Dear Shareholders,
 
 It gives me immense pleasure to report your Company''s performance in a
 year that saw unprecedented growth in its 47 year history.
 
 During the financial year 2011-12, our turnover has touched an all time
 high of Rs3699 Crores, an increase of 31% and the Profit Before Tax
 (PBT) and Profit After Tax (PAT) also augmented to all time high of
 Rs915 Crores and Rs636 Crores, an increase of 17% and 22% respectively.
 
 On the operational front, completion of BORL''s refinery at Bina and
 HMEL''s Guru Gobind Singh Refinery at Bathinda, the 9th and 10th
 grassroot refineries engineered and designed by EIL, commissioning of
 New FCC unit of HPCL has further strengthened our position as the
 premier consultancy organization in this sector. Our most recent MoU
 score of 1.095 which is in ''Excellent'' category for 2010-11 has
 improved against the previous year''s score.
 
 While we look back and evaluate our operational and financial
 performance, it is vital that we also review current and future
 business environment and analyze its effect on our business performance
 both in short term and long term.
 
 It is beyond doubt that we have challenging times ahead of us, but I am
 confident that owing to our organization''s strong fundamentals,
 technical know-how, skill sets, our zeal to excel and above all our
 unflinching commitment to succeed, we will face these challenges head
 on and continue our growth story.
 
 In the era of globalization, our performance will not solely rely on
 domestic business but will be largely dependent on our overseas
 performance. Our efforts on widening our global reach have started
 yielding some results and we have secured overseas jobs which are
 around three times of what we got last year. We have entered into
 territories where we have little or no existing presence. Prominent
 milestones in our global market strategy include breakthrough jobs in
 Venezuela and Kenya, establishment of Jabal EILIOT, our Joint Venture
 with IOTL and Jabal Dhahran for tapping business opportunities in Saudi
 Arabia, initiating steps for opening a new branch office in Venezuela
 to explore business opportunities in South America among many other
 initiatives.
 
 The success of our global strategy hinges on rising to the high
 expectations of overseas clients, which can be met only with higher
 commitment levels across the board, particularly from the Company''s
 experienced work-force. The management is actively engaged in
 re-orienting the Company''s work force to match its global aspirations.
 Summarily, delivery with high quality and on schedule is the key to our
 Global Success and we shall continue to focus on global target markets
 to increase the proportion of international business in our portfolio
 which is a vital constituent for our future success.
 
 The jobs we are securing today, in our country, are with tight
 schedules which mean that to maintain our profitability our performance
 on the operational matrix has to continuously improve. Completion of
 HMEL''s Guru Gobind Singh Refinery in 44 months has set an industrial
 benchmark in this sector in the country.
 
 To grow, we need to excel in what we do and we challenge the status-quo
 in situations we face every-day, brainstorm and explore the alternative
 solutions which are more efficient and results in improved
 productivity. These incremental improvements in our systems and
 processes will be defining factors in successful execution of our
 current and future projects especially in EPC domain. It is our
 continuous endeavor to re- review our systems, processes and procedures
 and make them more lean and efficient as to ensure improved delivery
 both on cost and time matrix for current and upcoming future projects.
 
 We are swiftly converging into a zone where majority of our business
 will come from the EPC segment and the key to success is increased
 efficiency and cutting costs by standardization and repeating the
 designs to the extent possible. I am happy to say that usage of IT, as
 a vital tool for achieving higher efficiencies, has improved during
 last couple of years and greater efforts are underway to fully harness
 information technology to achieve operational excellence.
 
 Effect of recent global economic slowdown on domestic business
 confidence and environment has resulted in adoption of Wait and
 Watch policy by major players in hydrocarbon sector. This has had an
 impact on EIL''s order book also and the inflow of jobs has not been
 what we would have desired.  Nevertheless, detailed feasibilities and
 investment commitments for next phase of expansion and new projects are
 already being undertaken by OMCs and as the economic conditions improve
 these investments are expected to materialize shortly.
 
 Your Company''s diversification strategy from core hydrocarbon sector is
 firmly on track and will be vital for our long term sustainable growth.
 We have been harnessing the ample growth opportunities in other related
 sectors viz. infrastructure and water management, solar and nuclear
 power, city gas distribution and fertilizers, wherein EIL can play a
 niche role. Besides developing consulting and EPC service segments in
 these areas, your Company shall also target other modes of project
 management viz. BOO/BOOT, O&M segments and project development. For
 example, on the power sector, we have secured breakthrough jobs in
 Nuclear from NPCIL for their Kudankulam Nuclear Plant and in Solar
 Power we are engaged in engineering of Power Block of 125 MW Solar
 Thermal Project.
 
 We are also in the process of building engineering and design expertise
 in deep-sea engineering and oil and shale gas, the hydrocarbon segments
 with high growth potential.
 
 Your Company remains firmly committed to the development of its core
 assets - its Human Resource and the overall welfare of its talent pool
 continues to remain a top priority. The management took a number of
 initiatives to augment its HR best practices during the year, prominent
 among them are introduction of reward and recognitions schemes,
 implementation of Biometric Attendance System, revision in Pay scales,
 allowances & perks for employees at staff level, revision of medical
 rules among many others initiatives.
 
 In addition we are in the process of introducing learning management
 system to support our training and leadership development plans. The
 success of your Company''s robust HR strategies is evidenced by its
 enviably low attrition rates of less than 3%.
 
 This year also saw the rewards of many tireless years of dedicated
 efforts by our work-force being crowned with success with several
 prestigious awards being bestowed on EIL. Prominent among them were
 SCOPE Institutional Excellence Awards for 2009-10 conferred by Dr.
 Manmohan Singh, the Hon''ble Prime Minister of India for EIL''s overall
 organizational performance, SCOPE Meritorious Award for excellence in
 Human Resource Management conferred by Smt.  Pratibha Devisingh Patil,
 the Hon''ble President of India. Other key awards include PSE Excellence
 Awards 2011 for excellence in R&D and Technology, ''Sarvashreshtha
 Suraksha Puruskar'' (Golden Shield) by the National Safety Council of
 India for Occupational Health and Safety, CIDC''s 4th Vishwakarma Award
 for Best Project for EIL''s Euro IV Upgradation Project of CPCL, First
 Prize from the Institute of Cost and Works Accountants of India (ICWA)
 for excellence in Cost Management Practices among many others. While
 our efforts are self-less and authentic in spirit, these recognitions
 from external boards of eminent judges, is evidence of our progress in
 the right direction.
 
 We are confident of maintaining our growth momentum over the next
 fiscal given our planned investments, our strong focus on research &
 development, human resource best practices, leadership position in the
 hydrocarbons and diversification strategies. Further the Company
 remains committed to good corporate governance and ethical practices as
 per our listing agreement and government guidelines.
 
 I thank you for your unflinching faith in the Company''s growth
 potential and look forward to your feedback and advice. The EIL
 management joins me in wishing you and your families the very best of
 prosperity and good health.
 
                                                          A. K. Purwaha