Dear Shareholders
 
 As EIL completes 46 years of its memorable journey in the Hydrocarbon
 Sector which began in 1965, it gives me immense pleasure to review our
 growth, and plan for the exciting opportunities that lie ahead of us.
 
 EIL, as it has evolved since its inception in 1965, is a great tribute
 to its founding fathers, who had the intuition, foresight and vision of
 a vibrant industrialized India capable of holding its own in the
 community of advanced nations and who dared to dream high. It is also a
 tribute to those dedicated people who worked tirelessly with an
 unflinching commitment to translate those dreams into reality. They
 deserve our rich tributes for the successes we have seen lately.
 
 EIL has been venturing into uncharted territories during the recent
 years and has taken long strides. It has registered a phenomenal growth
 recently, which has been made possible by the untiring efforts put in
 by our dedicated work-force. The results are there for everyone to see.
 This year the company completed work on the Bina Refinery of BORL, the
 company''s 9th Greenfield Refinery which was dedicated to the nation on
 20th May 2011, by Dr. Manmohan Singh, the Hon''ble Prime Minister of
 India.
 
 The company during the financial year 2010-11 has registered a Turnover
 of Rs. 2823 crore, a growth of 42% over the Turnover of Rs. 1994 crore for
 previous Financial Year. Profit from Operations has grown by 31% to Rs.
 626 crore from Rs. 478 crore. The order book which stood at around Rs. 6300
 crores at the end of fiscal 2009-10 is currently over Rs. 7500 crores.
 The company''s best-practices which have sustained this consistent
 growth were recognized this year with the Award of ''Star PSU of the
 year 2010''. This prestigious award, instituted by Business Standard and
 bestowed by Dr. Manmohan Singh, the Hon''ble Prime Minister of India.
 
 The Indian hydrocarbon sector has enormous potential in the coming
 years, as it will continue to play a pre-eminent role in meeting the
 country''s energy requirements and will be the key driver, after
 infrastructure, of India''s economic growth. The strong momentum in the
 refining sector is expected to continue, since India has emerged as a
 major export oriented refining destination and because of the growing
 domestic demand in the back of robust economic growth. We are the only
 player in the Indian hydrocarbon sector to provide complete ''concept to
 commissioning'' services under one umbrella and have emerged as the only
 ''total solution'' engineering consultancy company, principally focused
 on the oil and gas and petrochemical industries.  With an experience of
 four and half decades, we have developed an extensive track record of
 working with almost all the major players present in the entire value
 chain of hydrocarbon (upstream, midstream and downstream ).
 
 As part of strategic initiatives for enhanced growth and to leverage
 our strong engineering consultancy and EPC capabilities and track
 record, we intend to selectively diversify, where we believe there is
 high growth potential and we enjoy competitive advantage. We intend to
 explore opportunities in sectors like renewable energy, nuclear power,
 infrastructure, city gas distribution and fertilizer. The Indian
 infrastructure sector provides attractive opportunities, given the
 expected -trillion investment in the next five years. The new sectors
 will contribute considerably to the top and bottom line of the company
 for the next three to five years. This will be followed by healthy
 margins. However our focus will continue to be in the hydrocarbon
 sector, as that is our area of core competence.  We are at a cross
 roads today. The business dynamics is changing. Competition is
 increasing. Clients are more demanding today.  Innovation is the need
 of the hour to meet the challenges of the changing business dynamics. I
 acknowledge that organizations are built on a strong
 management-stakeholder relationship, which is a two-way channel. The
 investor cell at EIL is active in developing our relationship with
 shareholders and with potential investors and analysts. Various new HR
 initiatives are focused towards providing our employees with the right
 working environment.  Our various e-procurement initiatives such as
 online vendor registration, tender downloading, e-bill tracking etc are
 oriented for the ease-of-operations of our suppliers. Efforts to
 empower our key stake-holders will continue, with greater focus in the
 year ahead. Further the company remains committed to good corporate
 governance and ethical practices as per our listing agreement and
 government guidelines.
 
 I would in the end like to say that EIL enjoys enormous credibility in
 the energy sector. With consistence in our ingenuity, imagination and
 initiative, we strive to make it a dynamic institution capable to
 respond to the new and evolving challenges of the future. We are
 confident to maintain the growth momentum in the next decade, given our
 planned investments, leadership position in the hydrocarbon sector and
 diversification initiatives. For FY 2011-12, we will strive to maintain
 and improve the growth margins seen in FY 2010-11.
 
 I take this opportunity to congratulate all stakeholders of EIL for
 their contributions in nourishing this organization to its present
 glory and wish your families all the very best of prosperity and good
 health.
 
                                                      A. K. Purwaha
 
                                       Chairman & Managing Director