 44784
Income Tax Expense 9789 10344
Profit for the year 34215 34440
Capital Employed** 210566 192505

* Includes 3,144.20 lakhs (previous year: 2,248.62 lakhs) towards accrued provident fund liability/provision for impairment on account of Provident Fund Trust Investment.

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

3.2 Financial Performance in relation to Operational Performance

The Company has registered turnover of 3,28,376 Lakhs in FY 2022-23, as stated in the audited financial statement. The revenue from consultancy business is 1,41,791 Lakhs and from Turnkey Project is 1,86,585 Lakhs.

The Company has recommended a final dividend of 1/- per share (Face value 5/- per share) in addition to interim dividend of 2/- per share paid during the year.

3.3 Key Financial Ratios

The Company has identified the following ratios as key financial ratios:

2022-23 2021-22
PBT / Turnover 13.40% 15.60%
PAT/ Turnover 10.42% 12.00%
PBT / Capital Employed 20.90% 23.26%
PAT / Net Worth 16.25% 17.89%
Turnover / Net Worth (number of times) 1.56 1.49
Sundry Debts / Turnover (Months Turnover) 1.29 1.55

As there is no significant change (i.e., change of 25% of or more as compared to the immediately previous financial year) as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in above key financial ratios. Hence, no explanation is annexed thereto.

4. Risk & Concerns

The Company has a Risk Management Policy with a robust Risk Management frame work, which facilitates assessment of new risk and review of presently identified risks. Based on the probability and impact of the risk, requisite controls and action plans have been designed and implemented. The objective of the corporate Risk Management function is to ensure sustainability of the organization by professionally managing the Enterprise Risks. Enterprise Risk Management involves Identification, assessment, analysis, mitigation and monitoring of the Risks. The Enterprise Risk Management framework at EIL is designed towards the above. The Enterprise Risk Management system of your Company performs the above-mentioned Risk Management activities across the business functions of the organization. Your Companys Risk Management process has

also been integrated with the Quality & HSE Management System requirements as per ISO 9001 & ISO 45001, so that the same is taken care effectively on day-to-day basis for all deliverables and activities. The Risk Management framework of your Company is overseen by the Risk Management Committee of the Board. EIL has identified Key Risks across various business processes namely Procurement, Construction, Engineering, Project Management, Marketing, Human Resources, Cyber Security, ESG, Legal, Accounts & Recovery. An independent group (Corporate Risk Assurance) audits the compliance verification of mitigation action plans regularly and the results are presented to the Risk Management Committee of the Board. Your Company uses its in-house developed software package Enterprise Risk Management System (ERMS) to conduct these audits across multiple locations and departments. Being a Project Management organization, Project Risk Management framework has been put in place so that project specific risks are identified, assessed and mitigated. Regular Risk Management meetings are conducted and reports are issued to the stakeholders. The status of Enterprise Risk Management (ERM) & Project Risk Management (PRM) Systems is presented to the Risk Management Committee of the Board regularly. A digital newsletter Risk Screen is being issued to all employees, to promote awareness and to sustain & improve the Risk Management culture. Employees across all levels are being continuously trained on Risk Management to improve awareness levels and increase their contribution and involvement towards the Risk Management function. EIL is continuously improving its risk management capabilities in order to protect and enhance the interests of its stakeholders.

5. Internal Control System

The Company has adequate systems of internal controls and documented procedures covering all financial and operating functions, in place. These have been designed to provide reasonable assurance with regard to maintenance of proper accounting controls, monitoring economy and efficiency of operations, protecting assets from unauthorized use or losses and ensuring reliability of financial and operational information. The Company has continued its efforts to align all its processes and controls with global best practices. Some significant features of the internal control systems are:

• Preparation and monitoring of Annual budgets for all operating and service functions.

• Well established reviews by Internal Audit teams and reports to Management / Audit Committee regularly on the adequacy and compliance of internal controls across the Organization.

• Clear delegation of power with authority limits for incurring Capital and Revenue expenditure.

• Corporate policies on Accounting and Capital Acquisition.

• Corporate Management Information System (CMIS) for Management Information System etc.

• MoPNG Pariyojana Dashboard is used by Ministry Monitoring Cell (MMC), EIL, for third party monitoring of projects on behalf of MoPNG.

6. Memorandum of Understanding (MoU) with Govt. of India

MoU with MoPNG (Ministry of Petroleum & Natural Gas) for the financial year 2022-23 was signed on December 20, 2022. With a focus on profitability and sustainable growth, various financial and non-financial parameters like revenue from operations, return on net worth, asset turnover ratio, export/ income from overseas and commissioning of solar power system etc. have been included in the MoU for the year 202223. Besides, certain Governments priorities/ programmes such as procurement from GeM, MSE sector have been also included for compliance.

During 2022-23, the Company was awarded "Fair" rating in MoU (Memorandum of Understanding) for the financial year 2021-22.

7. Significant Initiatives

Conceptualization of several grassroot projects along with Owners support in Petrochemical segment is underway through Feasibility assignments. Going forward, we do foresee, several of these Feasibility assignments to culminate into big ticket investments, and not only bring revenue for client and EIL, but also development for the nation.

Apart from maintaining its leadership position in Oil & Gas(including Refinery & Petrochemicals), Fertilizer and NFM sector, we are focusing on emerging opportunities in Coal to Chemicals, projects under decarbonization theme, viz. Energy efficiency & emission reduction projects, Green H2/ Ammonia/ Chemicals and CCUS projects. In last 1 year, several such consultancy assignments have been bagged. Leveraging its rich experience technical prowess, EIL envisions to be global leader offering Total Energy Solutions for Sustainable Future. EIL is devoted to play a crucial role for helping nation fulfil its Net Zero pledge and COP-21/26 commitments by offering its services to clients in setting up sustainability related projects.

As a part of strategic diversification initiative, your company has entered into a Memorandum of Understanding (MoU) with Munitions India Limited (MIL) for execution of Plant Modernization & Infrastructure Projects of MIL. MIL, Indias biggest manufacturer and market leader, is engaged in Production, Testing Research & Development and Marketing of comprehensive range of ammunition & explosives for Army, Navy, Air force & Para-Military Forces. The MoU heralds EILs foray into Defence sector, giving a fillip to the diversification into newer areas.

Pursuant to the long-standing relationship, Oil India Limited and EIL inked a Memorandum of Agreement (MoA) in Feb23. It is envisaged that through the MoA, Oil India will engage EIL to carry out niche technological studies and feasibility reports for the Upstream, Midstream and the Downstream value chain

including HSE aspects pertaining to statutory and regulatory compliances.

EIL, ONGC Energy Centre Trust (OECT) and CSIR-IIP have signed an MoA for development and commercialization of technology for Recovery of Rare Gases from fossil fuel reserves.

Your company has been onboarded by Ministry of Housing & Urban Affairs (MoHUA) to provide transaction advisory services for municipal solid waste management projects. An MoA has been signed between MoHUA- GoI and EIL. EIL has been selected to provide these services as part of the Green Growth agenda of the Government of India. EIL shall be providing its services to implement large-scale Waste to Electricity and Bio- Methanation/CBG projects in about 25 Indian cities to covert waste to valuable resources. This is a major breakthrough as EIL is positioning as being a one stop consultancy organization for waste management and plastic recycling.

The thrust on sustainable solid waste management has been strengthened under the ambit of Swachh Bharat Mission-Urban 2.0, with the overall vision of creating garbage-free cities. Focusing on this objective, MoHUA has decided to set up large- scale solid waste processing facilities in million plus cities. There are 59 cities with million plus population in India like Lucknow, Kanpur, Bareilly, Nasik, Thane, Nagpur, Gwalior, Chennai, Madurai, Coimbatore to name a few. For management of organic/wet fraction of municipal solid waste, bio-methanation plants have been proposed in these million plus cities. EIL shall assist and handhold the million plus cities in developing such projects for larger quantum of waste integrating circularity in waste management. The success of these projects will be pivotal as it will be conceptualized and executed as benchmarking for such projects. Thus, collaboration for providing support in preliminary technical assessment and Transaction Advisory services from EIL will have significant impact. EIL shall subsequently handhold ULBs in carrying out monitoring process of these PPP projects during the construction phase and shall assist in obtaining statutory approvals. The initiative will result in additional processing capacity of 15,000 TPD for Bio-Methanation and 10,000 TPD for Waste to Energy respectively.

EIL is also playing a crucial role in providing technological solutions for decarbonizing the aviation sector in collaboration with CSIR-IIP, Dehradun. In this regard, EIL is providing technology support and consultancy services for production of Bio-ATF for MRPL. EIL is poised to take several upcoming opportunities in the Biofuels segment based on its project implementation credentials in this sector. In addition, EIL is involved in the preparation of DFR for setting up bamboo based biorefinery project at NTPC Bongaigaon and also in preparation of Detail Feasibility Report for Biomass to Ethanol via Gasification and Gas Fermentation route for SEDL.

In order to leverage EILs capabilities in allied sectors of Salt Caverns, EIL has inked a Memorandum of Agreement (MoA)

with DEEP.KBB GmbH, Germany for Salt Cavern Projects. The alliance shall jointly pursue Basic Design, Detail Engineering, Project Management, and Construction Supervision Services for underground and ground Salt Cavern Storage Facilities for Hydrocarbons and other products like Hydrogen & Carbon Dioxide for Indian and International clients, in line with EILs vision "To be a Global Leader offering Total Energy Solutions for a Sustainable Future." Technical Support Services (TSS) contracts are also being worked in Private and PSU Clients in domestic sector.

The Company is also conceptualizing and mapping opportunities in the GATI SHAKTI Mission for providing services in the Port & Terminals, Containers and Ware houses across the identified regions. Key assignments have also been bagged in the area of energy efficient infrastructure. Some of them include consultancy services for Jewar Airport, Noida, AP Airport Development Corporation etc. We are anticipating more such projects in this sector in near future. It is worth noting that EIL is already implementing infrastructure projects related to Data Centres, Leh Airport, Fintech University & Technological Park, Horticulture Marketing, Restoration of Heritage buildings etc.

EIL has also made significant suo-moto initiatives to offer prospective clients with opportunities for improving performance by means of Energy Optimization, Yield Improvement, Refinery Petrochemical Integration, Pet-Coke Gasification for Refinery-Fertilizer Integration, Bottoms Upgradation, Coal Gasification, Bio Fuels, Green Hydrogen etc.

Continuing to our entry into Green H2/ Chemical segment by securing a Study assignment from GAIL for Hydrogen Blending in Natural Gas Pipeline / CGD Network and Conceptual Study from NICDC for Setting of Green Hydrogen Facility in Dholera Special Investment Region (DSIR), this year too we have bagged several assignments in this domain. In last 1 year, your esteemed company bagged Owners Engineer for Green H2 and /EPCM services for BOP project at Vijaipur from GAIL, LEPC Selection, Feasibility Study and Basic Design of OSBL for green H2 electrolyser & associated system at Bina from BPCL, Consultancy Services for Feasibility and Basic Engineering of Indias first long distance H2 pipeline (200 km) from a private client, Consultancy services for preparation of Detailed Feasibility Report (DFR) For setting up 4000 TPD Green Ammonia Plant from a major private Refiner, DPR and Technical Specification for 10 TPD CO2 Ethanol Project for NTPC, Green Ammonia Plant for HMEL to name a few assignments secured in these segments.

With respect to governments emphasis on Valorization of coal for energy security and petrochemical import substitution, your company bagged several consultancy assignments from major players in Coal, power and Steel sectors. EIL won PMC assignment for Pre-award activities for Indias first Lignite to Methanol Project at Neyveli, Consultancy Services for setting up of Surface Coal Gasification based Ammonium Nitrate Plant at Majri Area for WCL and Feasibility Study for Spare Syngas and

Coal utilization for making Value- added products from JSPL. EIL is in active discussion with these players to pursue other opportunities arising in their expansion and decarbonisation projects. Further your company is in active discussions with various other firms for Coal Gasification assignments.

Your company secured couple of assignments from a major steel sector client marking EILs entry in the Steel Sector.

Keeping in view of the opportunities under sunrise areas, your company bagged prestigious assignment in capacity of Owners Engineer for Polysilicon and Monosilane unit from a major private player. These units are one of the key intermediates blocks in Solar Cell Manufacturing.

The "ENGSUI" platform for promoting and funding of Start-ups as per the directive of MoPNG is operational at EIL. Seeding fund for several startups have been provided over the last 5 Years. Further EIL is also evaluating prospective projects for equity investments in emerging areas of companys interest.

EIL has marked its entry in Latin America, with bagging of a Prestigious PMC assignment for setting up NGL Plant and 300MW CCGT Power Plant for Govt of Republic of Guyana. The Dangote Refinery Project, one of the largest projects being executed by the Company in Africa, is in advanced stages of completion. EIL also secured a Major grassroot world scale Fertilizer Project in Nigeria, and talks are already on to convince the client for awarding the 2nd phase of the complex also to EIL. EIL is also contemplating its focus on the other African countries as a part of its geo-strategic outreach, and is in active discussion with various other countries for several project opportunities. EIL, in its endeavour to seek projects in Middle East, has managed to list itself with ADNOC Group Companies for Technical Support Services (TSS) contracts, General Service Agreement with BAPCO, Bahrain and also for large projects in both onshore and offshore sectors. Apart from this, the Company has also been leveraging its presence in Middle East, Africa and neighbouring countries. Leveraging its presence in Russia, EIL is in discussions with clients for projects / assignments in the hydrocarbon sector.

EIL has identified opportunities that are being pursued in view of the Bilateral Engagements with Countries and Line of Credit offered by Government of India to countries for Energy Projects. Emerging opportunities arising in Oil and Gas (incl Refineries and Petrochemicals), Fertilizer, Metallurgy, Infrastructure sector in Core areas as well as sustainability domain are being actively pursued with clients in SE Asia, Middle East, Africa, CIS, Latin America & SAARC countries.

To sum it up, is imperative for a company like EIL to leverage its technical prowess for rendering service in conceptualization and implementation of projects in area of evolving themes. Here it is also worth mentioning that while executing projects,

EIL is actively involved in giving fillip to Governments Make In India and Atmanirbhar Bharat theme.

8.1 Human Resources

HR plays a pivotal role in the Company by enabling strategic utilization of Human resources to serve business goals. With the constantly evolving business scenarios and transformational changes in the energy sector, EIL has always focused on continuous transformation of HR practices. EIL has an empowering work environment which promotes effective talent management and ensures development and career growth of its people which motivates them to achieve their full potential. Being a people-centric organization, the HR function continuously aligns with the growth ambitions of the organization and creates policies and processes to equip the Human Assets to deliver results and achieve goals. Endeavors taken during the year have consolidated the initiatives taken in the past and built on them further for creating systems towards sustainable performance.

Some of HRs Key Initiatives and Best Practices include:

• EILs Talent acquisition strategy aims at identifying and developing a well-qualified and effective talent pool. To meet dynamic business needs, diverse recruitment models are adopted with intake of fresh talent, domain specialists, short-term hiring through empanelled agencies, fixed term hiring and on boarding consultants/ advisors.

• A robust and transparent Performance Management System is in place which enables the fostering of a performance-based culture and performance assessment in line with Industry best practices. The performance appraisal process and promotion policy for officers was further reviewed and implemented to drive higher employee engagement.

• As an endeavor to continuously align Companys processes with objective of sustainability and for achievement of Net Zero target by 2035, Company is committed to go paperless to the extent possible. Accordingly, digitization exercise of various employee claims was taken up during the year to make the processes more user and nature friendly.

• Various employee welfare initiatives were taken ranging from organizing talk cum interactive sessions on emerging health issues and building awareness on lifestyle enrichment matters, extension of medical benefits through empanelment of hospitals etc. Aarogyam i.e. Daily Online Yoga Session for Employees and their Family members have been initiated to propagate the concept of wholesome fitness which will lead to enhancement of employee productivity.

• Facility of Creche established during the year in EIL Gurugram complex for providing best childcare to employees children and to nurture them for future.

• Training & Development succeeded in its endeavour in conducting training programs as per the ATC 2022-23 to enhance domain and behavioural competencies of the employees.

• To sustain and enhance the competitive edge of our human resources and keep abreast with Industry trends and practices in the current as well as avant-garde areas of Technology, Management and Leadership, the SUVIGYA VYAKHYAAN SHRINKHALA was launched wherein Expert Lecture Sessions were held on monthly basis through speakers from Industry and Academia.

• In continuation of EILs efforts to augment the technical capabilities of the Industry, 25 technical training programs for various national and international clients in Oil & Gas, Fertilizer, Infrastructure sectors were organized.

• Aarohan-Leadership Development Programme: The

Leadership Journey of 31 participants of Batch XIV-A of Aarohan commenced in November 2022. The programme is uniquely designed to include Action Labs that provide Development Inputs on themes centred around Leading Self, Leading Teams & Leading Organizations.

• Mentorship Development Programme is in place wherein trained mentors have been assigned to the new comers (mentees) in the ratio of 1:3 (Mentor: Mentee). A total of 100 Management Trainees who joined EIL in 2022-23 have been assigned mentors and also during FY 2022-23, mentors were allocated to regular employees who joined since 2021.

• Leveraging "YOUPHORIA"- The Youth Engagement Platform for Millennials, a Photography Competition- "Darpan" for millennials in EIL was organized. Industry level Technical Paper Writing Competition-Urjaalekh 2022 was organized to encourage millennials across all OIL & Gas PSUs.

• Mother to Mother (M2M) - New Mother Mentoring Programme was undertaken that facilitated one-on-one advice to the new mothers with children upto 2 years of age by more experienced senior working mothers.

• e-Learning Module have been developed to augment the training inputs provided to Management Trainees and other New Joinees on Company Business, Department Functions, Key Processes. Thus, the learner has the flexibility to learn at his/her own pace and schedule.

8.2 Operational Improvements

Keeping in view the Companys emphasis on improving the

operational efficiency, various initiatives have been undertaken

to move towards creating a robust Knowledge Management

(KM) System. Electronic Document Management System (eDMS) is being utilized for live projects effectively for this purpose.

Other softwares are also being used by various divisions like Project Controls such as Project Progress Monitoring System (PPMS), Project Material Management System (PMMS), Computerized Online System for Material Allocation at Site (COSMAS), Hold Management System (HMS) etc. for improving the efficiency of projects.

Technical departments are also using various other software packages like Process (Process Data Integration System), Piping (Plant Design Management System), Structure (STAAD. Pro) etc. for improving the operational efficiency of EIL system.

8.3 Marketing

The onus of getting business for company essentially lies on effective Marketing & Business development activity, which in EIL is predominantly entrusted to the M&BD department. Marketing and Business Development at EIL, provides the much-needed outreach to fulfil the growth ambitions of the organization. Your company has undertaken various endeavours during the year to build a strategic and sustainable portfolio. The concept of key account manager has benefitted in anticipating the requirements of the clients, carrying out regular interactions and providing the solutions in the best possible manner. Besides maintaining a regular connect with existing clients in core sector, the team is constantly getting new clientele in core as well as diversified sector. Marketing and Business Development is pursuing sustainable sectors, New Geographies as well as new business models. The team is also providing support to the Abu Dhabi office of EIL in its pursuit for projects from the Middle East region.

The company management is actively engaged with the clients with the evolving business scenario and is providing significant direction to the team with regular interactions. The Regional Offices and Procurement/ Inspection Offices in India and abroad, International offices at Abu Dhabi & Russia have been mandated by the management with scouting for business opportunities in their respective regions of operation and provide support to the Marketing and Business Development team at Head Office.

8.4 Diversification

While Oil & Gas shall continue to be at the core of all our operations, we at EIL are always scouting for opportunities wherever they synergize with EILs core competencies in order to safeguard the Companys business interests.

Last couple of years, leveraging our technical prowess in core Hydrocarbon and NFM sectors, significant diversification have been made by your company into Sunrise sectors & Energy transition (Coal gasification, Bio-Fuels, Green H2/ Ammonia/ Chemicals, CCUS) and steel sector. Under decarbonization and Net zero theme, we do foresee a lot of opportunity cutting

across all the sectors, be it Oil & Gas, Fertiliser, Non-Ferrous (NFM), Steel, Coal plants and Power, wherein EILs experience in carrying out energy efficiency & Emission reduction studies and handling/ treatment of CO2 gases can come handy. Talks are underway with several clients for sustainability assignments. Your company is very focused on the opportunities arising in Green H2/ Ammonia/Chemicals due to favourable policy mandate been given by the government. Its been EILs endeavour to play a significant role in realising Governments Net Zero pledge and sustainability commitments which are aimed in saving environment.

EIL is also mapping all the emerging areas wherein Government, with the Aim of strengthening domestic manufacturing, is announcing PLI Scheme or VGF for setting up projects. Be it Battery Storage or Manufacturing of Solar Cell Modules through setting up Metalurgical grade, Polysilicon plant route or Bio-Fuels projects or waste to Energy projects, EIL is in active discussion to render its services in capacity of a Technical consultant.

EIL is also in active discussion with Power sector clients to pursue opportunities wrt rendering consultancy services in expansion and greenfield projects, and also sustainability projects wrt Flue gas desulphurisation and decarbonisation. Projects under Nuclear sector are also on EILs radar.

As discussed above, EIL has been in active discussion with Steel players and also bagged couple of assignments. Besides the core steel plant expansion, we do foresee several opportunities in steel plants related to decarbonisation theme, viz. energy efficiency & emission reduction studies, Linking of natural gas and H2 to furnace, Energy and Water optimisation etc.

Infrastructure, being the main driver behind economic growth of countries, continuous efforts in the sector are being made by the Company. EIL through its strategic initiatives has managed to bag infrastructure and building projects which includes Residential, Institutional, R&D centres from the prestigious Institutions like IITs, IIMs, UIDAI, HPCL, Ministry of Housing and Urban Affairs etc. EIL is also part of the High Speed Rail Corridor project of NHSRCL and is implementing Airport Terminal Building projects for the AAI.

Having mapped the sunrise sectors and potential business thereof, EIL has initiated sustained business development activities in the sectors of Water and Waste Water Treatment, Urban Infrastructure, Ware House and Cold Storages, Data Centres, PCPIRs, Airports, AMRUT, etc as part of expansion into new lines of business. EIL is also preparing itself for strategic entry into the sectors of Ports, Harbours and Jetties. Active discussions are on with major clients.

The Defence Sector also provides an array of opportunities with complex and niche chemicals for weaponry being manufactured at Ordnance Factories. EIL is making endeavour for leveraging its expertise of Technical Consultancy in the Hydrocarbon and Chemical arena to the Defence sector to gain foothold.

With reference to diversification in new territories, last 1 year has been very fruitful. After almost a decade, your company made its re-entry into South America continent by bagging a major consultancy project for upcoming grassroot NGL plant and 300 MW CCTG power plant in Guyana. Attempts are on to win more projects in that region. Several consulting assignments, including rendering EPCM services for a major grass root world scale fertilizer complex, have been won in Nigeria. Besides this, your company is in active discussion with clients in other African Nations, ME region and in Russia to render services.

8.5 Cost Control & Monitoring

Effective cost control measures like reduction of support staff and overheads, better cost monitoring etc. have been taken up.

8.6 Corporate Social Responsibility

The CSR Policy of the Company is aligned with the national focus on inclusive growth, DPE Guidelines on CSR and the Companies Act 2013. The CSR Committee of the Board and the CSR Council formed by EIL Management provide direction and oversee the CSR initiatives of the Company.

9. Environment Protection & Conservation, Technological Conservation, Renewable Energy Development, Foreign Exchange Conservation

Climate change is one of the most critical challenges being encountered by human civilization. Communities across the globe have been pitching to mitigate the climate change for a long time. Various geo political conflicts across the world have further added to these challenges. All these are presenting an unprecedented challenge to public health, food systems, fuel/ gas supply, energy security and the world economics.

Rapid increase in the crude prices and raw material cost imported from outside is another major area of concerns for our nation. While for some of the companies, it is a battle for survival, there are a few that seized this opportunity to make fortunes of this state. New online education technology system, health, pharma, testing labs and wellness sector, financial services and non-banking financial companies, remote working tools, E-commerce and delivery based service, managed office spaces services, OTT platform are some of the sectors, which are going to be benefited from the new normal. In this era of new business dynamics, Companies are focusing on providing innovative technological solutions for energy security, carbon neutral technologies, measures to reduce energy and carbon footprints, renewable energy development including green hydrogen & solar power, improving bio-diversity, and similar measures to combat the challenges presented by existing scenario.

In the rapidly changing global energy landscape, carbon intensity is becoming a key performance indicator for the success of any organization. New project investments are also diverted towards clean & green technologies instead of carbon

intensive technological solutions. Hence, it is quintessential to become a net zero service provider to enhance Companys brand Image. Your Company has always been conscious of the fact that we have to respect nature and while doing so, we have evolved new technologies for effluent recycle/ reuse leading to Zero Liquid Discharge (ZLD) requirements so that no polluted water is discharged into our clean rivers or sea. On similar grounds, EIL has invented several green technologies & have also been providing consultancy in the area of green hydrogen, renewable energy, biodiversity improvement, control of volatile organic compounds, hazardous and solid waste management, municipal solid waste management, recovery of oil from oily sludge and its bio-remediation thereafter, besides opting for energy efficient processes and treatment systems.

EIL has declared 2035 as the year to achieve Net Zero from its operations aiming towards fulfilling our Indias target of achieving Net Zero by 2070. In addition to fulfilling its own decarbonisation objectives, EIL is committed towards assisting its esteemed clientele in their energy transition journey towards net zero by providing clean and green technological solutions leading to a sustainable future for the generations to come. EILs effort towards developing and initiating Make-in- India technology program will go a long way for the sustainable growth of the country.

10. Corporate Management Information Systems

Management Information System in EIL is continuously fine- tuned to cater to the information needs for effective and quick decision making as well as statutory requirements. CMIS delivers key project information to the Management, through a Real-Time web portal. The department has been providing vital metrics to various Divisions and Senior Management for efficient monitoring highlighting operating variables, achievement vis-a-vis budget and other decision support data.

11. Disclosure by Senior Management Personnel

Reflecting EILs commitment towards increasing transparency in all spheres, Senior Management Personnel confirmed that none of them have material, financial and commercial transactions with personal interest that may have a potential conflict with the interest of the Company at large.

12. Cautionary Statement

Statements in Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates are based on the current business environment. Actual results could differ from those expressed or implied based on future developments, both in India and abroad.