Engineers India Ltd Directors Report.

To

The Shareholders

Engineers India Limited

Dear Members,

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

1. 2018-19 in Retrospect

Your Company sustained its good performance during FY 2018-19. The key highlights of the financial performance of the Company for the year, as stated in the audited financial statement, along with the corresponding performance for the previous year are as under:

Financial Performance

(Figures in 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 Gas exploration blocks including dry well written off amounting to 1794 Lakhs ( previous year : र 2,643 Lakhs)

** 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.

2. Dividend

The Board of Directors of the Company has recommended a final dividend of र 0.75/- per share (of face value of र 5/- per share) for the financial year 2018-19, 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/- per share amounting to र 25276.46 Lakhs excluding dividend distribution tax. The payment of final dividend is, however, subject to approval of the shareholders in the ensuing Annual General Meeting of the Company which shall be paid to the Members whose names appear in the Register of Members as well as beneficial ownership position provided by NSDL/ CDSL as on 19 September, 2019.

3. Transfer to Reserves

The Company is proposing to transfer to general reserve, after adjustment of payment of proposed final dividend (including dividend tax-subject to the approval of the shareholders in AGM), from retained earnings balance of 12039.47 Lakhs as on 31 March, 2019.

4. Disinvestment by the Government of India

During the year, the President of India acting through the Ministry of Petroleum & Natural Gas has disinvested 1,25,738 equity shares to "Bharat 22 ETF" through a New Fund Offer in terms of scheme framed in this regard. Consequently, the Government of India (Promoter) share holding as on 31.03.2019 stands reduced to 52% (32,85,63,993 equity shares).

5. Investor Relations

It has been a constant endeavour of your Company to achieve highest standards of corporate governance and all measures are undertaken to enhance market confidence and improve shareholder engagement through periodic, regular, transparent and open communication. The Management is committed to sharing information with investor community on the Companys performance and convey essential updates on likely expected projects, new business initiatives, future outlook, industry insights and avenues of growth potential and investment plans periodically.

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

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

6. Management Discussion & Analysis

In terms of the provisions of Regulation 34 of the Listing Regulations, the 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 the Annual Report for top 500 listed entities based on market capitalisation. In compliance with 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 in Offshore Oil & Gas and LNG sectors.

The following consultancy assignments were successfully completed during the year:

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

• Feasibility of Developing a Crude Oil Tank Farm and associated POL 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 of Mumbai Port Trust, Maharashtra.

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

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

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

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

8.2 Pipelines

EIL is credited with design, engineering and execution of 48 pipeline projects including cross-country pipelines for transportation of crude oil, refined petroleum 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 associated facilities at Mumbai & Kochi refineries of Bharat Petroleum Corporation Limited (BPCL).

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

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

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

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

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

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

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

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

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

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

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

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

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

• Engineering, Procurement, Inspection & Expediting, Construction Supervision, Pre-commissioning & Commissioning assistance ervices for laying of 16" x 4.2 km pipeline from H2SO4Tank of Indian Oil Corporation Limited (IOCL) Haldia Refinery to existing IOCL jetty.

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

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

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

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

• PMC services for Storage Augmentation of LHC Products at GAIL, Vijaipur.

• PMC services for sustained evacuation of natural gas from ONGC Gandhar Fields into High Pressure HVJ-DVPL and DVPL Upgradation Natural Gas Pipeline network.

• Detailed Feasibility Report (DFR) for Pipelines for Rasayani Complex, 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 refinery sector in India, having built combined refining capacity of more than 150 MMTPA (3 million BPD) in the country. Its portfolio includes grass root refineries, Diesel Hydro-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 the year:

• PMC services (Phase-II) for Revamp and Capacity Enhancement Project 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 of revised pre-project activities of Vizag Refinery Modernization Project (VRMP), HPCL, Andhra Pradesh.

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

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

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

• Distillate Yield Improvement Project at IOCL Haldia Refinery.

• EPCM services for 0.7 MMTPA DHDT and supporting facilities project 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 at Vadodara, Panipat, Mathura, Haldia, Bongaigaon and Digboi.

• EPCM Services for BS-VI Fuel Quality Project of HMEL, Bathinda Refinery.

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

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

• PMC and EPCM services for Gasoline Hydro treating Unit Project at 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 Corporation Limited).

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

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

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

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

• Detailed Design Consultancy services contract, awarded by NRL for MS Block Revamp Project at Numaligarh.

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

• Health Assessment, Engineering, Procurement Assistance for Revival 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 for capacity expansion of BORL Bina Refinery, Madhya Pradesh from 7.8 MMTPA to 15 MMTPA with integrated petrochemical complex .

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

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

8.4 Petrochemicals

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

The following Petrochemical assignments were successfully completed during the year:

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

Significant progress has been made in the following petrochemical project assignments:

• Propylene Derivative Petrochemical Plant (PDPP) of BPCL Kochi Refinery.

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

• GGSR Polymer Addition Project of HMEL at Bhatinda.

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

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

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

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

8.5 Strategic Storages

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

Under Phase-I of the Strategic Storage programme, EIL provided PMC services to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction of underground unlined rock cavern storages in Vishakhapatnam, Mangalore and Padur having a total capacity of 5.33 MMT. During the year, Mangalore-Padur Pipeline, 110 kV HT line and Padur carven in Karnataka have been commissioned. The strategic storages at Vizag, Mangalore and Padur were also dedicated to the nation by Honble Prime Minister of India.

8.6 Metallurgy

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

During the year, following key metallurgy assignments were completed:

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

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

• Study for structure strengthening in Hindalco plant.

• PMC services for commissioning of Rectifier in NALCO Alumina Refinery, Damanjodi.

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

• Consultancy services for 2nd Raw Water Plant at NALCO Alumina Refinery, Damanjodi.

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

• Consultancy services for procurement and installation of Reclaimer and Associated Facilities in NALCO Alumina Refinery, Damanjodi.

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

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

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

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

• Preparation of Technical Assessment Report for requirement of land, water & power for NALCOs aluminium downstream project.

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

8.7 Infrastructure

EILs foray into the Infrastructure sector has met with great success with the Company having executed a large number of projects for key clients in the sector. The Companys wide spectrum of services for this sector include Project Management, Project Management on Depository Basis, Third Party Inspection (TPI), Quality Assurance, Independent Engineer & Lenders Engineer services and Project Appraisal and Project Execution Services.

During the year, following major assignments were completed:

• PMC services for

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

• Data Centre in Hyderabad for SBI.

• Housing Project of Gujarat Housing Board.

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

EIL continued to achieve substantial progress in the following assignments:

• 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 at Bathinda.

• Establishing Cold Storage Facility at Guntur, Andhra Pradesh.

• Construction of Domestic Terminal of Leh Airport, Jammu and Kashmir.

• Construction of NCR Biotech Science Cluster Phase-2 works at Faridabad, Haryana.

• TPI Services of DoIT&C, Rajasthan.

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

• Independent Engineer for Development and Construction of Green Field International Airport at Mopa, Goa.

• PMC for Development of Tourist Infrastructure facilities in and around Khajuraho Group of Temples, Madhya Pradesh.

• Engineering, Procurement, Construction Management and Consultancy Services for Development of Infrastructure Facilities at Khajekhalan Ghat, Patna Sahib, Patna, Bihar.

The Company secured the following Infrastructure assignments during the year:

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

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

• PMC services for Residential Complex of UIDAI in Delhi.

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

• Engineering review and procurement & construction management services 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 tap significant business opportunities presented by fertilizer sector in India and Overseas. As part of strategic investment in Fertilizer sector, EIL has taken 26% equity stakes in a JV Company M/s Ramagundam Fertilizers & Chemicals Ltd. (RFCL) along with NFL and FClL. RFCL has been formed to pilot the Revival of Ramagundam Fertilizer Project, Telangana. EIL is executing this project on EPCM Mode.

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

8.9 Water and Waste Management

EILs capabilities in Water and Waste Management sector encompass a wide array of Water Treatment projects such as Raw Water intake and treatment systems, Desalination plants, Cooling Water plants, Water Injection plants, Demineralization Plants, Condensate Polishing plants etc. The Company has also evolved basic engineering for standard modules for municipal sewage treatment plants as well as standalone recycle plants.

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

• Submission of Due Diligence Report for DPR prepared for Narmada Clean Tech.

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

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

• Technical and Financial Audit of Infrastructure works in various Urban 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 Jal Board (DJB) for abatement of pollution in River Yamuna.

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

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

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

The following assignments were secured by the Company in Water and

Waste Management sector during the year and are in progress:

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

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

• DFR for development of treatment facilities and future pipelines for 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 Greenfield Nuclear Fuel Complex at Rawatbhata, Kota, Rajasthan is in progress.

8.11 Alternate Fuel

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

8.12 Overseas Assignments

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

During the year, the following overseas assignments were completed:

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

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

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

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

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

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

• Project Management Assistance (PMA) services for improvement of Fire 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 emergency shutdown valves in Ruwais Refinery (West), UAE.

• Design, drawing and documentation of electrical engineering works for G-station HPH GT#12, GT#21, GT#22 & GT#31 system installation at Jebel Ali, DEWA, 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 equipment packages, Phase-III of ADNOC Distribution, UAE.

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

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

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

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

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

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

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

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

EIL achieved substantial progress in the following overseas assignments:

• EPCM services for the prestigious Dangote Refinery and Petrochemical Project, Nigeria comprising a 650,000 BPSD grassroot Petroleum Refinery and 830 KTPA Petrochemical Complex at Lekki Free Trade Zone, Nigeria for Dangote Oil Refining Company (DORC).

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

• PMC services for Rehabilitation and Adaptation of Algiers Refinery of SONATRACH having new units of MS Block, RFCCU, SRU, and revamp of exiting units.

• PMC services for Rehabilitation of Ethylene Unit at Skikda Petrochemical Complex of SONATRACH, Algeria.

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

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

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

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

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

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

• Detailed Engineering services for DM & Distillate Water inter transfer system for L&M stations for Jebel Ali power station complex of M/s DEWA, UAE.

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

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

• Integrity Assessment of circulation Water Tank T- 5601 of ADNOC Fertilizers, 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) for ADNOC Offshore, UAE.

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

8.13 Turnkey Projects

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

The following OBE/ LSTK project assignments were commissioned during the year:

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

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

• Offsites & Utilities facilities for Vizag Refinery Modernization 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 project on OBE basis, which is now in progress:

• Execution of Residual Utilities and Offsites for Rajasthan Refinery Project of HRRL.

9. Performance of Divisions / Departments

9.1 Process Design & Development

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

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

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

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

• PMC for FEED preparation at ERL Refinery Expansion Project, Bangladesh for Eastern Refinery Limited (ERL).

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

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

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

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

• Completion of DFR for Guru Gobind Singh Polymer Addition Project at HMEL, Bhatinda for capacity expansion of Dual Feed Cracker unit and downstream Polymer units.

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

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

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

• Technical Feasibility Study of proposed modifications at Gas Processing Unit, GAIL Vaghodia.

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

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

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

• DFR for CPCLs 9 MMTPA Cauvery Basin Refinery Project.

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

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

• Pre-commissioning of DCU and CGOT of Aishwarya Project of IOCL, Haldia Refinery.

9.2 Engineering

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

9.2.1 Equipment

Equipment Division provides optimal design and techno-commercial solutions for Design, Engineering and Procurement of various types of Rotating Equipment, Static Equipment, Packaged Equipment and Fired Equipment. Equipment Division, through its vast database/ standards/ specifications/ vendor lists/ knowledge pool, ensures procurement of energy efficient equipment with advanced technologies in compliance with latest International codes. Equipment division has also taken strides towards implementation of "Make In India" policy of Govt. of India, in order to boost local manufacturing of critical & bigger size equipment. Details/ Highlights of major activities & achievements of the Equipment division during the year are:

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

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

• Engineering for procurement of Reactor mounted Ebullating Pumps, 13 MW Reciprocating Compressors (one of the biggest in India) and 2 MW Hydraulic Power Recovery 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 and Integration of New flare system with existing HC flare system for forming common staged flare system, Condensate Recovery Packages, Pitch Solidification Package, Process Chillers, catalyst handling system, VPSA Oxygen Plant, Sulphur forming plant, Compressed Air and Cryogenic Nitrogen Plant, PSA Hydrogen Plant, catalyst loading system, Cranes etc for VRMP of HPCL.

• Design, engineering and engineering for procurement of Columns for 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 Shaft Design Centrifugal Air Compressor-Steam Turbine, pumps, compressors, for various units of PDPP Project of BPCL, Kochi.

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

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

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

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

• Furnace packages designed for Dangote Refinery are the biggest ever designed and engineered furnaces and are getting erected seamlessly in the project site at Nigeria.

• Design, Engineering and procurement of skid mounted prototype desalter package for development of Desalter technology.

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

• Engineering for procurement of Digester, Raw Bamboo Handling, Rotary drum vacuum filter and twin roll press filter, Ethanol distillation and Dehydration unit, Fermentation package for Assam Bio Refinery Private Limited. This bio-fuel project is first of its kind being executed by EIL.

• Submerged Incinerator System is being executed by EIL for Petrochemical complex of BPCL Kochi. It is a very rare kind of incinerator system which can incinerate multi streams of Waste Gases & Liquids simultaneously. This is first such installation in India and only few installations exist worldwide with limited suppliers.

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

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

• Engineering for procurement & subsequent execution of various drinking water pumps, intake well pumps, DG sets in seven cities of Odisha under AMRUT project.

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

• Design & Engineering for procurement of VRF type Air-conditioning System for Administrative Building (G+2, Green Building, target to achieve 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 basic engineering e.g. Preparation of SLD, Hazardous Area classification, Electrical load Analysis, Equipment sizing/cable sizing/MTPs, Engineering for Procurement including MRs/PSs/Vendor drawing review & tendering and Engineering for Construction including layouts.

• Specialized functions include Power System of Studies e.g. Load Flow/ Short Circuit / Motor start up/ Harmonic Analysis / Transient Analysis/ Protection coordination/ Power factor improvement capacitor sizing, Micro Processors, Based Electrical Control System, Metering, Protection, Relay Coordination, Cathodic Protection system 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 for different voltage levels starting from 3.3 KV to 400 KV, IP based Plant Communication system, two wire control for MOVs, Nitrogen Injection Fire Protection/ Fighting system for transformers, Intelligent MCC, promoting & maximization of digitization in Electrical arena, 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 Gas Insulated Indoor Switchboard Panels for two mega Projects viz., Dangote Refinery and BPCL Kochi BS-VI Project.

• Implementation of new specifications for XLPE insulated Fire Retardant Low Smoke Extra High Voltage Cable suitable for working voltages from 66 KV to 220 KV. This has been implemented in mega projects like Dangote Refinery, HMEL Petrochemicals and VRMP, wherein 66 kV voltage cables have been extensively used.

• Use of energy efficient Electrical equipment/ systems has been initiated in a big way in all projects irrespective of industry type. As a responsible corporate having concern for global warming and with objective for reduction of carbon foot print, use of energy efficient motors of minimum IE2 type and 100% LED fixtures for lighting of process/offsite and utilities areas is being implemented in all projects. This has been made a standard practice for all projects being handled. For one of the projects, energy efficient motors of category IE3 have been deployed. Besides this, all distribution transformers 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 order No.S.O.4062(E), S.O.513(E) are being procured and used in all current projects under execution. The standard specification for Distribution Transformers has been revisited and revised accordingly.

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

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

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

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

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

9.2.3 Instrumentation

Instrumentation Division has always been in the forefront with respect to adoption of latest digital technology. Various state-of-the-art measures like Fieldbus-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 rotating equipments and monitoring of all the non- critical pumps centrally through wireless instrument & gateways in the DCS System are being implemented in all on-going major projects 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 for pump seal monitoring, rotating equipment monitoring, PSV and Flare valves leak monitoring through acoustic sensors. In the on- going HMEL Petrochemical project, Cloud based detailed engineering until FAT, simulation of plant graphics and logics through IIoT, Plant Development Model through OTS (Operator Training Simulator),

Virtualisation Server & PC and usage of Universal I/O is also implemented. The Division is contributing towards digitalization and end to end work flow integration of EIL including integration of data from Smart Plant P&IDs (SP- P&ID), Smart Plant Instrumentation Module (SPI) and Smart Plant 3D Model (SP3D), enabling smooth work flow from each of these modules. Conversion of in-house sizing software of instruments into web- based software to upgrade to latest technology & integration is underway as a continuous quality improvement system along with updating of standards and specification. For the BOM program, incorporation of all job standards and integration of work flow of Instrumentation with IPMCS of Piping and SORPS software has been carried out.

Instrumentation Division is also participating actively in Make In India initiatives of EIL by enlisting Indian suppliers who maximize domestic content and optimizing Original Equipment Manufacturers scope in high tech areas like Analysers, Metering Skids, Communication systems, Radars and electronic transmitters.

9.3 Project Services

9.3.1 Cost Engineering

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

9.3.2 Planning

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

9.4 Supply Chain Management

EIL offers integrated Supply Chain Management Services through its highly effective team of Supply Chain professionals. The functions of SCM are very critical with respect to timeliness of deliverables, customer satisfaction and ensuring high standards of quality. Different roles are assigned to different Departments within SCM 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 function which 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 of Procurement Services to Clients to ensure timely availability of desired materials/ services at site as well as fulfils its own in-house procurement requirements. Handling multiple global clients and their different methodologies for sourcing, positions EIL uniquely to have a comparative analysis and evolve best practices across the new projects being executed. This provides flexibility and agility to cater to the dynamic needs of various clients/projects. SCM has been able to successfully provide support to many global clients (Public & Private) through its expertise in domestic and global contracting/ procurement, its competent manpower, well defined procedures, rules, policies & a strong supplier/ contractor database. Entire Procurement process is carried out in consonance with Public Procurement Principles, viz., Transparency, Equity and Fairness, ensuring desired quality within the designated time frame at the most competitive prices and against comprehensive competition.

In order to enhance efficiency, effectiveness and transparency of the procurement processes, SCM has leveraged latest IT tools/ technologies to develop packages like Electronic Procurement System (EPS) reducing procurement cycle and errors. It automates various stages of Contracting/ purchasing, viz., Need Identification, RFQ preparation, Inviting Bids, Processing bids and award of orders/ contracts.

Ordering highlights for Financial Year 2018-19:

1,247 Crore of direct purchase and contracts on suppliers/ contractors for various LSTK/ OBE/ Depository projects.

156 Crore of direct purchase and contracts for In-house requirements of EIL.

17,213 Crore were placed for other projects of various clients, where 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 towards implementation of various procurement policies of the Govt. of India including Public Procurement Policy (PPP)-2012 for Micro and Small Enterprises, ensuring increased participation of MSEs in Companys procurement and overall development of the MSE sector by giving special preference to MSE owned by SC/ST and woman entrepreneurs.

Ensuring more participation by MSE players, during FY 2018-19, EIL has been 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 by EIL.

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

9.4.2 Procurement Development Department

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

During the year, EIL organized two Supplier/ Contractor meets and participated in five programs organized through various platforms under Ministry of MSME. EIL, with its robust supplier and contractor enlistment management system, has been able to develop transparent, accountable system and processes, for development of manufacturing capacity. During the year, 43 new Suppliers and 26 new Contractors were added in EIL Master Supplier/ Contractor List, wherein 2 new Suppliers were added under "Make In India". Additionally, for 106 nos. Suppliers and 27 nos. Contractors, Range/Product Profile was upgraded.

9.4.3 Inspection & Shipping

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

FCHCU Reactor of 1700 MT in single piece having Wall Thickness of 250 mm ,fabricated at L&T, Hazira.

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

Reactors for RFCL in specialized metallurgy for Fertilizer Sector and Air Fin Coolers of Incoloy 625 for IOCL Panipat that have been fabricated for the first time in India.

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

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

9.5 Construction

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

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

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

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

The Construction Division implemented a host of innovative construction techniques and improvised equipment/machineries to minimize construction schedule across project 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 an alternative to hazardous conventional NDT method like radiography.

• Use of Digital Radiography.

• Use of Piping Management Software.

The Companys commitment towards adherence of world-class

Health, Safety and Environment standards in the execution of projects was epitomized by the multitude of accolades received from clients, during the year:

• 28.5 Million LTA free man hours at Aishwarya project of IOCL, Haldia.

• 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 GGSRL, Bathinda.

• 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 and environment requirements during delivery of products/services to customers. Minimizing environmental impact by conserving resources, reducing waste generation and preventing pollution in all our activities have always been an integral part of our policy. The Company has also been providing solutions for water resources management while protecting or restoring our major water ecosystems. EIL helps enable the adoption of innovative & integrated water and wastewater management for industries & municipalities, while working to increase environmental, social and economic benefits. EIL has executed several hundred projects in diversified fields of environmental engineering, including water & wastewater treatment; effluent recycle & reuse; Environmental Impact Assessment studies; environmental feasibility studies; air quality assessment, modeling & control; environmental management plans; etc.

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

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

• Consultancy services to CPCL CBR Project for preparation of basic engineering design packages for their sea water desalination plant and integrated effluent treatment & recycle facilities.

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

• Environmental Clearance from Ministry of Environment, Forest and Climate Change was successfully obtained by EIL for BPCL‘s 2G lingo-cellulosic based Ethanol Plants at Bargarh (Odisha), HMELs Fuel Quality Upgradation Project at Bhatinda Refinery, Coal Conversion of Iron ore to Coal terminal of Kamarajar Port Limited, Additional tankages projects at Sidhpur, Bareja, Kandla and Hazira of IOCL, Expansion of Kochi refinery complex by manufacturing petrochemical product of BPCL, IOCLs MEG/ERU Plant in Paradip Refinery cum Petrochemical complex and expansion of BPCLs Kochi Refinery Complex.

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

9.7 Research & Development

R&D activities are the cornerstone of a knowledge-driven organization like EIL . It is a matter of great pride that EIL has rendered stellar services to the country in not only imbibing technology, but also developing its own technology independently, as well as in association with other companies. The Company is pursuing developmental activities, both in-house and in collaboration with academic institutes like IIT Delhi, IIT Kanpur, IIT Roorkee, IIT Madras and other R&D organizations like IOCL (R&D), CSIR-IIP, BPCL(R&D), HPCL(R&D) etc. Apart from these established R&D organizations, EIL (R&D) has also been collaborating and cooperating with small companies to promote the creative ideas generated by them.

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

Technology development projects initiated:

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

• Computational Fluid Dynamics (CFD) studies of new Air Injection System 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 hydrocracking reactions.

• 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 for trouble free operation of SRUs.

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

• Development of process for utilization of CO2for neutralization of alkaline stream in Effluent Treatment Plant.

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

• Technology Development and Demonstration for production of Methanol 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 Size Distribution changes due to attrition during pneumatic transport of coal – A tool for scale 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 by electrocoagulation.

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

Technology commercialization efforts:

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

• Commissioning of both Tail Gas Treating Units (TGTUs) of BPCL Mumbai 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 enhancement of two SRUs upto 25% ( 2x 421 TPD) at BPCL- Kochi.

• Basic Engineering Design Package (BEDP) preparation for Straight Run 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 at GGS , ONGC Mehasana.

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

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

• Energy Efficiency Improvement Studies for 15 PSU Refineries.

• Energy Efficiency Improvement Study for Ruwais Refinery of ADNOC, Abu Dhabi.

• Supply of PARLPAK (as part of EIL-Kevin MOU) in Amine Absorption Column, 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 and strengthening tech tie-ups:

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

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

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

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

• MOU signed with BHEL for joint development of Coal to Methanol production 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 of Methanol to Dimethyl Ether through dehydration route.

Patents / Trademarks filed / granted:

To safeguard EILs knowhow and technologies, the following 7 patents have been filed during the year:

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

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

• A process and system for capacity enhancement of SRU by utilizing waste nitrogen, oxygen and steam.

• A process for dimethyl ether production from methanol.

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

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

• A system and a process for purification of syngas from high ash Indian 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 from LPG with caustic.

• High-pressure fluidized bed gasifier and gasification process therof

• 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 pertaining to in-house technologies to enhance the brand image of the company, have been granted during the year.

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

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

9.8 Information Technology Services

Information Technology Services (ITS) Division continued to make advances, providing high-tech IT enabled services to EILs mainstream activities by developing/ implementing IT solutions to deliver better quality services with emphasis on increased efficiency and improved productivity.

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

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

• EIL has achieved ISO/IEC 27001:2013 Accredited Certification for the Management and Operations of its Primary Data Center (PDC), located at its Head Office, New Delhi from M/s DAS Certifications, accredited to United Kingdom Accreditation Service (UKAS).

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

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

• In keeping with the Government of Indias cyber security mandate, the existing end-point cyber security solution has been upgraded to provide latest security features and updates. Further, the coverage of the solution has been expanded to all offices in the country which are on IPVPN network.

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

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

• New website launched for Supplier Enlistment, Enhancement and revalidation.

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

9.9 Sustainable Development

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

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

Separate Report on Sustainable Development is annexed to this Report.

9.10 Corporate Strategy & Business Development

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

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

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

The CS&BD Division has initiated sustained business development activities in sectors like Bio Fuels, Water and Waste Water Treatment, Urban Infrastructure like SMART Cities, LNG Terminals, Ports and Harbours, Defence, etc as a part of possible diversification initiatives thus aligning with Government of India initiatives.

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

10. HSE Management System

EIL sustained its OHSAS 18001 (Occupational Health and Safety Assessment Series) and ISO 14001 (Environmental Management system) certifications during this year. Apart from ensuring effectiveness of the HSE Management System, these certifications provide an edge in securing business, especially overseas.

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

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

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

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

On the construction front, the specification for HSE Management at construction sites, which specifies the HSE requirements to be complied by construction contractors, has been revised during this year in line with the current trends and to improve the HSE performance. Award to construction sites based on HSE performance, Issuance of appreciation certificates to best performing construction contractors, are a couple of other examples of improvements, implemented during this year based on both quantitative and qualitative scoring mechanism. During the year, EIL also celebrated National Safety Week across its offices and sites and the celebrations were used as a platform for improving safety awareness amongst the employees.

11. Quality Management System

Quality is inbuilt into our processes, workplace, deliverables and services. The Quality Management System (QMS) in respect of the Companys services has been reassessed this year as per the requirements of ISO 9001:2015. Post audit, the QMS of the Company continues to conform to ISO 9001:2015 and the certificate of approval is valid up to 13.10.2021.

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

During the year, the Quality Management System of Companys UAE (Abu Dhabi) office was also independently audited and reassessed for certification and post-audit the Quality Management System of the Company continues to conform to the International Standard ISO 9001:2015. The certificate of approval is valid up to 30.03.2022.

In addition, the Company participated as a prominent and active member in various committees of Bureau of Indian Standards for formulating products and quality system standards.

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

12. Risk Management

The objective of the corporate Risk Management function is to ensure sustainability of the organization by professionally managing the Enterprise Risks. Enterprise Risk Management (ERM) involves identification, assessment, analysis, mitigation and monitoring of the Risks. The ERM system of your Company performs the above mentioned Risk Management activities across the business functions of the organization. EILs Risk Management framework is based on ISO 31000 (Risk Management Principles and Guidelines) and meets regulatory requirements namely SEBI LODR, Companies Act 2013 and Department of Public Enterprises (DPE) Guidelines. Risk Management process has also been integrated with the Quality Management System requirements as per ISO 9001. The Risk Management framework of your Company is overseen by the Risk Management Committee of the Board.

Key risks across various business processes namely Procurement, Construction, Project Management, Marketing, Human Resources, Legal, Accounts & Recovery have been identified. During this year, EIL reviewed the Key Risks with respect to the current business environment. The changes in the Key Risks have been approved by the Risk Management Committee of the Board. Mitigation plans have been developed for the new risks and are being deployed across the organization. Also, the Mitigation plans of all other Risks have been reviewed and revised with respect to the current scenario. An independent group (Corporate Risk Assurance) audits the implementation of these mitigation plans regularly and the results are presented to the Risk Management Committee of the Board. Your company uses its in-house 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. The newsletter covers case studies, survey reports and best practices on Risk Management apart from apprising the employees on the Risk Management updates within the company. 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.

13. Vigilance

During the year, various CTE type examination of EILs jobs, random inspection of in-house contracts/ purchases, scrutiny of Immovable Property Returns, investigation of complaints from different sources etc. were carried out by the Vigilance Department with the focused objective of ensuring conformity to the Company procedures, CVC and Government guidelines. For systemizing the work, various rules, regulations and procedures were reviewed during the year. The observations reported by CTE/CVC were examined and necessary actions were taken. System improvements were suggested to the Management and necessary measures were undertaken for modification/ improvement by way of issuance of around 17 system improvements.

As part of Vigilance Awareness Week-2018 (VAW-2018), a series of programs were held in line with this years theme "Eradicate Corruption-Build a New India." During the VAW-2018, two seminars were organized on the topic "Changing Business Practices under Competition Law" and "Whistle Blower Mechanism, Protection & Tool of Good Governance" with an intention to create awareness about Public Procurement, its imperatives and precautions to be taken. As part of VAW-2018 celebration and to spread Vigilance awareness amongst students and teachers, EIL organized drawing competitions in two schools in Delhi, in association with "The Hindu Group of Publications". Besides all the above, awareness programs /competitions were also organized involving local community, at Colleges/ Schools in the local areas around various project sites.

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

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

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

Integrity Pledge

Online System has been developed for taking ‘Integrity Pledge by EIL officials/ family members and the visitors coming to EIL-HO and EIL-Gurugram Offices. All the visitors are required to take Integrity pledge along with issuance of entry passes at reception. The system is being implemented at other regional offices also.

Leveraging Technology

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

Complaint Handling Policy (CHP)

As per CVC Guidelines, EIL has formulated Complaint Handling Policy (CHS) to resolve complaints/grievances from public, contractors, vendors, suppliers etc. A web portal for online complaint handling is available on the Companys website and Complaint Boxes are also placed in various EIL offices which are regularly monitored by Vigilance with respect to the status of complaints.

Job Rotation

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

Integrity Pact

EIL is committed to higher ethical standards in contracts and procurement as well as transparency in all of its business dealings. In EIL, Integrity Pact Program was adopted in November, 2011 for all Contracts & Purchases on EILs account for enquiries having threshold value 1 Crore.

Online Vigilance Clearance (OVC) & Scrutiny of IPRs

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

14. Finance

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

15. Internal Audit

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

16. Corporate Management Information System

To help improve Resource Engagements, Automation of Employee

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

17. Human Resource & Industrial Relations

Human Resources of any organization play a crucial role in overall organizational performance and quality of services that the employees deliver has a direct bearing on the success of the organization. HR Directorate strives to develop a motivated workforce which is committed and aligned with the organizations strategic goals and objectives. To ensure an enabling work culture and an engaged work force, employee-centric policies and development initiatives have been adopted from time to time. The policies are regularly re-visited and updated to keep them relevant.

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

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

Talent Acquisition

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

Performance Management System

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

Employee Welfare

During the year, efforts were made for aligning welfare measures towards enhancement of work life balance for employees. Various employee welfare initiatives were taken including talk cum interactive sessions on emerging health issues and building awareness on lifestyle enrichment matters, extension of medical benefits through empanelment of hospital & diagnostic centres etc. besides sports and other family get-togethers for enhancing the quality of life.

Sports

Providing a supportive role in health and fitness, EIL promotes a culture of sports by organizing weekend sessions and interdepartmental tournaments of various sports for participation in PSPB Tournaments. EIL organises indoor sports like Table Tennis, Carrom and Chess during lunch time & after office hours besides weekend sessions of Badminton and Tennis. Employees are also encouraged to participate in marathons, cyclothon, various trekking expeditions and sports tournaments at regional and national levels. EIL employees participated in 12 PSPB tournaments during the year. EIL also successfully hosted PSPB Badminton Tournament at Pullela Gopichand Badminton Academy, Greater Noida from 29 January to 2 February, 2019.

Annual Awards

Recognizing the contribution of team(s) and individuals, employees were felicitated 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/domain knowledge.

For 2017-18, a total of 35 employees were awarded in different categories.

Training & Development

EIL, being a technology driven organization, strongly believes that training 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 EIL to enhance the capabilities of its human capital by increasing domain knowledge and behavioural competency to maximize contribution towards achievement of organizational objectives.

Training in EIL focuses on domain, behavioural and leadership training through a well-designed Annual Training Calendar wherein inputs for training requirement are taken from Heads of Departments/Divisions. Faculties were identified for specialist domain training, Aarohan (Leadership Development Program) and some of the behavioural and general training through internal resources during the year. Management Development Program and specialized soft-skill training programs were conducted through empanelled agencies. 73 numbers of in-house domain training programs attended by 1180 participants were conducted during the year. Some of the important training programs organised included Changes in ISO 14001 and ISO 9001 from previous versions - its impact , Drafting of Contracts, General Vigilance Awareness, Contract Management Nuances, Urban Planning: City Management, Design of Piping/ Equipment Layouts, Industrial Laws: PF, Gratuity, ESI, Payment of Minimum Wages, Maternity Benefits Contracts, Labour: Managing Issues, Concerns & Problems, Procedure for locating fire & gas detectors, 3 D Model Progress Measurement & 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 during the year to strengthen behavioural competencies, Planning for Superannuation, Mind Mapping through Mediation, Yoga for physical and mental fitness and Women Development skills.

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

332 participants were nominated to 76 external training programs organized by reputed organizations and institutions in India and abroad. The Company also sponsored 93 participants to PETROTECH - 2019 organised during February 10-12, 2019 at Greater Noida.

Training of Management Trainees (MTs)

112 Number of MTs - Batch 2018 joined during the year. Three months class-room training covering topics on overview of company, functional areas under different directorates, campus to corporate, domain functions in respective discipline was organized at Training Centre.

Skill Development Initiatives

As part of Government of Indias "SKILL INDIA MISSION" on providing thrust to "Skill Development", 182 nos. Apprentices are undergoing apprenticeship training in various disciplines at Head Office, Branch/Regional Offices and Construction Sites. Inputs on the following topics were provided to Apprentices through two Familiarization Programs:

• Company and its areas of operation

• Conduct & Discipline Rules of Company applicable to Apprentices

• Health, Safety & Environment.

Leave Rules & Procedure for sanction of leaves.

• All India Trade Test (AITT).

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

• Filling of Clearance and issuance of Training Completion Certificates.

Organization has achieved engagement of 10% apprentices against the total 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 industry wide platform L.E.A.P. (Learn. Engage. Act. Progress) was formed as a concerted effort of industry members to partner in the developmental initiatives of common interest. Under such initiative by the L&D Centres of Oil PSUs, a seminar by Shri Ram Charan, a leading management consultant and eminent international speaker and a member of Thinkers 50, on "Leadership needs in the era of talent and technology" was conducted on August 13, 2018 in New Delhi. 25 Senior Executives of the Company participated in the seminar and highly appreciated the initiative.

Mentorship Development

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

Leveraging IT in HR

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

Implementation of Government Directives on Scheduled Castes/Scheduled Tribes

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

The Company has appointed a Liaison Officer to work as a facilitator in ensuring that due attention is paid to the issues of SC/ST employees. Management also encourages communication with the office bearers of the SC/ST Employees Welfare Association 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 to Scheduled Castes and Scheduled Tribes was 18.9 % and 4.7% respectively of the total employee 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 Disabilities Act, 1995 by way of providing reservation for Persons with Disabilities. As on March 31, 2019, there are 43 PwD employees on the rolls of the Company. Online module for PWD in accordance with latest Government of India guidelines has been developed and implemented.

Women Development

Women constitute approximately 11.9% of EILs human resource, of which 87.57% are in the officer cadre. EIL has in place, a Womens Forum comprising of senior officials as Patron, Chairperson and Co-Chairperson to cater to the development needs of women employees.

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

18. Corporate Social Responsibility

EILs CSR initiatives underscore the Companys commitment to operate as a socially responsible corporate citizen in an economically, socially and environmentally sustainable manner to enhance overall contribution to society. As per Companies Act 2013, a budgetary allocation of 2% of the average net profit made during three immediately preceding financial years has been done in the financial year 2018-19 for CSR activities.

Art & Culture: EIL is providing support for setting up of KD Malviya National Oil Museum at Guwahati. The Museum aims to create awareness with regard to the development of the Oil Industry in India and also the Infrastructure and Technology available in the country in Petroleum sector. It will serve as an archive for vintage equipment relating to the Petroleum industry in India.

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

Health Care: EIL conducted ten camps for distribution of Assistive Aids and Appliances to poor & needy Persons with Disabilities at Udaipur, Kota, Delhi, Haldia, Kochi, Udupi, Ratnagiri, Dharamshala, Bargarh and Cuttack. EIL is also providing support for conducting 4-5 screening camps for eye ailments and 200 cataract operations for people from marginalised sections of society.

Drinking Water/ Sanitation: EIL has supported the construction of 100 nos. of community toilets in remote villages of Aligarh district and 32 nos. of school toilets and potable drinking water facilities in schools of Pataudi block of Gurugram district, Haryana. The Company has supported the maintenance of 161 nos. of toilets constructed as part of Swachh Bharat Abhiyaan in Assam (150) and Tamil Nadu (11) and made a contribution to Swachh Bharat Kosh to supplement Governments effort towards Swachhta Mission.

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

Rural Electrification: EIL supported installation of 100 Solar Photovoltaic based LED Street Lighting Systems in various villages of Poornia District, Uttar Pradesh.

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

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

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

To enhance skill set of Persons with Disabilities (PwDs), EIL conducted Skill Development Training for 1200 PwDs in various trades at Faridabad, Rajkot, Ujjain, Gwalior, Gondia, Ahmednagar, Nashik, Nagpur, Thane, Jalgoan, Solapur, Pune, Kalyan, Hanumangarh, Ismailabad, Shahabad, Sirsa and Fatehabad.

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

19. Make In India

"Make In India" is a flagship initiative launched by the Honble Prime Minister with an objective to revive and revitalize the manufacturing sector in the country. As part of the "Make In India" campaign, EIL has been pursuing several initiatives:

• Contribution to Governments Policy formulations to encourage indigenization.

• Vendor interaction to upgrade indigenous manufacturing technologies.

• Indigenization of equipment manufacturing to increase domestic content.

• Vendor enlistment/ enhancement through continuous interaction, assessment and evaluation.

• Relaxation of PTR criteria for 51% owned subsidiaries.

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

20. Official Language

Implementation of official language policy

i. Quarterly meetings were held regularly wherein the progress in use of Hindi was reviewed. The meetings of different OLICs of Regional/ Field/Procurement Offices were also organized as per schedule and the targets of four meetings as per schedule have been achieved in the financial year in all offices. ii. Senior Officers of the Company participated in the meetings of the Town Official Language Implementation Committee (TOLIC). iii. Employees are nominated for the competitions organized by other undertakings under the aegis of TOLIC and some of them were suitably awarded. iv. Hindi workshop 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 Language Rules have been complied with. vi. The initiatives taken in the field of IT includes activating Unicode facilities in all computers, Providing Indic IME, booklet for Standard Noting, PDF of Email Signature in Hindi and Google voice typing and other software on the computers and training of above software were given during Hindi Workshops. Necessary Hindi software, Glossary and other material are installed in the Company Portal for ready use of employees. The facility of Google translation, Mahashabdkosh of Home Ministry is provided on computers. vii. For better implementation of Official Language, inspections have been conducted in the offices and departments.

Hindi Teaching & Training

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

Hindi Workshops

Twenty three Hindi workshops in different Offices, three Official Language conferences i.e. one in region ‘B and two in region C were organized during the year. Two Hindi workshops were organized for GM and above level Officers. One special Hindi conference was also organized for the members of EIL Official Language Implementation 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 the Company. Various competitions were organized to encourage the progressive use of Hindi wherein winners were awarded. On this occasion, HODs/Heads of Office and their Hindi Coordinators 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 awards and 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 and Best Energy Efficient Case Study - combined Heat & Power Optimisation of a Refinery in May, 2018.

• Petroleum Rajbhasha Shield (Consolation award) by the Ministry of Petroleum and Natural Gas for excellent Hindi work done during 2017-18, presented on September 28, 2018.

• IEI Industry Excellence Award 2018 instituted by The Institution of 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 Oil and Gas Business and Sustainability category jointly with IOCL, conferred on February 11, 2019.

• Petrotech Special Technical Award 2019 in the Women Executive in Hydrocarbon Sector category to Ms. R. Priyamvada, ex-GGM (Technical) conferred on February 11, 2019.

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

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

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

22. Joint Venture

Ramagundam Fertilizers & Chemicals Ltd. (RFCL) has been incorporated as a joint venture company of Engineers India Limited (EIL), National Fertilizer Limited (NFL) and Fertilizer Corporation of India (FCIL), for setting up Gas based Urea Manufacturing Plant at Ramagundam, Peddapalli district in the State of Telangana, with capacity of 2200 MTPD Amonia Unit and 3850 MTPD Urea Unit. The Plant is expected to be commissioned by December 31, 2019.

23. Subsidiary Company

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

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

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

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

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

• Konkan Railway Corporation Limited: Quality Assurance Services for USBRL Project.

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

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

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

• ERDMP Certification of Torrent Power Limited .

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

The Board of Directors of the company have recommended for the financial year 2018-19, a final dividend of र 350 Lakhs (9,00,000 equity shares of 100/- per share) in addition to र 300 Lakhs (1,00,000 equity shares of 100/- per share) interim dividend already paid during the year. Payment of final dividend is, however, subject to approval of shareholders in the ensuing Annual General Meeting of the company.

The dividend, if approved and declared in the forthcoming Annual General Meeting, would result into total dividend outflow of 650.00 Lakhs and dividend distribution 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 the requirements of SEBI Regulations and DPE Guidelines in this regard. The Board of Directors support the broad principles of Corporate Governance. In addition to the basic issues, EIL Board lays strong emphasis on transparency, accountability and integrity. As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, the Report on Corporate Governance, together with the Auditors Certificate on compliance of conditions of Corporate Governance, along with the Managements 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 details are provided in the Corporate Governance Report that forms part of this Annual Report. The intervening gap between any two meetings was within the period prescribed under Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance.

26. Composition of Audit Committee

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

27. Declaration of Independent Directors

The Company has received necessary declaration from each independent Director under Section 149(7) of the Companies Act, 2013, that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013, Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance and that he/she is not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact his ability to discharge his duties with an objective independent judgment and without any external influence.

The Board of Directors in their 344 meeting held on May 17, 2019 has also take on record the declaration and confirmation submitted by the independent director after 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 Board Members which inter-alia include the various familiarization programmes in respect of their roles, rights, responsibilities in the company, nature of the industry in the company operates, business model of the company etc. Further, the same is also taken care during the various strategy meets of the Company and different presentations in the Board/ Committee meetings on the statutory Laws. The details of such familiarization programmes / Training Policy have also been posted on the website of the Company at the https://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 capacity of Director (Finance) w.e.f 18 October, 2018 (Date of assumption of charge) in terms of Ministry 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 as Additional Director in the capacity of Director (Projects) w.e.f 11 March, 2019 in terms of Ministry of Petroleum & Natural Gas, Government of India, letter no. CA-31018/3/2018-PNG(23210) dated 11.03.2019. Shri Bollavaram Nagabhushana Reddy was appointed as Additional Director, Director (Government Nominee), w.e.f. 27.05.2019 vide MoP&NG letter No. C-31033/1/2016-CA/FTS:42979 dated 27.05.2019. Shri M. Arulmurugan was appointed as Additional Director, Non-official Independent w.e.f. 17.07.2019 (date of allotment of DIN) vide MoP&NG letter No. No.C-31033/2/2018-CA/PNG(25758) dated 12.07.2019.

Re-appointments

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

Retirements

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

Additional Charge

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

Key Managerial Personnel

Company Secretary:

The Board of Directors in their meeting held on 15.01.2019, appointed Shri Suvendu Kumar Padhi as Company Secretary of the Company (w.e.f. 15.01.2019) in place of Shri Narendra Kumar, Manager (CS) who was appointed as Company Secretary of the Company as 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 Bhatia, Director(Finance), as CFO of the Company w.e.f. 13.11.2018.

30. Secretarial Auditors

M/s Agarwal S. & Associates, Practicing Company Secretaries, was appointed to conduct the Secretarial Audit of the Company for the financial year 2018-19, as required under Section 204 of the Companies Act, 2013 and Rules there under. The Secretarial Audit Report for the financial year 2018-19 along with the Managements Reply 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 no personnel have been denied access to the Audit Committee. The same has also been given on the 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 Company has formulated a Dividend Distribution Policy. The dividend pay-out is in accordance with the Companys Dividend Distribution Policy. The Dividend Distribution Policy of the Company is available on the Companys website, at https://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 the Corporate Governance Report which forms part of this Annual Report. The same has also been given on the website of the Company at https://engineersindia.com/investors/corporate-governance.

34. Listing on Stock Exchanges

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

35. Nomination and Remuneration Committee

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

36. Performance Evaluation of the Board

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

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

In line with the provisions of the Companies Act, 2013 and the Listing Regulation, the Company has formulated a Policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The same has been posted on the website of the Company at https://engineersindia.com/investors/corporate-governance. The Company gives the disclosure regarding material transactions with related parties on quarterly basis along with the compliance report on Corporate Governance. As per requirements of Section 134 (3) of Companies Act, 2013 read with rule 8 of Companies (Accounts) Rule, 2014, particulars of contracts or arrangements with related parties as referred in section 188 (1) of the Companies Act, 2013 is annexed to this report. During the year, there were no material RPTs. Further, suitable disclosure as required by the Indian Accounting Standard (Ind AS-24) "Related Party Disclosures" has been given in the Notes to the Financial Statements.

38. Details of Loans/Investments/Guarantees

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

39. Reporting of Frauds by Auditors

During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the audit committee, under Section 143(12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or 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, an extract of the annual return in the prescribed format is annexed to this report. The same has also been given on the website of the Company at https://engineersindia.com/investors/corporate-governance.

41. Cost Auditors

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

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 rules framed thereunder, particulars relating to Energy Conservation Technology Absorption are given under Research & Development and Sustainable Development Sections of the Directors Report.

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

(Figures in 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 regulators or courts or tribunals impacting the going concern status and Companys operations in future.

44. Other Disclosures

No disclosure or reporting is required in respect of the following item as either these were not applicable or there were no transactions on these items during the 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 dividend, voting or otherwise.

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

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

The Company has complied with the provisions and has in place Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Further, during the financial year 2018-19, there were no cases filed under the above act.

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

45. Code of Conduct

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

46. Right to Information

An elaborate mechanism has been implemented within the Organization to deal with requests received under Right To Information Act, 2005. A dedicated RTI Cell is available 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, every public authority is required to display mandated information to citizens to secure access to the information under the control of public authority, in order to promote transparency and accountability in its functioning. EIL, being a responsible public sector undertaking, has displayed the mandated information on its corporate website under ‘Right to Information section. Details of CPIO and First Appellate Authority have also been notified, in line with the requirements of the Act.

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

47. Directors Responsibility Statement

Your Directors state that:

a. in the preparation of the annual accounts for the year ended March 31, 2019, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, have been followed and there are no material departures from the same;

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

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

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

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

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

48. Auditors

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

49. Bankers

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

50. Particulars of Employees

As per the provisions of Section 197 of the Companies Act, 2013 and rules made thereunder, Government Companies are exempted from inclusion of the statement of particulars of employees. The information has, therefore, not been included as part of the Directors Report.

51. Acknowledgement

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

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

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

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

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