The Directors have great pleasure in presenting the 47th Annual Report
 together with audited accounts of the Company for the year ended March
 31, 2012 along with Audited Statement of Accounts, the Auditors'' Report
 and Review of the Accounts by the Comptroller and Auditor General of
 India.
 
 2011-12 in Retrospect
 
 EIL continued its good performance during the year 2011-12.  The
 salient features are as follows:
 
 Turnover                       : Rs 369882 lakhs
 
 Profit Before Tax (PBT)        : Rs 91477 lakhs
 
 Profit After Tax (PAT)         : Rs 63631 lakhs
 
 Turnover from core consultancy business increased y-o-y by 7% to
 Rs120731 lakhs and LSTK business increased y-o-y by 47% to Rs249151
 lakhs.
 
 Dividend
 
 The Board of Directors of the Company has recommended for the financial
 year 2011-12, a final dividend of Rs 4/- per share (of face value of
 Rs5/- per share) in addition to Rs 2/- per share interim dividend already
 paid during the year. With this, the total dividend for the financial
 year 2011-12 works out to Rs 6/- per share. Payment of final dividend
 is, however, subject to approval of the shareholders in the ensuing
 Annual General Meeting of the Company.
 
 Investor Relations
 
 It has been our constant endeavor to achieve highest standards of
 corporate behavior. In sync with this, Company undertakes all measures
 to enhance the market confidence and improve shareholders engagement
 through regular, transparent and open communication.
 
 Management is committed to share information with investment community
 on company performance as well as periodically convey essential updates
 on expected projects, new business initiatives, future outlook,
 industry insights and avenues of growth and investment plans.
 
 Dedicated Investor Relations (IR) cell was created last year to ensure
 timely communication of such information acting as an effective bridge
 between the management and the investment community. The cell
 effectively handles all investor concerns and/or issues in the best
 possible way, aligning it with the disclosure requirements,
 transparency and corporate governance rules & regulations.
 
 Company Management and IR cell are both actively engaged in investor
 communication through one on one meetings, con- calls, investor
 conferences, road shows and also exploit other print and web
 communication for information dissemination.  In this financial year
 (FY11-12) itself, a total of 3 road-shows, 4 conferences and around 70
 meetings/con-calls were conducted.
 
 Company periodically also obtains the opinion of the investment and
 analyst community as a valuable feedback for formulating its policies
 and taking strategic management decisions.
 
 Going forward Company plans to have a mechanism in place to have an
 online feedback system, discussion forums and webcasts for the
 convenience of our investors and analysts.  We aim to provide guidance
 for the benefit of investors and sell/buy side analysts through these
 efforts and various channels.
 
 Management Discussion & Analysis
 
 A separate report on Management Discussion and Analysis is annexed to
 this Report.
 
 Petroleum Refining
 
 Petroleum Refining sector continued to play a dominant role in
 Company''s business. During the year, EIL has achieved good progress on
 the following major jobs, some of which were commissioned/likely to be
 commissioned in the next financial year. These jobs include:
 
 - 9 MMTPA grassroot Guru Gobind Singh Refinery Project of HPCL -
 Mittal Energy Limited at Bathinda, Punjab has been successfully
 commissioned in record time of less than 44 months. The Refinery was
 dedicated to the Nation by the Hon''ble Prime Minister of India, Dr.
 Manmohan Singh on April 28, 2012. The Refinery consists of SPM (Onshore
 & Offshore) for receiving crude from tankers and crude oil terminal at
 Mundra for storage and onward pumping to refinery at Bathinda through
 1014 km of 30 / 28 cross country pipeline, CPP of 165 MW capacity
 and secondary process units viz. VGO HDT, PFCC, DCU, MS Block, DHDT to
 achieve high distillates yields meeting EURO-IV norms and a
 petrochemical unit producing Polypropylene. The Refinery is energy
 efficient and environment friendly. Diverse environment protection
 measures have been incorporated in the design of all project facilities
 which includes SRU, state-of-the-art ETP, Vapour Recovery System and
 low NOx burners in furnaces. This has provision for producing Euro-V
 product also along with alkylation unit in the future. The Refinery has
 been built at the cost of USD 4 billion.
 
 - Mangalore Refinery & Petrochemicals Limited (MRPL), a subsidiary of
 Oil and Natural Gas Corporation Limited having a nameplate capacity of
 9.69 MMTPA, has processed close to 12 MMTPA of crude with their Phase-I
 and Phase-II units. As part of Phase-III Refinery facilities, MRPL has
 planned to upgrade the refinery to meet Euro-III/IV specifications for
 its entire Diesel pool, including exports and also increase the crude
 processing capacity to 15 MMTPA by adding CDU/VDU of 3.0 MMTPA
 capacity.  Associated Utilities/Offsites are being augmented to cater
 to MRPL''s Phase-III requirements. The entire Project is being
 implemented on hybrid mode of LSTK/OBE/conventional system for various
 units. Major secondary processing facilities are being implemented on
 LSTK/OBE route while all the Utilities/Offsites are being implemented
 on EPCM route. EIL is the PMC for the LSTK contractors and EPCM
 consultant for Utilities/Offsites works. EIL has also been awarded the
 OBE-orders for the PFCC, SRU and PPU of Phase-III Project.
 
 MRPL had targeted to commission, at least, the CDU/VDU before March,
 2012. They declared mechanical completion of CDU/VDU in November, 2011.
 Utilities/Offsites, being implemented in EPCM mode under EIL had faced
 several unique impediments during construction phase like the enormous
 site grading, hard rock in patches of the site, PDFs, saving
 Benkinatheshwar temple, unprecedented rains and many more issues. EIL''s
 management encouraged and supported its team for making all-out efforts
 for Utilities and Offsites to be made ready before March, 2012.
 Dedicated efforts by EIL/MRPL team of engineers, well- supported by the
 Managements of both the organizations and Contractors led to completion
 of the required Utilities/Offsites also, ensuring smooth commissioning
 of CDU/VDU on March 29, 2012 i.e. well within the targeted dates.
 Client could dispatch all the products from the new units and could
 realize the huge Income Tax benefit under section 80 (ib) for which
 Govt. of India had fixed March 31, 2012 as last date.
 
 Other process units, DHDT, HGU and CHTU are also in the process of
 commissioning.
 
 MRPL under Phase-III Expansion Project have embarked upon a major
 initiative to not only upgrade the value of the products from their
 existing refinery, but also to enhance their profitability considerably
 by installing a Petrochemical Fluidized Catalytic Cracking (PFCC) for
 production of Polymer Grade Propylene. The PFCC Unit has been awarded
 to EIL on OBE convertible to LSTK mode. The PFCCU forms the key
 secondary processing facility of this Project and is one of the pivotal
 units which add substantive value to the Project. The unit has been
 licensed by M/s Shaw Stone & Webster and is designed for a high
 severity operation with a capacity of 2.2 MMTPA to produce about
 4,45,000 TPA of Polymer Grade Propylene.  The difficulty factor is
 highly exacerbated on account of the extreme criticalities arising out
 of the unit size and associated complications. The sheer magnitude and
 the volume of work involved in the Project itself poses critical
 challenges of building one of the most complex process units in the
 Refining industry, implemented hitherto in India. The construction
 activities of the Unit are in advanced stage of completion.
 
 SRU Block is also being implemented on OBE convertible to LSTK mode.
 Mechanical completion of Amine Regeneration Unit achieved as part of
 SRU and balance works is in advance stage of mechanical completion.
 
 MRPL also awarded the Polypropylene Unit (PPU) to EIL on OBE
 convertible to LSTK mode of implementation.  Detailed engineering and
 procurement activities are in advanced stage of completion. The site
 execution of PPU at MRPL was one of the most challenging tasks, due to
 uneven terrain at the site. Work at this site included piling,
 foundations and superstructure works, which are currently progressing
 well.
 
 - Wet Air Oxidation (WAO) Project which was awarded to EIL on LSTK
 basis by MRPL (with EIL''s own process design), has been commissioned on
 August 30, 2011.
 
 - 6MMTPA grassroot Bina Refinery of Bharat Oman Refineries Ltd.
 (BORL) at Bina, Madhya Pradesh was dedicated to the nation on May 25,
 2011.
 
 - Diesel Hydrotreater Unit (DHDT) built with technology developed by
 EIL (R&D), IOCL (R&D) and I IT Delhi at IOCL''s Bongaigaon Refinery was
 commissioned on August 10, 2011.  The technology for the DHDT Unit was
 commercially implemented for the first time in the country at
 Bongaigaon Refinery and had exceeded its designed performance.
 
 - EIL is also providing PMC services for implementation of 366 MW
 Captive Power Project (CPP) of IOCL''s 15 MMTPA Paradip Refinery
 Project. BHEL is the LSTK contractor for this Project. Various
 activities for this project are in full swing.
 
 - The engineering work of quality upgradation project CDU-II at CPCL
 has been completed and the shutdown of the plant is scheduled to be
 taken in the second quarter of 2012.
 
 - Work of New Coke Chambers & Allied Modernization Facilities at
 Guwahati Refinery is nearing completion.
 
 - Engineering and Procurement activities for Wax Project of NRL are
 progressing well. Construction activities have commenced at site.
 
 A number of new project assignments were bagged by EIL during the year
 2011-12 and work has commenced on all these projects. These include :
 
 - BDEP as well as EPCM services for CDU - 4 Project of BPCL Mumbai
 Refinery. The new Crude Distillation Unit will replace the ageing CDU -
 1 and CDU- 2. Both these units along with their associated facilities
 would be decommissioned upon commissioning & stabilizing of CDU-4. The
 Project will consist of associated facilities/units such as Vacuum
 Distillation Unit, Treatment facilities for LPG & off-gas and required
 balancing Utilities and Offsites. The work on this project is in
 progress.
 
 - Project Management Services for new Integrated Refinery Expansion
 Project (IREP) at BPCL Kochi Refinery. The work on this project has
 commenced.
 
 Petrochemicals
 
 This year also witnessed significant growth in the Company''s
 Petrochemical segment. During the year, EIL continued to make
 significant progress on following major jobs:
 
 - Assam Gas Cracker Project of Brahmaputra Cracker and Polymer
 Limited (BCPL), a PMO monitored grassroot petrochemical project being
 executed on conventional mode at Lepetkata near Dibrugarh, has made
 significant progress during the year. The project encompasses licensed
 units of Ethylene Cracker, LLDPE/HDPE & PP from Lummus Technology USA,
 INEOS UK, Lummus Novolen Germany respectively, apart from EIL licensed
 Gas Sweetening Unit, C  Separation Unit, Gas Dehydration Unit, Uilities
 & Offsites and Pipelines. Procurement for all equipment & award of all
 major construction contracts has been completed. Civil & structural
 works are in advanced stage of completion and mechanical works are in
 progress.  Once completed, this complex will produce LLDPE, HDPE & PP
 and availability of these products shall boost the development of
 plastic industry in North-East region.
 
 - Dahej Petrochemical Complex of ONGC Petro-additions Limited (OPaL)
 is being executed on PMC - LSTK mode.  Construction activities for
 upstream Cracker Unit are in full swing. LSTK contracts for various
 downstream process units, Utilities & Offsites are awarded. The Project
 consists of 11,000 KTA Dual Feed Ethylene Cracker, HDPE, LLDPE, PP
 units and associated Utilities and Offsites.
 
 - GAIL Petrochemical Complex - II Project has facilities at Vijaipur
 & Pata consisting of Gas Sweetening, Gas Cracker, C2/C3 recovery,
 LLDPE/HDPE Swing, Butene-I Units as well as Utilities & Offsites. The
 Gas Processing Unit (GPU) at Vijaipur at a capacity of 21.71 MMSCMD is
 one of the largest gas plants being designed in the world for recovery
 of C2/C3 fraction as feed to GCU. GAIL took the unique initiative of
 nominating the Licensor (M/s Shaw Stone & Webster) for GCU thereby
 giving impetus to the project. Licensor selection for downstream units
 at Pata is also completed.
 
 Utilities & Offsites facilities have been sized and infrastructure
 works are proceeding in full swing at both sites. All major long lead
 items such as Compressors, Heat Recovery Steam Generators, Utility
 boilers, STGs etc. have been ordered much in advance and delivery for
 some of the equipment has started. Civil and structural activities are
 in advance stage at site and composite mechanical contracts are already
 lined up for both the complexes.
 
 - The Butadiene Extraction Unit (BDEU) of IOCL''s Panipat Naphtha
 Cracker Project (PNCP) was awarded to EIL in October, 2010 and is being
 executed on EPCM basis. The 138,000 TPA capacity unit has been licensed
 by CB & I Lummus. Detailed engineering and procurement activities are
 in the advanced stage of completion. Contracts for all works have been
 awarded. Civil work at this site is nearing completion and mechanical
 works are in progress.
 
 Pipelines
 
 EIL has been aggressively working in the areas of oil & gas
 transportation and distribution in India and abroad. Following pipeline
 projects have been successfully completed during the year:
 
 - 30/28 x 1014 km Mundra-Bathinda Crude Oil Pipeline of HMEL.
 
 - 18 X 257 km Bina-Kota multi product Pipeline of BPCL.
 
 - Health & Integrity check of City Gas Distribution network of Adani
 Gas in Lucknow city and its integration with Green Gas Limited.
 
 - Detailed Feasibility Report for augmentation of Jamnagar - Loni LPG
 Pipeline of GAIL. Jamnagar - Loni is one of the longest LPG Pipelines
 of the world.
 
 - Detailed Feasibility Report for upgradation of plant & equipment of
 1157 km Oil India Crude Pipeline in North-East India.
 
 Following pipeline projects handling oil & gas are under execution:
 
 - South Jetty Development Pipeline project for loading/ unloading of
 petroleum products and crude oil for IOCL Paradip Refinery. This jetty
 will handle a wide variety of oil & gas products including crude and is
 first of its kind in India.
 
 - 46 nos. of flow lines of various sizes (3- 20) totaling 240
 km for NPCC/ADCO, Abu Dhabi.
 
 - 12 x 100 km, Hazira-Dahej Naphtha Pipeline for ONGC.
 
 - Two additional Compressor stations at Chainsa (Haryana) and
 Kailaras (Madhya Pradesh) on Vijaipur-Dadri Pipeline of GAIL.
 
 - 36/30/24/18 x 995 km Dabhol-Bangalore Natural Gas
 Pipeline of GAIL.
 
 - 10x26km LPG Onshore/Offshore Pipeline from BPCL/HPCL Mahul
 Refineries to Uran for BPCL.
 
 - 18/16 x 275 km Natural Gas Pipeline from Vijaipur to Kota and
 Spurline to Chittorgarh for GAIL.
 
 During the year, EIL has been awarded EPCM work for 36X 860 km
 Mehsana (Gujarat)-Bathinda (Punjab) Pipeline along with
 24/18/16/8 X 726 Km Spurlines for GSPL.
 
 In addition, EIL intends to diversify into cross country oil & gas
 transportation business on owner/ operator mode (in equity partnership)
 for new pipeline projects such as Surat - Paradip Pipeline of GAIL &
 Rewari - Kanpur Pipeline of HPCL.
 
 Offshore Oil & Gas
 
 - During the year, EIL continued to provide PMC services to GSPC for
 following projects for their Offshore Block:
 
 - Wellhead Platform
 
 - Process - cum - Living Quarters Platform
 
 - EIL is executing SPM and Associated Facilities Project of MRPL at
 Mangalore on OBE basis. After installation of these facilities, MRPL
 shall be able to import crude by VLCC Tankers up to 3,00,000 DWT
 capacity resulting in considerable cost savings.
 
 - EIL is providing Project Management Consultancy services for Marine
 and Topside Facilities for Standby Jetty of Dahej LNG Terminal of
 Petronet LNG Limited. The Standby Jetty is designed to moor and offload
 LNG carriers with capacity of 125,000 m3 to 266,000m3.
 
 - EIL is providing pre-award services to ONGC for turnaround
 reconstruction works of BPA & BPB Platform Complexes and successfully
 completed post award engineering activities for WIN Revamp project of
 ONGC and pre-award services to ONGC for WO-16 cluster and cluster 7.
 
 - EIL continued to provide Project Management Consultancy services
 for integrated offshore crude handling facilities for IOCL at Paradip.
 This includes setting up of two SPMs and 48'', 71 km subsea pipelines.
 The crude handling facility will meet the requirements of Paradip
 Refinery including other eastern refineries of IOCL.
 
 - EIL is also carrying out re-qualification and re-certification of
 50 (nos.) offshore jackets for ONGC.
 
 During the year, EIL bagged the following orders against stiff
 competition :
 
 - Project Management Consultancy services for construction of South
 Oil Jetty at Paradip for IOCL.
 
 - Front-End Engineering Design for New Gas Injection, Gas Lift, Oil
 Facilities for seven numbers well head platforms in Upper Zakum
 facilities of Zakum Development Company (ZADCO), Abu Dhabi.
 
 - Carrying out Engineering Study for HAZOP action points of Umm Shaif
 and Zakum facilities in Abu Dhabi of Abu Dhabi Marine Operating Company
 (ADMA-OPCO).
 
 EIL intends to foray into deep water engineering. The deep water
 engineering along with LNG Terminals is viewed as the future business
 area for the Company.
 
 Onshore Oil & Gas
 
 - GSPC, as a part of Deen Dayal Field Development Project, is
 implementing an Onshore Gas Terminal (OGT) facility at Mallavaram
 (A.P.). The project is being executed on OBE mode and consists of two
 trains of 100 MMSCFD each with GDU, GSU, DPDU, CSU, Sulphur Recovery
 unit and associated Utilities & Offsites. Engineering & Orderings for
 the project are in advance stage of completion.  Manufacturing &
 Deliveries to site are in progress.  Construction activities have also
 gained momentum in full earnest.
 
 - EIL has been awarded Western Onshore Redevelopment Project (WORP)
 on PMC basis by ONGC for onshore assets for 90 installations at
 Ahmedabad, Ankleshwar and Mehsana. The modernisation plan shall ensure
 sustainability of oil and gas production from old ageing fields, to
 handle increasing level of liquid and its efficient processing, sales
 specifications of Basic Sediment and Water Impurities (BS&WI) and
 enhance efficiency for better safety standards and better reliability.
 
 - EIL is also providing PMC services for Additional Gas Processing
 Facilities (AGPF) Phase-IV at Hazira of ONGC.
 
 Strategic Storages
 
 Rapid economic and industrial growth coupled with increasing energy
 demand has resulted in increasing importance to the issue of energy
 security. Recognizing the country''s dependence on imported oil and gas
 resources, Government of India has accorded high priority to securing
 India''s energy security objectives and is constructing a buffer in the
 form of underground rock caverns for reserve supply of crude oil to
 deal with possible disruptions in the supply chain.
 
 Phase-I of Government of India''s Strategic Storage of Crude Oil
 programme is witnessing the development of crude oil storages at three
 locations, viz. Visakhapatnam, Mangalore and Padur. Sub-surface
 Projects Division (SSPD) of EIL is executing these three underground
 rock cavern projects. The project at Visakhapatnam is in advanced
 stage, with mechanical completion of the first cavern expected to be
 achieved by October 2012.
 
 Under Phase-II of the programme, EIL has been assigned the task of
 preparation of Detailed Project Report for storage of crude oil and
 petroleum products in underground rock caverns at Padur (Karnataka) and
 Chandikhol (Orissa), in- ground concrete tanks at Rajkot and salt
 caverns at Bikaner. As the salt caverns and in-ground technologies are
 being implemented for the first time in the country, foreign back-up
 consultants are being engaged for the DPR, preparation of which is
 underway.
 
 EIL is striving to attain design capability in such areas of
 underground storage. With expertise gained from foreign back-up
 consultants engaged for the projects at Mangalore and Visakhapatnam,
 EIL is executing the Padur project independently without the services
 of a back-up consultant.  Services of an expert have been sought solely
 for the review of design of critical items being performed by EIL.
 
 Metallurgy
 
 The following major projects were implemented/are in various stages of
 implementation:
 
 - The Phase-II expansion of NALCO Bauxite Mines at Panchpatmali (from
 4.8 MMTPA to 6.3 MMTPA), Alumina Refinery at Damanjodi, Odisha (from
 1.575 MMTPA to 2.1 MMTPA) has been completed.
 
 - Fourth Stream Upgradation Project (from 0.525 MMTPA to 0.7 MMTPA)
 of NALCO Alumina Refinery at Damanjodi is under advance stage of
 completion.
 
 - Engineering services to Mahan Aluminum Smelter (capacity
 360,000TPA) project of HIL (Hindalco Industries Ltd) at Singrauli, M.P.
 have been completed.
 
 - Engineering services to Aditya Aluminum Smelter (capacity 360,000
 TPA) project of HIL at Lapanga, Odisha is nearing completion.
 
 Infrastructure
 
 The Infrastructure Division of EIL is providing Project Management
 services, Third Party Inspection services, Quality Assurance services,
 ''Independent Engineers'' services, Project Appraisal services and is
 also working on Deposit Concept for various clients.
 
 The clients include State Trading Corporation, Indian National Science
 Academy, Petroleum Conservation Research Association, Apparel Export
 Promotion Council of India, Indira Gandhi National Open University, Oil
 India Limited, Oil Industry Development Board, Defence Research &
 Development Organization, National Highways Authority of India,
 Airports Authority of India, Sardar Sarovar Narmada Nigam Limited,
 Delhi Jal Board, Delhi University, Municipal Corporation of Delhi, New
 Delhi Municipal Corporation, Pune Municipal Corporation, Jaipur
 Development Authority, National Automotive Testing and R&D
 Infrastructure Project, National Capital Region Planning Board, Unique
 Identification Authority of India, Directorate of Income Tax , Regional
 Centre for Biotech, Central Scientific Institute of Research, Punjab
 Water Supply and Sewerage Board, Hindustan Petroleum Corporation
 Limited, Rajiv Gandhi Institute of Petroleum Technology, Ministry of
 Home Affairs, Jaipur Development Authority, GAIL (India) Limited and
 Housing & Urban Development Corporation.
 
 During the year, EIL was awarded the jobs of EPCM services for Green
 R&D Centre of HPCL at Bengaluru, Bid Management services for
 Upgradation and Modernization of ONGC Nhava Supply Base at Mumbai,
 prefeasibility study for underground services in walled city Jaipur and
 Technical Audit of Project cost estimate incurred by Mumbai
 International Airport Limited. The job of Technical Audit of Automotive
 Test Track at Pithampur, Madhya Pradesh was also secured.
 
 The current financial year witnessed commencement of the assignment for
 construction of institutional buildings for Delhi University at North
 Campus, construction of Biotech Science Cluster at Faridabad for
 Regional Centre for Biotech and TPI services for construction of GAIL
 Jubilee Tower at Noida.
 
 A number of projects such as development of CSIR''s Diamond Jubilee IGIB
 extension campus at New Delhi, renovation of Aykar Bhavan at Ghaziabad
 for Directorate of Income Tax and prefeasibility study for underground
 services in walled city Jaipur were completed during the year.
 
 Efforts are also on for gaining consultancy services for infrastructure
 projects in the areas of Metro Rail system, Sustainable Urban
 Development, Intelligent and Green buildings, Ports and Airports, etc.
 
 Fertilizers
 
 Recognizing the wide gap between demand and indigenous supply of
 fertilizer, EIL strategized its business operation in Fertilizer and
 Chemical sector. Last year, EIL re-entered the Fertilizer Sector with
 brownfield Ammonia/Urea complex project of Jaiprakash Industries and
 Revamp project of Indo Gulf Fertilizer.
 
 As a major shift in the Company''s operation, EIL along with NFL as
 Joint Venture partner is likely to take over the revival of Ramagundam
 Fertilizer Plant. The business environment of the sector is very
 encouraging with major players viz GSFC, GNFC, RCF, Chambal
 Fertilizers, Juari Industries and ONGC drawing up plans for expansions
 and new plants.
 
 After adopting the PMC and EPCM business model for ongoing activities
 in fertilizer and chemical sector, EIL is planning to secure EPC
 contracts also by establishing MOU with various process licensors.
 
 Water and Waste Management
 
 In this sector, EIL intends to focus on integrated water management
 covering the gamut of water intake works, treatment, storage and water
 distribution as well as sewerage network for waste collection, sewage
 treatment plant, tertiary treatment plant and recycling/reuse of
 treated water, with special stress on desalination projects and solid
 waste management. EIL will continue to target engineering consultancy
 and PMC opportunities as well as EPC projects.  Laying of Interceptor
 Sewerage System along Najafgarh, Supplementary & Shahdara Drains for
 abatement of pollution in River Yamuna is under execution for Delhi Jal
 Board (DJB).
 
 City Gas Distribution
 
 This is another sector which has a high growth potential due to
 inherent advantage of gas as a clean fuel. EIL believes that given its
 track record of providing engineering consultancy and EPC services for
 urban infrastructure projects and cross- country hydrocarbon projects,
 the city gas distribution sector provides attractive opportunities.
 Though the business dynamic of city gas distribution is passing through
 a challenging period due to reduced availability of natural gas, EIL is
 initially examining its foray into city gas distribution projects
 through various entry modes.
 
 Power
 
 Power Division which was created for spearheading EIL''s diversification
 plans into Power sector achieved major breakthroughs with important
 players in the power industry.  EIL secured business in all sectors in
 power be it Nuclear, Solar or Thermal power projects.
 
 - Nuclear
 
 EIL bagged Engineering Services Contract for Balance of Plant of
 Kudankulam Nuclear Power Project - Units 3 & 4 (KKNPP-3&4). NPCIL
 entrusted EIL with other assignments related to KKNPP leveraging the
 Memorandum of Cooperation signed between the companies. With a vision
 to prepare for the special requirements of Nuclear industry, training
 was imparted to EIL specialists in Nuclear power area.
 
 - Solar and Conventional Thermal Power Plants
 
 EIL is providing PMC and technical services for captive power plants
 for various clients and has also undertaken a Detailed Project Report
 along with selection of EPC contractor for 72 MW CPP for KRIBHCO''s
 Fertilizer Complex at Hazira. Further, under stiff competitive bidding,
 EIL has won the contract for preparation of DFRs for 350   MW gas based
 Combined Cycle Power Plants at Kashipur and Haridwar from UJVNL-GAIL
 Joint venture.  EIL has also penetrated the 660 MW super critical power
 projects by getting an order for providing Specialist Consultancy
 Services for 2x660 MW capacity coal fired Supercritical Thermal Power
 Plant of OPGC at Jharsuguda, Odisha.
 
 M/s Areva have awarded EIL with Engineering Consultancy Services for
 Power Block and third party design review of structures for SSG in
 Solar Block for 1 x125 MW Concentrated Solar Thermal Power Project
 (under National Solar Mission) of Reliance, located at Dursar village,
 Pokaran (Rajasthan). AREVA Solar Inc.(USA), as an EPC contractor and
 technology supplier, will be developing and manufacturing solar steam
 generators based on the Compact Linear Fresnel Reflector (CLFR) for
 this project. This project is the largest solar thermal power project
 in India and one of the largest in the world.
 
 EIL is also providing PMC services to GAIL for their 5MWe Solar PV
 Power Project at Jaisalmer (Rajasthan) under National Solar Mission
 Phase-I, Batch-2.
 
 Turnkey Projects
 
 EIL is executing turnkey projects either on LSTK mode or on the ''Open
 Book Estimate (OBE)'' basis. Following jobs made substantial progress
 during the year:
 
 - Construction progress for three OBE convertible to LSTK packages,
 namely PFCC, SRU Block and PP of MRPL Refinery Expansion Phase-Ill
 Project are in advance stage.
 
 - Wet Air Oxidation (WAO) Project which was awarded to EIL on LSTK
 basis by MRPL (with EIL''s own process design), has been commissioned on
 August 30, 2011.
 
 - SPM and associated facilities to MRPL Phase-111 project is being
 executed on OBE mode. After installation of these facilities, MRPL
 shall be able to import crude by VLCC Tankers up to 3,00,000 DWT
 capacity resulting in considerable cost savings.
 
 - For On-shore Gas Terminal Project of GSPC at Kakinada, A.P.  being
 executed on OBE mode, Engineering & Orderings are in advance stage of
 completion. Manufacturing & Deliveries to site are in progress.
 Construction activities have gained momentum.
 
 Overseas Assignments
 
 There has been steady progress with EIL''s global expansion plans during
 the year. Apart from continuing success with existing projects, EIL was
 also able to bag new overseas assignments during this year.
 
 Key assignments completed during the year include:
 
 - Preparation of technical specifications for SUDAPET Company
 Limited, Khartoum, Sudan
 
 - Replacement of GUP Hydrophor Fire Water System Pumps at Ruwais
 Refinery of TAKREER, Abu Dhabi, UAE.
 
 - Engineering services for assessment & selection of Heat Exchanger
 for ADMA OPCO, Abu Dhabi, UAE
 
 - Licensor selection for Sohar Refinery Expansion Project for ORPC,
 Oman Work progressed well on following major jobs during the year :
 
 - Design & detailed engineering services to NPCC for Qusahwira Field
 Development 1.8 MM BOPD Project of ADCO, Abu Dhabi, UAE. Project scope
 comprises two group gathering and crude processing stations, namely,
 Central Degassing Station (CDS) and Remote Degassing Station (RDS-1)
 and a 14 - 80 km. long main crude transfer oil line followed by field
 engineering support, commissioning support and inspection & expediting
 support to NPCC.
 
 - Various services under General Services Agreement (GSA) with
 EQUATE, Kuwait
 
 - New Services Contract (till January, 2013) for Development of
 Engineering Capabilities for M/s SONATRACH, Algeria.
 
 - Rehabilitation and Adaptation Project of Skikda Refinery and
 Algiers Refinery of SONATRACH, Algeria
 
 - Engineering Services to M/s BANAGAS and BAPCO companies of Bahrain.
 
 Major consulting services assignments were secured from our target MENA
 countries, besides new assignments from CIS:
 
 - PMC Services for 5 Nos. Pipeline Projects of GASCO, Abu Dhabi, UAE
 
 - DFR and cost estimate for KPRL Refinery Upgrade Project of KPRL,
 Kenya
 
 - PMC Services for EPC Phase of Habshan Acid Gas Flare Recovery
 Project of GASCO, Abu Dhabi, UAE
 
 - FEED for New Gas Injection, Gas Lift, Oil facilities (Package B)
 for ZADCO, UAE
 
 - Frame Agreement for the provision of Engineering Design Services to
 NPCC, Abu Dhabi
 
 - Adequacy Check for EPF-120 Facility for Kuwait Processes for
 Petroleum Equipment & Facilities Co. WLL, Kuwait
 
 - Design, Engineering and Preparation of EPIC Tender Package for New
 Flare System at CPF for Dragon Oil (Turkmenistan) Ltd, Dubai
 
 - Feasibility Study for Bentiu Mini Refinery of SUDAPET Company
 Limited, Khartoum, Sudan
 
 - Technical Due Diligence for Project Lotus in Vietnam for ONGC
 Videsh Limited (OVL)
 
 Engineering
 
 Engineering Division of EIL continued its efforts towards providing
 more efficient engineering services for all ongoing projects of the
 Company. There was an all round improvement in systems and processes
 with close coordination between different groups and streamlining of
 data transfer and information exchange. Some of the major assignments
 undertaken by Engineering Division during the year include:
 
 - Engineering for procurement of pneumatic conveying system for
 handling LLDPE/HDPE Powder/Pellet with capacity of 80 TPH, highest ever
 capacity procured in EIL, for GAIL Petrochemical Complex-II Project at
 Pata, Auraiya.
 
 - Engineering for procurement of DOX (Dispersed Oil Extraction) unit
 with design flow rate of 107 m3/h, highest ever capacity procured in
 EIL, for GAIL Petrochemical Complex-II Project at Pata, Auraiya.
 
 - Engineering for procurement for the first time of Membrane N2 unit
 with design flow rate of 595 Nm3/h for Qusahwira Field Development
 Project of ADCO in Abu Dhabi.
 
 - PMC services including complete conceptualization and sizing of
 largest Product Ware House handled by EIL with 88,000 MT storage
 capacity for OPaL, Dahej.
 
 - PMC services to non-conventional energy sector projects like 125
 MWe Solar Concentrated Thermal Power Project which includes the largest
 capacity (14000 m3/hr) of horizontal cooling water pumps by EIL, for
 Reliance Infrastructure and Areva.
 
 - Development of Technical Specifications for NPCIL for Engineering
 Services Contract for BOP of Kundankulam Nuclear Power Plant (KKNPP) -
 3 & 4.
 
 - Engineering for procurement of a 6.4 MW cycle gas centrifugal
 compressor having dual drive (i.e. electric motor & gas expander)
 handled by EIL for the first time for LLDPE/HDPE Unit of GAIL, Pata.
 
 - Engineering for replacement of existing 11x20kA, 900V rectiformer
 with 6x55 kA, 900V rectiformer without disturbing the existing
 operation of Pot line 2&3 of Hirakud Aluminum Smelter for Hindalco.
 
 - Basic design, preparation of technical specs. and tender drawings
 for balance of plant involving 400 kV & 230kV Gas insulated
 switchgears, 400/230kV- 315MVA transformers etc. for power evacuation
 system from 2x1000MW generators of KKNPP - 3&4 of NPCIL.
 
 - Detailed engineering for balance of Turbine Island of 125 MWe Solar
 Thermal Power Plant at Dursar, Jaisalmer district, Rajasthan for
 Reliance Industries Ltd.
 
 - Implementation of pipeline leak detection system using
 state-of-the-art Fiber Optic Distributed Temperature Sensing (DTR)
 technique at South Jetty Project of IOCL Paradip. C3 Stripper of MRPL,
 PFCCU with I/D of 7000mm, Height (TL-TL) of 70955mm & Erection Weight
 of 150MT.
 
 - C3 Rectifier of MRPL, PFCCU with I/D of 7000mm, Height (TL-TL) of
 67000mm & Erection Weight of1060MT.
 
 - EIL designed HP Exchanger (TEMA Type-DEU) with design pressure of
 168 Kg/cm2 for first time for GSPC which has been successfully
 fabricated and hydrotested.
 
 - C3 Splitter of Cracker unit of GAIL, Pata. Modification of diameter
 of column from 3200mm I/D as furnished by Licensor, to 4300mm I/D,
 thereby decreasing the erection weight by approx. 100MT.
 
 - Engineering lay-out and composite analysis involving very high line
 sizes - including 129 for the first time and high temperatures in
 the range of 760 degree centigrade.
 
 - Development of capability for carrying out stress analysis of class
 2 & 3 nuclear piping as per ASME Sec III NC and ND.
 
 - Carrying out development activity related to Acoustic Induced
 Vibration study of piping.
 
 - Development of capability for carrying out analysis of ASME Sec
 VIII Division II vessels considering creep-fatigue interaction.
 
 - Coordination and initiation of the construction of first in- house
 designed and engineered Green Building project (Administration
 Building) at GAIL''s two Compressor Station sites (Chainsa and Kailaras)
 by the Architecture Department.
 
 - Inauguration of state-of-the-art Main Control Room Building at MRPL
 Refinery Expansion Project (Ph-III) amidst great appreciation by the
 client due to its effective functional and aesthetic design.
 
 - Design of buildings pertaining to new areas like Nuclear Power,
 Solar Power, Fertilizer plants etc. to fully comply to functional,
 codal and other specific requirements.
 
 - New activity areas like Interior Designing, Landscape Design (of
 entire complexes) etc. undertaken.
 
 - Site selection studies for following clients:
 
 - TATA SASOL''s Coal to Liquid plant. The study involved techno
 commercial, socio political analysis and plot plan optimization.
 
 - HPCL Refinery in Ratnagiri district of Maharashtra.
 
 - ONGC''s Gas Processing Plant in Thane district of Maharashtra.
 
 Project Services
 
 Project Services Division of EIL continued to provide critical planning
 and costing services to various projects both at Head Office and
 various project sites. Using state-of-the-art tools and its data base,
 the Division caters to diverse project execution roles of the Company
 viz. EPCM, PMC, LSTK/OBE.
 
 The Planning Division utilizes Primavera and various in-house software
 packages for project planning and monitoring activities. Apart from
 providing services for all the projects undertaken by EIL, the Division
 continued to provide project monitoring services to Ministry of
 Petroleum and Natural Gas for the 30th successive year. This Division
 also supports man- hour control and manpower planning activities of the
 Company.
 
 The Costing Division provides services such as preparation of cost
 estimates and economic analysis in diverse activities ranging from
 technology selection to preparation of feasibility reports and other
 project cost related support such as cost monitoring and control during
 execution of projects under conventional and LSTK mode of execution.
 The vast data base and capabilities help in providing valuable support
 for bid evaluation and award of major contracts as well as in providing
 effective cost control services.
 
 Construction
 
 Construction Division of EIL continued to provide Construction
 Management Services to various clients at 42 diverse domestic project
 locations and 5 overseas locations.  The Division offers services for
 total Construction Management including Contract Administration,
 Construction Quality Surveillance, Feedback Analysis, HSE and Warehouse
 Management for projects in Petrochemicals, Refineries, Cross-country
 Pipelines, Gas Processing Complexes, LNG Terminals, Non-ferrous
 Metallurgy and Offshore Industry. The resource pool of Construction
 Division includes a team of qualified and experienced engineers, having
 strength of 702 regular technical personnel, 12 consultants, 26
 management trainees as well as 105 technical personnel deployed through
 outsourced agencies. As on March 31, 2012, total strength of
 construction personnel deployed is 845.
 
 Current prestigious commitments for the Division involve MRPL Phase-III
 project involving 4 (four) nos. OBE contracts, Petrochemical Complex at
 Dahejfor OPaL, Gas Cracker Complex at Lepetkata for BCPL, OGT at
 Kakinada for GSPC, Wax Project for NRL, DBPL Pipeline etc.
 
 Construction activities commenced for the following new projects during
 the year:
 
 - Wax Project, NRL
 
 - Butadiene Extraction unit, IOCL, Panipat
 
 - CDU/VDU-II at CPCL, Chennai
 
 - Rehabilitation Project at Algiers Refinery
 
 The highly skilled & motivated EIL construction team with unblemished
 track record has been instrumental in establishing & monitoring
 adherence of construction Quality Management System comprising of
 quality plans, test plans including record keeping (FIR), monitoring
 special processes for concreting, welding (involving latest NDT
 techniques, radiography, ultrasonic test etc) during all phases of
 construction to ensure trouble free commissioning/operation of critical
 units.
 
 EIL attaches highest importance to HSE policy in execution of all its
 projects. This commitment was epitomized by following accolades earned
 during the year:
 
 - 48.3 million LTA free manhours at MRPL Ph- III Project of MRPL.
 
 - Sarvashreshtha Suraksha Puruskar (Golden Shield) by the
 National Safety Council of India (NSCI) for managing best safety
 standards in LLDPE/HDPE Swing unit (EPCC-3) at IOCL''s Panipat Naphtha
 Cracker Project.
 
 - 25 million LTA free manhours at Gas Cracker Project of BCPL.
 
 - 25 million LTA free manhours at Rehabilitation & Adaptation of
 Skikda Refinery Project in Algeria for SONATRACH.
 
 - 8.5 million LTA free manhours at DPC Project of OPaL .  Process
 Design & Development
 
 The Process Design & Development Division of EIL continued its efforts
 to secure business from new clients besides serving various existing
 clients, both in India and abroad. Prominent jobs undertaken by the
 Division during the year include the following:
 
 - Diesel Hydrotreating Technology (DHDT) indigenously developed by
 EIL, IOCL (R&D) and IIT Delhi has been implemented for the first time
 in Bongaigaon Refinery of IOCL. The unit was commissioned on August 10,
 2011. The Performance Guarantee Test Run (PGTR) of the unit was carried
 during December, 2011 and all the guaranteed parameters have been
 successfully met.
 
 - Light Naphtha Isomerization Technology (LNIT) indigenously
 developed by EIL and IOCL R&D has been implemented for the first time
 in Bongaigaon Refinery of IOCL. The unit was successfully commissioned
 on September 30, 2011. The unit is running smoothly since commissioning
 and PGTR of the unit is scheduled to be held in May, 2012.
 
 - Detailed Feasibility Report including configuration study, site
 selection, crude receipt facilities and cross country crude pipelines
 completed for 18 MMTPA Maharashtra Refinery Project of Hindustan
 Petroleum Corporation Limited (HPCL).
 
 - Detailed Feasibility Report including configuration study completed
 for Visakh Refinery Modernization Project of HPCL.
 
 - Basic Design, Engineering Package and Detailed Feasibility Report
 including cost estimate completed for 35000 TPA INDADEPTG unit of
 Guwahati Refinery of IOCL based on technology developed by IOCL R&D and
 EIL.
 
 - Prefeasibility completed for processing of Rajasthan crude in Guru
 Gobind Singh Refinery.
 
 - Prefeasibility Report for expansion of Guru Gobind Singh Refinery
 from 9 to 11.25 MMTPA crude processing capacity.
 
 - Prefeasibility Report to enhance the processing capacity of Bina
 Refinery from present 6 MMTPA to maximum achievable capacity
 considering low cost expansion.
 
 - Detailed Feasibility Study for a Mini Refinery Project at Bentui in
 United State of undivided Sudan.
 
 - Feasibility Study for recovery of Styrene, mixed Xylene and Toluene
 from Pygas for IOCL.
 
 - Residual Basic Engineering completed on KBR licensed basic design
 package for Propane De-asphalting unit Revamp of HPCL Mumbai Refinery.
 
 - Study on relief valves failures for Bahrain Petroleum Company,
 Bahrain.
 
 - Consultancy services to address problems being faced in Delayed
 Coker Unit of IOCL Gujarat Refinery.
 
 - Preparation of adequacy check report for EPF-120 Facility at
 Kuwait.
 
 - Process Design and Residual Process Engineering services for the UP
 Petrochemical Complex Expansion Project comprising of an Ethylene plant
 and Polyethylene plant of GAIL (India) Limited at Pata.
 
 - PFR for a Pet coke based Petrochemical complex for producing
 Polymers and other valued added products by MRPL.
 
 - DFR and cost estimate for KPRL Refinery Upgrade Project for KPRL,
 Kenya
 
 - Detailed Feasibility Report including configuration study for
 Mathura Refinery Expansion to 11 MMTPA capacity by IOCL.
 
 Research & Development
 
 With the objective to foster the spirit of innovation and creativity in
 the organization, Research and Development Division (R&D) has
 contributed significantly in the consolidation of existing
 capabilities, development of new technologies & hardware and
 enhancement of the portfolio for special technology related areas this
 year. The Division is pursuing developmental activities, both in house
 and in collaboration with academic institutes and other R&D
 organizations like IOCL-R&D, IIP, BPCL (R&D), IITs etc.
 
 - Centre for High Technology (CHT) sponsored Coal to Liquid (CTL)
 technology development project undertaken in association with BPCL
 (R&D) is progressing well. Micro & bench scale reactors have been
 procured and installed at BPCL and kinetic studies are in progress. At
 EIL (R&D), cold flow slurry bubble column pilot facility has been
 installed. The data generation and analysis is in progress.  Basic
 design package for Synthesis Gas cleanup pilot facility is ready for
 implementation. Design and preparation of process package for pilot
 gasifier is also in progress.
 
 - The development project undertaken in association with IIT
 Kharagpur for CO removal from Natural Gas is nearing completion. New
 amine based solvent (i.e. new formulation of amine blend) has been
 developed for which experimental studies for vapor liquid equilibrium,
 kinetic data and physicochemical property generation have been carried
 out at IIT. The flow simulation has also been completed.
 
 - DHDT technology indigenously developed by EIL and IOCL has been
 adopted by Bongaigaon Refinery (IOCL-BGR). The unit was commissioned
 and Guarantee Test Run accomplished successfully to produce EURO-IV
 Diesel and ATF fuels.
 
 - EIL continued its successful commercialization of CFC technology
 developed along with IOCL-R&D. The LPG units at GGSRL Bathinda, IOCL
 BGR and IOCL Digboi designed on this technology have been successfully
 commissioned.
 
 - EIL developed proprietary structured packings (PARLPAK) have been
 supplied to MRPL for CFC prewash column (LPG unit), HPCL for crude
 distillation unit and Brahmaputra Cracker and Polymers Limited for gas
 dehydration unit.
 
 - For demonstrating INDADEPT technology for Naphtha & Diesel
 Desulfurization developed jointly by EIL and IOCL, IOCL is planning to
 set up a demonstration cum commercial unit of 39,000 MTA capacity at
 Guwahati Refinery to treat heavy gasoline cut of INDMAX (FCC) Naphtha.
 The Sulfur content will be reduced from 1000 ppmw to 50 ppmw. It will
 not only permit blending of complete heavy gasoline to BS III MS pool
 but also provide an edge to Guwahati Refinery to meet future more
 stringent specifications of BS IV MS pool with respect to Sulfur. OIDB
 has in principle agreed to fund a major cost of the unit (70%). BDEP
 for setting up the unit has already been prepared and submitted to
 Guwahati Refinery.
 
 - R&D has undertaken the job of Design Multiplication and preparing
 BDEP for the High Melting Explosive (HMX) production unit of Terminal
 Ballistic Research Laboratory (TBRL). This is a DRDO project of
 national importance.
 
 - EIL signed an MoU with BVG Waste Management Limited to prepare BDEP
 for modernization of the existing plastic to fuel plant of 2 TPD
 capacity for improved performance and safety. After successful
 implementation of modernizing 2 TPD plant, BDEP for 5 TPD plant will
 also be carried out.
 
 - In order to carry forward their endeavour to develop more efficient
 structured packing and high capacity trays, EIL has signed an MoU with
 M/s Kevin to commercialize that design.
 
 - EIL has also signed an umbrella MoU with BPCL R&D for taking up
 joint development projects.
 
 - EIL has signed an MoU with IIP and NRL to improve Sulphur recovery
 efficiency of EIL- IIP developed SOR Process
 
 - Technical proposal based on in-house developed technology for
 recovery of CO from flue gases has been submitted to CFCL-Chambal.
 
 - MoU Project for development of dynamic simulation capabilities for
 oil & gas separation systems has been completed and a real life case
 study completed successfully. The results from our study are comparable
 with the actual commercial study carried out by an established external
 consultant.
 
 - A project to carry out energy conservation study for Numaligarh
 Refinery Limited (NRL) had been undertaken in association with Centre
 for High Technology. The energy study has been completed and report
 submitted to NRL.
 
 - A multidisciplinary core group (design and engineering groups) for
 conducting energy audit/studies is being constituted. Petroleum
 Conservation Research Association (PCRA) has already revalidated
 empanelment of EIL as energy auditor on PCRA''s panel. R&D has increased
 its tally of BEE (Bureau of Energy Efficiency) certified Energy
 Auditors with three more R&D engineers successfully clearing the
 National Certifications Examination for the same administered by the
 National Productivity Council.
 
 - Based on innovative work done during the year, the R&D Division has
 filed one patent entitled Oxygen Enrichment Technology using waste
 Nitrogen.
 
 Sustainable Development
 
 Sustainable development has been accorded the highest priority.
 
 This requires the reconciliation of Social, Economic and Environmental
 Demands - the Three Pillars of Sustainability.  At EIL, the
 sustainability mandate is not just about contributing to a good cause
 or complying with environmental regulations but rather about operating
 its business in a manner that is responsible and transparent to all its
 stakeholders and to the society at large.
 
 In its commitment to the environment, the company saw the deployment of
 state of art technologies in the field of effluent recycle/reuse
 leading to Zero Liquid Discharge (ZLD) requirements, carbon management
 for control of volatile organic compounds, hazardous and solid waste
 management, recovery of oil from oily sludge and treatment of oily
 sludge using bioremediation process, opting energy efficient processes
 and treatment system as part of its key accomplishments during the
 year. The Company''s Environment Division continued its progress in the
 field of Water & Waste Water Treatment Plants, Environmental Impact
 Assessment (EIA), Environment Health Safety Assessment, Feasibility and
 other Environmental Studies, which proudly reflect the strength of
 Environment Division.
 
 This year EIL is the only government organization that is authorized by
 GOI for carrying out EIA studies and was selected from 265 government
 and private organization that had applied.
 
 On the societal front, pursuing its goal of inclusive growth, the
 Company''s CSR Policy was updated and aligned with the national accent
 on inclusive growth and the DPE Guidelines on CSR.
 
 This year also saw the company making a planned shift towards a new
 approach to business that creates long-term shareholder value by
 managing its economic, environmental and social risks and
 opportunities.
 
 The company management sees business opportunity in its sustainability
 policy. By delivering its services in a sustainable way, and taking a
 long term perspective the management hopes to ensure EIL''s enduring
 future success in harmony with the wider world.
 
 Plant Operations and Safety
 
 The Plant Operations and Safety Division (POSD) of EIL continued to
 provide services in the following areas during the year:
 
 - Process design for Offsite Facilities of Refinery, Petrochemicals,
 Gas Processing Units, Oil Terminals.  Onshore Terminals, Topsides of
 Strategic Storages (underground caverns), Cross Country Pipelines, LNG
 Terminals etc.
 
 - Safety related studies like Hazards and Operability Study (HAZOP),
 Hazard Identification (HAZID), Risk Analysis & Quantitative Risk
 Analysis (QRA), Safety Integrity Level (SIL), Safety Audits, Safety
 Reviews and Emergency Planning.
 
 - Pre-commissioning & commissioning of process plants, Utilities,
 Offsites in refineries, petrochemical and gas processing areas,
 terminals of crude oil, product and LNG and pipelines etc. including
 total responsibility for LSTK projects and Operating Manuals
 preparation.
 
 The following major assignments were completed/were in progress during
 the year:
 
 - Process package for offsites and utility facilities of Integrated
 Refinery Expansion Project (IREP), BPCL, Kochi.
 
 - Process package for offsites, storage and transfer facilities for
 Wax Project of Numaligarh Refinery.
 
 - Process package for SPM and associated onshore and offshore
 facilities at Mangalore.
 
 - Process package for augmentation of Kota - Piyala section of Mumbai
 - Vizag Pipeline
 
 - Process design of offsites facilities for GAIL Petrochemical-II
 project.
 
 - Based on in house developed design capabilities, process package
 for design of Vapor Recovery System of MRPL Phase - III project
 completed.
 
 - DFR for crude oil pipeline upgradation of OIL Trunk pipeline
 system, capacity augmentation of Jamnagar - Loni LPG pipeline of GAIL
 and Dabhol - Bangalore Pipeline Phase-II of GAIL.
 
 - PMC/EPCM services for Topside facilities for Strategic Storage of
 Crude Oil at Padur for ISPRL, intermediate & product storage and
 transfer facilities for OPaL, Dahej and BCPL.
 
 The Division has successfully completed the following major
 commissioning assignments during the year:
 
 - Commissioning of 9 MMTPA grassroot Guru Gobind Singh Refinery at
 Bhatinda of HMEL.
 
 - DHDT Project of Bongaigaon Refinery of IOCL. IOCL-BGR is the first
 refinery in the country to adopt the indigenous technology developed by
 EIL-IOCL R&D Consortium.
 
 - Early commissioning of CDU / VDU, Utilities & Offsites of MRPL
 Ph-III Project.
 
 - Commissioning of Mundra - Bathinda Crude Pipeline.
 
 - Commissioning of Vijaipur-Dadri-Bawana GAIL Gas Pipeline along with
 Vijaipur / Jhagua Compressor Stations.
 
 The following pre-commissioning/commissioning activities were under
 progress during the year:
 
 - Commissioning of various units of MRPL Ph-III project.
 
 The Division continued its efforts in securing new business in both
 domestic and overseas markets and undertook following major studies
 during the year:
 
 - Quantitative Risk Analysis (QRA) for PLL''s LNG Terminal at Dahej,
 Integrated QRA for entire Panipat Complex of IOCL
 (Refinery/Petrochemical/Terminals).
 
 - HAZOP studies for GAIL- I Complex, IOCL Mathura Refinery Complex
 and various units of BCPL and OPaL Projects.
 
 - HSE studies including HAZID, HAZOPS, SIL, QRA etc. for Dragon Oil,
 Turkmenistan.
 
 - HAZOP study for Hydrogen Plant of BAPCO, Bahrain'' Research work on
 failure of Relief valves of BAPCO, Bahrain
 
 Development projects initiated earlier like design of Vapour Recovery
 System and new business initiatives like O&M services to industry are
 in progress.
 
 Heat and Mass Transfer
 
 The Heat and Mass Transfer Division (HMTD) of EIL continued to provide
 thermal/hydraulic/mechanical designs for Fired Heaters, Cast/Glass Air
 Preheaters, Mass Transfer Systems, Sulphur Recovery Equipments and
 Ejectors in addition to thermal design of Heat Exchangers & Air
 Coolers.
 
 The Division also continued to provide process services for offshore
 jobs of both ONGC and GSPC.
 
 The Division undertook many jobs where various innovative/value added
 services along with cost cutting measures were provided. Some of the
 key achievements are as follows:
 
 - A prestigious job was undertaken for improving Air Cooler
 efficiency for Ruwais Refinery of Abu Dhabi Oil Refining Company
 (TAKREER), Abu Dhabi. An Engineering study was carried out to assess
 the current performance of Air-cooled Heat Exchangers after a detailed
 site survey.
 
 - HMTD has recently carried out design of 3 nos. Inverted Kettle Heat
 Exchangers for GAIL-Pata & GAIL-Vijaipur.  Inverted Kettle Exchangers
 are special type equipment where tube side fluid is under cryogenic
 condition and sub- zero temperatures are frequently encountered.
 
 - Based on supportive interaction with a reputed licensor, HMTD
 demonstrated its expertise in using HTRI Software. With this
 breakthrough, EIL now has proven capability in design of Inverted
 Kettle Exchangers for cryogenic service. This will result in
 significant cost savings to our clients and eliminating monopolistic
 approach of vendors.
 
 - HMTD rendered services to IOCL, Mathura for enhancing capacity of
 CDU heaters corresponding to 11 MMTPA including replacement of burners
 for reducing NOx emission. The job included site survey to ascertain
 the current operating performance & identification of constraints.
 Basic engineering data along with burner technical / tender
 specifications have been furnished to enable execution by client to
 meet the challenging shutdown requirements in a fast & reliable manner.
 
 - HMTD rendered services to Ruwais Refinery of TAKREER for the study
 for performance improvement & feasibility to install APH in their
 existing crude heater. Client was facing chronic problems of high flue
 gas temperatures/flame impingement in the heater. The study involved
 site survey & suggesting remedial measures to be adopted for safe
 operation of the heater. To provide efficient services, an interactive
 philosophy was adopted through periodical discussions/presentations
 leading to time saving to conclude the study.
 
 - Reliance Industries Limited (RIL), Vadodara placed an order to
 study for capacity enhancement of their Steam Superheater. As a cost
 saving measure, RIL desired to utilize the existing heater to
 super-heat high pressure steam for feeding to downstream turbine.
 Innovative revamping techniques with least cost have been suggested to
 client as part of the study to achieve desired objectives.
 
 - The Division also handled major projects in the offshore, onshore
 and multiphase pipeline sectors. With its In-house process design
 capabilities and expertise, the Division has been successfully
 delivering the milestones for New Gas Injection/Gas Lift/Oil facilities
 for ZADCO, Abu Dhabi; implementation of HAZOP recommendation for ADMA-
 OPCO, Raw and Produced Water Treatment and Injection facilities for
 Petrolera Indovenezolana, PDVSA, Venezuela; Wellhead Platform/Process
 cum Living Quarter platform and sub-sea pipeline projects under Deen
 Dayal Field Development Project of GSPC; FEED packages for WO-16 and
 Cluster-7 platforms & Revamp of 39 unmanned wellhead platforms, GTG
 Replacement at Sagar Lakshmi platforms for ONGC.
 
 - Division continued its efforts in technology development and
 knowledge acquisition through MoU with Kevin Enterprises Limited,
 Mumbai for joint development of various mass transfer column internals,
 e.g, high capacity trays, structured packing.
 
 Specialist Materials and Maintenance Services
 
 The Company continued to provide specialist materials and maintenance
 services to its clients in Petroleum, Petrochemical, Metallurgical and
 Infrastructure sectors during the year. Some of the important
 activities are:
 
 - Health Check study for GAIL plants in Vijaipur, Gandhar, Usar and
 Vagodia
 
 - Health study & RLA for critical equipments of Indo-Gulf Fertilizer
 Ltd.
 
 - Health assessment & preparation of Development Plan for Trincomalee
 Oil Storage Terminal of Lanka IOC, Sri Lanka.
 
 - Study of CP System in Tata Chemicals, Babrala, UP
 
 - Condition assessment of 30 Crude Pipeline, ONGC- Ahmedabad
 
 - Review of Refractory & Insulation in Mombasa Refinery of Kenya
 Petroleum Refinery Ltd. ,
 
 - Failure Analysis of Cooling water Pumps of Essar Oil Ltd.
 
 - Refractory Lining design & engineering analysis for Lifting of
 Combustor in Mundra Unit of Philips Carbon Black.
 
 - Refractory Lining modification in Mangalore Chemical & Fertilizer
 Ltd.
 
 - Technical advisory services to HPCL, Vizag and to various
 refineries of IOCL.
 
 - Material Selection for equipment, piping and pipelines for various
 on-going projects viz., GGSR, MRPL, OPaL, BCPL, NPCIL and GSPC.
 
 - SMMS Division has been advising and specifying on the Corrosion
 Monitoring Systems, Inhibitor Injection Systems, Corrosion Protection
 Coatings, Cathodic Protection Systems for Onshore and Offshore
 pipelines and Chemical Cleaning Systems for new plants.
 
 - SMMS has been actively involved in evaluating newer materials,
 fabrication and inspection techniques for the benefit of industries and
 have also contributed to the National and International Standardization
 bodies like BIS and ISO.
 
 Environmental Engineering
 
 The new green economy has propelled the world to opt for stricter
 environment norms and have opened up new vistas for Environment related
 business. Taking initiative in this direction, the Environment Division
 took steps for the implementation of clean and green technologies in
 order to reduce carbon footprint of the project. The state of art
 technologies in the field of effluent recycle/reuse leading to Zero
 Liquid Discharge (ZLD) requirements, carbon management for control of
 volatile organic compounds, hazardous and solid waste management,
 recovery of oil from oily sludge and treatment of oily sludge using
 bioremediation process, opting energy efficient processes and treatment
 system, have given the Division a new vision. Environment Division
 continued to stride in the field of Water & Waste Water Treatment
 Plants, Environmental Impact Assessment (EIA), Environment Health
 Safety Assessment, Feasibility and other Environmental Studies, which
 proudly reflect the strength of Environment Division.
 
 Some of the major achievements of Environment Division include the
 following:
 
 - Successfully commissioned Wet Air Oxidation Plants at MRPL,
 Mangalore and Guru Gobind Singh Refinery at Bathinda based on in-house
 developed technology.
 
 - Successfully completed EIA reports for GAIL Pata, GAIL Vijaipur,
 Petronet LNG, and CRZ clearance for Kudankulam Nuclear Power Plant
 (KKNPP).
 
 - Successfully completed Environmental Health Risk assessment for
 NTPC Super Thermal Power Station at Kaniha.
 
 - Estimation of EIL''s Carbon footprint for EI Bhawan and R&D Centre.
 
 - Study for IOCL Vadodara for the improvement in the existing
 Effluent Treatment Plant, Feasibility Studies for Desalination Plant at
 Barmer, Rajasthan.
 
 - Process Package for Solid Waste Incinerator at IOCL, Paradip, a
 first for EIL
 
 - Engineering work for balance of plant for KKNPP 3-6 for NPCIL. The
 highlight of the project is comparative analysis of Thermal
 Desalination and Reverse Osmosis.
 
 - Consultancy services to Areva / Reliance Solar Thermal Power Plant
 at Rajasthan for their water packages.
 
 Information Technology Services
 
 Information Technology Services (ITS) Division of EIL continued to
 provide critical IT enabled services during the year. This year the
 focus has been to develop/implement systems resulting in fast execution
 of projects, productivity enhancement, cost reduction, faster decision
 making and better services to clients.  Some of the activities
 undertaken were :
 
 - Process Data Sheet Integration Systems (PDSIS) has been implemented
 for generation of Process data sheets and a centralized knowledge
 database for storage of technical parameters of various equipment. This
 will decrease time for down stream engineering activities for the
 future projects thereby reducing time schedules and ensuring
 consistency in the quality of documents.
 
 - To ensure timely completion of project activities, feature to
 generate auto alerts have been built in various software systems such
 as Electronics Document Management System (eDMS), Project Progress
 Monitoring System and Vendor Document Management System.
 
 - To automate activities relating to engineering functions,
 development of workflow based software systems has been initiated.
 
 - Web based portals, integrated with eDMS of EIL, have been developed
 for electronic/on-line exchange of documents with suppliers,
 contractors, clients etc.
 
 - Online Concessions and Deviations Management System has been
 implemented to manage entire life cycle of concessions and deviations
 submitted by suppliers and contractors. This shall reduce the decision
 making time on such matters.
 
 - As a part of Green Initiative, printed reports in many systems have
 been reduced considerably and information is transmitted/exchanged
 electronically in a secured manner.
 
 - Developed on-line e-investment system for Fixed Deposits and other
 investments.
 
 - On-line Campus Recruitment System and On-line Induction System for
 Management Trainees/new joinees has been put in place.
 
 - An Enterprise Risk Management System (ERMS) has been implemented to
 identify and manage existing as well as new risks in a planned and
 structured manner. The system shall increase the effectiveness of risk
 reporting structure and involvement of all the employees within their
 own areas of responsibility across the ERM phases. It shall also
 facilitate the accurate, complete and timely escalation of risk
 information to support management decision making.
 
 - To enhance the degree of continuity for EIL''s business operations
 and to plan for the risks relating to any disaster, initiatives have
 been taken to set up a Disaster Recovery Centre at EIL, Chennai.
 
 Procurement Services
 
 The Procurement Services Division of EIL provides complete supply chain
 management services for various projects handled by EIL, both as a
 consultant and a contractor. Timely and efficient procurement of goods
 and services is a major and critical factor in determining EIL''s
 success in execution of projects.
 
 The Division has been spearheading implementation of newer technologies
 in order to upgrade the efficiency and effectiveness of procurement.
 Over the years, all procurement functions have been IT enabled - from
 the receipt of an indent upto Inspection, Dispatch and Transportation
 of the Equipment. In addition, the Division has already implemented
 e-procurement as well as reverse auction for its contracting and
 purchasing. The Division has an integrated in-house ERP & EDMS
 application linking all procurement functions across various
 geographical locations.
 
 Public procurement has three vital components, i.e., transparency,
 equity and fairness. EIL is continuously focusing to ensure the same
 whilst simultaneously improving the procurement process efficiency.
 
 During the year, orders for Rs3400 crore of direct
 purchases/sub-contracts were placed on suppliers/ contractors, from all
 over the world, for various OBE/LSTK projects including infrastructure
 projects. Besides this, orders for Rs8500 crore of goods and services
 were placed for various clients'' projects.
 
 Procurement Division carried out in-process and pre-dispatch inspection
 of critical equipment at suppliers'' works as well as project sites
 through its Regional Procurement Offices located all over the country
 and overseas offices located at London, Shanghai and resident inspector
 at Milan. Major items inspected included Propylene fractionators (91m
 long, 483 MT), Seal less pumps manufactured first time in India, three
 stage (LP, MP, HP) compressor with steam turbine for BCPL, Amine
 absorber (155 mm thick, 310 MT) for GSPC, and Column (7m Diameter, 1100
 MT) for MRPL.
 
 The procurement office in China which was set up two years back
 continues in contributing to enlargement of the suppliers'' data base of
 capable Chinese & Korean manufacturers.
 
 Enlarging data base of capable suppliers has always been the effort of
 the Division. Suppliers located worldwide apply through online system
 available at EIL website. Database of capable contractors is also being
 maintained on similar lines.  One landmark achievement of the year was
 to qualify suppliers of Flanges, Fittings and Pipes based on Blocks
 with respect to Sizes/Rating/Metallurgy. This has helped immensely in
 improving the procurement of piping items.
 
 Quality Management System
 
 In EIL, Quality Management System is aligned and focused with long term
 objective of the company. Quality is inbuilt into our processes at
 workplaces, deliverables and services.
 
 The Quality Management System (QMS) in respect of Company''s services
 has been reassessed in accordance with the requirement of ISO 9001:2008
 by the certification agency, who conducted the 2nd surveillance audit
 during the period under review. The certification agency after audit
 declared that the Quality Management System of the Company continues to
 conform to international standards and recommended for continuation of
 the ISO certificate.
 
 The important ingredients of our quality initiatives are effective and
 comprehensive internal audit process, planned customer perception
 surveys, analysis of feedbacks from stake holders and regular
 directions from Management Review Committee and Systems Committee which
 consists of senior officials.  Regular monitoring is done to analyze
 the data and feedbacks for recommending improvements in processes,
 products and QMS to reduce costs, shorten cycle times and improve
 visibility and credibility without affecting the environment. QMS
 implementation and its effectiveness has further increased due to
 computerization of certain processes through in-house developed
 software.
 
 Quality Management System of EIL - Abu Dhabi (UAE) office was also
 independently audited and reassessed for certification by certification
 agency, who conducted the first surveillance audit, for its conformance
 to the requirement of ISO-9001:2008, during period under review. In
 addition, the Company participated as a prominent and active member in
 various committees for formulating products and quality system
 standards by Bureau of Indian Standards.
 
 Quality Management System at EIL provides the competitive edge in
 securing and executing the projects with focus on full customer
 satisfaction.
 
 Risk Management
 
 The Company has a Risk Management policy and a supporting frame work
 which facilitates the identification and assessment of new risks and
 review of existing risks. The process is based on identified risks and
 the risk events or factors which require regular assessment and quick
 response. Based on the probability and impact of the risk, the
 requisite controls and action plans are designed. The effectiveness of
 controls and action plans are monitored by Key Risk Indicator (KRI).
 
 The objective of risk management in the Company is to act as enabler in
 maintaining its knowledge edge, sustaining and expanding the business,
 being competitive and ensuring execution of projects within budgeted
 cost and time resulting in improved turnover and profitability.
 
 Risks, their root causes, controls and action plans are prepared by
 process owners and updated regularly. These are approved by the Risk
 Management Committee (RMC) with Director (Finance) as chairman of RMC
 and all the Executive Directors as members with Head of Risk Group as
 member secretary. Risk audits are conducted regularly to test the
 controls and report the same to RMC.
 
 The status of Enterprise Risk Management (ERM) process is presented to
 Audit Committee on bi-annual basis which is reviewed by the Board of
 Directors also. The reporting structure meets the compliance issues.
 
 Based on periodic reviews and implementations of recommendation
 resulting from review process, the ERM process is continuously improved
 and strengthened. Project risk management has been introduced as pilot
 basis.
 
 The management is committed to further strengthen its risk management
 capabilities in order to protect and enhance shareholder value by
 improving its business performance.  Continuous efforts in creating new
 opportunities, improving competencies/knowledge in various areas
 leading to improved performance and leveraging existing knowledge
 resources, in line with the risk appetite of the company, has enabled
 the company to protect the interests of various stakeholders.
 
 Vigilance
 
 During the year, vigilance activities such as CTE type examination of
 EIL''s jobs on LSTK/OBE basis, random inspection of in-house
 contracts/purchases, scrutiny of Immovable Property Returns,
 investigation of complaints etc.  were carried out by the Vigilance
 Department with the focused objective of ensuring conformity to the
 Company procedures and Government guidelines. For systemizing the work,
 various rules, regulations and procedures including HR policy on campus
 recruitment 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 actions were
 undertaken for improvement.
 
 Structured meetings between CVO, C&MD and Directors were held and the
 MoMs were forwarded to CVC and MoP&NG.  Inter-directorate meetings were
 also held periodically between CVO & Directors to resolve the pending
 issues.  Vigilance activities were also presented to the Board.
 
 Vigilance workshops, interactive sessions, seminars, debates, Vigilance
 Awareness Week etc. were organized in HO, Regional, Branch, Procurement
 and site offices of EIL during the year for spreading vigilance
 awareness and encouraging Participative Vigilance amongst the
 employees of EIL. An interactive meet ''Vigilance - Sankalp 2011'' was
 organized to deliberate on technical and vigilance aspects of business
 dealings with ethical approach for the benefit of key functionaries of
 EIL which was attended by Secretary, CVC and CTE.
 
 Some important features of Vigilance activities are given below:
 
 - Leveraging Technology
 
 Reverse auctioning, e-tendering, e-payment, e-receipt, etc. are already
 implemented 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.
 
 - Complaint Handling Policy (CHP)
 
 As per CVC Guidelines, EIL has formulated Complaint Handling Policy to
 resolve complaints/grievances from public, contractors, vendors,
 suppliers etc. A web portal for online complaint handling is now
 available on the Company''s website.
 
 - Policy regarding recruitment of Ex-employees
 
 EIL has policy for recruitment of ex-employees. Vigilance has ensured
 that employees who have been penalized during service or on the scanner
 of vigilance shall not be considered for re-employment.
 
 - Job Rotation
 
 Job rotation of sensitive posts is being done at the behest of
 Vigilance. Sensitive Posts were revisited and a new list of ''Sensitive
 Post'' has been finalized and implemented.
 
 - Verification of ST certificates
 
 Verification of ST certificates of EIL employees is being carried out,
 as per the instructions of DOPT. Since 2005, 3 cases of submission of
 fake/unauthentic ST certificates have been detected so far and highest
 punishment of Dismissal of Service has been imposed on all the three
 employees.
 
 - Integrity Pact
 
 EIL has signed an MoU with Transparency International (TI) India on
 November 7, 2011 for implementation of ''Integrity Pact'' program.
 Further, two Independent External Monitors (IEM) as approved by CVC
 have been empanelled for a period of three years.
 
 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.
 The Company optimized the returns on cash reserves by deploying cash
 surplus in safe and liquid instruments as per the approved investment
 policy of the Company.
 
 Internal Audit
 
 The Company has an Internal Audit Department having adequate number of
 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 have been submitted to the Management and the Audit
 Committee of the Board.
 
 Human Resource & Industrial Relations
 
 EIL is a technology driven organization whose main assets are its
 people. The Company''s sustained growth and impressive performance can
 be attributed to sound HR systems and processes in place, which in turn
 are closely aligned with the corporate plans and strategy.
 
 The organization strongly believes that growth of its people will in
 turn contribute in growth of the Company. Being a talent driven &
 knowledge based consultancy organization, it is important for EIL to
 enhance the capabilities of its human capital by increasing the
 competency & commitment of its employees so as to maximize their
 contribution towards achievement of organizational objectives.
 
 In view of the ever-changing business scenario, HR has kept pace with
 the organisation needs through various HR initiatives.
 
 - Manpower Profile
 
 The Company has a qualified and professional employee base with over
 3450 employees as of March 31, 2012, including 2990 technically and
 professionally qualified employees as well as 392 women employees
 representing 11.3% of total strength. Approximately 3.0% of these full-
 time employees were located outside India. Many of our engineers are
 familiar with international work environment and cultures.
 
 Our HR Policies are aimed towards recruiting talented employees and
 facilitating their integration into the Company, encouraging the
 development of their skills and enhancing their geographic and
 professional mobility. To meet the workload of the Company, necessary
 recruitment has been undertaken at the junior and middle-management
 level as well as the ''Management Trainees'' Level.
 
 We strive to maintain good relationships with our employees, which has
 enabled us to avoid any industrial unrest and maintain a relatively low
 attrition rate.
 
 - Employee Welfare
 
 Throughout the year various Health Camps and Health Talks were
 organized for the benefit of employees as welfare initiative under HALE
 (Health Assessment & Lifestyle Enrichment) Programme, aiming at
 improving organizational productivity through employee health and
 well-being. Blood Donation Camp was also organized on March 15, 2012,
 EIL''s Foundation Day, wherein 102 employees volunteered for the cause.
 
 - Reward & Recognition
 
 With a view to recognize employee & team efforts, stimulate creativity,
 motivate the achievers for sustained exemplary performance, retain
 talent, improve Employee Engagement, reinforce positive behaviours &
 create a better working environment, two Reward and Recognition Schemes
 have been introduced in EIL. Kudos! - an individual reward scheme
 has been introduced to place on record appreciation for good work done
 by individual employee. A System Feedback reward scheme has been
 introduced to reward individuals for giving useful suggestions/
 feedback resulting in system improvement.
 
 - Performance Management System
 
 EIL has in place a robust and transparent Performance Management System
 that gives weightage to both performance and behavioral attributes. The
 outcome of Performance Management System is used for performance
 related pay, career progression, training & development and succession
 planning.
 
 - Training & Development
 
 Employees being EIL''s prime asset, development of employees through
 training & development programme is the key to sustainable development.
 
 EIL training initiatives have focused on technical and behaviourial
 areas leading to multi-skilling and upgradation of skills/knowledge. A
 total of 180 training programmes were conducted for developing skills
 in Management Development, Technical & Functional Enhancement,
 Leadership Development and other areas. With a view to strengthen the
 core competence of organization, programmes were organized in technical
 areas such as Nuclear Technology, Pinch Technology, PRIMAVERA, SAP
 codification, PMI certification, PDMS, Certified Welding Inspectors
 Course etc.
 
 During the year 2011-12, training for senior management was also
 emphasized. Two residential programmes namely ''Seven Habits of Highly
 Effective People'' and ''Great Leaders, Great Teams, Great Results'' were
 organized for executives at the level of Executive Directors, General
 Managers and Dy. General Managers. One more batch of Aarohan'' - the
 Leadership Development Programme of eight months'' duration covering
 27 participants was successfully completed during the year continuing
 the focus on development of Leadership Pipeline.
 
 Focus on providing structured management development programmes through
 management institutes was maintained by organizing such programmes in
 collaboration with various Management Institutes for senior and junior
 level executives. In addition to conducting programmes at HO, Executive
 Development Programmes were also conducted at other locations such as
 Mangalore site, BCPL Lepetkata site , BO Mumbai and RO Chennai.
 
 Customized competency based programmes like Connect 360, Planning for
 Results, Plan Better: Deliver Best, Express to Engage, Personal
 Excellence and Emotional Intelligence, Leadership in Execution,
 Creating Winning Teams etc. were organized on regular basis covering
 executives at all levels.
 
 In order to bolster the mentoring process, new joinees at Management
 Trainees level were assigned mentors who are senior members of EIL
 family. The mentors guide their protegees in order to nourish their
 career in EIL and help them navigate their way towards a bright career.
 
 During 2011-2012, total 4972 nominations were made for different
 programmes and average man-days training per employee stood at 2.81.
 
 - Leveraging IT in HR processes
 
 In EIL the primary objective of incorporating IT in HR system has been
 to streamline the HR processes and ensure transparency in the system.
 Being a progressive organization, EIL has implemented a series of
 online HR modules developed in-house for its various HR processes.
 Implementation of such processes has resulted in achieving greater
 efficiency and employee satisfaction.
 
 - Scheduled Caste/Scheduled Tribe
 
 With a view to accelerate the pace of socio-economic development of the
 nation, EIL has been endeavoring towards safeguarding the interests of
 disadvantageous sections of society. In pursuance of the philosophy and
 compliance of Presidential Directives dated December 30, 1972 issued by
 Ministry of Petroleum and Natural Gas, EIL has incorporated necessary
 provisions in its recruitment process and promotion norms.
 
 The Company has appointed a Liaison Officer to work as a catalyst 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.
 
 As on March 31, 2012, 17.9% of total staff strength of the Company was
 from Scheduled Castes and 3.8% from Scheduled Tribes. Senior officials
 of the Company have been holding regular meetings with representatives
 of SC/ST Welfare Association and Liaison Officer for redressal of their
 grievances/concerns. During the year, out of 243 personnel joining the
 Company, 57 belonged to SC/ST (SC- 29, ST-28). Reports are being sent
 to MoP&NG/DPE periodically as per Govt. of India guidelines. Post based
 rosters are being maintained in direct recruitment and in promotion.
 
 In order to fill up the backlog of vacancies, EIL has been resorting to
 special recruitment drives from time to time which have helped in
 meeting the constitutional obligations.
 
 Besides, the Company has also taken up special component plan and
 sub-tribal plan for the welfare of SCs/STs by awarding scholarships to
 students of these communities.
 
 Corporate Social Responsibility
 
 During the year, the CSR Policy was updated and aligned with the
 national accent on inclusive growth and the DPE Guidelines on CSR. The
 corporate systems and processes were strengthened with the formation of
 a CSR Committee of the Board by the Board of Directors and a CSR
 Council by EIL Management to provide direction and oversee the CSR
 initiatives of the Company. The CSR Budget for 2011-12, in keeping with
 the DPE Guidelines, was 1151 lakhs and during the year project
 allocations of 1221 lakhs were made. The CSR expenditure at Rs942 lakhs
 during the year exceeded the MoU annual ''Excellent'' target of Rs 900
 lakhs. Salient highlights of the area-wise CSR activity details are as
 under:
 
 - Healthcare
 
 Under this initiative Mobile Medicare Units for the aged in the society
 were provided at Ahmedabad and Pune in association with Help Age India;
 an Ambulance and a Mobile Dispensary was provided to VK-BORL Hospital,
 Bina for supporting the heath needs of the villagers neighboring the
 Bina Refinery Project, 10 eye-cum-health check up camps were sponsored
 in association with Mahavir International under their flagship project
 ''Doctor at Door Step'' where a total of 5458 patients were examined and
 70 cataract surgeries performed with free pick and drop facility and
 hearing screening machines for diagnosing and remediating hearing loss
 in newborns were provided to Child Care Centre, Kochi.
 
 A major health-care project in an advanced phase of implementation is
 the construction of the second and third floors of the Government
 General Hospital at Kakinada, Andhra Pradesh for enhancing medical
 facilities for the populace of the area. Other projects under execution
 include providing two Mobile Eye Care Units for ophthalmic checkup and
 follow-up care to Mahavir International, medical diagnostic equipments
 and medical van for early detection and palliative care to cancer
 patients in sub-urban areas of NCR to Global Cancer Concern India and a
 mobile cancer detection and diagnostic unit to Indian Cancer Society.
 
 - Education
 
 Projects completed in this activity area were food delivery vans for
 providing meals to government school children under the Mid-day Meal
 Scheme of the Government given to ISKON Food Relief Foundation, a
 school bus and computers to Shanti Sahyog for facilitating the
 education of underprivileged children and a multi-utility vehicle and
 computers for the education of orphans and destitute children managed
 by Snehi.
 
 Projects under implementation included construction of additional
 classrooms staircase/ramp and upgradation of washrooms at the
 Government Higher Secondary School in Sangam Vihar, New Delhi;
 supporting education of terrorism & ethnic violence affected children
 in Jammu & Kashmir, Assam and Manipur in association with National
 Foundation for Communal Harmony, upgradation of school infrastructure
 in the North Eastern region and skill training through ITI, Dibrugarh.
 
 - Drinking Water/Sanitation
 
 Salient projects completed were provision of potable water and
 upgradation of sanitation facilities for the abandoned and helpless
 women and girls residing at Sri Digambar Jain Mahila Ashram, New Delhi
 and RO water plants for the orphans and destitute children at
 Balbhawan, Greater Noida.
 
 Major projects under implementation were the construction of a water
 treatment plant for augmenting potable water supply in the Kancheepuram
 District, Tamil Nadu and development of a reservoir for sustained
 supply of potable water to Bharuch city.
 
 - Rural Electrification
 
 The major solar electrification project under implementation is the
 setting up of solar power plants with their maintenance and management
 by the village community, post-installation in two remote villages of
 Kargil Region in association with the Kargil Renewable Energy
 Development Agency. Other projects under execution include providing
 solar lighting in villages of Nayagarh, Odisha and Raigard,
 Maharashtra.
 
 - Women Empowerment
 
 Knitting machines were provided to Indian Council for Poverty
 Alleviation for their skill training programme of women from the poor
 segments of the society to enhance their employment opportunities.
 Another project being implemented under this initiative is for
 providing prosthetic limb to breast cancer survivors enabling them live
 their life with dignity through Cancer Sahyog.
 
 - Environment Protection
 
 Support was provided to the trans-Himalayan region project of
 Pathfinders for enhancing awareness amongst the school children and
 locals on environmental protection and sustainability in Ladakh region.
 
 - Upliftment of underprivileged in society
 
 Under this initiative projects completed were providing a school van
 for the visually impaired children to National Association for the
 Blind and wheelchairs for disabled sportspersons through Wheelchair
 Fencing Federation of India.
 
 The projects under implementation include the construction of a
 multi-purpose hall for the Old Age Home in Mirzapur, Uttar Pradesh and
 providing infrastructure support for the vocational training of hearing
 impaired women in Delhi.
 
 Official Language
 
 Quarterly meetings of Official Language Implementation Committee (OLIC)
 of EIL were held regularly to review the progress of use of Hindi. The
 meetings of different OLICs of Regional/ Field/Procurement Offices were
 also organised as per schedule. Provisions of the Section 3(3) of the
 Official Language Act and the Official Language Rules have been
 complied with. The initiatives taken in the field of IT include
 activating Unicode facilities in all computers, providing Indic IME,
 Shrutlekh, Shabdika, Parivartan and other software on the computers and
 imparting training of above software during Hindi Workshops. One Hindi
 typist has been recruited for Branch Office (BO) Mumbai and 4 Hindi
 Translators have been recruited in HO, BO Mumbai, Regional offices at
 Vadodara and Chennai. Senior officers of the Company participated in
 the meetings of the Town Official Language Implementation Committee
 (TOLIC).
 
 EIL received a Shield and Appreciation letter for effective use of
 Official Language Implementation at HO by Rupambara. In pursuance of
 the Official Language Policy of the Government of India, new joinees
 who are not conversant in Hindi are nominated for correspondence course
 of Ministry of Home Affairs. However, at HO regular classes are being
 conducted for such employees. More than 96% employees have already got
 working knowledge of Hindi. Cent percent stenographers & typists are
 trained in Hindi stenography and typing respectively at HO, hence the
 100% target has been achieved in respect of Stenographer & Typist.
 
 As per the parliamentary requirements and in compliance of Official
 Language during the year EIL Rajbhasha Vibhag conducted inspections of
 21 Divisions/ Departments in HO and 13 Regional/ Fields /Procurement
 offices. Five Hindi workshops were organized at HO, New Delhi, 2 at
 Gurgaon Office and 7 at Regional/Field/Procurement offices. Hindi
 Unicode workshop organised under the aegis of TOLIC on January 20, 2012
 is also included in HO workshops which was attended by the participants
 from other undertakings. The Hindi Fortnight was celebrated from
 September 14 - 28, 2011 in the Company. Various competitions were
 organized to encourage the progressive use of Hindi and 53 employees
 were awarded with prizes. During the year the Committee of Parliament
 on Official Language conducted the inspection of Official Language at
 BO Mumbai on September 27, 2011 and Bathinda site office on February
 10, 2012. The committee expressed its satisfaction on the
 implementation of official language work.
 
 Awards & Accolades to EIL
 
 During the year EIL was bestowed with several awards and recognitions,
 exemplifying the Company''s relentless pursuit of excellence in all
 areas of its operations.
 
 - SCOPE Award for Excellence and Outstanding Contribution to the
 Public Sector Management 2009-10 under Miniratna Category by SCOPE,
 the apex body of Public Enterprises. The award was presented by Dr.
 Manmohan Singh, the Hon''ble Prime Minister of India on January 31, 2012
 in New Delhi.
 
 - Commendation Certificate of SCOPE Meritorious Award in
 Specialized Fields 2010-11 under the category of Best Practices in
 Human Resource Management. The award was presented by Smt. Pratibha
 Devisingh Patil, the Hon''ble President of India on April 13, 2012 in
 New Delhi.
 
 - Achievement Award for Best Project for Euro IV Upgradation
 Project of Chennai Petroleum Corporation Limited (CPCL) under 4th CIDC
 (Construction Industry Development Council) Vishwakarma Awards. The
 award was presented by Shri Virbhadra Singh, the Hon''ble Union Minister
 of Micro, Small and Medium Enterprises on March 10, 2012 in New Delhi.
 
 - Sarvashreshtha Suraksha Puruskar (Golden Shield) by the
 National Safety Council of India (NSCI) for managing best safety
 standards in LLDPE/HDPE Swing unit (EPCC-3) at IOCL''s Panipat Naphtha
 Cracker Project. The award was presented by Shri Mallikarjun Kharge,
 the Hon''ble Union Minister of Labour & Employment on October 19, 2011
 in New Delhi.
 
 - First Prize from the Institute of Cost and Works Accountants of
 India (ICWA) for excellence in cost management practices for the year
 2010. The award was presented by Dr. M. Veerappa Moily, the Hon''ble
 Union Minister of Corporate Affairs on July 18, 2011 in New Delhi.
 
 - PSE Excellence Award 2011 by the Indian Chamber of Commerce
 (ICC) and Department of Public Enterprises (Govt. of India ) in the
 Mini-Ratna and Others category for R&D, Technology, Development and
 Innovation. The award was presented by Shri Bhaskar Chatterjee, then
 Secretary, DPE on September 19, 2011 in New Delhi.
 
 - Best Project Management Consultant (PMC) Award by GAIL (India) Ltd.
 for commissioning the 500km, 48 dia., Natural Gas Pipeline from
 Vijaipur, Madhya Pradesh to Dadri, Uttar Pradesh besides other
 connectivity lines to NDPL Rithala & PPCL Bawana Power Plants.
 
 - GSBA-Top Rankers Excellence Award to Shri Ram Singh, Director
 (Finance) by Top Rankers'' in the personal category for individuals with
 a track-record of outstanding contribution in the area of Finance. The
 award was presented by Shri Subodh Kant Sahay, the Hon''ble Union
 Minister of Tourism on December 23, 2011 in New Delhi.
 
 - Achievement Award for Outstanding Public Officer to Shri P.K.
 Rastogi, Director (Human Resources) by Construction Industry
 Development Council (CIDC) under 4th CIDC Vishwakarma Awards 2012 on
 March 10, 2012 in New Delhi.
 
 - Bharat Jyoti Award to Shri P. Mahajan. Director (Technical)
 by India International Friendship Society. The award was presented by
 Shri Bhishma Narain Singh, former Governor of Tamil Nadu & Assam and
 Dr. GVG Krishna Murthy, former Election Commissioner on November 11,
 2011 in New Delhi.
 
 - Second Prize for best woman employee in Public Sector Undertakings
 to Ms. Nisha P Guha, DGM (PEM) by SCOPE.  The award was presented by
 Shri Narendra Modi, the Hon''ble Chief Minister of Gujarat on February
 12, 2012 in Ahmedabad, Gujarat.
 
 - Safety Certificate for 48.3 million LTA free man hours at Refinery
 Expansion and Upgradation Project (Ph- III) of Mangalore Refinery and
 Petrochemicals Ltd.
 
 - Safety Certificate for 25 million LTA free man hours at Assam Gas
 Cracker Project of Brahmaputra Cracker and Polymers Ltd.
 
 - Congratulatory Certificate from SONATRACH for 25 million LTA free
 man hours at Rehabilitation & Adaptation Project of Skikda Refinery in
 Algeria.
 
 - Certificate of Appreciation from SONATRACH for 12.5 million LTA
 free man hours at New LNG Train Project at Skikda, Algeria.
 
 - Certificate of Appreciation for 8.5 million LTA free man hours at
 Dahej Petrochemical Project of ONGC Petro- additions Ltd (OPaL).
 
 Subsidiary Companies
 
 Certification Engineers International Ltd. (CEIL)
 
 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 ONGC, VMSS , GSPL, Tecnimont, Petrofac Intl, various State
 Governments and others, Notable among these being :
 
 - ONGC - Certification services for B-Series & N15 & 16 Pipeline
 Projects, B-193 Field Development Project and 3 Clamp-on Project
 
 - VMSS & SMC- TPI for various Infrastructure Projects
 
 - GSPL- TPI for various Pipeline Projects
 
 - Petrofac Intl.-TPI for South Yoloten Gas Field Development Project
 at Korea.
 
 Apart form these, CEIL secured many Third Party Inspection assignments
 from clients like Technip KT Ltd., Fernas Construction, Arcelor Mittal
 Brasil S/A etc.
 
 The Board of Directors of the Company has recommended for the financial
 year 2011-12, a final dividend of Rs 200/-per share (of face value of Rs
 100/- each) in addition to Rs 150/- per share interim dividend already
 paid during the year. With this the total dividend for the year 2011-12
 works out to Rs 350/- per share. Payment of final dividend is, however,
 subject to approval of the shareholders in the Annual General Meeting.
 
 EIL Asia Pacific Sdn. Bhd. (EILAP)
 
 EILAP is a wholly owned subsidiary of EIL incorporated in Malaysia. The
 broad activities of the Company are to provide technical services for
 projects in oil & gas and other industrial sectors.
 
 Conservation of Energy, Technology Absorption, Foreign Exchange
 Earnings and Outgo
 
 As the Company operations do not involve any manufacturing or
 processing activities, the particulars as per the Companies (Disclosure
 of Particulars in the Report of the Board of Directors) Rules, 1988,
 regarding conservation of energy and technology absorption, are not
 applicable. The particulars regarding expenditure and earnings in
 foreign exchange are given in Point no. 2.26 of the Notes to Accounts.
 
 Corporate Governance
 
 The Company is committed to good Corporate Governance as per the
 requirements of Clause 49 of the Listing Agreement and DPE Guidelines
 on Corporate Governance. The Board of Directors supports 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 Clause 49 of the Listing Agreement 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 Management''s Reply on the comments of
 Auditors is annexed.
 
 Code of Conduct
 
 EIL has formulated a Code of Conduct for its 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.
 
 Right to Information
 
 EIL, a Company incorporated under the Companies Act, 1956 is a reputed
 public sector undertaking wherein Government of India is a major
 shareholder. Under the provisions of section 4 of the Right to
 Information Act, 2005 every public authority is required to display
 necessary information to citizens to secure access to information under
 the control of public authority in order to promote transparency and
 accountability in its working and functioning.
 
 EIL, being a responsible public sector undertaking, has displayed
 essential information on its website under the head RTI. The management
 has notified CPIO and the First Appellate Authority (FAA) in compliance
 with the requirements of the RTI Act. During the year 2011-12, a total
 of 168 queries had been received by the Company and all of them were
 replied to/answered adequately. Apart from RTI applications, the
 Company also received 24 appeals against the decision of CPIO, which
 too were duly attended to and appropriately disposed off by the FAA. In
 15 of such appeals, additional information/clarification was furnished
 to the RTI appellants. It is heartening to note that not a single
 matter was challenged before the Central Information Commission.
 
 Directors'' Responsibility Statement
 
 Pursuant to Section 217(2AA) of the Companies Act, the Directors
 confirm:
 
 i that in the preparation of the annual accounts, the applicable
 accounting standards have been followed and that no material departures
 have been made from the same
 
 ii.  that they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year and of the profit or loss
 of the Company for that period
 
 iii. that they have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities
 
 iv.  that they have prepared the annual accounts on a going concern
 basis
 
 Auditors
 
 M/s M. Verma & Associates, Chartered Accountants were appointed as
 Auditors of the Company for the financial year 2011-12 by the Office of
 Comptroller & Auditor General of India.
 
 Bankers
 
 Bankers of the Company include Indian Overseas Bank, State Bank of
 India, State Bank of Travancore, 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 and Axis Bank.
 
 Particulars of Employees
 
 Information with respect to employees as required by Section 217(2A) of
 Companies Act, 1965 read with Companies (Particulars of Employees)
 Rules, 1975, as amended is given as Annexure to this Report.
 
 Directors
 
 After the date of last Directors'' Report i.e. 29.07.2011, Shri B.N.
 Bankapur ceased to be the Director of the Company due to his retirement
 from M/s IOCL on attaining the age of superannuation on 31.08.2011.
 
 Shri G.D. Goyal, Director (Commercial) ceased to be the Director of the
 Company due to his retirement on attaining the age of superannuation on
 30.06.2012.
 
 Shri Sanjay Gupta was appointed as Additional Director in the capacity
 of Director (Commercial) with effect from 1.07.2012.
 
 Shri Bijoy Chatterjee, Dr. R.K. Shevgaonkar and Dr. J.P. Gupta were
 appointed as Non-official part-time (Independent) Directors vide
 Ministry of Petroleum & Natural Gas, Government of India letter dated
 4.07.2012 and accordingly they were inducted on the Board of the
 Company as Additional Directors [Non-official part-time (Independent)]
 w.e.f. 4.07.2012.
 
 The Board placed on record its sincere appreciation for the valuable
 services rendered and contributions made by Shri B.N. Bankapur,
 Director and Shri G.D. Goyal, Director (Commercial) of the Company.
 
 In accordance with the provisions of the Articles of Association of the
 Company, Shri U.N. Bose, Director, Dr. Avinash Chandra, Director, Shri
 A.K. Purwar, Director and Shri P. Mahajan, Director would retire by
 rotation, at the ensuing Annual General Meeting, and being eligible,
 offer themselves for reappointment.
 
 In accordance with the provisions of the Companies Act, 1956, Shri
 Sanjay Gupta, Shri Bijoy Chatterjee, Dr. R.K. Shevgaonkar and Dr. J.P.
 Gupta who were appointed as Additional Directors after the date of last
 Directors'' report, shall vacate their offices at the ensuing Annual
 General Meeting. Necessary notices have been received from the
 Members/Directors of the Company under Section 257 of the Companies
 Act, 1956, proposing their candidature for appointment. The Board
 recommends their appointment.
 
 Brief resume of the Directors seeking appointment/ reappointment
 together with the nature of their expertise in specific functional
 areas, names of companies in which they hold directorships and the
 membership of Committees of the Board and Shareholding of non-executive
 directors as stipulated under Clause 49 of the Listing Agreement and
 DPE Guidelines on Corporate Governance are given in the Annexure to
 Notice of 47th Annual General Meeting.
 
 Acknowledgement
 
 Your 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. Your 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.
 
 Your Directors thank all our esteemed clients for the faith and trust
 reposed in the Company. With continuous learning, skill upgradation,
 technology development, we will continue to provide world class
 professionalism and services to our clients.
 
 Your 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.
 
 Your 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
 
                                                           A.K. Purwaha
 
                                           Chairman & Managing Director
 
 Place : New Delhi
 
 Date : July 16, 2012