The Shareholders
 
 The Directors have great pleasure in presenting the 46th Annual Report
 together with audited accounts of the Company for the year ended March
 31, 2011 along with Audited Statement of Accounts, the Auditors'' Report
 and Review of the Accounts by the Comptroller and Auditor General of
 India.
 
 2010-11 in Retrospect
 
 EIL continued its good performance during the year 2010-11. The salient
 features are as follows:
 
 Turnover                   : Rs. 282328 lakhs
 
 Profit Before Tax (PBT)   : Rs. 78453 lakhs
 
 Profit After Tax (PAT)    : Rs. 52251 lakhs
 
 Turnover from core consultancy business increased y-o-y by 7 % to Rs.
 112794 lakhs. LSTK business increased y-o-y by 81 % to Rs.169534 lakhs.
 
 Dividend
 
 The Board of Directors of the Company has recommended for the financial
 year 2010-11, a final dividend of Rs. 4/- per share (of face value of Rs.
 5/- each) in addition to Rs. 1/- per share interim dividend already paid
 during the year. With this, the total dividend for the financial year
 2010-11 works out to Rs. 5/- per share. Payment of final dividend is,
 however, subject to approval of the shareholders in the Annual General
 Meeting.
 
 Investor Relations
 
 Company is committed to continually improve its Corporate Governance
 Practices for effectively managing its businesses and for protecting
 the interests of all stakeholders. Our management is responsive for
 ensuring that the performance of the Company is adequately reported to
 its shareholders, investment community, relevant regulators and
 concerned public on a regular basis.
 
 An Investor Relations (IR) Cell has been constituted under Director
 (Finance), as a nodal intermediary with investment community for
 disseminating information on Company in timely, accurate and consistent
 manner. IR Cell is responsible for creative effective channels of
 communication in form of press, website, conference, road-show and
 analyst meets for periodically disseminating company information such
 as financial results, dividend policy, shareholding pattern,
 investor/analyst reports and presentations and news updates.
 
 Senior Management is actively engaged in annual meets and conferences
 for enabling financial community to understand Company''s business model
 and to share with them business outlook strategic direction and growth
 plans.
 
 Company plans to exploit potentialities of various channels of
 communication for effective business communication and information
 sharing. Online discussion forums, group conferencing, webcasts,
 newletters and tablet computing are being planned.
 
 EIL remains committed to creation of an open and transparent
 environment for reaching out to existing and potential investors and
 other stakeholders.
 
 Management Discussion & Analysis
 
 A separate report on Management Discussion and Analysis is annexed to
 this Report.
 
 Sector wise details of operations of the Company are given below:
 
 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 :
 
 - 6 MMTPA grassroot Bina Refinery of Bharat Oman Refineries Ltd.
 (BORL): All the process units were commissioned during the year. BORL
 is now taking up commercial production. This refinery has full
 conversion hydorcracker unit integrated with diesel hydrotreater. The
 pet coke produced in Delayed Coking Unit (DCU) will be used for power
 generation in the Captive Power Plant (CPP).
 
 - 11.5 MMTPA BPCL-Kochi Refinery''s CEMP-II Project (Capacity Expansion
 & Modernization Project - II) at Kochi : All the process units of this
 project were mechanically completed and commissioned during the year.
 Petroleum products meeting Euro III & IV specifications are being
 dispatched to consumers from the Kochi Refinery. Completion of this
 project was indeed challenging, given the geographic constraints and
 long spell of one of the highest rainfalls in the country.
 
 - Euro-IV Project of CPCL : The project comprising of NHT-Isom and DHDT
 Units executed on LSTK-OBE mode was commissioned during the year.
 
 - For the implementation of Euro III & Euro -IV fuel compliance in
 north-east Assam, EIL was engaged for upgradation of Refinery of IOCL
 at Bangoigaon and by NRL for their Numaligarh Refinery for the
 following units :
 
 - 1.2 MMTPA Diesel Hydrotreater Project (DHDT) of IOCL- Bongaigaon
 Refinery was completed during the year.  For DHDT Unit, EIL-IOCL,
 indigenously developed technology was used and for the HGU, Sulphur
 Block (SRU, SWS & ARU) and associated Utilities & Offsites, EIL''s
 indigenously developed technology was used.
 
 - Diesel Quality Upgradation Project (DQUP) of NRL : The project was
 completed within a shut-down period of 50 days and this could be
 achieved by adopting meticulous planning of material and resources
 available at site.
 
 - Panipat Refinery Additional Expansion Project (PRAEP) : EIL has
 successfully executed, a mega revamp project of IOCL''s Panipat Refinery
 raising the refining capacity from 12 MMTPA to 15 MMTPA. The mega
 shutdown was executed concurrently in Crude and Vacuum units,
 Hydrocracker, Delayed Coking Unit and Amine Regeneration unit with zero
 lost time incident and involving huge quantity of existing piping and
 equipment replaced with new facilities.
 
 - CDU/VDU-III and NHT/CCR Revamp projects of Chennai Refinery of CPCL
 were completed and are under full commercial production.
 
 - FCC Project at HPCL''s Mumbai Refinery was mechanically completed in
 December, 2010, and fully commissioned thereafter.
 
 - 9 MMTPA grassroot Guru Gobind Refinery Project of HPCL - Mittal
 Energy Limited at Bathinda has made steady progress and 96.4% of
 physical progress has been achieved as on 31.03.2011. The facilities at
 SPM ( Onshore & Offshore) for receiving crude from tankers and crude
 oil terminal for storage and onward pumping to refinery through 1014 km
 of 30 / 28 pipeline have been mechanically completed / tested with
 water and are ready for crude-in upto COT facilities. All the major
 equipments have been delivered and installed in position at Bathinda
 site. CDU / VDU, the mother unit has been mechanically completed. The
 balance work on all other downstream process units is progressing in
 full swing and the units are being mechanically completed progressively
 enabling commissioning of the entire complex by the third quarter of
 2011-12.  - Mangalore Refinery Ph-III Project of MRPL involves capacity
 expansion from 12 MMTPA to 15 MMTPA with product quality improvement to
 Euro-IV specifications. The entire project is being implemented on
 hybrid mode of execution including LSTK/OBE/conventional system. The
 project activities are in full swing with LSTK/ OBE & EPCM contractors
 having fully mobilized for all the units and Utilities & Offsites.
 Engineering and procurement activities are nearly complete.
 Construction activities of the project are at the peak despite the
 obstacles posed by inclement weather during the monsoon spread over 5-6
 months period.
 
 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 Fluidised Catalyte 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
 445,000 TPA of Polymer Grade Propylene. The challenge in this project
 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.  SRU Block is also
 being implemented on OBE convertible to LSTK mode. Engineering and
 procurement activities are nearing completion and construction is in
 full swing for the SRU Block.
 
 MRPL also awarded the Polypropylene Unit (PPU) to EIL on OBE
 convertible to LSTK mode of implementation. Detailed engineering and
 procurement activities are in the 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 at site.
 
 Engineering, procurement and construction are in advanced stages for
 the Wet Air Oxidation (WAO) Unit at MRPL Phase-III, awarded to EIL on
 LSTK basis. This is the first WAO unit where EIL is the licensor.
 
 - 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.
 
 - Engineering and procurement activities for CDU/VDU-II Revamp of CPCL
 are progressing well.
 
 - EIL is also offering PMC Services for New Coke Chambers & Allied
 Modernization Facilities at Guwahati Refinery of IOCL.
 
 Turnover from consultancy and engineering segment increased by 7 % to ?
 112794 lakh.  Lumpsum Turnkey project segment increased by 81 % to?
 169534 lakh.
 
 A number of new project assignments were bagged by EIL during the year
 2010-11 and work has commenced on all these projects, These include :
 
 - DFR for grassroot Refinery in Maharashtra for HPCL, Mumbai.
 
 - EIL is also awarded the contract for Project Management Services for
 BPCL-Kochi Refinery for their new Integrated Refinery Expansion Project
 (IREP) at Kochi. The scope of work includes selection of licensors,
 preparation of detailed feasibility report and site grading. The work
 on this project has commenced.
 
 - EPCM services contract for Wax Project of NRL was awarded to EIL
 during the year. The project involves setting up of Wax Plant,
 consisting of Solvent De-oiling Unit (Licensor: EIL along with IIP) and
 Wax Hydro Finishing Unit (Licensor: Axens, France) and associated
 Utilities and Offsites to produce 50,000 MMTPA of Paraffin Wax
 including 4,500 MMTPA Semi Micro-Crystalline Wax.
 
 In addition number of new project studies were taken up during the
 year. Many of our major project assignments originate from these
 studies.  This is a sign of confidence that our customers repose in our
 Company''s technological expertise, particularly our ability to provide
 complete range of services from concept to commissioning.
 
 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 grassroot Petrochemical project being executed on
 conventional mode at Lepetkata near Dibrugarh has made significant
 progress during the year.  Procurement for critical equipment & award
 of major construction contracts has been completed. Engineering is in
 advanced stage. Once completed, this complex will produce HDPE/ LLDPE
 and 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. Significant progress has been
 achieved in award of LSTK packages for various downstream units,
 Utilities & Offsites. The Project consists of 11,000 KTA Dual Feed
 Ethylene Cracker, HDPE, LLDPE, PP Units and associated Utilities and
 Offsites.
 
 - EIL has been awarded the prestigious, fast track, GAIL Petrochemical
 Complex - II Project during the year.  The 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, apparently 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 is also completed. Utilities &
 Offsites facilities have been sized and infrastructure works are
 proceeding in full swing at both sites. Advance action has been taken
 for procurement of long lead items like compressors, steam generation
 package, columns etc.
 
 - The Butadiene Extraction Unit (BDEU), IOCL''s Panipat Naphtha Cracker
 Project (PNCP) has been awarded to EIL in Oct 2010 and is being
 executed on EPCM basis. The 138,000 TPA capacity unit has been licensed
 by CB & I Lummus.  Engineering & procurement activities for the project
 are in progress.
 
 Pipelines
 
 EIL has been aggressively working in areas of oil & gas transportation
 and distribution in India and abroad. Following pipeline projects were
 successfully completed and commissioned during the year:
 
 - 48 (largest diameter gas pipeline) x 498 km Vijaipur-Dadri and 36
 /20x 95 km Dadri-Bawana Natural Gas Pipeline of GAIL.The project was
 completed well in time despite the challenges of river crossings at
 Chambal & Yamuna.
 
 - 18 x 257 km Bina-Kota multi product pipeline of BPCL.
 
 - Short connectivity Gas Pipelines from Dadri-Bawana Pipeline to
 Sonepat, Meerut, Agra, Ferozabad for GAIL, NDPL and IOCL Dadri Terminal
 
 
 - 30/24x300 km NGL Pipeline of GASCO, Abu Dhabi.
 
 Following pipeline/ associated projects handling oil & natural gas are
 under execution :
 
 - Two additional Compressor stations at Chainsa (Haryana) and at
 Kailaras (Madhya Pradesh) on Vijaipur-Dadri Pipeline of GAIL.
 
 - 30/28 x 1014 km Mundra-Bathinda Crude Oil Pipeline of HMPL
 
 - 36/30/24/18 x 995 km Dabhol-Bangalore Natural Gas Pipeline of
 GAIL.
 
 - 10 X 26 km 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 &
 Spurline to Chittorgarh for GAIL.
 
 During the year, EIL has been selected for the following new major
 pipeline projects for which work is under progress:
 
 - EIL bagged South Jetty Development Pipeline Project at Paradip for
 loading/unloading of petroleum products and crude oil from IOCL Paradip
 Refienery comprising 21 nos. 4 to 38 pipelines with a total length of
 140 kms. This jetty will handle variety of oil & gas products including
 crude and is first of its kinds in India.
 
 - 46 no. of flow lines of various sizes(3 to 20) totalling to 240 km
 for NPCC/ADCO, Abu Dhabi
 
 - Health & Integrity Check of City Gas Distribution network of Adani
 Gas in Lucknow City and its integration with Green Gas Limited.
 
 - Detailed Feasibility Report (DFR) for augmentation of Jamnagar -
 Loni, LPG Pipeline of GAIL. The Jamnagar Loni pipeline is one of the
 longest LPG Pipelines in the world .
 
 - 12 x 100 km Hazira-Dahej Naphtha Pipeline for ONGC.
 
 In addition, EIL intends to diversify into City Gas Distribution on
 owner/ operator mode and bid for various cities as equity partner for
 new pipeline projects currently under bidding for PNGRB.
 
 Offshore Oil & Gas
 
 During the year, EIL continued to provide PMC services to GSPC for the
 following projects for their Offshore Block.
 
 - Wellhead Platform
 
 - Process -cum-Living Quarters Platform
 
 EIL is executing SPM and Associated Facilities Project of MRPL at
 Mallavaram (A.P.) on open book estimate basis. After installation of
 these facilities, MRPL shall be able to import crude by VLCC Tankers
 upto 300000 DWT capacity resulting in cost savings.
 
 EIL is also providing pre-award services to ONGC for WO-16 Cluster,
 Cluster-7, BHE and associated sub-sea pipelines projects.
 
 EIL has received work orders for providing post-award services of WIN
 Revamp project of ONGC and crude handling facilities for IOCL at
 Paradip. The crude handling facility shall meet the requirements of
 Paradip Refinery including other eastern refineries of IOCL.
 
 EIL is also entering into cooperation agreements with multinational
 companies having expertise in deep water engineering.  This is viewed
 as an emerging sector 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 - LSTK mode consists of
 two trains of 100 MMSFD each with GDU, GSU, CSU and Sulphur Recovery
 Unit and associated Utilities & Offsites. The process package has been
 finalized and engineering procurement are in progress.
 
 EIL is also providing PMC services for additional gas processing
 facilities for ONGC at Hazira.
 
 Strategic Storages
 
 In view of rapid economic growth and increasing energy demand, the
 issue of energy security has assumed importance. The country''s high
 dependence on import for its oil and gas needs, Government of India has
 decided to accord high priority to securing India''s energy security
 objectives; and is constructing a buffer for reserve supply of crude
 oil to deal with any disruption in the supply chain.
 
 Under Phase-I of the crude oil strategic storage programme, Government
 of India is developing 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 and
 mechanical completion is expected to be achieved by October 2011.
 
 Under Phase-II of the crude oil strategic storage programme, EIL
 prepared the pre-feasibility report for storage of crude oil and
 petroleum products in underground rock caverns, in-ground concrete
 tanks and salt caverns. Subsequently, EIL has, on advice of Indian
 Strategic Petroleum Reserves Ltd., submitted a
 
 proposal for preparation of detailed feasibility report for such
 storages, at four locations. EIL expects to be awarded the project
 shortly.
 
 EIL is striving to attain design capability in such areas of
 underground storage. Having engaged and gained expertise from foreign
 back-up consultants 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 executed by EIL.
 
 Metallurgy
 
 The Metallurgy Division of EIL continued to excel during the year, far
 exceeding the client''s expectations. The following major projects were
 implemented/ and are in various stages of implementation :
 
 - The Second Phase Expansion of NALCO Aluminium Smelter (from 345,000
 TPA to 460,000 TPA) at Angul, Orissa has been completed.
 
 - The Second Phase Expansion of NALCO Alumina Refinery at Damanjodi,
 Orissa (from 1.575 MMTPA to 2.1 MMTPA) Bauxite Mines at Panchpatmali
 (from 4.8 MMTPA to 6.3 MMTPA) are under execution.
 
 - Fourth Stream Upgradation Project (from 0.525 MMTPA to 0.7 MMTPA) of
 Alumina Refinery at Damanjodi of NALCO is under execution.
 
 - Engineering services are being provided for Mahan Aluminium Smelter
 (capacity 360,000 TPA) of HIL (Hindalco Industries Ltd), at Singrauli,
 M.P. and for Aditya Aluminium Smelter Project (capacity 360,000 TPA) of
 HIL at Lapanga, Orissa. Engineering for these projects is in advanced
 stages.
 
 Infrastructure
 
 The Infrastructure Division of EIL is providing Project Management
 services, Third Party Inspection services, Quality Assurance services,
 as Independent Engineers services and working also on Deposit
 Concept for various clients.
 
 The clients include State Trading Corp, Indian National Science
 Academy, Petroleum Conservation Research Association, Apparel Export
 Promotion Council of India, Indira Gandhi National Open University, Oil
 India Limited, Indraprastha Gas Limited, Defence Research Development
 Organization, Nationazl Highways Authority of India, Airports Authority
 of India, Sardar Sarovar Narmada Nigam Limited, Delhi Jal Board, Delhi
 University, New Delhi Municipal Corporation and Housing & Urban
 Development Corporation.
 
 The projects like Extension Campus of IIT Roorkee at Greater NOIDA,
 Development of Rugby Stadium for Commonwealth Games 2010 at Delhi
 University & OIDB Bhawan for Oil India Development Board (OIDB) were
 completed during the year.
 
 During the year, EIL was awarded PMC services for Development of
 Regional Biotech Centre at Faridabad for National Institute of
 Immunology and Data Centers for Unique Identification Authority of
 India at Delhi/ Bengaluru were secured. Also TPI works for Indo-China
 Border Road works has been secured from Ministry of Home Affairs.
 
 The current financial year witnessed commencement of the assignment for
 development of campus for Rajiv Gandhi Institute of Petroleum
 Technology at Sibsagar, Assam.
 
 Efforts are on to venture into EPC/ PPP projects in different sectors,
 especially the water sector. A special Water Initiative has been taken
 forward by the department to secure major jobs in the water sector in
 the country. Also efforts are on for gaining consultancy services for
 infrastructure projects in the areas of Urban Development, Intelligent
 and Green buildings, Highways and Airports, Solid Waste Management etc.
 
 EIL''s Business Growth Initiatives
 
 EIL has diversification plans for the following strategic areas :
 
 Fertilizers
 
 Under the business growth initiatives pursued by the Company, EIL
 targeted ''Gas based fertilizer plants'' as one of the growth areas for
 exploring new business opportunities. To secure new jobs, EIL made
 continual efforts which culminated into award of an EPCM services
 contract from M/s Jaiprakash Associates Ltd, New Delhi for their
 fertilizer units at Panki, Kanpur. The new units of Ammonia (2200MTPD)
 and Urea (2x1925MTPD) along with associated Utilities/Offsites shall be
 completed within a schedule of 33 months. The basic process design
 package shall be provided by M/s KBR, USA for Ammonia and M/S TOYO,
 Japan, for Urea. EIL''s scope shall consist of residual process
 engineering, detailed engineering for all Utilities and Offsites with
 overall project management services.
 
 Water and Waste Management
 
 In this sector, EIL intends to focus on water desalination and
 treatment projects, urban water distribution projects, waste water
 collection and treatment, waste water disposal; and residue disposal
 projects. EIL will continue to target engineering consultancy and PMC
 opportunities as well as EPC projects. A major project of Laying of
 Interceptor Sewerage System along Najafgarh, supplementary & Shahdara
 Drains for Delhi Jal Board (DJB) is under execution.
 
 City Gas Distribution
 
 This sector is another sector which has a high growth potential.  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. EIL intends to pursue strategic city
 gas distribution projects through equity investments to own and operate
 such networks. Memorandum of Understanding (MoU) has been signed with
 GSPC in this area.
 
 Power
 
 Power Division has been created during the last quarter of 2010 with a
 vision to diversify in the power sector and benefit from the
 considerable opportunities in Nuclear, Thermal, Solar and other renewal
 energy projects. The decision to diversify has been taken considering
 an estimated investment of the order of Rs.12.9 lakh crores in the
 electricity sector in the next five years.
 
 - Nuclear
 
 With a view to expand its operations in the Nuclear Sector, EIL has
 signed a Memorandum of Cooperation (MOC) with Nuclear Power Corporation
 of India Ltd. (NPCIL). Under this agreement, EIL shall carryout the
 engineering, procurement, construction and project management for
 nuclear and balance of plant areas of nuclear power plants.  EIL has
 also been selected by NPCIL for carrying out Environment Impact
 Assessment (EIP) for their upcoming nuclear power project in Gujarat.
 EIL has also signed a Memorandum of Association with ITER, India,
 against which EIL is providing engineering services for cooling water
 and heat removal systems.
 
 - Captive 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 tender preparation and evaluation for CPP for Kribhco.
 
 - Renewable Energy
 
 As a part of its efforts to enter into renewable energy sector, EIL
 participated in the first phase of the National Solar Mission to bid
 for a 5 MW Solar Photovoltaic Power Project along with GAIL PMC
 services were also provided to GAIL for their bid for a 50 MW Solar
 Thermal Project. EIL intends to aggressively pursue solar thermal
 projects which offer synergy with EIL''s capabilities.
 
 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.
 
 - Euro-IV Project of CPCL comprising of NHT-Isom unit and DHDT unit
 being executed on LSTK-OBE mode was commissioned during the year.
 
 - Significant progress was achieved on three OBE convertible to LSTK
 packages, namely PFCC, SRU Block and PP of MRPL Refinery Expansion
 Phase III Project.
 
 - Wet Air Oxidation (WAO) package of MRPL Phase -III Refinery Expansion
 Project is being executed as LSTK package by EIL.
 
 - SPM and associated facilities project of MRPL Phase-III project is
 being executed on OBE mode.
 
 - Basic Engineering was completed and other project activities are in
 progress for the On-shore Gas Terminal Project of GSFC at Kakinada, A
 P.  This is being executed on OBE mode.
 
 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.
 
 Assignments completed during the year include:
 
 - Replacement of NGL Pipelines Network Project, for M/s GASCO, Abu
 Dhabi
 
 - Olefins Conversion Unit (OCU) and Polypropylene Unit (PPU) of Abu
 Dhabi Polymer Company Ltd. (Borough) of Ruwais, Abu Dhabi
 
 Work progressed well on the following jobs during the year:
 
 - Design & detailed engineering services to NPCC for Qusahwira Field
 Development 1.8 MM BOPD Project of ADCO for Abu Dhabi.
 
 Abu Dabhi Company for Onshore Oil Operation (ADCO) has awarded
 Qusahwira Project to National Petroleum Construction Company (NPCC),
 Abu Dhabi on EPC basis.  NPCC, in turn have awarded detailed
 engineering services to EIL. Qusahwira Project (Phase-1) mainly
 consists of 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. EIL was qualified
 as an engineering consultant under stiff international evaluation and
 competition. EIL shall also provide field engineering support,
 commissioning support and inspection & expediting support to NPCC on
 call-basis (reimbursement basis).
 
 - Replacement of GUP Hydrophor Fire Water System Pumps at Ruwais
 Refinery of Abu Dhabi Oil Co., Abu Dhabi.
 
 - 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 Bahrain National Gas Company, Bahrain.
 
 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
 
 New major assignments secured by EIL during the year include:
 
 - Pre-bid engineering services for Inter Refinery Pipeline-II (IRP-II)
 - Project of TAKREER, UAE of M/s National Petroleum Construction
 Company (NPCC), Abu Dhabi
 
 - Engineering services for assess & select for Heat Exchanger Study -
 ZWSC/ GGII for M/s Abu Dhabi Marine Operating Company (ADMA-OPCO), Abu
 Dhabi
 
 - Pre-bid engineering services for Hasbah-Arabiyah Field Development
 Project of Saudi Aramco for M/s National Petroleum Construction Company
 (NPCC), Abu Dhabi
 
 - Design and Engineering services for Water Injection Plant and
 Cathodic Protection System for Pipelines for M/s Petro Venezolana S.A,
 El Tigre, Venezuela
 
 - Engineering services to M/s BAPCO, Bahrain
 
 - Design and detailed engineering services to M/s Bahrain National Gas
 Company, Bahrain
 
 - Feasibility study & FEED for revamp of Effluent & Drainage Facilities
 at Sabhan & Ahmadi Depots for KNPC, Kuwait
 
 - Licensor selection for Sohar Refinery expansion Project for ORPC Oman
 
 - Consultancy Services for pre-project works in respect of DUQM
 Refinery and Petrochemicals Complex for Oman Oil Company (OOC), Oman.
 
 Engineering
 
 In the course of providing basic and detailed engineering services for
 our ongoing projects, Engineering Division of EIL continues its pursuit
 of excellence. All work processes in Engineering are fully computerized
 and workflows of different departments are seamlessly integrated.
 Engineering teams working at all our regional offices are also
 integrated and follows same mode. Some of the major independent
 assignments undertaken by Engineering Division during the year include:
 
 - Procurement engineering for 34 MW Gas Turbine Driven Pipeline
 Compressors for GAIL Projects.
 
 - Review of procurement engineering for 65 MW Steam Turbine Driven
 Cracked Gas Compressor and 35 MW Refrigerant Compressors for OPaL
 Project.  These are the largest machines of its kind undertaken by EIL.
 
 - Engineering, supply and installation of one the World''s largest P. P.
 Extruders for MRPL.
 
 - Design, engineering and review of Tall Towers of maximum weight 1450
 MT, 11072 mm dia and 124650 mm height executed by Climbing Jack Method
 for OPaL Project.
 
 - Design, engineering and installation of VGO, HDS reactor of alloy
 steel construction of maximum weight 780 MT, 4485 mm dia and 37885 mm
 height erected by Strand Jack Method at BPCL, Kochi Refinery Project.
 
 - Procurement engineering for 2.5 MW Diesel Engine driven pump
 packages, the largest of it''s kind ever engineered & procured by EIL
 for SPM of MRPL Project.
 
 - Conceptual design & review of special Duplex SS cavern pumps for
 crude service & seepage water service for approx. 90m depth underground
 rock caverns, first time by EIL.
 
 - Engineering, layout and composite analysis involving very high pipe
 sizes for PFCC unit of MRPL including a maximum size of 127 for the
 first time.
 
 - Engineering for 220 kV, 180 MVA regulating & rectifier transformers
 for Hindalco''s Aditya & Mahan Aluminum Smelter projects.
 
 - Engineering for 360 MW CPP involving Frame-9, 118 MW GTGs, 30 MW STGs
 and 66kV Double bus Gas Insulated Switchgear for bulk power
 distribution for IOCL Paradip Refinery Project.
 
 - Engineering for 66 kv in plant Power distribution involving 66 kv GIS
 & 66 kv Cables for OPaL, Dahej Project.
 
 - Implementation of state-of-the-art Wireless TETRA (Terrestrial
 Trunked Radio) based mobile communication for voice and short date
 services and emergency services like Public Address/General Alarm
 (PAGA) system in Guru Gobind singh Refinery of HMEL.
 
 - Implementation of state-of-the-art Wireless based Process Plant
 Perimeter surveillance system in BCPL Dibrugarh.
 
 - Implementation of High Integrity Pressure Protection System(HIPPS)
 for Downstream Pressure Protection at 15000psi for GSPC well head
 platform
 
 - Implementation of state-of-the-art sand measurement and alarm system
 at 15000psi pressures at Well head platform of GSPC, first time in
 India.
 
 - Set-up of FGL and finalization of earthwork quantities involved in a
 project through 3D modeling implemented by the Company for the first
 time.
 
 - Development activity related to upheaval buckling of pipeline has
 been carried out.
 
 - Based on the requirement of Nuclear Industry, capability has been
 developed in generation of floor response spectra from the site
 specific seismic spectra.
 
 - Standardization of mounded bullets based on code PD 5500 has been
 done for various lengths upto 90 meters.
 
 - Adopting and implementing green building design concepts (to achieve
 minimum 3 star rating of GRIHA) for Administration Buildings at GAIL''s
 Compressor Station complexes at Kailaras (MP) and Chainsa (Haryana) to
 comply with directive from the Ministry of New & Renewable Energy
 (MNRE).
 
 - Innovative and aesthetically pleasing architectural design (including
 complete interior works) of Control Rooms (at MRPL and GSPC)
 
 - Implementation of web based electronic Document Management System
 (eDMS) for document archiving, transfer and structured Knowledge
 Management(KM).
 
 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 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 29th successive year.
 
 The 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.  This Division also supports man-hour
 control and manpower planning activities of the Company.
 
 Construction
 
 Construction Division of EIL continued to provide Construction
 Management services for various clients at 47 domestic diverse project
 locations and 3 overseas locations. The Division offers services for
 total construction management including contract administration,
 construction quality surveillance, feedback analysis, HSE and warehouse
 management for various projects of EIL.
 
 Current major commitments for the Division involve grassroot refinery
 at Bathinda for HMEL, MRPL Phase-III project involving four OBE-LSTK
 contracts and other PMC/ EPCM facilities, Petrochemical complexes at
 Dahej and Lepetkata, Strategic Storages at three locations and Pipeline
 Projects etc.
 
 The highly skilled and totally motivated EIL construction team has been
 instrumental in establishing & monitoring adherence of construction
 Quality Management System comprising of quality plans, test plans,
 including record keeping, 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.
 
 Company has clocked 80 million Lost Time Accident Free (LTA- Free) man
 hours at PNCP, Panipat which is a unique achievement.
 
 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:
 
 - Configuration study for expansion of existing CPCL Refinery.
 
 - Configuration study for expansion of existing BPCL-Kochi Refinery.
 
 - Configuration study for expansion of HPCL Visakh Refinery.
 
 - Pre-Feasibility report for low cost expansion of BORL Refinery.
 
 - Configuration study for a grassroot refinery in Maharashtra for HPCL.
 
 - Basic Engineering Package for grassroot Solvent Deoiling unit for NRL
 (Numaligarh Refinery Limited) based on Solvent Deoiling technology
 jointly developed by EIL & IIP.
 
 - Basic Engineering Package for installation of Soaker internals for
 Visbreaker unit of HPCL Visakh based on the technology jointly
 developed by IIP & EIL.
 
 - Basic Engineering Package for a grassroot IndaDept unit for IOCL
 Guwahati based on technology jointly developed by IOCL & EIL R&D.
 
 - Feasibility Report for a grassroot Olefin complex for BPCL, Kochi.
 
 - Licensor selection for the new licensed process units of Sohar
 Refinery of Oman Refineries & Petrochemicals Company (ORPC), Oman.
 
 The Division also continues to provide requisite support in process
 design & development, pre-commissioning and start-up activities to the
 following major projects:
 
 - GGSRL Refinery of HMEL
 
 - New DHT Facilities at BRPL
 
 - Bina Refinery Project of BORL
 
 - Euro-IV Project of CPCL
 
 - Phase-II Expansion Project of KRL
 
 Research & Development (R&D)
 
 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 services.
 Accordingly, the R&D Division of EIL is pursuing developmental
 activities, both in-house and in-collaboration with other R&D
 institutes/organizations like IOCL-R&D, IIP, BPCL (R&D), etc.
 
 - In line with Company''s identification of Clean Coal Technology as a
 thrust area, activities have been initiated for the Coal to Liquid
 (CTL) technology development Project with BPCL (R&D) The project is
 partly funded by Centre for High Technology with a total project budget
 of Rs. 33 crores.  Combiend expenditure (by EIL & BPCL) so far on the
 projects is Rs. 3.31 crore. Micro & bench scale reactors have been
 procured and installed at BPCL. Catalyst synthesis and procurement of
 other facilities are in progress.
 
 - Another project for development of new amine based solvent (i.e. new
 formulation of amine blend) for CO2 removal from natural gas and
 development of simulation software for gas sweetening process has been
 undertaken in association with IIT, Kharagpur. It consists of
 experimental studies like VLE, kinetic data and physicochemical
 property generation will be carried out at IIT for development of new
 solvent. The data generated from experimentation will be used in
 development of simulation model.
 
 - EIL along with IIT Delhi and IOCL (R&D) successfully completed the
 CHT sponsored research project for development of Trickle Bed Reactor
 (TBR) Technology.  Knowledge base developed on various hydrodynamic
 studies has been utilized in the commercial design of 1.2 MMTPA Diesel
 Hydro-desulphurization (DHDS) Unit of IOCL Bongaigaon Refinery and
 20000 TPA Food Grade Hexane Unit of HMEL Bathinda.
 
 - In-house developed ejector design software (DESMIX) has been upgraded
 with graphic user interface (GUI) and efforts are on to upgrade it
 further for reduced energy consumption.
 
 - EIL continued its successful commercialization of CFC technology
 developed along with IOCL-R&D. The LPG units at Bina and CPCL, Chennai
 designed on this technology have been successfully commissioned.
 
 - Two trains of TEG based gas dehydration units with Glycol Contractors
 (V-5420/5460) and Glycol Still (V-5550/5650) at NQG Platform which were
 revamped with EIL developed proprietary structured packings (PARLPAK)
 under NQRC Reconstruction Project of ONGC were commissioned
 successfully.
 
 - CATSOL Technology for acid gas treatment in Sulphur Recovery unit
 (sponsored by DSIR) is under commercialization for GSPC- SRU.
 
 - Utilizing the knowledge base developed over the years, R& D team
 successfully completed the job of setting up laboratory facilities for
 Naphtha Cracker, MEG, HDPE, PP, LLDPE/ HDPE Swing & its Utility
 services of IOCL Petrochemical complex, Panipat. This is the first time
 R&D has provided its services for setting up laboratory facility for a
 commercial plant.
 
 - EIL and IOCL jointly developed INDAdept Technology for Naphtha &
 diesel Desulfurization based on IOCL developed catalyst. IOCL is
 planning to setup a demonstration-cum- commercial unit for INDAdept G
 technology at Guwahati Refinery. A demonstration unit of 39000 MTA
 capacity is being set up at Guwahati Refinery to treat heavy gasoline
 cut of INDMAX (FCC) Naphtha. The sulphur 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 Sulphur. OIDB has in principle agreed to fund a major
 cost of the unit (70 %).
 
 - EIL /IIP have been awarded the job of providing soaker internals for
 existing Visbreaker Unit of HPCL, Visakh. The soaker internal
 capability is joint effort of EIL & IIP & the subject job is going to
 be the first commercial application. The quantitative advantages in
 yield are being worked out currently.
 
 - EIL was also awarded the job of preparing BDEP for the Solvent
 Dewaxing / Deoiling unit by NRL for production of Paraffin &
 Semi-Microcrystalline wax. The process design is first grassroot
 application of EIL/IIP Solvent Dewaxing / Deoiling technology.
 
 - A project to carry out energy conservation study for NRL has been
 undertaken in association with CHT. A multidisciplinary core group for
 conducting energy audit / studies is being constituted. Efforts are
 being made to obtain membership of PCRA (Petroleum Conservation
 Research Association) and BEE (Bureau of Energy Efficiency).
 
 - The Division has filed for two patents based on innovative work done
 during the year. Four patents have been granted for the applications
 filed earlier.
 
 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, On- Shore Terminal, Topsides of
 strategic storages (underground caverns), cross country pipelines etc.
 
 - Safety related studies like Hazards and Operability study (HAZOP),
 Hazard Analysis, Risk Analysis, Safety Integrity Level (SIL), Safety
 Audits, Safety Reviews and Emergency Planning.
 
 - Pre-commissioning & Commissioning of process plants, utilities,
 offsites, terminals, pipelines etc including total responsibility for
 LSTK project and Operating manuals preparation.
 
 The following major assignments were completed/were in progress during
 the year:
 
 - Process design package for Topside facilities for Strategic Storage
 of Crude Oil at Padur for ISPRL.
 
 - Process design package for Feed, intermediate & product storage and
 transfer facilities for OPaL, Dahej.
 
 - Process design of Feed, Intermediate & Product storage and transfer
 facilities for Brahmaputra Cracker and Polymers Ltd.  (BCPL).
 
 - Process Design of off-sites facilities for GAIL Petrochemical II
 project under progress.
 
 - Process Design of Dabhol-Bangalore Pipeline of GAIL, Hazira-Dahej
 Naphtha Pipeline of ONGC, Pipelines network for Qusahwira Field
 Development Project of ADCO -Abu Dhabi, SPM & Pipeline Project of MRPL.
 
 The Division has successfully completed the following major
 commissioning assignments during the year:
 
 - Commissioning of 6.0 MMTPA grassroot Bina Refinery of (BORL).
 
 - Commissioning of various facilities under CEMP Phase-II Project of
 BPCL-Kochi Refinery.
 
 - Commissioning of Revamped FCC of HPCL''s Vizag Refinery and new FCCU
 at HPCL-Mumbai.
 
 - Commissioning of NHT/ISOM Unit of CPCL''s Euro-IV Project (executed on
 LSTK-OBE basis)
 
 - Commissioning of LLDPE/HDPE Swing unit of IOCL-PNCP (EPCC-3) at
 Panipat (executed on LSTK), PRAEP-IOCL
 
 The following pre-commissioning/commissioning activities were under
 progress during the year:
 
 - 9.0 MMTPA grassroot Guru Govind Singh Refinery at Bathinda of HMEL
 using web based pre-commissioning commissioning activities Management
 System (PCAMS).
 
 - DHDT Project of Bongaigaon Refinery of IOCL and DHDT Unit of CPCL
 Euro-IV Project.
 
 The Division continued its efforts in securing new business and secured
 /undertaken following major studies during the year:
 
 - Quantitative Risk Analysis (QRA) for IOCL''s Gujarat Refinery,
 Integrated QRA for ONGC''s C2/C3 plant and PPL''s LNG terminal at Dahej,
 Integrated QRA for entire Panipat complex of IOCL (Refinery /
 Petrochemical/ terminals).
 
 - Rapid Risk Analysis (RRA) for GAIL Pata PC-II, IOCL-Paradip CPP, MRPL
 Phase-III and other pipeline projects.
 
 - HAZOP studies for GSPC''s OGT project, ISPR''s Cavern PPL Project,
 MRPL''s SPM & PPL project, Open-art units of BCPL, Utilities & Offsite
 facilities for OPal & MRPL Phase-III Project.
 
 - HSE studies including HAZID, HAZOPS, SIL, Fire & Safety Analysis etc
 for Qusahwira Field Development Project of ADCO -Abu Dhabi.
 
 The Division has also undertaken development of in-house design
 capabilities for Vapor Recovery System for control of emissions to
 offer environment friendly technologies to our clients in refineries,
 petrochemicals and oil & gas sectors.
 
 In-line with EIL''s growth and diversification strategy, the division
 has taken initiative to offer Operation and Maintenance (O&M) services
 to our clients.
 
 Heat and Mass Transfer
 
 The Heat and Mass Transfer Division of EIL continued to provide
 thermal/hydraulic design for Heat Exchangers, Fired Heater Systems
 including Cast/Glass Air preheaters, Mass Transfer systems and detailed
 engineering for Fired Heaters, Sulphur Recovery Unit Equipment and
 Ejectors etc. for various on-going projects in India and overseas. The
 Division continued to provide specialist services to specific clients
 on need basis.
 
 - Abu Dhabi Marine Operating Company (ADMA OPCO), Abu Dhabi placed an
 order for study of Heat Exchangers consultancy services relating to
 mitigation measures for corrosion.
 
 - The Division acquired internationally recognized software (FRNC 5)
 for fired heater design and rating which will enhance capability of the
 Division in this area. Furnace capacity and efficiency improvement
 services were provided to CPCL for their existing furnaces in the CDU.
 The Division also generated several orders for Air Preheater design
 against international competition.
 
 - The in-house capability and expertise of the Division in the areas of
 oil & gas production were utilized to provide process package for
 process platforms, well head platforms, flow assurance study and design
 of multi-phase pipeline from offshore to onshore and slug catcher,
 separators and gas dehydration unit for various clients such as GSPC
 ,ONGC and NPCC.
 
 Specialist Materials and Maintenance Services (SMMS) The Company
 continued to provide specialist 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 Pata, Refractory Lining Design
 Modification of CDU Heater of CPCL, Chennai, Specialist services for
 Repairing & Certification of Mounded Bullet in GAIL, Usar, Refractory
 Lining Design for CHTU Heaters of MRPL, Ph-III Project.
 
 - Refractory Lining Revamp of Hydrogen Reformer of Chambal Fertilizer &
 Chemicals Ltd., Refractory Lining modification in Duct of Mangalore
 Chemical & Fertilizer Ltd., Review of Insulation in Horton Spheres,
 HOCL Kochi, Refractory Lining Inspection of Hot Oil Heater in Garware
 Polyester Ltd.
 
 - Oil Heater in Garware Polyester 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, GGSRP,
 MRPL, OPal, BCPL, and GSPC.
 
 - SMMS Division has been advising and specifying on the Corrosion
 Monitoring Systems, Inhibitior Injection Systems, Corrosion Protection
 Coatings, Cathodic Protection Systems for On-shore and Off-shore
 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.
 
 Environment Engineering
 
 As EIL forays into the global energy market, it has done so with
 increased sensitivity to global trends in environmental engineering.
 Increasing concern over Global warming propagated the world''s new axiom
 reduce your Carbon footprint.  This has propelled the world to opt
 for stricter environment norms and have opened up new era of
 Environment related businesses.  Taking initiative in this direction,
 the Environment Division of EIL took steps for the implementation of
 clean and green technologies in order to reduce carbon footprint of
 projects. 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 thrive 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 the
 Division.
 
 Some of the major achievements of Environment Division include the
 following:
 
 - EIL has been successfully accredited by Quality Council of India to
 carry out Environment Impact studies in the fields of Refineries,
 Petrochemicals, Oil and Gas Pipelines, Non Ferrous Metallurgy, Township
 and area development project and power plants
 
 - EIL successfully completed Effluent treatment plant study for IOCL,
 Haldia for the improvement in the existing effluent treatment plant.
 The treatment of oily sludge by biological methods and control of
 volatile organic compound have also been incorporated as a part of
 feasibility report.
 
 - Selection of site for Coal to Liquid based plant based on
 environmental, social and economical parameters to achieve Durable
 Development. Site selection also involved calculation of carbon
 footprint for all the sites and a step towards reducing carbon
 emission.
 
 - EIL developed first Volatile Compound Control and treatment system
 which was successfully commissioned at HPCL- Mumbai.
 
 - Provided consultancy services to KNPC, Kuwait for feasibility and
 feed preparation for revamping of effluent drainage and treatment plant
 at Sabhan and Ahmadi Oil Depot.
 
 Information Technology Services (ITS)
 
 Information Technology Services (ITS) division of EIL continued to
 provide IT enabled services. Keeping pace with latest IT trends, some
 of the activities under taken are:
 
 - Upgradation of IT infrastructure: State of the art hardware and
 software in various functional areas have been acquired to meet the
 challenging business requirements. Latest operating systems like
 WINDOWS 2007, Windows 2008 have been rolled out successfully. To
 implement Business Continuity Plans, activities for setting up of EIL''s
 Disaster Recovery Centre (DRC) have been initiated.
 
 - Biometric attendance system has been implemented at HO,
 
 Chennai, Vadodara and Gurgaon.
 
 - All the construction sites have been provided connectivity to EIL
 Corporate network through USB modems for accessing various applications
 available at Head Office through Internet directly.
 
 - Existing software packages are being converted to web based and many
 new web based applications have been developed to ensure that Regional
 offices (ROs)/ Regional procurement offices (RPOs)/ Construction sites/
 Overseas offices are able to access centralized databases and various
 software , available through LAN servers at HO, through EIL''s Corporate
 Network/IP-VPN and over Internet.
 
 - To augment mobile phone based applications, SMS services have been
 implemented to communicate with internal and external users of EIL
 including remote users.
 
 - A comprehensive Web based time sheet system has been deployed
 allowing all the employees across the globe to fill their timesheets
 through internet.
 
 - A project E-mail Repository Management System is implemented with the
 objective of efficient management of e- mails related to projects with
 facilities to give unique e-mail numbering and search options.
 
 - A Management Dashboard is released to provide online single window
 for view of summarized information at corporate and at job level to EIL
 management for better and faster decision making.
 
 Procurement Services
 
 The Procurement Services Division of EIL provides complete supply chain
 management services for various projects handled by EIL. Timely and
 efficient procurement of goods and services is a major factor
 determining success in project execution.  The Division is at the
 fore-front of new technology adoption for improving the efficiency and
 effectiveness of procurement functions.  Almost all procurement
 functions are IT enabled. The Division has implemented e-procurement as
 well as reverse auction for its contracting and purchasing, in addition
 to an integrated in-house ERP application linking all procurement
 functions across all geographical regions.
 
 Public procurement has three vital components, i.e., transparency,
 equity and fairness. EIL is continuously focusing to ensure the same
 whilst simultaneously improving the process efficiency. The confidence
 reposed by EIL''s Clients in our procurement systems is one of the
 factors enabling EIL in securing several OBE (Open Book Execution)
 projects from various Clients.
 
 During the current year, orders for Rs. 2,200 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 Rs. 9,300 crore of
 goods and services were placed for various Clients'' projects.
 
 Procurement Division carried out in-process and pre-despatch
 inspections of complex equipment at Supplier''s works as well at Project
 sites through its Regional Procurement Offices located all over the
 country and overseas offices at London, Milan and Shanghai. Major
 highlights included inspection of Stripper (1120MT), 11 no LPG Bullets
 (each measuring 7 mtr dia x 90 mtr long), CDU/VDU Columns for GGSRL
 Bathinda and 900 KM pipes (size 12-36).
 
 Enlarging data base for capable suppliers has always been the effort of
 the division. Suppliers located worldwide apply through online system
 available 24 X 7 at EIL website. Similarly data base of capable
 Contractors also is maintained. This helps company and its clients in
 sourcing quality products at competitive prices.
 
 The recently set up procurement office in China contributed a lot to
 enhancement of the supplier database through study of the Chinese
 manufacturing industry catering to the oil and gas industry, enlistment
 of capable manufacturers and also offered inspection services to
 Clients across China.
 
 Quality Management System
 
 In EIL, Quality is focused on facilitating and achieving long term
 success of the Company by building and using Quality into our
 workplace, deliverables, services and strengthening the Systems.
 
 The Quality Management System in respect of Company''s services has been
 reassessed as per the requirement of ISO 9001:2008 by the certification
 agency, who conducted the 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 internal Systems Committee consisting of senior
 officials which regularly monitor and analyze the
 systems/processes/data and recommends the improvements in processes,
 products and quality system to reduce costs, shorten cycle times and
 improve visibility and credibility without affecting the environment.
 QMS effectiveness and implementation has been further enhanced by
 computerization of certain processes through in-house developed
 software.
 
 Quality Management System of EIL - UAE (Abu Dhabi) office was also
 independently audited and reassessed for certification by Certifying
 Agency 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 numerous committees for formulating
 products and quality system standards by M/s Bureau of Indian
 Standards.
 
 EIL is constantly trying to position itself to face the challenges of
 economic volatility with Quality as a strategic tool.
 
 Risk Management
 
 The Company has well defined Risk Management policy and comprehensive
 framework to review the risk assessment and its management for
 mitigation. The process is based on pre- identified risks and the risk
 events or factors which require regular assessment and quick response.
 Based on the probability, impact of the risk and cost of controls, the
 risks are prioritized.  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
 requirement.
 
 To further strengthen the ERM process and to identify the gaps a review
 of ERM process was conducted by an external agency appointed by the
 Management during the period under review.  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 propensity of the Company, has enabled the Company to protect
 the shareholders interests .
 
 Vigilance
 
 During the year, vigilance activities such as investigation of
 complaints, inspection of files pertaining to in-house
 contract/purchases, scrutiny of Immovable Property Returns, review of
 Internal Audit Reports, etc. were carried out dedicatedly 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 were reviewed
 during the year. The observations reported by CTE/CVC during the
 intensive examination of works pertaining to EIL were examined and
 necessary actions were taken. System improvements were suggested to the
 Management and the necessary actions were undertaken for improvement.
 
 Structured meetings between CVO, C&MD and Directors were held and the
 MOM were forwarded to CVC and MoP&NG.  Vigilance activities were also
 presented to the Board.
 
 Various vigilance workshops, interactive sessions, seminars, debates
 etc. were also organized in HO, Regional, Branch, Procurement and site
 offices of EIL during the year for spreading vigilance awareness
 amongst the employees of EIL.
 
 Some important features of Vigilance activities are given below:
 
 - Leveraging Technology
 
 EIL has ''First in, First out'' methodology in Bill Watch System.
 E-payment/e-receipt and e-tendering progress are also monitored at
 regular intervals.
 
 - 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.
 
 - Integrity Pact
 
 Implementation of ''Integrity Pact'' has been approved by EIL Directors
 and it is in advanced stage of implementation.
 
 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
 
 People are our prime assets and EIL continued its emphasis towards
 welfare, multi-skilling, upgradation of skills and optimal deployment.
 Skilled manpower in oil & gas sector, especially in core areas like
 process design & development, projects, engineering etc.is in great
 demand globally. To meet the workload of the Company, extensive
 recruitment has been undertaken at the junior and middle-management
 level as well as the ''Management Trainees'' Level.
 
 The Company has a qualified and professional employee base with over
 3,417 employees, including 3,062 technically and professionally
 qualified employees as of March 31, 2011 this includes 372 women
 employees representing 10.9% of total strength. Approximately 2.0% 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. 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. We have
 developed a structured incentive programme, including
 performance-linked variable pay structure for certain level of
 employees. We are dedicated to the development of the expertise and
 know-how for our employees and have commenced a focused leadership
 development programme.
 
 EIL continued its emphasis towards welfare, multi-skilling, up
 gradation of skills/knowledge and optimal deployment of human
 resources.
 
 During the year 2010-11, continued focus was maintained to organise
 Competency based learning interventions for our knowledge workers.  A
 total of 168 training programmes were conducted for developing
 technical, cross functional, managerial-behavioural competencies. Our
 partnership with management institutes to provide structured inputs
 through management development programmes resulted in organization of
 four Management Development Programmes in collaboration with
 International Management Institute, New Delhi for senior executives.
 This also included a programme for senior executives of Construction
 Sites. Moreover, similar management development programme was also
 organized for executives in mid level in collaboration with Lal Bahadur
 Shastri Institute of Management, New Delhi.
 
 Customized competency based programmes like Prarambh, Connect 360,
 Breaking the Mould, Plan Better: Deliver Best, Express to engage,
 Thinking out of the Box, Leadership in Execution, Creating Winning
 Teams etc. were also organized keeping in view the training needs as
 well as emerging business needs.
 
 Two batches of ''Aarohan'' the Leadership Development programme - one for
 ''Business Leaders'' and the other for ''Functional Leaders'' successfully
 completed their 8 months development journey. The programme provided
 participants an opportunity to not only devise their self-learning
 plans but also engage in action-based group projects which were
 valuable for the organization as well.
 
 To provide the new members of the EIL Family - the Management Trainees,
 an opportunity to express, understand and bond, an outbound adventure
 camp was organized wherein the MTs interacted at various levels with
 their Mentors. The activities and interaction during the camp helped in
 strengthening the Mentoring Process and gave the newcomers an insight
 into EIL Culture.
 
 Scheduled Caste & Scheduled Tribes
 
 With a view to accelerate the pace of socio-economic development of the
 nation, EIL has been endeavouring towards safeguarding the interests of
 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 Employee''s Welfare Association by holding periodical meetings
 with the Association.
 
 As on March 31, 2011, 18.2% of total staff strength was from Scheduled
 Castes and 3.3% 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, of 294 personnel joining the
 company 44 belonged to SC/ST (SC-33 ST-11). Reports are being sent to
 MOP&NG/DPE periodically as per the 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. In the coming days, Company intends to
 focus its CSR initiatives keeping the welfare of SC/ST population in
 mind.
 
 Corporate Social Responsibility
 
 During the year 2010-11, Company remained focused towards its social
 obligations and the following projects were taken up:
 
 - Installation of 185 Solar Home Light Systems and 20 Solar Street
 Light Systems in a remote village Rong Bong Tong Tong Toli near
 Numaligarh, Assam.
 
 - Signed MoUs with Directorate of Education for upgradation of the
 facilities of Govt. School located at Sangam Vihar, New Delhi; ARUNIM,
 a statutory body working for the welfare of persons with Autism,
 Cerebral Palsy, Mental Retardation & Multiple Disabilities under
 Ministry of Social Justice & Empowerment for sponsoring machines for
 manufacturing paper bags and Kancheepuram Municipality, Tamil Nadu for
 Construction of Water Treatment Plant using advance Membrane Technology
 for Thirupparkadal Water Supply Improvement Scheme.
 
 - Signed MoU with District Collector of Kakinada, Shri M Ravichandra,
 I.A.S for taking up the construction of additional floors at Government
 General Hospital (GGH), Kakinada, Andhra Pradesh.
 
 - Development of three educational institutions viz. Industrial
 Training Institute, Rameshwar High School and Girl''s High School at
 Barbaruah, Dibrugarh, Assam. The institutions are primarily catering to
 the educational needs of underprivileged population of Dibrugarh. EIL
 provided different facilities like extension of administrative
 building, cycle stand, construction of additional wash room with hand
 tube well, extension of boundary wall, drinking water and foot path.
 
 Official Language
 
 Quarterly meetings of Official Language Implementation Committee (OLIC)
 of EIL and the meetings of different OLICs of
 Regional/Field/Procurement Offices were held regularly in which
 progress in respect of Official Language Policy of the Govt. of India
 particularly in the perspective of Annual Programme issued by M/o Home
 Affairs was reviewed periodically. Provisions of the Section 3(3) of
 the Official Language Act, 1963 and the Official Language Rules, 1976
 have been complied with. All assurances given to Committee of
 Parliament on Official Language have been fulfilled.
 
 Town Official Language Implementation Committee (TOLIC), Delhi honoured
 EIL with the second prize for effective use of Official Language
 Implementation in the Company among Delhi based PSUs. Our RO, Kolkata &
 Kochi office also received the awards by respective TOLICs for their
 extra ordinary efforts in the field of official language
 
 The initiatives taken in the field of IT includes activating Unicode
 facilities in all computers, providing Indic IME support to computers,
 Shrutlekh, Shabdika, Parivartan and other software were made available
 to the employees. Special sessions are provided on this software during
 Hindi Workshops. In pursuance of the Official Language Policy of the
 Government of India, newly joined employees, not knowing Hindi, are
 nominated in
 
 correspondence course of Ministry of Home Affairs. However at the Delhi
 Head Office regular classes are being conducted for such employees.
 More than 98% employees are having working knowledge/proficiency of
 Hindi. 97% stenographers & 98% typists of the Company are trained in
 Hindi stenography and typing respectively. In case of Head Quarter 100%
 target has been achieved in respect of Stenographers & Typists.
 
 EIL Rajbhasha Vibhag conducted inspections of Divisions/ Departments in
 Head office and Regional/Fields/Procurement offices as per the
 Parliamentary requirements and in compliance of annual target for
 Official Language during the year. Five Hindi workshops were organized
 at Headquarter, New Delhi and 7 at Regional/Field/ Procurement offices.
 Three Hindi typing training workshops were also organized at the Head
 Office. Three ''rajbhasha Conferences'' were organized in different part
 of the country-one in Mumbai and another in Vadodara for surrounding
 offices of EIL. A conference was organized under the auspices of TOLIC
 Gurgaon for different Central Govt. offices including Bank, Undertaking
 & Govt. offices.
 
 The Hindi Fortnight was celebrated from 14 - 28 September 2010 in the
 Company. Various competitions were organized to encourage the
 progressive use of Hindi and 47 employees were awarded with prizes.
 
 Awards and Accolades
 
 - ''Star PSU of the year 2010'' award by Business Standard. Shri A K
 Purwaha, C&MD, EIL received the award from Hon''ble Prime Minister of
 India, Dr. Manmohan Singh.
 
 - Life time achievement award to Shri M S Pathak, former C&MD, EIL by
 Hon''ble Prime Minister of India, Dr. Manmohan Singh in recognition of
 his outstanding contribution to Hydrocarbon Industry.
 
 - Project Management Institute (PMI) Award-2010 for Bina Refinery
 Project of Bharat Oman Refineries (BORL).
 
 - Construction Industry Development Council (CIDC) Vishwakarma
 Award-2011 in five categories. In individual category, EIL C&MD Shri A
 K Purwaha was chosen as an Industry Doyen while Director (Commercial)
 Shri G D Goyal was recognized as an Outstanding Public Officer. The
 company was selected in the category of Best Professionally Managed
 Company. It also bagged Best Project Awards in Oil & Gas category for
 its Bina Refinery and Panipat Naphtha Cracker Project.
 
 - Petrofed Award 2010 for Woman Executive in Oil & Gas Industry to Ms.
 Nisha Peeoosh Guha, DGM (PEM) EIL.
 
 - Prestigious Prashansa Patra Award (Level 4) for the year 2009 by
 National Safety Council of India (NSCI) in the construction category
 for Underground Cavern Project at Visakhapatnam - India''s first cavern
 for crude oil storage. This award came in the backdrop of achievement
 of 5 million LTA free man-hours in Underground works.
 
 - Amity Corporate Excellence Award for Best Intellectual Human Resource
 Utilization Practices.
 
 - Public Relations Society of India (PRSI) National Award-2010 for Aap
 Aur Hum-1st prize and Hamara EIL-2nd prize (in Hindi category).
 
 - Certificate of Recognition from IOCL for achieving 80 million LTA
 free man-hours for Panipat Naphtha Cracker Project.
 
 - Certificate of Recognition from MRPL for achieving 30 million safe
 man-hours without lost time accident for Phase-III Refinery Expansion
 Project of MRPL.
 
 - HSE Recognition Certificate from MRPL for achieving safety milestone
 of 15.1 million safe man-hours for their Phase-III Project.
 
 - Appreciation Certificate from HPCL for 7 million LTA Free man-hours
 for Vizag Refinery Project.
 
 - Appreciation Certificate by CPCL for achieving 4 million LTA free
 man-hours for Euro-IV Project at Chennai.
 
 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, Corporation of Chennai, Vadodara Urban Development
 Authority(VUDA), GSPL, various State Governments and others, notable
 among these being :
 
 - TPI for D-1 Development Project of ONGC
 
 - Infrastructure Projects for VUDA
 
 - Various Pipeline Projects and Technical Audit of GSPL
 
 - TPI for construction of SWD and Canals under JnNURM scheme for
 Corporation of Chennai
 
 - TPI of SS plates at various vendor works for The Anup Engineering
 Ltd.
 
 Apart form these, CEIL secured many Third Party Inspection assignments
 from clients like VTVL, Punj Lloyd Ltd, Technip KT Ltd.,Techpro Systems
 Ltd.,etc.
 
 The Board of Directors of the Company has recommended for the financial
 year 2010-11, a final dividend of Rs. 200/-per share (of face value of Rs.
 100/- each) in addition to Rs. 125 per share interim dividend already
 paid during the year. With this the total dividend for the year 2010-11
 works out to Rs. 325/- per share. The final dividend has been approved by
 the shareholders in their Annual General Meeting held on 26th July,
 2011.
 
 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. However, lately
 there have been constraints in operation due to changes in local
 regulations and general down turn in business environment leading to
 paucity of business for the Company during the year.
 
 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 Item No.12 Schedule J Notes to the
 Accounts.
 
 Corporate Governance
 
 As a listed Company, EIL has been complying with the requirements of
 Clause 49 of the Listing Agreement with Stock Exchange where EIL''s
 shares have been listed regarding Corporate Governance and also the
 guidelines issued by the Department of Public Enterprises, Government
 of India in this regard.
 
 Certificate of the Auditors of EIL regarding compliance of the
 conditions of Corporate Governance as stipulated in Clause 49 of the
 Listing Agreement with the Stock Exchanges along with the Management''s
 Reply on the comments of Auditors is enclosed.
 
 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.
 
 A Report on Corporate Governance, as required under Clause 49 of the
 listing agreement, 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.
 
 Director''s 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 Jagdish Chand & Co., Chartered Accountants were appointed as
 Auditors of the Company for the financial year 2010- 11 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, State Bank
 of Hyderabad, Dena Bank, 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 the 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. 12th August, 2010, Shri
 P. Mahajan was appointed as Director (Technical) of the Company w.e.f.
 15.11.2010 and consequently the additional charge of Director
 (Technical) entrusted with Shri A.K. Purwaha, Chairman & Managing
 Director w.e.f. 1.08.2010 on ad-hoc basis was vacated.
 
 Shri R.K. Grover, Director (Projects) ceased to be Director of the
 Company due to retirement on attaining the age of superannuation w.e.f.
 31.01.2011.
 
 Shri Dependra Pathak, Director (Exploration-I), MoP&NG was appointed as
 Government Director on the Board of Company w.e.f. 22.02.2011 by the
 Ministry of Petroleum & Natural Gas.
 
 Shri D. Moudgil was appointed as Director (Projects) of the Company
 w.e.f. 22.03.2011 and consequently the additional charge of Director
 (Projects) entrusted with Shri A.K. Purwaha, Chairman & Managing
 Director w.e.f 1.02.2011 on ad-hoc basis was vacated.
 
 The Board has placed on record its sincere appreciation for the
 valuable services rendered and contributions made by Shri R.K.  Grover,
 Director (Projects) of the Company.
 
 In accordance with the provisions of the Articles of Association of the
 Company, Shri Ram Singh, Director (Finance), Shri P. K. Rastogi,
 Director (HR), Shri Adit Jain, Director and D r. (Prof.) K. D. P.
 Nigam, 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 P.
 Mahajan, Shri Dependra Pathak and Shri D.Moudgil 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, 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 are
 given in the Corporate Governance Report.
 
 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
 
 Place : New Delhi                                       A.K. Purwaha
 
 Dated : July 29, 2011                   Chairman & Managing Director