propelling india’s hydrocarbon sector for five...

ANNUAL REPORT 20

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Propelling India’s Hydrocarbon sector for five decades

A Navratna Company

05 th

Release of EIL’s Golden Jubilee Commemorative Postage Stamp by

Hon’ble Prime Minister of India, Shri Narendra Modi

• Benchmark to learn from superior role models.

• Nurture the essenceof CustomerRelationshipand Bonding.

• Foster Innovation with emphasis on valueaddition.

• Integrity and Trust as fundamental to functioning.

• ThriveuponconstantKnowledgeupdationasaLearningorganization.

• Passion in pursuit of excellence.

• Qualityasawayoflife.

• CollaborationinsynergythroughcrossfunctionalTeamefforts.

• Senseofownershipinwhatwedo.

Core values

• Achieve ‘Customer Delight’ through innovative, cost effective and valueaddedconsultingandEPCservices.

• Tomaximize creation of wealth, valueand satisfaction for stakeholders withhigh standards of business ethics and alignedwithnationalpolicies.

Mission

Tobeaworld-classgloballycompetitiveEPC and Total Solutions ConsultancyOrganization.

Vision

EILiscommittedtoeffectivemanagementofrisksacrosstheorganizationby aligning its risk management strategy to its business objectivesthroughinstitutingariskmanagementstructurefortimelyidentification,assessment,mitigating,monitoringandreportingofrisks.

Riskmanagement at EIL is the responsibility of every employee bothindividuallyaswellascollectively.

Riskmanagement

FOREWORD

“the journey of a thousand miles begins with one step”- Lao Tzu

For all ofusatEngineersIndiaLimited,2015isamilestoneyear:ayearwhenwelookbackwithprideandnostalgiaonthejourneyof50yearsofEngineeringExcellencethatbeganwiththefirststepsonMarch15,1965toprovideindigenousandcompetentengineeringsolutionsacrossthe hydrocarbon value chain to young India. Conferment of ‘Navratna Status’ during the year was the mostgracious acknowledgement and recognition of yourefforts.Itindeedisaglitteringjewelthathasbeenaddedtothegoldencrown.Ourperformanceduringthelastfivedecades speaks volumes of the right decisions taken at righttimewhichweredulysupportedbypurposefulnessand perseverance of every stakeholder of the Company.

Our eventful journey across five decades has seen uskeeppacewiththecountry’sacceleratingmarchtowardsprogressandprosperityandbecomingasignificantpartofthegrowthstoryofHydrocarbon,PetrochemicalandMetallurgy sector in India. In this meaningful journey of fifty years,we have achieved numerousmilestonesthat include designing and engineering of 60 refineryprojects, of which 10 are greenfield refineries, 9petrochemical complexes, 39 oil and gas processingprojects,over40offshoreprocessplatforms,42 pipeline projects,13portsandstorageandterminalprojects,8fertilizerprojectsand29mining&metallurgyprojects.Our endeavours over these years have also resulted in achievingmorethan90%indigenisationinhydrocarbonconsultancyascomparedtoonly5%atthetimeofourinception.

Augmentingouroverseasoperationsistheneedofthehour.Today,andmoresoinfuture,thesustainabilityofEILwilldependlargelyonoverseasprojects.Inadditionto our traditional territories, during the year,wehavestrengthened our operations in Nigeria, Bangladesh,Angola and Indonesia. The reputation, strengths andcapabilities of undertaking challenging engineeringconsultancy and EPC projects that our company hasdeveloped over the period of time will be leveragedto further expand our international operations and toexecutemegainternationalprojects.

While, Hydrocarbonwill continue to remain our focusarea,aspartofourgrowthstrategy,weareselectivelydiversifyinginhighgrowthsectorsofRenewableEnergy,NuclearPower,InfrastructureandFertilizers,wherewecan leverage our strong engineering consultancy and PMCcapabilities.Ourrobustcorporatestrategysteeredbythecorporatevisiontobuild ‘Aworld-classEPCandTotal Solutions ConsultancyOrganization’ continues toinspire our entireworkforce to deliver excellence andtocreateabusinessportfolioforlong-termsustainablegrowth.

Lookingbackatthemomentous50yearsofEngineeringExcellence, company’s strong fundamentals, technicalknow-how,skillsets,welllaidoutsystems&processes,and zeal to excel and above all the unflinchingcommitmentofeachandeverystakeholdertosucceed,inspires us to look forward intothenext50yearswithprideandconfidence!

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• OneofIndia’sleadingEngineeringConsultancyandEPC

companiesinHydrocarbonsandPetrochemicals.

• Fivedecadesofexperienceonlandmarkprojectswithglobal

energy majors.

• SignificanttrackrecordacrossentireOil&Gasvalue

chain.

• Focuseddiversificationintoothersectors:

• FertilizerandLNG

• Non-ferrousmetallurgy

• Infrastructure

• Strategic crude oil storage

• Nuclear and solar energy

• E&P

• Over2800highlyexperiencedprofessionals

andtechnicalworkforce.

• In-houseandcollaborativeR&Dsupport

with16registeredpatents.

• Expandingoverseaspresencein

MENAandSouthEastAsia.

• Zerodebtfirmwithtrackrecord

of healthy earnings and

consistent dividend payout.

WhoWeAre

Tableof Contents

01Foreword

02WhoWeAre

04Chairman’sStatement

07Board ofDirectors

1. Chairman’sStatement 4-6

2. BoardofDirectors 7-9

3. CorporateInformation 10

4. TenYears’PerformanceataGlance 11

5. Notice–50thAnnualGeneralMeeting(AGM) 12-24

6. Directors’ReportalongwithfollowingAnnexures 25-98

- ManagementDiscussion&AnalysisReport 46-49 - ReportonSustainableDevelopment 50-55 - AnnualReportonCSRActivities 56-65 - ReportonCorporateGovernance 66-82 - Auditors’ReportonCorporateGovernance& Management’sReplyonCommentsoftheAuditors 83-84 - SecretarialAuditReport&Management’s ReplytoSecretarialAuditReport 85-88 - ExtractofAnnualReturn(MGT-9) 89-98

7. Auditors’Report 99-103

8. BalanceSheet 104

9. StatementofProfit&Loss 105

10. CashFlowStatement 106-107

11. SignificantAccountingPoliciesandNotestoAccounts 108-138

12. CAGCommentsontheAccountsofEIL 139

13. AnnualReportofCertificationEngineersInternationalLtd. forthefinancialyear2014-15 140-182

14. AnnualReportofEILAsiaPacificSdn.Bhd. fortheyear2014 183-193

15. ConsolidatedAccountswithAuditor’sReport thereonandCAGComments 194-234

16. AttendanceSlip&ProxyForm 235&237

17. RouteMap-Venueof50thAGM 239

Sanjay GuptaChairman&ManagingDirector

Dear Shareholders,

It gives me immense pleasure to report your Company’s performance duringthe50thyearofitsservicetothenation.

As EIL steps out of its Golden Jubilee year, its formidable trackrecord of over five decades of engineering excellence across thehydrocarbonvaluechaincontinuestoinspireitsworkforcetodeliverexcellenceand towork towardsbigger targets foryourCompany’slong-term sustainable growth. The Company that began with aninitialinvestmentof`25lakhs,hasamarketcapofmorethan`7200crores today and has paid back to its stakeholders more than `2000crores in terms of dividend and dividend tax. To commemorate the golden journey of your Company’s glorious achievements a ‘Commemorative Postage Stamp’ and ‘Coffee Table Book’ werereleased by Shri Narendra Modi, the Hon’ble Prime Minister ofIndiaduringUrja Sangam - an international energy summit,whichwasorganized inNewDelhionMarch27,2015undertheaegisofMinistryofPetroleum&NaturalGas.Duringtheyear,yourCompanywasalsoaccordedthecoveted‘Navratna’statusbytheGovernmentof India.

Duringthefinancialyear2014-15,yourCompanyhasregisteredanoperationalturnoverof`1713Crore.Therevenuefromconsultancy&engineeringbusinessandturnkeyprojectsstoodat`948Croreand`765Crore respectively. ProfitAfter Taxduring the yearwas`308Crore.

Chairman’sStatement

On the business front, your Company secured new business of`2305CroreinFY2014-15whichincludes`610Crorefromdomesticconsultancy,`1253Crorefromoverseasconsultancyand`442Crorefrom turnkey segment. Major contribution in our order inflowscontinuestoremainfromHydrocarbonandPetrochemicalbusiness.

In the upstream segment, major assignments secured during theyear were Project Management consultancy for Mangala Phase-2EOR Project and FEED for Bhagyam Polymer EOR Project of CairnIndia Limited.

In the midstream segment, your Company secured ProjectManagement Consultancy Services for Assessment of Health/Integrity of GAIL’s Pipeline System & PMC Services for KG BasinPipelines Restoration Works and EPCM Services for re-routing ofMumbai-ManmadPipelineforBPCLtonameafew.

Indownstreamrefining&petrochemicalsegment,majorconsultingorderssecuredbyyourCompanywereDHDTUnitofBPCLMumbai;ConsultancyservicesforIOCL’sDelayedCokerUnit&alliedfacilitiesunderDistillateYieldImprovementProjectatHaldia;ConversionofCatalyticReformerUnit into IsomerizationUnitandProcessDesign&EPCMConsultancyServicesforTailGasTreatmentUnit(TGTU)atMumbaiRefineryofBPCL.YourCompanyfurtheraugmenteditsforayintotheLNGsectorwiththeawardofFEEDforLNGTerminalinGirSomnath,GujaratforHPCLShapoorjiEnergyLimited(HSEL).

In the Infrastructure field, your Company was awarded projectsfromIndianRareEarthsLimited(IREL),OdishaforSiterelatedCivil,ElectricalandMechanicalPipingconsultancyservicesfor5.0MLDSeaWaterDesalinationPlant;DPRforAbatementofpollutioninBuddhaNalainLudhianaCityfromPunjabWaterSupply&SewerageBoardand an assignment from Kamarajar Port Limited for development of Container Terminal through PPP mode on DBFOT basis.

Your Company also secured business in the new diversified areas.These included Pre-Feasibility Study for Coal to Poly Generation

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ProjectatMundra;PetcokeGasificationFeasibilityStudyreport forNFL-Nangal;DFRofSolarPowerProjectatGAILPata.InLSTKdomain,yourCompanywassuccessful insecuringanOBEassignment fromONGCinHaziraundertheirDamanDevelopmentProject.

Thisfinancialyearsawanexponentialjumpinoverseasorderbooking.YourCompanyhasmadesignificantforayinAfricabysecuringaPMCassignmentforaGrassroot460,000BPSDRefineryand690,000TPAPolypropylene plant for Dangote Oil Refining Company in Nigeria.This is,asondate, the largestvalueconsultancyorderreceivedbyyourCompany.Inadditiontotheabove,yourCompanyhassecuredConsultancy Services assignment for Lobito Refinery Project ofSonangolE.P.inAngola.YourCompanywasalsosuccessfulinsecuringaPMCassignmentforaFertilizerProjectenvisagingAmmonia,Urea&MethanolPlantsofBrassFertilizerCompanyLimitedinNigeria.EILhas also made successful entry in South Sudan by securing a Feasibility Assignment for building South Sudan-Ethiopia-Djibouti Pipeline.In Oman your Company was appointed PMC by Oman Refineriesand Petroleum Industries Company (ORPIC) for an IntegratedPetrochemical Complex near Sohar Refinery and for RFCCRevampandvariousunitsImprovementworksatSoharRefinery.InBahrain,your Companywas awarded its first Training assignment,whereinEILspecialistsareprovidingtrainingtoBahrainPetroleumCompany(BAPCO) employees onDesign and Engineering concepts. This hasopenednewavenuesforpotentialtrainingrelatedjobsinBAPCOandotherclientsintheHydrocarbonsectorinInternationalmarket.YourCompanywassuccessfulinrenewingitsGeneralServicesAgreementwithBAPCOfor2yearswhich is likelytoopenavenuesforvariousengineeringassignmentsforEIL.

UAE has been a very consistent market for your Company. Toexpanditsbusinessprospects inUAE,EILhasexpandeditsexistingengineeringofficethere.InUAE,yourCompanyhasbeensuccessfulinsecuringnumberofprestigiousassignmentsincludingConsultancyservices for CrudeUnit Tower Debottlenecking assignment at AbuDhabiRefineryforTakreer.

Your Company has also made entry into Russia for providing itsconsultancyservices forPFR forNaturalGasBasedUreaAmmoniaPlant in Siberia region. This will provide further opportunities toexpand Company’s footprints in CIS countries.

The year saw a number of critical projects commissioned andgoodprogressachievedonotherongoingprojects. In theRefinerySegment, EIL successfully completed Mangalore Refinery Ph-IIIExpansion by commissioning the PFCC Unit, Polypropylene Unit,Sulphur Recovery Unit and Delayed Coker Unit which will resultin higher operating margins for the refinery. EIL also successfullycommissionedthe largestWAXunitofthecountry(~50TMTPA)atNumaligarhRefineryofNRL.CDU-4UnitofBPCL-MumbaiRefinerywhichyourCompany isexecutingunderEPCMmode isunderpre-commissioning.IntegratedRefineryExpansionProjectofBPCLKochiRefinery, Residue Upgradation Project at CPCL Refinery and otherprojectsarealsoprogressingwell.

In Petrochemical Sector, EIL achieved Mechanical completion ofGAIL’s Petrochemical Expansion Projects at Pata & Vijaipur. Bothcomplexesareundercommissioning.Duringtheyear,yourCompanyalsoachievedmechanicalcompletionofAssamGasCrackerProjectofBCPL-thefirsteverPetrochemicalPlantintheNorth-EastRegion.Pre-commissioningactivitiesarealsounderprogressatOPaL’sgrassroot mega Petrochemical project at Dahej. Your Company alsosuccessfully commissionedButene-1unit of IOCLPanipatRefinery,

executedonOpenBookEstimate(OBE)Basis.

In Upstream Sector, GSPC’s Offshore Gas Platform at Deen Dayalfield in the Krishna-Godavari basin aswell as connecting OnshoreGasTerminal(OGT)achievedMechanicalcompletion.MajorfacilitiesinOGTwerealsocommissionedduringtheyear.Inadditiontothis,Cairn’sMangalaProcessTerminalutilityprojectwasalsocompletedduring the year.

In Fertilizer segment, EIL is executing three major internationalprojectsinNigeria,IndonesiaandBangladesh.Alltheseassignmentsachievedencouragingprogressduringtheyear.YourCompanyisalsoundertakingastrategicinvestmentintheformofequityparticipationfor Revival of Ramagundam Fertilizer Project along with NationalFertilizerLimitedandFertilizerCorporationofIndiaLimited.AjointventureCompany (RamagundamFertilizersandChemicalsLimited)hasbeenformedtopilotthisproject.YourCompanywillalsoprovideEPCMservicesforthisproject.

In Infrastructuresegment,Delhi JalBoard’sYamunaRiverPollutionAbatement Project achieved readiness of various interceptor stretchesandworkisinfullswingtomaketheprojectoperationalattheearliest.YourCompanyalsoachievedmechanicalcompletionofStrategicCrudeStorageCavernsatVizag,MangaloreandPadur.1st Crude-InforVizagisaccomplished.

To stay ahead in the fast evolving technological landscape of the energy sector, your Company’s Research & Development Centre(R&D)inGurgaonhasbeensuccessfulincommercializingatechnologyfor Crude Distillation Unit (CDU) Preheat Train Optimization usingPinch technology at Numaligarh Refinery. Various technologydevelopment programmes that were completed during the yearinclude Development of Process for Treatment of Naphtha Stream to eliminateMercaptanbyCFCProcess,RegenerationofGlycol byExtractive Distillation and Solvent development for CO2 removal from sour gases to name a few. Some of the critical technologydevelopment programs that are under progress include design ofHigeewater deaeration system in associationwith BPCL (R&D),DesignMethodology for TrayswithExplosionHatches andProcessDesignandDevelopmentofNewSeparationDevicesforFlashDrum.

During the year, your Company’s R&D efforts were recognized bygrantoftwopatents:

• High pressure fluidized bed gasifier and gasification processthereof

• An absorbent liquid and a process for removal of acid gases using the same

With this your Company’s patent portfolio has grown to 16 ‘live’patentsrelatingtovariousprocesstechnologies.

Information Technology Services (ITS) division of your Companycontinuedtoprovidestate-of-the-artITenabledservicestoEIL’smainstream activities by developing/implementing leading IT solutionswithanaimtodeliverbetterqualityserviceswithincreasedefficiencyatreducedcosts.ITSdivisioncontinuedwiththeirpersistenteffortstowards new initiatives and enhancement of existing systemsduringtheyear.Thedivisionalongwith Infrastructuredivisionalsocompleted prestigious PMC assignment for Directorate Generalof Hydrocarbon (DGH)’s National Data Repository (NDR) projectwhich aims at providing a world-class data storage and retrievalinfrastructureforthehydrocarbonexplorationandproduction(E&P)data in safe and reusable manner.

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under Swachh Vidyalaya Program. Your Company is constructing /renovating509schooltoiletsforgirlsandboysinthestatesofBihar,Odisha,TamilNaduandAssam.Separatetoiletswereplannedforgirlsandboysinschools,someofwhicharelocatedinveryremoteareas.YourCompanyshallalsobeadoptingaheritagecityinNorthernIndiatosetupaWastetoFuelconversionfacilityaspartofthecleanlinesscampaignunderSwachhBharatcampaign.

“MakeinIndia”isanotherglobalinitiativelaunchedbyHon’blePrimeMinister which will give huge boost to indigenousmanufacturing.YourCompanybeinganintegralpartofdevelopmentofhydrocarbonsector in the country has taken up this campaign in the true spirit and hasbeenpursuing several initiatives. EIL is piloting themidstreamsectorfor“MakeinIndia”initiativeunderMoP&NGandisamemberof the Steering Committee set up for the purpose. A VendorMeetwithall stakeholderswasheld inMumbai for sensitizing themanufacturingsectortothepolicyinitiativebeingcontemplated.

Ever since its inception, your Company has accorded highestpriority toHealth, Safety&Environment (HSE) in all aspectsof itsoperations. During the year, your Company’s HSE ManagementsystemwascertifiedbyanaccreditedCertificationBodytoOHSAS18001(OccupationalHealthandSafetyAssessmentSeries)andISO14001 (Environmental Management system). These certificationswill enhance your Company’s evaluations scoreswhile bidding foroverseasjobsparticularlyintheMiddleEastOil&Gasmarket.

Duringtheyear,theQualityManagementSystemofyourCompanywas reassessed through external Surveillance Audit for continualconformance to ISO 9001:2008 by the third party certificationagency which confirmed that the Quality Management System ofyour Company continues to conform to the international standardISO 9001. During the year, your Company was conferred withthe prestigious Rajiv Gandhi National Quality Award (RGNQA),Commendation Certificate 2012 in Large Scale Service IndustryCategoryinstitutedbyBureauofIndianStandards(BIS).

This year also saw the Company being bestowedwith number ofprestigiousawards,prominentbeing IndiaTodayPSUsAward2014in the category of “Best Global Presence”, Golden Peacock AwardforCorporateGovernance for theyear2014 institutedby InstituteofDirectors(IOD),FICCIChemicalandPetrochemicalAwards2014inthecategoriesof“ProcessInnovatoroftheYear-Petrochemicals”and“SustainabilityAwardforBestGreenProcess-Petrochemicals”.Whileour efforts are self-less and authentic in spirit, these recognitionsfromexternalBoardsofeminentjudgesconfirmsthatourprogressisintherightdirection.

TheCompanyremainscommittedtogoodcorporategovernanceandethicalpracticesasperListingAgreementwithStockExchangesandGovernmentGuidelines.

I thankyouforyourcontinuedsupportandfaith intheCompany’sgrowthpotentialandlookforwardtoyourfeedbackandadvice.EILmanagementjoinsmeinwishingyouandyourfamilylotofprosperityand good health.

Sanjay Gupta

YourCompany’sEnvironmentDivisionover theyearshasexecutedprojects in diversified fields of water & wastewater treatment;effluent recycleandzerodischargeprojects;Environmental ImpactAssessment studies; environmental audits; air quality assessment,solid & hazardous waste management, fugitive emissions control,environmentalhealth&riskmanagementetc.Duringtheyearwhilecontinuing with their endeavor of providing environment friendlysolutions to its clients, the division, with its in-house strength ofEIACoordinatorsandFunctionalAreaExperts,wasre-accreditedbyQualityCouncilofIndia(QCI)forcarryingoutEIAstudiesinIndiaineleven sectors.

YourCompanytakesprideinitshighlymotivatedandspiritedwork-forcewithprofessionalexpertiseand strong technical calibre - thepropellers of your Company’s growth engine. Engagement andEmpowermentofexecutives is thereforecritical, for improving theprojectperformanceintermsoftimeandcostefficiencies.

Theyear focusedonstrengtheningHR’s resolve increatingamoretransparent,performancedrivenandnurturingenvironmentfor itskey stakeholders– thepeople.TheHRAgendadrawn for theyear2014-15 facilitated in prioritizing key action areas and synergizedthe HR teams to work in unison towards achievement of theorganizationalgoals.

ActionpointsthatemergedfromtheEmployeeEngagementSurvey-‘Abhivyakti’weretakenupforimplementationinaphasedmanner.The HR Meet and HOD meet-Vicharavesh continued to providevaluable platforms for effective brainstorming which broughtforth various suggestions for implementation thereby creating anenvironmentofownership,trustandcollaboration.

To create a robust systemof performance assessment in linewithIndustry best practices, the performance appraisal process andpromotionpolicy forofficerswas reviewedandsignificantchangeswerebroughtabouttopromotehigherengagement.

YourCompanyiswellawareofitssocialresponsibilities.Thethrustareas for your Company’s CSR activities/projects are education,healthcare, drinking water/sanitation, rural electrification,environment protection/sustainability, women empowerment,upliftment of underprivileged, community development andvocationaltraining/skillcentre.

Major CSR initiatives undertaken by your Company during theyear include renovation/up gradation of infrastructure in variouseducational institutes for underprivileged children in Assam,constructionofauditoriumforgirlstudentsandsupportforsettingupofaDigitalLibraryinAndhraPradesh,classroomandtoiletfacilities(for girls) in Coimbatore andmany such Initiatives. Your Companyalsosupportsvaluebasededucationalprograms invariousschoolsofUttarakhandandfreeeducationtounderprivilegedchildrenfromtheslumsofDelhi/NCR.Anotheron-goingkeyinitiativeisadoptionof100and25EkalVidyalayasinDibrugarhDistrictinAssamandOdisharespectivelythrough‘OneTeacherSchool’.

Responding to Hon’ble PrimeMinister’s clarion call for a SwachhBharat, your Company undertook number of initiatives during theyear including providing basic amenity of safe and clean toilets to a large segment of the Indian population esp. the girl students

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Board ofDirectors

Sanjay GuptaChairman&ManagingDirector(CEO)

andAddl.charge-Director(Commercial)*(w.e.f.1.06.2015)

Ram SinghDirector(Finance)

(CFO)

Ajay NarayanDeshpande

Director(Technical)

Veena SwarupDirector(HR)

Ashwani SoniDirector(Projects)**

(w.e.f.1.09.2014)**D.Moudgil,Director(Projects)

(till31.08.2014)

Non-ExecutiveDirectors

Bijoy Chatterjee Non-officialIndependentDirector

(till3.07.2015)

Dr. J.P. GuptaNon-officialIndependentDirector

(till3.07.2015)

Dr. R.K. ShevgaonkarNon-officialIndependentDirector

(till3.07.2015)

Dr. V. Vizia SaradhiNon-officialIndependentDirector

(till27.08.2014)

D.R. MeenaNon-officialIndependentDirector

(till27.08.2014)

Company Secretary

*ShriA.K.PurwahaceasedtobeChairman&ManagingDirectoroftheCompanyw.e.f.1.06.2015duetohisretirementonattainingtheageofsuperannuationon31.05.2015.ShriSanjayGupta,Director(Commercial)wasappointedasAdditionalDirectorandChairman&ManagingDirectorandalsoentrustedwithchargeofthepostofDirector(Commercial)w.e.f.1.06.2015.

Rajan Kapur

Dr. Archana S. MathurDirector(Govt.Nominee)

Adit Jain Non-officialIndependentDirector

(till27.08.2014)

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BriefProfilesoftheDirectors

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Mr. Sanjay GuptaistheChairmanandManagingDirectorofourCompany.HeisalsoholdingtheadditionalchargeofthepostofDirector(Commercial).HeisaB.E.fromIIT,Roorkeeandhasabout34yearsofexperienceinimplementationofmegagrassrootsandbrownfieldprojectsinRefineriesandPetrochemicals.HewasalsoentrustedwiththetaskofleadingtheimplementationofthefirsteverOBEProjectandpioneeredthesameintheHydrocarbonsectorinIndia.SeveralprojectsonthismodehavebeenimplementedbytheCompany,thereafter.Hehashithertoalsobeenadditionallyresponsible forall thecommercial functionsof theCompany includingEstimation,Contracting,InspectionandBusinessDevelopment.Hehasbeenengagedinconsolidation,internationalizationandstrategybuildingfortheCompany.TheimprovementofGovernancefunctionoftheCompanywhileprovidingemphasisonprojectdeliverytotheownersisthecardinalprinciplearoundwhichalltheeffortsarebeingexpanded.

Ms. Veena SwarupistheDirector(HR)ofourCompany.SheholdsaMaster’sDegreeinBusinessAdministrationfromLucknowUniversity.Shehasmorethan3decadesofexperienceinthefieldsof human resource in the Petroleum and Natural Gas sector. Prior to joining EIL,Ms. SwarupwaswithONGCsince1983,wheresheheldseveralassignmentsincludingHeadofPerformanceManagement & Benchmarking Group, which steered Performance Contracts & Service LevelAgreementsbetweenboardlevelandunitchiefs.HerotherassignmentincludedsettinguptheONGCEnergyCenter,HeadHRat variousUnitsofONGC,PolicymakingandNegotiationswithCollectives.ShealsoheadedtheSAP-HRProjectforONGC,whichwasthelargestProjectinAsiaatthattime.ShewasdeputedtoMRPLasachangeagenttoinitiatealigningtheCompanytoPublicSector requirements. Shealsohada short stint inDirectorateGeneral ofHydrocarbons as theHeadofCorporateAffairsandHumanResources.ShehasbeenassociatedwithseveralprestigiousCommitteesofDPE&SCOPEtoreviewvariouspolicieswithreferencetoPublicSectors.AsDirector(HR),EILsheiscreditedforbringingatransformationalchangeinthefunctioningofHRinEILandhastakenseveralpathbreakinginitiativestowardsTalentManagement,Training&Development,EmployeeCommunication,CSR&BrandBuildingwithaviewtotakeEILtogreaterheights.ShehasalsobeenrecognizedinthefieldofManagementbyvariousagencies.SomeoftheAwardsrecentlyconferredtoherincludeLegendDirectoroftheYear2014byNewsInkMedia,IndianAchievers’AwardforCorporateLeadershipinHumanResourcesforoutstandingachievementsinBusiness&Social Service by Indian Achievers Forum.

Mr. Ram Singh istheDirector(Finance)ofourCompany.HehasbeenontheBoardsinceJanuary28, 2010. He has a Bachelor’s Degree in Commerce fromDelhi University and is an associatememberoftheInstituteofCostAccountantsof India.Hehas33yearsofexperienceinfinanceandcostaccountinginthesteelandhydrocarbonsector.HisexperienceincludespositionsheldwiththeSteelAuthorityofIndiaLimited,BharatPetroleumCorporationLimited,OilCo-ordinationCommitteeandPetroleumPlanningandAnalysisCelloftheMinistryofPetroleumandNaturalGas.HeiscurrentlyresponsibleforthefinancialmanagementofourCompany.Mr.SinghwasassociatedwiththepreparationofreportontheScopeforImprovementofAsianMarketsforCrudeOil&Products in associationwith Instituteof EnergyEconomics, Japan (2006)whichwaspresentedattheforumofAsianOilMinisters.HehasalsodeliveredguestlecturesandactivelyparticipatedinvariousInternationalEnergyForumswhichincludeWorkingGrouponEnergySecurityatAsiaCooperationDialogueheldinPhillipines(2004);ASEANOilMarketForumatBangkokheldjointlybyMinistryofEnergy,ThailandandMinistryofTrade&Industry,Japan.(2007);EnergySecurityinAsia at International Association for Energy Economics at NewZealand (2007) and EnergyInformationAdministration(EIA),USDepartmentofEnergy.Mr.RamSinghhasbeenconferredwith Top Rankers Excellence Award for Finance; Business Today Best CFO of a PSU (Mid size)Award-2013;IndiaCFOAwardforExcellenceinRiskManagementbyIMAIndiaandExcellenceinCostManagementPracticesbyInstituteofCostAccountantsofIndiaduring2011and2012.

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Mr. Ajay Narayan Deshpande istheDirector(Technical)ofourCompany.HehasaBachelor’sDegreeinChemicalEngineeringfromNagpurUniversityandaMaster’sDegreeinSystems&ManagementfromtheIndianInstituteofTechnology,Delhi,securingthefirstrankinboththeprograms.HehasworkedinvariouscapacitiesofourCompanyoverthepast35years,includingoilandgas,refineryand petrochemicals sector, covering the functions of process design/development, research anddevelopment,plantoperationsandsafety,heat&masstransfer,environmentalengineering,specialistmaterialsandmaintenanceservicesandinformationtechnologyintheTechnologyDivision.HehasexposureofworkinginProjectsDivisionalso.HehasbeenresponsibleforthebusinessgrowthandtechnologyinitiativesoftheCompanyandwasalsoresponsibleformeetingthecompany’stargetsonR&Dandsustainabledevelopment.Hehasco-authoredsevenpatentapplicationsonbehalfoftheCompany.HehasservedasDirectorontheBoardofCEILfortwoyearsandiscurrentlyontheBoardofRamagundamFertilizersandChemicalsLimited,EIL’sJVwithNFLandFCILtoundertakeabrownfieldprojectforAmmonia/UreaproductionatRamagundam.AsDirector(Technical),heisnowresponsibleforallTechnologyandEngineeringDivisionswithintheCompany.

Mr. Ashwani Soni istheDirector(Projects)ofourCompany.HeisagraduateinMechanicalEngineeringfrom IIT (BHU), Varanasi & an MBA from FMS, Delhi. He joined EIL in 1979 as a ManagementTrainee.Underhis leadership,Projectdivisionsareproviding services forRefinery,Petrochemical,Power, Metallurgy, Pipelines & Off-shore projects. He also oversees Project Services (Planning),ConstructionManagement and Regional Offices at Vadodara, Chennai & Kolkata. He has around36yearsofdiversifiedexperienceinexecutionofRefinery&PetrochemicalProjects,OnshoreandOffshoreTerminals,CaptivePowerPlants,Onshore&OffshorePipelinesandNon-FerrousMetallurgyprojects.He isamemberof theOISDCommiteeresponsible forpreparationofStandardsrelatedtoHydrocarbonPipelinesandBureauofIndianStandards(BIS).ShriSonihaschairedanumberofconferencesandpresentedmanypapersinnationalandinternationalConferences/ForumsincludingpipelinesconferencesorganisedinIndia.HeisalsoonthePanelofASMEB31CommiteeforfinalisationofASMECodes.

Dr. Archana S. Mathur isaGovernmentNomineeDirectorofourCompany.ShehasaMaster’sDegreeinEconomicsfromtheDelhiSchoolofEconomics,DelhiUniversityandPh.D.inthefieldof International Trade from the Jawaharlal NehruUniversity, NewDelhi. She joined the IndianEconomicService in1982.Over thecourseof31years in theservice,Dr.Mathurhasserved invariouseconomicministriesoftheGovernmentofIndia.Shehasanumberofacademicpapersinprestigiousjournalsandbookstohercredit.

COMPANY SECRETARYRajan Kapur

STATUTORY AUDITORSM/sM.Verma&AssociatesCharteredAccountants,1209,HemkuntChambers,89,NehruPlace,NewDelhi-110019Tel.:011-41078098,Fax:011-26211211

SECRETARIAL AUDITORM/sAgarwalS.&AssociatesCompany Secretaries 119&127,VardhmanStarCitiMall,Sector-7,Dwarka,NewDelhi-110075Tel.:011-45052182,E-mail:[email protected]

STOCK EXCHANGES WHERE SHARES OF THECOMPANY ARE LISTEDThe Bombay Stock Exchange Ltd.PhirozeJeejeebhoyTowers,DalalStreet,Mumbai-400001National Stock Exchange of India Ltd.ExchangePlaza,PlotNo.C/1,GBlockBandra-KurlaComplex,Bandra(E),Mumbai-400051

REGISTRAR AND SHARE TRANSFER AGENTM/s Karvy Computershare Private Limited305,NewDelhiHouse,27,BarakhambaRoad,ConnaughtPlace,NewDelhi-110001TelNo.011-43681700,FaxNo.011-43681710Email:[email protected],PlotNo.31&32Gachibowli,FinancialDistrictNanakramguda,Serilingampally,Hyderabad-500032TelNo.040-67162222,FaxNo.040-23001153Email:[email protected],Website:www.karvy.com/www.karvycomputershare.com

REGISTERED & HEAD OFFICEEngineersIndiaBhawan1,BhikaijiCamaPlace,NewDelhi-110066CIN:L74899DL1965GOI004352Tel.:011-26762121,Fax:011-26178210,26194715E-mail:[email protected]:www.engineersindia.com

SUBSIDIARY COMPANIESCertification Engineers International LimitedEngineersIndiaBhawan1,BhikaijiCamaPlace,NewDelhi-110066CIN:U74899DL1994GOI062371Tel.:011-26762121,Fax:011-26174868,26186245E-mail:[email protected]:www.certificationengineers.com

EIL Asia Pacific Sdn. Bhd.SuiteB-02-05,Dataran3Two,No.2,19/1,46300PetalingJaya,SelangorDarulEhsan,KualaLumpur-Malaysia

MAIN BANKERSState Bank of India CorporateAccountsGroup11thFloor,JawaharVyapar,Bhawan,1,Janpath,NewDelhi-110001

Indian Overseas Bank F-47,MalhotraBuilding,Janpath,NewDelhi-110001

Corporation Bank 3,AnsalChamber-I,BhikaijiCamaPlace,NewDelhi-110066

State Bank of Travancore 3,AnsalChamber-I,BhikaijiCamaPlace,NewDelhi-110066

HDFC Bank Ltd. B-6/3,SafdarjungEnclave,DDAComplex,NewDelhi-110029

CorporateInformation

10


11

PARTICULARS/YEARS 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

A OPERATING STATISTICSTurnover* 79,048.04 57,108.13 73,775.21 153,246.28 199,379.70 282,328.44 369,882.43 250,596.70 182,359.17 171,300.42Other Income 6,666.63 8,227.26 12,412.79 21,476.29 18,240.11 15,038.90 21,750.32 26,184.33 23,208,51 27,310.80Expenditure 65,551.08 44,899.47 56,557.68 122,675.67 151,492.06 218,341.43 299,964.65 187,259.58 135,487.80 151,037.44Prior Period Adjustments(Net)

185.67 (28.07) 242.27 0.13 79.96 577.45 191.57 427.75 277.07 818.15

ProfitbeforeTax 19,977.92 20,463.99 29,388.05 52,046.77 66,047.79 78,448.46 91,476.53 89,093.70 69,802.81 46,755.63Tax 8,025.57 8,647.19 10,904.48 19,385.10 24,972.04 29,608.15 31,707.33 28446.97 21276.4 16048.18FringeBenefitTax 255.00 275.00 270.20 286.67 - - - - - -DefferedTax(Assets)/Liability

(2,166.99) (2,757.61) (1,246.50) (2,078.37) (2,481.76) (3,411.63) (3,862.33) (2,210.82) 550.06 (90.19)

ProfitafterTax 13,864.34 14,299.41 19,459.87 34,453.37 43,557.51 52,251.94 63,631.53 62,857.55 47,976.35 30,797.64Amount Transfer from GeneralReserve

- - - - 56,156.10 - - - - -

Dividend including Dividend Tax

5,122.57 6,183.11 7,205.74 12,124.72 69,620.58 19,510.55 23,438.99 23507.42 25554.95 20148.82

Retained Surplus 8,741.77 8,116.30 12,254.13 22,328.65 30,093.03 32,741.39 40,192.54 39,350.13 22,421.40 10,648.82

B FINANCIAL POSITIONCAPITALEMPLOYED 95034.04 103150.34 115205.00 137533.65 111470.58 144211.97 184404.51 223754.64 246176.04 256790.09NONCURRENTASSETSi)FixedAssets** 4001.49 3967.54 5035.89 6328.12 7189.38 7315.10 10469.07 18597.45 24966.27 28881.37ii)OtherNoncurrentAssets***

20014.84 22047.43 24312.64 27058.43 24224.52 28674.83 34724.74 39170.21 30041.36 29512.95

CURRENTASSETS*** 133432.97 143754.70 182309.81 265175.87 251937.62 310934.04 329212.37 326699.21 320034.01 333200.35EQUITY&LIABILITIESi)ShareCapital 5615.62 5615.62 5615.62 5615.62 5615.62 16846.84 16846.84 16846.84 16846.84 16846.84ii)Reserve&Surplus 89418.42 97534.72 109589.38 131918.03 105854.96 127365.13 167557.67 206907.80 229329.20 239943.25NONCURRENTLIABILITIES****

- - - - - 2101.85 2515.21 2,479.95 2,192.55 1,968.61

CURRENTLIABILITIES****

62415.26 66619.33 96453.34 161028.77 171880.94 200610.15 187486.46 158232.28 126673.05 132835.97

C RATIOSPBT/Turnover 25.27% 35.83% 39.83% 33.96% 33.13% 27.79% 24.73% 35.55% 38.28% 27.29%PAT/Turnover 17.54% 25.04% 26.38% 22.48% 21.85% 18.51% 17.20% 25.08% 26.31% 17.98%PBT/CapitalEmployed 21.02% 19.84% 25.51% 37.84% 59.25% 54.40% 49.61% 39.82% 28.35% 18.21%PAT/NetWorth 14.59% 13.86% 16.89% 25.05% 39.08% 36.23% 34.51% 28.09% 19.49% 11.99%Turnover/NetWorth(numberoftimes)

0.83 0.55 0.64 1.11 1.79 1.96 2.01 1.12 0.74 0.67

SundryDebts/Turnover(Month’sTurnover)

3.40 4.21 2.87 2.35 1.91 1.31 1.00 1.59 2.26 2.98

Notes: *Turnoverincludesaccretion/decretiontoWorkinProgress. **FixedAssetsincludesCapitalWork-in-progress. ***FromFinancialYear2010-11,AssetshavebeenreclassifiedintoCurrentandNonCurrentasperprovisionsofCompaniesAct.PriortothatotherNonCurrentAssetscompriseofInvestments,DeferredTaxassetandVoluntaryRetirementCompensation(totheextentnotwrittenofforadjusted) ****FromFinancialYear2010-11,LiabilitieshavebeenreclassifiedintoCurrentandNonCurrentasperprovisionofCompaniesAct.Previousyear’sfigureshavebeenregroupedwhereevernecessarytomakecomparableforfinancialyear2014-15figures.

Ten Years’ Performance at a Glance(`inlakhs)

E ngineers India Limited

12

NOTICEisherebygiventhatthe50thAnnualGeneralMeetingoftheMembersofEngineersIndiaLimitedwillbeheldonTuesday,the25th day of August,2015at10.30a.m.atManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi–110010totransactthefollowingbusiness:

ORDINARY BUSINESS:1. Toreceive,considerandadopttheAuditedFinancialStatements(includingauditedconsolidatedfinancialstatements)fortheyearended31st

March,2015andtheReportsofDirectorsandAuditorsthereon.2. Toconsiderdeclarationoffinaldividendonequityshares.3. To appoint a director in place ofMs. Veena Swarup (DIN: 06388817), who retires by rotation and being eligible, offers herself for re-

appointment.4. ToappointadirectorinplaceofShriAjayN.Deshpande(DIN:03435179),whoretiresbyrotationandbeingeligible,offershimselfforre-

appointment.5. Tofix remunerationofAuditors for thefinancial year2015-16and, if thoughtfit, topasswithorwithoutmodification(s), the following

resolutionasanOrdinaryResolution: “RESOLVED THATtheBoardofDirectorsoftheCompanybeandareherebyauthorizedtofixtheremuneration,outofpocket,statutorytaxes

andotherancillaryexpensesofAuditorstobeappointedbytheComptrollerandAuditorGeneralofIndiaforthefinancialyear2015-16.”

SPECIAL BUSINESS:6. ToappointShriAshwaniSoni(DIN:06962014)asDirector(Projects)oftheCompanyandinthisregard,toconsiderandifthoughtfit,topass,

withorwithoutmodification(s),thefollowingresolution,asanOrdinaryResolution: “RESOLVED THAT pursuanttotheprovisionsofSection161(1)oftheCompaniesAct,2013andtheRulesmadethereunderincludingany

statutorymodification(s)orre-enactmentthereofforthetimebeinginforceandArticlesofAssociationoftheCompany,ShriAshwaniSoni(DIN:06962014),whowasappointedasanAdditionalDirectorinthecapacityofDirector(Projects)bytheBoardofDirectorsw.e.f.1.09.2014andwhoholdsofficeuptothedateofthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhas,pursuanttoSection160oftheCompaniesAct,2013,receivedanoticefromShriAshwaniSonihimselfinwritingproposinghiscandidaturefortheofficeofdirector,beandisherebyappointedasDirector(Projects)oftheCompany,liabletoretirebyrotation.”

7. ToapprovematerialrelatedpartytransactionsofEILwithM/sRamagundamFertilizersandChemicalsLimited(RFCL)andinthisregard,toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolution,asaSpecialResolution:

“RESOLVED THAT pursuant to the provisions of Section 188 and other applicable provisions, if any, of Companies Act 2013 readwithapplicableRulesunderCompanies(MeetingsofBoardanditsPowers)Rules,2014andintermsofapplicableprovisionsofListingAgreementexecutedwith the Stock Exchanges (including any amendment,modificationor re-enactment thereof), consentof themembersof theCompany be and is hereby accorded for related party transactions of EIL towards rendering of EPCM services to M/s Ramagundam FertilizersandChemicalsLimited(RFCL)whichisunderordinarycourseofbusinessandonarm’slengthbasisatalumpsumpriceof`190croreplusservicetax,incentiveandadditionalchargeonmandayratebasisforvisittovendoroffice,intermsofLetterofAwarddated 31stMarch2015readwithclarificationletterdated15thApril2015,issuedbyRFCL.

RESOLVED FURTHER THATpost-factoapprovalofthemembersoftheCompanybeandisherebyaccordedforenteringintoanarrangementwithRFCLinrespectofrenderingofservicestowardsselectionoftechnologylicensoroncostreimbursablebasis.

RESOLVED FURTHER THAT Director (Finance) or Director (Commercial) or Director (Projects) be and are hereby authorized to take allnecessarystepstogiveeffecttotheaboveresolution.”

8. ToappointShriSanjayGupta(DIN:05281731)asChairman&ManagingDirectoroftheCompanyandinthisregard,toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolution,asanOrdinaryResolution:

“RESOLVED THAT pursuanttotheprovisionsofSection161(1)oftheCompaniesAct,2013andtheRulesmadethereunderincludinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforceandArticlesofAssociationoftheCompany,ShriSanjayGupta(DIN:05281731),whowasappointedasanAdditionalDirectorandChairman&ManagingDirectorbytheBoardofDirectorsw.e.f.1.06.2015andwhoholdsofficeuptothedateofthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhas,pursuanttoSection160oftheCompaniesAct,2013,receivedanoticefromShriSanjayGuptahimselfinwritingproposinghiscandidaturefortheofficeofdirector,beandisherebyappointedasChairman&ManagingDirectoroftheCompany.”

By order of the Board (Rajan Kapur)Place:NewDelhi Company SecretaryDate:July10,2015

Notice

Regd. Office: Engineers India Bhawan, 1, Bhikaiji Cama Place, New Delhi – 110066Tel:011-26762121, Fax:011-26178210, E-mail: [email protected]

Website: http://www.engineersindia.comCIN: L74899DL1965GOI004352


13

1. AMember entitled to attend and vote at the Annual GeneralMeeting (the “Meeting”) is entitled to appoint one or moreproxy(ies) to attend and vote on a poll instead of himself anda proxy so appointed need not be a member of the Company. Theinstrumentappointingtheproxy(dulycompleted,stampedand signed)must be deposited at the registered office of theCompanynot lessthan48hoursbeforethecommencementofthemeeting.Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethanten percent of the total share capital of the Company carrying voting rights.Amemberholdingmore than tenpercentof thetotal share capital of the Company carrying voting rights mayappoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder. During the period beginning24hoursbeforethetimefixedforthecommencementofthemeetingandendingwiththeconclusionofthemeeting,memberwouldbeentitledtoinspecttheproxieslodged,atanytimeduringthebusinesshoursoftheCompany,providednotlessthan3dayswrittennoticeisgiventotheCompany.

2. TheStatementpursuanttotheprovisionsofSection102oftheCompaniesAct,2013settingoutthematerialfactsinrespectofspecialbusinessisannexedherewith.

3. Membersarerequestedto:-(i) bringtheircopyofAnnualReportandAttendanceSlip,duly

completedandsigned,tothemeeting.(ii)quotetheirFolio/ClientID&DPIDNos.inallcorrespondence

withtheR&TA/Company.(iii)notethatduetostrictsecurityreasons,eatablesandother

belongingsarenotallowedinsidetheAuditorium.

4. Corporate Members intending to send their authorizedrepresentative(s) to attend theMeetingare requested to senda certified copy of the Board Resolution authorizing theirrepresentativetoattendandvoteontheirbehalfattheMeeting.

5. The Register of Members and Share Transfer Books of theCompany will remain closed from Wednesday, 19th August,2015toTuesday,25thAugust,2015(bothdaysinclusive)forthepurposeofascertainingtheentitlementofdividend.

6. Dividend,ifany,approvedatthe50th AnnualGeneralMeetingoftheCompanywillbepaid to those shareholderswhosenamesappear:

a. AsBeneficialOwnersasattheendofthebusinesshoursonTuesday,18thAugust,2015asperthelisttobefurnishedbytheDepositoriesinrespectofsharesheldinElectronicform,and

b. As Members in the Register of Members of the Company aftergivingeffecttoallvalidsharetransfersinphysicalformlodgedwith the Registrar and Share Transfer Agent of theCompanyonorbeforeTuesday,18thAugust,2015.

7. MembersholdingsharesinphysicalformarerequestedtonotifyimmediatelyChangeofAddress,BankAccountetc.,ifany,quotingtheir Folio Number to M/s Karvy Computershare Private Ltd.,KarvySeleniumTower-B,PlotNo.31&32,Gachibowli,FinancialDistrict,Nanakramguda,Serilingampally,Hyderabad-500032(TelNo.040-67162222,FaxNo.040-23001153, Email:einward.ris@

Notes

karvy.com,Website:www.karvy.com/www.karvycomputershare.com) or at 305, New Delhi House, 27, Barakhamba Road,ConnaughtPlace,NewDelhi–110001(TelNo.011-43681700,Fax No. 011-43681710, Email: [email protected]) to ensurepromptreceiptofcommunicationsandothercorporateactions.Similarly, members holding shares in Electronic / Demat formare requested to notify any change of address and change ofbank account to their respective Depository Participant (DP)withwhomtheDemataccountismaintainedastheCompanyisobligedtouseonlythedataprovidedbyNSDL/CDSL.

8. In order to provide protection against fraudulent encashmentof dividendwarrants,Members are requested toprovide theirBankAccountNumber,NameandAddressoftheBank/BranchtotheRegistrarandShareTransferAgentoftheCompanyi.e.M/sKarvy Computershare Private Limited in respect of shares held inphysicalmodeandtotheirrespectiveDPsforDematmodetoenablethemtoincorporatethesameinthedividendwarrant.

9. ShareholdersmayavailthefacilityofNationalElectronicClearingService (NECS)/Electronic Clearing Service (ECS) for receivingdirectcreditofDividendtotheiraccountswiththeBanks.Thiswill enable expeditious credit of dividend amount and protectfromloss,theftandpostaldelayofdividendwarrant.

10.PursuanttoSection72oftheCompaniesAct,2013,shareholdersholding shares in physical form may file nomination in theprescribedformSH-13withtheCompany’sRegistrarandShareTransfer Agent. In respect of shares held in Electronic/Dematform, the nomination form may be filed with the respectiveDepositoryParticipant.

11.ThebalancelyingintheunpaiddividendaccountoftheCompanyin respect of final dividend declared on 19.09.2008 for thefinancial year 2007-2008 will be transferred to the InvestorEducationandProtectionFund(IEPF)oftheCentralGovernmentby18.10.2015(tentativedate).Memberswhohavenotencashedtheirdividendwarrantspertainingtothesaidyearmayapproachto the Company or its Registrar & Share Transfer Agent forobtaining thepayments thereofupon completionofnecessaryformalities in thesaidbehalfbefore30thSeptember,2015.Thesubsequentduedatesoftransferofunpaid/unclaimeddividendto IEPF for the respective financial years have been providedin the Corporate Governance Report and also at Company’swebsite.Therefore,thememberswhohavenotencashedtheirdividendsofarfortheseyearsarealsorequestedtowritetotheCompanyoritsRegistrar&ShareTransferAgentforclaimingtheunpaiddividendbeforetheirduedatesoftransfertoIEPF.

12.TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthe submissionof PermanentAccountNumber (PAN)byeveryparticipantinsecuritiesmarketfailingwhichthedemataccount/folio no. would be suspended for trading. Members holdingshares in electronic form are, therefore, requested to submitthe PAN to their Depository Participants with whom they aremaintaining their demat accounts. Members holding shares in physical form can submit their PAN details to the Company or its RTA.

13.Alldocumentsreferredtointheaccompanyingnoticeareopenfor inspection at the registered office of the Company on all


14

working days between 10.30 a.m. to 12.30 p.m. prior to theAnnualGeneralMeeting.

14.Pursuant to the requirements of Corporate Governance, abrief resume of the Directors proposed for appointment/reappointmentisannexedwiththeNotice.

15.TheAnnualReportoftheCompany,circulatedtotheMembersof theCompany,willalsobemadeavailableontheCompany’swebsitei.e.www.engineersindia.com.

16.ElectroniccopyoftheAnnualReportforthefinancialyear2014-2015 is being sent to all the Members whose e-mail ids areregisteredwiththeCompany/DepositoryParticipants(s)/RTAforcommunicationpurposesunlessanyMemberhasrequestedforahardcopyofthesame.FortheMemberswhohavenotregisteredtheire-mailaddress,physicalcopyoftheAnnualReportforthefinancialyear2014-2015isbeingsentinthepermittedmode.

17.Membersmay kindlynote that theCompanyhad sent a letterdatedJuly4,2011toallthememberstowardsthe“GreenInitiativein the Corporate Governance” in view of circular no. 17/2011dated21.04.2011and18/2011dated29.04.2011issuedbytheMinistryofCorporateAffairs.Thesaidletterisalsopostedonthewebsite of the Company at www.engineersindia.com. Further,theappealswerealsomadetotheMembersinthisregardintheAnnual Report of the Company for the financial year 2010-11,2011-12,2012-13and2013-14.SincetheCompanyiscommittedtowardsGreenInitiative, it isearnestlyrequestedagaininviewof the circulars issued by Ministry of Corporate Affairs andotherstatutoryprovisions,thattheMemberswhohaveyetnotregistered/updatedtheire-mail idsmaynotifythesametotheCompanyeitherattheregisteredofficeorate-mailaddresseil.annualreport@eil.co.inquotingfulldetailsofFolioNo./DP,ClientIDandnameoffirst/soleholderortotheconcerneddepository.

18.Members desirous of obtaining any information / clarification(s)concerning theaccountsandoperationsof theCompanyorintendingtoraiseanyqueryarerequestedtoforwardthesameat least 10 days before the date ofmeeting at the RegisteredOffice of the Company so that the samemay be attended toappropriately.

19.Pursuant to the provisions of Section 108 of the CompaniesAct, 2013, Rule 20 of the Companies (Management andAdministration) Rules, 2014 as substituted by the Companies(Management and Administration) Amendment Rules, 2015(‘AmendedRules2015’)andclause35BoftheListingAgreement,the Company is pleased to provide members facility through M/s Karvy Computershare Private Limited (KCPL) to exercisetheir right to vote on resolutions proposed to be consideredat the50thAnnualGeneralMeeting (AGM)of theCompanybyelectronic means and the business may be transacted through e-Voting.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(“remotee-voting”)willbeprovidedbyKCPL.

20.Thefacilityforvotingthroughballotpapershallbemadeavailableatthevenueof50thAGMandthemembersattendingthemeetingwhohavenotalreadycasttheirvotebyremotee-votingshallbeabletoexercisetheirrightatthemeetingthroughballotpaper.

21.Thememberswhohavecasttheirvotebyremotee-votingpriortothe50thAGMmayalsoattendthe50thAGMbutshallnotbeentitledtocasttheirvoteagain.

22.Theremotee-votingperiodcommencesonFriday,21stAugust,

2015at9.30a.m.(IST)andendsonMonday,24thAugust,2015at5.00p.m.(IST).Duringthisperiod,membersoftheCompanyholdingshareseitherinphysicalformorindematerializedform,asonthecut-offdatei.e.18thAugust,2015,maycasttheirvotebyremotee-voting.Remotee-votingshallnotbeallowedbeyondthesaiddateandtimeandtheremotee-votingfacilityshallbeblockedthereafter.Oncethevoteonaresolutioniscastbythemember through remote e-voting, the member shall not beallowedtochangeitsubsequentlyorcastthevoteagain.

23.Theprocessandmannerforremotee-votingisasunder:

A. In case a Member receives Notice of 50th AGM throughemail[formemberswhoseemailIDsareregisteredwiththeCompany/DepositoryParticipant(s)/RTA]:

i. Initialpasswordisprovidedinthebodyofthee-mail.

ii. Launch internet browser by typing the followingURL:https://evoting.karvy.com.

iii. Enter the login credentials i.e., User ID and passwordmentioned inyouremail.YourFolioNo/DP IDClient IDwillbeyourUserID.However,ifyouarealreadyregisteredwithKarvyfore-voting,youcanuseyourexistingUserIDandPasswordforcastingyourvotes.

iv. Afterenteringthedetailsappropriately,clickonLOGIN.

v. Youwill reachthePasswordchangeMenuwhereinyouarerequiredtomandatorilychangeyourpassword.Thenewpassword shall compriseofminimum8characterswith at least one upper case (A-Z), one lower case (a-z), one numeric value (0-9) and a special character(@,#,$,etc.). It is strongly recommended not to shareyour passwordwith any other person and take utmostcaretokeepyourpasswordconfidential.

vi. Youneedtologinagainwiththenewcredentials.

vii. Onsuccessfullogin,thesystemwillpromptyoutoselecttheEVENTi.e.,EngineersIndiaLimited.

viii.On the voting page, the number of shares (whichrepresentsthenumberofvotes)asheldbythememberason the cut-offdatewill appear. If youdesire to castallthevotesassenting/dissentingtotheresolutionthenenterallsharesandclick“FOR”/“AGAINST”asthecasemaybeorpartiallyin“FOR”andpartiallyin“AGAINST”,butthetotalnumberin“FOR/AGAINST”takentogethershouldnotexceedyourtotalshareholdingasonthecut-offdate.Youmayalsochoosetheoption“ABSTAIN”andthesharesheldwillnotbecountedundereitherhead.

ix. Membersholdingmultiplefolios/demataccountsshallchoose the voting process separately for each folio /demat account.

x. Cast yourvotesby selectinganappropriateoptionandclickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Click“OK”toconfirmelse“CANCEL”tomodify.Onceyouconfirm, you will not be allowed to modify your votesubsequently. During the voting period, you can loginmultiple times till you have confirmed that you havevotedontheresolution.

xi. Corporate/Institutional Members (i.e. other thanindividuals,HUF,NRI,etc.)arerequiredtosendscannedcopy(PDF/JPGFormat)oftherelevantBoardresolution/


15

authority letter etc. together with attested specimensignatureof thedulyauthorised signatory(ies)whoareauthorised to vote, to the scrutinizer throughe-mail [email protected]. They may also upload thesameinthee-votingmoduleintheirlogin.Thescannedimage of the above documents should be in the naming format“CorporateName_EVENTNo.”

xii. In case of any queries, you may refer the FrequentlyAskedQuestions(FAQs)formembersande-votingUserManual available at the “download” sectionof https://evoting.karvy.com or call M/s Karvy ComputersharePrivateLimitedon18003454001(tollfree).

B. IncaseaMemberreceivesphysicalcopyoftheNoticeof50th AGM[formemberswhoseemailIDsarenotregisteredwiththe Company/Depository Participants(s)/RTA or requestingphysicalcopy]:

i. UserIDandInitialpasswordasprovided.

ii. Please follow all steps from Sl. No. (ii) to Sl. No. (xii)above,tocastvote.

24.The voting rights of members shall be in proportion to theirshares of the paid up equity share capital of the Company as on thecut-offdatei.e.18thAugust,2015.

25.Anyperson,whoacquiressharesof theCompanyandbecomememberoftheCompanyafterdispatchoftheNoticeof50thAGMandholdingsharesasofthecut-offdatei.e.18thAugust,2015,mayobtain the login IDandpasswordby sendinga [email protected].

26.Aperson,whosenameisrecordedintheregisterofmembersorintheregisterofbeneficialownersmaintainedbythedepositoriesasonthecut-offdateonlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotingatthe50thAGMthroughballotpaper.Apersonwhoisnotamemberasoncut-offdateshouldtreatthisNoticeforinformationpurposesonly.

27.ShriSantoshKumarPradhan,PractisingCompanySecretary(C.P.No. 7647) has been appointed as the Scrutinizer by theBoardofDirectorsoftheCompanytoscrutinizethevotingandremotee-votingprocessinafairandtransparentmanner.

28.TheChairman&ManagingDirectorshall,atthe50thAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwith theassistanceofScrutinizer,byuseofballotpaperforallthosememberswhoarepresentatthe50thAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

29.The Scrutinizer shall after the conclusion of voting at the 50th AGM,willfirstcountthevotescastatthemeetingandthereafter

unblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyand shall make, not later than three days of the conclusionof the 50th AGM, a consolidated Scrutinizer’s Report of thetotal votes cast in favouror against, if any, to theChairman&ManagingDirectororapersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.

30.The Results declared alongwith the Report of the ScrutinizershallbeplacedonthewebsiteoftheCompanyathttp://www.engineersindia.com and on the website of KCPL at https://evoting.karvy.comimmediatelyafterthedeclarationofresultbytheChairman&ManagingDirectororapersonauthorizedbyhiminwriting.TheresultsshallalsobeimmediatelyforwardedtoBSELimitedandNationalStockExchangeofIndiaLimited.

31.TheNoticeofthe50thAGMisalsoplacedonthewebsiteoftheCompany at www.engineersindia.com and on the website ofKCPLathttps://evoting.karvy.com.

32.Detailsof thepersonwhocanbecontacted foranygrievancesconnectedwithfacilityforvotingbyelectronicmeans:-

ShriMohsinUddin,Manager M/sKarvyComputersharePrivateLimited KarvySeleniumTower-B,PlotNo.31&32 Gachibowli,FinancialDistrict Nanakramguda,Serilingampally Hyderabad-500032 TollFreeNo.18003454001 Email:[email protected]

33.The Resolutions, if passed by the requisite majority, shall bedeemed to have been passed on the date of the 50th Annual GeneralMeetingi.e.25thAugust,2015.

34.TheRouteMapofthevenueof50thAGMalongwithprominentland-markisgivenintheAnnualReport.

35.No Gifts, gift coupons or cash in lieu of gifts shall be distributed to Members in the Annual General Meeting or afterwards.

By order of the Board

(Rajan Kapur)Place:NewDelhi CompanySecretaryDate:July10,2015


16

Statement pursuant to Section 102 of the Companies Act, 2013Item No. 6

ShriAshwaniSoniwasappointedasAdditionalDirectorinthecapacityofDirector(Projects)w.e.f.1.09.2014bytheBoardofDirectorsoftheCompanypursuant toArticle83and93-Aof theArticlesofAssociationof theCompany,applicableprovisionsofCompaniesAct,2013andin termsofMinistryofPetroleum&NaturalGas,Governmentof India letterNo.C-31018/2/2012-CA/FTS:23053dated7.07.2014. In termsofSection161oftheCompaniesAct,2013,ShriAshwaniSonishallholdofficeuptothedateofthisAnnualGeneralMeeting.TheCompanyhas receivedvalidnoticealongwith requisitedeposit fromShriAshwaniSoniunderSection160of theCompaniesAct,2013proposinghiscandidaturefortheofficeofDirector.Inviewofthebackgroundandvastexperience,itwillbeintheinterestoftheCompanythathecontinuesasDirectoroftheCompany.Briefresumecontaininginter-aliathestatutorydisclosuresofShriAshwaniSonihasbeengivenintheAnnexuretotheNoticeof50thAnnualGeneralMeeting.ThetermsandconditionsofhisappointmentissuedvideMinistryofPetroleum&NaturalGas,GovernmentofIndialetterno.C-31018/2/2012-CA(Part-II)/FTS:34129dated24thJune,2015areasbelow:

1.1 Period:AppointmentofShriAshwaniSonitothepostofDirector(Projects),EILforaperiodof5yearsfromthedateofhisassumptionof chargeof thepostw.e.f., 01.09.2014ortill thedateofhis superannuationoruntil furtherorders,whichever is theearliest and inaccordancewiththeprovisionsoftheCompaniesAct,2013asamendedfromtimetotime.Theappointmentmay,however,beterminatedevenduringthisperiodbyeithersideonthreemonthsnoticeoronpaymentofthreemonthssalaryinlieuthereof.

1.2 Aftertheexpiryofthefirstyear,theperformanceofShriAshwaniSoniwillbereviewedtoenabletheGovernmenttotakeaviewregardingcontinuanceorotherwiseforthebalanceperiodoftenure.

1.3 Headquarters:HisheadquarterswillbeatNEWDELHIwheretheregisteredoffice/headquartersoftheCPSEislocated.HewillbeliabletoserveinanypartofthecountryatthediscretionoftheCPSE.

1.4 Pay:ShriAshwaniSoniwilldrawabasicpayof`80,190/-permonthinthescaleof`75,000–1,00,000/-witheffectfrom01.09.2014.

1.5 DearnessAllowance:HewouldbepaidDAinaccordancewiththenewIDAschemeasspeltoutintheDPE’sO.M.dated26.11.2008and02.04.2009.

1.6 Annual Increment :Hewillbeeligible todrawhisannual increment@3%ofbasicpayontheanniversarydateofhisappointment inthescaleandfurtherincrementsonthesamedateinsubsequentyearsuntilthemaximumofpayscaleisreached.Afterreachingthemaximumofthescale,onestagnationincrementequaltotherateoflastincrementdrawnwillbegrantedaftercompletionofeverytwoyearperiodfromthedatehereachesthemaximumofhispayscaleprovidedhegetsaperformanceratingof“Good”orabove.Hewillbegrantedamaximumofthreesuchstagnationincrements.

1.7 HouseRentAllowance:HewillbeentitledtoHRAaspertheratesindicatedinDPE’sO.M.dated26.11.2008.

1.8 Residentialaccommodationandrecoveryofrentfortheaccommodationsoprovided.

1.8.1Company’sownaccommodation:WherevertheCPSEhasbuiltresidentialflatsintheindustrialtownshiporpurchasedresidentialflatsinthecities,arrangementswouldbemadebytheCPSEtoprovideasuitableresidentialaccommodationtohim.

1.8.2Leasedaccommodation:IftheCPSEeitherintownshiporisnotabletoprovideresidentialaccommodationoutoftheresidentialflatsandpurchasedbyitintheHeadquarter,suitableaccommodationcouldbearrangedbytheCPSEbytakingthepremisesonleasebasisatheadquarterofthecompany.TheBoardofDirectorsmaydecidethesize,typeandlocalityofsuchaccommodationsasperDPEO.Ms.dated05.06.2003,26.11.2008and02.04.2009.ForpurposeofCTC,30%ofbasicpaymaybeconsideredasexpenditureonHousing.

1.8.3Self-lease:Ifheownsahouseattheplaceofhisposting(Headquarter)andisdesirousoftakinghisownhouseonself-leasebasisforhisresidentialpurposes,theCPSEcanpermithimtodosoprovidedheexecutesalease-deedinfavouroftheCPSE.TheBoardofDirectorsmaydecidethesize,typeandlocalityofsuchaccommodations.

1.8.4Repair/maintenanceof leasedaccommodation: Theresponsibilityforrepairandmaintenanceof leasedaccommodationisthatofthelessor.Leaserentwillbeallowedonlyfor12monthsinayearandnoadditionalamountwillbeprovidedtowardsrepair/maintenanceofleasedaccommodation.

1.8.5Existingleasedeeds:TheleaseagreementsignedbytheCPSEinrespectoftheaccommodationtakenonleasebasisforhim,ifany,priorto26.11.2008wouldnotbere-openedduringthependencyoftheleaseperiod.Theleasemoney,inotherwords,shouldnotbehikedtilltheexpiryofleaseperiod.Thisprovisowouldbeapplicableevenifhehadbeenpermittedtotakehisownhouseonself-leasebasis.

1.8.6Officeaccommodation:NoofficeaccommodationattheexpenseoftheCPSEwouldbeprovidedorarrangedbytheCPSEathisresidence.

1.9 RentRecovery:

1.9.1CPSE’stownship/ownflats:Recoveryofrentfortheaccommodationarrangedbythecompanyinitsowntownshiporfromthepoolofflatspurchasedbyitincitiesandtownsandsoallottedtohimwouldbemadeattherateof10%ofbasicpayfrom01.09.2014orthestandardrentfixedbythecompanywhicheverislower.WheretheCPSEhasprescribedflatratesofrecoveryinrespectofaccommodationinitstownshipsdependingoneachtypeofaccommodationi.e.recoveryofrentonuniformbasisforeachtypeofaccommodation,thenrentwouldbepaidbyhimasprescribedbytheCPSE.


17

1.9.2Leasedaccommodation:InrespectofleasedaccommodationarrangedbytheCPSE,rentwouldberecoveredfromhimattherateof10%ofbasicpayfrom(dateofjoining)01.09.2014ortheactualrentwhicheverislower.

1.10 Conveyance:AsperDPE’sOMNo.2(23)/11-DPE(WC)-GL-V/13,dated21.01.2013,therecoveryamount(AC/non-AC)forprivateuse/non-dutyrunswouldbe`2,000/-permonth.

1.11 Leave:HewillberemainedsubjecttotheLeaveRulesoftheCPSE.

1.12 OtherAllowances/Perks:TheBoardofDirectorswilldecideontheAllowancesandPerkssubjecttoamaximumceilingof50%ofhisbasicpayasindicatedinDPE’sO.M.dated26.11.2008and02.04.2009.

1.13 PerformanceRelatedPayment:HeshallbeeligibleforapprovedPRPasperDPE’sO.Ms.dated26.11.2008,09.02.2009and02.04.2009.

1.14 SuperannuationBenefits:HeshallbeeligibleforsuperannuationbenefitbasedonapprovedschemesasperDPE’sO.Ms.dated26.11.2008and02.04.2009.

1.15 Conduct,Discipline&AppealsRules:

1.15.1TheConduct,Discipline&AppealRulesframedbytheCPSEinrespectoftheirnon-workmencategoryofstaffwouldalsomutatismutandisapplytohimwiththemodificationthattheDisciplinaryAuthorityinhiscasewouldbethePresidentofIndia.

1.15.2TheGovernmentalsoreservestherightnottoaccepthisresignation,ifthecircumstancessowarranti.e.thedisciplinaryproceedingsarepending or a decision has been taken by the competent authority to issue a charge sheet to him.

1.16 RestrictiononJoiningPrivateCommercialUndertakingsafterRetirement/Resignation

ShriAshwaniSoniafterretirement/resignationfromtheserviceofthisCPSEshallnotacceptanyappointmentorpost,whetheradvisoryoradministrative,inanyfirmorcompanywhetherIndianorforeign,withwhichtheCPSEhasorhadbusinessrelationswithinoneyearfromthedateofhis/herretirement/resignation,withoutpriorapprovaloftheGovernment.Inthisconnection,asrequiredbyDPE’sOMsdated15.05.2008and08.08.2012theCPSEshallsecureabondfromtheincumbentforanappropriatesumofmoneypayablebyhim/herasdamagesforanyviolationoftheinstructionsimposedonhim/herregardinghis/herjoiningprivatecommercialundertakingsafterretirement.

2. Inrespectofanyotheritem,concerninghimwhichisnotcoveredinprecedingparas,hewillbegovernedbytherelevantRules/InstructionsoftheCPSE/Government.

YourDirectorsrecommendtheresolutionforapprovalofmembers.

NoneoftheDirectorsorKeyManagerialPersonnelortheirrespectiverelativesareinanyway,concernedorinterested,financialorotherwise,intheresolutionsetoutatItemNo.6ofAGMNotice,exceptShriAshwaniSoniwhoisproposedtobeappointed.ThisstatementmayalsoberegardedasadisclosureunderClause49oftheListingAgreementwiththeStockExchanges.

AlldocumentsreferredaboveareopenforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween10.30a.m.to12.30p.m.priortotheAnnualGeneralMeeting.

Item No. 7

Section188of theCompaniesAct2013 readwith theRule15ofCompanies (MeetingsofBoardand itsPowers)Rules,2014,asamendedprescribecertainprocedureforapprovaloftherelatedpartytransactions.TherevisedClause49oftheListingAgreementhasalsoprescribedseekingoftheshareholders’approvalformaterialrelatedpartytransactions.

Alltheproposedtransactionsputupforapprovalareinordinarycourseofbusinessandatarm’slength.PursuanttotheprovisionsoftheEquityListingAgreement,thefollowingtransactionswithRamagundamFertilizersandChemicalsLimited(RFCL)arematerialinnatureandrequiretheapprovaloftheshareholdersoftheCompanybyaspecialresolution.

Theinformationtobedisclosed,asenvisagedunderCompanies(MeetingofBoardanditsPowers)Rules,2014andamendmentstheretoandtheCompany’srelatedpartytransactionpolicyarefurnishedhereunder:

Name of the related party RamagundamFertilizersandChemicalsLimited(RFCL)

NameoftheDirectororkeymanagerialpersonnelwhoisrelated,ifany

Mr.RamSingh,Director(Finance)Mr.AjayN.Deshpande,Director(Technical)arethecommondirectorsontheBoardofEILaswellasRFCL

Natureofrelationship Engineers India Ltd. (EIL) has a 26%equity stake inRFCL and EIL isprovidingEPCMservicesfortheRamagundamproject


18

The nature, material terms, monetary value and particulars of thecontract or arrangement

Detailsgivenbelow.ThegiventransactionswithRFCLisintheordinarycourse of business and at arm’s length.

Transaction 1 :

ENGINEERING PROCUREMENT CONSTRUCTION MANAGEMENT(EPCM) SERVICES TO BE RENDERED BY EIL TO RAMAGUNDAMFERTLISERSANDCHEMICALSLIMITED(RFCL)

Natureof thecontract–EPCMservicesconsistingofLumpsumandRatereimbursableportionValueofEPCMservices–Lumpsumportion=`190croreplusservicetax.Additionally,man-dayrateforforeignvisittovendor’sworksfixed@`40815/-validtill31.03.16,andanescalationthereon@8%p.a.Material terms of the contract • ZeroDate–DateofAwardtolicensorforUreaorAmmoniaunit,

whicheverislater• Mechanical Completion - 34 months from Zero date;

Commissioning–2monthsafterMechanicalCompletion• Paymentterms–85%oftotalfeesonmonthlybasis,5%oftotalfees

onMechanicalCompletion,5%ofthetotalfeesonCommissioning,2%oftotalfeesonsubmissionofFinaldocumentation,3%uponcompletionofPGTR.

• ContractPerformanceGuarantee - SecurityDeposit in the formofCorporateGuarantee foranamountof5%of the Lumpsumvalid till commissioning. Upon commissioning, the CorporateGuaranteeshallbereplacedwithaPerformanceBankGuaranteeofequivalentamountvalidtilltheDefectLiabilityPeriod

• LiquidatedDamagestowardsdelay–Maximum5%ofLumpsumfee

• LiquidatedDamagestowardsperformanceguarantee–Maximum2.5%ofthelumpsumfee

• Limitationofliability–5%ofthelump-sumfeeexcludingcorrectiveservices and patent infringement

• DefectLiabilityPeriod–18monthsfromMechanicalCompletionor12monthsfromCommissioning,whicheverisearlier

Transaction 2:

ENTERING INTO AN ARRANGEMENT WITH RFCL IN RESPECT OFRENDERING OF SERVICES TOWARDS SELECTION OF TECHNOLOGYLICENSORONCOSTREIMBURSABLEBASIS

Nature of the contract –Arrangement for rendering of servicestowardsselectionof technology licensoroncostreimbursablebasis(includingprofitmargin)ValueofEPCMservices–Tobedeterminedoncostreimbursablebasisbasedonactualhoursspentonthework

Anyotherrelevantinformation None

TheabovetransactionswereapprovedbytheAuditCommitteeinitsmeetingheldon8thMay2015andrecommendedbytheBoardofDirectorsinitsmeetingheldon27thMay2015,totheshareholdersoftheCompanyfortheirapproval.

AsperClause49oftheListingAgreement,allentities/personsthataredirectly/indirectlyrelatedpartiesoftheCompanyshallabstainfromvotingontheresolution(s)whereinapprovalofthematerialrelatedpartytransactionsissoughtfromtheshareholders.

YourDirectorsrecommendtheresolutionforapprovalofmembers.

NoneoftheDirectorsorKeyManagerialPersonnelortheirrespectiverelativesexceptasstatedaboveareinanyway,concernedorinterested,financialorotherwise,intheresolutionsetoutatItemNo.7ofAGMNotice.ThisstatementmayalsoberegardedasadisclosureunderClause49oftheListingAgreementwiththeStockExchanges.

AlldocumentsreferredaboveareopenforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween10.30a.m.to12.30p.m.priortotheAnnualGeneralMeeting.


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Item No. 8

ShriSanjayGuptawasappointedasAdditionalDirectorandChairman&ManagingDirectorw.e.f.1.06.2015bytheBoardofDirectorsoftheCompanypursuanttoArticle83and93-AoftheArticlesofAssociationoftheCompany,applicableprovisionsofCompaniesAct,2013andintermsofMinistryofPetroleum&NaturalGas,GovernmentofIndialetterNo.C-31018/2/2014-CA/FTS:30457dated8.05.2015.IntermsofSection161oftheCompaniesAct,2013,ShriSanjayGuptashallholdofficeuptothedateofthisAnnualGeneralMeeting.TheCompanyhasreceivedvalidnoticealongwithrequisitedepositfromShriSanjayGuptaunderSection160oftheCompaniesAct,2013proposinghiscandidaturefortheofficeofChairman&ManagingDirector.Inviewofthebackgroundandvastexperience,itwillbeintheinterestoftheCompanythathecontinuesasChairman&ManagingDirectoroftheCompany.Briefresumecontaininginter-aliathestatutorydisclosuresofShriSanjayGuptahasbeengivenintheAnnexuretotheNoticeof50thAnnualGeneralMeeting.ThetermsandconditionsofhisappointmentissuedvideMinistryofPetroleum&NaturalGas,GovernmentofIndiaFileNo.C-31018/2/2014-CA(Part-I)/FTS:38392dated15th June,2015areasbelow:

1.1 Period:AppointmentofShriSanjayGuptatothepostofCMD,EILwillbeforaperiodoffiveyearsfromthedateofhisassumptionofchargeofthepostonorafter01.06.2015,ortillthedateofhissuperannuationoruntilfurtherorders,whicheveristheearliestandinaccordancewiththeprovisionsoftheCompaniesAct,2013asamendedfromtimetotime.Theappointmentmay,however,beterminatedevenduringthisperiodbyeithersideon3monthsnoticeoronpaymentofthreemonthssalaryinlieuthereof.

1.2 Aftertheexpiryofthefirstyear,theperformanceofShriSanjayGuptawillbereviewedtoenabletheGovernmenttotakeaviewregardingcontinuanceorotherwiseforthebalanceperiodoftenure.

1.3 Headquarters:HisheadquarterswillbeatNewDelhiwheretheregisteredoffice/headquartersoftheCPSEislocated.HewillbeliabletoserveinanypartofthecountryatthediscretionoftheCPSE.

1.4 Pay:ShriSanjayGuptawilldrawabasicpayof`85,040/-permonthinthescaleof`80,000–1,25,000/-fromthedateofassumptionofofficei.e.01.06.2015.

1.5 DearnessAllowance:HewouldbepaidDAinaccordancewiththenewIDAschemeasspeltoutintheDPE’sO.M.dated26.11.2008and02.04.2009.

1.6 Annual Increment:Hewillbeeligibletodrawhisannual increment@3%ofbasicpayontheanniversarydateofhisappointment inthescaleandfurtherincrementsonthesamedateinsubsequentyearsuntilthemaximumofpayscaleisreached.Afterreachingthemaximumofthescale,onestagnationincrementequaltotherateoflastincrementdrawnwillbegrantedafercompletionsofeverytwoyearperiodfromthedatehereachesthemaximumofhispayscaleprovidedhegetsaperformanceratingof“Good”orabove.Hewillbegrantedamaximumofthreesuchstagnationincrements.

1.7 HouseRentAllowance:HewillbeentitledtoHRAaspertheratesindicatedinDPE’sO.M.dated26.11.2008.1.8 Residentialaccommodationandrecoveryofrentfortheaccommodationsoprovided.1.8.1 Company’sownaccommodation:WherevertheCPSEhasbuiltresidentialflatsintheindustrialtownshiporpurchasedresidentialflatsin

thecities,arrangementswouldbemadebytheCPSEtoprovideasuitableresidentialaccommodationtohim.1.8.2 Leasedaccommodation:IftheCPSEeitherintownshiporisnotabletoprovideresidentialaccommodationoutoftheresidentialflats

andpurchasedbyitintheHeadquarter,suitableaccommodationcouldbearrangedbytheCPSEbytakingthepremisesonleasebasisatheadquarterofthecompany.TheBoardofDirectorsmaydecidethesize,typeandlocalityofsuchaccommodationsasperDPEO.Ms.dated05.06.2013,26.11.2008and02.04.2009.ForpurposeofCTC,30%ofbasicpaymaybeconsideredasexpenditureonHousing.

1.8.3 Self-lease:Ifheownsahouseatthepalaceofhisposting(Headquarter)andisdesirousoftakinghisownhouseonself-leasebasisforhisresidentialpurposes,theCPSEcanpermithimtodosoprovidedheexecutesalease-deedinfavouroftheCPSE.TheBoardofDirectorsmaydecidethesize,typeandlocalityofsuchaccommodations.

1.8.4 Repair/maintenanceof leasedaccommodation:Theresponsibility forrepairandmaintenanceof leasedaccommodation is thatofthelessor.Leaserentwillbeallowedonlyfor12monthsinayearandnoadditionalamountwillbeprovidedtowardsrepair/maintenanceofleasedaccommodation.

1.8.5 Existingleasedeeds:TheleaseagreementsignedbytheCPSEinrespectoftheaccommodationtakenonleasebasisforhim,ifany,priorto26.11.2008wouldnotbere-openedduringthependencyoftheleaseperiod.Theleasemoney,inotherwords,shouldnotbehikedtilltheexpiryofleaseperiod.Thisprovisowouldbeapplicableevenifhehadbeenpermittedtotakehisownhouseself-leasebasis.

1.8.6 Officeaccommodation:NoofficeaccommodationattheexpenseoftheCPSEwouldbeprovidedorarrangedbytheCPSEathisresidence.1.9 RentRecovery:1.9.1 CPSE’s township/ownflats:Recoveryof rent for theaccommodationarrangedby thecompany in itsown townshipor from thepool

offlatspurchasedbyitincitiesandtownsandsoallottedtohimwouldbemadeattherateof10%ofbasicpayfrom(dateofjoining)01.06.2015orthestandardrentfixedbythecompanywhicheverislower.WheretheCPSEhasprescribedflatratesofrecoveryinrespectofaccommodationinitstownshipsdependingoneachtypeofaccommodationi.e.recoveryofrentonuniformbasisforeachtypeofaccommodation,thenrentwouldbepaidbyhimasprescribedbytheCPSE.

1.9.2 Leasedaccommodation:InrespectofleasedaccommodationarrangedbytheCPSE,rentwouldberecoveredfromhimattherateof10%ofbasicpayfrom(dateofjoining)01.06.2015ortheactualrentwhicheverislower.

1.10 Conveyance:AsperDPE’sOMNo.2(23)/11-DPE(WC)-GL-V/13,dated21.01.2013,therecoveryamount(AC/non-AC)forprivateuse/non-dutyrunswouldbe`2000/-permonth.


20

1.11 Leave:HewillberemainsubjecttotheLeaveRulesoftheCPSE.1.12 OtherAllowances/Perks:TheBoardofDirectorswilldecideontheAllowancesandPerkssubjecttoamaximumceilingof50%ofhisbasic

payasindicatedinDPE’sO.M.dated26.11.2008and02.04.2009.1.13 PerformanceRelatedPayment:HeshallbeeligibleforapprovedPRPasperDPE’sO.Ms.dated26.11.2008,09.02.2009and02.04.2009.1.14 SuperannuationBenefits:HeshallbeeligibleforsuperannuationbenefitbasedonapprovedschemesasperDPE’sO.Ms.dated26.11.2008

and02.04.2009.1.15 Conduct,Discipline&AppealsRules:1.15.1TheConduct,Discipline andAppeal Rules framedby theCPSE in respect of their non-workmen categoryof staffwould alsomutatis

mutandisapplytohimwiththemodificationthattheDisciplinaryAuthorityinhiscasewouldbethePresidentofIndia.1.15.2TheGovernmentalsoreservestherightnottoaccepthisresignation,ifthecircumstancessowarranti.e.thedisciplinaryproceedingsare

pending or a decision has been taken by the competent authority to issue a charge sheet to him. 1.16 RestrictiononJoiningPrivateCommercialUndertakingsafterRetirement/Resignation ShriSanjayGuptaafterretirement/resignationfromtheserviceofthisCPSEshallnotacceptanyappointmentorpost,whetheradvisoryor

administrative,inanyfirmorcompanywhetherIndianorforeign,withwhichtheCPSEhasorhadbusinessrelationswithinoneyearfromthedateofhis/herretirement/resignation,withoutpriorapprovaloftheGovernment.Inthisconnection,asrequiredbytheDPE’sOMsdated15.05.2008and08.08.2012theCPSEshallsecureabondfromtheincumbentforanappropriatesumofmoneypayablebyhim/herregardinghis/herjoiningprivatecommercialundertakingsafterretirementasdamagesforanyviolationoftheinstructionsimposedonhim/her.

2. Inrespectofanyotheritem,concerninghimwhichIsnotcoveredinprecedingparas,hewillbegovernedbytherelevantRules/InstructionsoftheCPSE/Government.

YourDirectorsrecommendtheresolutionforapprovalofmembers.NoneoftheDirectorsorKeyManagerialPersonnelortheirrespectiverelativesareinanyway,concernedorinterested,financialorotherwise,intheresolutionsetoutatItemNo.8ofAGMNotice,exceptShriSanjayGuptawhoisproposedtobeappointed.ThisstatementmayalsoberegardedasadisclosureunderClause49oftheListingAgreementwiththeStockExchanges.AlldocumentsreferredaboveareopenforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween10.30a.m.to12.30p.m.priortotheAnnualGeneralMeeting.

By order of the Board

Place:NewDelhi (Rajan Kapur)Date:July10,2015 CompanySecretary


21

Annexure to AGM Notice

Brief Resume of Directors, retiring by rotation and eligible for re-appointment vide Item Nos. 3 & 4 of Notice of 50th AGM:

Item No. 3

Name : Ms. Veena Swarup

Father’sName : Lt.Col.ShantiSwarup

Designation : Director(HR)

OfficialAddress : EngineersIndiaLimited 1,BhikaijiCamaPlace,NewDelhi-110066

DateofBirth : 7thJune,1956

Qualifications : MBA,LucknowUniversity

Experience : Shehasmorethan3decadesofexperience in thefieldsofhumanresource inthe Petroleum and Natural Gas sector. Prior to joining EIL, Ms. Swarup waswithONGC since 1983,where she held several assignments includingHead ofPerformanceManagement&BenchmarkingGroup,whichsteeredPerformanceContracts & Service Level Agreements between board level and unit chiefs.HerotherassignmentincludedsettinguptheONGCEnergyCenter,HeadHRatvariousUnitsofONGC,PolicymakingandNegotiationswithCollectives.Shealsoheaded the SAP-HRProject forONGC,whichwas the largest Project inAsia atthattime.Shewasdeputed toMRPLasachangeagent to initiatealigning theCompanytoPublicSectorrequirements.ShealsohadashortstintinDirectorateGeneralofHydrocarbonsastheHeadofCorporateAffairsandHumanResources.Shehas been associatedwith several prestigious CommitteesofDPE& SCOPEtoreviewvariouspolicieswithreferencetoPublicSectors.AsDirector(HR),EILsheiscreditedforbringingatransformationalchangeinthefunctioningofHRinEILandhastakenseveralpathbreakinginitiativestowardsTalentManagement,Training&Development,EmployeeCommunication,CSR&BrandBuildingwithaviewto takeEIL togreaterheights.Shehasalsobeenrecognized in thefieldof Management by various agencies. Some of the Awards recently conferredto her include Legend Director of the Year 2014 by News Ink Media, IndianAchievers’AwardforCorporateLeadershipinHumanResourcesforoutstandingachievementsinBusiness&SocialServicebyIndianAchieversForum.

Other Directorships : Nil

OtherCommitteeMemberships/Chairmanships : Nil

NumberofBoardMeeting(s)attended : 7

ShareholdinginEIL : Nil

RelationshipbetweenDirectors/KeyManagerialPersonnelinter-se : None


22

Item No. 4

Name : Shri Ajay Narayan Deshpande

Father’s Name : Shri Narayan Raghunath Deshpande

Designation : Director(Technical)


DateofBirth : 2ndJanuary,1958

Qualifications : ChemicalEngineering–NagpurUniversity PostGraduateinSystems&Management,IIT,Delhi AdvanceManagementProgrammeatASCI-Hyderabad

Experience : He has worked in various capacities of our Company over the past 35 years,includingoilandgas,refineryandpetrochemicalssector,coveringthefunctionsofprocessdesign/development,researchanddevelopment,plantoperationsandsafety,heat&masstransfer,environmentalengineering,specialistmaterialsandmaintenance services and information technology in the Technology Division.Hehas exposure toworking in ProjectsDivision also.Hehasbeen responsiblefor the business growth and technology initiatives of the Company and wasalso responsible for meeting the company’s targets on R&D and sustainabledevelopment. He has co-authored seven patent applications on behalf of theCompany. He has served as Director on the Board of Certification EngineersInternational Limited,awhollyownedsubsidiaryofEngineers IndiaLimited fortwoyearsandiscurrentlyontheBoardofRamagundamFertilizersandChemicalsLimited,EIL’sJVwithNFLandFCILtoundertakeabrownfieldprojectforAmmonia/UreaproductionatRamagundam.AsDirector(Technical),heisnowresponsibleforallTechnologyandEngineeringDivisionswithintheCompany.

OtherDirectorships : RamagundamFertilizersandChemicalsLimited



ShareholdinginEIL : 3940equityshares



23

Annexure to AGM Notice

Brief Resume of Additional Directors vacating office at 50th AGM and proposed to be appointed vide Item Nos. 6 & 8 of Notice of 50th AGM:

Item No. 6

Name : Shri Ashwani Soni

Father’s Name : Shri Tilak Raj Soni

Designation : Director(Projects)


DateofBirth : 16thDecember,1956

Qualifications : BachelordegreeinMechanicalEngineeringfromIIT-BHU,Varanasi,India MBAdegreefromFacultyofManagementStudies(FMS),Delhi

Experience : Under his leadership, Project divisions are providing services for Refinery,Petrochemical, Power, Metallurgy, Pipelines & Off-shore projects. He alsooversees Project Services (Planning), Construction Management and RegionalofficesatVadodara,Chennai&Kolkata.HejoinedEILin1979asaManagementTrainee.Hehasover36yearsofdiversifiedexperience inexecutionofRefinery&Petrochemical projects, onshore&offshore terminals, captivepower plants,onshore&offshorePipelinesandNon-FerrousMetallurgyProjects.HeisamemberoftheOilIndustrySafetyDirectorate(OISD)ofIndiaresponsibleforpreparationof Standards related toHydrocarbonPipelines andBureauof Indian Standards(BIS).ShriSonihaschairedanumberofconferencesandpresentedmanypapersinnationalandinternationalConferences/ForumsincludingpipelinesconferencesorganizedinIndia.HeisalsoonthePanelofASMEB31CommitteeforfinalizationofASMEcodes.

Other Directorships : Nil



ShareholdinginEIL : 100equityshares(holdingjointlyassecondholder)



24

Item No. 8

Name : Shri Sanjay Gupta

Father’sName : ShriJyotiSwaroopGupta

Designation : Chairman&Managing Director andAddl.Charge-Director(Commercial)


DateofBirth : 29thOctober,1957

Qualifications : B.E.fromIIT,Roorkee

Experience : Hehasabout34yearsofexperienceinimplementationofmegagrassrootsandbrown field projects in Refineries and Petrochemicals. He was also entrustedwith the task of leading the implementation of the first everOBE Project andpioneeredthesameintheHydrocarbonsectorinIndia.SeveralprojectsonthismodehavebeenimplementedbytheCompany,thereafter.Hehashithertoalsobeenadditionally responsible forall the commercial functionsof theCompanyincluding Estimation, Contracting, Inspection and Business Development. Hehasbeenengagedinconsolidation,internationalizationandstrategybuildingfortheCompany.The improvementofGovernancefunctionoftheCompanywhileproviding emphasis on project delivery to the owners is the cardinal principlearoundwhichalltheeffortsarebeingexpanded.

OtherDirectorships : CertificationEngineersInternationalLtd.(asPart-timeChairman) TEILProjectsLtd.(asPart-timeChairman) EILAsiaPacificSdn.Bhd. JabalEILIOTCo.Ltd.



ShareholdinginEIL : 60equityshares



25

DearMembers,Your Directors have great pleasure in presenting the 50th Annual Report for the financial year ended 31st March, 2015 along withAuditedStatementofAccounts,theAuditors’ReportandReviewoftheAccountsbytheComptrollerandAuditorGeneralofIndia.

2014-15 in Retrospect

YourCompany sustained its goodperformanceduring FY2014-15.ThekeyhighlightsofthefinancialperformanceoftheCompanyfortheyear,asstatedintheauditedfinancialstatement,alongwiththecorresponding performance for the year are as under:Financial Performance

(Figuresin`Lakhs)

No. Description 2014-15 2013-14

A(i) INCOMEFROMSERVICESRENDERED 171300 182359

A(ii) OTHERINCOME 27311 23209

TOTAL INCOME 198611 205568

B. EXPENDITURE

i) Cost of rendering services 149892 134310

ii) Depreciation 1963 1455

TOTAL 151855 135765

C PROFIT BEFORE TAX (A-B) 46756 69803

D Provision for Current tax 15924 21375

E Provision for Deferred Tax (90) 550

F Prior Period Tax Adjustments,Short/(Excess)

124 (98)

G PROFIT AFTER TAX (C-D-E-F) 30798 47976

H Dividend 16847 21900

I Tax on Dividend 3302 3654

J CSRActivityReserve (20) 609

K RetainedProfits 10669 21813

L RESERVES & SURPLUS 239943 229329

M NET WORTH 256790 246176

Segment wise Performance (Figuresin`Lakhs)

Consultancy & Engineering Projects Year ended 31.03.2015

Year ended 31.03.2014

Segment Revenue

Consultancy&EngineeringProjects 94797 110907

Turnkey Projects 76503 71452

Total 171300 182359

Segment Profit From Operations



Total (A) 28393 53229

Prior period adjustment 818 277

Interest 23 6

Otherun-allocableexpenditure 8107 6352

Total (B) 8948 6635

Other Income (C) 27311 23209

Profit Before Tax (A-B+C) 46756 69803

Capital Employed (*) 256790 246176

(*) Fixed Assets used in the Company’s Business or LiabilitiesContractedhavenotbeenidentifiedtoanyofthereportablesegmentsas the fixed assets and support services are used interchangeablybetweensegments. Accordingly,nodisclosurerelatingtosegmentwiseassetsandliabilitieshasbeenmade.

Dividend The Board of Directors of the Company has recommended a finaldividend of `2/-pershare(of facevalueof`5/-pershare) forthefinancialyear2014-15,inadditionto`3/-pershareinterimdividendalready paid during the year.With this, the total dividend for thefinancial year 2014-15 works out to `5/- per share amounting to`16846.83lacsexcludingdividenddistributiontax.Thepaymentoffinal dividend is, however, subject to approval of the shareholdersintheensuingAnnualGeneralMeetingoftheCompanywhichshallbe paid to theMembers whose names appear in the Register ofMembersaswellasbeneficialownershippositionprovidedbyNSDL/CDSLason18thAugust,2015.

Investor Relations EILisconstantlystrivingtoimproveitsrelationswithallstakeholdersand build a long term, healthy relationship based on trust andtransparency. The Company treats all stakeholders at par and maintains disclosure and transparency in sharing information onfinancialperformance,businessoutlookandstrategicdevelopments.YourCompanyisequallycommittedtostrictcompliancetodisclosureand government norms as per applicable rules and guidelines and maintains an impartial treatment with all its stakeholders. YourCompany aims to achieve this by fulfilling its responsibilities toshareholders through fair disclosure of information and bilateralcommunication.

EILiscommittedtosharinginformationwithshareholders,investors,financial analysts, press and other stakeholders. TheManagementand InvestorRelations (IR)Cell regularly engage in communicationwith Investors and Analysts through One-on-One meetings,conference calls, conference participation and road shows, ifrequired,aswellasactivelyorganizingandparticipatingininvestorevents, such as Annual General Meetings, Press Conferences andAnalyst Conferences. The IR team utilizes various communicationchannels and materials including presentations, press releases,financial fact sheets, business outlook and strategic developmentsfordisseminatingpertinentandtimelyinformation.

Management Discussion & AnalysisA separate report on Management Discussion and Analysis is annexed to this Report.

Directors’ Report


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Consultancy Assignments (Domestic)Offshore Oil and GasDuring the year, EIL continued to make considerable progress inOffshoreOil&GasandLNGsectorsinIndiaandoverseas.

ThefollowingconsultancyassignmentsweresuccessfullycompletedinOffshoreOil&Gasduringtheyear:

• ProjectManagementConsultancy(PMC)servicesforWell-head,Process-cum-LivingQuarters Platformand Submarine Pipelinesof Deen Dayal Field Development Project of Gujarat StatePetroleum Corporation Limited (GSPC) at Mallavaram, AndhraPradesh.

• Re-qualification and Re-certification of 50 offshore jackets forONGC.

• FrontEndEngineeringDesign(FEED)forMarineWorks,StorageTanks and Re-gasification Terminal for Pertonet LNG Limited’s 5MMTPAGangavaramLNGTerminal.

During the year, EIL secured the following orders against stiffcompetitionandimplementationhastakenoffinrightearnest:

• RemedialmeasuresforONGC’s42”SBHTPipelineatUmharatseabeach.

• FEED for Marine Works, Storage Tanks and Re-gasificationTerminal for LNGTerminalatChharaofHPCLShapoorji EnergyLimited (joint venture project of HPCL and Shapoorji EnergyLimited).

Additionally,thefollowingOffshoreOil&Gasprojectsarecurrentlyunderexecution:

• Pre-award activities for ONGC’s Water Injection South (WIS)platform.

• PMCforDahejExpansionPh-IIIAProjectofPetronetLNGLimited.

• RevampingofUnmannedplatforms(50nos.)Phase-IIofONGC.

• Consultancy services for post award activities forONGC’s BPA-BPB revamp project.

Onshore Oil & Gas EILisprovidingPMCservicesforCairn’sAssociatedFacilitiesProjectat Mangala Processing Terminal (MPT) comprising Storage Tanksand Export System, Power Generation & Distribution system andintegratedbalanceworks.

PipelinesEILhas a significant track record indesign andexecutionof cross-countrypipelinesfortransportationofcrudeoil,refinedpetroleumproducts,naturalgasandLPG.Thefollowingassignmentshavebeensuccessfully completed during the year:

• DetailedFeasibilityReport(DFR)for1400kmDhamra-NumaligarhCrudeOilPipelineforNumaligarhRefineryLimited(NRL).

• DFR for 672 km Capacity Augmentation of Vijaipur-Auriya-PhulpurGasPipelineforGAIL(India)Limited.

• DFRfor1850kmPhulpur-HaldiaGasPipelineincludingspurlinesforGAIL.

• SupplyofgasthroughspurlinestoHubbali/DharwartwincitiesforGAIL.

• 10” x 26 km LPG Onshore/Offshore Pipeline from Mumbai

Refineries of Bharat Petroleum Corporation Limited (BPCL)/Hindustan Petroleum Corporation Limited (HPCL) to Uran forBPCL.

• 24”HDDGangaRivercrossingforGAIL.Thefollowingmajorpipelineprojectsareinprogress:• 12”/8”x450kmKochi-Coimbatore–Erode-SalemLPGPipeline

for BPCL.• 18”x45kmRe-routingofMumbai-ManmadPipelineforBPCL.• 24”/18”/8”/4”x243kmReplacementofKGBasinPipeline.• 36”x860kmMehsana-BathindaPipelinealongwith24”/18”/

16”/8”x726kmspurlinesforGSPLIndiaGasnetLimited(GIGL).• 36”/30”/24” x 1428 km Mallavaram-Bhopal-Bhilwara-Vijaipur

Pipelinealongwith30”/24”/18” x477kmspurlines forGSPLIndiaTranscoLimited(GITL).

• 12”x100kmHazira-DahejNaphthaPipelineforONGC.• 18”/16”x275kmNaturalGasPipelinefromVijaipurtoKotaand

SpurlinetoChittorgarhforGAIL.• 36”HDDSatlujrivercrossingand18”HDDYamunarivercrossing

forGAIL.• 8”HDDNarmadarivercrossingforONGC.• 16”HDDSalonirivercrossingforGAIL.• UpgradationofpumpingstationsforNaharkatiya-BarauniCrude

OilPipelineofOilIndiaLimited(OIL).

Petroleum RefiningDuring theyear, theCompanyachievedsignificantprogressonthefollowingmajorpetroleumrefineryprojects:• TheIntegratedRefineryExpansionProjectofBPCLKochiRefinery

aimsto increaserefiningcapacityfromthecurrent9.5MMTPAto 15.5 MMTPA and comprises process units viz., CDU/VDU,DHDT, VGO-HDT, Petro FCC, DCU, associated utilities includingCPP,OffsitefacilitiesandrevampingofexistingNaphthaHydro-Desulphurization and Semi-Regenerative Reformer units.Engineeringactivitiesfortheprojecthavebeencompletedwhiletheconstructionactivitiesareprogressinginfullswing.

• EIL is providing EPCM services for the CDU-4 project of BPCLMumbaiRefinery.Designedforacapacityof6MMTPA,thenewgrass root facilities will replace the ageing CDU-1 and CDU-2Units. Theproject is in advanced stageof implementationandthepre-commissioningactivitieshavecommenced.

• PMCservicesfortheinstallationofanewDieselHydrotreaterunit(2.4MMTPA)andAssociatedFacilitiesatBPCLMumbaiRefinerycommencedduringtheyear.ProcurementofcriticalLongLeadItems(LLIs)hasbeeninitiated.

• EPCM services for conversion of CRU to ISOM and revamp ofNHDS to NHT at BPCL Mumbai Refinery commenced duringthe year to maximize Isomerate yield and Octane Number and produce special products like Food Grade Hexane. Detailedengineering and procurement of LLIs are under progress.

• ATailGasTreatingUnitusingindigenoustechnologydevelopedbyEILR&DisbeinginstalledintheexistingSulphurRecoveryUnitofHPCLVizagRefinerytoachieveanoverallsulphurrecoveryof99.9%. Detailed engineering and all procurement activities forthe project have been completed.

• TheCCUReactorReplacementProjectatBPCLMumbaiRefinerywassuccessfullycommissionedduringtheyear.


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• Basic design services for Low Cost Debottlenecking of BORL,Binahavecommenced.Thiswillaugment the refinerycapacityfrom6MMTPAto7.5MMTPA.FinalizationofLicensorsisunderprogress.

• PMCservicesforimplementationof366MWCaptivePowerPlantof IOCL’s 15 MMTPA Paradip Refinery Project. Commissioningactivitiesareprogressinginfullswing.

• Under Phase-III Refinery Expansion Project, the capacity ofMangaloreRefineryofMRPLhasbeenincreasedto15MMTPAbyaddinganewCDU/VDUof3MMTPAandassociatedfacilities.The Project has been implemented on hybrid mode of PMC-LSTK,OBE and EPCM.All process units and associated utilitieshave been completed.

• Wax Project of Numaligarh Refinery Limited was successfullycommissioned during the year achieving the design product quality. The project was based on inhouse Dewaxing/DeoilingtechnologydevelopedjointlybyEIL&IIP.

• Procurement and construction activities are in progress forEPCMServicesofNewCokeChamberandAlliedModernizationFacilitiesofIOCL,Barauni.

• Process,detailedengineeringandprocurementactivitiesare inprogress for theEPCMServices contract for INDAdeptG Unit of IOCL,Guwahati.Pilingwork iscompletedandCivil&structuralworksareinprogress.

• Pre-awardactivitiesareinprogressforPMCservicesforDistillateYield ImprovementProjectat IOCLHaldiaRefinery.TheProjectshall be executed in hybrid mode.

• Major engineering has been completed for the EngineeringServicesforAugmentationofPurgeTreatmentUnitinIOCLHaldiaRefinery.

• MajorengineeringhasbeencompletedforEngineeringServicesforRevampofINDMAXUnitofIOCLGuwahatiRefinery.

PetrochemicalsSignificantprogresshasbeenmadeonthefollowingpetrochemicalprojects:

• DahejPetrochemicalComplexofONGCPetroadditionsLimited(OPaL)isbeingexecutedonPMCmode.TheProjectconsistsof1100KTADualFeedEthyleneCracker,HDPE,LLDPE/HDPESwingUnit,PPunits,CaptivePowerPlantandassociatedUtilitiesandOffsites.TheDualFeedCracker,HDPE,PPandButeneunitshavebeenmechanicallycompletedandLLDPE/HDPESwingUnitisinadvancedstageofcompletion.Anumberofutilitieshavebeencommissioned.

• AssamGasCrackerProject,agrass-rootpetrochemicalprojectofBrahmaputraCrackerandPolymerLimited,isbeingexecutedbyEILonEPCMmode.TheprojectcomprisesGasSweeteningUnit,C2+ Separation Unit, Gas Dehydration Unit, Ethylene Cracker,LLDPE/HDPE,PPandsupportingUtilities,OffsitesandPipelines.MechanicalCompletionhasbeenachievedforthecomplexandpre-commissioning/commissioningactivitiesareinprogress.Theavailability of petrochemicals from the project will boost thedevelopmentofplastic industry in theNorth-Eastern regionofthe country.

• Petrochemical Complex-II Project at Vijaipur, Madhya PradeshandPata,UttarPradeshofGAILisbeingexecutedonEPCMroute.The Petrochemical complex consisting of Gas Sweetening and

Gas Processing units with associated Captive Power Plant andUtilitiesandOffsiteatVijaipurandGasCrackercomplex,GPU-II,LLDPE/HDPE(Swingunit)andButene-1UnitsatPatahavebeensuccessfullycommissioned.ThePlantisunderstabilization.

• EngineeringactivitieshavecommencedforIntegratedMethanoland Acetic Acid Plant of Assam Petrochemical Limited atNamprup,Assam.

• Workon thePropyleneDerivativePetrochemicalPlantofBPCLKochiRefinerycomprisingAcrylicAcidUnit,Oxo-AlcoholUnitandAcrylates Unit has commenced.

Strategic StoragesDominance of fossil fuel in the energy basket of India is poised to continue. Therefore, the need for energy security has been a keyimperative for Government of India. Recognizing the country’sdependenceonimportedoilandgasresources,GovernmentofIndia(GoI)isimplementingtheStrategicCrudeOilStorageProgrammeintwophases.

UnderPhase-IoftheStrategicStorageprogramme,EIL isprovidingPMCservicestoIndianStrategicPetroleumReservesLimited(ISPRL)for construction of underground unlined rock cavern storages inVishakhapatnam,MangaloreandPadurhavingatotalcapacityof5.33MMT.Duringtheyear,significantprogresshasbeenachievedandtheVishakhapatnam storage is receiving crude oil. Pre-commissioningactivitiesareunderwayatMangaloreandPadur.

ThefeasibilitystudiesforthePhase-IIStrategicStorageprogrammehavebeenundertakenbyEILandtheDPRshavebeensubmittedtoISPRLforacapacityof12.5MMTplannedatfourselectedlocations.

MetallurgyThefollowingkeymetallurgyprojects/assignmentswerecompletedduring the year:

• CostUpdationforAdityaandMahanAluminiumSmelterProjectsofHindalcoIndustriesLimited(HIL).

• ElectricalSafetyAuditforHirakudSmelterofHIL.

• Installation of Fixed Long Distance Conveyor facility and SemiMobile Crushing Plant of Nalco Mines at Damanjodi.

• Scoping Study for Mechanised Production and Evacuation ofIron Ore from Kurmitar Project of Odisha Mining CorporationLimited (OMC). Based on the study report, OMC has awardedthepreparationofdetailedfeasibilityreporttoEILwhichisunderprogress.

ThefollowingProjects/Assignmentsareunderprogress:• Appointment of Mine Developer-cum-Operator for Kapurdi

andJalipaMinesofBarmerLigniteMiningCompanyLimited inRajasthan.

• FeasibilityStudyforrevampingofRectifierStation-IforHirakudSmelterofHIL.

InfrastructureIn the Infrastructure sector, EIL is providing a wide spectrum ofservicessuchasProjectManagement,ThirdParty Inspection (TPI),Quality Assurance, Independent Engineer & Lender’s Engineerservices,ProjectAppraisalandprojectexecutionservices.


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The following infrastructure projects were completed during theyear:

• Data Centre Complexes for Unique Identification Authority ofIndia(UIDAI)atManesarandBengaluru.

• Preparation of Major Development Plan for construction ofSouth-EastPierofTerminalBuilding,TunnelRoadunderRunwayandNewParallelTaxiwaywithassociatedfacilitiesforChhatrapatiShivajiInternationalAirportinMumbai.

• Construction of Housing Blocks of Rajiv Gandhi Institute ofPetroleumTechnology(RGIPT),Jais,U.P.

• EIL’sGreenofficecomplexesatGurgaonandChennai.

The followingmajorprojectsweresecuredby theCompany in theInfrastructure sector during the year:

• PMCservicesforHeadQuartersBuildingofUIDAIinDelhi.

• PMC services for Inland Container Depot for Container CorporationofIndiaLimited.

• PMCservicesforAir-conditioningandLabEquipmentofChemicalLaboratory Building of Delhi University.

• Extension of TPI services for Infrastructure Projects of PuneMunicipalCorporation.

• TPIservicesforWarehousesofMaharashtraStateWarehousingCorporation.

Fertilizers Pursuant todeclarationofNew InvestmentPolicy in January,2013bytheGovernmentofIndiaanditsamendmentinSeptember,2014,theFertilizersectorinIndiaisexpectedtogrowinthenearfuture.EILisleveragingitscapabilitiesandglobalnetworktotapsignificantbusinessopportunitiespresentedbythissectorinIndiaandOverseas.The Company has achieved considerable success in this sector.

During theyear,EILexecuted theDetailedEngineeringassignmentfor M/s Indogulf Fertilizer for the revamp of Ammonia and Ureaplant at Jagdishpur. Construction assistancewas also provided forsuccessfulexecutionofrevampschemes.

AspartofstrategicinvestmentsintheFertilizersector,EILhastakenequity participation in Revival of Ramagundam Fertilizer ProjectalongwithNational Fertilizer Limited and Fertilizer Corporation ofIndiaLimited.Ajointventurecompany(M/sRamagundamFertilizersandChemicalsLimited)hasbeenformedtopilotthisproject.LetterofAwardtoEILforcarryingouttheexecutionofthisprojectonEPCMmode has been issued.

Capitalizing on the availability of cheap feedstock at strategic overseas locations for new fertilizer projects, EIL has also baggedmajorprojectsabroadagainststiffinternationalcompetition.

Water and Waste ManagementThe following major projects/assignments were secured by theCompany during the year:

• EngineeringConsultancyServicesfor5MLDseawaterdesalinationplantatOdishaSandComplex,Ganjam,OdishaforBhabaAtomicResearchCentre(BARC).

• PreparationofDPRforabatementofPollutioninBuddhaNalainLudhianaforPunjabWaterSupply&SewerageBoard.

TheInterceptorSewerProjectofDelhiJalBoard(DJB)forabatement

of pollution in River Yamunawitnessed significant progress duringtheyear.Package-1isreadyandPackages-2to6arepartiallyready.

PowerThePowersectorcontinuedtobeakeyfocusareaforEILwiththeCompany executing projects in Nuclear, Solar & Thermal Powersectors.

Nuclear• IntheNuclearpowersector,EILiscarryingoutmajorengineering

worksforthegreenfieldNuclearFuelComplexatKota,Rajasthanfor Nuclear Fuel Complex. During the year, engineering andprocurement activities progressed, while site activities wereinitiatedwiththeawardofsitegradingtender.

• The assignment from Nuclear Recycle Board, Bhabha AtomicResearch Centre for carrying out seismic evaluation for twoclustersofbuildingsatIndiraGandhiCentreforAtomicResearch(IGCAR),Kalpakkamandre-qualifyingthemforsafeoperationhasbeencompleted. In thisproject,EIL implementedanumberofstate-of-the-art technologies pertaining to seismic qualificationforthefirsttimewhichincludesseismicassessmentofstructuresbasedonpushoveranalysisandprobabilisticassessmentofthestructures using fragility curves.

Thermal• EILisimplementingaCaptiveCogenerationPowerPlantforthe

first time on EPCM mode for BPCL Kochi. The project entailssettingupoffacilitiesforgenerationof103.5MWofpowerand830TPHofsteam.Duringtheyear,theCompanycompletedallorderingandmajorprogresswasachievedinsupplyanderection.

• BORLhadappointedEILasPMCfor160TPHUtilityBoilerPackage.Boilerlightupwasachievedinarecordtimeof17monthsandsteam exported to process units.

• EILhastakenupthefeasibilitystudyforutilizationof2640TPDPetcoke for generation of refinery steam and power for IOCLPanipat.

• Adani Enterprise Limitedhas entrustedEILwith a comparativestudyofcoaltopolygenandcoaltopowerfor29MMTPAofcoalatChhattisgarhwhichisunderprogress.

Solar/Renewables• EIL provided EPCM services for the 1x125MW Solar Thermal

Power project of Reliance Infrastructure Limited which wassynchronized and commissioned during the year.

• EILpreparedFeasibilityReport forsettingupaSpecialPurposeVehicle for implementation of large scale grid connectedrenewableenergyprojectsinIndiaforMinistryofPetroleumandNaturalGas(MoPNG).

• DetailedFeasibilityStudyfor installationofSolarPVsystemsatGAIL’spetrochemicalcomplexinPata,U.P.isinprogress.

Overseas Assignments EIL has a significant global footprint, particularly in the MiddleEast and Africa, where it is executing a host of hydrocarbon andpetrochemical projects for global energy majors.

Duringtheyear,thefollowingoverseasprojectswerecompletedbythe Company:

• PMCservicesforRehabilitationandAdaptationprojectofSkikda


29

Refinery of SONATRACH, Algeria. The plant is currently underoperationatfullcapacityof16.5MMTPA.

• PMCServicesforEPCPhaseofHabshanAcidGasFlareRecoveryprojectofGASCO,AbuDhabi.

• Study for Crude Unit Tower Debottlenecking at Abu DhabiRefineryofTakreer.

• FEEDDevelopmentforinstallationofFlowOrificeinRawEthaneLine to Fuel Gas System & Treater in Train 3 for GASCO, AbuDhabi.

• EngineeringConsultancyforZAPReplacementofCorrodedpipingnetworkforADMAOPCO,AbuDhabi.

• PMCServicesforDasTemporaryAccommodationEPCprojectofADGASatDasIsland,AbuDhabi.

EILachievedsubstantialprogressinthefollowingprojects:

• Detailed Engineering & Procurement services for Slop SystemRehabilitation&DrainsUpgrade atUmmShaif Super Complex(USSC)ofAbuDhabiMarineOperatingCompany(ADMA-OPCO).

• PMCservicesforEPCofUpgrade&ReplacementofSubstationsprojectPhase-1ofADGAS.

• PMCservicesforPipelineprojectsofGASCO,AbuDhabi.• Licensor selection & FEED for Liwa Plastics Project (Integrated

Petrochemical Complex) of Oman Refineries and PetroleumIndustriesCompany(Orpic)atSohar,Omanhavebeencompletedduring the year and the project is now nearing the tenderingstage.

• EPC tenders have been issued and procurement for long leaditems has been initiated for RFCC revamp and various unitimprovementsworkatSoharRefinery,Oman.

• FEEDhasbeenpreparedforPetcokeStorage&HandlingFacilityat Sohar Port, near Sohar Refinery and EPC tender has beenfloatedbyclient.

• FEED Package preparation is under progress for GreenfieldProject of Brass Fertilizer Company Limited (BFCL)’s GreenfieldProjectconsistingofAmmonia(2200MTPD),Urea(3850MTPD)andMethanol(5000MTPD)unitsalongwithassociatedUtilitiesandOffsitesincludingdispatchfacilityandJettyatBrassIslandinNigeria.

• PreparationofPre-FeasibilityStudyReportisunderprogressforEngineeringConsultancyservicesforsettingupanAmmoniaandUreaFertilizercomplexinextremeweatherconditionsinSakhaProvince of Russia.

• UnderPMCservicesforRehabilitationandAdaptationofAlgiersRefineryofSONATRACH,substantialprogresshasbeenachievedonconstructionfront.

• AdvanceFEEDstudiesforKuzey-MarmaraFixedOffshoreplatformandPipelinesofTurkishPetroleumCorporation,Turkey.

Major assignments secured in the overseas market include:

• DangoteRefineryandPetrochemicalProjectcomprisinga460,000BPSD grassroot Petroleum Refinery& 690 KTPA PetrochemicalComplex at Lekki Free Trade Zone, Nigeria for Dangote OilRefiningCompany. Themajorprocessunits inRefinery includeCrudeDistillationUnit(CDU),aResidueFluidCatalyticCrackingunit,MSBlock,aMildHydrocrackerunit,AlkylationandSulphuricAcidRegenerationUnit,ProductTreatmentunits,PolypropyleneUnit,SulphurblockandassociatedUtilitiesgeneration&Offsite

facilities.TheProjectfacilitiesincludeCrudeoilreceipt&storageincludingtwoSPMswithassociatedoffshore/onshorepipelines.Theproductdispatchfacilitiesincludeproductdisposalthroughroad aswell as ships. Dispatch of products comprise pumpingfacility,onshore&offshorepipelineaswell as threeSPMs.EILisprovidingBasicDesign,EngineeringandProjectManagementservicesforthisprestigiousproject.

• PMCforLiwaPlasticsProjectofOrpic,Oman.

• PMC for RFCC unit revamp and other improvement works atSoharRefineryforOrpic,Oman.

• PMCforPreparationofFEED&awardofEPCContractforPetcokeStorage&HandlingfacilityatSoharPortforOrpic,Oman.

• PMCServicesforAmmonia,Urea&MethanolProjectforBrassFertilizer,Nigeria.

Turnkey Projects EILisexecutinganumberofturnkeyprojectseitheronLSTKmodeoron the ‘OpenBookEstimate (OBE)’basis.SubstantialprogresswasmadeinthefollowingLSTK/OBEjobsunderimplementationduringthe year:

• DetailedEngineeringandorderingactivitiesareinadvancedstageofcompletionforResidUpgradationProjectofCPCL,Chennai.Allmajorlongleaditemshavebeenordered.Civil/structural,U/GPiping,Mechanical&A/GPipingworksareinprogress.

• PFCC Unit, Sulphur Recovery unit and Polypropylene units ofMangalore Refinery Expansion Phase-III project of MRPL havebeen successfully commissioned.

• SouthJettyPipelineprojectforloading/unloadingofpetroleumproductsandcrudeoilforIOCLParadipRefinery,beingexecutedonOBEmode,hasprogressedwellduringtheyear.

• GSPC, as a part of Deen Dayal Field Development Project,has implemented an Onshore Gas Terminal (OGT) facility atMallavaram in Andhra Pradesh. The project has been executed byEILonOBEmodeandconsistsoftwotrainsof100MMSCFDeach.MechanicalCompletionoftheplantwasachievedduringthe year.

Duringtheyear,EILwassuccessfulinsecuringthejobforexecutingHaziraModificationJobunderDamanDevelopmentProjectonOBEbasisfromONGC.

Performance of DivisionsProcess Design & Development The Process Design & Development Division of EIL continued itseffortstosecurebusinessfromnewclientsbesidesservingvariousexistingclients,bothinIndiaandinoverseas.ProminentassignmentsundertakenbytheDivisionduringtheyearincludethefollowing:

• DetailedFeasibilityReport (DFR) forastate-of-the–artRefinerycumPetrochemicalComplex forHPCL forprocessingRajasthancrude located at Barmer. The refinery capacity is 9MMTPAwith maximization of Petrochemicals like Polypropylene andPolyethylene.

• Configuration Study and DFR for HPCL’s Mumbai Refinery forexpansionof crudeprocessingcapacity from7.5MMPTAto9.5MMPTA.

• Configuration Study and Capacity Expansion study for BPCL’s


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MahulRefineryforenhancingcrudeprocessingfrom12MMTPAto14MMTPA.

• WaxProductionfacilitiesoftheNumaligarhRefineryhavebeensuccessfully commissioned.

• Residual and Detailed Engineering of a grassroot CrudeDistillationUnit(CDU-4)atBPCL’sMumbaiRefineryfor6MMPTAcrude processing capacity.

• Detailed Engineering for the Integrated Refinery ExpansionProjectofBPCL’sKochiRefineryforenhancingcrudeprocessingcapacityfrom9.5to15.5MMTPA.

• DFR for 6MMTPAexpansionofNumaligarhRefinerybasedon100%SourCrudeProcessing.

• DFR for Capacity Expansion of IOCL’s Gujarat Refinery from acrudeprocessingcapacityof13.7MMTPAto18MMTPA.

• Feasibility Study for Assessment of Land, Power and WaterrequirementforCoaltoLiquidsProjecttoproduce80000BPDofliquidfuelforIPCOL,Odisha.

• Detailed Feasibility Study for Low Cost Expansion of BharatOman’s Refinery at Bina for enhancing the existing crudeprocessingcapacityfrom6MMTPAto7.5MMTPA.

• DetailedEngineeringof2.2MMTPADCUunitofCPCL’sChennaiRefineryaspartoftheEPCprojectactivities.

• FEEDpreparationforRevampofUnmannedPlatformPhase-IIforONGCisunderprogress.

• PMCservicesforBPA/BPBoffshorefacilitiesforONGC.• ConfigurationstudyforsettingupaGrassrootRefineryof200,000

BPSD at Angola for Sonaref.• DetailedEngineeringforINDAdeptGunitof35KTPAcapacitybeing

setupat IOCL’sGuwahatiRefinerywith indigenous technologydevelopedinassociationwithIOCLR&D.

• FeedAugmentationstudywithEthaneimportfacilitiesforGAIL’sPetrochemical Complex at Vijaipur and Pata.

• Feasibility study for Utilization of Pet coke via the gasificationrouteforvalueadditionforNFLatNangal.

• AssessmentandutilizationofgasfortheWesternOffshoreassetsforONGCtoexaminethepotentialforfurtheroptimizationofgasusage.

• Pre-feasibility Report for Adani Enterprises Limited (AEL) forCoal gasification to polygeneration at their facilities located atMundra.

• LicensorevaluationforagrassrootDieselHydrotreaterUnit forBPCL’sMumbaiRefinery.Designofnewandrevampofassociatedfacilitiesi.e.,SWS,ARU,UtilitiesandOffsites.

• VettingofPrefeasibilityReportcarriedoutbyAELinChhattisgarhforPolygeneration.

• DFRforexpandingHPCL’sVizagRefinerycrudeprocessingcapacityto 15 MMTPA with inclusion of suitable bottom upgradationfacilitiesfordistillateyieldandproductqualityimprovement.

• Study Report for capacity debottlenecking of existing CrudeDistillationUnitforTakreerRefinery,AbuDhabi.

• Basic Engineering Design Package of Visbreaker Revamp withinstallation of Soaker internals at IOCL’s Haldia Refinery incollaborationwithIIP.

• AdvanceFEEDpackageforKuzey-MarmaraDP-1&DP-2platformoffshorefacilitiesforTurkishPetroleumCorporation(TPAO).

• FEED development for WIS Reconstruction Project to install anewwater injectionplatformwithacapacityof3720m3/hratMumbaiHighsouthfield,ONGC.

• Study report for examining the impact of high H2S content in ONGC’sB193platform.

• Coke Chamber replacement and Modernization of Coker-A ofIOCL’sBarauniRefinery.

• Reviewed LSTK documents for 2200 TPD Ammonia, 4000 TPDUrea&MethanolcomplexofIndorama,Nigeria.

• Reviewed early work contractor documents for 5000 TPDMethanol and 3850 TPD Urea complex for Brass Fertilizers,Nigeria.

• Licensor selection for Ammonia, Urea technologies& DetailedFeasibility Report preparation for revival of RamagundamFertilizerProject.

• Prefeasibilitystudyfor2200TPDammonia&3850TPDureaplantinSiberia,RussiaforGlobalSteel.

• Licensorselection&PMCservicesforagrassroot890KTPADualFeedCrackerunit&associatedpolymerfacilitiesofLiwaPlasticsProjectforOrpic,Oman.

• Basic and detailed design of the associated utility and offsitesfacilities as well as detailed engineering services for 460,000BPSDDangoteRefineryandPetrochemicalsComplexforDangoteOilRefineryCompanyLimited,Lekki,Nigeria.

• RFCCRevampProjectatSoharRefinery,Orpic:PreparationofBasicDesignpackagefortheRFCCAmineAbsorberunit,preparationofFEEDPackage for theRFCCRevamp,CDUModification,PRURevampandLPGMeroxrevamp.

• PMC services for FEED Packages, Design of Tankages andMoundedStoragesforLobitoRefineryProjectofSonangolEP.

• DistillateYieldImprovementProject(Aishwaryaproject)ofIOCL’sHaldiaRefinery.

EngineeringDuring the year, the Engineering Division of EIL continued itsefforts towards providing optimized and value added services forall ongoing projects consistent with the client requirements andobjectives of the Company. The Division maintained its focus onkey areas like System Improvement and improvement of quality of deliverables,ControlofReworkrelatedwastagebyuseofDatabase,RepeatabilityofDesign,EnhancedSoftwareapplicationsandoverallimplementationofElectronicdatamanagementsystemandimprovedinformationexchangeandcommunicationsystemsresulting in lessmanual interfaces. Major emphasis was laid on Automation andStandardization of systems, implementation of Internal Audit andMonitoring,updationofspecificationsstandardsandguides.Alargenumberofimprovedprocesses,newconceptsandtechnologieswereimplemented for thefirsttime this year and someof themareasfollows:• BasicdesignandengineeringofNon-ConventionalCokeDispatch

schemefortheAishwaryaProjectofIOCLtoaccomplishcompleterakeloadingwithinlimitedspace.

• Basic engineering and procurement of energy efficient VAV(variableairvolume)airconditioningsystemfor labbuilding inMRPLPhase-III expansionproject andVRF (variable refrigerantflow)airconditioningsystemforMBBVPLprojectofGITL.

• Conceptualization of HVAC system for Catalyst, Chemical andTEAL storage building for Dahej Petrochemical complex (OPaL)


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and developing detailed HVAC scheme for hazardous areashandlingcriticalchemicalslikePeroxide,TEALetc.

• DetailedengineeringofCDSPunitofDCUProjectofCPCL,forthefirsttimeinEIL.

• Engineering for procurement of Hot Gas Power RecoveryExpanderGeneratorofabout2x23MWerating,handlinghotfluegasesataround760°CforFCCUnitofDangoteRefinery&PetrochemicalProjectinNigeria,therebyrecoveringtheenergyof hot gases.

• Engineering for procurement of 4 x 40 MWe Steam TurbineGeneratorPackages(VHPsteaminlet,dualcontrolledextraction&condensingtype)forDRPPProject,DORC-Nigeria.

• Engineering for procurement of 66KV, 2500A, 40KA (1 sec.),66KV,DoubleBus,IndoorGasInsulatedSwitchboard(GIS)havingapprox.40panelsforDangoteRefinery&PetrochemicalProject,Nigeria.

• ProcurementEngineering forNitrogen InjectionFireProtectionSystem(NIFPS)againstconventionalwatersprinklersystemfor2nos20/25MVA,22/6.9KVPowerTransformersforCDU-4projectofBPCL-Mumbai.

• In situ type Panel mounted IR based SOx/NOx/CO analysersfor Continuous Emission Monitoring of Stack with remotemonitoringandcalibrationfacilityfromPollutionControlBoardtherebyreplacingAnalyserSheltersresultinginreductioninbothCapex and Opex.

• Provision of Ultrasonic Liquid Flow Metering skid for custodytransferwithcentralisedcalibrationandmeterprovingfacility.

• IR based Platform Intruder Detection System, Ultrasonic BaseBirdRepellentsystemandSeismicDetectionSwitchforremoteoffshoreinstallations.

Heat and Mass TransferThe Heat and Mass Transfer Division (HMTD) provided thermal/hydraulic&mechanicaldesignsandPMCservicesforFiredHeaters,Cast/Glass Air Preheaters (CAPH/GAPH), Mass Transfer Systems(columntrays/packingetc.),HeatExchangers&AirCoolers(ThermalDesignonly),WasteHeatRecoveryEquipments, Ejectors&EjectorSystem(includingHybridtype)andUtilityBoilersystemforvariousprojectsincludingBPCL-IREP,BPCLNHT-ISOM,BPCL-DHT,AishwaryaProjectofIOCL–HaldiaandDangoteOilRefineryCo.etc.TheDivision undertookmany jobswhere various innovative/valueaddedspecialistserviceslikefeasibilitystudies,troubleshootingwereprovided. Some of the key projects undertaken by the division are summarizedbelow:• Heat exchanger thermal design services to UOP, the Process

LicensorforDangoteRefinery.

• Preheat network study for the “Configuration study and DFRforCDU/VDUexpansion”(7.5to9.5MMTPA)forHPCLMumbaiRefinery.Apreheatnetworkwasconceivedfortherevampcasetoattainthemaximumpossiblepreheattemperature.

• SpecialistservicestoIOCLHaldiaforcarryingoutdetailedstudyandanalysisforthefrequenttubefailuresinWasteHeatBoiler,SRU-IVwhichoccurredaftercommissioning.

• Adequacystudyandmodification/engineeringforIOCL-BarauniCoker Heater wherein two heater operations have beensuccessfullyconvertedtoonlysingleheateroperationafterthe

revamp.Itwasachallengingrevampjobdue to limited space for additionalheattransferarea.

• ConsultingservicestoTakreer,AbuDhabiforstudyoftheexistingpreheat network of CDU and providing recommendationsfor performance improvement in order to meet the changes implementedindieselspecification.

Project Services – Costing TheCostingDivisionprovidesservicessuchaspreparationofcapitalcost estimates andfinancial/economic analysis in diverse activitiesranging from technology selection to preparation of feasibilityreports and option study estimates for investment decisions. Itprovides assistance during price negotiation, cost monitoring andcontrol during execution of projects under conventional and LSTKmode of execution. It also prepares cost estimates for bidding asEPCcontractor.Thevastdatabaseandcapabilitieshelpinprovidingvaluablesupportforbidevaluationandawardofmajorcontractsaswellasinprovidingeffectivecostcontrolservices.

Project Services - Planning The Planning Division continued to provide planning, scheduling,monitoring,projectriskmanagementandmaterialcontrolservicestovariousprojects.Usingstate-of-the-arttoolsanditsdatabase,theDivision caters to diverse project execution roles of the Company,viz.EPCM,PMC,LSTK/OBEmodes.TheDivisioncontinuedtoprovideproject monitoring services to the Ministry of Petroleum and Natural Gas.

Procurement ServicesThe Procurement Services Division of EIL through the Contracts& Purchase Department and Inspection Department has beendeliveringthesupplies,servicesandworksofspecifiedqualitywithinthespecifiedtimeatthemostcompetitivepricesinafair,equitable& transparent manner. The Division offers its services for theprojectsexecutedbyEIL forvariousclientsgloballyasaconsultantandacontractoraswellasforvarious in-houserequirements.Thisdivision offers complete Supply Chain Management services rightfrom registration of suppliers/contractors globally, placement oforders,inspection,expeditingandlogisticsservicesfordeliveriesuptoconstructionsites.TheProcurement ServicesDivision leverages its variedexperience,establishedsystems&procedures, standards,vastknowledgepooland extensive database to aid the Company in successful project execution.Inordertodeliverprocurementinaneffectiveandefficientmanneron fast track,e-procurementhasbeen implementedwith thehelpofoutsourcedtechnologiesaswellasin-housedevelopedsoftwaresolutions,enablinggreatertransparencyintheprocurementprocess.EILhasalaiddownpolicyofimplementationof100%e-procurementacross all projects through a long term tie-up with NationalInformaticsCentre(NIC).

In the current year, orders for`390 crore of direct purchases andcontractswereplacedon suppliers/contractorsglobally forvariousOBE/LSTK/Depository projects. In addition, orders for`3388 crorewereplacedforvariousotherclients’projects.Inlinewiththegovernment’spromotioninitiativesforenhancementof indigenous vendors’ involvement in Government Procurement,EIL has implemented the prevalent guidelines including PublicProcurement Policy (PPP)-2012 for Micro and Small Enterprises.During thecurrentyear,EILprocured`65.93croreworthofgoods


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andservicesfrommicroandsmallenterpriseswhichisaround21%ofthetotalvalueofdirectpurchaseordersforgoods,placedbyEIL(andaround19%ofthetotalvalueofPurchaseordersforgoodsandcontractsforservices).

Towards thepromotionofMicroandSmallEnterprises (MSEs),EILassociated with MSME-Development Institute, Okhla, New Delhi,MinistryofMSME,Govt.of India inorganizinga two-dayNationalLevelVendorDevelopmentProgramcumIndustrialExhibitionattheofficepremisesofMSME-DI,Okhla,NewDelhi,toprovideaplatformtodisplayanddemonstratetheproducts,technologies,capabilities,requirementsandservicesofvariousMSEs.ProcurementDivisionhasalsobeen instrumental inregistrationofMSEsupplierstoenhanceprocurementasperMSMEpolicy.

Procurement Division carried out in process and pre-dispatchinspectionofcriticalequipmentatsuppliers’worksaswellasProjectsites through its Regional Procurement Offices located all overthe country and overseas offices located in London, Shanghai andMilan. Major items inspected included “Vaccum column for BPCL IREP project (63mtr x 12 mtr, 850 MT), among many other largesizedequipment. Itwasforthefirsttimeeverthatnewinspectiontechniques likeTOFD(TimeofFlightDefraction)andPAUT(PhasedArrayUltrasonicTesting)wereintroducedforinspectionoffabricatedequipment. Multimodal transportation scheme for equipmentof BPCL IREP projectwas used fromKochi port to site by utilizingwaterwaysandmakinganewjettyclosetoRefinery.

TheDivisionhasalsobeenmakingsteadfasteffortstowardswideningits database of capable suppliers. Suppliers and Contractors located worldwide apply through online system available at EIL website.With anobjective tomake the systemmore transparent, effectiveandpaperless,theprocessofenlistmentofcontractors,startingfromonlineapplicationtofinalapproval,hasalsobeenmadeonline.

To give a boost to “Make in India” program launched by Hon’blePrime Minister of India, Procurement Division is also putting ineffortstoqualifyvendorsforitemswhicharegenerallyimportedandorganizingvendormeetsindifferentregions,toensurethesame.

Construction The Construction Division offers services for total ConstructionManagementincludingContractadministration,ConstructionQualitySurveillance, FeedbackAnalysis,HSEandWarehouseManagementforvariousprojectsofEIL.During the year, Construction Division continued to provideConstructionManagementServicesforvariousclientsat31diversedomesticprojectlocationsand5overseaslocations.Theon-goingprestigiouscommitmentsfortheDivisionincludeIREPatKochi&CDU-4projectatMumbaiforBPCL,OPaLPetrochemicalatDahej,DCUforCPCLatChennai,SJPLParadeepandU.P.PetrochemicalProject-IIofGAILatPata.Constructionactivitiescommencedforthefollowingnewdomesticprojects during the year:• NuclearFuelComplex,Kota• KGBasin/VSPLPipelineproject,Rajamundry• DahejExpansion-IIIAProject,Dahej• HDDworksatYamuna,SatlujandSolani• DCURevampprojectandROPlantprojectofIOCL,Barauni• IndadeptGatGuwahatiRefineryofIOCL

• EORBarmerofCairnIndiaLimited• NHT/ISOMProjectofBPCL,Mumbai• FirewaterrevampprojectatCOT,VadinarThe highly skilled & motivated EIL construction team has beeninstrumentalinestablishing&monitoringadherenceofconstructionQuality Management system comprising Quality plans, Inspectiontest plans, implementing special processes for concreting,weldinginvolving latestNDT techniques,digital radiography,ultrasonic testetc. during all the phases of construction to ensure trouble freecommissioning/operationofcriticalunits.

The Construction activities for the following Projects/Units werecompleted during the year:

• Asia’s largestGasProcessingUnit (21.12MMSCMD) ina singlestreamforGAIL’sPetrochemicalComplex-II,Vijaipur.

• LPGpipelinefromBPCLMahultoUran.

• Extruder,GCU,andN2plantatGAILPetrochemicalComplex-II,Pata.

• STG,ACC&BoileratMangalaProcessingTerminal.

• Butene-1plantatIOCLPNCPPanipat.

• PFCCU&SRUatMRPLPhase-III.

• WaxhydroFinishingUnitatNRL.

• MechanicalCompletionofMRPLPhase-III,PneumaticConveyingsystempertinenttoPPUatMRPLandCavernAcceptanceTestatSCOS,Padur.

TheConstructionDivision isconstantlystriving toadoptandadaptnewer techniques and processes with an aim to shorten deliverytimelines.TheDivisionisusingthefollowinginnovativeconstructiontechniques and improvised equipment/machineries to minimizeconstructionscheduleacrossprojectsites:

• Alufo Shuttering, Pre-Engineered Buildings, SpoolMarking andTrackingMachine,Waterjetcuttingmachineetc.

• Pre-Assembled heavy equipment slab reinforcement cageassembly.

• Constructability studyanderection feasibility study foreaseofexecutionforprojects.

EILattacheshighestimportancetoHealth,SafetyandEnvironmentinexecutionofallitsprojectsandachievedfollowingaccoladesduringthefinancialyear:

• 50Million LTA free man-hours at Petrochemical Complex-II ofGAIL,Pata

• 15MillionLTAfreeman-hoursatIREPprojectofBPCL• 14 Million LTA free man-hours at Strategic Storage of ISPRL

Mangalore• 5MillionLTAfreeman-hoursatPPUnitofMRPL,Mangalore• 5 Million LTA free man-hours at Wax Project of Numaligarh

Refinery

Plant Operation and Safety ThePlantOperationandSafetyDivision(POSD)ofEILcontinuedtoprovideservicesinthefollowingareasduringtheyear:

• Processdesign forOffsiteFacilitiesofRefinery,Petrochemicals,GasProcessingUnits,OilTerminals,OnshoreTerminals,Topsides


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of Strategic Storages (underground caverns), Cross CountryPipelines,LNGTerminals,etc.

• SafetyrelatedstudieslikeHazardandOperabilityStudy(HAZOP),Hazard Identification (HAZID),RiskAnalysis&QuantitativeRiskAnalysis(QRA),SafetyIntegrityLevel(SIL),SafetyAudits,SafetyReviewsandEmergencyPlanning.

• Pre-commissioning&commissioningofprocessplants,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 OperatingManualspreparation.

Thefollowingmajorassignmentswerecompleted/wereinprogressduring the year:

• ProcessdesignforoffsitefacilitiesofDangoteRefinery,Nigeria.• PMCservicesforLiwaPlasticsProject,Orpic,Oman.• Process package for LNG terminal at Chhara, HPCL Shapoorji

EnergyLimited.

• Feed Package for Offsite facilities of Aishwarya Project, IOCLHaldia.

• PMC services for GASCO pipelines Yasmina, Arkaan, Fertil,Shuweit-III.

• Advanced FEED services for Kuzey-Marmara fixed offshoreplatformsandpipelines,TPAO,Turkey.

• PMCservicesforKochi-Coimbatore-SalemLPGpipelineofBPCL.

The following major pre-commissioning & commissioningassignmentswerecompletedduringtheyear:

• PFCC,SRUTrain-II&IIIandTGTUofMRPLPh-IIIproject.

• DDW1&PLQPGasTerminalandOnshoreGasTerminalofGujaratStatePetroleumCorporation,Kakinada.

• GAILPetrochemical-IIComplexatVijaipur.

• SolventDeOilingUnit&WaxHydrofinishingUnitatNRL,Assam.

• HabshanAcidGasFlareRecoveryProject,GASCO,AbuDhabi.

• 52”GasTwinlinesfromHabshantoMaqtapipeline,HMTProjectGASCO,AbuDhabi.

The following pre-commissioning/commissioning activities wereunder progress during the year:

• AssamGasCrackerProjectofBCPL,Lepetkata.

• StrategicCrudeOilStorageprojectofISPRL,Vizag.

• DahejPetrochemicalComplex,OPaL.

• GAILPetrochemical-IIComplexatPata.

• CDU-4,SWS&LPGTUofBPCL,Mumbai.

• Yas-minaGasPipelineProjectGASCOAbuDhabi.

TheDivision has also been successfulwith its continued efforts insecuring new business in both domestic and overseas markets.Duringtheyear,theDivisionundertookfollowingmajorstudies:

• QuantitativeRisk Analysis (QRA) for the Refinery Complex andFacilitiesofMRPL.

• QRAforHPCL,VizagRefinery.

• QRAforBPCL,KochiRefinery.

• RRAstudyforVadinar-BinapipelineandCOTfacilitiesatVadinarof BORL.

• HAZOP&SILStudyofDCUCPCL,Chennai.

• HAZOP & SIL Study for Advanced FEED services for Kuzey-Marmarafixedoffshoreplatformsandpipelines,TPAO,Turkey

• HAZOPRevalidationStudyforFuelDepot,KAFCO

• SILStudyforKCPLLPGPipeline,BPCL.

NewbusinessinitiativeslikeO&MservicestoindustryareinprogressandtheDivisionundertookfollowingassignments:

• UpkeepandMaintenanceofDFCU&AUplantofOPaL,Dahej.

• LPGPlantPreservationforGAIL,UsarPlant.

Environmental Engineering EIL’seffortsinpreservinglong-termhealthandsafetyofpeopleaswellasnaturalresourceshavealwaysbeenanintegralpartofitspolicy.Over the years, EIL’s Environment Division has adopted innovativeintegrated water management for industries & municipalitiesand has executed several hundred projects in diversified fields ofenvironment including water & wastewater treatment; effluentrecycle and zero discharge projects; Environmental ImpactAssessment studies; environmental audits; air quality assessment,modeling & control; ground water monitoring studies; solid &hazardous waste management; oily sludge management; volatileorganiccarbon (VOC)& fugitiveemissionscontrol; siteassessmentand remediation; environmental health & risk management;environmentalmanagementplans;etc.

The major achievements of the Division during the year include the following:

• Foray into advance aquiferwater treatment (membrane nano-filtration based processes for sulphate ions removal) andproductionofwatertreatment&polishingfiltrationsystems(toachieveverylowlevelsofoilandsuspendedsolidsinreinjectionwaterforenhancedoilrecovery)forCairn’sMangalaProcessingTerminal.

• Successful execution of a consultancy services job for KuwaitNationalPetroleumCompany(KNPC)forselectionoftechnicallymostviableprocessfor installationofnewoilysludgehandlingfacilitiesattheirMAA(Mina-Al-Ahmadi)Refinery,Kuwait.

• Execution of membrane (ultra-filtration) based raw watertreatment plant for OPaL’s Dahej Petrochemical Complex.

• Re-accreditation by Quality Council of India (QCI) for carryingoutEIAstudiesinIndiainelevensectors.TheCompanyhasQCI-NABETaccreditedin-houseEIACoordinatorsandFunctionalAreaExperts.

• Environment clearances were obtained from Ministry ofEnvironment,Forest&ClimateChange(MoEFCC)forBORL’sBinaRefinery Expansion, IOCL’s Dimer Project at Mathura Refinery,BPCL’s ISOM project at Mumbai Refinery and Indian Navy’sProjectSeaBirdatKarwar.

• AspartofMoUwithMoP&NG,EILiscontinuingitseffortstowardsSustainable Development Initiative. Biodiversity ImprovementProject(Phase-III)includingDevelopmentofNurseryforfloweringplantsintheEIL’sGurgaonComplexhasbeencompleted.


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Research & Development In order to continuously better the quality of its services to theclients by providing value addition and leveraging technologicaladvances, it has always been EIL’s endeavour to foster the spiritof innovation and creativity in the organization. Research andDevelopment Division has played a significant role to achieve thisobjectivebycontributingintheconsolidationofexistingcapabilities,developmentofnewtechnologies&hardwareandenhancementoftheportfolioforspecialtechnologyrelatedservices.R&DDivisionispursuingdevelopmentalactivities,bothinhouseandincollaborationwithacademicinstitutes,otherR&DorganizationslikeIOCL-R&D,IIP,BPCL(R&D),andcooperatingwithsmallcompaniestopromotethecreativeideasgeneratedbythem.

During the year, R&D Division has undertaken the followinginitiatives fordevelopmentofnewcapabilitiesandup-gradation&commercializationofexistingcapabilities:

Technology Development projectsThe following technologydevelopmentprojectswere initiatedandcompleted during the year:

• Development of Process for Treatment of Naphtha Stream to eliminate Mercaptan by CFC Process.

• Regeneration of Glycol by Extractive Distillation - EliminatingneedofStrippingGases.

• Solvent development for CO2removal from sour gases

• Hydraulic testing of M/S Kevin supplied PARLPAK 252m2/m3,ME250Y, ME250Y Additional andME250Y Vantage at EIL R&DComplex.

Thefollowingtechnologydevelopmentprojectswereinitiatedduringthe year and are in progress:

• DevelopmentoftechnologyfordesignofHigeewaterdeaerationsysteminassociationwithBPCL(R&D).

• DesignMethodologyforTrayswithExplosionHatches.

• ProcessDesignandDevelopmentofNewSeparationDevicesforFlash Drum.

Technology Commercialization

• Crude Distillation Unit (CDU) Preheat Train Optimization usingPinchtechnologyforNumaligarhRefinery.

• Proposalssentforthefollowing:

– ParlpakapplicationinquenchcolumnsandamineabsorptioncolumnsofTGTU(Tailgastreatmentunit)ofBPCL-MumbaiRefineryandHPCLMumbaiRefinery.

– Parlpak application in Scrubber column of Naphtha DeepDesulphurisationProjectofIOCL-Guwahati.

– CFCPrewashcolumn:CokerblockresidupgradationprojectCPCL Chennai.

• UndertakenEnergyEfficiencyImprovementStudy(EEIS)atHPCLVisakhRefineryinassociationwithCHT.

• Dynamic Simulation for Up-gradation of Anti Surge Valves forPropaneCompressorofTrain1&2ofADGASLNGplantatDasIsland,AbuDhabi.

• Co-operation Agreement with M/s Kevin Enterprises on jointdevelopmentofHighcapacitytraysandpacking.Receivedorder

from HPCL-VIZAG for supply of Parlpak in quench columns (3columns) and amine absorption columns (3 columns) of TGTU(Tailgastreatmentunit).

• BasedonTailGasTreatingTechnologydeveloped,ajobhasbeensecuredtoimplementtwotailgastreatingunitsatBPCLMumbaiforimprovementofsulphurrecoveryfrom99%to99.9%.

• BasedonOxygenEnrichmentTechnologydeveloped,a jobhasbeen secured for implementing oxygen enrichment facility atBPCLMumbaiforcapacityenhancementoftheexistingsulphurrecoveryunitby130%

Initiatives for strengthening technology tie-ups

For strengthening technology tie ups, memberships of followingresearchconsortiumsforyear2015-16havebeenrenewed:

• Process Science Technology Center, an industry-academiacollaborative researchprogram initiatedbyUniversityofTexas,USA.

• Fractionation Research Incorporated, a non-profit cooperativeresearchorganizationbasedatOklahoma,USA.

• Process Integration Research Consortium of University ofManchester UK.

Patents filed/granted

Basedon innovativeworkdoneduring theyear, the following twopatentshavebeenfiled:

• High pressure fluidized bed gasifier and gasification processthereof.

• An absorbent liquid and a process for removal of acid gases using the same.

Twootherpatentsfiledearlierhavebeengrantedthisyear:

• PatentNo261235Dated13-6-2014:AnApparatusforSeparationofC2/C3andLPGfromLNGColdStreamandAMethodfortheRecovery thereof.

• PatentNo261476Dated20-6-2014:ASteamTrapDevice

Specialist Materials and Maintenance Services

The Specialist Materials and Maintenance Services (SMMS)Department of EIL continued to provide specialist services to thevarious in-house projects and clients in Petroleum, Petrochemical,Metallurgical,NuclearandInfrastructuresectorsinIndiaandabroad.Someoftheimportantassignmentsarementionedbelow:

• HealthStudyofgaspipelinesinKGBasin,GAIL.• FitnessforServiceforHaziraCompressorStation,GAIL.• SpecialistservicesforrevampingofexistingCathodicProtection

system,GAIL.• HealthstudyofReactorFeedHeateratMumbaiRefinery,HPCL.• SpecialistservicesforrefractoryduringshutdownofMangalore

Chemical and Fertilizer Limited, Mangalore and for refractorylining repairof95”FlueGasDuct in FCCU,HPCL-MittalEnergyLimited,Bathinda,Punjab.

• Specialist services for Refractory, Insulation & Fireproofing inAlgiersRefinery,M/s.Sonatrach,Algeria.

• MaterialSelectionforKuzey-MarmaraFixedOffshoreplatformofTPAO,TurkeyandLiwaPlasticsProjectofOrpic,Oman.


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• Material Selection, Refractory & Insulation, Corrosion ControlandCathodicProtectionforIREPofBPCL,Kochi.

• Refractory & Insulation, Corrosion Control and CathodicProtectionforDangoteRefinery&PetrochemicalProject,NigeriaandIndo-RamaFertilizer,Nigeria.

Information Technology ServicesInformation Technology Services (ITS) division of EIL continued toprovide state-of-the-art IT enabled serviceswith an aim to deliverbetter quality services with increased efficiency at reduced costs.UsingnewITtechnologies,variousinitiativesweretakenduringtheyear,thedetailsofwhichareasfollows:

Secure File Sharing System: Awebbased‘SecureFileSharingSystem’has been developed for secured sharing of Category-1 documentsontotheweb-applicationportalamongtheauthorizedusersofEILprotectedbymulti-levelpassword.

Projects Documents Sharing System: This web based system hasbeendevelopedtofacilitatesharingofprojectdocumentswiththeclientswith features such as restricted access, e-mail notificationsetc. Client may also access and upload the documents in the system byusingtheuseridandpasswordprovidedtothem.

Internal Customer Perception Survey System: This Web basedsoftware has been developed for conducting internal customerperceptionsurvey.Thesystemalsofacilitatesthedepartmentstoseetheanalyticalreportsoftheirreceivedperceptions.

GMS (Grievance Management System): An Online System developed to provide easily accessible platform for expeditious settlement ofgrievances of employees.

Appraisal Management System (AMS) for Staff:AwebbasedonlineappraisalmanagementsystemforStafffrom1to9levelemployeeshasbeenimplemented.Ithasvariousmodulesfacilitatingtocapturethe data required in the appraisal process.

Training Database Management System (TDMS): A web-basedsystem has been developed for the Training department. The objectiveof thesystemis tomaintaintheannual trainingcalendarandtocreateanemployeewisecentralizeddatabaseforthetrainingsconducted by Training division.

Software for Engineering Disciplines: FollowingnewsoftwarehavebeendevelopedfortheEngineeringandTechnologydivisions:

• Electrical Datasheet Integration System (EDIS): A web basedsystem has been developed for generating theMR/PR/Vendorsideelectricaldatasheetalongwithapproval cyclewith reviewcodes,comments/resolutionandrevisionmanagementbetweenEILandsupplier/manufacturer.

• Cast Air Pre-heater thermal design software: A web basedsystemforcalculationofthermalprofileoftubesincastairpreheater has been developed for HMTD department. Softwarecan generate the temperature profile at each tube row level.TheTubeconfigurationcanbesimulatedfordifferentdesigntomaximize the heat recovery.

• Instrumentation Field Bus Cable Schedule: A web basedapplication has been developed to implement the Field bus

technologyinEILengineeredplants.ThiswillhelpinFoundationFieldbuscableschedulepreparation,Trunkcableestimationforpackageequipment,DrumschedulingandMTOpreparationforFieldbuscablesandJBs.

• Engineering Query Management System: A centralized webbasedsystemformanagingengineeringqueriesatROs/BOwithfeaturessuchascataloguing,reuse,reminders,mailalerts,SMSnotifications,reportingonpendingqueries,autoarchivaletc.

Software for Cost Engineering Discipline:

• Integrated Cost Estimation System (ICES): The system captures the technical data from engineering software like ECABLE,IMPRESS,EDSIS,etc.andpastcommercialdatafromIntegratedProcurementManagement System (IPMS), and brings them toasingleplatformwhereintheusercanusethis informationforprojectlevelcostestimationandmonitoringpurpose.

• Cost Estimation for Feasibility Reports (DFR): A web basedsoftware to facilitate the preparation of project cost estimateforPreliminaryFeasibility/DetailedFeasibilityReports(PFR/DFR)andhelps incalculatingthePlant&Machinerycostestimationfor process/Offsite units from available costing database invariousformssuchasDetailedUnitCost,EquipmentLevelCostandSinglelinefigureetc.

Enhancements in the Electronic Document Management System (eDMS):Manyimprovementswerecarriedoutinthesystemduringtheyearwithanobjectivetomakethedocumentexchangeanditsmonitoringmoreefficientandeffectiveandtoreduceexecutiontime.Autoalertsandreminderswereincorporatedforautoescalationofusertaskstominimizedocumentreviewcycletime.Enhancementswere carried out in the Rendition Server tomake PDF conversionprocess faster and smooth. New reports were incorporated forpropermonitoringand trackingofdocumentexchangeand reviewcycles.SeveralimprovementswerealsocarriedoutintheContractor/Supplier and Client portals to make it more user friendly.

Enhancement of existing systems: Upgrading and enhancement of existing systems on a regularly basis is a key deliverable of theDivision.Duringtheyear,thefollowingexistingsoftwarehavebeenimproved by way of enhancement of capabilities and inclusion ofadditionalfeaturesandputtouseonmorenumberofprojects:

• Pre-Commissioning and Commissioning ActivitiesManagementSystem(PCAMS)

• StructuralEngineeringDesignSolution(SEDS)

• GeneralCivilengineeringDesignSolution(GCEDS)

• IntelligentDesignBasisforEngineering

Enhancements in Financial Accounting System: Followingenhancements have been carried out in the FAS system:

• System to generate Cash flow, Cost Record and Location wiseexpense statements.

• BankReconciliationthroughsystemforStateBankofIndia.

• System generated Bank Guarantees confirmation, Revoke andinvocationletterstoBanks.

• FillingofVendore-TDSreturnwithdetailofreduceratethroughsystem.


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• System generated credit invoices to clients for cost reimbursable contracts.

PMC Services for DGH’s NDR Project: PMC services have been extended to Directorate General of Hydrocarbon (DGH)’s NationalData Repository (NDR) project. NDR aims to provide a world-class data storage and retrieval infrastructure for the hydrocarbon explorationandproduction(E&P)datainasafeandreusablemanner.

Implementation of IT Infrastructure:• TheimplementationofITinfrastructureincludingbothhardware

andengineeringsoftwareatAbuDhabihubisunderway.• PCsofalargenumberofusershavebeenupgradedwithstateof

theartPCsatHO/BO/ROs.• A latest SANbased storage systemof40TB capacityhasbeen

installedintheComputerCentreatHO.• ImplementationofnewserversatHOisinprocess.

Sustainable Development EIL’s sustainability mandate evolves around complying with theenvironmental regulations and norms in a way that make it aresponsible company and transparent to all its stakeholders. The Company’s project designs support sustainability right from the concept stage to plant commissioning and subsequently during the commercialoperation.Energyefficiency,resourceoptimizationandsafetyofplantpersonnel&societyatlargearethecornerstonesofourbusinessoperationsandalsoensurebusinesscontinuity.

EILhasrefocuseditsengineeringphilosophyandbusinessmodelstoachievelong-termsustainablegrowth.Ithasalsoinitiatedevaluationand reporting of its performance on the triple bottom lines ofeconomic, social and environmental aspects. It believes that thesustainabilityinitiativesunderwaywillpropeltheorganizationonanupwardgrowthtrajectory.

A separate Report on Sustainable Development is annexed to this Report.

Corporate Strategy & Business Development Corporate plans are imperative for any organisation with a timehorizon of five years and a longer term perspective. A CorporateStrategyandBusinessDevelopment(CS&BD)groupisnowfunctional,which performs the role of evaluation of Market opportunities,Business Developments, Venturing into new geographies, Tie-upswith Licensors/Vendors/Collaborators, augmenting the portfolio ofEILbydiversifyingintosunrisesectors.

The Division has been consciously focusing on the market and proposingthestrategiesrequiredforgrowthoftheorganisation.TheCS&BDDivisionhasbeen focusingon thecorehydrocarbonsectorcustomerrequirements,seedingideastonewandpotentialclients.Owing to the currentmarket scenario, it is also essential that EIL,while harnessing its core strength, should also explore projects insunrisesectorsandnewgeographies.

Underthe Internationalizationfocus, theMiddleEastHubofEIL inAbuDhabihasbeenexpandedandmanpowerisbeingprogressivelyrampeduptoservicetheentireMENAregion.Inaddition,theCS&BDdivisionhasalsobeenexploringbusinessopportunitiesinSouthEastAsia and the rapidly emerging African markets.

Aspartofenhancedvaluecreation,CS&BDhasbeenincontinuousdialogue with various licensors/technology providers, with an

objectivetocollaborateandprovideabouquetofnicheservicestotheownerorganizations.

The CS&BD group has initiated aggressive business developmentactivities in Solar Power, Fertilizers, Water and Waste WaterTreatment,SMARTCities,PCPIRsetcaspartofexpansionintonewlinesofbusiness.SustainedBDeffortsareunderprogresswithULBs,Municipal Corporations and respective state governments in thisdirection.

HSE Management System Sinceitsinception,EILhasalwaysaccordedhighestprioritytoHealth,Safety & Environment (HSE) in all aspects of its operations. TheCompany’sHSEpolicycoversthefollowing:

• Compliance to statutory requirements, engineering codes andstandards

• Ensuringthehealthandsafetyofemployees&associates

• CreatingawarenessonHSEamongstemployees&associates

• ContinualimprovementoftheHSEManagementsystem

Inordertoimplementtheabovepolicy,theCompanyhasarobustHSE Management system based on OHSAS 18001 (OccupationalHealthandSafetyAssessmentSeries)andISO14001(EnvironmentalManagement System). The HSE Manual, various procedures,checklists,templateshavebeendevelopedandimplementedacrosstheorganizationasapartoftheHSEManagementSystem.

During theyear,EIL’sHSEManagementsystemwascertifiedbyanaccredited Certification Body to OHSAS 18001 and ISO 14001 inDecember2014. These certificationswill enhance yourCompany’sevaluationsscoreswhilebiddingforoverseasjobsparticularlyintheMiddleEastOil&Gasmarket.

During the year, extensive HSE Management System awarenessamongstemployeeswascreatedthroughclassroomtrainings,sharingoftrainingmaterials/documents intheportalsandHSENewsletter.During the year, class room training on HSEManagement systemwasimpartedto832employees,whichisinadditiontotrainingandmaterials shared in electronic form. This training included modules onemergencypreparednessandresponsewhichenablesemployeesto safeguard themselves and their colleagues during emergencies.

Internalaudits,externalauditsandtopmanagementreviewoftheHSE Management system are being undertaken for ensuring itscontinuousimprovement.

Hazard Analysis, Risk Assessment & Control (HIRAC) andEnvironmentalImpactAnalysis(EIA)havebeencarriedoutatvariouslocations to mitigate and control Health & Safety hazards andEnvironmentalimpact.

HSE aspects are in-built in the procedures of various engineeringdepartmentsandcompliancetothesameisverifiedthroughusageof checklists.

Your Company has a detailed system for implementation of HSEmanagement at construction sites including an elaborate HSEspecificationforthesites.Compliancetothesespecifiedrequirementsareensuredthroughchecklists,inspections,audits,awarenessetc.

Incident/Accident reporting and investigation procedures withspecificreportingprotocolshavebeendevelopedanddeployed.


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Being amember of the British Safety Council and National SafetyCouncil,EILkeepsabreastof thedevelopments in theHSEdomainthroughupdates,articles,journalsetc.

Quality Management SystemQuality is inbuilt into EIL’s processes, workplace, deliverables andservices. The Quality Management System of the Company wasreassessed through external Surveillance Audit by a third party certificationagencywhichconfirmedthattheQualityManagementSystemofEILcontinuestoconformtotheinternationalstandardISO9001:2008.

ThevalidationofEIL’srelentlessfocusandpursuitofqualityhascomein form of numerous and prominent awards. During the year, theCompanywasconferredwiththeprestigiousRajivGandhiNationalQualityAward (RGNQA),CommendationCertificateAward2012 inLargeScaleServiceIndustryCategory,institutedbyBureauofIndianStandards(BIS),theNationalStandardsbodyofIndia.

Important ingredients of our quality initiatives are effective &comprehensive Internal Quality Audit process, planned customerperception surveys, analysis of feedbacks from stakeholdersand regular reviews & directions from the Management ReviewCommittee (MRC) & the Systems Committee. TheMRC is chairedby the C&MD with all whole time Directors being members. TheSystems Committee is chaired by senior Executive Director, andseniorofficialsfromallareasofoperation&functionsaremembersofthecommittee.Regularmonitoringisdonetoanalyzethedata&feedbackforrecommendingimprovementsinprocesses,deliverablesandQMStoreducecosts,shortencycletime,crossfunctionalissues,improvevisibilityandcredibilitywithoutaffectingtheenvironment.QMS implementation and its effectiveness have been furtherincreasedbycomputerizationofcertainprocessesthroughin-housedevelopedsoftware.

TheQualityManagementSystemofyourcompany’sUAE(AbuDhabi)officewasalsoindependentlyauditedandreassessedforcertificationduring the year.

In addition, the Company participated as a prominent and activememberinvariouscommitteesforformulatingproductsandqualitysystem standards by Bureau of Indian Standards.

Risk ManagementEIL’s Risk Management policy with a robust supporting riskmanagement frame work facilitates identification and assessmentofnewrisksandreviewofpresentlyidentifiedrisks.Theprocessisbasedonidentifiedrisksandtheriskeventsorfactorswhichrequireregularassessmentandquickresponse.Basedontheprobability&impactoftherisk,therequisitecontrolsandactionplanshavebeendesigned and implemented.

Key Risk Indicators (KRIs) have been identified to measure theadequacy,effectivenessandefficiencyofthese,controlsandactionplans.

The objective of riskmanagement in the Company is to act as anenablerinmaintainingitsknowledgeedge,sustainingandexpandingthebusiness,beingcompetitiveandensuringexecutionofprojectswithinbudgetedcostandtime,resultingin improvedturnoverandprofitability.

The elements of risks have been identified by your Company anddisclosedforthebenefitofallstakeholders.Tocoveralltheelements

ofrisksatenterpriselevel,ninecategorieshavebeendefinedbythemanagement&riskswereidentifiedandcategorizedinthem.

Risk compliance verifications are conducted regularly to testthe compliance of controls and the same is reported to the Risk ManagementCommittee(RMC).Theriskidentification&assessmentprocesses and risk audit process are being handled through “EnterpriseRiskManagementSystem(ERMS)”software.

The status of Enterprise Risk Management (ERM) process ispresentedtotheRiskManagementCommittee&AuditCommittee,whichisreviewedbytheBoardalso.Thereportingstructuremeetsthe regulatory requirements.

Project Risk Management has been implemented for high value and important projects as per the criteria approved by the RMC. The risk severities are categorized as critical, major, cautionary and minorbased on the probability and overall impact.

In addition, a bi-monthly risk newsletter ‘Risk Screen’ is beingemailedtoallemployeesofyourCompany.Thiscreatesawarenessaboutvariousriskmanagementactivities/achievement,newtopics/practices/updatesonERMorPRMandtocreateenthusiasminthemtoproactivelycontrolrisksintheirworkprocesses&areas.

Your Company is committed to further strengthen its riskmanagementcapabilities inordertoprotect interestsandenhanceshareholder value.

VigilanceDuring the year, CTE type examination of EIL’s jobs on LSTK/OBEbasis, random inspectionof in-house contracts/purchases, scrutinyofImmovablePropertyReturns,investigationofcomplaintsetc.werecarriedoutbytheVigilanceDepartmentwiththefocusedobjectiveofensuringconformitytotheCompanyproceduresandGovernmentguidelines.Variousrules,regulationsandprocedureswerereviewedduring the year and System improvements were suggested tothe Management & necessary measures were undertaken forimprovement.TheobservationsreportedbyCTE/CVCwereexaminedandnecessaryactionsweretaken.

Structuredmeetingswere held betweenCVO, C&MD& functionalDirectorsand Inter-DirectoratemeetingswereheldwithrespectiveDirectorstoresolvethependingissues.DetailsofvigilanceactivitieswerealsopresentedtotheBoard.

Various vigilance workshops, seminars, debates & VigilanceAwareness Week etc. were organized in HO, Regional, Branch,Procurement and site offices of EIL during the year for spreading


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vigilance awareness amongst the employees of EIL. A seminar onthetopic“OrientingPersonalGoalswithOrganizationalGoals”wasorganizedforseniorlevelofficialsduringVigilanceAwarenessWeek2014.SomeimportantfeaturesofVigilanceactivitiesaregivenbelow:

• Leveraging Technology: Reverse auctioning, e-tendering,e-payment, e-receipt, etc are already implemented in theCompany and being monitored regularly against the set targets. Clearanceofvendors’billson‘Firstin,FirstOut’(FIFO)underBillTracking system (BTS) is ensured. BTS has provision for detailsabout pendency of vendors’ bills.

• Complaint Handling Policy (CHP): AsperCVCGuidelines,EILhasformulatedComplaintHandlingPolicy(CHS)&havealinkontheCompany’swebsiteforonlinecomplaintregistrationfrompublic,contractors,vendors,suppliersetc.whichisregularlymonitoredbyVigilancewithrespecttothestatusofcomplaints.

• Job Rotation: Job rotation of sensitive posts is being done &reportingofthesameisbeingdoneonmonthlybasis.

• Integrity Pact: EIL is committed to higher ethical standards incontractsandprocurementaswell as transparency inallof itsbusinessdealings&adoptedIntegrityPactinNovember,2011forenquiries having threshold value over ̀ 5Crore,whichhasfurtherbeenloweredfrom`5Croreto`1Crore.

• Online Vigilance Clearance (OVC) & Scrutiny of IPRs: Online Vigilance Clearance and Immovable Property returns of employees is being carried out through Vigilance website -“Avalokan” on OVC portal.

Finance TheCompanycontinueditsstrongcashgenerationdrivenbybusinessperformance. The efficient financial and costmanagement systemcontinuedtofacilitatecashgenerationsaswellascreationofwealth.EILoptimizedthereturnsoncashreservesbydeployingcashsurplusin 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 auditassignments with focus on checks and controls on system andprocedures, monitoring compliances and continuous upgradeof controls have been carried out and the reports are regularly submittedtotheManagementandthemajorfindingstotheAuditCommitteeoftheBoard.

Human Resource & Industrial RelationsPeople areat theheartof ourbusiness and thequality& level ofservice that our employees deliver, directly impacts the results oftheorganization.TheHRfunctionatEILthusendeavorstobuildanenvironmentthatunlocksthepotentialoftheemployeesandkeepsthem inspired to achieve more.

As of March 31, 2015, we have 3192 employees, including 2821technically and professionally qualified employees. Approximately4.6%ofouremployeesarelocatedoutsideIndia,andhaveexperienceofinternationalworkenvironments.

• Talent Acquisition

Closely linkedwith the strategic goals& objectives, our TalentAcquisition strategies aim at facilitation of Right People at theRight Time and at the Right Place. Diverse recruitment models

areemployedtomeetthedynamicbusinessneedswith intakeof fresh talent, domain specialists, short term hiring throughoutsourcingandtakingonboardconsultants/advisors.

To sharpen the skill sets and broaden the understanding of other Division/DepartmentsoftheOrganization,plannedjobrotationhas been implemented.

• Performance Management System

IntheareaofTalentAssessmentandAppraisal,EILhasinplacea robust and transparent Performance Management System that gives weightage to both performance and potential.The Performance Management System is an online process. The outcome of Performance Management System is used for performance related pay, career progression, training &development and succession planning.

Reviewof thePromotionRulesofOfficersandPMSprocedurehad been initiated during the year to make the systemmoreobjectiveandtransparent.

• Employee Welfare

During the year efforts were made for aligning our welfaremeasures towardsenhancementofqualityofwork life forouremployees. Various employee welfare initiatives were takenrangingfromcreatingforumsforsocialinteractionstoprovidingeffective medical services by empanelling more hospitals andrevision in rates of vaccines.

• Thrust on Sports

Providingasupportiveroleinhealth&fitness,EILpromotesvarioussports by organizing weekend sessions and interdepartmentaltournaments.Employeesareencouragedtoparticipateinvarioustrekkingexpeditions,sportstournamentsatregionalandnationallevels. EILemployeesparticipated in11PSPB tournaments.Anactive member of Petroleum Sports Promotion Board (PSPB),EILhostedPSPBTableTennisTournamentatJamiaMiliaIslamiaSportsComplexwhere8teamsincludingEILparticipated.

• Reward & Recognition Scheme

Implementation of revised reward & recognition scheme waseffectedduringtheyearforrecognizingexemplaryindividual&teamperformanceundervariousawardcategories.

• BestemployeeoftheyearinStaffCategory

• YoungExecutiveoftheYear

• ProfessionaloftheYear

• InnovationAwards–IndividualInnovation,TeamInnovation

• TechnicalPaperWriting

TheAnnualAwardsfortheyear2013-14werepresentedduringtheIndependenceDayFunctiononAugust15,2014.Atotalof32employeeswereawardedindifferentawardcategories.

• Training & Development

Significant interventions were made for development ofManagerial/BehaviouralCompetenciesaswellasTechnicalandDomainrelatedcompetencies.Self-Awarenesstrainingprogramsfocusingonlifestylemanagementwerealsofacilitated.

In addition to this, structured Management DevelopmentProgrammes were organized through Management Institutesfor senior and junior management levels and seventh batch of


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LeadershipDevelopmentProgramme-‘Aarohan’wascompletedforseniorexecutives.

Moreover, year-long training structure was implemented forManagementTraineeswhich isablendofclassroomaswellasexperientialandon-the-joblearning.

During 2014-15, the average training days per employee was2.78.

SBUtrainingprogrammeswereconductedonspecialiseddomainareas likeHazardousAreaClassificationofElectricalEquipment&SelectionofRotatingEquipmentinthehydrocarbonsectorforclients-RelianceIndustriesLimited,Vadodara&OilIndiaLimited,Duliajan.

• Mentorship Development

With an objective to foster professional relationships andprovide a forum to offer constructive advice to support thecareer development of thementee, EIL supportsMentorshipDevelopmentProgrammeallocatingtrainedmentorsintheratioof1:3(Mentor:Mentee)forManagementTrainees.

Aspecial2-dayprogrammeon‘MentoringforWin-WinOutcomes’wasorganizedforselectedgroupandtheprogrammeincludedamixofquestionnaire,role-plays&groupexercises.Theworkshopprovided introspection and insights to both theMentor& theMenteeforbuildingpositiverelationshipsandstrongerteams.

• Leveraging IT in HR

RegularinterventionsaremadetostrengthentheHRprocessesthrough IT assistance. New modules have been introducedfacilitatingeaseofoperability&efficiency.

EILConnectcontinuedtoprovideaninteractiveenvironmenttotheemployeesandhasprovedtobeavaluablecommunicationforumforemployeespostedbothwithin Indiaandatoverseaslocations. Morethan1098news items/reportswereuploadedonEILConnect andmore than17.27 lakhshitsweremadeonportalduringthefinancialyear.

• HR Initiatives

An HR Agenda was drawn up for 2014-15 to channelize theeffortsoftheHRteamandenhancetheeffectivenessoftheHRfunction.FocusedeffortsweremadeonimplementationofkeyactionpointsoftheHRAgendaduringtheyear.

Asaneffectivetoolforassessingofficersinbothindividualandgroup based environments for development, Assessment &Development Centres were conducted for 59 nos. of seniormanagementpersonnelduringSeptember–October2014.

Performance Contracts (PCs) for 2014-15 were executed forall Divisions of HR Directorate cascading business objectiveswithinHRfunctions.ThefourperspectivesnamelyOperational,Process,FinancialandHR,witheachperspectivehavingdefinedKeyPerformanceIndicators(KPIs)andquarterlytargetsenabledcontinuousmonitoringandevaluationofperformance.

ThefirstAnnualReportofHRDirectoratewas released for theyear2013-14byC&MD.ThereportisacompilationofHReffortsmadeduringtheyearprovidinginsightsintoTargets,Actionplan&ResultsachievedbyHRdivisions.

• Implementation of Government Directives on Scheduled Caste/Scheduled Tribe

With a view to accelerate the pace of socio-economicdevelopmentof thenation, EIL hasbeenendeavoring towards

safeguardingtheinterestsofSC/STemployees.InpursuanceofthephilosophyandcomplianceofPresidentialDirectivesdatedDecember30,1972issuedbyMinistryofPetroleumandNaturalGas,EILhasincorporatednecessaryprovisionsinitsRecruitmentprocessandPromotionnorms.

The Company has appointed a Liaison Officer to work as afacilitatorinensuringthatdueattentionispaidtotheissuesofSC/STemployees.Managementalsoencouragescommunicationwith the office bearers of the SC/ST Employee’s WelfareAssociationbyholdingperiodicalmeetingswiththeAssociation.

15no.ofEILscholarshipswereawardedtoSCandST(SC-10andST-5)undergraduateengineeringstudents.

The percentage of employees belonging to Scheduled Castes & Scheduled Tribes categorywas 18.6% and 4.5% respectivelyof total employee strength of the Company (as onMarch 31,2015).Regularmeetingswereheldwith representativesofSC/STWelfareAssociationandLiaisonOfficerforredressaloftheirgrievances/concerns.

• Women Development

Women constitute approximately 12.7% of the Company’shumanresource,whereinmorethan80%areintheofficercadre.To cater to the development needs of its women employees,a Women Forum is in place and has been reconstituted toincludeaCoreCommitteecomprisingseniorofficialsasPatron,Chairperson & Co-Chairperson. The Core committee appointsConvener, Secretary, Treasurer and Executive Members whoassistincarryingoutthefunctionoftheWomenForum.

Theforumfocusesonprovidingopportunitiesfordevelopmenttowomenemployeesand identifiesvarious training interventionsespecially in the area of Managerial Skills and Leadership DevelopmentaswellasparticipationinNationalandInternationalConferences&Symposiums.

• Initiatives for the benefit of Persons with Disabilities

EIL is implementing theprovisionsof theDisabilitiesAct,1995bywayof 3% reservation for PersonswithDisabilities. VariousconcessionsandrelaxationarebeingextendedtoPersonswithDisabilities in the recruitment process. In addition, SpecialTransportAllowancetoPwDemployeesareprovidedundertheschemeofthePersonswithDisabilities.Presently,thereare36nos.(i.e.,1.1%)ofPwDemployeesontherollsoftheCompanyasonMarch31,2015.

Corporate Social ResponsibilityInEIL,CSRisthecommitmenttooperateinaneconomically,sociallyand environmentally responsible manner to enhance the Company’s overall contribution to society. The thrust areas for CSR activities/projects are education, healthcare, drinking water/sanitation,rural electrification, environment protection/sustainability,women empowerment, upliftment of underprivileged, communitydevelopment, vocational training/skill centre and promotion ofsports.Company’s CSR activities are directed towards supporting theinitiativesofLocal,StateorCentralGovernmentwithprogrammeslocated inandarounditsProjectSites,RegionalOfficesandHeadOffice,withspecialfocusonthebackwardareasandunderprivilegedsectionsofsociety.InFY2014-15asperCompaniesAct2013,thebudgetaryallocationof2%oftheaveragenetprofitsmadeduringthethreeimmediatelyprecedingfinancialyearshasbeenmadeforCSRactivities.


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Someoftheproject/activitiesundertakeninvariousthrustareasareelaboratedbelow:

Education: The Company facilitated renovation/up-gradation ofinfrastructure in various educational institutes for underprivilegedchildren in Assam. Other projects under execution includeconstructionofauditoriumforgirlstudentsandsupportforsettingup of the Digital Library in Andhra Pradesh, classroom and toiletfacilities(forgirls)inCoimbatore.

EILalsosupportsvaluebasededucationalprogramsinvariousschoolsofUttarakhandandfreeeducationtounderprivilegedchildrenfromtheslumsofDelhi/NCR.

Another on-going key initiative is adoption of 100 and 25 EkalVidyalayas of Dibrugarh District in Assam and Odisha respectivelythrough ‘One Teacher School’.

Health Care: For providing better healthcare services to the poorandneedy, EIL supportedprocurement and installationofMedicalEquipment at Kakinada, installation of one BERA (Brain EvokedResponseAudiometry)testingfacilitysystemforremediatinghearinglossamonginfantsatKochi, installationofBloodBankRefrigeratedCentrifugeformedicalcareofbloodcancerpatientsthroughbloodbanking programs in Kolkata and provided fully equipped Mobile Cancer Detection Van for screening & diagnosing cancer andspreadingcancerawarenessamongpoorsectionsofsocietyinDelhi/NCR.

TheCompanyorganizesgeneralHealth&EyeCheckupCamps forthepoorandneedyresidinginandaroundEIL’sareasofoperationin various states.

Other ongoing projects include installation of medical equipmentfor mentally and physically challenged destitute senior citizens inDelhiandsupport fororganizingcamps fordistributionofassistiveaids&appliancestopoor&needyPersonswithDisabilities(PwDs)inBhubaneswar,Bolangir&ParadeepDistrictsofOdisha&DibrugarhDistrict of Assam.

Drinking Water/Sanitation: In order to improve accessibility to safe drinkingwater to ruralpopulation,EIL supported installationof93ROwatersystemswithwaterstoragetanks inboys&girlshostels/blocksofBapatalatown,AndhraPradeshandconstructionofReverseOsmosis(RO)WaterTreatmentPlantandassociatedfacilitiesateightvillages inKarnataka.Anotherprojectunderexecution is provisionof potable water to six villages through installation of RO watertreatment plants at Kakinada.

UnderSwachhVidyalayaAbhiyan,constructionofsanitationfacilitiesandadditionaltoiletsinschoolsofBihar,Odisha,TamilNadu&Assamis being supported.

Rural Electrification: In an effort to make a significant impact onstandard of living of remotely located village communities, EILsupportsinstallationofLEDsolarpubliclightingsystemin59villagesacross3districtsofMizoram.

Environment Protection/Sustainability: As a step towards raisingawareness in youth and local population about environmentaldegradation, EIL is supporting a social outreach program in TransHimalayanRegionofLeh-Ladakh.Anotherprojectunderthisinitiativeincludes supporting construction & installation of environmentfriendlygreencremationsysteminNewDelhi.

Women Empowerment: Reinforcing social & economicempowerment of women, EIL supported distribution of sewingmachinestounderprivilegedwomenforadvancedcutting&tailoringcourse in New Delhi, distribution of prosthesis &medical bras tobreastcancersurvivorsaspost-operativecareatvarioushospitalsinDelhi/NCRandprovidingequipment for trainingofdeafwomenatNewDelhi.

Anotherstep inthisdirectionisconstructionofofficecumtrainingcentreandotherinfrastructuralfacilitiesforunderprivilegedwomenatKakinadaforimpartingvariousskillsandvocations.

Upliftment of underprivileged: Playingasupportiveroleinpromotingpersonswithdisabilities,EILorganizedanassessment&distributioncampfordistributionofassistivedevicesinNewDelhi.

Three workshops, each in textile (Delhi), paper craft (Delhi) &cosmetics (Nainital) for product development through design &innovationandprojectforphysicallychallengedpersonsinIT/ITES/BPO sector through training and skill developmentprogramswereorganized at Bengaluru.

Forthecauseandcareofdisadvantaged&abandonedseniorcitizens,EIL facilitated constructionof one block ofOldAgeHome– ‘GuruVishramVridhAshram’atLathira(UP),constructionofOldAgeHomeatMirzapurDistt(UP),distributionof3440numberofAdultDiapersfor old disabled persons in Vridh Ashram, Badarpur(Delhi) andinstallationofsolarpanels&waterheatersystemsforold&infirminNewDelhi.ProjectsunderexecutionareconstructionoffirstfloorofOldAgeHomefortheBlindandinstallationofliftatOldAgeHomeforseniorcitizensinNewDelhi.

Other initiatives undertaken by EIL for empowering theunderprivileged include Construction of girls block and associatedfacilities to accommodate abandoned HIV/AIDS infected/affectedwomen& girls at KancheepuramDistrict, renovation of sanitationfacilities at educational institute for students from marginalizedbackground in New Delhi and construction of vocational trainingcentre at Chikkaballarpur to promote entrepreneurship &employability skills among rural youth.

Community Development: Lending a helping hand towardsadvancementofcommunity,EILfacilitateddevelopmentofPanchayatHallandprovisionofwatersupplylinesfortheruralcommunityofPadur.

To strengthen rural infrastructure for the local residents of various villages of Yanam (Puducherry), project for construction of RCCretainingwall/roadsidedrains/Compoundwallisunderexecution.

Vocational Training/Skill Centers:EIL isextendingsupporttowardsemployment oriented skill development training of youth at Bhopal andFaridabadintradeslikeWeldingTechnology,GraphicDesigningetc and special placement-linked, skill development training invarioustradeslikeIT/ITES,Hospitality&RetailSupervisory,Garmentssector,etcforyouthinManaliandSiruseriareaofChennaiinTamilNadu.

Projects for skill development and employment oriented training for Persons with Disabilities (PwDs), SC/ST/OBC, Women andEconomicallyWeakerSectionofsocietyinvarioustradesacrossIndianearEIL’sareaofoperationandfor40candidatesbelongingtoSC,ST,OBC and BPL category in ElectricalWireman trade in Bharuch,Gujaratarealsounderexecution.


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Swachh Bharat AbhiyanSwachhBharatAbhiyan isatransformational initiative launchedbytheHon’blePrimeMinister,ShriNarendraModi.YourCompanyhaseagerlyrespondedtotheHon’blePrimeMinister’sclarioncallforaSwachhBharatandundertakenvariousactivitiesduringtheyear:

Swachh Vidyalaya Programme: To help provide the basic amenity of safe and clean toilets to a large segment of the Indianpopulationesp.thewomen,EILadopted509schooltoiletsinthestatesofBihar,Odisha,TamilNaduandAssamforconstructionandrepairlastyear.Separate toilets were planned for girls and boys in schools, someofwhicharelocatedinveryremoteareas.Withactiveinvolvementof the local, state and central govt., tenders have been issued foramajorityof jobs,constructionofseveraltoilets is inprogressandmanyhaveachievedcompletion.

Shramdan: EIL officers have been participating enthusiastically incleanliness drives that are organized on a regular basis in and around theHeadOffice,adjoiningtrafficislandsandvarioussitepremises.

Awareness Campaigns/Social Media: Photographs, news itemsandarticlesonvariousactivitiesrelatingtoSwachhBharatAbhiyanhavebeenuploaded/publishedregularlyontheCorporateWebsite,Intranet,Facebook,Twitter,CompanyJournalsetc.

TheUnauditedFinancialResultsofEILfortheQuartersendingSept30, 2014andDecember31, 2014weredesignedon the themeof“SwachhBharat”.

ToincreasepublicawarenessabouttheSwachhBharatAbhiyaan,anoutdooradvertisementhasbeendisplayedatabusqueueshelterinBhikaijiCamaPlacewhichcaterstothehighvolumetrafficpassingthroughthebusyRingroad.Afront-litsignage(60ftx30ft)hasalsobeeninstalledonthefrontfacadeofEIAnnexebuilding.

Cleanliness and Sanitation: Inspectionoftoiletsandfloorsinofficepremisesisundertakenalmostdaily/weeklyatallEILoffices.DetailedReportsarereceivedfromsiteIn-chargesviaEIL’sFieldPersonnelCell(FPC)andAdministrationpersonnelatEILHO/Gurgaon.Further,MCDhasaccordedapprovaltoEILforadoptingareasinfrontofEIBhawanat Bhikaiji Cama Place for its upkeep and maintenance.

Waste to Fuel: EILshallbeadoptingaheritageCityinNorthernIndiatosetupaWastetoFuelconversionfacilityaspartofthecleanlinesscampaign, Swachh Bharat being undertaken under the aegis ofMoP&NG.

InadditiontotheaboveCSRhighlights,areportonCSRactivitiesasper theprovisionsof theCompanies Act, 2013 is annexed to thisreport.

Make in India“MakeinIndia”isapath-breakinginitiativelaunchedbytheHon’blePrime Minister aimed at reviving and revitalizing the manufacturing sectorinthecountry.Aspartofthe“MakeinIndia”campaign,EILhasbeenpursuingseveralinitiatives:

• Identificationofcurrentimportsinthissector.• Focusonimportsubstitutionandpolicyinitiativesasenablers.• Vendor interaction to upgrade indigenous manufacturing

technologies. • Indigenizationofequipmentmanufacturingtoincreasedomestic

content.

• Onlineempanelmentofprospectivevendors.

• Vendor enlistment through continuous interaction, assessmentandevaluation.

• Continuous interaction with other organizations towardscollaborativeresearch.

• Localskilldevelopmentinitiativeandenablers.

EILispilotingtheMidstreamsectorsforMakeinIndiainitiativeunderMoP&NGandisamemberoftheSteeringCommitteesetupforthepurpose.AVendorMeetwithallstakeholderswasheldinMumbaiforsensitizingthemanufacturingsectortothepolicyinitiativebeingcontemplated.

Official LanguageTo propagate and enhance usage of Official Language incommunication,variousinitiativeslikefacilitationofRegularClasses&CorrespondenceCoursesforemployeesnotconversantwithHindi,HindiworkshopsandcelebrationofHindiFortnightwereundertaken.

InitiativeswerealsotakeninthefieldofITtofacilitateuseofHindiLanguageinofficialworkbyupgradingHindiSoftwareandinstallingGlossary on Company’s Portal. The facility of Google translation,Mahashabdkosh of Home Ministry has also been provided onPersonal Computers.

Rajbhasha Vibhag organized ‘Hindi Kavita Path’ competition forundertakings of Delhi under the aegis of Town Official LanguageImplementation Committee (TOLIC) and EIL was honored fororganizing this programme.

Inspection of Official Language through TOLIC and Committee ofParliamentonOfficialLanguagewasconductedattheHeadOffice,NewDelhi.RajbhashaVibhagalsocarriedoutregularinspectionsatitsDivision/DepartmentsandRegional/Field/ProcurementofficesduringtheyearinaccordancewiththeOfficialLanguagepolicy.

Awards and Accolades• ConfermentofSCOPE‘NavratnaTrophy’bytheHon’blePresident

of India.

• India Today PSUs Award 2014 in the category of “Best GlobalPresence”toEIL.

• FICCIChemicalandPetrochemicalAward2014inthecategoriesof “Process Innovator of the Year-Petrochemicals” and“SustainabilityAwardforBestGreenProcess-Petrochemicals.”

• PSE ExcellenceAward 2014 forHumanResourceManagementbyIndianChamberofCommerce(ICC)andDepartmentofPublicEnterprises(Govt.ofIndia).

• “GEMOF INDIA”award toMs.VeenaSwarup,Director (HR) intheHumanResourceCategoryinrecognitionofheroutstandingaccomplishmentsandindividualexcellenceinherchosenfieldofactivitybyAllIndiaAchievers’Conference.

• Awardfor“OutstandingContributioninOil&Gas(EPCCategory)”forPFCCUnitofMRPLPhase IIIRefineryProjectbyEPCWorldMedia Pvt. Ltd.

• Asia Pacific HRM Congress Award 2014 in the category of“OrganizationwithInnovativeHRPractices.”

• EngineeringPSEoftheyear2014AwardbyPSEJournal&EnertiaFoundation.


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• “HR Leadership Award” by LOKMATASPIRE for leadership andoutstandingcontributioninthefieldofHRtoMs.VeenaSwarup,Director(HR),EIL.

• SKOCHPlatinumAwardforCrudeOilStrategicStorageProjects.• SKOCHOrder-of-MeritforHumanResources.• EnergyandEnvironmentFoundationGlobalHRSkillDevelopment

Award2015.• OutstandingNationalCitizenAward’byNationalCitizensGuildin

recognitionofheroutstandingachievementsinthechosenfieldofActivitytoMs.VeenaSwarup,Director(HR),EIL.

• Golden PeacockAward for CorporateGovernance for the year2014institutedbyInstituteofDirectors(IOD).

• Bharat Jyoti Award to Ms. Veena Swarup, Director (HR) forMeritoriousServices,OutstandingPerformanceandRemarkableRole.

• 7thCIDCVishwakarmaAwardfor‘BestConstructionProjects’forDeenDayalFieldDevelopmentProject,OGT,KakinadaofGSPC.

• BTStarPSUExcellenceAward2014inthecategoryof‘DirectorPersonnel forOutstandingPerformance’ toMs.VeenaSwarup,Director(HR),EIL.

• 7thCIDCVishwakarmaAwardfor‘ConstructionHealth,Safety&Environment’ forGAILPC - II ExpansionProject,Pata. EILwasalso the recipient of CIDC Partners in Progress Trophy.

• Indian Achievers’ Award to Ms. Veena Swarup, Director (HR)for Corporate Leadership in Human Resources for outstandingachievementsinBusiness&SocialService.

Joint Ventures and Subsidiaries

• Joint Ventures

Ramagundam Fertilizers and Chemicals Limited (RFCL)

For settingup gas basedurea plant of capacity 3850 TPD, EIL,National Fertilizer Limited (NFL) and Fertilizer Corporation ofIndia(FCIL),haveincorporatedRFCLasaJointVentureCompanyatRamagundam inKarimnagardistrictofTelengana.NFL&EILwilleachhave26%equityinJVC.EILhasbeenretainedasProjectManagementConsultant forprojectexecutiononEPCMmode.TheProjectcompletionscheduletocommissiontheplant is36months.NFLisareputedplayerinthefertilizersectorandtheirexpertisewouldbeutilizedforoperatingtheplantaswellasformarketingoftheproducts.Theplantisbeingbuiltontheexistingland of FCIL.

TEIL Projects Limited

TEILProjectsLtd.,theJointVentureCompanywithTataProjectsLimited,isexecutingconsultancyprojectsinOil,GasandRefinerysectorandCityGasDistributionprojects.TEILisalsoendeavoringtoenterintobusinessrelatedtoWaterPurificationPlants.

Jabal EILIOT Company Limited

EIL’s Joint Venture Company, Jabal EILIOT, has been pursuingprequalification with major Clients in Saudi Arabia like SaudiAramco,SABICetc.JVCcouldnotsecuresignificantEPCbusinessinspiteofconcertedefforts.Inviewofthechallengesimposedbythebusinessenvironment,theshareholdersrecognizedthatit is impossible to realize the objective forwhich the JVCwasincorporated and accordingly decided to dissolve and initiatedtheprocessofwindingupoftheJVCtoarresterosionofcapital.

• Subsidiary Companies

Certification Engineers International Limited (CEIL)

CEIL, a wholly owned subsidiary of EIL, continued to provideCertification as well as Third Party Inspection (TPI) servicesto various clients. During the year, CEIL secured a number ofassignmentsfromONGC,VMSS,SMC,GSPL,BPCL,variousStateGovernmentsandothers,notableamongthesebeing:

• ONGC- Certification Services for Mumbai High NorthRedevelopmentProject(PLP),SBHTPipelineProject.

• KRCL- Udhampura- Shrinagar-Baramaulla Rail Link (USB RL)Project.

• VMSS,RUDA&SMC-TPIforvariousinfrastructureProjects.

• GSPL-TPIforvariousPipelineProjects.

• Reliance Industries Ltd.

Apart from these, CEIL secured many Third Party Inspectionassignments from clients like Reliance Industries, HeurteyPetrochem, TEDA, Punj Lloyds, ERDMP & statutory auditassignmentsfromGAIL,IOCLetc.

The Board of Directors of the Company has recommended for thefinancialyear2014-15,afinaldividendof`250/-pershare(of face value of`100/- each) in addition to`200/- per shareinterim dividend already paid during the year. With this, thetotaldividendforthefinancialyear2014-15worksoutto`450/-per share. The payment of final dividend is, however, subjecttoapprovaloftheshareholdersintheensuringAnnualGeneralMeetingoftheCompany.

EIL Asia Pacific Sdn.Bhd

EILAsiaPacificSdn.Bhd.(EILAP)wasincorporatedonFebruary21,1994undertheMalaysianCompaniesAct,1965.HoweverduetolocalregulatoryrequirementinMalaysia,EILAPwasnotableto secure any business lately. Accordingly, with due approvalswindingupactivitiesofEILAPhavebeeninitiated.

As required under the provisions of the Companies Act, 2013,a statement on performance and financial position of each ofthe Subsidiaries and Joint Venture Companies is annexed toConsolidated Financial Statement and is not repeated as part of theDirectors’Reporttoavoidduplication.

In accordance with the provisions of the Listing Agreement,the company has formulated a policy for determining Material Subsidiariesandthesamehasalsobeenpostedonthewebsiteof the company at http://engineersindia.com/corporate-governance/m-160.

Corporate Governance TheCompanyiscommittedtogoodCorporateGovernanceaspertherequirementsofSEBIandDPEGuidelines inthisregard.TheBoardofDirectorssupportsthebroadprinciplesofCorporateGovernance.In addition to the basic issues, EIL Board lays strong emphasis ontransparency,accountabilityandintegrity.AsrequiredunderClause49 of the Listing Agreement and DPE Guidelines on CorporateGovernance, the Report on Corporate Governance, together withtheAuditors’ Certificate on complianceof conditions of CorporateGovernance,alongwiththeManagement’sReplyonthecommentsof Auditors is annexed to this report.


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Number of Meetings of the BoardTheBoardmet seventimesduring thefinancial year2014-15, thedetails of which are given in the Corporate Governance ReportannexedtothisReportwhichformspartoftheAnnualReport.Theintervening gapbetween any twomeetingswaswithin theperiodprescribedunderCompaniesAct,2013,ListingAgreementandDPEGuidelinesonCorporateGovernance. For furtherdetails regardingnumberofmeetingsof theBoardand itscommittees,pleasereferCorporateGovernanceReport,annexedtothisReport.

Composition of Audit CommitteeTherecommendationsmadebytheAuditCommitteeduringtheyearwereacceptedbytheBoard.TheotherdetailsofAuditCommitteelikecomposition,termsofreference,meetingsheldareprovidedintheCorporateGovernanceReportannexedtothisReport.

Declaration by Independent DirectorsThe Company has received necessary declaration from eachindependent director under Section 149(7) of the Companies Act,2013, that he meets the criteria of independence laid down inSection149(6)oftheCompaniesAct,2013,Clause49oftheListingAgreementandDPEGuidelinesonCorporateGovernance.

Training of Independent DirectorsThe Company has a well defined Training Policy for trainingof independent directors which inter-alia includes the variousfamiliarisation programmes in respect of their roles, rights,responsibilitiesintheCompany,natureoftheindustryinwhichtheCompany operates, business model of the company etc. Further,the same is also taken care during the various strategy meets of the Company and different presentations in the Board/Committeemeetingson thestatutoryLaws.Thedetailsof such familiarisationprogrammes/Training Policy have also been posted on thewebsite of the Company at http://engineersindia.com/corporate-governance/m-160.

Directors and Key Managerial Personnel (KMP)(i) Inductions

Shri Ashwani Soni was appointed as Additional Director inthe capacity of Director (Projects) w.e.f. 1.09.2014 in termsofMinistry of Petroleum&NaturalGas,Government of India,letter no. C-31018/2/2012-CA/FTS:23053dated7.07.2014. ShriSanjayGupta,Director(Commercial)wasappointedasAdditionalDirectorandChairman&ManagingDirectorintermsofMinistryof Petroleum & Natural Gas, Government of India, letter no.C-31018/2/2014-CA/FTS:30457 dated 8.05.2015. Further, ShriSanjay Gupta, Chairman & Managing Director and Shri RamSingh,Director(Finance)werealsodesignatedasCEOandCFOrespectively to comply with the provisions of Companies Act,2013withrespecttoappointmentofKeyManagerialPersonnel.ShriSanjayGupta,Chairman&ManagingDirectorwasentrustedwiththeadditionalchargeofthePostofDirector(Commercial)foraperiodof3monthsw.e.f.1.06.2015to31.08.2015ortilltheappointment of regular incumbent to the post or until furtherorders whichever is the earliest videMinistry of Petroleum &Natural Gas, Government of India, letter no. C-31018/3/2015-CA/FTS:38389dated25.06.2015.

(ii) Re-appointments

InaccordancewiththeprovisionsoftheArticlesofAssociationof

theCompany,Ms.VeenaSwarup,Director(HR)(DIN:06388817)andShriAjayN.Deshpande,Director(Technical)(DIN:03435179)wouldretirebyrotation,attheensuingAnnualGeneralMeeting,andbeingeligible,offerthemselvesforreappointment.

Inaccordancewiththeprovisionsof theCompaniesAct,2013,Shri Ashwani Soni who was appointed as Additional Directorin the capacity of Director (Projects) and Shri Sanjay Guptawho was appointed as Additional Director and Chairman &ManagingDirectorafterthedateof lastDirectors’report,shallvacate their office at the ensuing Annual General Meeting.Necessarynoticeshavebeenreceivedfromthemundersection160 of the Companies Act, 2013, proposing their candidatureforappointment.Thesamehasalsobeengivenonthewebsiteof the Company at http://engineersindia.com/corporate-governance/m-160.TheBoardrecommendstheirappointment.

Brief resume of the Directors seeking appointment/reappointment together with the nature of their expertise inspecificfunctionalareas,namesofcompaniesinwhichtheyholddirectorshipsandthemembership/chairmanshipofCommitteesof the Board along with their shareholding in the Companyetc. as stipulated under Clause 49 of the Listing Agreement,DPE Guidelines on Corporate Governance and other statutoryprovisions are given in the Annexure to Notice of 50th Annual GeneralMeeting.

(iii) Retirements

After the date of last Directors’ Report i.e. 21.07.2014, ShriAdit Jain,Dr.V.Vizia SaradhiandShriD.R.Meena,Non-official(Part-time)IndependentDirectorsceasedtobeDirectorsoftheCompanyw.e.f.28.08.2014.ShriD.Moudgil,Director(Projects)ceasedtobetheDirectoroftheCompanyw.e.f.1.09.2014dueto his retirement on attaining the age of superannuation on31.08.2014. ShriA.K.Purwaha,Chairman&ManagingDirectorceasedtobetheChairman&ManagingDirectoroftheCompanyw.e.f. 1.06.2015 due to his retirement on attaining the ageof superannuation on 31.05.2015. Shri Sanjay Gupta ceasedto be Director (Commercial) consequent to his appointmentas Chairman & Managing Director w.e.f. 1.06.2015. Shri BijoyChatterjee,Dr.R.K.ShevgaonkarandDr.J.P.Gupta,Non-official(Part-time)IndependentDirectorsceasedtobeDirectorsoftheCompanyw.e.f.4.07.2015.TheBoardplacedonrecorditssincereappreciationforthevaluableservicesrenderedandcontributionsmadebyShriA.K.Purwaha,Chairman&ManagingDirector,ShriD.Moudgil,Director(Projects),ShriAditJain,Dr.V.ViziaSaradhi,ShriD.R.Meena,ShriBijoyChatterjee,Dr.R.K.ShevgaonkarandDr. J.P.Gupta,Non-official (Part-time) IndependentDirectorsofthe Company.

Secretarial AuditorM/sAgarwal S.&Associates, Practicing Company Secretaries,wasappointed to conduct the Secretarial Audit of the Company for the financial year 2014-15, as required under Section 204 of theCompanies Act, 2013 and Rules thereunder. The Secretarial AuditReportforthefinancialyear2014-15alongwiththeManagement’sReply on the comments of Secretarial Auditor is annexed to this Report.

Vigil Mechanism/Whistle Blower PolicyTheCompanyhasformedtheWhistleBlowerPolicy/VigilMechanism


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andnopersonnelhavebeendeniedaccesstotheAuditCommittee.The same has also been given on thewebsite of the Company athttp://engineersindia.com/corporate-governance/m-160.

Transfer of Amounts to Investor Education and Protection FundA detailed disclosure regarding the same has been given in the CorporateGovernanceReportwhichisannexedtothisReport.ThesamehasalsobeengivenonthewebsiteoftheCompanyathttp://engineersindia.com/corporate-governance/m-160.

Listing on Stock ExchangesThe Company is listed on The Bombay Stock Exchange Ltd. andNationalStockExchangeofIndiaLtd.TheCompanyhaspaidListingfeesfortheFinancialYear2014-15totheaboveStockExchangesintime.

Nomination and Remuneration CommitteeEIL isaPublicSectorUndertaking (GovernmentCompany)and theappointment of Directors both Executive and Non-Executive aremadebytheGovernmentofIndiaandarebeingpaidremunerationasperthetermsoftheirappointment.TheCompanyhasNominationand Remuneration Committee and the detailed disclosure in thisregardhasbeengivenintheCorporateGovernanceReportwhichisannexed to this Report.

Performance Evaluation of the BoardEIL isaPublicSectorUndertaking (GovernmentCompany)and theappointment of Directors both Executive and Non-Executive aremadebytheGovernmentofIndia.Therefore,thecompanyhasnotlaiddownanycriteriaforperformanceevaluationoftheindependentdirectors and the Board.

Particulars of Contracts or Arrangements made with Related Parties (RPTs)In line with the provisions of the Companies Act, 2013 and theListing Agreement, the Company has formulated a Policy onmateriality of Related Party Transactions and also on dealingwithRelated Party Transactions. The same has been posted on thewebsite of the Company at http://engineersindia.com/corporate-governance/m-160. The Company gives the disclosure regardingmaterial transactionswith related parties on quarterly basis alongwith the compliance report on Corporate Governance. During theyear, there were no material RPTs. Further, suitable disclosure asrequiredbytheAccountingStandards(AS18)hasbeengivenintheNotes to the Financial Statements.

Details of Loans/Investments/GuaranteesIn compliance with the provisions of the Companies Act, 2013,the details of investments made and loans/guarantees providedason31.03.2015aregiven intherespectiveNotestothefinancialstatements.

Extract of Annual ReturnInaccordancewithSection134(3)(a)oftheCompaniesAct,2013,anextract of the annual return in the prescribed form is annexed to this report.

Cost Auditors

TheCompanydoesnotfallundertheCostAuditRulesandtherefore,there is no requirement of cost audit for the Company in terms of amendedCompanies(CostRecordsandAudit)Rules.

Conservation of Energy, Research and Development, Technology Absorption, Foreign Exchange Earnings and OutgoAs theCompany’soperationsdonot involveanymanufacturingorprocessingactivities,theparticularsrequiredunderSection134(3)(m)oftheCompaniesAct,2013readwithRule8(3)oftheCompanies(Accounts) Rules, 2014 regarding conservation of energy andtechnologyabsorptionarenotapplicable.Theparticularsregardingexpenditure and earnings in foreign exchange are given in Note no. 2.25ofthefinancialstatement.

Significant and Material Orders

Therearenosignificantandmaterialorderspassedbytheregulatorsor courts or tribunals impacting the going concern status andCompany’soperationsinfuture.

Other Disclosures

Nodisclosureorreportingisrequiredinrespectofthefollowingitemsaseitherthesewerenotapplicableortherewerenotransactionsontheseitemsduringthefinancialyear2014-15:-

i. DetailsrelatingtodepositscoveredunderChapterVoftheAct.

ii. Issue of equity shares with differential rights as to dividend,votingorotherwise.

iii. Issueofshares(includingsweatequityshares)toemployeesofthe Company under any scheme.

iv. DetailsregardingreceiptofremunerationorcommissionbytheManagingDirectoror theWhole–timeDirector fromanyof itssubsidiaries.

v. Buy-backofshares.

vi. Issue of Bonus shares.

Further,thenamesofCompanieswhichhavebecomeorceasedtobeitssubsidiaries,jointventuresorassociatecompaniesduringtheyear are NIL.

Duringthefinancialyear2014-15,therewerenocasesfiledpursuantto the Sexual Harassment of Women at Workplace (Prevention,ProhibitionandRedressal)Act,2013.

Code of ConductEILhasformulatedaCodeofBusinessConductandEthicsforBoardofDirectorsandSeniorManagementPersonnel.Theconfirmationofcompliance 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.AdeclarationdulysignedbyC&MDisgivenunderpara2(e)oftheReportonCorporateGovernanceannexedtothisReport.TheCodeof Business Conduct and Ethics for Board of Directors and SeniorManagementPersonnelaregivenonthewebsiteoftheCompanyathttp://engineersindia.com/corporate-governance/m-160.

Right to InformationUndertheprovisionsofsection4oftheRighttoInformationAct,2005everypublicauthorityisrequiredtodisplaynecessaryinformationtocitizenstosecureaccesstoinformationunderthecontrolofpublicauthority in order to promote transparency and accountability in its workingandfunctioning.

EIL, being a responsible public sector undertaking, has displayedessential information on its website under the head RTI. Themanagement has notified CPIO and the First Appellate Authority


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(FAA)incompliancewiththerequirementsoftheRTIAct.BetweenApril01,2014andMarch31,2015,atotalof181(onehundredeightyone)applicationswerereceivedbytheCompanyandallofthemweredisposedoffbyproviding requisite informationasper rules.ApartfromRTIapplications,theCompanyalsoreceivedappealsagainstthedecisionofCPIO,whichtooweredulyattendedtoandappropriatelydisposedoffbytheFirstAppellateAuthority.Itishearteningtonotethat Central Information Commission has not passed any adverseorderagainsttheCPIO/FAA.

Directors’ Responsibility Statement YourDirectorsstatethat:

a) in the preparation of the annual accounts for the year endedMarch31,2015,theapplicableaccountingstandardsreadwithrequirementssetoutunderSchedule III to theCompaniesAct,havebeenfollowedandtherearenomaterialdeparturesfromthesame;

b) theDirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasatMarch31,2015andoftheprofitoftheCompanyfortheyearendedonthatdate;

c) the Directors have taken proper and sufficient care for themaintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets oftheCompanyandforpreventinganddetectingfraudandotherirregularities;

d) the Directors have prepared the annual accounts on a ‘goingconcern’basis;

e) the Directors have laid down internal financial controls to befollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandareoperatingeffectively;and

f) theDirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.

AuditorsM.Verma&Associates,CharteredAccountantswereappointedasAuditorsoftheCompanyforthefinancialyear2014-15bytheOfficeofComptroller&AuditorGeneralofIndia.

Bankers BankersoftheCompanyincludeStateBankofIndia,IndianOverseasBank,StateBankofTravancore,VijayaBank,CorporationBank,Bank

ofBaroda,PunjabNationalBank,UnionBankof India,HDFCBank,ICICIBank,IndianBank,BankofIndia,OrientalBankofCommerce,CanaraBank,IDBIBank,AxisBank,IndusIndBankandCitiBank.

Particulars of EmployeesAs per the provisions of Section 197 of the Companies Act, 2013andrulesmadethereunder,GovernmentCompaniesareexemptedfrom inclusion of the statement of particulars of employees. Theinformationhas,therefore,notbeenincludedaspartoftheDirectors’Report.However,thesameinformationisopenforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween10.30a.m.to12.30p.m.priortotheAnnualGeneralMeeting.

AcknowledgementYour Directors are grateful for all the help, guidance and supportreceivedfromMinistryofPetroleum&NaturalGasandfromotherMinistriesoftheGovernmentofIndia.YourDirectorsarealsogratefultotheBankers,StatutoryAuditors,Comptroller&AuditorGeneralofIndiaandtheinvestorsfortheircontinuedpatronageandconfidencein the Company.

YourDirectorsthankallouresteemedclientsforthefaithandtrustreposedintheCompany.Withcontinuouslearning,skillupgradation,technology development, we will continue to provide world-classprofessionalism and services to our clients.

YourDirectors thankall associates, vendorsandcontractorswithinthecountryandabroad,fortheircontinuedsupportwithoutwhichEILcouldnothaveachieved thedesired results.YourDirectorsaregrateful to all the Foreign Missions in India and Indian Missions abroad in countries where EIL has business operations for theircontinuedhelpandsupport.

Your Directors wish to convey their appreciation to all employeesforthevaluableservicesandcooperationextendedbythemandareconfident that theywill continue to contribute their best towardsachievingstillbetterperformanceinfuture.

For and on behalf of the Board of Directors

SanjayGuptaChairman&ManagingDirector

Place:NewDelhiDate:July9,2015


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Annexure to the Directors’ Report

WearepleasedtopresentourperformancehighlightsforFY2014-15and the business outlook for this year:

1. Business Overview

For the year 2014-15, the Company secured business worth`2305Croreswithsegment-wisebreakupasfollows:-

DomesticConsultancy : `610crores DomesticTurnkey : `442crores Overseas : `1253crores

Major contributions in our order inflows continue to be fromHydrocarbonandPetrochemicalbusinesses.

Intheupstreamsegments,majorassignmentssecuredduringtheyearwere ProjectManagement Contractor (PMC) forMangalaPhase-2EORProjectandFEEDforBhagyamPolymerEORProjectof Cairn India Limited.

In therefining&petrochemicalsector,majorconsultingorderssecuredwereDHDTUnitofBPCLMumbai,Consultancyservicesfor IOCL’sDelayedCokerUnit&allied facilitiesunderDistillateYield Improvement Project at Haldia, Conversion of CatalyticReformer Unit into Isomerization Unit and Process Design &EPCMConsultancyServicesforTailGasTreatmentUnits(TGTU)ProjectatMumbaiRefineryofBPCL.

TheCompany further augmented its foray into the LNG sectorwiththeawardofFEEDforLNGTerminalinGirSomnath,Gujarat,forHPCLShapoorjiEnergyLimited(HSEL).

In the infrastructure field, EIL was awarded Projects fromIndian Rare Earths Limited (IREL), Chatrapur, Ganjam, Odishafor Consultancy Services for Site related Civil, Electrical andMechanicalPipingWorksof5MLDSeaWaterDesalinationPlant,PunjabWaterSupply&SewerageBoardforDPRforAbatementofpollutioninBuddhaNalainLudhianaCityandKamarajarPortLimited for Development of Container Terminal through PPP mode on DBFOT basis.

TheCompanyalsosecuredbusinessinnewerareassuchasPre-FeasibilityStudyforCoaltoPolyGenerationProjectatMundra,GujaratofAdani,PetcokeGasificationFeasibilityStudyreportforNFL-Nangal,DFRofSolarPowerProjectatGAILPata.

In the pipeline sector, EIL secured Project ManagementConsultancy Services for KG Basin Pipelines RestorationWorksincluding Health Assessment/Integrity Check of the PipelineSystem forGAIL and EPCMServices for re-routingofMumbai-Manmad Pipeline for BPCL.

In LSTK domain, EIL was successful in securing the job forexecuting Hazira Modification Job under Daman DevelopmentProjectonOBEbasisfromONGC.

In the overseas markets, the Company achieved considerablesuccessduringtheyear.EILhasmadesignificantforayintoAfricaby securing a PMC assignment for a Grassroot 460,000 BPSDRefinery and 690 KTPA Polypropylene plant for Dangote OilRefiningCompany inNigeria.This is,tilldate, the largestvalueconsultancy order received by your Company. In addition totheabove,EILhassecuredConsultancyServicesassignmentforLobitoRefineryProjectofSonangolE.P. inAngola.EILwasalso

successful insecuringaPMCassignmentforaFertilizerProjectcomprisingAmmonia,Urea&MethanolPlantsofBrassFertilizerin Nigeria. The Company has also made a successful entry into South Sudan by securing a Feasibility assignment for building the SouthSudan-Ethiopia-DjiboutiPipeline.

EIL has been very successful in Oman this financial year. TheCompany secured PMC Services for an Integrated Petrochemical ComplexnearSoharRefineryforOmanRefineriesandPetroleumIndustries Company (Orpic). This is a very significant projectforOrpicaswellasOman.Additionally,EILalsobaggedaPMCassignmentforRFCCRevampandimprovementworksforvariousunits at Sohar Refinery and Preparation of FEED for Pet CokeHandlingFacility.

In Bahrain, EIL was awarded its first Training Assignment,where the Company’s specialists provided training to BahrainPetroleum Company (BAPCO) employees on Design andEngineering concepts. Thishasopenednewavenues forEIL toundertake training assignments for BAPCO and other clients in theHydrocarbonsector in the Internationalmarket.EILwassuccessful in renewing its General Services Agreement withBAPCOforfurther2yearswhichisalsolikelytopavethewayforvarious engineering assignments for the Company.

UAEhasbeenaveryconsistentmarketandprovidedsuccesstoEIL in its effort to expand its businessprospects overseas. TheCompanyhasalreadystrengtheneditsexistingengineeringofficein Abu Dhabi. In UAE, EIL succeeded in securing assignmentsfromTakreerinvolvingConsultancyservicesforCrudeUnitTowerDebottleneckingatAbuDhabiRefinery,MussafahTerminalFireFighting Facility Adequacy Study and SOR Development andProtection Relay Coordination Study for Abu Dhabi RefineryDivisionElectricalPowerNetwork.

EILhasalsomadeentryintoRussiabysecuringanassignmentforaNaturalGasBasedUreaAmmoniaPlant.

2. Business Environment & Future Outlook

As per latest World Economic Outlook report, global growthstillremainsinlowgear.ForFY2015,it isprojectedat3.5%.InUSA, growth is expected to rise from 2.7% in 2014 to around3.6%in2015.InEuroarea,growthinthethirdquarterof2014wasmodestlyweaker thanexpectedand continues todecline.In Japan, theeconomy fell into technical recession in the thirdquarter of 2014 but it may strengthen in 2015–16. Russia’ssharp slowdown and depreciation of the Rouble have alsoseverely weakened the outlook for other economies in theCommonwealth of Independent States (CIS) group. China’seconomic growth is expected to reduce from 7.4% to 6.8% in2015.Sizableuncertaintyaboutoilprices inthefutureandtheunderlying drivers of the price decline have added a new riskdimension to theglobal growthoutlook in Sub-SaharanAfrica,Nigeria and South Africa.

IndianGDPatConstantprices(2011-12) inQ3hasregisteredagrowthof7.5%(atfactorcost it is5.8%)duringtheyear2014-15.Thegrowthinthe‘construction’and‘manufacturing’sectorisestimatedtobe4.5%and6.8%respectively.

India’s position in the global economy is showing signs ofstabilizingandisexpectedtoimproveinthecomingyears.Withthe drop in CrudeOil Price, the current account deficit is alsounder control.

Management Discussion & Analysis


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Indiaistheworld’sfourthlargestenergyconsumer.ThetotalsizeoftheIndianOil&GassectorisestimatedtobearoundUS$139.8billion.Inviewoftherapideconomicadvancebeingmadebythecountry, oil consumption is expected to grow at CompoundedAnnualGrowthRateof3.2%betweenFY2008andFY2016.By2025,theIndiandemandforoilwilloutstripJapantobecomethethird-largestconsumerofoilintheworld.

Withshortfallofdomesticgassupplies, Indiaincreasinglyrelieson imported LNG. LNG imports account for almost25% to thetotal gas demand in the country. In the next five years, thedemandforgasisexpectedtomorethandouble.Indiawasthefourth-largestimporterofLNGin2013,accountingformorethan5.5%tototalglobalimports.India’sLNGimportsareforecastedtoincreaseataCAGRof33%during2012–17.

EILishopefulthatwithastablegovernmentatthecentre,therewill be a renewed focus on revival of investment climate bothin energy and infrastructure sectorswhich canprovide growthopportunities for us. The diversified segments of Renewables,Water&Wastewatermanagement,Infrastructureandfertilizershavestrongpotentialforfuturegrowthandwillcontinuetobefocus areas.

In Renewables space, your Company is planning to make in-roadsforsettingupsolarpowerprojectsinIndia.Wealsoplanto capitalize on the current success from overseas markets and buildonthecredentialsforPMCandFEEDservicesforgreenfieldandbrownfieldexpansionprojectsinhydrocarbons.

3. Financial Performance

ThekeyhighlightsofthefinancialperformanceoftheCompanyfortheyear,asstatedintheauditedfinancialstatement,alongwiththecorrespondingperformancefortheyearareasunder:

(Figuresin`Lakhs)

No. Description 2014-15 2013-14

A(i) INCOMEFROMSERVICESRENDERED 171300 182359

A(ii) OTHERINCOME 27311 23209

TOTAL INCOME 198611 205568

B. EXPENDITURE

i) Cost of rendering services 149892 134310

ii) Depreciation 1963 1455

TOTAL 151855 135765

C PROFIT BEFORE TAX (A-B) 46756 69803

D Provision for Current tax 15924 21375

E Provision for Deferred Tax (90) 550

F Prior Period Tax Adjustments,Short/(Excess)

124 (98)

G PROFIT AFTER TAX (C-D-E-F) 30798 47976

H Dividend 16847 21900

I Tax on Dividend 3302 3654

J CSRActivityReserve (20) 609

K RetainedProfits 10669 21813

L RESERVES & SURPLUS 239943 229329

M NET WORTH 256790 246176

3.1 Segment wise Performance In linewithAccountingStandard (AS-17) “SegmentReporting”,

theCompanyhas(segmented)strategizeditsbusinessactivityintotwobusinesssegments i.e.Consultancy&EngineeringProjectsand Turnkey Projects, taking into account the organizationalstructureandinternalreportingsystemaswellasdifferentrisksandrewardsofthesesegments.Segmentresultsaregivenbelow:

(Figuresin`Lakhs)

Consultancy & Engineering Projects Year ended 31.03.2015

Year ended 31.03.2014

Segment Revenue



Total 171300 182359

Segment Profit From Operations



Total (A) 28393 53229

Prior period adjustment 818 277

Interest 23 6

Otherun-allocableexpenditure 8107 6352

Total (B) 8948 6635

Other Income (C) 27311 23209

Profit Before Tax (A-B+C) 46756 69803

Capital Employed (*) 256790 246176

(*) Fixed Assets used in the Company’s Business or LiabilitiesContractedhavenotbeenidentifiedtoanyofthereportablesegmentsas the fixed assets and support services are used interchangeablybetweensegments. Accordingly,nodisclosurerelatingtosegmentwiseassetsandliabilitieshasbeenmade.

3.2 Financial Performance in relation to Operational Performance The Company has registered turnover of `171300 Lakhs in

FY2014-15, as stated in the audited financial statement. Therevenue from consultancy business is `94797 Lakhs and fromTurnkeyProjectwas`76503Lakhs.

The Company has recommended a final dividend of`2.00 pershare(Facevalue`5/-pershare)inadditiontointerimdividendof `3.00persharepaidduringtheyear.

4. Risk & Concerns The Company has a Risk Management policy with a robust

supporting risk management framework which facilitatesidentification and assessment of new risks and review ofpresentlyidentifiedrisks.Theprocessisbasedonidentifiedrisksandtheriskeventsorfactorswhichrequireregularassessmentand quick response. Based on the probability and impact of the risk,therequisitecontrolsandactionplanshavebeendesignedand implemented.

The objective of risk management in the Company is to actas enabler in maintaining its knowledge edge, sustainingand expanding the business, being competitive and ensuringexecutionofprojectswithinbudgetedcostandtime,resultinginimprovedturnoverandprofitability.


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Some new initiatives have been taken up in the field of riskmanagement likeRiskwise audit. It assesses the status of riskat a particular point (duration) of time and helps in quick re-assessmentofexistingcontrols/actionplans.

TheelementsofriskshavebeenidentifiedbytheCompanyanddisclosed for the benefit of all stakeholders. To cover all theelementsofrisksatenterpriselevel,allriskshavebeendividedinto nine categories.

Risks,theirrootcauses,controlsandactionplansarepreparedbyprocessownersandupdatedregularly.TheseareapprovedbytheRiskManagementCommittee(RMC)withDirector(Finance)as chairmanofRMCandall theExecutiveDirectors,HOD (ITS)&CompanySecretaryasmembers.Riskcomplianceverificationsare conducted regularly to test the compliance of controls andthesame is reportedtotheRMC.Therisk identification&assessment processes and risk audit process are being handled through Enterprise RiskManagement System (ERMS) softwareand improvement is done regularly.

Based on periodic reviews and implementation ofrecommendations resulting from review process, the ERMprocess is continuously improved and strengthened. ProjectRisk Management has been implemented for high value and important projects as per the criteria approved by the RMC. A risk register is prepared by listing all possible risk events ofevery discipline associatedwith the project. RiskManagementTeamconstitutedfortheprojectapprovesthefirstriskregisterandmeets everymonth toupdate it and continuously focuseson mitigation of the identified risks. The risk severities arecategorizedincritical,major,cautionaryandminorbasedontheprobability and overall impact. Project Risk Management helps in facilitatingmanagement towards riskmitigation foreffectiveprojectimplementation.Duringtheyear,ReviewofProjectRiskManagementPlanwasdonebytheRMCaswell.

Communicationismaintainedregularlyacrosstheorganizationtospreadawarenessonrisks,rootcausesandactionplansthroughin-house risk management awareness programs, externaltrainings&seminarsandcertificationprogramsonProjectRiskManagement.

Tocreateawarenessandincreasetheinvolvementofemployees,abi-monthly risknewsletter ‘RiskScreen’ isbeingpublished. Itis being shared with all the employees to inform them aboutvarious risk management activities/achievements, new topics/practices/updatesonERMorPRMandtocreateenthusiasminthemtocontrolrisksintheirworkprocessesandareas.

The Company is committed to further strengthen its riskmanagement capabilities in order to protect and enhanceshareholder value. Continuous efforts in creating newopportunities, improving competencies/knowledge in variousareas leadingto improvedperformanceand leveragingexistingknowledge resources, in line with the risk appetite of thecompany,helpstoprotecttheshareholders’interests.

5. Internal Control Systems The Company has in place adequate systems of internal controls

anddocumentedprocedurescoveringallfinancialandoperatingfunctions. These have been designed to provide reasonableassurancewithregardtomaintainingproperaccountingcontrols,monitoring economy and efficiency of operations, protectingassets from unauthorized use or losses and ensuring reliability

of financial and operational information. The Company hascontinued itseffortstoalignall itsprocessesandcontrolswithglobalbestpractices.

Somesignificantfeaturesoftheinternalcontrolsystemsare:

• Preparation and monitoring of annual budgets for alloperatingandservicefunctions.

• AwellestablishedInternalAuditteamreviewsandreportstomanagementandauditcommitteeregularlyontheadequacyandcomplianceofinternalcontrolsacrosstheorganization.

• Cleardelegationofpowerwithauthoritylimitsforincurringcapital and revenue expenditure.

• Corporatepoliciesonaccountingandcapitalacquisition.• Periodic meetings of the management committee at apex

leveltoreviewoperationsandplansinkeybusinessareas.

6. Memorandum of Understanding (MoU) with the Govt. of India EIL signed anMoUwithMinistry of Petroleum& Natural Gas

(MoP&NG) for the year 2015-16with targets for turnover andgross operating margin rate along with initiatives for HumanResourceManagement,R&D,Productivity& InternalProcessesand Sustainability projects.

7. Significant Initiatives In the current refining scenario, the Gross Refining Margins

(GRMs) of vintage refineries with small capacities and lowcomplexity are under stress. In order to maintain leadership position and consolidate business in the core area, EIL hastherefore, made significant suo-moto initiatives to offerprospectiveclientswithopportunitiesforimprovingperformancebymeans of energy optimization, yield improvement, refinerypetrochemical integration, pet-coke gasification for refinery-fertilizerintegration,bottomsupgradationetc.

Focus on internationalization has also been given significantthrust bymeans of plans to ramp-up the Company’s presenceinMiddleEastandfocusonSouthEastAsiaasanewgeographyfor leveraging its technological competence in the core sectors. Africa as a sunrise sector and USA as a strategic area are also under focus.

7.1 Human Resources TheHRfunctionworksinclosealignmentwiththeOrganization’s

business priorities and aspirations of its people. Endeavourstaken during the year have further consolidated the initiativestakeninthepastandbuiltonthemfurtherforcreatingsystemsfor sustainable performance.

TheyearfocusedonstrengtheningHR’sresolveincreatingamoretransparent, performance driven and nurturing environmentforitskeystakeholders–thepeople.TheHRAgendadrawnfortheyear2014-15 facilitated inprioritizingkeyactionareasandsynergizedtheHRteamstoworkinunisontowardsachievementofOrganizationalGoals.

Action points that emerged from the Employee EngagementSurvey-‘Abhivyakti’weretakenupforimplementationinaphasedmanner. The HRMeets and HODmeet-Vicharavesh continuedtoprovidevaluableplatformsforeffectivebrainstormingwhichbrought forth various suggestions for implementation therebycreatinganenvironmentofownership,trustandcollaboration.

To create robust systems of performance assessment in line withIndustrybestpractices,theperformanceappraisalprocess


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andpromotionpolicy for officerswas reviewedand significantchangeswerebroughtabouttodrivehigherengagement.

The Rewards and Recognition scheme was implemented andAnnual Awards were presented to meritorious employees inrecognition of exemplary contributionsmade in their areas ofwork.

The learning & development function was engaged in thetask of creating multifarious learning opportunities for theemployees.ThecorecompetenciesoftheCompanywerefurtherstrengthenedbydesigningandorganizingDomain&SpecializedProgrammes,whereasthemanagerialandbehavioralcapabilitieswerefurtherstrengthenedthroughadequatefocusonsoftskillsprogrammes. Training Division also organized programmes for clientorganizationsinitsnewlyacquiredProfitCentrerole.

Inordertomeettheexpectationsandaspirationsofemployees,policies regarding House Building Allowance, Leave, Medical,Grievance Management, Employee Benefits and entitlementsetc.wererevisedandmademoreemployee-centric.

Extensiveeffortsweremadeduringtheyearforimagebuildingthrough advertisements in internationalmagazines catering totheoil&gasindustrytoprovideworldwidecoverage.CreativesonconfermentofNavratnastatus,SwachhBharatAbhiyaanetc.were developed as signageswhichwere displayed at strategiclocations. To commemorate the 50th Anniversary of EIL, aCommemorative Postage Stamp and Coffee Table Book werereleased by the Hon’ble Prime Minister of India during UrjaSangam-aninternationalenergysummitorganizedinNewDelhionMarch27,2015undertheaegisoftheMinistryofPetroleum&NaturalGas.

7.2 Marketing EIL has continued to build further on its strengths in the

hydrocarbonbusiness inMiddleEastandAfrica.EILalsomademajorbreakthroughs inoverseasmarketswithawardofmajorGreenfieldProjectsinthreenewterritoriesviz.,Nigeria,AngolaandOman.Theprojectsweresecuredagainststiffinternationalcompetition and this further strengthens our credentials inmanagingsuchmulti-billiondollarprojectsinoverseasterritoriesaswell.

EILhasbeensuccessfulinwideningitsclientbaseandgeographicalreachinvarioussectors.NewclientsaddedintheyearincludesOmanRefineries and Petroleum Industries Company (Orpic) inHydrocarbonandPetrochemicalsector,SoharInternationalUrea&ChemicalIndustries(SIUCI)inFertilizersector,BrassinFertilizersectorinNigeria,DangoteinRefinerysectorinNigeria,SonangolinRefinerySectorinAngola,A&AOilandGasGroupofSouthSudaninpipelines,andGlobalSteelHoldingsLimited,Russiainfertilizersector.

Potential business opportunities have been identified in UAE,Oman, Kuwait, Indonesia, Vietnam,Nigeria, Angola etc.wherebids/pre-qualificationsarebeingsubmitted.

EIL has expanded its infrastructure inAbuDhabi by leasing anofficespacefor100employees.ThisofficeisexpectedtoenhancebusinessprospectsfortheCompanyinUAEregion.

7.3 Operational Improvements Keeping in view the Company’s emphasis on improving the

operationalefficiency,various initiativeshavebeenundertakentomovetowardscreatingarobustKnowledgeManagement(KM)System. Electronic Document Management System (eDMS) isbeingutilizedforliveprojectseffectivelyforthispurpose.

7.4 Diversification With the objective of sustained business growth for the

organizationandbrandbuilding,theCompanyplanstodiversifyintorelatedhighgrowthindustrieswherethecoretechnologicalstrengthscanbeleveragedsuchasPower(includingsolar,nuclear,thermal,windetc.)andWater&WasteWaterManagement.TheCompanyalsoplanstoexpanditsEPCbusinessandenterDesign,BuildandOperatebusinessbyenteringintostrategictie-upswithequipmentmanufacturersandconstructionagencies.

Other focus areas of diversification being considered by EILinclude strategic asset ownership in solar power sectors andManaged services. EIL is nowentering into asset ownership inthefertilizersegment.

7.5 Cost Control & Monitoring Effectivecostreductionmeasureslikereductionofsupportstaff

andoverheads,bettercostcontroletc.havebeentakenup.

7.6 Corporate Social Responsibility CSRPolicyoftheCompanyisalignedwiththenationalfocuson

inclusivegrowth,DPEGuidelinesonCSRandtheCompaniesAct2013.ThecorporatesystemsandprocesseswerestrengthenedwiththeformationofaCSRCommitteeoftheBoardandaCSRCouncilbyEILManagementtoprovidedirectionandoverseetheCSRinitiativesoftheCompany.

8. Environment Protection & Conservation, Technological Conservation, Renewable Energy Development, Foreign Exchange Conservation

EILhas taken steps for the implementationof cleanandgreentechnologies in order to reduce carbon footprint of its projects. State-of-the-art technologies in the field of effluent recycle/reuse leading to Zero Liquid Discharge (ZLD) requirements,carbonmanagementforcontrolofvolatileorganiccompounds,hazardous and solid waste management, recovery of oil fromoily sludge and treatment of oily sludge using bioremediationprocess, opting for energy efficient processes and treatmentsystemshavedriventheCompany’sgreeninitiatives.

9. Management Information System (MIS) MIS in EIL is constantly being fine tuned to cater to the ever

growing information needs for effective and quick decisionmakingaswellas forstatutoryrequirements.TheMISDivisionis providing vital data inputs to various Divisions and Senior Managementhighlightingoperatingvariables,achievementvis-a-visbudgetsandotherdecisionsupportdata.

10. Disclosure by Senior Management Personnel ReflectingEIL’scommitmenttowardsincreasingtransparencyin

allspheres,SeniorManagementPersonnelhaveconfirmedthatnoneofthemhasmaterialfinancialandcommercialtransactionswhere they have personal interest that may have a potentialconflictwiththeinterestoftheCompanyatlarge.

11. Cautionary Statement Statements in Management Discussion and Analysis describing

the Company’s objectives, projections, expectations andestimates are based on current business environment. Actualresults could differ from those expressed or implied based onfuture economic and other developments, both in India andabroad.


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Introduction

“We are only custodians of the current world for the future generations and let us keep that in mind all the time from the Climate and environment perspective else we will never be forgiven for our behavior and damage we will leave behind because of our insensitive and profligate unsustainable ways – Anon”

EIL’s sustainability mandate is cause and effect relationship of itsbusiness which evolve around complying with the environmentalregulationsandnormsinawaythatmakeitaresponsiblecompanyand transparent to all its stakeholders.

EIL’ssustainabilityfocusismainlytowards:

• DeliveringprojectsasperourCorporateQualityandHSEpolicieswhich enable our customers to far exceed their targets ofsustainability.

• Fosteringpartnershipwith our esteemed customers, suppliers,contractors and the community to support sustainable development.

• Nurturing and training our highly qualified workforce forsustainabilityinitiativesatindividualaswellasatsocietylevel.

• Developing and deploying environment-friendly technologiesandworkpractices.

• Following robust Corporate Governance policies based onan established code of ethics, transparency and scientificallydeveloped Risk Management System.

Our project designs support sustainability right from the concept stage to plant commissioning and subsequently during the commercialoperation.Energyefficiency,resourceoptimizationandsafetyofplantpersonnel&societyatlargearethecornerstonesofour business operations and also ensure business continuity. Ourdesignthrivesonthegreendesignconceptthatentailsoptimizationof raw material, energy, space, water and the desired productspecification.

OurR&Dinitiativesarefocusedonofferinggreentechnologiestoourclients,whichreducecarbonfootprintandincreaseplantyield.Thesetechnology initiatives include coal gasification, coal to liquid, CO2 removalfromnaturalgasandDHDTandsulfurremovaltechnologiesfrom the fuel.

We at EIL firmly believe in and have consistently practiced robustcorporate governance practices. Transparency, professionalismand accountability in our business operations build trust of allour stakeholderswhich is a pre-requisite for our growth. Our riskmanagement policy and its supporting framework facilitate earlyidentificationandassessmentofrisksfortimelyinterventionthroughappropriatecontrolandmitigationmeasures.

EIL has an unconditional commitment to adhere to the higheststandards in our corporate HSE practices. We are proud of ourachievementsatourconstructionsitesofinjury-freeandincident-freemanhoursofwork.TheinfrastructureandtheworkenvironmentEILprovidestoitsemployees,isbuilttowardsmaintainingasoundwork-lifebalancetoenhancetheirprofessionalandemotionalgrowth.

EIL is a people-centric organization delivering excellence in ourservices through our people. Overall welfare of our talent poolcontinues to remain our top priority. We continuously strive toenhance the capabilities of our human capital by increasing thecompetency and commitment, through various HR initiativessuch as reward & recognition scheme, transparent performancemanagementsystem,mentoring,domainspecifictechnicalprogramsand management development programs.

We continue to reinforce our social commitment through variousprogramsorganizedatconstructionsitestodevelopartisansamongstthelocalcommunityfortheircontributionduringplantconstructionandtopreparethemwiththenecessaryskillsetstoexploitvariousavailable employment opportunities in the long run. Our businessoperationssupportdevelopinglocalmanufacturersandsuppliersasour partners.

Duringtheyear2014-15,ourCSRexpenditurestoodat`1676.3Lakhwhichexceededtheannualexpendituretargetof`1660LakhasperCompaniesAct2013. OurCSRactivities includeeducation,healthcare, drinking water/sanitation, rural electrification, environmentprotection, women empowerment, upliftment of underprivileged,community development, vocational training, contribution toemergency needs and community development in the society.

EIL has made immense contribution in creating nation’s wealthdirectly in terms of value of physical infrastructure created, netsavingsinoutflowofforeignexchange,networthoftheindigenousmanufacturingbasedevelopedandcreationofvastandvariedskillsets among a large pool of human resources.

Inaccordancewiththecalloftime,EILhasrefocuseditsengineeringphilosophy and business models to achieve long term sustainable growth. Alongside EIL has initiated evaluation and reporting of itsperformance on the triple bottom lines of economic, social andenvironmentalaspects.WebelievethatthesustainabilityinitiativesunderwayatEILwillpropelourorganizationonanupwardgrowthtrajectory.

Organization’s Key impacts on sustainabilitySustainabledevelopmentispossiblethroughcollectivecontributionsfrom the government, the society, business entities and theindividuals across the globe. We at EIL as a consultant, plan tointegrate sustainability and safety in our technology, design,engineering&constructionpractices.

ForpromotionofSustainableDevelopment,EILiscommittedto:

• ConductitsbusinessoperationsinlinewithEnvironmentandHSEPolicy.

• Support,adviseandpromoteenvironmentsupportivepracticesto our clients.

• Promoteemployees’ awarenessand learning so that theymayintegrateenvironmentalconsiderationsintotheirdailyactivity.

• Workwithclients,partners,suppliersandsubcontractorstobuilda common environmental management system for each project.


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• Advocate with key stakeholders and decision makers viz.investors,clients,suppliers,governmentagenciesandregulatorybodies, about sustainable development and energy efficientpolicies.

• Engageincommunitywelfareprogramsforsharingamongstthedeprivedsectionsthebenefitsofeconomicdevelopment.

• Promote use of technology and best practices for improvingcarbonfootprintsinourbusinessoperations.

MajorityofEIL’srevenuestodayandinnearmid-termshallcontinueto flow from Indian region, especially the Hydrocarbon andPetrochemicalssegment.SustainablegrowthofEIL innear tomid-termshallbecloselyassociatedtothesocio–politicalenvironment,economic growth and prospects of sustainable development andenergy security in India.

EIL’s R&D Capability for Sustainable Technologies EIL’s R&D is engaged in developing innovative solutions inhydrocarbonindustryeversince1970s.Inthenationalmarket,EIL’sdesigning capability can be judged from the fact that their designed refineryunitsrefinemorenumberofbarrelsofcrudethananybodyelseinthemarket.Today,EILthroughtheirR&Dhavebeenawarded24technologypatentsandmorethan14otherpatentapplicationsunderevaluation.

With a vision to become ‘A world-class globally competitive EPCand total solutions consultancy organization’, EIL is committed toprovidebestpossibleservicesandsolutionstoitsclientsworldover.EIL through theirR&D isalsocommitted to serve thehydrocarbonindustrywiththemostefficientandsustainabletechnologies.

Some of the environmental friendly & sustainable technologiesdevelopedbyEILareasunder:

Meeting environmental quality standards by TGTU for Sulfur removalClaus Tail Gas Treating (TGTU) process has been developed by EILR&D to effectively remove Sulfur by recycling unresponsive Sulfurcomponents likeH2S,SO2,COS,Sulfur,asH2StoClaussectionafterHydrogenation. Claus process integratedwith tail gas treatingunitcanresultin99.9%removalofsulfurfromacid&sourgasescomingfromamineregeneration&sourwaterstripperunitsintherefinery.Withenvironmentalqualitystandardsgettingstringentespeciallyintermsofsulfurcomponents,tailgastreatingunitisneedofthehour.Agrassroot10TPDSRUhavinganintegratedClaussection&TGTUhasbeensuccessfullyimplementedbyEIL.

Cleaner atmosphere with CO2 Removal process (COR) from flue gas by IIP-EIL ProcessCO2 Removal Process (COR Process) jointly developed by IndianInstituteofPetroleum(IIP),DehradunandEILuseshighlyselectiveamine-based solvent to capture CO2 from flue gases. High CO2 loadingmakestheprocesseconomicallyattractive.TheCO2 removal efficiency of COR Process ranges from 75%-90%. Highly pure CO2 produced by this process, can be used for production of urea infertilizer industry. EIL provides total design solution for grass rootCORPlantalongwithancillaryequipment includingwater removaltower,blower,absorber&regenerator.

Cleaner atmosphere with SO2 Removal Process (SOR)SO2 Removal Process (SOR) has been jointly developed by IndianInstitute of Petroleum (IIP) & EIL for flue gas desulfurization. The

process can handle SO2concentrationsvaryingfrom1200ppmvtoashighas20vol%,andproducesatreatedgasstreamwithlessthan100ppmv SO2concentration.Processiseconomicalasitisregenerativeinnatureandisalsohighlyenergyefficient.Theprocesscanverywellbe integratedwithaClausunitwhereSO2 can be used to enhance capacityofSRU.EILprovidestotaldesignsolutionforSORProcess.

Cleaner future with Ammonia treating process (ATP) technologyAmmoniaTreatingProcess(ATP)isdevelopedbyEILtoseparateandprocessammoniafromsourwaterstripper(SWS)gas.Thistechnologyoffersmultifoldadvantagesintheformofenhancedcapacity&lessbackpressuretoSRUunitensuringsmoothandtroublefreeoperation.ReductioninNOxformationhelpskeepthetotalemissionsincheck.Inaddition,avalueaddedproductintheformofammoniumsulfateis recoveredwhich canbeused as fertilizer. EIL has done rigorousexperiments on bench scale level and has a comprehensive set of dataavailable.EILwithitsexperienceasSRUlicensorhaspotentialtoofferammoniatreatingprocessinrefineries.

Vapor recovery and VOC capture technologiesEIL has developed an efficient technology to capture and recoverhydrocarbon vapors using activated carbon. The vapor recoveryunits have been designed for all types of hydrocarbons including benzene. EIL’s vapor recovery units safely prevent harmful volatileorganiccompounds(VOCs)frombeingreleasedintotheatmosphereduringoperationsthatinvolvestransferofevaporativehydrocarbons.Therecoveryofhydrocarbonsthatwouldotherwisebewastedviaacombustionprocess,deliversasignificantreturnoninvestmentwhilemeetinganyknownworldwideemissionstandards.Theunitshavebeendesignedconsideringabsorptionandrecoveryefficiency,safetyandcosttotheclient.Thedesignsareavailableinbothskidandnon-skid versions.

Spent Caustic TreatmentEILdesignstheseunitswithdistinctfeatures,tohandlehighsulfideconcentration in the feed. The overall conversion achieved at theoutletofoxidationreactor isashighas99.8%.Theprocessusedisfoundtobeeconomicalandenvironment friendlywhencomparedwithother technologiesusingchemicaloxidationwithH2O2orwetairoxidationusingpatentedprocess.Theinstalledcapacitiesincludeaunitof5m3/h.

Environment Performance

Environmental Services to IndustriesEIL is a leading consultant in India in carrying out EnvironmentalImpactAssessment (EIA)studiesandpreparationofEnvironmentalManagement Plan (EMP) for new projects. A comprehensive anddetailed EIA study helps in accurately predicting & assessing theenvironmental & socio-economical impacts of the proposed newfacilities.

Havingaccuratelypredictedtheimpacts,EILensuresthatallnegativeimpacts are properly addressed and all mitigations measures aretakentoensurethesustainabilityofenvironmentintheregion.EILalso carries out Environment Health Risk Assessment study for itsclients,which helps in tracing the impact of various pollutants onhealth of the people in the vicinity of the plant.

Initscommitmenttotheenvironment,EILispioneerindeploymentofstateofarttechnologiesinthefieldofeffluentrecycle/reuseleadingto Zero Liquid Discharge (ZLD) requirements, carbonmanagement


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to control volatile organic compounds, hazardous and solid wastemanagement, recovery of oil from oily sludge and treatment ofresidual oily sludge using bioremediation process, opting energyefficientprocessesandtreatmentsystem,etc.

Green Initiatives EIL has installed 90kWp Solar Photovoltaic (SPV) rooftop system-grid connectedwithoutbattery in compliantwithMinistryofNew&RenewableEnergy (MNRE)guidelines in itsEILGurgaonbuildingcomplex in December 2013. The SPV system has been generatingpowerimmediatelyaftercommissioningsinceJanuary2014.TheSPVsystemhasgeneratedapproximately1,25,000KWofenergywithadailygenerationofabove300kWonanaveragesunnyday.

Themaximumdailygenerationof529kWhofenergywasobservedon13thMarch,2014.However, totalPower consumed inEIBDelhiis68,55,940KWandatGurgaonofficeis26,55,770KW. Withtheprovision of SPV system, the demand of electricity from the stateelectricitygridhasreduced.DuringdisruptionofGridpowersupplytothecomplex,theinhousedieselgeneration(DG)setprovidesthepower.SimultaneouslytheSPVsystemaugmentstheinhousedieselgenerator set.

Green Technologies The exploration, production, refining & distribution of petroleumproducts result in the generation of a considerable volume ofpetroleum sludge. The contaminants in sludge are considered hazardousbecauseofthepresenceofbenzene(aconfirmedhumancarcinogen)&othertoxiccontaminants.

EILtookleadinaddressingthisproblemandevolveasolutiontotheproblemwhich isnotonly sustainablebutalsohasenvironmental,social&economicalacceptance.EIL’sR&D&EnvironmentDivisionsin association with Indian Institute of Technology, Roorkee bringstogetherextensiveexpertiseinchemistry,biologyandmicrobiologyincarryingoutresearch&developmenttoofferconfinedreactorbasedsolutionsforbioremediationofoilysludgetoitsclients.Reactor-basedbioremediationisbetteralternativetoland-farmingasitoffersonsitetreatmentofsludgethusavoidingoffsitetransportofhazardousoilywaste& is characterizedbymuchhigher ratesofdegradationduetominimizationofmass-transfer limitation& increaseddesorptionof contaminants by continuous mixing. Residual material afterbioremediationisnon-hazardousandcontainsinorganicclay,siltorsand,water,andverylowlevelsofhydrocarbons.Residualsolidscanbede-watered&reusedinasphaltorotherindustrialpurposes.

Water ConservationEILhasalsobeenprovidingsolutionsforwaterresourcesmanagementwhileprotectingorrestoringourmajorwaterecosystems.EILhelpsenabletheadoptionofinnovativeintegratedwatermanagementforindustries&municipalities,whileworkingtoincreaseenvironmental,socialandeconomicbenefits.SomeoftheapproacheswhichEILhasbeen adopting in its design & engineering to conserve our waterresourcesincludethefollowing:

• Water Conservation: This involves minimizing the waterconsumption & adopting advanced process technologiesresulting in lesseffluentgeneration.Thisalso involvesrecoveryofwaterfromallfeasiblesources.

WaterisprimarilyconsumedinEILofficesfordrinking,cleaning,washing,cooling,plantation/horticultureetc.TheconsumptionofwateratEILHeadOfficeatNewDelhiisabout210KL/Dasagainst

400KL/dayreported lastyear.whereasatEILGurgaonoffice itis about 100 KL/day.Water is sourced from the groundwaterforbothNewDelhi&Gurgaonoffices.Thewaterconsumptionvariesfrom1000to2000m3/annumatdifferentofficesofEILatMumbai,Chennai,KolkataandVadodarawhichincludessourcingpartlyfromgroundwaterandpartlyfrommunicipalitysuppliedwater. Although thewater is sourced both from groundwaterandmunicipalities (which further source it from surfacewaterbodies), there is no significant impact ofwithdrawal onwatersources in view of veryminimal quantity ofwaterwithdrawn.Thereisanincreasingawarenessintheorganizationinmanagingwaterresources.FourteennumberofwaterrechargewellshavebeeninstalledinandaroundEIL’sGurgaoncampusforrecharginggroundwater. Thesewill store 50000m3 of surface run-off ontheirgroundaquiferconsideringtheyearlyrainintensityof600mm.Theusageofwaterinthecompanyisintwocategories.

(i) AtDelhiandGurgaon,wherewehavelargeofficecomplexes,thewaterisusedfordomesticservices.Sourcingofwateratboththeplaces is fromgroundwater. InGurgaoncampus,EIL has state-of-the-art MBR based sewage treatmentplant where complete treated waste water is recycled forhorticulturepurposewithinthepremises.

(ii) The other category relates to providing design services toclientsforusageofwaterintheircommercialplants.DifferentsolutionsfordiversetechnologiesareworkedoutforclientsandcompanyhasnowformulatedpolicyforZeroDischargeforfutureimplementation.

• Zero Liquid Discharge Concept: This involves treatment of liquid effluent/wastewater toproduce freshwaterorde-mineralizedwaterfromeffluent.

• Water Pinch: This involves applying the concepts of Pinch Analysisto improvethewaterutilizationandtreatmentsystemtogether.Thishelpsus inallocatingandreusingdifferentwatersourceseffectivelyforvariousdemandsandtherebyachievesthetarget of zero liquid discharge.

Effluent Management & Zero Liquid Discharge In India, the regulatory requirements in terms of Environmentalprotection are quite stringent. By any benchmark, India has anextensiveenvironmentalmanagementsystemwithacomprehensiveset of environmental laws, specific statutorymandates, regulatoryinstruments,andinstitutionalframeworkstoimplementandenforceenvironmentalpolicyobjectives.

Various technologies & treatment processes were studied withrespect to theirmerits& demerits for being adopted as potentialtechnology/process for effluent treatment & recycle. Pilot plantswereputupinassociationwiththeclientsandthesystemsupplierstoevaluatetheperformanceofvarioustreatmentoptionsineffluentrecycle.

Prominent pilot plants include an enhanced chemical oxidationprocess using hydrogenperoxide in presenceofUV rays atMRPL-Mangalore Refinery and a high efficiency reverse osmosis plant atIOCL-Panipat Refinery. After a comprehensive study and zeroingdown on the treatment processes, the first full-scale effluentsrecycle plant to produce D.M. water from refinery effluent wasputupat IOCLfortheirPanipatRefineryExpansionProject (PREP),whichwassuccessfullycommissioned in theyear2006.Thiswasa


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uniquemilestoneinthehistoryofeffluentrecycleandtheconceptof zero liquid discharge in hydrocarbon industry in India. The success of effluent recycle plant at IOCL-PREP prompted the hydrocarbonindustry in India to increasingly implement such concepts in order to meet the zero liquid discharge requirements stipulated by theregulatoryauthorities.

Some of the other effluent recycle plantswhich either have beencommissioned or are under construction include IOCL - PanipatNaphthaCrackerProject(PNCP),HPCLMumbai-IntegratedEffluentTreatment Plant (IETP), BORL - Bina Refinery, HMEL - BhatindaRefinery, MRPL - Phase III Expansion project and OPaL-DahejPetrochemical Complex.

Solid Waste Management Duetothenatureofourbusiness,solidwastegenerationisalsofairlylimitedinEILofficesandrestrictedprimarilytomunicipalsolidwaste(MSW).Amajor componentof the solidwastegenerated ispaperwastewhichissentforrecycling.Otherwastesincludee-wasteanda small proportionofwastes like batteries, electricalwaste,wastelubeoil, etc.Ourwastemanagementpractices seek to reduce theenvironmental impact of this limitedwaste to the extent possibleby reduction in generation, segregation at source and propermanagement including recycling and disposal through authorized recyclers.Othermixeddrywasteissenttoscrapdealersormunicipaldisposal.

EILalsorecognizedtheimportanceofcontributingtotheprotectionofourenvironmentbyminimizinguseofpaperthatcomesfromwell-managed forests or other controlled sources. Today’s informationand communication technologies provide many opportunities forbusinessestofunctionwithfarlesspaper.Electronicmail,Intranets,IPtransfer,Internetanddocumentscannercanradicallyreducepaperuse, while also save time and money. EIL’s print/paper reductionprogramcontinuestoexpandacrosstheboard intheorganization.Ourgoalsremainthesame:-continuetoreduceoverallprintvolume,increase duplex usage, and remove non-sustainable devices fromuse in the company.Duplexing alongwith the reduction inoverallprintinghasallowedustoeliminatemanynon-committedprintjobsandhasgrownoursustainability-relatedcostsavings.Intheareaofprintmanagement,ouradoptionofnewpracticesandinstigationofbehavioralchangesinourusershasmadeasignificantimpactinourcompany.

EIL also offers its services to industries and municipalities todevelop and implement scientific& sustainablemethods for Solid&HazardousWasteManagement comprising segregation, storage,collection,transportation,treatmentanddisposalofwastebyproperutilizationofresources(men,moneyandmaterials)andaspertheapplicableprovisionsof TheMunicipal SolidWastes (ManagementandHandling)Rules,2000;E-wasteManagementandHandlingRules,2011;HazardousWaste(Management,HandlingandTrans-boundaryMovement)Rules,2008;andotherapplicablerules,regulationsandstatutory provisions.

Social PerformanceHuman Resources & Human RightsHumanresourcesalongwithtechnologyarethetwoprimeresourcesofconsultingorganizationslikeEIL.Overtheyears,EILhasearnedthereputationofbeingaveritabletreasureoftechnicalknowledge, skillsand professional competence.

Programmes such as skills management and lifelong learning support the continued employability of employees and assist them inmanagingcareerendingsincludingHSEandSustainabilityactivities.

Labour Practices StrategiesFindingandretainingrightpeoplehasalwaysbeenachallenge forthe high end consultancy companies as we require a flexible andhighly skilled globalworkforce to deliver in often very demandingenvironments.

We have two types of work force, one working at HO in designareas and theotherworking onfield in executionof the projects.Additionally, Contractors account for approximately three quartersof the hoursworked by ourworkforce on projects. It is thereforeespecially important that these contractor personnel understand and reflectourvaluesandarealignedwithourculture.

The industry is experiencing a shortage of skilled and experienced contractors in technical disciplines and it is expected that this trend willcontinue.Thereforeweareconsciousoftheneedtoensurethatcontractorsworkingforusmeetandmaintainourstandards.

People working in field are trained on labour related policies ofthe organization to maintain standards in services with regard toimplementationofmanagingcontractor’spersonnel.

We have firm policies in place to select contractor, ensure theyare accountable, monitor and audit them and report on theirperformance.We have also firm plans to focus on improving thequalityofcontractorpersonnelandthewaytomanagethem.

Social Strategy and Management Approach (Anti-Corruption strategies)

EIL Vigilance Department under the leadership of Chief VigilanceOfficer (CVO) consistently works towards achieving a transparentand impartialworkingenvironment in the companyand spreadingvigilanceawareness to all employees toeradicate corruption in allitsforms.CVOactsasalinkbetweenthecompanyandGovt.,CVC,CBI,etc.

Vigilance Department undertake activities such as IntensiveExaminationofEIL’sown jobsonLSTK/OBEbasis, randomsurpriseinspectionof in-houseContracts/Purchases, scrutinyof ImmovablePropertyReturns,Vigilanceclearanceofemployees,investigationofcomplaintsetc.withthefocusedobjectiveofensuringconformitytothecompanyproceduresandGovernmentguidelines.Forsystemizingthework,variousrules,regulationsandproceduresofthecompanyarereviewedandscrutinized fromtimetotime. TheobservationsreportedbyCentralVigilanceCommission (CVC)areexaminedandnecessaryactionsaretaken.SystemimprovementsaresuggestedtotheManagementwhereverfoundnecessaryandcomplianceofthesame are pursued for improvement.

AsperCVCguideline‘StructuredMeetings’areheldbetweenCVO,C&MDandDirectors ineveryquarter related toVigilancematters.Inter-directoratemeetingsarealsoheldperiodicallybetweenCVO&Directorstoresolvethependingissues.VigilanceactivitiesarealsopresentedtotheBoardofDirectorsonhalf-yearlybasis.

Vigilance workshops, interactive sessions, seminars, debates,VigilanceAwarenessWeeketc.areorganizedinHO,Regional,Branch,ProcurementandsiteofficesofEILforspreadingvigilanceawarenessandencouraging“ParticipativeVigilance”amongsttheemployeesofEIL.


54

Product Responsibility (Quality Assurance) OurorganizationisISO9001:2008certifiedforQualityManagementSystemsandcurrentcertificateisvalidupto13.10.2015.

Thecertificateforconformancewasoriginallyawarded&issuedon26.09.1994andsincelast20yearswearecontinuouslymaintainingthiscertification.TherenewalcertificationAudithasbeensuccessfullycompleted on 29.08.2012 and auditors have recommended forcertificateofconformanceforfurtherperiodof3years.

Our organization does have a mechanism for monitoring andcollecting feedback/perception of our customers. It is our basicpolicyinEILtomeetorexceedthecustomerneedsandexpectationsand pursue excellence in delivery of our services. To serve our customer’sneeds/expectationsinthebestpossiblemanner,wetakecustomerfeedbackandsuggestionsabouttheservicesprovidedbyEIL forvariousProjects.Thisgivesuspertinent informationandanopportunitytoevaluateourservices/deliverablescriticallyandbringfurtherimprovementinoursystemsandprocessesonacontinuousbasis.

Product Responsibility (Health & Safety)EIL’scommitmenttoHSErequiresthattheiroperationsbeconductedinsuchawayastopreservethehealthandsafetyoftheiremployees,client official, contractors, vendors, and other stake holdersassociatedwithEILworkingandtogivedueregardtotheprotectionof the environment.

The highest standards in health, safety and environmentalpreservation and protection can only be achieved through asystematic approach to the establishment, implementation andmaintenanceofanHSEManagementSystemdesignedtoensure,asaminimum,compliancewiththelawsandprojectrequirementsandtoachievecontinuousperformanceimprovements.

EIL has therefore evolved its safety management system whichensuresthatdueattentionispaidtoeveryaspectofsafetyindesignand,atthesametime,isflexibleenoughtoadapttothecustomer’sspecialrequirements.Itistheconsciouseffortofprojectmanagementthatsuchsafetyenhancementactivitiesarecarriedoutinamannerthatdoesnotaffectthescheduleandqualityofworks.

The HSE services that EIL provides to its clients are continuallyassessed for improvements and enhancements.

VarioussafetystudiesareundertakenbyEILatvariousstagesoftheproject to ensure Plant safety. These are as under:

• Rapid Risk Analysis

• Safe Design Procedures

• HazardAndOperabilityStudy

• SafetyIntegrityLevel(SIL)

• QuantitativeRiskAnalysisStudy(QRA)

• HazardIdentificationStudy(HAZID)

• GasdispersionStudy(Flammable&ToxicGas)

• VentRadiationStudy

• Consequence Analysis

• Fire Safety Assessment

• Safety Layouts

• F&GLayoutsandCause/EffectMatrix

• QualitativeRiskAnalysisstudy

• Disaster Control and Management Plan

• EscapeEvacuationandRescueAssessment

• EscapeRoutelayouts

• FlareRadiationandDispersionStudy

HSE activities (Construction)Constructiondivisionhasanimpressivetrackrecordofachievementsand client satisfaction. The division during the five decades of itsfunctioning has provided construction management services forconstruction of more than 250 major projects besides numeroussmalloneswithinthecountryandoverseas.

Presentlytherearemorethan40constructionsitesspreadalloverIndiaandoverseasprojectsarebeingexecutedatAbuDhabi,Algeria,Nigeria and Bangladesh.

EIL Constructionon an average renders supervision formore than150millionmanhoursannuallyatsites.ConstructionteamhasbeencreditedwithmanyaccoladesandlandmarksinHSEaspects.Someofthenotableachievementsareasunder:-

• 81.86millionmanhourswithoutanyLTA(PREPproject,Panipat)

• 80millionmanhourswithoutanyLTA(PNCPproject,Panipat)

• 60 million man hours without any LTA (Rehabilitation &AdaptationofSkiddaRefineryProject,Algeria)

• 50MillionmanhourswithoutanyLTA(OPaLDahejGujarat)

• 36.29millionmanhourswithoutanyLTA(PTAproject,Panipat)

• 48.3 million man hours without any LTA(MRPL Phase- IIIMangalore)

• 40 million man hours without any LTA(BCPL Lepetkata Assamproject)

• 50millionman hourswithout any LTA (BCPL Lepetkata Assamproject)

• 18.04millionmanhourswithoutanyLTA(DBPLproject,Bangalore)

• 14millionmanhourswithoutanyLTA(SSP,PadurKarnataka)

• 12.4millionmanhourswithoutanyLTA(GAILPata,PetrochemicalComplex)

EIL is also a member of British Safety Council (Membership No:104420) and National Safety Council (CM–DLI-225) for keepingabreastwithlatesttrendsanddevelopmentinHSEmatters.Furtherexternal training is alsobeing arranged through the institutions toemployees.

FollowingactionshasbeentakenbyConstructiondivisionunderSDplan:

• Waste management and environmental aspects have beenintroducedinHSEspecificationsofrecentlyawardedMBPLandMBBVPLprojectsofGSPC.

• Separate contract has been awarded in GSPC Kakinada fordisposal of empty cable drums.

• Separate housekeeping contracts are being introduced at all major project sites.


55

Sustainable Development Initiatives by EIL

SustainableDevelopmenthasbecomeanecessityandareality.EIL’scommitment to sustainability has been strong and enduring and our abilitytoevolveandgrowdefineswhatEILstandsfortoday.

EIL has endeavoured into Sustainability by constituting followingSustainable Development Initiative Project under TechnicalDirectorate:

• Further Improvement on Biodiversity Conservation at one EILProject Site

Biodiversity

BiodiversityisthevarietyandvariabilityoflifeonEarth.Thisincludesall theplants andanimals that live and growon theEarth, all thehabitatsinwhichtheysurvive,andallthenaturalprocessesofwhichthey are a part. The earth supports an incredible array of biodiversity. Unfortunately, the earth’s biodiversity is disappearing, with anestimated 1,000 species per year becoming extinct. Conservingbiodiversity is especially crucial in developing countries wherepeople’s livelihoods are directly dependent on natural resources such as forests, fisheries andwildlife.With the increasing pressure anddemandforlandandunplannedlanduseofvariouslandscapes,formajority of the biodiversity has become the main abode for survival.

AsemphasizedbytheConventiononBiologicalDiversity,anystrategyto slow the loss of biodiversity and to enhance its contribution tosustainable developmentmust integrate three essential elements:conservationofbiodiversity,sustainableuseofitscomponentsandtheequitablesharingofbenefits.

TheResearchandDevelopmentcampusofEngineers IndiaLimitedspreadover33acreatGurgaon isunderrapidchangesbecauseofconstruction of buildings. The vegetation of the campus is highlyfragmented and very littlewild population of plants is left out. Inthepresentscenario,thesystematicexplorationanddocumentationof flora and fauna in each seasonwill provide a complete picture

of current biodiversity in a stepwise and usualmanner.Moreover,an additional plantation program carried out during the presentexplorationstudywhichaddsfewnumbersofspeciestothepresentplantdiversity.Explorationofspeciesseasonwisewithinthecampusareaandadditionofplantspeciesthroughplantationprogrammeingapareaswillgivearesultofimprovementinbiodiversity.

Atotalof314specieswereenumeratedandidentifiedintheR&Dcomplex area in 2014-15. 52moreplant species are added to thespecies enumerated in 2013-14 through continuous enumerationand plantation activity. Based on habit types, herbaceous plantsweredominantinthestudyareaandrepresentedwith174species,followed by trees (82 species), shrubs (44 species) and climbers/stragglerswith14species.Thediversityindexforherbaceousspecieswascalculatedandfound2.0for2014-15.Atotalof11770individualsof28differentspecieswereplanted inthecampusto improvethediversityin2014-15.

Atotalof57speciesofbirdswereobservedduringsurveycarriedoutintheR&DComplexfollowedby24speciesofbutterflies,3speciesofdragonflies,5speciesofreptilesand4speciesofmammals.Threestripedpalmsquirrel,CommonIndianMongoose,CommonRat,andBonnet Macaque Monkey are some of the major mammals sited in the complex.

AShade/Netgreenhousewith15mlengthand10mwidthhasbeendeveloped to nurture the saplings and seedlings requirement in the R&DComplex,Gurgaon. Thiswill help in cultivationof floweringplants, foliageplants,medicinal andaromaticplants, vegetables&spicesandprotectionagainstpestattack.

In order to sustain the rich biodiversity on the campus, a systemofmonitoring the critical habitats and indicator species has to beevolved.Practicalguidelinesandtoolsforbiodiversitymonitoringcanbeeasilydevised.Developmentisanecessaryevilandwilltakeplacewithtimebutoneneedstorecognizethepotentialofthecampusasagreenlungandcarbonsink;ifabsolutelyneededsustainabilityofthenaturalwealthshouldbegivendueconsideration.


56

1. A brief outline of the Company’s CSR policy, including overview of projects or programmes proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programmes.

EIL’sCSRpolicyisstronglyintegratedintotheCompany’sbusinessvision,where the company is committed foroperating its corebusinessinasociallyresponsibleway,bytakingintoconsiderationthewiderinterestsofthecommunityandtheenvironment,withavisionofpromotingsustainabledevelopment.

BoardapprovedEIL’sCSRpolicyaimsatbringingaboutaradicalchangeinthequalityof livesofpeoplebyundertakingpositiveinterventions through social upliftment programmes. The CSRmission of EIL have been guided by two elemental ideations,namely, the philosophy of enhancing the educational, healthand environmental conditions of the society and towardssupplementing/supporting the ongoing and planned initiativesofthelocal,stateorcentralgovernmentwithprojects/programsbeing located in and around its work places which includesprojectsites,regional&branchofficesandHeadoffice.EILhasundertakenCSRProjects/Programs in linewithScheduleVIIoftheCompaniesAct2013,whichareunder the following thrustareas:

I. Education

II. Healthcare

III. DrinkingWater/Sanitation

IV. RuralElectrification

V. EnvironmentProtection/Sustainability

VI. WomenEmpowerment

VII. Upliftmentofunderprivileged

VIII. Community Development

IX. VocationalTraining/SkillCentre

X. PromotionofsportsandProtectionofNationalHeritage,artand culture

Inadditiontoabove,theCSRhighlightsarealsogivenintheDirectors’Report.

The web link for EIL’s CSR project or program is http://www.engineersindia.com/corporate-social-responsibility/m-122.

2. The composition of the CSR Committee.

Thedetails regarding compositionofCSRCommitteearegivenin theCorporateGovernanceReportannexed to theDirectors’Report.

3. Average net profit of the company for the last three financial years.

AveragenetprofitofEILforthelastthreefinancialyearsi.e.FY2011-12,FY2012-13andFY2013-14was`830.70Crore.

4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above).

TheprescribedCSRexpenditurei.e.2%of̀ 830.70Croreis̀ 16.60Crore.

5. Details of amount spent towards CSR during the financial year 2014-15:

a) Total amount to be spent for the financial year

Totalamounttobespentforthefinancialyear2014-15was`16.60Crore.

b) Amount unspent, if any;

Nil

c) Manner in which the amount spent during the financial year

2014-15.

Details are annexed to this report.

6. In case the company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company shall provide the reasons for not spending the amount in its Board report.

Not Applicable

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the company.

The CSR Committee confirms that the implementation andmonitoringofCSRactivitiesof theCompanyare incompliancewiththeCSRobjectivesandCSRPolicyoftheCompany.


Veena SwarupDirector(HR),Member-CSRCommittee

Sanjay Gupta Chairman-CSRCommittee

Annual Report on CSR Activities


57

(1) (2) (3) (4) (5) (6) (7) (8)

S.N. CSR project or activity identified

Sector in which the Project is covered

Location Amount outlay

(budget) project or

program wise (` in Lakh)

Amount spent on the projects or programmes

Cumulative expenditure

upto the reporting

period (` in Lakh)

Amount spent: Direct or through

Implementing Agency

Local Area or other

District/State

Direct Expenditure (` in Lakh)

Overheads (`in Lakh)

1 ConstructionofOldAgeHomeofBrahmvettaShreeDevarahaHansBabaTrust

UpliftmentofUnderprivileged

Village Bhagdevar,P.O.Mahuari Kalan

Mirzapur District,Uttar

Pradesh

20 3 - 3 BrahmvettaShree Devaraha HansBabaTrust

2 ConstructionofadditionalbuildingatBarbaruahJamirahJuniorCollege

Education Barbaruah Block

Dibrugarh District,Assam

5 1.25 - 1.25 District Administration,Dibrugarh and

Barbaruah JamirahJunior

College

3 Renovation/UpgradationofInfrastructure FacilitiesinSarvajaninGovt.AidedHighSchool



5 3 - 3 District Administration,Dibrugarh and SarvajaninGovt.

AidedHighSchool

4 Upgradationofinfrastructural facilitiesofSessaTenali Moidamoni HighSchool



10 8.5 - 8.5 District Administration,Dibrugarh and

Sessa Tenali Moidamoni HighSchool

5 Constructionofadditionalclassroomsandconstructionoflibrary cum reading roomatRameshwarH.S.School



15 3.75 - 3.75 District Administration,Dibrugarh and RameshwarHS

School

6 Provided fully equipped Mobile CancerDetectionVan(X-Raymachine,mammography and ultrasoundmachines)for screening and diagnosing cancer and spreading cancer awarenessamongpoorsectionsofsociety

Healthcare Various locationsinDelhi/NCR

Delhi 157.5 110.25 - 110.25 Indian Cancer Society(ICS)

7 Organized one assessment and distributioncampfordistributionofassistiveaidsandappliances to Persons withDisabilities


HariNagar Delhi 12.5 9.12 - 9.12 ArtificialLimbsManufacturing Corporation(ALIMCO)

Manner in which the amounts spent towards CSR during the financial year 2014-15.Annexure to Annual Report on CSR Activities


58

8 Settingup/constructionofGreenCremationSystems

EnvironmentProtection/

Sustainability

Babarpur in Shahdara and

Satnagar in Karol Bagh

Delhi 156 124.8 - 124.8 Mokshda

9 ConstructionofPanchayat building withcommunityhallandWatersupplypipelineworkfromoverhead tank to individual houses

Community Development

Padur Village Udupi District,

Karnataka

165 110 - 110 District Authority,Udupi

10 Provided Medical EquipmentsforGovernmentGeneralHospital

Healthcare Kakinada Andhra Pradesh

89.6 89.6 - 89.6 GovernmentGeneralHospital,Kakinada

11 Supported Social Outreach program ofM/SPathfindersinTransHimalayanRegion


Sustainability

Leh Ladakh Jammu&Kashmir

9 1.8 - 1.8 Pathfinders

12 Supported the distributionofMedical Prosthesis and Medical Bras to CancerPatients

WomenEmpowerment

Variouslocationof Delhi

Delhi 6.56 0.79 - 0.79 Indian Cancer Society(ICS)

13 Supported the renovationoftoilets,internalseweragepipeline&kitchenofthe school building


Sadiq Nagar Delhi 1.38 0.14 - 0.14 JantaAdarshAndh Vidyalaya

14 Supported the constructionofgroundfloorofBGSVocationalTraining Centre at Chikaballapur


S.J.C.I.TCampus,

Chikaballapur

Chikaballapur District,

Karnataka

200 60 - 60 Shri Adichunchanagiri Shikshana Trust

15 Supported the ConstructionofOldAgeHome


LathiraVillage,Garhmukteshwar

UttarPradesh

219.48 175.58 - 175.58 SaintHardyalEducationaland Orphan

WelfareSociety(SHEOWS)

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




59

16 Supported the Construction/settingup of Reverse Osmosis (RO)WaterTreatmentPlant and associated facilitiesateightvillages

Drinking Water/

Sanitation

(i)HulikunteNavodaya Vidyalaya (ii)Basheetihalli (iii)Hosahudya (iv)Tippapura (v)VivekanandaNagar (vi)Jinkebachalli (vii)Majrahosahalli Village (viii)Chickkatumur

Chikaballapur District,

Karnataka

129.75 38.93 _ 38.93 InstituteofIntegrated Rural

Development (IIRD)

17 Supported the ConstructionofGirlsBlockinAriasHomeofHopetoprovidesheltertoapprox50abandonedHIV/AIDSinfectedwomen/children


Acharapakkam Kancheepuram District,Tamil

Nadu

30 24 - 24 HOPEFoundation

18 Supported the constructionofRoadanddrainfacilities

Community Development

Yanam-KakinadaEILSiteOffice

Andhra Pradesh

292 29.2 - 29.2 District Administration,Yanamand

GovernmentofPuducherry

19 Supported the installationof93ROsalongwithwaterstoragetankin81hostels/educationalinstitutions

Drinking Water/

Sanitation

BapatalatownofGunturdistrict and Prakasam District

Andhra Pradesh

24.99 7.5 - 7.5 InstituteofIntegrated Rural

Development (IIRD)

20 Supported the adoptionof100Ekalvillages/Vidyalayasinrural/tribalareasofDibrugarh,Assamforimpartingtrainingandbasiceducationtoteachers and children

Education Rural/tribalareas of Dibrugarh District


16 9.6 - 9.6 Bharat Lok Shiksha Parishad

21 Supported visually challenged children of MathruEducationalTrustfortheBlind,byprovidingthemwithessentialmaterialslikeuniforms,Braillesheets,washingmachine and pressure cookers


Yelahanka,Bengaluru

Karnataka 1.15 1.15 - 1.15 Mathru EducationalTrust for the

Blind

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




60

22 Provided10SewingMachines for AdvancedCutting&Tailoring Course

WomenEmpowerment

Kalkaji Delhi 0.58 0.29 - 0.29 ShantiSahyog

23 InstallationofoneBERA(BrainEvokedResponseAudiometry)machineto remediate hearing loss among infants at Kochi,Kerala

Healthcare Kochi Kerala 9.14 9.14 - 9.14 Child Care Centre,Kochi

and Indian Academic of Paediatrics

Cochin Charitable

Society24 Organized one Mega

EyeScreeningandCataractOperationCamp under project ‘Drishti’

Healthcare Pata Auraiya District,Uttar

Pradesh

2.2 2.2 - 2.2 Anugraha Drishtidaan

25 Organized10HealthCheck up camps in Delhi NCR

Healthcare Various locationsofDelhi/NCR

Delhi/NCR 3.1 3.1 - 3.1 Mahavir International

26 Supported the purchase and installationofLiftatOldAgeHome'John'sDayCareandBoarding for Senior CitizensAssociation'


Aya Nagar Delhi 8.25 5.78 - 5.78 HelpAgeIndia

27 Organizing3workshopeachintextile(Delhi),PaperCraft(Delhi)andCosmetics(Nainital)forPersonswithDisabilities(PwDs)


Delhi&Nainital Delhi&Nainital

21 15.2 - 15.2 AssociationforRehabilitationunderNationalTrustInitiativeofMarketing(ARUNIM)andNationalTrust

28 ProvidingElectricalspiral binding machine,manualpapercuttingmachinewithrawmaterials,projector,projectorscreen,studentchairsand Mineral RO for underprivileged deaf

WomenEmpowerment

NewDelhi Delhi 4.08 4.08 - 4.08 Delhi FoundationofDeafWomen

29 Support for conductingvalueeducationprogrammein100schoolsinUttarakhandandconduct value based Lakshya Camp

Education DifferentLocationsinUttarakhand

Uttarakhand 24.8 19.84 - 19.84 Vasudev Kutumb

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




61

30 Supportto40underprivileged children from the slumsofDelhi/NCRfor providing free formaleducation

Education Delhi/NCR Delhi/NCR 5.61 4.48 - 4.48 AmityHumanityFoundation

(AHF)

31 Support for organizing 05(five)HealthCheckupcampsat@`60,000/-perCamp

Healthcare (i)Chennai (ii)Dahej (iii)Vijaipur (iv)Kochi (v)Numaligarh

(i)TamilNadu

(ii)Gujarat (iii)Madhya

Pradesh (iv)Kerala (v)Assam

3 2.96 - 2.96 HelpAgeIndia

32 Support for conductingemployment oriented skill development trainingof600youth at Bhopal and Faridabad

Skill Development/Vocational

Training

(i)Faridabad (ii)Bhopal

(i)Haryana (ii)Madhya

Pradesh

244.5 45.78 - 45.78 Centre for Research and IndustrialStaffPerformance

(CRISP)

33 Constructionoffirstfloorof'NABHomefor the Aged Blind' at Dwarka


Dwarka Delhi 96.16 76.93 - 76.93 NationalAssociationfortheBlind(NAB)

34 Installationof300LEDsolarpubliclightingsystemin59villagesacross3districtofMizoram.

Rural Electrification

Three Districts of Mizoram: (i)Aizwal, (ii)Champai (iii)Mamit

Mizoram 97.44 52.91 - 52.91 EnergyEfficiency

Services Limited (EESL)

35 Supported Social Outreach program ofM/SPathfindersinTransHimalayanRegion,


Sustainability

Leh Ladakh Jammu&Kashmir

9 7.2 - 7.2 Pathfinders

36 Supported the Skill training and placement to 100PersonswithDisabilitiesinIT/ITES/BPO,etc.underthe Livelihood ResourceCentre(LRC)Programme


Bengaluru Karnataka 9.85 1.97 - 1.97 Samarthanam Trust for the

Disabled

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




62

37 Organizing4Megahealth camps for poor and needy community living in and around EIL'sareaofoperationin various states

Healthcare (i)Mangalore (ii)Varodara (Campsinremaining2locationsarescheduled take place in due course)

(i)Karnataka (ii)Gujarat

9 3.6 - 3.6 Anugraha Drishtidaan

38 Organizing20HealthCheckupCamps(10campsinDelhi/NCRand10CampsaroundEIL'sareaofoperationinotherlocations)

Healthcare (i)VariouslocationsofDelhi/NCR (ii)PanIndia-In and around EIL'sareaofoperation

(i)Delhi/NCR

(ii)PanIndia

8.5 3.4 - 3.4 Mahavir International

39 Supported the adoptionof100Ekalvidyalayasinrural/tribalareasofDibrugarh,Assam for providing basiceducationtochildren and create awarenessforhealth,development&empowermentforoverall development of the community

Education Rural/tribalareas of Dibrugarh District in Assam


20 8 - 8 Bharat Lok Shiksha Parishad

(BLSP)

40 Supported the adoptionof25Ekalvidyalayasinrural/tribalareasofOdisha for providing basiceducationtochildren and create awarenessforhealth,development&empowermentforoverall development of the community

Education Rural areas of Odisha

Odisha 5 2 - 2 Bharat Lok Shiksha Parishad

(BLSP)

41 Support for project ‘School Aapke Dwar’forprovidingeducationtounderprivileged children in the age groupof6to18years.

Education Gurgaon Haryana 22.75 6.82 - 6.82 AllIndiaCitizensAlliance for Progress&

Development (AICAPD)

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




63

42 Support for conductingspecialplacement linked skill development training in various trades like IT/ITES,Hospitality&RetailSupervisory,Garmentssector,etcfor350youth


Training

Manali and Siruseri

Chennai,Tamil Nadu

80.62 56.43 - 56.43 ITCOT Consultancy and

Services Ltd. (ITCOT)

43 Support to conduct EmploymentOrientedTraining and Skill Development Programmefor1000candidates belonging toSC/ST/OBCWomenandEWSofsocietyinvarious trades


Training

Across India nearEIL’sareaofoperation

Across India nearEIL’sarea of

operation

394.6 11.08 - 11.08 ConstructionIndustry and Development Council(CIDC)

44 Support for Skill Development Training for1500PersonswithDisabilities(PwDs)invarious trades


Training

Across India nearEIL’sareaofoperation

Across India nearEIL’sarea of

operation

180 3.6 - 3.6 NationalHandicappedFinance and

Development Corporation(NHFDC)

45 Distributionof3440number of Adult Diapers for old disabled persons in Vridh Ashram


Badarpur Delhi 1 1 - 1 SaintHardayalEducationaland Orphan


46 InstallationofBloodBank Refrigerated Centrifuge for medical care of blood cancer patientsthroughblood banking programmes in Kolkata

Healthcare Kolkata Kolkata 9.9 9.9 - 9.9 Indian AssociationofBloodCancer&Allied Diseases

(IABCD)

47 Support for installationofmedicalequipment for street picked mentally and physically challenged destituteseniorcitizensinDelhi


Delhi Delhi 18.95 11.37 - 11.37 SaintHardyalEducationaland Orphan


(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State




64

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State



48 Constructionofclassroom and toilets (forgirls)ofIshaVidhyaMatriculationschool

Education Cuddalore Cuddalore District,

Tamil Nadu

20.93 6.28* - 6.28* IshaEducation(IshaVidya)

49 Support for installationofsolarpanelsandwaterheater systems for Old &Infirm


Najafgarh Delhi 21.39 21.39 - 21.39 Ayudham Society

50 Support for organizing 20HealthCheckupcampsinDelhi/NCR

Healthcare Various locationsofDelhi/NCR

Delhi 7 2.8 - 2.8 Mahavir International

51 Support for conductingemployment oriented andskillupgradationtrainingof40candidates belonging toSC,ST,OBCandBPLcategory


Training

Bharuch Gujarat 16.99 3.4 - 3.4 MCM Worldwide

Private Limited (MCMW)

52 Supportforsettingupof the Digital Library in Agastya Campus

Education Kuppam ChittoorDistrict,Andhra Pradesh

24.65 4.93 - 4.93 Agasthya InternationalFoundation

53 Organizing four campsfordistributionofassistiveaids&appliances to poor &needyPersonswithDisabilities(PwDs),oneeachatBhubaneswar,Bolangir&ParadeepDistrictsofOdisha,Dibrugarh District of Assam or any other mutually agreed location

Healthcare (i)Bhubaneswar,Bolangir&Paradeep Districts of Odisha (ii)DibrugarhDistrict of Assam

(i)Odisha (ii)Assam

98 39.2* - 39.2* ArtificialLimbsManufacturing Corporation(ALIMCO)


65

(1) (2) (3) (4) (5) (6) (7) (8)




(budget) project or




upto the reporting

period (` in Lakh)


Implementing Agency

Local Area or other

District/State



54 ConstructionoftoiletsinschoolsofBihar,Odisha and Tamil NaduunderSwachhVidyalaya Abhiyan

Drinking Water/

Sanitation

(i)Sitamarhi&BegusaraiDistricts (ii)BolangirDistrict (iii)Kancheepuram &ThiruvallurDistricts

(i)Bihar, (ii)Odisha (iii)Tamil

Nadu

535 448.97* - 448.97* EIL(in-house)

55 Proposal to support constructionofadditional350ToiletfacilitiesinschoolsofBihar(200toilets)andAssam(150toilets)underSwachhVidyalayaProgramme

Drinking Water/

Sanitation

(i)Barpeta,Baksa,Bongaigaon,Cachar,Darrang,Dhemaji,Dhubri,Golaghat,Hailakandi,Jorhat,Kamrup-Rural,KarbiAnglong,Karimganj,Kokrajhar,Lakhimpur,Nagaon,Nalbari,Sonitpur,Udalguri Districts of Assam (ii)Patna&Sitamarhi Districts of Bihar

(i)Assam (ii)Bihar

1215 - EIL(throughRashtriya

Madhyamik Shiksha Abhiyan-RMSA)in

Assam and (in-house)for

Bihar

56 Miscellaneous(StampPapersetc.)

_ _ _ _ _ 0.17 0.17

TOTAL 4793.9 1707.99* 0.17 1708.16*

*Reconciliationunderprocess.


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1. Company’s Philosophy on Corporate Governance

TheCompanyfirmlybelievesinandhasconsistentlypracticedgoodCorporateGovernance.TheCompany’sessentialcharacterisshapedbythevaluesoftransparency,professionalismandaccountability.TheCompanyiscommittedtoattainthehigheststandardofCorporateGovernance. Thephilosophyof theCompany in relation toCorporateGovernance is toensure transparency in all its operations,makedisclosuresandenhanceallstakeholders’valuewithintheframeworkoflawsandregulations.

2. Board of Directors

a) Composition of the Board of Directors

EngineersIndiaLimitedisapublicsectorundertakingandallthedirectorsareappointedbytheGovernmentofIndia.TheBoardhasamixofexecutiveandNon-ExecutiveDirectors.TheArticlesofAssociationoftheCompanystipulatesthatthenumberofDirectorsshallnotbelessthanfiveandnotmorethantwentyfive.Presently,EILishaving10DirectorsonitsBoardviz.C&MD,5ExecutiveDirectors(Functional)and4Non-ExecutiveDirectors.TheExecutiveDirectors(Functional)arereportingtotheChairmanandManagingDirector.Clause49oftheListingAgreementandDPEGuidelinesonCorporateGovernanceforCPSEsstipulatethatatleast50%ofthedirectorsshouldbeNon-ExecutiveIndependentdirectors,whereChairmanisExecutive.FurtheraspertheseDPEGuidelines,atleastonethirdofthedirectorsontheBoardofaCPSEshouldbeNon-officialDirectors.SincetheGovernmentofIndiaappointstheDirectorsoftheCompany, theCompany is constantlypursuing for appointmentof requisitenumberofNon-ExecutiveandNon-official IndependentDirectors on the Board of the Company.

b) Number of Board Meetings

TheBoardofDirectorsmet7timesduringthefinancialyear2014-15.ThedetailsoftheBoardMeetingsareasunder:

S. No. Date of Meeting Place Board Strength No. of Directors present

1. April5,2014 HimachalPradesh 13 12

2. May23,2014 NewDelhi 13 13

3. August12,2014 NewDelhi 13 11

4. November7,2014 NewDelhi 10 10

5. December9,2014 NewDelhi 10 7

6. January30,2015 NewDelhi 10 10

7. March18,2015 NewDelhi 10 10

c) Attendance record of Directors at Board Meetings and Annual General Meeting and number of other Directorships/Committee Memberships/ Chairmanships.

AttendanceofeachDirectorattheBoardMeetingsandatthelastAnnualGeneralMeetingheldduringthefinancialyear2014-2015andnumberofotherDirectorships/CommitteeMemberships/Chairmanshipsofeachdirectorisgivenbelow:

Name of the Director Attendance Particulars Number of other Directorships / Committee Memberships / Chairmanships

Board Meetings

Last Annual General Meeting held on

28/08/2014

Other Directorships

Committee Memberships**

Committee Chairmanships**

A) Chairman and Managing Director (Executive)

ShriA.K.Purwaha 7 Yes 4 - -

B) Executive Directors (Functional)

I) Present Directors

Shri Ram Singh 7 Yes 2 - -

ShriSanjayGupta 7 Yes 5 1 -

Ms.VeenaSwarup 7 Yes - - -

Shri Ajay N. Deshpande 6 Yes 1 - -

ShriAshwaniSoni*-1 4 - - - -

Report on Corporate GovernanceAnnexure to the Directors’ Report


67

II) Directors Retired

ShriD.Moudgil*-2 3 Yes - - -

C) Non-Executive Directors


Dr. Archana S. Mathur 7 No - - -

ShriBijoyChatterjee 5 No - - -

Dr.J.P.Gupta 6 No 1 - 1

Dr. R.K. Shevgaonkar 5 No - - -

II) Directors Retired/Resigned

ShriAditJain*-3 3 - - - -

ShriD.R.Meena*-3 3 - - - -

Dr.V.ViziaSaradhi*-3 3 - - - -

Remarks:

*-1 ShriAshwaniSoniwasappointedasAdditionalDirectorinthecapacityofDirector(Projects)w.e.f.1.09.2014.

*-2 ShriD.Moudgil,Director(Projects)ceasedtobetheDirectoroftheCompanyw.e.f.1.09.2014duetohisretirementonattainingtheageofsuperannuationon31.08.2014.

*-3 ShriAdit Jain,Dr.V.ViziaSaradhiandShriD.R.Meena,Non-official (Part-time) IndependentDirectorsceased tobeDirectorsof theCompanyw.e.f.28.08.2014.

** NoneofDirectorsontheBoardisamemberofmorethan10committeesorchairmanofmorethan5committeesacrossallthecompaniesin which he is a Director. Membership/ Chairmanship in committee is reckoned pertaining to Audit Committee and StakeholdersRelationshipCommitteeandbasedondisclosuresreceivedfromDirectors.

Notes:(i)NoneoftheIndependentDirectorsareholdingdirectorshipsinmorethansevenlistedcompanies.

(ii)NoneoftheFunctionalDirectorsareactingasIndependentDirectorinanylistedcompany.

(iii)Thecompanyhasnotissuedanyconvertibleinstruments.

d) Board Procedure

ThemeetingsoftheBoardofDirectorsaregenerallyheldattheCompany’sRegisteredOfficeinNewDelhi.Themeetingsaregenerallyscheduledwellinadvance.Incaseofexigenciesorurgency,resolutionsarepassedbycirculation.TheBoardmeetsatleastonceaquartertoreviewthequarterlyperformanceandthefinancialresults.Thetimegapbetweentwomeetingswasnotmorethanthreemonths.Theagendaforthemeetingsispreparedbytheconcernedofficials,sponsoredbytheconcernedFunctionalDirectorsandapprovedbyC&MD.TheBoardpapersarecirculatedtotheDirectorsinadvance.ThemembersoftheBoardhaveaccesstoallinformationandarefreetorecommendinclusionofanymatterintheagendafordiscussion.SeniorexecutivesareinvitedtoattendtheBoardmeetingsandprovideclarificationasandwhenrequired.ActionTakenReportsareputuptotheBoardperiodically.ToenablebetterandmorefocusedattentionontheaffairsoftheCompany,theBoarddelegatescertainmatterstoCommitteesoftheBoardsetupforthepurpose.

e) Code of Business Conduct and Ethics for Board Members and Senior Management

TheBoardofDirectorshaslaiddowntheCodeofBusinessConductandEthicsforallBoardMembersandSeniorManagementoftheCompany.ThesamehasalsobeenpostedontheWebsiteoftheCompany.

Declaration as required under Clause 49 of the Listing Agreement, DPE Guidelines on Corporate Governance for CPSEs and Companies Act, 2013.

AlltheMembersoftheBoardandSeniorManagementPersonnelhaveaffirmedcomplianceoftheCodeofBusinessConductandEthicsfortheFinancialyearendedonMarch31,2015.

Place:NewDelhi(A.K.Purwaha)Date:May27,2015Chairman&ManagingDirector


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f) Performance Evaluation

EILisaPublicSectorUndertakingandtheappointmentofDirectorsbothExecutiveandNon-ExecutivearemadebytheGovernmentofIndia.Therefore,thecompanyhasnotlaiddownanycriteriaforperformanceevaluationoftheindependentdirectorsandtheBoard.

g) Separate Meetings of Independent Directors

AseparateMeetingoftheIndependentDirectorswasheldon18.03.2015aspertheGuidelinesissuedbyDPEonRole&ResponsibilitiesofNon-OfficialDirectors (IndependentDirectors)ofCPSEsand incompliancetotheotherstatutoryprovisions inthisregard.All theIndependentDirectorsattendedtheseparateMeeting.ThisMeetingassessedthequality,quantityandtimelinessofflowofinformationnecessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties.

h) Familiarisation programme for Independent Directors

TheCompanyhasawelldefinedTrainingPolicyfortrainingofIndependentDirectorswhichinter-aliaincludethevariousfamiliarisationprogrammesinrespectoftheirroles,rights,responsibilitiesintheCompany,natureoftheindustryintheCompanyoperates,businessmodeloftheCompanyetc.Further,thesameisalsotakencareduringthevariousStrategyMeetsoftheCompanyanddifferentpresentationsintheBoard/CommitteemeetingsonthestatutoryLaws.Thedetailsofsuchfamiliarisationprogrammes/TrainingPolicyhavealsobeenpostedonthewebsiteoftheCompanyathttp://engineersindia.com/corporate-governance/m-160.

i) Compliance Reports

Tothebestoftheknowledgeandbelief,theCompanyiscomplyingwithallapplicablelawsasondateexceptthecompositionofBoardofDirectorswithregardtoNon-ExecutiveandNon-officialIndependentDirectorsandthePerformanceEvalutionoftheDirectors.TheBoardhasreviewedComplianceReportofallLawsapplicabletotheCompanyandthestepstakenbytheCompanytorectifyinstancesofnon-compliances.

3. Audit Committee

TheexistingscopeoftheAuditCommitteewasrevisedandCharterofAuditCommitteewasapprovedin linewiththeprovisionsoftheCompaniesAct,2013andamendedprovisionsoftheListingAgreementduringtheyear.Presently,theAuditCommitteecomprisesoffourDirectors (outofwhich3 are independent) viz. Shri BijoyChatterjeeas theChairman,Dr. R.K. Shevgaonkar,Dr. J.P.Gupta andDirector(Projects)asthemembers.TheAuditCommitteewasreconstitutedduringtheyearduetothefollowing:-

-ShriAditJainceasedtobemember&chairmanw.e.f.28.08.2014 -ShriBijoyChatterjee,existingmemberwasappointedaschairmanw.e.f.28.08.2014. -Dr.J.P.Guptawasinductedasmemberw.e.f.28.08.2014 -ShriD.R.Meenaceasedtobememberw.e.f.28.08.2014 -Director(Projects)wasinductedasmemberw.e.f.7.11.2014

TheCompositionofAuditCommitteemeetsthestatutoryrequirementsincludingDPEGuidelinesonCorporateGovernanceforCPSEs.Thedetailsofmeetingsheldduringthefinancialyear2014-15andtheattendanceoftheMembersisgivenbelow:

S.No Date of the Meeting Name of the Members Category Attendance

1. 23.05.2014 ShriAditJainShriBijoyChatterjeeDr. R.K. ShevgaonkarShri D.R. Meena

Non-Executive(Independent)-ChairmanNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)

PresentPresentPresentPresent

2. 12.08.2014 ShriAditJainShriBijoyChatterjeeDr. R.K. ShevgaonkarShri D.R. Meena

Non-Executive(Independent)-ChairmanNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)

PresentNot PresentNot PresentPresent

3. 7.11.2014 ShriBijoyChatterjeeDr. R.K. ShevgaonkarDr.J.P.Gupta

Non-Executive(Independent)-ChairmanNon-Executive(Independent)Non-Executive(Independent)

PresentPresentPresent

4. 30.01.2015 ShriBijoyChatterjeeDr. R.K. ShevgaonkarDr.J.P.GuptaShriAshwaniSoni

Non-Executive(Independent)-ChairmanNon-Executive(Independent)Non-Executive(Independent)Director(Projects)


TheAuditCommitteeinvitesSeniorExecutives&ExternalAuditorswheneveritconsidersappropriatetobepresentinthemeetings.TheHeadofInternalAuditDepartmentandDirector-in-ChargeofFinanceoperationsattendthemeetingsoftheAuditCommitteeasinvitees.


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Role/Scope of Audit Committee includes:

1. Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financialstatementiscorrect,sufficientandcredible;

2. RecommendationtotheBoard,thefixationofAuditfeespayabletoStatutoryAuditorsappointedbyC&AG;

3. RecommendationtotheBoard,theappointmentofCostAuditorsoftheCompanyandfixationoftheircostAuditFees;

4. Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors;

5. Reviewing,with themanagement, theannualfinancial statementsandauditor’s report thereonbeforesubmission to theboard forapproval,withparticularreferenceto:

a. MattersrequiredtobeincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sreportintermsofclause(c)ofsub-section3ofsection134oftheCompaniesAct,2013

b. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame

c. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement

d. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings

e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements

f. Disclosureofanyrelatedpartytransactions

g. Qualificationsinthedraftauditreport

6. Reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheboardforapproval;

7. Reviewing, with themanagement, the statement of uses / application of funds raised through an issue (public issue, rights issue,preferential issue, etc.), the statementof fundsutilized for purposesother than those stated in theofferdocument / prospectus /noticeandthereportsubmittedbythemonitoringagencymonitoringtheutilisationofproceedsofapublicorrightsissue,andmakingappropriaterecommendationstotheBoardtotakeupstepsinthismatter;

8. Reviewandmonitortheauditor’sindependenceandperformance,andeffectivenessofauditprocess;

9. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;

10.Scrutinyofinter-corporateloansandinvestments;

11.Valuationofundertakingsorassetsofthecompany,whereveritisnecessary;

12.Evaluationofinternalfinancialcontrolsandriskmanagementsystems;

13.Reviewing,withthemanagement,performanceofstatutoryandinternalauditors,adequacyoftheinternalcontrolsystems;

14.Reviewingtheadequacyofinternalauditfunctionincludingthestructureoftheinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit;

15.Discussionwithinternalauditorsand/orauditorsofanysignificantfindingsandfollowupthereon;

16.Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditors/auditors/agenciesintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;

17.Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;

18.To look intothereasons forsubstantialdefaults in thepaymenttothedepositors,debentureholders,shareholders (incaseofnon-paymentofdeclareddividends)andcreditors;

19.ToreviewthefunctioningoftheWhistleBlowermechanism;

20.Toreviewthefollow-upactionontheauditobservationsofC&AGAudit;

21.Toreviewthefollow-upactiontakenontherecommendationofCommitteeonPublicUndertakings(COPU)oftheParliament;

22.ProvideanopenavenueofcommunicationbetweentheIndependentauditor,internalauditorandtheBoardofDirectors;

23.Reviewwiththe independentauditortheco-ordinationofauditeffortstoassurecompletenessofcoverage,reductionofredundantefforts,andtheeffectiveuseofallauditresources.

24.Considerandreviewthefollowingwiththeindependentauditorandthemanagement:

- Theadequacyofinternalcontrolsincludingcomputerizedinformationsystemcontrolsandsecurity,and

- RelatedfindingsandrecommendationsoftheIndependentauditorandinternalauditor,togetherwiththemanagementresponses.


70

25.TheAuditCommitteeshallmandatorilyreviewthefollowinginformation:

a) Managementdiscussionandanalysisoffinancialconditionandresultsofoperations;

b) Statementofsignificantrelatedpartytransactions(asdefinedbytheAuditCommittee),submittedbyManagement;

c) Managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;

d) Internalauditreportsrelatingtointernalcontrolweaknesses;and

e) Theappointment,removalandtermsofremunerationoftheChiefinternalauditor.

f) Certification/DeclarationofFinancialStatementsbytheChiefExecutive/ChiefFinancialOfficer.

26.ReviewallRelatedPartyTransactionsintheCompany.Forthispurpose,theAuditCommitteemaydesignateamemberwhoshallberesponsibleforreviewingrelatedpartytransactions.

27.CarryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheAuditCommittee.

28.The Audit Committee shall have additional functions/features as prescribed under Companies Act 2013, Listing Agreement, DPEGuidelinesasamendedfromtimetotime.

Explanation(i):Theterm“relatedpartytransactions”shallhavethesamemeaningasprovidedintheListingAgreement,DPEGuidelinesandCompaniesAct2013readwithrelatedrulesissuedthereonincludinganystatutorymodificationsandamendmentsasmaybeissuedfromtimetotime.

4. Subsidiary Companies

TheCompanyishavingtwowhollyownedsubsidiariesviz.CertificationEngineersInternationalLimited(CEIL)andEILAsiaPacificSdn.Bhd.Malaysia(EILAP).However,EILAsiaPacificSdn.Bhd.Malaysia(EILAP)isunderwinding-upprocess.Boththesubsidiarycompaniesdonotfallunder thecategoryof“materialnon-listedsubsidiarycompany”within themeaningofClause49of theListingAgreementandDPEGuidelinesonCorporateGovernance.TheAuditCommitteeofEILhasreviewedthefinancialstatementsandperformance, inparticular,theinvestmentsmadebyCEILandEILAP.TheMinutesoftheBoardMeetingsofCEILhavealsobeenplacedbeforetheBoardMeetingsofEIL.TheBoardofDirectorsofthecompanyperiodicallyreviewthedetailsofallsignificanttransactionsandarrangementsenteredintobyCEIL,beingun-listedsubsidiarycompany.InaccordancewiththeprovisionsoftheListingAgreement,thecompanyhasformulatedapolicyfordeterminingMaterialSubsidiariesandthesamehasalsobeenpostedonthewebsiteof thecompanyathttp://engineersindia.com/corporate-governance/m-160.

5. Related Party Transactions

TheCompanyhasformulatedapolicyonmaterialityofRelatedPartyTransactionsandalsoondealingwithRelatedPartyTransactions.ThesamehasbeenpostedonthewebsiteoftheCompanyathttp://engineersindia.com/corporate-governance/m-160.TheCompanygivesthedisclosureregardingthedetailsofall thematerial transactionswithrelatedpartiesonquarterlybasisalongwiththecompliancereportonCorporateGovernance.Further,suitabledisclosureasrequiredbytheAccountingStandards(AS18)hasbeenmadeinthenotestotheFinancial Statements.

6. Nomination and Remuneration Committee/Remuneration of Directors

There is nopecuniary relationship or transactions of theNon-Executivedirectors vis-à-vis the company. Thepart-timeofficial directorsnominatedontheBoarddonotdrawanyremunerationfromtheCompanyfortheirroleasdirector.Thesittingfeesfixedforpart-time(non-official)independentdirectorsoftheCompanyis`15,000/-permeetingoftheBoardandCommitteesthereofattendedbythemasfixedbytheBoardofDirectors intheir301stmeetingheldon25.10.2013.TheNon-ExecutivedirectorsarenotholdinganysharesintheCompany.TheFunctionalDirectorsincludingtheChairmanandManagingDirectorareappointedbytheGovernmentofIndiaandarebeingpaidremunerationasperthetermsoftheirappointment.TheCompanyhasaRemunerationCommitteewhichhasbeenformedbytheBoardofDirectorsinitsmeetingheldon19.12.2008asperDPEOMdated26thNovember,2008regardingpayrevisionofCPSEexecutives.ThenomenclatureofthiscommitteewaschangedtoNominationandRemunerationCommitteeinordertocomplywiththeprovisionsofCompaniesAct,2013andListingAgreementwithStockExchanges.

ThescopeoftheRemunerationCommitteeisasunder:-

“Finalizingthesalary,structure,applicableperks&allowancesanddecidingtheannualbonuspool/variablepay&policyforitsdistributionacross the executives and non-unionised supervisorswithin prescribed limits.May also decide issues like ESOP schemes, performanceincentiveschemes,superannuationbenefitsandanyotherfringebenefits.AlsoextendstothereviewofNon-Executivedirectors’fees.”

Presently,theRemunerationCommitteecomprisesoffourDirectors(outofwhich3areindependent)viz.Dr.J.P.GuptaasChairman,ShriBijoyChatterjee,Dr.R.K.ShevgaonkarandMs.VeenaSwarup,Director(HR)asthemembersofthecommittee.TheRemunerationCommitteewasreconstitutedduringtheyearduetothefollowing:-


71

- ShriBijoyChatterjeeceasedtobeChairmanw.e.f.28.08.2014andDr. J.P.Gupta,existingmemberwasappointedasChairmanw.e.f.28.08.2014.

- ShriAditJain,Dr.V.ViziaSaradhiandShriD.R.Meenaceasedtobemembersw.e.f.28.08.2014.- Dr.R.K.Shevgaonkarwasinductedasmemberw.e.f.28.08.2014.

Thedetailsofmeetingsheldduringthefinancialyear2014-15andtheattendanceoftheMembersisgivenbelow:

S.No Date of the Meeting Name of the Members Category Attendance

1. 23.05.2014 ShriBijoyChatterjeeShriAditJainDr.J.P.GuptaShri D.R. MeenaDr. V. Vizia Saradhi Ms.VeenaSwarup

Non-Executive(Independent)-ChairmanNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

PresentPresentPresentPresentPresentPresent

2. 12.08.2014 ShriBijoyChatterjeeShriAditJain

Dr.J.P.GuptaShri D.R. MeenaDr. V. Vizia Saradhi Ms.VeenaSwarup

Non-Executive(Independent)Non-Executive (Independent)-Chairman oftheMeetingNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

Not PresentPresent


ThedetailsofremunerationpaidtotheFunctionalDirectorsduringthefinancialyearendedMarch31,2015areasunder:

(Amountin`)

S.No Name of Director Gross Salary Other Benefits Performance Related Pay/ Productivity

Linked Reward

Stock Options during the year

2014-15

Total

1 ShriA.K.Purwaha 4951577 597952 99547 Nil 5649076

2 Shri Ram Singh 3355564 737863 69377 Nil 4162804

3 ShriSanjayGupta 4575481 1219247 64666 Nil 5859394

4 Ms.VeenaSwarup 3053523 515754 109410 Nil 3678687

5 Shri Ajay N. Deshpande 4272029 494822 95984 Nil 4862835

6 ShriAshwaniSoni 2548573 319587 Nil Nil 2868160

7 Shri D. Moudgil 3973932 553458 23902 Nil 4551292

Total 26730679 4438683 462886 Nil 31632248

DetailsofpaymentstowardssittingfeestoIndependentDirectorsduringthefinancialyear2014-15aregivenbelow:-

(Amountin`)

Name of Part-time(non-official) Independent Director

Sitting Fees* Total

Board Meeting Committee Meeting

ShriAditJain 45000 120000 165000

ShriBijoyChatterjee 75000 120000 195000

Dr.J.P.Gupta 90000 180000 270000

Dr. V. Vizia Saradhi 45000 135000 180000

Dr. R. K. Shevgaonkar 75000 120000 195000

Shri D. R. Meena 45000 90000 135000

Total 375000 765000 1140000

*GrossFeesexcludingtaxesasperapplicableTaxLawsandRules.


72

7. Accounting Treatment

The Financial statements have been prepared as per generally accepted accounting principles and in accordance with the prescribedAccountingStandards.

8. Risk Management

EIL’s RiskManagement policy with a robust supporting risk management frame work facilitates identification and assessment of newrisksandreviewofpresentlyidentifiedrisks.Theprocessisbasedonidentifiedrisksandtheriskeventsorfactorswhichrequireregularassessmentandquickresponse.Basedontheprobability&impactoftherisk,therequisitecontrolsandactionplanshavebeendesignedand implemented.

KeyRiskIndicators(KRI’s)haveidentifiedtomeasuretheadequacy,effectivenessandefficiencyofthese,controlsandactionplans.KRI’shavebeendesignedandarebeingimplementedtomeasurepresence,level,ortrendoftherisk.Theeffectivenessofcontrolsandactionplansisalsomonitoredbykeyriskindicator(KRI).

Theobjectiveof riskmanagement in theCompany is toactasanenabler inmaintaining itsknowledgeedge, sustainingandexpandingthebusiness,being competitiveandensuringexecutionofprojectswithinbudgeted cost andtime, resulting in improved turnoverandprofitability.

Somenewinitiativeshavebeentakenupinthefieldofriskmanagement.Thefirstoneis,RiskwiseAudit.RiskWiseAuditisaconcepttoassessthestatusofriskataparticularpoint(duration)oftime. Itcanhelp inquickre-assessmentofexistingcontrols/actionplans.ThisactivityhasbeendonefortwooftheidentifiedrisksandtheresultswerepresentedtoRiskManagementCommittee.

Theelementsofriskshavebeenidentifiedbyyourorganizationanddisclosedforthebenefitofallstakeholders.Tocoveralltheelementsofrisksatenterpriselevel,ninecategorieshavebeendefinedbythemanagement(fig.givenbelow)&riskswereidentifiedandcategorizedinthem.

Risk Categorization

Risks,theirrootcauses,controlsandactionplansarepreparedbyprocessownersandupdatedregularly.TheseareapprovedbytheRisk

ManagementCommittee (RMC).Risk complianceverificationsareconducted regularly to test thecomplianceof controlsand the sameisreportedtotheRMC.Theriskidentification&assessmentprocessesandriskauditprocessarebeinghandledthrough“EnterpriseRiskManagementSystem(ERMS)”softwareandimprovementisdoneregularly.

ThestatusofEnterpriseRiskManagement(ERM)processispresentedtotheRiskManagementCommitteeonquarterlybasisandtotheAuditCommitteeonbi-annualbasiswhichisreviewedbytheBoardofDirectorsalso.Thereportingstructuremeetstheregulatoryrequirements.

Basedonperiodicreviewsandimplementationofrecommendationsresultingfromreviewprocess,theERMprocessiscontinuouslyimprovedand strengthened. Project Risk Management has been implemented for high value and important projects as per the criteria approved by theRMC.Ariskregisterispreparedbylistingallpossibleriskeventsofeverydisciplineassociatedwiththeproject.RiskManagementTeamconstitutedfortheprojectapprovesthefirstriskregister&meetseverymonthtoupdateitandcontinuouslyfocusesonmitigationoftheidentifiedrisks.Therisksseveritiesarecategorized incritical,major,cautionaryandminor,basedontheprobabilityandoverall impact.ProjectRiskManagementhelpsinfacilitatingmanagementtowardsriskmitigationforeffectiveprojectimplementation.Duringtheyear,ReviewofProjectRiskManagementPlanwasdonebytheRMCaswell.


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Thecommunication isbeingmaintainedacrosstheorganizationtospreadawarenessonrisks,rootcausesandactionplans, through in-houseriskmanagementawarenessprograms,externaltrainings&seminars,certificationprogramonProjectRiskManagement.Inaddition,abi-monthlyrisknewsletter‘RiskScreen’ isbeingemailedtoallemployeesofyourcompany.Thisspreadsawarenessaboutvariousriskmanagement activities/achievement, new topics/practices/ updates on ERM or PRM and to create enthusiasm in them to proactivelycontrolrisksintheirworkprocesses&areas.EveryissueoftheRiskScreencontainsaRiskQuizwhichteststheawareness&assimilationofknowledgegainedbythereader.AllwinnersoftheRiskQuizarepresentedwithaletterofappreciation.

Your company is committed to further strengthen its riskmanagement capabilities inorder toprotect andenhance shareholder value.Continuouseffortsincreatingnewopportunities,improvingcompetencies/knowledgeinvariousareasleadingtoimprovedperformanceandleveragingexistingknowledgeresources,inlinewiththeriskappetiteofthecompany,helpstoprotecttheshareholders’interests.

9. Proceeds from Public Issues, Rights Issues and Preferential Issues

ThecompanyhasnotraisedanymoneythroughPublicIssue,RightIssuesoranyPreferentialIssuesduringthefinancialyear2014-15.

10. Shareholders

A) ThebriefresumeoftheDirectorsseekingappointment/reappointmenttogetherwiththenatureoftheirexpertiseinspecificfunctionalareas,namesofcompaniesinwhichtheyholddirectorshipsandthemembership/chairmanshipofCommitteesoftheBoardalongwiththeirshareholdingintheCompanyetc.asstipulatedunderClause49oftheListingAgreement,DPEGuidelinesonCorporateGovernanceandotherstatutoryprovisionsisannexedtotheNoticecallingtheAnnualGeneralMeeting.

B) NoneoftheDirectors/KMPsoftheCompanyareinter-serelatedason31stMarch,2015.

C) NoneoftheNon-ExecutiveDirectorsholdanyequitysharesintheCompanyason31stMarch,2015.

D) Means of Communication

Quarterly,HalfYearlyResultsandYearlyResults Published in Economic Times (all editions), Mint (all editions),FinancialExpress (alleditions)&HinduBusinessLine (alleditions)inEnglish,EconomicTimes(Delhi),NavbharatTimes(Delhi)inHindiandEconomicTimes(Ahmedabad&Mumbai)inGujarati.

DisplayedonWebsite www.engineersindia.com and simultaneously posted on theCorporate Filing andDissemination Systemwebsite namelywww.corpfiling.co.in, NSE Electronic Application Processing Systemnamelywww.connect2nse.com/LISTING/andBSEListingCentre.

Whether it displays official news, releases and presentationsmadetomedia,analyst,institutionalinvestors,etc.

Yes

Exclusiveemailidforredressalofinvestors’complaints [email protected]

Exclusiveemail id for registering/updatinge-mail ids in termsofMCAcircular issuedregardingGreenInitiativeinCorporateGovernanceandprovisionsofCompaniesAct,2013readwithRules.

[email protected]

E) Stakeholders Relationship Committee of the Board

TheCompanyishavingaStakeholdersRelationshipCommittee.ThenomenclatureofthecommitteewaschangedduringtheyearfromShareholders’/Investors’GrievanceCommitteetoStakeholdersRelationshipCommitteeandcharterofthecommitteewasapprovedinlinewiththeprovisionsofCompaniesAct,2013andamendedListingAgreement.Presently,theStakeholdersRelationshipCommitteecomprisesofthreeDirectorsviz.ShriBijoyChatterjeeasChairman,ShriRamSingh,Director(Finance)andMs.VeenaSwarup,Director(HR)asthemembersoftheCommittee.ThecommitteewasreconstitutedduringtheyearduetocessationofShriD.R.MeenaasDirectorofthecompanyandmemberofthecommitteew.e.f.28.08.2014.TheCommitteemet4timesduringtheyearon23.05.2014,12.08.2014,7.11.2014and30.01.2015andallthememberswerepresentineachmeeting.

F) Share Transfer Committee of the Board

TheCompanyhasaShareTransferCommitteeinplace.Presently,theShareTransferCommitteecomprisesofthreeDirectorsviz.ShriRamSingh,Director(Finance)asChairman,ShriAjayN.Deshpande,Director(Technical)andShriAshwaniSoni,Director(Projects)asthemembersoftheCommittee.ShriD.Moudgil,Director(Projects)ceasedtobetheDirectoroftheCompanyw.e.f.1.09.2014duetohisretirementonattainingtheageofsuperannuationon31.08.2014andasmemberoftheCommitteewitheffectfromthesamedateandShriAshwaniSoni,Director(Projects)wasinductedasmemberofthecommitteew.e.f.1.09.2014.M/sKarvyComputersharePvt.LimitedhasbeenappointedasRegistrarandShareTransferAgenttoregistersharetransfers,coordinatewiththeDepositoriesandtolookaftertheredressalofshareholders’andinvestors’complaints.Thecomplaintsreceivedfrominvestorsrelatingtotransferofshares,non-receiptofbalance-sheets,dividendsetc.andalsothecomplaintsreceivedthroughSEBI,MinistryofCorporateAffairsandtheStock


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ExchangesarebeingattendedbytheTransferAgentonprioritybasis.TheCompanySecretaryisnominatedastheComplianceOfficer.TheactivitiesoftheRegistrar&ShareTransferAgentarebeingauditedindependentlybyapracticingCompanySecretary.

The ShareTransferCommitteemet52timesduring thefinancial year2014-15on07.04.2014, 15.04.2014, 21.04.2014, 28.04.2014,05.05.2014,12.05.2014,19.05.2014,26.05.2014,02.06.2014,09.06.2014,16.06.2014,23.06.2014,30.06.2014,07.07.2014,14.07.2014,21.07.2014,28.07.2014,04.08.2014,11.08.2014,18.08.2014,25.08.2014,01.09.2014,08.09.2014,15.09.2014,22.09.2014,29.09.2014,06.10.2014,13.10.2014,20.10.2014,27.10.2014,03.11.2014,10.11.2014,17.11.2014,24.11.2014,01.12.2014,08.12.2014,15.12.2014,22.12.2014,29.12.2014,05.01.2015,12.01.2015,19.01.2015,27.01.2015,02.02.2015,09.02.2015,16.02.2015,23.02.2015,02.03.2015,09.03.2015,16.03.2015,23.03.2015,30.03.2015andallthememberswerepresentineachmeeting.

G) HR Committee of the Board

TheHRCommitteehasbeenconstitutedtodealwithsomespecificHRissuesincludingrevisioninHRPoliciesandRules.Presently,theHRCommitteecomprisesofeightDirectorsviz.allFunctionalDirectorsincludingC&MDofEIL,Dr.J.P.GuptaandDr.R.K.ShevgaonkarasthemembersoftheCommittee.ShriA.K.Purwaha,C&MDisactingasChairmanofthecommittee.Thecommitteewasreconstitutedduringtheyearduetothefollowing:-

-ShriAditJain,ShriBijoyChatterjeeandDr.V.ViziaSaradhiceasedtobethemembersw.e.f.28.08.2014.

-Dr.J.P.GuptaandDr.R.K.Shevgaonkarwereinductedasmembersw.e.f.28.08.2014.

Thedetailsofmeetingsheldduringthefinancialyear2014-15andtheattendanceoftheMembersisgivenbelow:

S. No.

Date of the Meeting Name of the Members Category Attendance

1 23.05.2014 ShriA.K.PurwahaShriAditJainShriBijoyChatterjeeDr. V. Vizia SaradhiShri Ram SinghShri D. MoudgilShriSanjayGuptaMs.VeenaSwarupShri Ajay N. Deshpande

Chairman&ManagingDirector-ChairmanNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(Finance)Director(Projects)Director(Commercial)Director(HR)Director(Technical)

PresentPresentPresentPresentPresentPresentPresentPresentPresent

2 12.08.2014 ShriA.K.PurwahaShriAditJainShriBijoyChatterjeeDr. V. Vizia SaradhiShri Ram SinghShri D. MoudgilShriSanjayGuptaMs.VeenaSwarupShri Ajay N. Deshpande

Chairman&ManagingDirector-ChairmanNon-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(Finance)Director(Projects)Director(Commercial)Director(HR)Director(Technical)

PresentPresentNot PresentPresentPresentPresentPresentPresentPresent

3 7.11.2014 ShriA.K.PurwahaDr.J.P.GuptaDr. R. K. ShevgaonkarShri Ram SinghShriSanjayGuptaMs.VeenaSwarupShri Ajay N. DeshpandeShriAshwaniSoni

Chairman&ManagingDirector-ChairmanNon-Executive(Independent)Non-Executive(Independent)Director(Finance)Director(Commercial)Director(HR)Director(Technical)Director(Projects)

PresentPresentPresentPresentPresentPresentPresentPresent

4 18.03.2015 ShriA.K.PurwahaDr.J.P.GuptaDr. R. K. ShevgaonkarShri Ram SinghShriSanjayGuptaMs.VeenaSwarupShri Ajay N. DeshpandeShriAshwaniSoni

Chairman&ManagingDirector-ChairmanNon-Executive(Independent)Non-Executive(Independent)Director(Finance)Director(Commercial)Director(HR)Director(Technical)Director(Projects)

PresentPresentPresentPresentPresentPresentPresentPresent


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H) CSR Committee of the Board TheCSRCommitteehasbeen constituted to approveall CSRProjects, to allocate funds for suchprojects, to review&monitor the

progressofexecutionoftheprojectsandtocarryoutanyotherassociatedactivitywhichthecommitteemayconsiderappropriate.Presently, theCSRCommitteecomprisesoffiveDirectorsviz.ShriA.K.Purwaha,C&MDasChairman,Dr.ArchanaS.Mathur,Dr. J.P.Gupta,Dr.R.K.ShevgaonkarandMs.VeenaSwarup,Director(HR)asmembersofthecommittee.Director(HR)isalsotheconvenerofthiscommittee.TheCommitteewasreconstitutedduringtheyearduetocessationofDr.V.ViziaSaradhiasmemberw.e.f.28.08.2014.Thedetailsofmeetingsheldduringthefinancialyear2014-15andtheattendanceoftheMembersisgivenbelow:

S. No. Date of the Meeting Name of the Members Category Attendance

1 29.04.2014 ShriA.K.PurwahaDr. Archana S. MathurDr.J.P.GuptaDr. R. K. ShevgaonkarDr. V. Vizia SaradhiMs.VeenaSwarup

Chairman&ManagingDirector-ChairmanDirector(GovernmentNominee)Non-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

PresentPresentPresentPresentPresentPresent

2 12.08.2014 ShriA.K.PurwahaDr. Archana S. MathurDr.J.P.GuptaDr. R. K. ShevgaonkarDr. V. Vizia SaradhiMs.VeenaSwarup

Chairman&ManagingDirector-ChairmanDirector(GovernmentNominee)Non-Executive(Independent)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

PresentPresent Present Not Present Present Present

3 7.11.2014 ShriA.K.PurwahaDr. Archana S. MathurDr.J.P.GuptaDr. R. K. ShevgaonkarMs.VeenaSwarup

Chairman&ManagingDirector-ChairmanDirector(GovernmentNominee)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

PresentPresentPresentPresentPresent

4 5.03.2015 ShriA.K.PurwahaDr. Archana S. MathurDr.J.P.GuptaDr. R. K. ShevgaonkarMs.VeenaSwarup

Chairman&ManagingDirector-ChairmanDirector(GovernmentNominee)Non-Executive(Independent)Non-Executive(Independent)Director(HR)

PresentPresentNot PresentNot PresentPresent

I) SD Committee of the Board TheSustainableDevelopmentCommitteehasbeenconstitutedtoapprovetheSustainableDevelopmentPlan,tooverseetheSustainable

Development Performance and to develop, review and implement monitoring mechanism for meeting Sustainable DevelopmentPerformance/Progress. Presently, the SustainableDevelopment Committee comprises of fiveDirectors viz. Dr. R. K. Shevgaonkar asChairman, Shri Bijoy Chatterjee, Shri Ram Singh, Director (Finance),Ms. Veena Swarup, Director (HR) and Shri AjayN. Deshpande,Director(Technical)asthemembersofthecommittee.Director(Technical)isalsotheconvenerofthiscommittee.Thecommitteemetonceduringtheyearon23.05.2014andallthememberswerepresentinthemeeting.TheCommitteewasreconstitutedduringtheyearduetothefollowing:

-Dr.J.P.Guptaceasedtobememberw.e.f.28.08.2014. -ShriBijoyChatterjeewasinductedasmemberw.e.f.28.08.2014.

J) Committee of Functional Directors

TheBoardofDirectorshasconstitutedtheCommitteeofFunctionalDirectorsoftheCompanytodeliberateanddecideonthemattersasperdefinedscopeofthecommittee.ThecommitteeconsistsofallFunctionalDirectorsandC&MDistheChairmanoftheCommittee.Thecommitteemet16timesduringthefinancialyear2014-15on1.04.2014,21.05.2014,3.06.2014,16.06.2014,31.07.2014(twice),5.09.2014,16.09.2014,30.09.2014,5.11.2014,11.11.2014,17.12.2014,1.01.2015,13.01.2015,3.02.2015and20.02.2015.ThedetailsregardingnumberofmeetingsattendedbyeachDirectoraregivenbelow:-

S. No. Name of the Members Category Number of Meetings attended

1.2.3.4.5.6.7.

ShriA.K.PurwahaShri Ram SinghShri D. MoudgilShriSanjayGuptaMs.VeenaSwarupShri Ajay N. DeshpandeShriAshwaniSoni

Chairman&ManagingDirectorDirector(Finance)Director(Projects)*Director(Commercial)Director(HR)Director(Technical)Director(Projects)*

16160614161210

*ShriAshwani Soniwas appointed asAdditionalDirector in the capacity ofDirector (Projects) in placeof ShriD.Moudgil,Director(Projects)w.e.f.1.09.2014.


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K) Compliance Officer

Shri Rajan Kapur, Company Secretary is the Compliance officer. The Company Secretary also acts as the Secretary to the variousempoweredcommitteesoftheBoard.

L) Status of Investor Complaints

Complaintspendingon01.04.2014 NIL

Complaintsreceivedduringthefinancialyear2014-15 332

Complaintsdisposedoffduringthefinancialyear2014-15 332

Complaintspendingason31.03.2015 NIL

Ason31stMarch,2015,notransferrequestwaspending.

11. General Body Meetingsi) Annual General Meeting (AGM) TheAnnualGeneralMeetingsoftheCompanyareheldatNewDelhiwheretheregisteredofficeoftheCompanyissituated.Thedetails

ofsuchmeetingsheldduringthelastthreeyearsareasunder:

AGM Year Venue Date Time

47th 2012-2013 ManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi–110010

30.08.2012 10.00AM


23.08.2013 10.30AM


28.08.2014 10.30AM

ii) Details of Special Resolutions passed at last three AGMs

AGM Details of Special Resolutions Passed

47th Nil

48th Nil

49th Nil

Nospecialresolutionswereputthroughpostalballotduringthelastyear.NospecialresolutionisproposedtobepassedthroughpostalballotattheensuingAnnualGeneralMeeting.

iii) NoExtra-ordinaryGeneralMeetingofthememberswasheldduringthefinancialyear2014-15.

12. CEO/CFO Certification

TheChairman&ManagingDirector(CEO)andDirector(Finance)(CFO)havegiventhecertificatetotheBoardaswellasdisclosedtherequiredinformationtotheStatutoryAuditorsandtheAuditCommitteeintermsofclause49(IX)oftheListingAgreementandDPEGuidelinesonCorporateGovernanceforCPSEs.ThesaidcertificateisannexedandformspartoftheAnnualReport.

13. Disclosures

i) DetailsoftransactionsbetweentheCompanyanditssubsidiaries,associates,keymanagerialpersonnelduringtheyear2014-2015aregiveninPointno.2.36oftheNotestotheAnnualAccountsfortheyearended31stMarch,2015.ThesetransactionsdonothaveanypotentialconflictwiththeinterestsoftheCompanyatlarge.

ii) TherewerenopenaltiesorstricturesimposedontheCompanybyanystatutoryauthoritiesfornoncomplianceonanymatterrelatedtocapitalmarkets,duringthelastthreeyears.

iii) The Company has established a Vigil Mechanism/Whistle Blower Policy and no personnel have been denied access to the AuditCommittee.Thedetailsofthesamehavealsobeenpostedonthewebsiteofthecompany.

iv) TheCompanyhascompliedwithallmandatoryrequirementsofClause49oftheListingAgreementandDPEGuidelinesonCorporateGovernanceforCPSEs,saveandexceptthecompositionofBoardofDirectorswithregardtoNon-ExecutiveandNon-officialIndependentDirectorsandthePerformanceEvalutionoftheDirectors.TheCompanyhasalreadytakenupthematterwiththeMOP&NG,GovernmentofIndiafortheappointmentofsufficientnumberofNon-ExecutiveandNon-officialIndependentDirectorsontheBoardoftheCompany.Further,theCompanyisaPublicSectorUndertakingandtheappointmentofDirectorsbothExecutiveandNon-ExecutivearemadebytheGovernmentofIndia.Therefore,thecompanyhasnotlaiddownanycriteriaforperformanceevaluationoftheindependentdirectorsand the Board.


77

v) Duringthelastthreeyears,onePresidentialDirectivewasreceivedbytheCompanyontheLokpalandLokayuktasAct,2013inrespectofsubmissionofdeclarationofAssetsandLiabilitiesbyPublicservantseachyearandthesamewascompliedwith.

vi) Director(s)arenominatedontrainingprogrammesandtheyhavealsoattendedvariousseminars/conferencesfromtimetotime.

vii) NoExpendituresweredebitedintheBooksofAccountsduringthefinancialyear2014-15whicharenotforthepurposesoftheBusiness.

viii)NoexpenseshadbeenincurredwhichwerepersonalinnatureandincurredfortheBoardofDirectorsandthetopManagement.

ix) Theadministrativeandofficeexpensesare5.35%ofthetotalexpensesintheFinancialyear2014-15asagainst5.55%duringtheFinancialyear2013-14.

x) ItisalwaysCompany’sendeavourtopresentunqualifiedfinancialstatements.

xi) Pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated a new Code of Practice andProcedureforFairDisclosureofUn-publishedPriceSensitiveInformationandCodeofConducttoRegulate,MonitorandReportTradingbyitsEmployeesandotherConnectedPersons.ThedetailsofthesamehavealsobeenpostedonthewebsiteoftheCompanyathttp://engineersindia.com/corporate-governance/m-160.

14. General Information

i) 50th Annual General Meeting

Day and DateTimeVenue

Tuesday,August25,201510.30a.m.ManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi-110010

ii) Financial Year

1stDayofAprilto31st Day of March every year.

iii) Dates of Book-closure

Wednesday,August19,2015toTuesday,August25,2015(bothdaysinclusive)

iv) Dividend

The Board of Directors of the Company have recommended payment of Final Dividend of `2/-pershare(onthefacevalueof`5/-each)fortheFinancialYearended31st March,2015subjecttoapprovaloftheshareholdersintheensuingAGM.ThiswasinadditiontotheInterim Dividend of `3/-pershare(onthefacevalueof`5/-each)paidinMarch,2015.

TheRecordDateandDividendPaymentDateforFinalDividendforthefinancialyearended31stMarch,2015areTuesday,August18,2015andMonday,August31,2015respectively.ThedividendwarrantswouldbepostedonorafterAugust31,2015andwithinthestipulatedperiodasperthestatutoryrequirements.

v) Listing on Stock Exchanges

a) BSELimited PhirozeJeejeebhoyTowers,DalalStreet,Mumbai-400001.

b) NationalStockExchangeofIndiaLtd. ExchangePlaza,5thfloor,PlotNo.C/1,GBlockBandra-KurlaComplex,Bandra(E),Mumbai-400051.

TheCompanyhaspaidListingfeesfortheFinancialYear2014-15totheaboveStockExchanges.TheCompanyhasalsomadethepaymentofAnnualCustodyfeestoNationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL)forthefinancialyear2014-15.

vi) Stock Code

ISIN INE510A01028

ScripCode 532178

ScripSymbol ENGINERSIN


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vii) Monthly Share Price Data (Amountin`)

Month & Year Bombay Stock Exchange National Stock Exchange

High Low High Low

April,2014 243.05 200.00 243.20 199.00

May,2014 313.00 228.00 313.00 228.05

June,2014 329.00 275.25 329.40 275.00

July,2014 331.00 276.90 331.70 276.00

August,2014 287.00 229.35 287.00 229.00

September,2014 263.75 227.20 263.80 228.25

October,2014 273.75 230.00 274.25 230.00

November,2014 282.95 219.70 283.20 220.00

December,2014 250.00 205.90 249.90 205.15

January,2015 238.30 215.10 238.20 215.00

February,2015 227.00 201.70 226.80 200.50

March,2015 224.95 187.20 224.70 187.00

viii) Performance of EIL’s Share price in comparison to NIFTY Index during the financial year 2014-15.

ix) Liquidity

EILsharesareactivelytradedonNationalStockExchangeofIndiaLimitedandBSELimited.

x) Dematerialization/Rematerialization of Shares

Shareholding in Demat Mode as on 31.03.2015

Depository No. of Shares Percentage

NSDL 94974638 28.19

CDSL 241570005 71.70

Total 336544643 99.89

Presidentof Indiahasheld69.37%ofthetotalshares,all indematerialisedform.Outofthebalance30.63%sharesheldbyothers,30.505%havebeenheldindematerialisedformasonMarch31,2015.ThetradingintheequitysharesoftheCompanyiscompulsoryindematerialisedsegmentasperNotificationissuedbytheSecuritiesandExchangeBoardofIndia.


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Dematerialised/Rematerialised for the period from 01.04.2014 to 31.03.2015.

NSDL CDSL

No. of Shares Percentage No. of Shares Percentage

Dematerialised 29560 0.008 Nil Nil

Rematerialised 1234 0.000 1943 0.000

xi) Distribution of Shareholding as on March 31, 2015.

TheshareholdinginEILbymajorcategoriesofShareholdersasattheendofMarch31,2015ispresentedhereunder:

a) Shareholding Pattern

Category of Shareholders No. of Shares held % of Total

President of India 233727299 69.37

Mutual Funds 6814001 2.02

Banks, Financial Institutions and InsuranceCompanies

30272345 8.98

Private Corporate Bodies 9835204 2.92

ForeignInstitutionalInvestors 28631417 8.50

NRIs/OCBs/Trust 1784124 0.53

Indian Public 25872210 7.68

Total 336936600 100.00

b) Distribution Schedule

S.No. Category No. of Shareholders % to Total Shareholders

Amount (`) % of Total Amount

1 Upto5000 140409 97.21 80297880.00 4.77

2 5001to10000 2131 1.48 15848465.00 0.94

3 10001to20000 1101 0.76 16386930.00 0.97

4 20001to30000 278 0.19 7033665.00 0.42

5 30001to40000 115 0.08 4044680.00 0.24

6 40001to50000 92 0.06 4265305.00 0.25

7 50001to100000 125 0.09 8923640.00 0.53

8 100001&above 187 0.13 1547882435.00 91.88

Total 144438 100.00 1684683000.00 100.00

xii) Unclaimed/Unpaid Dividend

Asperthestatutoryprovisions,theCompanyisrequiredtotransferUnpaidDividendremainingunclaimedandunpaidforaperiodof7yearsfromtheduedate(s)totheInvestorEducation&ProtectionFund(IEPF)setupbytheCentralGovernment.TheUnpaidDividendremainingunclaimedandunpaid for thefinancial years2006-07 (Final) and2007-08 (Interim)haveaccordinglybeen transferred toInvestorEducation&ProtectionFund(IEPF)on15.11.2014and9.02.2015respectively.

Unpaid/UnclaimedFinalDividendforthefinancialyear2007-2008 isduefortransferto InvestorEducation&ProtectionFund(IEPF)establishedbytheGovernmentofIndiaonorbefore18.10.2015(tentative).TheCompanysendsacommunicationtotheconcernedshareholderswellinadvance,advisingthemtolodgetheirclaimwithrespecttounclaimeddividendbeforeitisduefortransfertoIEPF.Allshareholders,whosefinaldividendisstillunpaid/unclaimedforthefinancialyear2007-2008arerequestedtolodgetheirclaimwithCompanySecretaryofEILbysubmittinganapplicationasperCompany’sprocedurebefore30thSeptember,2015.Thesubsequentduedatesoftransferofunpaid/unclaimeddividendtoIEPFfortherespectivefinancialyearshavebeenprovidedhere-inbelowandalsoatCompany’swebsite.Therefore,thememberswhohavenotencashedtheirdividendsofarfortheseyearsarealsorequestedtowritetotheCompanyoritsRegistrar&ShareTransferAgentforclaimingtheunpaiddividendbeforetheirduedatesoftransfertoIEPF.Givenbelowaretheproposeddatesfortransferoftheunpaid/unclaimeddividendtoIEPFbytheCompany:


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Financial Year Date of Declaration of Dividend Proposed date for transfer to IEPF (Tentative Date)

2007-08(Final) 19.09.2008 18.10.2015

2008-09(Interim) 19.12.2008 18.01.2016

2008-09(Final) 18.09.2009 17.10.2016

2009-10(Interim) 15.12.2009 14.01.2017

2009-10(SpecialInterim) 23.03.2010 22.04.2017

2010-11(Interim) 17.03.2011 16.04.2018

2010-11(Final) 7.09.2011 6.10.2018

2011-12(Interim) 13.02.2012 12.03.2019

2011-12(Final) 30.08.2012 29.09.2019

2012-13(Interim) 13.03.2013 12.04.2020

2012-13(Final) 23.08.2013 22.09.2020

2013-14(Interim) 15.03.2014 14.04.2021

2013-14(Final) 28.08.2014 27.09.2021

2014-15(Interim) 18.03.2015 17.04.2022

xiii) Share Transfer System

The Shares of the Company are being compulsorily traded in dematerialised form. Shares received in physical form are transferred withinaperiodof15days fromthedateof lodgementsubject todocumentsbeingvalidandcomplete inall respects. Inorder toexpeditetheprocessofsharetransferandinlinewithclause49oftheListingAgreement,theCompanyhasdelegatedthepowertoapproveSharetransfer/transmissionofsharestoRegistrarandShareTransferAgentoftheCompany.

xiv) Demat Suspense Account

DetailsofunclaimedsharesinrespectofEILFPO-2010arefurnishedbelow:-

Opening Balance as on 1.4.2014

Shareholders approached for Transfer of shares from Suspense

Account during 2014-15

Shareholders to whom shares were transferred from Suspense


Closing Balance as on 31.03.2015

Cases No. of Shares Cases No. of Shares Cases No. of Shares Cases No. of Shares

6 416 NIL NIL NIL NIL 6 416

DetailsofunclaimedsharesinrespectofEILFPO-2013arefurnishedbelow:-

Opening Balance as on 1.4.2014

Shareholders approached for Transfer of shares from Suspense


Shareholders to whom shares were transferred from

Suspense Account during 2014-15

Closing Balance as on 31.03.2015

Cases No. of Shares Cases No. of Shares Cases No. of Shares Cases No. of Shares

4 492 2 231 2 231 2 261

Thevotingrightsonthesharesmentionedintheclosingbalancesasstatedaboveshallremainfrozentilltherightfulownerofsuchshares claims the shares.

xv) Registrar & Share Transfer Agent (RTA)

TheCompanyhasappointedM/sKarvyComputersharePrivateLimitedasitsRegistrarandShareTransferAgent(RTA)forhandlingallmattersrelatingtothesharesofEIL(bothphysicalaswellasdematmode).

AllmattersrelatingtothesharesofEngineersIndiaLimitedsuchastransfer,transmission,dematerialization,rematerialisation,dividend,changeofaddressetc.andrelatedcorrespondenceandqueriesmaybeaddressedto:-


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M/s Karvy Computershare Private Limited305,NewDelhiHouse 27,BarakhambaRoad,ConnaughtPlace,NewDelhi–110001TelNo.011-43681700,FaxNo.011-43681710Email:[email protected] or

KarvySeleniumTower-B,PlotNo.31&32Gachibowli,FinancialDistrictNanakramguda,Hyderabad-500032TelNo.040-67162222,FaxNo.040-23001153Email:[email protected]:www.karvy.com/www.karvycomputershare.com

xvi) Registered & Head Office EngineersIndiaBhawan 1,BhikajiCamaPlace NewDelhi–110066 CIN:L74899DL1965GOI004352 Tel:011-26762121;Fax:011-26178210,26194715 Email:[email protected] Website:www.engineersindia.com

xvii) Regional Offices A.G.Towers(5thFloor) 125/1,ParkStreet,Kolkata–700017 Tel:033-22298995,22276304;Fax:033-22277692 Email:[email protected]

4thand5thFloor,MeghdhanushComplex RaceCourseRoad,NearTranspekCircle Vadodara–390015 Tel:0265-2340326,2340368–69 Fax:0265–2340328 Email:[email protected]

PlotNo.F9,SIPCOTITPark, 1stMainRoad,Siruseri,Chennai–603103 Tel:044–27469401/402;Fax:044–27469000 Email:[email protected]

xviii) Branch Office GreatEasternChambers,5th Floor PlotNo.28,Sector–11,BelapurC.B.D. NaviMumbai–400614 Tel:022–27560072,27560032 Fax:022–27572011,27563066 Email:[email protected]

xix) Overseas Offices 17thfloor,BusinessAvenueTower SalamStreet,P.O.Box:126592,AbuDhabi-UAE Tel.:+971-2-6740101,Fax:+971-2-6740707 Email:[email protected]

487,GreatWestRoad Hounslow,Middlesex,London,UK–(TW50BS) Phone:0044–208–570–5530(O) Handphone:0044–7404608246 Email:[email protected]

Mylands.as.diIIIRES.r.I. Apartment-112,PiazzaLuigidiSavoia28, Milan-20124,Italy. Mobile1:00-39-338-467-8867 Mobile2:00-39-389-532-3116 Email:[email protected]

RoomNo.1632,16thFloor,AsianBizCentre OrientCenturyPlaza,345XianXiaRoad NearGubeiRoad,Shanghai–200336,China. Phone:0086–2122157403,2122157405 Email:[email protected]

xx) Auditors M/s.M.Verma&Associates Chartered Accountants 1209,HemkuntChambers, 89,NehruPlace, NewDelhi-110016 Tel.No.011-41078098,Fax:011-26211211

xxi) Address for correspondence

All correspondencerelatingto thesharesof theCompanyshouldbesent to theCompany’sRegistrar&ShareTransferAgentsasmentionedinItem14(xv)tillfurthercommunicationfromtheCompany.

Place:NewDelhiDate:May27,2015


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Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification

We,A.K.Purwaha,Chairman&ManagingDirectorandRamSingh,Director(Finance)ofEngineersIndiaLimited,tothebestofourknowledgeandbelief,certifythat:

1. WehavereviewedtheFinancialStatementsandtheCashFlowStatementfortheyearending31stMarch,2015.

2. Basedonourknowledgeandinformation,theseFinancialStatementsdonotcontainanyuntruestatementofamaterialfactoromitanymaterial fact or contain statements that might be misleading.

3. Basedonourknowledgeandinformation,theseFinancialStatementstogetherpresentatrueandfairviewofthecompany’saffairsandareincompliancewiththeexistingAccountingStandardsand/orapplicableLawsandRegulations.

4. Tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyear,arefraudulent,illegalorviolativeof the Company’s Code of Conduct.

5. Weareresponsibleforestablishingandmaintaininginternalcontrolsoverfinancialreportingandwehaveevaluatedtheeffectivenessof such controls.

6. Wehavedisclosed,whereverapplicable,totheCompany’sAuditorsandAuditCommittee:

(a) Anydeficienciesinthedesignoroperationofinternalcontrolforfinancialreportingincludinganycorrectiveactionwithregardtodeficiencies.

(b) Significantchangesininternalcontroloverfinancialreportingduringtheyear.

(c) Significantchanges inAccountingPoliciesduringtheyearandthatthesamehavebeendisclosed intheNotestotheFinancialStatements.

(d) Instancesofsignificantfraud,ofwhichweareaware,thatinvolvesmanagementorotheremployeeswhohavesignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.

Place:NewDelhi (A.K.Purwaha) (RamSingh)Date:May27,2015 Chairman&ManagingDirector Director(Finance) (CEO) (CFO)

Annexure to Report on Corporate Governance


83

Auditors’ Report on Corporate GovernanceThe Members EngineersIndiaLimited

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyENGINEERSINDIALIMITEDfortheyearended31stMarch,2015,asstipulatedinClause49oftheListingAgreementofthesaidCompanywithStockExchangesandGuidelinesonCorporateGovernanceforCentralPublicSectorEnterprisesissuedbyDepartmentofPublicEnterprises(DPE),MinistryofHeavyIndustriesandPublicEnterprises,GovernmentofIndia.

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationhasbeenlimitedtoreviewofproceduresandimplementationsthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionofCorporateGovernanceasstipulatedinthesaidclauseandguidelines.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementoftheCompany.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,andbasedonrepresentationsmadebytheDirectorsandtheManagement,subjectto:

i) AsrequiredvideClause49(II)(A)oftheListingAgreementandPara3.1.2and3.1.4oftheDPEGuidelinesontheCorporateGovernance,thecompanydidnothavetherequisitecompositionoftheBoardofDirectorsexcept:

a) the Company’s Board consist more than fifty percent Non-Executive Directors during the period from 1.4.2014 to 27.08.2014. b) the Company had two women Directors on its Board during the financial year 2014-15.

ii) AsrequiredvideClause49(II)(B)(5)oftheListingAgreement,thecompanyhasnotcarriedoutthePerformanceEvaluationoftheDirectors.

wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedinclause49oftheListingAgreementandDPEGuidelinesonCorporateGovernanceasmentionedabove.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

ForM.VERMA&ASSOCIATESCHARTEREDACCOUNTANTS

(MOHENDERGANDHI)PARTNER

M.NO.088396FirmRegistrationNo.501433C

Place:NewDelhiDated:May27,2015



84

Management’s Reply to Auditors’ Report on Corporate Governance (2014-15)

AUDITORS’ COMMENTS MANAGEMENT’S REPLY


i) EIL is a Public Sector Undertaking and the appointment ofDirectors both Executive and Non-Executive aremade by theGovernmentofIndia.

InordertofulfiltherequirementofthenumberofIndependentDirectors under the provisions of Clause 49 of the ListingAgreementandDPEGuidelinesonCorporateGovernance, theCompany has already taken up the matter with the Ministryof Petroleum and Natural Gas (MoP&NG), Government ofIndia for appointment of sufficient number of Non-Executive/Independent Directors on the Board of the Company.

ii) EIL is a Public Sector Undertaking and the appointment ofDirectors both Executive and Non-Executive aremade by theGovernmentofIndia.Therefore,thecompanyhasnotlaiddownany criteria for performance evaluation of the independentdirectors and the Board.

i) As required vide Clause 49 (II) (A) of the ListingAgreement and Para 3.1.2 and 3.1.4 of the DPEGuidelines on the Corporate Governance, thecompanydidnothavetherequisitecompositionofthe Board of Directors except:

a) the Company’s Board consist more than fiftypercent Non-Executive Directors during theperiodfrom1.04.2014to27.08.2014.

b) theCompanyhadtwowomenDirectorsonitsBoardduringthefinancialyear2014-15

ii) AsrequiredvideClause49(II) (B)(5)oftheListingAgreement, the company has not carried out thePerformanceEvaluationoftheDirectors.


85

Secretarial Audit ReportFor the Financial Year Ended 31st March, 2015

To,The Members,Engineers India Limited

IhaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyEngineersIndiaLimited(hereinaftercalled‘theCompany’or‘EIL’).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.

Basedonmyverificationofthecompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,thecompanyhas,duringtheauditperiodcoveringthefinancialperiodendedon31stMarch,2015compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandCompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch,2015accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

(iii)TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv)Foreign ExchangeManagement Act, 1999 and the rules and regulationsmade thereunder to the extent of Foreign Direct Investment,OverseasDirectInvestmentandExternalCommercialBorrowings;

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulation,2011;

(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;

(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;

(d) TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999;

(e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

(f) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;

(g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;and

(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998;

(vi)Compliances/processes/systemsunderotherspecificapplicableLaws(asapplicabletotheindustry)totheCompanyarebeingverifiedonthebasisofperiodiccertificateunderinternalCompliancesystemsubmittedtotheBoardofDirectorsoftheCompany:

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.(NotmandatoryfortheAuditperiod).

(ii) TheListingAgreementsenteredintobytheCompanywithNationalStockExchangeofIndiaLimitedandBSELimited.



86

During the period under review the Company has compliedwith the provisions of the Act, Rules, Regulations, Guidelines, Standards etc.mentionedabovesubjecttothefollowing:

i) Asper Section149(4)of theCompaniesAct, 2013,Clause49 (II) (A)of the ListingAgreement andPara3.1.2 and3.1.4of theDPEGuidelinesonCorporateGovernance,thecompanydidnothavetherequisitecompositionoftheBoardofDirectorsexceptthefollowing:

a) thecompanyhadmorethanfiftypercentoftheBoardofDirectorscomprisingofNon-executivedirectorsduringtheperiodfrom1.4.2014to27.08.2014.

b) thecompanyhadmorethanone-thirdoftheBoardofDirectorscomprisingofIndependentDirectorsduringtheperiodfrom1.4.2014to27.08.2014.

c) thecompanyhadtwowomenDirectorsonitsBoardduringthefinancialyear2014-15.

ii) AsperSection149(8)readwithSchedule(IV)(VIII)andSection178(2)oftheCompaniesAct,2013andClause49(II)(B)(5)oftheListingAgreement,thecompanyhasnotcarriedouttheperformanceevaluationoftheDirectors.

I further report that EngineersIndiaLimitedisaGovernmentCompanyundertheadministrativecontroloftheMinistryofPetroleumandNaturalGas,Governmentof India,alltheDirectorsarenominated/appointedbytheGovernmentof India.TheGovernmentof India is inprocessofselectingrequisitenumberofIndependentDirectors.SincealltheDirectorsarenominated/appointedbytheGovernmentofIndia,thecompanyhasnotbeenabletocomplywiththerequirementspertainingtocompositionofBoardofDirectorsandperformanceevaluationofDirectorsforthefinancialyear2014-15.

Generally,adequatenoticeisgiventoallDirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendays inadvance,andasystemexists forseekingandobtaining further informationandclarificationsontheagenda itemsbeforethemeetingandformeaningfulparticipationatthemeeting.

AllthedecisionsmadeintheBoard/Committeemeeting(s)werecarriedoutwithunanimousconsentofthealltheDirectors/Memberspresentduringthemeeting.

IfurtherreportthatthereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Ifurtherreportthatduringtheauditperiod,therewerenospecificevents/actionshavingamajorbearingontheCompany’saffairsinpursuanceoftheabovereferredlaws.

Thisreportistobereadwithourletterofevendatewhichisannexedas“AnnexureA”andformsanintegralpartofthisreport.


For Agarwal S. & Associates,CompanySecretaries,

(Sachin Agarwal)FCSNo.:5774C.PNo.:5910


87

“Annexure A” To,

TheMembers,Engineers India Limited

Ourreportofevendateistobereadalongwiththisletter.

1. MaintenanceofsecretarialrecordistheresponsibilityofthemanagementoftheCompany.OurResponsibilityistoexpressanopiniononthese secretarial records based on our audit.

2. Wehave followed the audit practices andprocesses aswere appropriate to obtain reasonable assurance about the correctness of thecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationandhappeningof events etc.

5. TheComplianceoftheprovisionsofcorporateandotherapplicablelaws,rules,regulations,standardsaretheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditReportisneitheranassuranceastofutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.


For Agarwal S. & Associates,CompanySecretaries,

(Sachin Agarwal)FCSNo.:5774C.PNo.:5910


88

Management’s Reply to Secretarial Auditor Report (2014-15)

i) AsperSection149(4)oftheCompaniesAct,2013,Clause49(II)(A)oftheListingAgreementandPara3.1.2and3.1.4oftheDPEGuidelinesonCorporateGovernance,thecompanydidnothavethe requisite composition of the Board of Directors except thefollowing:

a) the company had more than fifty percent of the Board ofDirectors comprising of Non-executive directors during theperiodfrom1.4.2014to27.08.2014.

b) the company had more than one-third of the Board ofDirectors comprising of Independent Directors during the periodfrom1.4.2014to27.08.2014.

c) thecompanyhad twowomenDirectorson itsBoardduringthefinancialyear2014-15.

ii) AsperSection149(8) readwithSchedule (IV) (VIII)andSection178(2)of theCompaniesAct, 2013andClause49 (II) (B) (5)ofthe Listing Agreement, the company has not carried out theperformanceevaluationoftheDirectors.



i) EIL is a Public Sector Undertaking and the appointment ofDirectors both Executive and Non-Executive aremade by theGovernmentofIndia.

In order to fulfil the requirement of the number of Non-Executive and Non-official Independent Directors under theprovisions of Companies Act, 2013, Clause 49 of the ListingAgreementandDPEGuidelinesonCorporateGovernance, theCompanyhasalreadytakenupthematterwiththeMinistryofPetroleumandNaturalGas(MoP&NG),GovernmentofIndiaforappointment of sufficient number of Non-Executive andNon-officialIndependentDirectorsontheBoardoftheCompany.

ii) EIL is a Public Sector Undertaking and the appointment ofDirectors both Executive and Non-Executive aremade by theGovernmentofIndia.Therefore,thecompanyhasnotlaiddownanycriteriaforperformanceevaluationoftheDirectors.


89

Form No. MGT-9Extract of Annual Return

as on the Financial Year ended 31st March, 2015[Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the

Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i) CIN : L74899DL1965GOI004352

ii) RegistrationDate : 15/03/1965

iii) NameoftheCompany : EngineersIndiaLimited

iv) Category/Sub-CategoryoftheCompany : PublicLimitedCompany(LimitedbyShares)-Govt.ofIndiaUndertaking.

v) AddressoftheRegisteredofficeandcontactdetails : EngineersIndiaBhawan,1,BhikaijiCamaPlace, NewDelhi-110066 Tel:011-26762121,Fax:011-26178210,26194715 E-mail:[email protected]

Website:www.engineersindia.com

vi) WhetherlistedcompanyYes/No : Yes

vii) Name,AddressandContactdetailsofRegistrar andTransferAgent,ifany : M/sKarvyComputersharePrivateLtd. KarvySeleniumTowerB,Plot31-32 Gachibowli,FinancialDistrict Nanakramguda,Serilingampally Hyderabad-500032 TelNo.040-67161500 FaxNo.040-23001153 Email:[email protected] Website:www.karvy.com/www.karvycomputershare.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sl. No.

Name and Description of main products / services

NIC Code of the Product/ service % to total turnover of the company

1 Consultancy&EngineeringProjects N.A. 55.34

2 Turnkey Projects N.A. 44.66

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S. No. NAME AND ADDRESS OF THE COMPANY CIN/GLN HOLDING/ SUBSIDIARY/ ASSOCIATE

% of shares held

Applicable Section

1 EILAsiaPacificSdn.Bhd. 290200-W Subsidiary 100% 2(87)

2 CertificationEngineersInternationalLimited

U74899DL1994GOI062371 Subsidiary 100% 2(87)

3 JabalEILIOTCompanyLtd. 2051046155 Associates 33.33% 2(6)

4 TEILProjectsLtd. U74140DL2008PLC180897 Associates 50% 2(6)

5 RamagundamFertilizersandChemicalsLtd.

U24100DL2015PLC276753 Associates 49.90% 2(6)



90

IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i. Category-wise Shareholding

CATEGORY CODE

CATEGORY OF SHAREHOLDER

NO. OF SHARES HELD AT THE BEGINNING OF THE YEAR 1/04/2014

NO. OF SHARES HELD AT THE END OF THE YEAR 31/03/2015

% CHANGE DURING

THE YEAR

DEMAT PHYSICAL TOTAL % OF TOTAL

SHARES


SHARES

(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)

(A) PROMOTER AND PROMOTER GROUP

(1) INDIAN

(a) Individual/HUF 0 0 0 0.00 0 0 0 0.00 0.00

(b) CentralGovernment/StateGovernment(s)

233727299 0 233727299 69.37 233727299 0 233727299 69.37 0.00

(c) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00

(d) FinancialInstitutions/Banks 0 0 0 0.00 0 0 0 0.00 0.00

(e) Others 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total A(1) : 233727299 0 233727299 69.37 233727299 0 233727299 69.37 0.00

(2) FOREIGN

(a) Individuals(NRIs/ForeignIndividuals)

0 0 0 0.00 0 0 0 0.00 0.00

(b) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00

(c) Institutions 0 0 0 0.00 0 0 0 0.00 0.00

(d) QualifiedForeignInvestor 0 0 0 0.00 0 0 0 0.00 0.00

(e) Others 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total A(2) : 0 0 0 0.00 0 0 0 0.00 0.00

Total A=A(1)+A(2) 233727299 0 233727299 69.37 233727299 0 233727299 69.37 0.00

(B) PUBLIC SHAREHOLDING

(1) INSTITUTIONS

(a) MutualFunds/UTI 12979837 0 12979837 3.85 6814001 0 6814001 2.02 1.83

(b) FinancialInstitutions/Banks 6512697 0 6512697 1.93 5816891 0 5816891 1.73 0.21

(c) CentralGovernment/StateGovernment(s)

0 0 0 0.00 0 0 0 0.00 0.00

(d) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00

(e) Insurance Companies 22769157 0 22769157 6.76 24455454 0 24455454 7.26 -0.50

(f) ForeignInstitutionalInvestors

28509155 0 28509155 8.46 28631417 0 28631417 8.50 -0.04

(g) Foreign Venture Capital Investors

0 0 0 0.00 0 0 0 0.00 0.00

(h) QualifiedForeignInvestor 0 0 0 0.00 0 0 0 0.00 0.00

(i) Others 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total B(1) : 70770846 0 70770846 21.00 65717763 0 65717763 19.50 1.50


91

CATEGORY CODE

CATEGORY OF SHAREHOLDER

NO. OF SHARES HELD AT THE BEGINNING OF THE YEAR 1/04/2014

NO. OF SHARES HELD AT THE END OF THE YEAR 31/03/2015

% CHANGE DURING

THE YEAR


SHARES


SHARES

(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)

(2) NON-INSTITUTIONS

(a) Bodies Corporate 7235124 18 7235142 2.15 9835186 18 9835204 2.92 -0.77

(b) Individuals

(i)Individualsholdingnominal share capital upto `1lakh

19866485 418422 20284907 6.02 23059309 391939 23451248 6.96 -0.94

(ii)Individualsholdingnominal share capital in excess of `1lakh

3007249 0 3007249 0.89 2420962 0 2420962 0.72 0.17

(c) Others

CLEARINGMEMBERS 714430 0 714430 0.21 184241 0 184241 0.05 0.16

NONRESIDENTINDIANS 995620 0 995620 0.30 1506241 0 1506241 0.45 -0.15

TRUSTS 201107 0 201107 0.06 93642 0 93642 0.03 0.03

(d) QualifiedForeignInvestor 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total B(2) : 32020015 418440 32438455 9.63 37099581 391957 37491538 11.13 -1.50

Total B=B(1)+B(2) : 102790861 418440 103209301 30.63 102817344 391957 103209301 30.63 0.00

Total (A+B) : 336518160 418440 336936600 100.00 336544643 391957 336936600 100.00 0.00

(C) Shares held by custodians, against which

Depository Receipts have been issued

(1) Promoter and Promoter Group

(2) Public 0 0 0 0.00 0 0 0 0.00 0.00

GRAND TOTAL (A+B+C) 336518160 418440 336936600 100.00 336544643 391957 336936600 100.00

ii. Shareholding of Promotors

S. No. Shareholder's Name Shareholding at the begining of the year Shareholding at the end of the year % change in shareholding

during the year

No. of Shares

% of total Shares of the

Company

% of Shares Pledged/

encumbured to total Shares

No. of Shares

% of total Shares of the

Company

% of Shares Pledged/

encumbured to total Shares

1 CentralGovernment/StateGovernment(s)

233727299 69.37 Nil 233727299 69.37 Nil Nil

Total 233727299 69.37 Nil 233727299 69.37 Nil Nil


92

iii. Change in Promoter’s Shareholding

TherewasnochangeinthePromoter’sshareholdingduringthefinancialyear2014-15.

iv Shareholding Pattern of Top 10 Shareholders (other than Directors, Promoters and holders of GDRs and ADRs)

Sl. No.

Name Shareholding Date Increase/Decrease in

shareholding

Reason Cumulative Shareholding during the year (01-04-2014 to 31-03-2015)

No. of Shares at the beginning (01-04-2014)/end of the year (31-03-2015)

% of total shares of the

company

No. of Shares % of total shares of the

company

1 LIC OF INDIA HEALTHPROTECTIONPLUS FUND

21283187 6.32 01/04/2014 21283187 6.3223/05/2014 -105000 Transfer 21178187 6.2906/06/2014 -60859 Transfer 21117328 6.2713/06/2014 -111677 Transfer 21005651 6.2304/07/2014 -175752 Transfer 20829899 6.1811/07/2014 -50953 Transfer 20778946 6.1718/07/2014 -33424 Transfer 20745522 6.1625/07/2014 -147956 Transfer 20597566 6.11

20597566 6.11 31/03/2015 20597566 6.112 HSBCBANK

(MAURITIUS)LIMITED

5658735 1.68 01/04/2014 5658735 1.6808/08/2014 34073 Transfer 5692808 1.6915/08/2014 97841 Transfer 5790649 1.7222/08/2014 205000 Transfer 5995649 1.7805/09/2014 33731 Transfer 6029380 1.7912/09/2014 400000 Transfer 6429380 1.9123/01/2015 -770645 Transfer 5658735 1.68

5658735 1.68 31/03/2015 5658735 1.683 GENERAL

INSURANCECORPORATION OF INDIA

3855015 1.14 01/04/2014 0 Nil movement during the

year

3855015 1.14 31/03/2015 3855015 1.144 SOMERSET

EMERGINGMARKETSSMALL CAP FUND LLC

3802144 1.13 01/04/2014 3802144 1.1318/04/2014 32960 Transfer 3835104 1.1416/05/2014 163465 Transfer 3998569 1.1930/05/2014 -44837 Transfer 3953732 1.1706/06/2014 -485224 Transfer 3468508 1.0301/08/2014 -49889 Transfer 3418619 1.0108/08/2014 -62932 Transfer 3355687 1.0015/08/2014 -6445 Transfer 3349242 0.9905/09/2014 -8169 Transfer 3341073 0.9921/11/2014 -306145 Transfer 3034928 0.9028/11/2014 -48251 Transfer 2986677 0.8905/12/2014 -426514 Transfer 2560163 0.7606/02/2015 -67481 Transfer 2492682 0.7413/02/2015 -91512 Transfer 2401170 0.71

2345289 0.70 31/03/2015 2345289 0.70


93

Sl. No.


shareholding




company


company

5 CPSEETF 3481522 1.03 01/04/2014 3481522 1.03

04/04/2014 7170 Transfer 3488692 1.04

04/04/2014 -71 Transfer 3488621 1.04

11/04/2014 69223 Transfer 3557844 1.06

11/04/2014 -949853 Transfer 2607991 0.77

18/04/2014 -181093 Transfer 2426898 0.72

25/04/2014 -196729 Transfer 2230169 0.66

02/05/2014 -104059 Transfer 2126110 0.63

09/05/2014 -55097 Transfer 2071013 0.61

16/05/2014 19523 Transfer 2090536 0.62

16/05/2014 -68509 Transfer 2022027 0.60

23/05/2014 27537 Transfer 2049564 0.61

23/05/2014 -20301 Transfer 2029263 0.60

30/05/2014 30351 Transfer 2059614 0.61

30/05/2014 -6645 Transfer 2052969 0.61

06/06/2014 14070 Transfer 2067039 0.61

06/06/2014 -7437 Transfer 2059602 0.61

13/06/2014 -5437 Transfer 2054165 0.61

20/06/2014 2412 Transfer 2056577 0.61

20/06/2014 -14 Transfer 2056563 0.61

30/06/2014 4221 Transfer 2060784 0.61

30/06/2014 -14 Transfer 2060770 0.61

04/07/2014 3618 Transfer 2064388 0.61

11/07/2014 -1407 Transfer 2062981 0.61

18/07/2014 1824 Transfer 2064805 0.61

25/07/2014 2613 Transfer 2067418 0.61

01/08/2014 1809 Transfer 2069227 0.61

08/08/2014 603 Transfer 2069830 0.61

15/08/2014 201 Transfer 2070031 0.61

15/08/2014 -204 Transfer 2069827 0.61

22/08/2014 993 Transfer 2070820 0.61

22/08/2014 -13348 Transfer 2057472 0.61

29/08/2014 1990 Transfer 2059462 0.61

29/08/2014 -4786 Transfer 2054676 0.61

05/09/2014 -4950 Transfer 2049726 0.61

12/09/2014 7164 Transfer 2056890 0.61

12/09/2014 -10358 Transfer 2046532 0.61

19/09/2014 -13930 Transfer 2032602 0.60

30/09/2014 8557 Transfer 2041159 0.61


94

Sl. No.


shareholding




company


company

03/10/2014 -796 Transfer 2040363 0.61

10/10/2014 -199 Transfer 2040164 0.61

17/10/2014 8159 Transfer 2048323 0.61

24/10/2014 6766 Transfer 2055089 0.61

31/10/2014 3781 Transfer 2058870 0.61

31/10/2014 -3781 Transfer 2055089 0.61

07/11/2014 10746 Transfer 2065835 0.61

07/11/2014 -3781 Transfer 2062054 0.61

14/11/2014 197 Transfer 2062251 0.61

14/11/2014 -32728 Transfer 2029523 0.60

21/11/2014 27974 Transfer 2057497 0.61

21/11/2014 -85498 Transfer 1971999 0.59

28/11/2014 -34475 Transfer 1937524 0.58

05/12/2014 -4149 Transfer 1933375 0.57

12/12/2014 394 Transfer 1933769 0.57

12/12/2014 -2955 Transfer 1930814 0.57

19/12/2014 1970 Transfer 1932784 0.57

19/12/2014 -4137 Transfer 1928647 0.57

31/12/2014 18162 Transfer 1946809 0.58

31/12/2014 -1780 Transfer 1945029 0.58

02/01/2015 6336 Transfer 1951365 0.58

02/01/2015 -7326 Transfer 1944039 0.58

09/01/2015 21978 Transfer 1966017 0.58

16/01/2015 -23573 Transfer 1942444 0.58

23/01/2015 792 Transfer 1943236 0.58

23/01/2015 -4356 Transfer 1938880 0.58

30/01/2015 -9900 Transfer 1928980 0.57

06/02/2015 -5346 Transfer 1923634 0.57

13/02/2015 -412 Transfer 1923222 0.57

27/02/2015 850 Transfer 1924072 0.57

27/02/2015 -1539 Transfer 1922533 0.57

06/03/2015 -4099 Transfer 1918434 0.57

13/03/2015 22448 Transfer 1940882 0.58

20/03/2015 2422 Transfer 1943304 0.58

20/03/2015 -91 Transfer 1943213 0.58

27/03/2015 10380 Transfer 1953593 0.58

27/03/2015 -1218 Transfer 1952375 0.58

31/03/2015 14173 Transfer 1966548 0.58

31/03/2015 -346 Transfer 1966202 0.58

1698563 0.50 31/03/2015 1698563 0.50


95

Sl. No.


shareholding




company


company

6 UNITEDINDIAINSURANCECOMPANYLIMITED

528535 0.16 01/04/2014 528535 0.16

23/05/2014 -65000 Transfer 463535 0.14

30/05/2014 -1019 Transfer 462516 0.14

19/09/2014 40000 Transfer 502516 0.15

30/09/2014 91262 Transfer 593778 0.18

10/10/2014 21657 Transfer 615435 0.18

17/10/2014 40000 Transfer 655435 0.19

24/10/2014 50000 Transfer 705435 0.21

31/10/2014 30000 Transfer 735435 0.22

14/11/2014 40000 Transfer 775435 0.23

21/11/2014 160000 Transfer 935435 0.28

28/11/2014 150000 Transfer 1085435 0.32

05/12/2014 30000 Transfer 1115435 0.33

12/12/2014 60000 Transfer 1175435 0.35

19/12/2014 150000 Transfer 1325435 0.39

31/12/2014 369677 Transfer 1695112 0.50

09/01/2015 110000 Transfer 1805112 0.54

16/01/2015 82298 Transfer 1887410 0.56

23/01/2015 89341 Transfer 1976751 0.59

30/01/2015 120000 Transfer 2096751 0.62

06/02/2015 160000 Transfer 2256751 0.67

13/02/2015 93081 Transfer 2349832 0.70

27/02/2015 100000 Transfer 2449832 0.73

06/03/2015 20000 Transfer 2469832 0.73

2529832 0.75 31/03/2015 2529832 0.75

7 GOVERNMENTPENSIONFUNDGLOBAL

435211 0.13 01/04/2014 435211 0.13

04/04/2014 200094 Transfer 635305 0.19

11/04/2014 156494 Transfer 791799 0.23

18/04/2014 116614 Transfer 908413 0.27

25/04/2014 159241 Transfer 1067654 0.32

02/05/2014 206477 Transfer 1274131 0.38

09/05/2014 449538 Transfer 1723669 0.51

16/05/2014 398073 Transfer 2121742 0.63

23/05/2014 155018 Transfer 2276760 0.68

21/11/2014 2276760 Transfer 4553520 1.35

21/11/2014 -2276760 Transfer 2276760 0.68

2276760 0.68 31/03/2015 2276760 0.68


96

Sl. No.


shareholding




company


company

8 FIDELITYPURITAN TRUST-FIDELITYLOW-PRICEDSTOCK FUND

2145508 0.64 01/04/2014 2145508 0.64

25/04/2014 4500 Transfer 2150008 0.64

2150008 0.64 31/03/2015 2150008 0.64

9 COMGESTGROWTHPLCA/CCOMGESTGROWTHINDIA

2100000 0.62 01/04/2014 2100000 0.62

23/05/2014 -400000 Transfer 1700000 0.50

06/06/2014 -300000 Transfer 1400000 0.42

14/11/2014 -162208 Transfer 1237792 0.37

21/11/2014 -300387 Transfer 937405 0.28

28/11/2014 -221189 Transfer 716216 0.21

05/12/2014 -16216 Transfer 700000 0.21

06/02/2015 -700000 Transfer 0 0.00

0 0.00 31/03/2015 0 0.00

10 MORGANSTANLEYASIA(SINGAPORE)PTE.

2032173 0.60 01/04/2014 2032173 0.60

11/04/2014 -65867 Transfer 1966306 0.58

13/06/2014 11402 Transfer 1977708 0.59

20/06/2014 -11402 Transfer 1966306 0.58

14/11/2014 -42120 Transfer 1924186 0.57

28/11/2014 16710 Transfer 1940896 0.58

05/12/2014 -6005 Transfer 1934891 0.57

19/12/2014 1942597 Transfer 3877488 1.15

19/12/2014 -1934891 Transfer 1942597 0.58

31/12/2014 -1000 Transfer 1941597 0.58

09/01/2015 -43000 Transfer 1898597 0.56

30/01/2015 68000 Transfer 1966597 0.58

06/02/2015 133000 Transfer 2099597 0.62

27/02/2015 -177000 Transfer 1922597 0.57

06/03/2015 46200 Transfer 1968797 0.58

27/03/2015 -89000 Transfer 1879797 0.56

31/03/2015 -47000 Transfer 1832797 0.54

1917797 0.57 31/03/2015 1917797 0.57


97

v) Shareholding of Directors and Key Managerial Personnel

Sl. No.


shareholding

Reason Cumulative Shareholding during the year (01-04-2014

to 31-03-2015)

No. of Shares at the beginning (01-04-2014)/

end of the year (31-03-2015)


company


company

1 ShriA.K.Purwaha, Chairman&Managing Director

Nil 0.00 01/04/2014 Nil 0.00

0 Nil movement during the year

Nil 0.00 31/03/2015 Nil 0.00

2 Dr. Archana S. Mathur, Director(Govt.Nominee)

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

3 ShriAditJain, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

4 ShriBijoyChatterjee, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

5 Dr.R.K.Shevgaonkar, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

6 Dr.J.P.Gupta, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

7 ShriD.R.Meena, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

8 Dr.V.ViziaSaradhi, Non-officialIndependent Director

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

9 ShriRamSingh, Director(Finance)

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00


98

Sl. No.


shareholding

Reason Cumulative Shareholding during the year (01-04-2014

to 31-03-2015)

No. of Shares at the beginning (01-04-2014)/

end of the year (31-03-2015)


company


company

10 ShriD.Moudgil, Director(Projects)

340 0.00 01/04/2014 340 0.00


340 0.00 31/03/2015 340 0.00

11 ShriSanjayGupta, Director (Commercial)

60 0.00 01/04/2014 60 0.00


60 0.00 31/03/2015 60 0.00

12 Ms.VeenaSwarup, Director(HR)

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

13 Shri Ajay N. Deshpande, Director(Technical)

3940 0.00 01/04/2014 3940 0.00


3940 0.00 31/03/2015 3940 0.00

14 ShriAshwaniSoni Director(Projects)

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

15 Shri Rajan Kapur Company Secretary

Nil 0.00 01/04/2014 Nil 0.00


Nil 0.00 31/03/2015 Nil 0.00

V. INDEBTEDNESS

TheCompanyhasnotavailedanyloanduringtheyearandisadebt-freeCompany.

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

EILisaPublicSectorUndertaking(GovernmentCompany)andtheappointmentofDirectorsbothExecutiveandNon-ExecutivearemadebytheGovernmentofIndiaandarebeingpaidremunerationasperthetermsoftheirappointment.ThedetailsinthisregardaregivenintheCorporateGovernanceReportwhichformspartofAnnualReport.

VII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES

Therewerenopenalties/punishment/compoundingofoffencesforthefinancialyearended31st March,2015.


99

To The Members of ENGINEERSINDIALIMITED

Report on the Standalone Financial StatementsWehaveauditedtheaccompanyingstandalonefinancialstatementsofEngineersIndiaLimited(“thecompany”),whichcomprisestheBalanceSheetasat31stMarch2015,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Standalone Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetecting the fraudsandother irregularities; selectionandapplicationofappropriateaccountingpolicies;making judgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrol,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheAct and the Rules made there under.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare free from material misstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivetrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebyCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.

OpinionInouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatements,givetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia;

a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2015;

b) InthecaseoftheStatementofProfitandLoss,oftheprofitfortheyearendedonthatdate;and

c) InthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.

Report on other Legal and Regulatory Requirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2015(‘’theOrder”), issuedbytheCentralGovernmentof India intermsofsub-section(11)ofsection143oftheCompaniesAct2013,wegiveintheAnnexureastatementonthemattersspecifiedintheparagraph3and4oftheOrder,totheextentapplicable.

Independent Auditors’ Report


100

2. TheC&AGofIndiahasissueddirectionindicatingtheareastobeexaminedintermsofsubsection(5)ofsection143oftheCompaniesAct2013,complianceofwhicharesetoutinAnnexureII

Asrequiredbysection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposes of our audit.

b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthose books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us

c) TheBalanceSheet,theStatementofProfitandLoss,andCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccountandwiththereturnsreceivedfromthebranchesnotvisitedbyus.

d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31March,2015,takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31March,2015,frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) With respect to theothermatters tobe included in theAuditor’sReport in accordancewithRule11of theCompanies (Audit andAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements-ReferNotesNo2.17tothefinancialstatements;

ii. TheCompanyhasmadeprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlongtermcontractsincludingderivativecontracts-ReferNoteNo2.43tothefinancialstatements;

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.

Place:NewDelhi Date:May27,2015

ForM.Verma&AssociatesChartered Accountants

FRN:501433C

(Mohender Gandhi)(Partner)

M.Number:088396


101

TheAnnexurereferredtoinourIndependentAuditors’ReporttothemembersoftheCompanyonthestandalonefinancialstatementsfortheyearended31stMarch2015,wereportthat:

(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationofitsfixedassets.

(b) Asexplainedtous,thefixedassetshavebeenphysicallyverifiedbythemanagementinphasedmannersoastocovereachassetsatonceinthreeyearswhichinouropinionisreasonableinregardtothesizeoftheCompanyandthenatureofitsbusiness.Asinformedtous,nomaterialdiscrepancieswerenoticedonsuchverification.

(ii) (a) Asexplained tous, inventorieshavebeenphysically verifiedduring the yearby themanagement. Inouropinion, the frequencyofverificationisreasonable.

(b) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationofinventoryfollowedbythemanagementarereasonableandadequateinrelationtothesizeofthecompanyandthenatureofitsbusiness.

(c) Weareoftheopinionthat,theCompanyismaintainingproperrecordsofinventory.Furtherasperinformationandexplanationsgiventousthediscrepanciesnoticedonphysicalverificationofinventoriesascomparedtobookrecordswerenotmaterialandthesamehavebeenproperlydealtwithinthebooksofaccount.

(iii)Accordingtotheinformationandexplanationsgiventous,thecompanyhasnotgrantedanyloans,securedorunsecuredtocompanies,firmsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct.Accordinglyparagraphs(iii)(a)and(b)oftheorder are not applicable.

(iv)Inouropinionandaccordingtotheinformationandexplanationsgiventous,thereisanadequateinternalcontrolsystemcommensuratewiththesizeoftheCompanyandthenatureofitsbusinesswithregardtopurchaseofinventoryandfixedassetsandforthesaleofgoodsandservices.Onthebasisofourexaminationandaccordingtoinformationandexplanationgiventouswehaveneithercomeacrossnorbeeninformedofanyinstanceofmajorweaknessintheinternalcontrolsystem.

(v) TheCompanyhasnotacceptedanydepositsfromthepublic.

(vi)Asperinformationandexplanationprovidedtous,maintenanceofcostrecordhasnotbeenprescribedundersection148oftheactforservices rendered by the Company.

(vii)(a) Asper informationandexplanationsand recordsprovided tous, theCompanyhasbeengenerally regular indepositingundisputedstatutory dues including provident fund, income tax, sales tax,wealth tax, service tax, duty of customs, value added tax, cess andotherstatutorydueswiththeappropriateauthorities.Weareinformedthattherearenoundisputedstatutoryduesasattheyearendoutstanding for a period of more than six months from the date they become payable.

(b) Accordingtotheinformationandexplanationsgiventousandonthebasisofrecordverifiedbyus,thefollowingduesofincometax,salestax,servicetax,wealth-tax,dutyofcustoms,dutyofexcise,valueaddedtaxandcessasatMarch31,2015whichhavenotbeendeposited on account of a dispute:

S.No.

Name of Statute Nature of Duty Forum where the dispute is pending

Financial Year to which it pertains

Amount (`in Lacs)

1 IncomeTaxAct1961 Assessmentu/s143(3)oftheIncomeTaxAct,1961

CIT(Appeals) 2011-12 43.48

2 IncomeTaxAct1961 DemandofTDSu/s201(1)

CIT(Appeals) 2008-09 0.32

3 IncomeTaxAct1961 Interest on Self assessment taxu/s244A

Supreme Court 2005-06 105.37

4 FinanceAct1994 Demand of Service tax CESTAT 2002-2006 62.87

5 Sales Tax Act Demand of Sales Tax Sales Tax tribunal Agra 1999-2000 132.53


7 UP Sales Tax Act Sales Tax SalesTaxtribunal,Agra 1999-2000 13.70

(c) Accordingtotheinformationandexplanationsgiventous,theamountwhichwererequiredtobetransferredtotheinvestoreducationandprotectionfundinaccordancewiththerelevantprovisionsoftheCompaniesAct,1956(1of1956)andrulesmadethereunderhasbeentransferredtosuchfundwithintime.

(viii) TheCompanydoesnothaveanyaccumulatedlossesason31.3.2015andhasnotincurredcashlossesduringtheyearandintheimmediatelyprecedingfinancialyear.

Annexure I to the Independent Auditors’ Report


102

(ix) TheCompanydonothaveanyborrowingfromanyfinancialinstitutions,banksordebentureholders.

(x) Asperrecordandinformationandexplanationsgiventous,theCompanyhasnotgivenanyguaranteeforloanstakenbyothersfrombanksorfinancialinstitutionsexceptguaranteeamountingto`200.00lacsissuedonbehalfofM/sTEILProjectsLtd(ajointventurecompany).InouropinionthetermsandconditionoftheguaranteearenotprejudicialtotheinterestoftheCompany.

(xi) Companyhasnotavailedanytermloanduringtheyear.

(xii) Accordingtotheinformationandexplanationsgiventous,nofraudonorbytheCompanyhasbeennoticedorreportedduringtheyear.



FRN:501433C


M.Number:088396


103

S. No.

Directions Our Report Action Taken Thereon Impact on Accounts and Financial Statements of

the Company

1 If the Company has been selected for disinvestment, a complete statusreportintermsofvaluationofAssets(including intangible assets and land)andLiabilities (includingCommitted&General Reserves) may be examinedincluding the mode and present stage of disinvestment process.

No disinvestment has been taken place duringtheyear2014-15.

Furtherasperinformationprovidedtous Company has not been selected for disinvestmentduringtheyear2014-15

Noactionrequired Nil

2 Please report whether there are anycases of waiver/ write off of debts/loan/interest etc., if yes, the reasonstherefore and the amount involved.

Asperrecordandinformationprovidedtousdebtorsamountingto`19.76lacswere writen off during the years, asmanagement is of the view that theamount is no longer realizable.

Amount `3.04 lacswriteoff against the provisionalready provided and `16.72 lacs debited toP/Laccount.

Profitreducedby`16.72lacs

3 Whether proper records aremaintained for inventories lying withthird parties& assets received as giftfromGovt.orotherauthorities.

Not Applicable

NoinventoryislyingwiththirdpartiesandnoassethasbeenreceivedasgiftfromGovt.ofIndiaorotherauthorities.

Noactionrequired Nil

4 A report on age-wise analysis ofpending legal/arbitration casesincluding the reasons of pendency and existence/effectivenessofamonitoringmechanism for expenditure on all legal cases(foreignandlocal)maybegiven.

Asperrecordandinformationprovidedto us there are 59 legal/arbitrationcases pending which consist 25 casesrelatingtoemployeesand34casesarerelated tootherparties.Theagewiseanalysis of these cases are as under.

Age of cases Number of cases

Lessthan2years 15

2to3years 5

Morethan3years

39

Cases under arbitration/courts aregenerally pending due to (i) hearingsare in process or not yet completed for the want of additional details/documents required by arbitrators/courts(ii)nonfixationofdatesorstaygranted by the courts.

The company is having dedicated legal cell which monitors the legalcases on real timebasis including theexpenditure for engagement of legal experts.

The legal cases have been reviewed and forcases filed against thecompanyintermsofAS-29,theamounthasbeendisclosed as Contingentliability in notes to accounts after adjustingfor provision/liability,if any provided in the accounts

Consequentialeffecthasbeengiventorespectiveheads of accounts. Refer noteno.2.17

Annexure II referred to in Paragraph 2 under the heading ‘Report on other Legal & Regulatory requirements’ of our report of even date



FRN:501433C


M.Number:088396


104

PARTICULARS NOTE NO.as at

31st March, 2015` in lakhs

as at31st March, 2014

` in lakhs

EQUITY AND LIABILITIESShareholders' fundsShare Capital 2.1 16846.84 16846.84Reserves and Surplus 2.2 239943.25 256790.09 229329.20 246176.04

Non-Current Liabilities 2.3OtherLongtermLiabilities 2.3 (A) 221.79 183.31Long Term Provisions 2.3 (B) 1746.82 1968.61 2009.24 2192.55

Current Liabilities 2.4Trade Payables 2.4 (A) 24655.80 28210.46OtherCurrentLiabilities 2.4 (B) 58069.36 54319.54Short term Provisions 2.4 (C) 50110.81 132835.97 44143.05 126673.05

TOTAL 391594.67 375041.64ASSETS

Non Current Assets

Fixed Assets: 2.5Tangible assets 26759.27 11460.44 Intangible assets 210.90 329.68Capitalwork-in-Progress 1911.20 28881.37 13176.15 24966.27

Non Current Investments 2.6 1638.96 1759.31DeferredTaxAsset(Net) 2.33 23194.76 23086.67Long Term Loans and Advances 2.7 4621.09 5147.07Other Non Current Assets 2.8 58.14 48.31

Current Assets: 2.9Current Investments 2.9 (A) 12400.00 71900.00Inventories 2.9 (B) 81.09 100.48Trade Receivables 2.9 (C) 42606.18 34309.30Cash and Bank Balances 2.9 (D) 237292.29 176803.08Short Term Loans and Advances 2.9 (E) 8530.26 4811.21Other Current Assets 2.9 (F) 32290.53 333200.35 32109.94 320034.01

TOTAL 391594.67 375041.64

Significant Accounting Policies and Notes to Accounts

1 & 2

(RAJAN KAPUR)Company SecretaryPAN:AAIPK0926B

(SUDERSHAN GUPTA)ExecutiveDirector{F&A}

PAN:AAGPG5991E

( RAM SINGH )Director{Finance}DIN:02942267

(A.K.PURWAHA)Chairman&ManagingDirector

DIN:00165092

Asperourreportofevendateattachedfor M. VERMA & ASSOCIATESCHARTEREDACCOUNTANTS


(MOHENDER GANDHI)PARTNER

MembershipNo.088396FirmRegistrationNo.501433C

Balance SheetASAT31st MARCH,2015


105

NOTE NO.Year ended

31st March, 2015` in lakhs

Year ended31st March, 2014

` in lakhs

A. Revenue :i) Revenue from Operations 2.10

-Consultancy&EngineeringServices 95411.53 116989.99Increase(+)/(Decrease)(-)inWork-in-Progress (614.22) (6,082.85)

94797.31 110907.14

-TurnkeyProjects 76458.74 71452.03Increase(+)/(Decrease)(-)inWork-in-Progress 44.37 —

76503.11 171300.42 71452.03 182359.17

ii) Other Income 2.11 27310.80 23208.51Total Revenue (i + ii) 198611.22 205567.68

B. Expenses :TechnicalAssistance/Sub-Contracts 2.12 32976.69 43220.69ConstructionMaterials&Equipments 2.13 25371.43 19244.40EmployeeBenefitsExpense 2.14 59194.89 59781.46Depreciation&AmortizationExpense 2.15 1962.74 1454.67Other Expenses : 2.16Facilities 2.16 (a) 5736.40 5002.12Corporate Costs 2.16 (b) 2406.79 3418.89Other Costs 2.16 (c) 23388.50 3365.57Total Expenses 151037.44 135487.80

Profit for the Year (A-B) 47573.78 70079.88Less:PriorPeriodAdjustments(Net) 2.34 818.15 277.07

Profit Before Tax 46755.63 69802.81Less: Tax ExpenseCurrent Tax 15923.60 21374.82Deferred Tax 2.33 (90.19) 550.06

30922.22 47877.93Less : Prior Period Tax Adjustments(net) :

Current Tax 124.58 (98.42)

Profit After Tax 30797.64 47976.35Earning Per Share (Face value ` 5/- per share ): 2.37Basic (In ` ) 9.14 14.24Diluted ( In ` ) 9.14 14.24

Significant Accounting Policies and Notes to Accounts 1 & 2



PAN:AAGPG5991E



DIN:00165092





Statement of Profit & Loss FORTHEYEARENDED31STMARCH,2015


106


` in lakhs


` in lakhsA) Cash Flow from Operating Activities

NetProfitBeforeTaxandPriorPeriodAdjustments a 47573.78 70079.88Add:

i) Adjustment For:DepreciationandAmortization 1992.78 1481.21FixedAssetsWrittenOff 4.31 18.03ProvisionforDiminutioninValueofInvestmentinJointVentures 64.38 111.01ProvisionforlossesofJointVentures 46.65 0.00ExchangeGainonRepatriationofpartcapitalofJointVenture (135.95) 0.00(Profit)/LossonSaleofFixedAssets (12.39) (1.53)

ii) Other Income:Interest Income (19,271.22) (18,095.43)ShareofProfitonTradeInvestment (59.43) (56.47)CapitalGainonRedemptionofInvestmentinMutualFunds (6,719.82) (3,872.76)Dividend Income (676.95) (558.91)

b (24,767.64) (20,974.85)OperatingProfitbeforeWorkingCapitalChanges c=a+b 22806.14 49105.03

iii) Adjustment For:(Increase)/DecreaseinTradeReceivables (8,296.88) (1,092.27)(Increase)/DecreaseinInventories 19.39 (18.38)(Increase)/DecreaseinLoans&AdvancesandOtherAssets (2,740.79) 7,917.13(Increase)/DecreaseinWorkinProgress 569.85 6,082.85Increase/(Decrease)inProvisionforCorporateSocialResponsibility 226.90 — Increase/(Decrease)inLiabilities/Provisions 9,935.13 (32,496.24)

d (286.40) (19,606.91)CashGeneratedfromOperations e=c+d 22,519.74 29,498.12Less: Tax Paid f 15,742.77 20,912.64CashFlowBeforePriorPeriodAdjustments g=e-f 6,776.97 8,585.48Prior Period Adjustments h (818.15) (277.07)Net Cash Flow from Operating Activities i=g+h 5,958.82 8,308.41

B) Cash Flow from Investing ActivitiesPaymentsTowardsCapitalExpenditure (6,308.06) (8,185.56)Sale of Fixed Assets 15.20 8.16Interest Received 18,324.27 19,559.94Dividend Received 676.95 558.91RedemptionofInvestmentinFixedMaturityPlansofMutualFunds 78,619.82 44,672.76Purchase of Investment in Fixed Maturity Plans of Mutual Funds (12,400.00) (49,200.00)FixedDepositPlacedwithBankshavingOriginalMaturityofMorethan Three Months

(240,893.79)

(261,191.84)

FixedDepositwithBanksMaturedhavingOriginalMaturityofMorethan Three Months

179,968.79 270,664.08

InvestmentinJointVentures (244.00) — DivestmentinJointVenture 495.35 — Net Cash Flow from Investing Activities j 18,254.53 16,886.45

Cash Flow StatementFORTHEYEARENDED31STMARCH,2015


107


` in lakhs


` in lakhs

C) Cash Flow from Financing Activities

DividendPayment(IncludingDividendTax) (11,791.98) (11,791.98)

InterimDividendPayment(IncludingDividendTax) (12,089.14) (13,762.97)

Net Cash Flow from Financing Activities k (23,881.12) (25,554.95)

Increase/ (Decrease) in Cash & Cash Equivalents i+j+k 332.23 (360.09)

Cash&CashEquivalentsattheBeginningofthePeriod 922.62 1,282.71

Cash&CashEquivalentsattheCloseofthePeriod 1,254.85 922.62

Increase/ (Decrease) in Cash and Cash Equivalents 332.23 (360.09)

NOTES:

1 The Cash Flow statement has been prepared under the "IndirectMethod" as set out in Accounting Standard - 3 "Cash FlowStatements".

2 Cash&CashEquivalentsrepresents:

i) CashandStampsinHands 9.13 38.33

ii) BalancewithBanksinCurrentAccount 1232.57 709.29

iii) RemittanceinTransit 13.15 0.00

iv) Balance with Banks in Deposit Account having OriginalMaturity of Three Months or Less

0.00 175.0

Total 1254.85 922.62



PAN:AAGPG5991E



DIN:00165092





Cash Flow Statement (Cont.)FORTHEYEARENDED31STMARCH,2015


108

Significant Accounting Policies and Notes to Accounts 1) Significant Accounting Policies

1.1 ACCOUNTING CONCEPTS

Theaccountsarepreparedonhistoricalcostconceptbasedonaccrualmethodofaccountingasagoingconcern,consistentwithgenerallyacceptedaccountingprinciplesinaccordancewiththemandatoryaccountingstandardsanddisclosurerequirementsaspertheprovisionsoftheCompaniesAct,2013.

1.2 REVENUE RECOGNITION

(A) Revenue from services rendered is accounted for:

(a) Inthecaseofcostplusjobs,onthebasisofamountbillableunderthecontracts;

(b) Inthecaseoflumpsumservicesandturnkeycontracts,asproportionofactualdirectcostsoftheworktolatestestimatedtotaldirectcostofthework;and

(c) Inthecaseofinspectioncontractsprovidingforapercentagefeeonequipment/projectcost,onthebasisofphysicalprogressdulycertified.

(B) Otherclaimsincludinginterestonoutstandingsareaccountedforwhenthereisvirtualcertaintyofultimatecollection.

1.3 TURNOVER/WORK-IN-PROGRESS

(A) No income has been taken into account on jobs for which:

a) ThetermsofremunerationreceivablebytheCompanyhavenotbeensettledand/orscopeofworkhasnotbeenclearlydefinedand,therefore,itisnotpossibleintheabsenceofsettledtermstodeterminewhetherthereisaprofitorlossonsuchjobs.However,incaseswhereminimumundisputedtermshavebeenagreedtobytheclients,incomehasbeenaccountedforonthebasisofsuchundisputedtermsthoughthefinaltermsarestilltobesettled.

b) Thetermshavebeenagreedtoatlumpsumservices/turnkeycontractsandoutcomeofjobcannotbeestimatedreliably.

(B) TheCostofsuchjobsasstatedin‘A’aboveiscarriedforwardaswork-in-progressatactualdirectcost.

1.4 CASH & CASH EQUIVALENT

i) Cashcomprisescashonhandanddemanddepositsi.e.balancesheldwithbanksincurrentaccountsforunrestrictiveuse;

ii) Cashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.Thecompanyconsidersunrestrictivetimedepositswithbankshavinganoriginalmaturity of three months or less as cash equivalent.

1.5 FIXED ASSETS

a) FixedAssetsarestatedatcostofacquisitionorconstructionlessaccumulateddepreciation.Costofacquisitionisinclusiveoffreight,duties,taxesandotherincidentalexpenses.

b) The cost of any softwarepurchased initially alongwith the computer hardware is being capitalised alongwith the cost of thehardware.Anysubsequentacquisition/upgradationofsoftwareisbeingcapitalizedasanintangibleasset.

c) Wheneveranynewofficespaceisacquiredandpartitions/fixturesandfittingsareprovidedtomakeitsuitableforuse,theexpenditureonthesameiscapitalisedanddepreciationchargedasperPara1.6(a)below.Allexpenditureonsubsequentmodificationsandrepairsofpartitions/fixturesandfittingsarechargedtorevenueintheyearitisincurred.

1.6 DEPRECIATION & AMORTIZATION

a) DepreciationonfixedassetsischargedonstraightlinemethodeitheronthebasisofratesarrivedatwithreferencetotheusefullifeoftheassetsevaluatedbytheCommitteeconsistingofTechnicalexpertsandapprovedbytheManagementorratesarrivedatbasedonusefullifeprescribedunderPartCofScheduleIIoftheCompaniesAct,2013,whicheverishigher.

b) Nodepreciationhasbeenprovidedinthecaseoflandwhichisonperpetualleaseorwherenoleasedeedshavebeenexecuted.Premiumpaidonlandwhereleaseagreementshavebeenexecutedarewrittenoffovertheperiodofleaseproportionately.

c) The costof capitalized software is amortizedover aperiodof three years from thedateof its acquisition. However, softwareindividuallycostingupto`5lakhsisfullyamortizedduringtheyearofitsacquisition.

d) 100%depreciationisprovidedonlibrarybooksintheyearofpurchasesinceindividualbooksarelowvalueitems.

e) Assetsindividuallycostinglessthan`5,000arefullydepreciatedintheyearofacquisition.

1.7 IMPAIRMENT OF ASSETS

Impairmentofcashgeneratingassetsarereviewedforimpairmentwheneveraneventorchangesincircumstancesindicatethatcarryingamountofsuchassetsmaynotberecoverable.Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognizedismeasured


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bytheamountbywhichthecarryingamountoftheassetsexceedsthefairvalueofassets.IfitisfoundthatsomeoftheimpairmentlossesalreadyrecognizedneedstobereversedthesamearerecognizedinthestatementofProfit&LossAccountintheyearofreversal.

1.8 INVENTORIES

Inventoriesinrespectofstores,sparesandchemicalsetc.arevaluedatcostornetrealisablevaluewhicheverisless.Costisdeterminedon“FirstIn,FirstOut”basis.

1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisionsareliabilitiesinvolvingsubstantialdegreeofestimationarerecognizedwhenthereisapresentobligationasaresultofpasteventhavingprobabilityofoutflowof resourcesanda reliableestimatecanbemadeof suchanobligation.Contingent liabilitiesaredisclosedbywayofnoteunlessthepossibilityofoutflowisremote.Contingentassetsareneitherrecognizednordisclosedinthefinancialstatements.

1.10 PROVISION FOR CONTRACTUAL OBLIGATIONS

Theprovisionforestimatedliabilitiesonaccountofguarantees&warrantiesetc.inrespectoflumpsumservicesandturnkeycontractsawardedtotheCompanyarebeingmadeonthebasisofmanagement’sassessmentofriskandconsequentialprobableliabilitiesoneachsuch job.

1.11 FOREIGN CURRENCY TRANSACTIONS

a) Fixedassetsareincorporatedattheratesinforcewhentransactiontakesplace.

b) CurrentAssetsandCurrentLiabilitiesincludingCashandBankbalancesarecarriedattheyearendexchangerates.AnygainorlossonaccountofexchangedifferenceischargedtotheProfit&LossAccount.

c) Foreign currency transactions (Income & Expenditure) are accounted for at averagemonthly rates based onmarket rates forprecedingmonthinrespectofPoundSterling,USDollars,Euro,AustralianDollar,CanadianDollar,SwissFranc&JapaneseYenandin respectofothercurrenciesatGovernmentratesprevailing in themonth.Payments tosub-contractors/vendors fromForeignCurrency(FCN)accountarerecordedatbankrateprevailingonthedateoftransaction.

d) Premium/discountarisingattheinceptionoftheforwardcontractsenteredintotohedgetheforeigncurrencyrisksareamortizedasexpense/incomeoverthelifeofthecontract.Outstandingforwardcontractsasatreportingdatearerestatedattheexchangerateprevailing on that date.

1.12 RESEARCH AND DEVELOPMENT EXPENDITURE/GOVERNMENT GRANT

(a) RevenueexpenditureonResearchandDevelopmentischargedtoProfitandLossAccountintheyeartheexpenditureisincurred.CapitalExpenditureonResearchandDevelopmentiscapitalizedunderrespectivefixedassets.

(b) GovernmentgrantofcapitalnatureforpromotionandsettingupofR&DCentreistreatedasCapitalReserveandshownseparatelyunder Reserves and Surplus.

(c) Governmentgrantagainstspecificfixedassetisdeductedfromthegrossvalueoftheconcernedasset.

(d) FundsreceivedfromGovernmentAgencies tocarryoutResearchandDevelopmentactivitiesareshownundertheHead ‘otherincome’asadjustmentagainstexpenditureincurred.Unutilisedfundsareshownunderotherliabilities.

1.13 RETIREMENT/OTHER LONG TERM EMPLOYEE BENEFITS

a) LiabilityinrespectofGratuity,adefinedbenefitplan,isbeingpaidtoafundmaintainedbyLICandadministeredthroughaseparateirrevocabletrustsetupbythecompany.DifferencebetweenthefundbalanceandaccruedliabilityattheendoftheyearbasedonactuarialvaluationischargedtoProfit&LossAccount.

b) Liabilitytowardscarriedforwardleaveandpostretirementmedicalbenefits,beingdefinedbenefitplans,ispaidtoafundmaintainedbyLICanddifferencebetweenthefundbalanceandaccruedliabilityattheendoftheyearbasedonactuarialvaluationischargedtoProfit&LossAccount.

c) ContributionswithrespecttoProvidentFund,adefinedcontributionplan,aremadetothetrustset-upbytheCompanyforthepurpose.

d) ContributionwithrespecttoSuperannuationScheme,adefinedcontributionplanforemployeesispaidtoafundmaintainedbytheLifeInsuranceCorporationofIndiaandadministeredthroughseparateirrecoverableTrustsetupbytheCompany.

e) Liabilityinrespectofotherlongterm/terminalemployeebenefits,beingdefinedbenefitplans,isrecognizedonthebasisofactuarialvaluation.

f) VoluntaryretirementexpensesarechargedtoProfit&LossAccountintheyearofitsincurrence.

1.14 OPERATING LEASES

i) Assetsacquiredonleaseswhereasignificantportionofriskandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Leaserentalarechargedtostatementofprofitandlossonaccrualbasis.

ii) Assetsleasedoutunderoperatingleasesarecapitalized.Rentalincomeisrecognizedonaccrualbasisovertheleaseterm.


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1.15 Expenses/Income booked to Profit and Loss Account are after adjustment of excess/short provisions. However, in cases of specificprovisionswherenoexpenses/incomehasbeenincurred/receivedagainstsuchprovisions,thesameareadjustedasexcessprovisionsofpreviousyearswrittenback/Miscellaneousincome.

1.16 DividendonUnits/Sharesisaccountedforondeclarationmadeuptothecloseoftheaccountingyear.Incomedistributed/undistributedsurplusoninvestmentinanAOPisrecognisedasincomeasperintimationreceived.

1.17 TAXES ON INCOME

Currenttaxisdeterminedastheamountoftaxpayableinrespectoftaxableincomefortheperiod.Deferredtaxisrecognizedontimingdifference,beingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.DeferredTaxAssetisrecognizedonlytotheextentthatthereisareasonablecertaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredassetscanberealised.

1.18 INVESTMENT

Long-terminvestmentsarecarriedatcost.However,whenthereisadecline,otherthantemporary,inthevalueofalong-terminvestment,the carrying amount is reduced to recognise the decline.

CurrentInvestmentsi.e.investmentswhichareintendedtobeheldfornotmorethantwelvemonthsfromthedateofinvestmentarecarriedatthelowerofcostormarketvalue.

1.19 OIL & GAS EXPLORATION ACTIVITIES

A) TheCompanyfollows‘SuccessfulEffortsMethod’inaccountingforOil&Gasexplorationandproductionactivitiesasdetailedbelow:

a) Surveycostsarechargedasexpenseintheyearofitsincurrence.

b) Acquisitioncosts,costofincomplete/undecidedexploratorywellsanddevelopmentcostsarecarriedascapitalworkinprogresstilltheseareeithertransferredtoproducingpropertiesoncompletionorexpensedintheyearwhendeterminedtobedryasthecasemay be.

B) TheCompany’sshareofprovedoilandgasreservesaredisclosedwhennotifiedbytheoperatoroftherelevantblock.

C) TheCompany’sproportionateshareintheassets,liabilities,incomeandexpenditureofjointlycontrolledassetsareaccountedforaspertheparticipatinginterest.


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2) Notes to accounts for the year ended 31st March, 20152.1) Share Capital :The company at present is having only one class of share capital i.e. equity share capital. The requisite disclosure in respect of share capital are as under :


` in lakhs


` in lakhsAuthorised600,000,000EquitysharesofParValueof`5each(PreviousYear: 30000.00 30000.00600,000,000EquitysharesofParValueof`5each)

Issued 337,017,600EquitysharesofParValueof`5each(Previousyear: 16850.88 16850.88337,017,600EquitysharesofParValueof`5each)

Subscribed and Paid up336,936,600EquitysharesofParValueof`5each(PreviousYear: 16846.83 16846.83336,936,600EquitysharesofParValueof`5each)fullypaidup

Add: Forfeited Shares 0.01 0.01Amountoriginallypaidupon2,600EquitysharesofParValueof `5each(PreviousYear:2,600equitysharesofParValueof`5each) 16846.84 16846.84

Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period :

Year ended 31st March, 2015


No. of shares outstanding at the beginning of the period 336936600 336936600No. of shares outstanding at the close of the period 336936600 336936600

Rights, Preferences and Restrictions attaching to Equity SharesTheCompanyishavingoneClassofEquityShareshavingaParValueof`5each.EachShareholderiseligibleforonevoteperShareheld.TheDividendproposedbyBoardofDirectors issubjecttotheapprovalofShareholders intheensuingAnnualGeneralMeetingexcept incaseofInterimDividend.IntheeventofLiquidation,EquityShareholdersareeligibletoreceivetheremainingassetsoftheCompanyafterdistributionofallPreferentialamountinproportiontotheirShareholding.

Details of each Shareholder holding more than 5 percent shares

Name of the shareholder Number of shares held as at

31st March, 2015

Number of shares held as at

31st March, 2014President of India 233727299 233727299

69.37% 69.37%

Other disclosures


` in lakhs


` in lakhsAggregate number of equity shares having par value of `5/-each 224624400 224624400allottedasfullypaidupbywayofbonusshareduringtheperiodof fiveyearsimmediatelyprecedingtheBalancesheetdate


112

2.2) Reserves & Surplus :TheClassificationofReserves&SurplusdisclosingthereinAppropriation/Allocation/Transfersisdetailedasunder:


` in lakhs


` in lakhsA. General ReserveBalance as per lastBalance sheet 226308.64 204495.90Less:Adjustmentforadditionaldepreciation(netofdeferredtax)intermsofScheduleIIoftheCompaniesAct,2013forassetswhoseusefullifeason1-4-2014isNil 34.77 0.00Add:TransferredfromProfitandLossAccount 10669.23 236943.10 236943.10 21812.74 226308.64 226308.64

B. Profit & Loss AccountBalance as per lastBalance sheet 0.00 0.00Add: Transferred from Statement ofProfitandLoss 30797.64 47976.35Add: Transferred from CSRActivityReserve 1681.90 32479.54 648.49 48624.84

Less:Appropriations:Interim Dividend 10108.10 11792.78Proposed Final Dividend 6738.73 10108.10TaxonInterim/ProposedDividend 3301.99 3654.07TransfertoCSRActivityReserve 1661.49 1257.15TransfertoGeneralReserve 10669.23 32479.54 0.00 21812.74 48624.84 0.00

C. CSR Activity ReserveBalance as per lastBalance sheet 2820.56 2211.90Less:TransfertoProfitandLossAccount 1681.90 648.49

1138.66 1563.41Add:TransferredfromProfitandLossAccount 1661.49 2800.15 2800.15 1257.15 2820.56 2820.56

D. Capital ReserveCapitalGrantReceivedfromOilIndustryDevelopmentBoardforR&DCentre

200.00 200.00

239943.25 229329.20

2.3) Non- Current Liabilities :TheDisclosureofNon-CurrentLiabilitiesIncludingtheirsub-Classificationintomajorheadsisgivenasunder:


` in lakhs


` in lakhs2.3 (A) Other Long Term Liabilities :SecurityDeposits&Retentions 78.28 75.72 Advances Received from Clients 143.51 107.59

221.79 183.31

2.3 (B) Long Term Provisions :Employees'PostRetirement/LongTermBenefits 1746.82 2009.24

1746.82 2009.24


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2.4) Current Liabilities :TheDisclosureofCurrentLiabilitiesIncludingtheirsub-Classificationintomajorheadsisgivenasunder:


` in lakhs


` in lakhs2.4 (A) Trade Payables 24655.80 28210.46

24655.80 28210.46

2.4 (B) Other Current Liabilities :SecurityDeposits&Retentions 21049.73 22476.37Advances Received from Clients 4917.36 1800.94IncomeReceivedinAdvance* 21485.22 19499.66Capital Creditors 1279.77 1821.76Service Tax Payable 188.88 280.41UnpaidDividend** 92.95 94.19Other Payables :-WithholdingforEmployeesincludingEmployersContribution 1122.30 1019.70-WithholdingforIncomeTaxes 2749.61 1909.10-AccruedEmployeesBenefits 2190.47 2507.83-AmountheldonbehalfofClients 2066.73 2823.68-Others 926.34 9055.45 85.90 8346.21

58069.36 54319.54

*RepresentsGrossamountduetoCustomerforContractWorkintermsofAccountingStandard(AS-7)"ConstructionContracts"**ExcludingamountdueforpaymenttoInvestorEducationAndProtectionFund

2.4 (C) Short Term Provisions :

Employees'PostRetirement/LongTermBenefits 3663.31 4258.15ContractualObligations 27906.45 25440.86Expectedlosses 7551.16 0.00ProvisionforlossesofJointVenture 46.65 0.00Provision for Corporate Social Responsibility 226.90 0.00ProvisionforTaxation 15947.00 21385.32Less: Advance Income Tax 13290.34 2656.66 18733.26 2652.06Proposed Dividend 6738.73 10108.10Tax on Dividend 1320.95 1683.88

50110.81 44143.05


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2.5) Fixed Assets(`inLakhs)

PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK

AS ON31st March,

2014

ADD.FOR YR.

SOLD/RECL/TRNS/ADJ.

AS ON31st March,

2015

DEP UPTO31st March,

2014

DEP FOR YEAR

DEP WRTN.BACK

TOT.DEP.31st March,

2015

WDV AS ON31st March,

2015

WDV AS ON

31st March, 2014

Tangible Assets:

Land Freehold 298.08 0.00 0.00 298.08 0.00 0.00 0.00 0.00 298.08 298.08

Land Leasehold 1611.55 0.00 0.00 1611.55 45.87 13.90 0.00 59.77 1551.78 1565.68

Building 10545.46 14678.25 54.34 25169.37 2856.52 783.38 51.89 3588.01 21581.36 7688.94

Plant&Machinery

1087.81 0.00 0.00 1087.81 1044.27 0.00 0.00 1044.27 43.54 43.54

Furniture,Fixtures And Office/Constn.Equipment

2535.24 1109.24 2.97 3641.51 1851.17 212.10 1.71 2061.56 1579.95 684.07

Computer Hardware

6324.24 1247.86 79.21 7492.89 5144.44 708.03 75.81 5776.66 1716.23 1179.80

Motor Vehicles 9.10 0.00 0.00 9.10 8.77 0.00 0.00 8.77 0.33 0.33

Library Books 489.87 1.83 0.03 491.67 489.87 1.83 0.03 491.67 0.00 0.00

Less: Assets held for disposal

442.87 430.87 12.00 0.00

Total Tangible Assets

22901.35 17037.18 136.55 39359.11 11440.91 1719.24 129.44 12599.84 26759.27 11460.44

Intangible Assets:

Computer Software

4342.63 207.43 0.00 4550.06 4012.95 326.21 0.00 4339.16 210.90 329.68

Total Intangible Assets

4342.63 207.43 0.00 4550.06 4012.95 326.21 0.00 4339.16 210.90 329.68

TOTAL 27243.98 17244.61 136.55 43909.17 15453.86 2045.45 129.44 16939.00 26970.17 11790.12

Previous Year 19357.10 8250.12 363.24 27243.98 14311.35 1481.21 338.70 15453.86 11790.12 5045.75

Capitalworkinprogress

1911.20 13176.15

Depreciationfortheyearincludes:

a) Priorperioddepreciationof`30.04Lakhs(PreviousYear:`26.54Lakhs)

b) Additionaldepreciationof`52.67LakhsadjustedfromGeneralReserveintermsofScheduleIIoftheCompanisAct,2013forassetswhoseusefulremaininglifeason1-4-2014isNil.


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2.6) Non Current Investments :TheClassificationofNonCurrentInvestments(LongTerm)intodifferentcategorieswithrequisitedetailsisgivenasunder:


` in lakhs


` in lakhs I. Trade (At Cost) Unquoted Investment in Association of Persons (AOP):CapitalContributioninPetroleumIndiaInternational 500.00 500.00

Share in Accumulated Surplus of 827.88 1327.88 768.45 1268.45PetroleumIndiaInternational

TOTAL (a) 1327.88 1268.45

OtherMemberCompaniesare:BharatPetroleumCorporationLtd,HindustanPetroleumCorporationLimited,IndianOilCorporationLimited,IndianPetrochemicalCorporationLimited,ChennaiPetroleumCorporationLimitedandOilIndiaLimited.OilandNaturalGasCorporationofIndiaLimitedwasmembertillJune,2001.

TotalCapitalofPetroleumIndiaInternationalis`5500.00LakhsandEIL'sshareinCapitalofAOPis`500.00Lakhs.

DetailsofshareinaccumulatedsurplusforinvestmentinPetroleumIndiaInternational,anassociationofpersoninwhichtheCompanyisamember,basedonlastavailableannualauditedaccountsforthefinancialyear2013-14andamountreceivedduringthecurrentyearisasunder :

(`inLakhs)

Balance as on 1st April, 2014 Share of Profit accounted during year 2014-15

Amount received during the year 2014-15

Balance as on 31st March, 2015

768.45 59.43 0.00 827.88PetroleumIndiaInternationalduringfinancialyear2010-11hasceaseditsbusinessactivitiesandisinprocessofdissolution.

II. Other Than Trade Unquoted (At cost less diminution in value other than temporary)

Investment in Subsidiary Companies 1) Eil Asia Pacific Sdn Bhd Malaysia2,50,000OrdinarysharesofRM1eachfullypaidupinwhollyownedsubsidiarycompany,outofwhich 3.04 3.042,25,000EquityshareswerereceivedbywayofBonusshares

2) Certification Engineers International Limited1,00,000EquityShares@`100eachfullypaidupinwhollyownedsubsidiarycompany,outofwhich80,000equityshares 20.00 20.00werereceivedbywayofBonusshares

Investment in Joint Venture Companies 1) TEIL Projects Limited49,99,997Equitysharesof`10eachfullypaidup 500.00 500.00Less:Provisionfordiminutioninvalueofinvestment 500.00 0.00 481.12 18.88

2) Jabal Eiliot Co. Ltd.500,000sharesofSR10eachfullypaidup 599.00 599.00Less:HistoricalcostofpartrepatriatedcapitalofSR30Lakhs 359.40 0.00Less:Provisionfordiminutioninvalueofinvestment 195.56 44.04 150.06 448.94

3) Ramagundam Fertilizers and Chemicals Limited2440004sharesof`10eachfullypaidup 244.00 0.00

TOTAL (b) 311.08 490.86

TOTAL (a+b) 1638.96 1759.31

AggregateValueofUnquotedInvestments-GrossBookValue 2334.52 2390.49AggregateProvisionfordiminutioninvalueofinvestments 695.56 631.18


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2.7) Long Term Loans & Advances :ThedetailsofLongtermsLoans&Advancesclassifiedunderdifferentheadsisdisclosedhereunder:


` in lakhs


` in lakhsa) Capital Advances - Unsecured (Considered Good) 314.00 527.59

b) Security Deposit :Unsecured-ConsideredGood 108.12 164.54

c) Loans & Advances to Related Parties :Secured-Considered Good:Directors 0.00 2.23Unsecured-Considered Good:Directors 0.00 0.79Others 6.09 6.09 6.57 7.36

d) Other Loans and Advances(AdvancesRecoverableinCashorinKindorforvaluetobereceived):Secured-Considered Good:Employees 1754.93 1946.00Unsecured-Considered Good:Employees 2039.57 1925.78Others 16.33 2055.90 9.53 1935.31

Advance Income Tax 50254.84 61050.11Less:ProvisionforTaxation 49876.29 378.55 60486.07 564.04

AdvanceFringeBenefitTax 3.50 0.004621.09 5147.07

2.8) Other Non Current Assets :DetailsofotherNon-CurrentAssetsClassifiedunderdifferentheadsisdisclosedhereunder:


` in lakhs


` in lakhsBank Balances :Non-CurrentBankDeposits 58.14 48.31

Total (A) 58.14 48.31The above includes Bank Deposits `58.14Lakhs(PreviousYear:`48.31Lakhs)heldasMarginMoney/SecurityagainstBankGurantees.


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2.9) Current Assets :ThedetailsofCurrentAssetsClassifiedunderdifferentheadsisgivenasbelow:


` in lakhs


` in lakhs2.9 (A) Current Investments:1) Current Maturity of Long Term Investments - (At Cost Less Diminution in Value Other than Temporary)

Other than TradeQuotedInvestment In units of Fixed Maturity Plan of Mutual FundsNo. of UnitsNil SBIDebtFundSeries-366Days-25- 0.00 15000.00(PreviousYear:150000000) GrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXIV-VIII(371Days) 0.00 9000.00(PreviousYear:90000000) DirectGrowthPlanof`10Each

Nil SBIDebtFundSeries-366Days34- 0.00 6000.00(PreviousYear:60000000) GrowthPlanof`10Each

Nil IDBIFMP-SeriesIII-366Days-(July2013)-G 0.00 2000.00(PreviousYear:20000000) DirectPlanGrowthof`10Each

Nil UTIFixedTermIncomeFundSeriesXV-X(368Days) 0.00 2900.00(PreviousYear:29000000) DirectGrowthPlanof`10Each



Nil UTIFixedTermIncomeFundSeriesXVII-XX(369Days) 0.00 5700.00(PreviousYear:57000000) DirectGrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXVIII-III(367Days) 0.00 3025.00(PreviousYear:30250000) DirectGrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXVIII-IV(366Days) 0.00 4200.00(PreviousYear:42000000) DirectGrowthPlanof`10Each

Nil IDBIFMP-SeriesIV-368Days-(February2014)-C 0.00 700.00(PreviousYear:7000000) DirectPlanGrowthof`10Each

Nil SBIDebtFundSeries-A12-366Days 0.00 7500.00(PreviousYear:75000000) DirectGrowthPlanof`10Each



45000000 UTIFixedTermIncomeFundSeriesXVIII-V(370Days) 4500.00 0.00(PreviousYear:Nil) DirectGrowthPlanof`10Each

79000000 SBIDebtFundSeries-A17-366Days 7900.00 0.00(PreviousYear:Nil) DirectGrowthPlanof`10Each

TOTAL 12400.00 71900.00


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` in lakhs


` in lakhsAggregateValueofQuotedInvestments-BookValue 12400.00 71900.00AggregateValueofQuotedInvestments-MarketValue 13493.18 75367.36

2.9 (B) Inventories (lower of cost or net realizable value) :Stores,SparesandChemicalsinHand 81.09 100.48

81.09 100.48

2.9 (C) Trade Receivables (Unsecured)Trade Receivable Outstanding for a period exceeding six months from the date they are due for payment:ConsideredGood 13665.12 14650.07ConsideredDoubtful 4796.87 3989.17

18461.99 18639.24OtherTradeReceivable:ConsideredGood 28941.06 19659.23

47403.05 38298.47Less:ProvisionforDoubtfulDebts 4796.87 42606.18 3989.17 34309.30

2.9 (D) Cash And Bank Balances :Cash&CashEquivalents:BalanceswithBanksinCurrentAccount# 1232.57 709.29BalanceswithBanksinDepositAccounthavingoriginalmaturityof three months or less 0.00 175.00RemittanceinTransit 13.15 0.00Cash&StampsonHand# 9.13 1254.85 38.33 922.62

Other Bank Balances :Unpaid Dividend Account 92.95 94.19HeldonBehalfofClients 2066.73 2823.68BalanceswithBanksindepositsaccounthavingmaturityofmorethanthreemonthsbutaredueformaturitywithintwelvemonthsofbalancesheetdate* 233877.76 236037.44 172962.59 175880.46

237292.29 176803.08

*IncludesBankdepositshavingmorethantwelvemonthsoriginalmaturity of `32625.00Lakhs(PreviousYear:`28250.00Lakhs)#Includes`62.19Lakhs(PreviousYear:`119.43Lakhs)incurrencieswhicharenotrepatriable.


119


` in lakhs


` in lakhs2.9 (E) Short Term Loans & Advances :

a) Loans & Advances to Related Parties :Secured-Considered Good:Directors 0.59 1.28Unsecured-Considered Good:Directors 0.21 0.24Others 0.81 1.02 0.81 1.05

b) Security DepositUnsecured-ConsideredGood 204.59 103.50Unsecured-ConsideredDoubtful 0.69 0.69

205.28 104.19Less:ProvisionforDoubtfulDeposits 0.69 204.59 0.69 103.50

c) Other Loans and Advances :(AdvancesRecoverableinCashorinKindorforValuetobeReceived):Secured-Considered Good:Employees 259.69 259.57Unsecured-Considered Good:Employees 997.78 828.72PrepaidExpenses 392.06 242.93AdvancestoVendors/Contractors 5223.19 2175.15Advance Income Tax 0.00 115.32AdvanceFringeBenefitTax 0.00 3.50RetentionagainstContracts 587.74 579.35Claims Receivable 0.60 0.60Others 863.00 500.24Unsecured - Considered Doubtful :Employees 1.36 1.36AdvancestoVendors/Contractors 2.58 2.58Claims Receivable 286.30 286.30

8614.30 4995.62Less:ProvisionforDoubtfulLoans&Advances 290.24 8324.06 290.24 4705.38

TOTAL (a+b+c) 8530.26 4811.21

2.9 (F) Other Current Assets :

WorkInProgress* 48.87 618.72Fixed asset held for disposal 12.00 0.00Interest Accrued on Current Bank Deposits 4968.18 3916.33UnbilledRevenue** 27261.48 27574.89

32290.53 32109.94

*Astaken,valuedandcertifiedbythemanagement**RepresentsGrossamountduefromCustomerforContractWorkintermsofAccountingStandard(AS-7)"ConstructionContracts"


120

2.10) Revenue from Operations :ThedetailsofRevenuefromoperationsfordifferentcomponentsofrevenueisdetailedasbelow:


` in lakhs


` in lakhsA) Consultancy & Engineering Services 95411.53 116989.99

95411.53 116989.99

B) Turnkey Projects 76458.74 71452.0376458.74 71452.03

Total (A+B) 171870.27 188442.02Increase/(Decrease) in Work-in-ProgressA) Consultancy & Engineering ServicesClosingWork-in-Progress 4.50 618.72Less:OpeningWork-in-Progress 618.72 (614.22) 6701.57 (6,082.85)

B) Turnkey ProjectsClosingWork-in-Progress 44.37 0.00Less:OpeningWork-in-Progress 0.00 44.37 (569.85) 0.00 — (6,082.85)

2.11) Other IncomeThe details of other Income into various categories is disclosed hereunder:


` in lakhs


` in lakhsInterest Earned (Gross) :Bank deposits 18565.75 17564.10LoanstoEmployees 161.97 163.65Others 543.50 367.68

19271.22 18095.43

Income from Long Term Investments:ShareofProfitfromAOP(TradeInvestment) 59.43 56.47Dividend income from Subsidiary Company 400.00 400.00

Dividend Income from Current Investments 276.95 158.91CapitalGainonredemptionofInvestmentsinMutual Funds

6719.82 3872.76

Funds recd. for expenditureagainstR&D 189.47 378.35Less:Utilisation (189.47) — (378.35) — ProfitonSaleofAssets 12.49 3.52Miscellaneous Income 570.89 621.42

8039.58 27310.80 5113.08 23208.51


121


` in lakhs


` in lakhs

Expenses :The Details of expenses under various heads as per their nature is as givenbelow:

2.12) Technical Assistance/Sub Contracts 32976.69 43220.69

2.13) Construction Materials & Equipments 25371.43 19244.40

2.14) Employee Benefits Expense : Salaries and Allowances @Staff 45399.65 47016.98 Directors 271.94 45671.59 199.97 47216.95

Contribution towards Employees` Pension and Provident Fund & Administration Charges thereon:Staff 3842.41 3687.13 Directors 13.59 3856.00 13.02 3700.15

Contribution towards Employees` Defined Contributory Superannuation Scheme:Staff 4830.06 4054.31 Directors 17.36 4847.42 14.55 4068.86

Staff WelfareStaff 4160.79 4426.02 Directors 4.69 4165.48 4.41 4430.43

ContributiontoGratuityFund* 657.90 365.07Less:ContributionreceivedfromOthers 3.50 654.40 0.00 365.07

59194.89 59781.46@SalariesandAllowancesIncludes:a)ProvisionforBonusof`0.08Lakhs(PreviousYear:`0.08Lakhs).b)`1827.23Lakhs(PreviousYear:`2783.74Lakhs)onaccountofLeaveEncashmentFundedSchemewithLICofIndia.*IncludesTermInsurancePremiumpaidtoLICofIndia.

2.15) Depreciation & Amortization Expense


` in lakhs


` in lakhsDepreciation&AmortizationExpense 1962.74 1454.67

1962.74 1454.67


122

2.16) Other Expenses :


` in lakhs


` in lakhs2.16 (a) Facilities :

Rent :Office 548.16 495.75

ResidentialAccommodationStaff 1053.56 889.28 Directors 10.41 1063.97 14.70 903.98Less:Recovered-Staff 152.61 130.68-Directors 1.66 154.27 909.70 2.44 133.12 770.86

Light,Water&Power 1189.02 979.51 Insurance 557.10 314.80Misc.Repairs&Maintenance* 2512.14 2406.76HireChargesofOfficeEquipments 20.28 34.44

5736.40 5002.12

2.16 (b) Corporate Cost : Bank Charges 165.80 129.03SittingFeestoIndependentDirectors 11.70 8.46 Interest 23.16 6.53AdvertismentforTender&Recruitment 706.44 861.43 Publicity 222.14 573.84Subscription 147.74 113.98Entertainment 244.07 247.91ForeignExchangeDifference(net)** 224.17 575.64RemunerationtoAuditors: For Audit 7.80 7.00 For Tax Audit 1.65 1.50 Out of Pocket 1.05 0.96 Others 5.43 15.93 11.15 20.61 Filing Fee 1.16 0.91Legal&ProfessionalCharges 383.37 487.58Licences&Taxes 256.70 372.95 Loss on Sale of Assets 0.10 1.99FixedAssetsWrittenoff 4.31 18.03

2406.79 3418.89

*Includes`108.10Lakhs(PreviousYear:`218.03Lakhs)forrepairs&maintenanceofownbuildingand`180.46Lakhs(PreviousYear:`289.98Lakhs)forPlant&Machinery.**Includes`135.95Lakhs(PreviousYear:Nil)towardsexchangegainonrepatriationofJointVenture'spartcapital.


123


` in lakhs


` in lakhs2.16 (c ) Other CostsConsumables/Stores/EquipmentR&DCentre 270.16 257.88

Travel&ConveyanceDirectors@ 70.55 70.44 Others 8028.11 8098.66 6820.76 6891.20

Printing,Stationery&GeneralOfficeSupplies 427.70 403.09

NewspapersandPeriodicals 69.99 73.94

Postage&Telecommunications 609.06 524.26

Courier,Transportation&Handling 53.85 44.98

Commission to Foreign Agents 434.24 219.63

ProvisionforDoubtfulDebts&Advances(net) 807.70 (1,089.67)

BadDebtswrittenoff 19.76 8.33

ProvisionforContractualobligations(net) 2465.59 (5,168.59)

Provision for expected losses 7551.16 0.00

ProvisionforDiminutioninvalueofInvestmentinJointVentures 64.38 111.01

ProvisionforlossesofJointVentures 46.65 0.00

TrainingExpenses Travel 67.44 34.58 Others 251.50 318.94 311.83 346.41

CSRExpenses 1681.90 648.49

ExpenditurerelatingtoOil&Gasexplorationblocks 719.98 495.31

MiscellaneousExpenses 92.48 80.5123732.20 3846.78

Less:InhouseexpenditurerelatingtoCapitalWorks 338.33 481.21 CSR 5.37 343.70 0.00 481.21

23388.50 3365.57

@Includesrecoveryof`1.52Lakhsonaccountofuseofcar(PreviousYear:`0.92lakhs)


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2.17 Contingent Liabilities and Commitmentsi) Contingent Liabilities:

a) ClaimsagainsttheCompanynotacknowledgedasdebt.

Commercialclaimsincludingemployee’sclaimspendingintheCourtsorlyingwithArbitratorsamountingto`4518.75Lakhs(Previousyear: `4130.28Lakhs).

b) IncomeTax/FringeBenefitTaxassessmentshavebeencompleteduptotheassessmentyear2012-13.IncomeTaxliability,ifany,inrespectofpendingassessmentsfortheassessmentyears2013-14and2014-15cannotbeascertainedalthoughtaxasperreturn/revisedreturnhas been paid in full.

Wealth Tax Assessments have been completed upto the Assessment Year 2012-13.Wealth Tax liability, if any, in respect of pendingassessmentsfortheAssessmentYears2013-14and2014-15cannotbeascertainedalthoughtaxonreturnedwealthhasbeenpaidinfull.

Companyhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)andotherprocessingmistakesamountingto`348.86lakhsforassessmentyears2010-11and2011-12(PreviousYear:̀ 387.52lakhsforassessmentyears2007-08,2010-11and2011-12).

Income Tax Department is in appeal for an amount of `312.55lakhswithIncomeTaxAppellateTribunalagainsttheCommissionerofIncomeTax(Appeals)OrdersinCompany’sfavourfortheAssessmentYears2002-03,2004-05and2010-11(PreviousYear:`608.44lakhsforassessmentyears2002-03and2004-05).

CompanyhasfiledanappealwithCommissionerofIncomeTax(Appeal)foranamountof`43.48LakhsagainsttheorderofAssessingOfficeru/s143(3)fortheAssessmentYear2012-13.

CompanyhasfiledanappealwithCommissionerofIncomeTax(Appeals)foranamountof̀ 0.32Lakhs(Previousyear:̀ 0.32Lakhs)againsttheorderofAssistantCommissionerofIncomeTax(TDS)u/s201(1)fortheAssessmentYear2009-10.

Companyhasfiledanappealagainstdemandofservicetax(inclusiveofpenaltyof`31.44Lakhs)for`62.87lakhs(PreviousYear:`62.87lakhs)andinterestthereonbyCommissionerofCentralExcise(Appeals)fortheperiod01.4.2002to17.4.2006beforeCustoms,ExciseandServiceTaxAppellateTribunal(CESTAT).

TheCompanyhasfiledanappealagainsttheorderofAdditionalCommissioner(Appeals),MathurabeforeSalesTaxTribunal,Agraforanamount of `132.53Lakhs(PreviousYear:`132.53lakhs)inrespectofassessmentyear1999-2000and`116.12Lakhs(PreviousYear:`116.12lakhs)forassessmentyear2000-01onaccountofsalestax.

TheCompanyhasfiledanappealagainsttheorderofAdditionalCommissioner(Appeals),MathurabeforeSalesTaxTribunal,Agraforanamount of `18.71Lakhs(PreviousYear:`18.71lakhs)onaccountofentrytaxfortheyear1999-2000andagainstwhichanamountof`5.01Lakhs(PreviousYear:`5.01lakhs)hadbeendeposited.

c) CorporateGuaranteegivenonbehalfofJointVenture`200Lakhs(Previousyear:`200Lakhs)

Inrespectofabovecontingentliabilities,itisnotprobabletoestimatethetimingofcashflow,ifany,pendingtheresolutionofArbitration/Appellate/Court/assessmentproceedings.

ii) Commitments:

Estimated amount of contracts remaining to be executedon capital account (net of advances) andnot provided for`2182.47 Lakhs(Previousyear`5050.63Lakhs).

Company’sestimatedshareinworkprogrammescommittedunderproductionsharingcontractinrespectofoil&gasexplorationblocksason31stMarch,2015is`5121.53Lakhs(Previousyear:`5583.75Lakhs).

2.18 a) Guaranteesissuedbythebanksandoutstandingason31stMarch,2015`73910.64Lakhs(Previousyear:`44825.32Lakhs),againstwhichaprovisionof`23079.59Lakhs(Previousyear:`19941.61Lakhs)hasbeenmadeinthebookstowardsliabilityforperformanceguarantees/warranties.

b) Letterofcreditoutstandingason31stMarch,2015`3599.88Lakhs(Previousyear:`419.98Lakhs).

c)CorporateGuarantees issued by the Company on its behalf for contractual performance and outstanding as on 31stMarch, 2015`22471.50Lakhs(Previousyear:`24300.50Lakhs)

2.19 Theprofit&lossaccountincludesResearch&Developmentexpenditureof`1767.94Lakhs(Previousyear:`2092.75Lakhs).

2.20 i) Land&Buildingsincludes`0.07Lakhs(Previousyear:`0.07Lakhs)beingamountinvestedassharemoneyinCooperativeHousingSocietiesasdetailedbelow:

TwintowersPremisesCooperativeSocietyLtd.,Mumbai 10ordinarysharesof`50/-eachfullypaid.

GardenviewPremisesCooperativeSocietyLtd.,Mumbai 10ordinarysharesof`50/-eachfullypaid.


125

HeeraPannaTowersCooperativeHousingSocietyLtd.,Vadodara 10ordinarysharesof`50/-eachfullypaid.

SuflamCooperativeHousingSocietyLtd.,Ahmedabad 8ordinarysharesof`250/-eachfullypaid.

DarshanCo-operativeSocietyLtd.,Vadodara 80ordinarysharesof`50/-eachfullypaid

ii) TheCompanyishavingaplotmeasuring6826.90squaremeterswiththreeBuildings,comprisingof84flatsatGOKULDHAM,GOREGAON(EAST),MUMBAI. Itwasnoticed that out of total areaof 6826.90 squaremeter, around4400 squaremeter of areaonly is in theCompany’s possession.TheCompanyhas initiated actionby filing an application for evictionunder the Public Premises (EvictionOfUnauthorisedOccupants)Act1971andproceedingthereunderareinprogress.TheCapitalizedcost&Writtendownvalueoftheabovepropertyason31st March,2015was`238.19Lakhs(PreviousYear:`238.19Lakhs)and`55.24Lakhs(PreviousYear:`60.96Lakhs)respectively.

2.21 i)TheusefullifeanddepreciationratesforfixedassetsintermsoftheAccountingPolicydefinedinNoteNo.1.6areasunder:

Sl. No.

Particulars Rates (%age) Useful Life (Years)

Sl. No.

Particulars Rates (%age)

Useful Life (Years)

1. Land Freehold Nil Perpetual 4. Plant & Machinery

2. Land Leasehold Over a lease period

except for perpetual lease Nil %age

Over a lease period

except for perpetual lease Nil %age

Plant&Machinery 8.0 12

3. Building LaboratoryEquipment 9.6 10

OfficeBuilding 2.4 40 Storage Tank 6.0 16

R&DCentre,Gurgaon 4.0 24 5. Furniture & Fixtures, Office & Construction Equipment

Window/SplitAC 15.84 6 Furniture&Fixtures 9.6 10

AC Central Plant 6.5 15 Chairs 16.0 6

Lifts 6.5 15 OfficeEquipment 19.2 5

ElectricPowerSubStation 9.6 10 ConstructionEquipment 12.0 8

Invertors 19.2 5 6. Computer Software/Hardware

Solar photovoltaic modules 9.6 10 PC/Laptop/Printer 32.43 3

Solarpowerconditioningsystem 9.6 10 Server,LAN&NetworkingComponents

19.45 5

Tubewell&Pumps 19 5 Projector,VideoConferenceEquipments

19.20 5

Fire Alarm System 6.52 15 Software 33.33* 3

FireFightingSystemChilling PlantRainHarvestingSystem

9.59.6

19.20

10105

7. Motor Vehicles 13.75 7

Building Management SystemHydraulicAccessControlSystemRoadsExternalLighting

6.56.59.69.6

15151010

8. Library Books 100 1

*Softwareindividuallycostingupto`5.00Lakhsisfullyamortizedduringtheyearofitsacquisition.

PursuanttoapplicabilityofCompaniesAct,2013fromaccountingperiodcommencingafter1April,2014,theCompanyhasadoptedthepolicyforchargingdepreciationonfixedassetsonstraightlinemethod,athigherofrates,arrivedatwithreferencetotheusefullifeoftheassetsevaluatedbytheCommitteeconsistingofTechnicalexpertsandapprovedbytheManagementorratesarrivedatbasedonusefullifeprescribedunderPartCofScheduleIIoftheCompaniesAct,2013.


126

IntermsofprovisionsofScheduleIIoftheCompaniesAct,2013,incaseanyassetwhoseusefullifehasbeencompletedason1April2014,thecarryingvalue,netofresidualvaluethereofhasbeenadjustedfromtheGeneralReserveandinothercasesadditionaldepreciationduetorevisedusefullivesoftheassetshasbeenrecognizedintheStatementofProfitandLoss.Duetoabove,theamountadjustedfromReserve(netofdeferredtax)was`34.77Lakhsandadditionaldepreciationchargeduringthecurrentfinancialyearwas`231.77Lakhs.

ii) TheCapitalworkinprogresscomprisescostoffixedassetsthatarenotyetreadyfortheirintendeduseatthebalancesheetdate,thedetailsofwhichareasunder:

(ìnLakhs)

Particulars As on 31st March, 2015 As on 31st March, 2014

Capitalexpenditureincurred/CapitalAssetsacquired,butnotyetreadyforuseatbalancesheetdate*

1911.20 13176.15

Total 1911.20 13176.15

*IncludesCapitalExpenditureof`5.11Lakhs(PreviousYear:`0.47Lakhs)relatingtoongoingOil&GasExplorationActivities.

2.22 ThereisnoimpairmentofcashgeneratingassetsduringtheyearintermsofAccountingStandard(AS-28)“ImpairmentofAssets”.

2.23 Themovementinprovisionfordoubtfuldebtsandadvancesduringtheyearisasfollows:

(ìnLakhs)

Year ended 31st March, 2015 Year ended 31st March, 2014

Opening Balance 4280.10 5369.77

Add : Amount provided during the year 1795.06 116.58

Less:Amountwrittenbackduringtheyear 987.36 1206.25

Net provision during the year 807.70 (1089.67)

Closing Balance 5087.80 4280.10

2.24 CompanyisprimarilyoperatingundertwosegmentsnamelyConsultancy&EngineeringProjectsandturnkeyProjects.ThebroadheadsunderwhichincomeofthecompanyisaccountedforasperprovisionsofAS-7(ConstructionContracts)areasunder:

(ìnLakhs)

Particulars Year ended 31st March, 2015 Year ended 31st March, 2014

Consultancy&EngineeringProjects 94797.31 110907.14

Turnkey Projects 76503.11 71452.03

Total 171300.42 182359.17

2.25 Informationregardingimports,foreignexchangeearningsandexpendituresetc.(excludingexchangedifferenceonconversionofforeigncurrency).

(ìnLakhs)

Year ended 31st March, 2015 Year ended 31st March, 2014

a) Expenditure(disbursementbasis)inforeignCurrencyonaccountof:

(i)Knowhowandprofessionalfeesincludingsubcontracts(others) 298.13 352.77

(ii)Sub-Contractor/ConstructionMaterialturnkeyprojects 4835.07 8305.38

(iii)Others(foreigntravel,livingallowancemembershipfees,agencycommission,foreignofficeexpenses)

4747.63 3394.57

b) (i) Earnings (accrual basis) in foreign exchange on account ofprofessional fees including `177.73Lakhs(Previousyear`412.03Lakhs)earnedinlocalforeigncurrencies,whicharenotrepatriabletoIndiaagainstwhich,anexpenditureof`191.49Lakhs(Previousyear: `363.23Lakhs)incurredinlocalforeigncurrencies.

22057.52 13917.41

(ii)Interestearnedinforeignexchange 0.00 0.67


127

2.26 (a) AmountpayableinForeignCurrency(Unhedged)onaccountofthefollowing:

Amount in LakhsLiabilities & Provisions

As on 31st March, 2015 As on 31st March, 2014` Foreign Currency ` Foreign Currency

433.08 AED24.72 348.38 AED20.729242.31 USD146.56 8720.80 USD144.17

9.84 KWD0.05 2.24 KWD0.01490.71 EURO7.17 701.08 EURO8.40402.84 GBP4.31 444.83 GBP4.41113.69 SWK15.47 15.17 SWK1.62157.72 JPY299.68 1322.25 JPY2239.97

0.08 OR0.00 0.08 OR0.002.20 BD0.01 5.05 BD0.030.00 AD0.00 21.99 AD27.14

(b) AmountreceivableinForeignCurrency(Unhedged)onaccountofthefollowing:

Amount in Lakhs

Assets, Loans & Advances As on 31st March, 2015 As on 31st March, 2014

` Foreign Currency ` Foreign Currency1375.71 AED82.82 1127.23 AED71.166700.57 USD107.69 564.69 USD9.51126.98 KWD0.63 20.50 KWD0.10739.58 EURO11.06 709.49 EURO8.73

3.09 BOLIVAR0.59 3.21 BOLIVAR0.327.16 GBP0.08 7.68 GBP0.080.28 LD0.01 0.28 LD0.01

82.10 AD122.54 150.08 AD185.2814.02 YUAN1.40 17.14 YUAN1.660.28 TAKA0.34 49.82 TAKA62.28

(c) ForeignCurrencyHedgedContractsoutstandingason31stMarch,2015–Nil

2.27 TheWorkingCapitalfacilitiesfromBanksaresecuredbyhypothecationofstocks,bookdebtsandothercurrentassetsoftheCompany,both present and future.

2.28 i)IntermsofprovisionofAccountingStandard(AS–7)“ConstructionContracts”,theinformationinrespectofLumpsumservices/TrunkeyProjectsforcontractinprogressason31stMarch,2015:

a. TheaggregateamountofCostincurredandrecognizedProfitupto31stMarch,2015`948988.09Lakhs(PreviousYear:`942196.15Lakhs).

b. The amount of advances received `4788.97Lakhs(PreviousYear:`1635.01Lakhs).

c. Theamountofretention`576.92Lakhs(PreviousYear:`573.57Lakhs)

ii) TheestimateswithrespecttotalcostandtotalrevenueinrespectofconstructioncontractsarereviewedandupdatedperiodicallytoascertainthepercentagecompletionforrevenuerecognitioninaccordancewithAccountingStandard(AS)-7“ConstructionContracts”.However,itisimpracticabletoquantifytheimpactofchangeinestimates.

2.29 (A)IntermsofAccountingStandard27,“FinancialReportingofInterestinJointVenturesoftheCompany”,abriefdescriptionofcompany’sjoint ventures is:

a) TEIL Projects Limited

AjointventurewithTataProjectsLimitedwasformedinthefinancialyear2008-09forpursuingprojectsonengineeringprocurementandconstructionbasis(EPCProjects)inselectedsectorssuchasoil&gas,fertilizers,steel,railways,powerandinfrastructure.

TheJointVentureCompanyformedinthisregardhavingitsRegisteredOfficeatNewDelhihasanAuthorizedcapitalof`1500Lakhs&Issued,Subscribed&Paid-upcapitalof`1000lakhs.


128

Oftheissued,subscribedandpaid-upcapital,4,999,997sharesof`10/-eachfullypaid-upamountingto`500.00lakhs(Previousyear: `500.00Lakhs)areheldbytheCompany,being50%ofpaid-upcapitalofjointventurecompany.

Till 31stMarch, 2014, the joint venture companyhad accumulated losses to the tuneof`962.25 Lakhs and the companyhadprovidedadiminutioninvalueofinvestmenttothetuneof`481.12Lakhsforitsshareoflossinitsfinancialstatementstill31st March,2014.

Duringthecurrentfinancialyear2014-15,theJointVentureCompanyhadanetlossof̀ 131.05Lakhs.Thecompany’sshareoflossesfor `65.53Lakhshasbeenprovidedforinthefinancialstatementsfortheyearending31stMarch,2015asgivenbelow:

i) afurtherdiminutioninvalueofitsinvestmenttotheextentof`18.88Lakhs;and

ii) asadditionalprovisionof`46.65Lakhsforcumulativelossesofjointventureexceedingcompany’sinvestmentof`500.00Lakhs

b) Jabal Eiliot Co. Ltd.

AjointventurewithJabalDhahranCompanyLimitedSaudiArabiaandIOTInfrastructure&EngineeringServicesLimited,Mumbaiwasformedduringthefinancialyear2011-12forexecutionofcontractsinSaudiArabiainthefieldofoil&gas,nonferrousmetallurgy,infrastructure projects etc.

The joint venture companynamely “Jabal Eiliot Co. Ltd.”was registeredwithDammamCommercial registry, Kingdomof SaudiArabia.TheJointVentureCompanyformedforpursuingitsbusinessinterestshasaninitialcapitalofSR.15000000,outofwhichonethirdi.e.5000000SR.(EquivalentIndian`599.00Lakhs)wascontributedbythecompanyasitsshare.

Till31stDecember,2013,theJointVentureCompanyhadincurredlossestothetuneofSR3757593,ofwhichtheCompany’sshareof SR1252531(equivalent Indian`150.06 Lakhs athistorical conversion rate)whichwasprovided for asdiminution in valueofinvestmentincompany’sfinancialstatementstill31stMarch,2014.

Duringyearended31stDecember,2014,theJointVentureCompanyhadanetlossofSR1139588ofwhichCompany’sshareisSR379863(equivalent`45.50Lakhsathistoricalconversionrate)whichhasbeenprovidedforasdiminutioninthevalueofinvestmentinthefinancialstatementsofthecompanyfortheyearended31stMarch,2015.

Despite all aroundefforts, the JVCompany could not secure any EPCbusiness (except one small order of engineering) due toextremelychallengingenvironmentcoupledwiththepreconditionsofdeploymentoflargeworkforceinKSAtosecurebusiness.

IntheabsenceofanybusinessandtoarrestfurtherlossesofcapitaltheJVpartnersdecidedtodissolvethecompanyandaccordinglytheBoardofDirectorsofEILintheirmeetingheldon30thJanuary,2015passedtheresolutiontoinitiateactionfordissolutionandliquidationofJABALEILIOTCompanyLimited.Theprocessofdissolutionisunderway.

Inthemeantime,partofcapitalamountingtoSR3000000(equivalent`495.35lakhsatcurrentconversionrate)wasrepatriated.TheproratahistoricalcostofSR3000000worksoutat`359.40lakhsandassuch`135.95lakh(`495.35lakhs-`359.40lakhs)isrecognizedasexchangegainonrepatriationofpartequitysharecapitalofJointVentureCompany.

c) Ramagundam Fertilizers and Chemicals Limited

TheCompanyhas,alongwithNationalFertilizersLimited(NFL)andFertilizerCorporationofIndiaLimited(FCIL)incorporatedajointventureforsettingupandoperationofagasbasedureaandammoniacomplexinFebruary,2015namelyRamagundamFertilizersandChemicalsLimited(RFCL)havingregisteredofficeinDelhi.

TheCompanyhasinitialAuthorizedsharecapitalof`100croreconsisting10croresharesoffacevalueof`10/-each.

TheInitialpaidupCapitalbyJointVenturePartenersason31.3.2015isasunder:

Shareholder No. of Shares held of face value of `10/- each

Paid up Share Capital

EIL 24.40Lakhs `244.00LakhsNFL 24.40Lakhs `244.00LakhsFCIL 0.10Lakhs `1.00Lakhs

Total 48.90 Lakhs `489.00 Lakhs TheCompanyisintheprocessofstartingitsoperations.

(B) Company’sshareinAssetsandLiabilitiesandIncomeandExpenditurerelatedtoitsinterestinTEILProjectsLimited(basedonauditedfinancialstatementsfortheyearended31stMarch,2015)andJabalEiliotCo.Ltd(basedonauditedfinancialstatementsfortheyearended31stDecember,2014)areasunder:

(`inLakhs)Particulars Year ended 31st March, 2015 Year ended 31st March, 2014

Assets 693.09 762.74Liabilities 187.27 147.52Income 127.50 141.18Expenditure 252.73 271.31


129

2.30 AsperCabinetCommitteeonEconomicAffairs(CCEA)decision,thenominatedPSU(EIL)wasrequiredtopayacommitmentfeeof̀ 833.00lakhstoFertilizerCorporationofIndia(FCIL)forrevivalofRamagundamFertilizerplantsothatnetworthofFCILismadepositivetoenableittoderegisterfromBIFR.Intermsofapproval,postderegistration,basedonsaleofassetsbyFCIL,theamountcanbereturned/adjusted,if necessary.

TheapprovalofBoardofEILwasaccordedinthefinancialyear2013-14forreleaseof`833.00lakhstowardscommitmentfeetoFCILsubjecttorefund/adjustmentinduecourse.TilldatenoamounthasbeendisbursedtoFCIL.Pendingdisbursement,ifany,toFCIL,theamounthasbeendisclosedasshorttermloans&advancesrecoverableincashorinkindorforvaluetobereceivedasanassetandacorrespondingliabilityhasbeendisclosedasothercurrentliabilitiesinthefinancialstatementsofthecompanyforcurrentyear.

SubsequenttoderegistrationofFCILfromBIFR,thecompanyalongwithNationalFertilizersLimited(NFL)andFertilizersCorporationofIndia(FCIL)hasformedajointventureduringthecurrentyearforsettingupandoperationofgasbasedureaandammoniacomplexbyincorporatingacompanynamelyRamagundamFertilizersandChemicalsLimited.

2.31 Jointly Controlled Assets

CompanyhasenteredintoProductionSharingContractswithGovernmentofIndiaalongwithotherpartnersforExploration&ProductionofOilandGas.TheCompanyisanon-operatorandishavingfollowingparticipatinginterestintheventures.ThecompanywouldshareExpense/Income/Assets/Liabilities of the ventures on the basis of its percentage in the production sharing contracts. The detail ofcompany’s interest in blocks is as under:

Block No. Participating Interest

CB-ONN-2010/11 20%

CB-ONN-2010/08 20%

Basedonunauditedavailableinformation,revenueexpenditureof`719.98Lakhs(Previousyear:`495.31Lakhs)andcapitalexpenditureof `4.77Lakhs(Previousyear:NIL),beingthecompany’ssharehasbeenaccountedforinthefinancialstatementsfortheyearended31st March,2015.

2.32 The disclosures in respect of employee benefits covered under Accounting Standard (AS-15) “Employee Benefits” are made as far as practicable.

Defined Contribution Plan

Theamountrecognizedasanexpenseindefinedcontributionplanisasunder:

(`inLakhs)Particulars Expense recognized in Year

ended 31st March, 2015Expense recognized in Year

ended 31st March, 2014ContributoryProvidentFund&EmployeesPensionScheme,1995 3856.00 3700.15EmployeesDefinedContributorySuperannuationScheme 4847.42 4068.86

InrespectofProvidentFund,thecompanyhasaseparateirrevocablePFTrust,managingtheProvidentFundaccumulationofemployees.TheGuidanceonimplementingAS15,EmployeeBenefits(revised2005)issuedbyAccountingStandardsBoard(ASB)ofICAIstatesthatbenefitsinvolvingemployerestablishedprovidentfunds,whichrequireinterestshortfallstobere-compensatedbytheemployeraretobeconsideredasdefinedbenefitplans.Inthisregard,Actuarialvaluationason31stMarch,2015wascarriedoutbytheActuarytofindoutvalueofProjectedBenefitObligationarisingduetointerestrateguaranteebytheCompanytowardsProvidentFund.IntermsofsaidvaluationtheCompanyhasnoliabilitytowardsinterestrateguaranteeason31stMarch,2015.

Defined Benefit Plan

CompanyishavingthefollowingDefinedBenefitPlans:

• Gratuity(Funded)

• LeaveEncashment(Funded)

• PostRetirementMedicalBenefits(Funded)

• LongServiceAwards(Unfunded)

• OtherbenefitsonRetirement(Unfunded)


130

Gratuity (Funded) Leave Encashment (Funded)

Post Retirement Medical Benefits

(Funded)

Long Service Award (Unfunded)

Other Benefitson Retirement

(Unfunded)

2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

a) Actuarial Assumptions (` in Lakhs)

Discount rate 8.00% 8.50% 8.00% 8.50% 8.00% 8.50% 8.00% 8.50% 8.00% 8.50%

Expectedrateofreturn on assets 9.40% 9.20% 9.40% 9.20% 9.40% 9.20% - - - -

Expectedrateof future salary increase

10.00% 10.00% 10.00% 10.00% - - - - - -

Increase in compensationlevels

- - - - 7.50% 7.50% - - - -

Increase in price of award(Gold)(Silver)

- - - - - - 12.00%12.00%

13.00%16.00% - -

Increase in other benefitsonRetirement

- - - - - - - - 5.00% 5.00%

b) Reconciliation of opening and closing balances of Defined Benefit obligation

Present value of obligationsasatbeginning of year

10979.13 10757.69 24938.26 22806.76 10474.67 9265.33 2011.88 2091.87 136.93 153.15

Interest cost 933.22 860.62 2119.75 1824.54 890.35 787.55 171.01 167.35 11.64 12.25

Current Service Cost 907.21 886.28 3853.07 2114.40 223.79 195.21 161.22 204.19 7.09 6.87

CurtailmentCost/(Credit) - - (548.99) - - - - - - -

Past Service Cost - - - - - - - - - -

Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) (115.33) (127.98) (17.72) (15.47)

Actuarial(gain)/lossonObligations (222.26) (452.37) (1602.34) 779.83 1109.79 1070.98 (507.25) (323.56) 0.71 (19.87)

Present value of obligationsasatend of year

11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

c) Reconciliation of opening and closing balances of fair value of plan assets

Fair value of plan assets as on beginning of year

10909.66 10885.28 22153.41 20947.11 9210.41 8161.76 - - - -

AdditionalInterest in plan asset credited at beginning of period

- - - - - - - - - -

Expectedreturnonplan assets 1003.68 1039.54 2038.11 2000.45 847.36 779.45 - - - -

Contributions 292.72 137.85 2784.63 1858.54 1264.15 1103.57 - - - -

Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) - - - -

ActuarialGain/(Loss)onPlanassets

(19.70) (79.92) (43.85) (65.42) 65.12 10.03 - - - -


131



(Funded)



(Unfunded)

2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

(`inLakhs)

Fair value of plan assets at the end of year

10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 - - - -

d) Fair value of plan assets as on 31st March, 2015

Fair value of plan assets at beginning of year

10909.66 10885.28 22153.41 20947.11 9210.41 8161.76 - - - -

AdditionalInterest in plan asset credited at beginning of period

- - - - - - - - - -

Actual return on plan assets 983.98 959.62 1994.26 1935.03 912.48 789.48 - - - -

Contributions 292.72 137.85 2784.63 1858.54 1264.15 1103.57 - - - -

Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) - - - -


10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 - -

Funded status (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)

ExcessofActualoverestimatedreturn on plan

(19.70) (79.92) (43.85) (65.42) 65.12 10.03 - - - -

e) Actuarial Gain/Loss recognized for the year ended 31st March, 2015

Actuarialgain/(Loss)fortheyear–Obligation

222.26 452.37 1602.34 (779.83) (1109.79) (1070.98) 507.25 323.56 (0.71) 19.87

Actuarial(gain)/Lossfortheyear–plan assets

19.70 79.92 43.85 65.42 (65.12) (10.03) - - - -

Total(gain)/Lossfor the year (202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

Actuarial(gain)/Loss recognized in the year

(202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

f) The amounts recognized in the balance sheet

Present value of obligationsasatthe end of year

11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

Fair value of plan assets as at the end of the year

10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 - - - -

Funded status (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)

Net(Asset)/liabilityrecognized in balance sheet

410.94 69.47 1827.45 2784.85 1311.56 1264.26 1721.53 2011.88 138.65 136.93


132



(Funded)



(Unfunded)

2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

(ìnLakhs)

g) Expenses Recognized in statement of Profit & Loss

Current Service Cost 907.21 886.28 3853.07 2114.40 223.79 195.21 161.22 204.19 7.09 6.87

Past Service Cost - - - - - - - - - -

Interest cost 933.22 860.62 2119.75 1824.54 890.35 787.55 171.01 167.35 11.64 12.25

Expectedreturnonplan assets (1003.68) (1039.54) (2038.11) (2000.45) (847.36) (779.45) - - - -

CurtailmentCost/(Credit) - - (548.99) - - - - - - -

Net Actuarial (gain)/Lossrecognized in the year

(202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

Expensesrecognized in statementofProfit&Loss

634.19 334.91 1827.23 2783.74 1311.45 1264.27 (175.02) 47.99 19.44 (0.75)

h) Amount for the current period

Present Value of Obligation 11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

Plan Assets 10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 - - - -

Surplus(Deficit) (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)

i) Major Categories of Plan Assets (as percentage of total plan assets)

Fund managed by Insurer 100% 100% 100% 100% 100% 100% - - - -

j) TheeffectofanincreaseofonepercentagepointandtheeffectofadecreaseofonepercentagepointintheassumedmedicalcosttrendratesonthefollowinginrespectofPostRetirementMedicalBenefitsScheme:

(ÌnLakhs)At 7.5% rate of escalation At 6.5% rate of escalation At 8.5% rate of escalation

CurrentServiceCost(fortheperiod01.04.2014to31.03.2015) 223.79 180.97 282.20

InterestCost(fortheperiod01.04.2014to31.03.2015) 890.35 806.77 985.91

ValueofProjectedBenefitObligationon31.03.2015 11762.50 10676.40 13090.94

k) Theamountpertainingtodefinedbenefitplansforcurrentannualperiodandpreviousfourannualperiodsareasfollows: (ÌnLakhs)

Particulars As on 31st March,

2015

As on 31st March,

2014

As on 31st March,

2013

As on 31st March,

2012

As on 31st March,

20111) Gratuity (funded)Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

11298.7510887.81(410.94)624.40(19.70)

10979.1310909.66(69.47)

-(79.92)

10757.6910885.28

127.59--

10779.6410996.34

216.70--

10680.6310597.84(82.79)

--


133

Particulars As on 31st March,

2015

As on 31st March,

2014

As on 31st March,

2013

As on 31st March,

2012

As on 31st March,

20112) Leave encashment (funded)Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

15793.6113966.16(1827.45)

530.93(43.85)

24938.2622153.41(2784.85)

-(65.42)

22806.7620947.11(1859.65)

--

21397.8419394.11(2003.73)

--

19328.0016439.24(2888.76)

--

3) Post retired medical benefits (funded) Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

11762.5010450.94(1311.56)(446.50)

65.12

10474.679210.41

(1264.26)(540.88)

10.03

9265.338161.76

(1103.57)(983.88)

17.52

8156.457581.94(574.51)(483.24)

-

7528.506421.20

(1107.30)116.40

-4) Long service awards (unfunded) PresentvalueofobligationExperienceadjustmentsplanliabilities

1721.53375.41

2011.88206.07

2091.87146.51

1992.76(164.29)

1606.26134.69

5) Other benefits on retirement (unfunded) PresentvalueofobligationExperienceadjustmentsplanliabilities

138.653.76

136.9316.02

153.1519.86

171.65(5.41)

160.29(3.98)

l) Thebestestimateofcontributionduringthenextfinancialyearisasfollows:


Post Retirement Medical Benefits (Funded)



(Unfunded)`545.15Lakhs

(PreviousYear:`223.47Lakhs)

`4002.19Lakhs(PreviousYear:`3219.19

Lakhs)


Lakhs)

`95.76Lakhs(PreviousYear:`188.14Lakhs)


2.33 DEFERRED TAX ASSET (NET):

AsperAccountingStandard(AS-22)“AccountingfortaxesonIncome”,themajorcomponentsofdeferredtaxassetsandliabilitiesarisingonaccountoftimingdifferencesare:

(`inLakhs)Sl.

No.Particulars of Deferred Tax Assets/ (Liability) Upto 31st March,

2014For the year ended

31st March, 2015As on 31st March,

2015A. Deferred Tax Asset 1. ProvisionForleaveEncashment 8476.52 (3010.66) 5465.862 ProvisionforContractualObligations 8597.45 1009.61 9607.063. ProvisionforEstimatedLosses -- 2613.31 2613.314. ProvisionforDoubtfulDebts 1454.80 305.98 1760.785. ProvisionforPostRetirementMedical 3560.34 510.43 4070.776. ProvisionforOtherBenefitsonretirement 46.55 1.44 47.997. ProvisionforLongServiceAwards 683.84 (88.05) 595.798. VoluntaryRetirementScheme 2.77 (2.77) -9. CarryforwardofunabsorbedlongtermCapitalLosson

Investment in Fixed Maturity Plans of Mutual Funds474.43 (474.43) -

10. ProvisionforLossinJointVentures 143.02 28.22 171.24Total Deferred Tax Asset 23439.72 893.08 24332.80

B. Deferred Tax Liability:1. Depreciation 353.05 784.99* 1138.04

Total Deferred Tax Liability 353.05 784.99 1138.04C. Net Deferred Tax Asset / (Liability) 23086.67 108.09 23194.76

*Includesanamountof`17.90LakhsadjustedfromGeneralReserveforfixedassetshavingNILremaining lifeason1-04-2014in linewithprovisionsofScheduleIIofCompaniesAct,2013.


134

2.34 Prior period items net debit of `818.15Lakhs (Previousyear:netdebit`277.07Lakhs) shownunderpriorperiodadjustmentsareasdetailedbelow:-

Prior Period Income

(ÌnLakhs)Particulars Year ended

31st March, 2015Year ended

31st March, 2014I Consultancy&EngineeringProjects (697.06) (98.99)II Turnkey Projects - (146.43)II Miscellaneous Income - 0.14

(A) (697.06) (245.28)

Prior Period Expenditure

(ÌnLakhs)Particulars Year ended


31st March, 2014I Facilities 91.05 5.25II Depreciation 30.04 26.54

(B) 121.09 31.79TOTAL(A-B) (818.15) (277.07)

2.35 InlinewithAccountingStandard(AS-17)“SegmentReporting”,theCompanyhas(segmented)identifieditsbusinessactivityintotwobusiness segment i.e. Consultancy& Engineering Projects and Turnkey Projects, taking into account the organizational structure andinternalreportingsystemaswellasdifferentriskandrewardsofthesesegments.Segmentresultsaregivenbelow:-

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(ìnLakhs)Year ended


31st March, 2014Segment RevenueConsultancy&EngineeringprojectsTurnkey Projects

94797.3176503.11

110907.1471452.03

Total 171300.42 182359.17Segment Profit Consultancy&EngineeringProjectsTurnkey Projects

22790.635602.19

49196.644032.98

Total (a) 28392.82 53229.62Prior period adjustmentInterestOtherun-allocableexpenditure

818.1523.16

8106.68

277.076.53

6351.72Total (b) 8947.99 6635.32

Other Income (c)Profit Before Tax (a-b+c)Capital Employed (*)

27310.8046755.63

256790.09

23208.5169802.81

246176.04

(*)FixedAssetsusedintheCompany’sbusinessorliabilitiescontractedhavenotbeenidentifiedtoanyofthereportablesegments,asthefixedassetsandsupportservicesareusedinterchangeablybetweensegments.Accordingly,nodisclosurerelatingtototalsegmentassetsandliabilitieshasbeenmade.


135

2.36 DISCLOSURE PURSUANT TO AS-18 “RELATED PARTY DISCLOSURES”:-

(A) RELATED PARTIES:

S. N0. NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP1. CERTIFICATIONENGINEERSINTERNATIONALLIMITED WHOLLYOWNEDSUBSIDIARY2. EILASIAPACIFICSDNBHD WHOLLYOWNEDSUBSIDIARY3. PETROLEUMINDIAINTERNATIONAL ASSOCIATIONOFPERSON4. TEILPROJECTSLTD. JOINTVENTURECOMPANY5. JABALEILIOTCO.LTD. JOINTVENTURECOMPANY6. RAMAGUNDAMFERTILIZERSANDCHEMICALSLIMITED JOINTVENTURECOMPANY7. OILANDGASEXPLORATIONANDPRODUCTIONBLOCKNO.

CB-ONN-2010/8UNINCORPORATEDJOINTVENTURE–NONOPERATORWITHPARTICIPATINGINTEREST20%

8. OILANDGASEXPLORATIONANDPRODUCTIONBLOCKNO.CB-ONN-2010/11

UNINCORPORATEDJOINTVENTURE–NONOPERATORWITHPARTICIPATINGINTEREST20%

9. DIRECTORS/ KEY MANAGEMENT PERSONNELMr.A.K.PURWAHA CHAIRMAN&MANAGINGDIRECTORDr.ARCHANAS.MATHUR DIRECTOR(GOVT.NOMINEE)Mr.RAMSINGH DIRECTOR(FINANCE)Mr.D.MOUDGIL DIRECTOR(PROJECTS)-upto31stAugust,2014Mr.SANJAYGUPTA DIRECTOR(COMMERCIAL)Ms.VEENASWARUP DIRECTOR(HR)Mr.AJAYN.DESHPANDE DIRECTOR(TECHNICAL)Mr.ASHWANISONI DIRECTOR(PROJECTS)–w.e.f.1stSeptember,2014Mr.ADITJAIN NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014Mr.BIJOYCHATTERJEE NON-OFFICIALINDEPENDENTDIRECTORDr.J.P.GUPTA NON-OFFICIALINDEPENDENTDIRECTORDr.R.K.SHEVGAONKAR NON-OFFICIALINDEPENDENTDIRECTORMr.D.R.MEENA NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014Dr.V.VIZIASARADHI NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014Mr.RAJANKAPUR COMPANYSECRETARY

(B) RELATED PARTY TRANSACTIONS:

(`inLakhs)PARTICULARS WHOLLY

OWNED SUBSIDIARIES

JOINT VENTURE

COMPANIES

ASSOCIATIONOF

PERSON

KEYMANAGEMENT

PERSONNEL

UNINCORPORATED JOINT VENTURES

TOTAL

Deputationofemployees&Reimbursementofexpenses(atcost)

40.11(Previousyear:37.29)


Dividend/Shareofprofit 400.00(Previous

year:400.00)

59.43(Previousyear:

56.47)

459.43(Previous

year:456.47)Renderingofservices&othertransactions

273.06(Previous

year:330.26)


276.81(Previous

year:338.99)

Outstandingreceivables/Advances paid



Nil(PreviousYear

:32.51)

144.41(Previous

year:148.46)Services&facilitiesReceived 405.79

(Previousyear:231.10)

81.50(Previous

year:133.03)

0.20(Previousyear:

Nil)

487.49(Previous

year:364.13)


136

PARTICULARS WHOLLY OWNED

SUBSIDIARIES

JOINT VENTURE

COMPANIES

ASSOCIATIONOF

PERSON

KEYMANAGEMENT

PERSONNEL


TOTAL

Outstanding Payable 137.23(Previousyear:38.83)


7.84(PreviousYear:

48.82)

153.41(Previous

Year:91.55)Remuneration/Sittingfees* 363.69


363.69(Previous

year:267.31)Rentpaidforresidentialaccommodation



Interest Income on loans given 0.34(Previousyear:0.25)


OutstandingLoans,Interest&other receivables



EquityContribution 244.00(PreviousYear:

Nil)

244.00(PreviousYear:Nil)

Repatriationofpartcapital 495.35(PreviousYear:

Nil)

495.35(PreviousYear:Nil)

Provisionfordiminutionininvestment/lossesinVentures

111.03(Previous

Year:111.01)

111.03(Previous

Year:111.01)Survey&otherexpensesandCapitalExpenditure

724.75(PreviousYear:

495.31)

724.75(Previous

Year:495.31)

*Theremunerationdoesnotincludeprovisionforpostretirement/otherlongtermbenefitsunderAccountingStandard-15(Revised),sincethesame is not available for individual employees.

2.37 EARNING PER SHARE (E. P. S.)

IntermsofAccountingStandard-20“EarningperShare”,therequisitedisclosuresareasunder:

Calculation of E.P.S. Year ended 31st March, 2015 Year ended 31st March, 2014A NetProfitfortheyearattributabletoEquityShareholders

(`inLakhs)30797.64 47976.35

B WeightedaveragenumberofEquityshares 336936600 336936600C Basic&DilutedEarningpershare(A)/(B) `9.14 `14.24D Nominal value per share `5 `5

2.38 TheBoardofDirectorsattheirmeetingheldon27thMay,2015hasproposedafinaldividendof`2/-pershareforfinancialyear2014-15(Previousyear:`3/-pershare)subjecttoapprovalofshareholdersinannualgeneralmeeting.Theaboveisinadditiontoaninterimdividend of `3.00/-pershareforfinancialyear2014-15(Previousyear:`3.50pershare)declaredandalreadypaid.

2.39 LEASES

a) TheCompanyhastakencertainoffice/residentialpremisesonoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.Duringtheyearanamountof`1021.80Lakhs(Previousyear`1003.05Lakhs)hasbeenchargedtowardsthesecancellableoperatingleases.

b) TheCompanyhastakencertainassetslikecar,commercial/residentialpremisesetc.onnon-cancellableoperatingleases.Duringtheyear an amount of `643.73Lakhshasbeenpaid(Previousyear`362.97Lakhs)towardsthesenon-cancellableoperatingleases.Thefutureminimumleasepaymentsinrespectoftheseleasesareasfollows:

i) Payablenotlaterthan1year`547.96Lakhs(Previousyear:`393.94Lakhs)

ii) Payablelaterthan1yearandnotlaterthan5years`214.74Lakhs(Previousyear:`343.92Lakhs)


137

iii) Payablelaterthan5yearsNil(Previousyear:Nil).

c) TheCompanyhasgivencertainoffice/residentialpremisesonoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.Duringtheyearanamountof`243.17Lakhs(Previousyear:`231.59Lakhs)hasbeenaccountedforasrentalincomeinrespectofthesecancellableoperatingleases.

2.40(i) Inoneoftheturnkeyprojectexecutedbythecompanyinpreviousyears,theclienthadleviedthepricediscountandaccordinglyreducedcontractpricewasrecognizedasrevenueintermsofaccountingprinciples.Duringtheyear,thesettlementinrespectofthesamehasbeencompletedwithclientandaccordinglysegmentrevenueandprofitsforturnkeyprojectsincludesanamountof`7621.56lakhstowardsrefundofpricediscountleviedbytheclient.

(ii) InoneofongoingturnkeyprojecttheCompanyhadinpreviousyearsreducedthecontractpriceonaccountofliquidateddamagesfordelays inthecompletionof thecontractasperprovisionofAS7“ConstructionContracts”.Duringtheyear, theprojectwasmechanicallycompletedandintermsofcontractualprovisions,Managementhasestimatedthatnoliquidateddamagesshallbeincurredandassuchadjustmentinthecontractpricehasbeenmade,resultingintoincreaseinrevenueandprofitfromturnkeysegment by `4914.47Lakhsand`4865.32Lakhsrespectively.

2.41 ThebalancesofTradereceivables,Loans&Advances,Customer’sadvances,retentionmoney,Securitydepositsreceivable/payableandTradepayablesaresubjecttoconfirmationandreconciliation.

2.42 ForLumpsumServicesandTurnkeyContracts,balanceefforts,costandtimetocompletethecontractincludingprobabilityoflevyforliquidateddamagesandpricereductionschedulesfordelayasonreportingdateareassessedbythemanagementandrelieduponbytheauditors.

2.43 IntermsofAccountingStandard(AS29)“Provisions,ContingentLiabilitiesandContingentAssets”,therequisitedisclosuresareasunder:

i) Themovementinprovisionsaredisclosedasunder:

(`inLakhs)

S.No. Class of ProvisionContractual Obligations Expected losses





1 Opening Balance 25440.86 30609.45 - -2 AdditionalProvisionduringtheyear 3782.89 5223.14 7551.16 -3 Provision used during the year - - - -4 Provision reversed during the year 1317.30 10391.73 - -5 ClosingBalance(1+2-3-4) 27906.45 25440.86 7551.16 -

ii) Natureofprovision:

a) Contractual Obligations :

Contractual obligations represent provision for estimated liabilities on account of guarantees and warranties etc. in respect ofconsultancy&engineeringservicesandturnkeycontractsexecutedbytheCompany.Thesaidobligationcoversperformanceaswellasdefectliabilityperioddefinedintherespectivecontracts.

Forturnkeycontracts, theestimated liabilityonaccountofcontractualobligations isprovidedat1%ofrevenuerecognizedbasedonriskassessmentmadebythemanagement.Forconsultancy&engineeringservicescontractstheestimatedliabilityonaccountofcontractualobligationsisprovidedasperassessmentofprobableliabilitymadebythemanagementbasedonliabilityclausesinrespectivecontracts.

b) Expected Losses :

Foreachcontracts,atreportingdate,totalcontractcostandtotalcontractrevenueareestimated.Inrespectofcontracts,whereitisprobablethattotalestimatedcontractcostwillexceedtheestimatedtotalcontractrevenue,theexpectedlossisrecognisedasanexpenseinthestatementofProfitandLossasperprinciplesofAccountingStandardAS-7,“ConstructionContracts”.

iii) ThedisclosuresinrespectofcontingentliabilitiesaregivenasperNoteNo.2.17.

2.44CSRActivityReserveamountingto`2800.15Lakhs(Previousyear:`2820.56Lakhs)underheadReserves&Surplus(Note2.2)representsunspentamount,outofamountssetasideofprofitearnedinthepastyearsformeetingsocialobligationsasperDepartmentofPublicEnterpriseguidelinesforCorporateSocialResponsibilityandprovisionsofCompaniesAct,2013andrulesmadethereunder.

TherequisitedisclosurerelatingtoCSRexpenditureintermsonguidancenoteonCorporateSocialResponsibility(CSR)issuedbyInstituteof Chartered Accountants of India:

(a) Grossamountrequiredtobespentbythecompanyduringfinancialyearended2014-15-`1661.49.


138

(b) Amountspentduringthefinancialyearended2014-15on:

S.No. Particulars In Cash Yet to be paid in cash Total(i) Construction/acquisitionofanyassets 1207.05 226.90 1433.95(ii) Onpurposeotherthan(i) 247.95 0.00 247.95

Total 1455.00 226.90 1681.90

2.45 Detailsofloansgiven,investmentmadeandguaranteegivencoveredU/S186(4)oftheCompaniesAct,2013

a) Loansgiven-Nil

b) Investmentmadearegivenunderrespectiveheads

c) CorporateGuaranteesgivenbytheCompanytobanksforworkingcapitalloansinrespectJointVenture

(`inLakhs)

S.No. Name of the Company As at 31st March, 2015 As at 31st March, 20141 TEILProjectsLimited(JointVenture) 200.00 200.00

2.46 In termsofSection22of theMicro,Small andMediumEnterprisesDevelopmentAct2006, theoutstanding to theseenterprisesarerequiredtobedisclosed.However,theseenterprisesarerequiredtoberegisteredundertheAct.IntheabsenceoftheinformationaboutregistrationoftheEnterprisesundertheaboveAct,therequiredinformationcouldnotbefurnished.

2.47 RemunerationtoChairman&ManagingDirectorandfulltimeDirectorsareaspertheirappointmentlettersfromtheMinistryofPetroleum&NaturalGas,GovernmentofIndia,NewDelhi.Theyarealsoallowedtousethestaffcarforprivatejourneysuptoaceilingof1000kmsper month.

2.48 Previousyear’sfigureshavebeenre-castedand/orregroupedwherevernecessarytoensuretheirpresentationinlinewiththecurrentyear’sfigures.



PAN:AAGPG5991E



DIN:00165092





(`inLakhs)


139

Comments of the Comptroller and Auditor General of India under section 143(6) (b) of the Companies Act, 2013 on the Financial Statements of

Engineers India Limited for the year ended 31st March 2015

ThepreparationoffinancialstatementsofEngineersIndiaLimitedfortheyearended31March2015inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013istheresponsibility,ofthemanagementofthecompany.ThestatutoryauditorappointedbytheComptrollerandAuditorGeneralofIndiaundersection139(5)oftheActisresponsibleforexpressingopiniononthefinancialstatementsundersection143oftheActbasedonindependentauditinaccordancewithstandardsonauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated27May2015.

I,onthebehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditundersection143(6)(a)oftheActofthefinancialstatementsofEngineersIndiaLimitedfortheyearended31March2015.Thissupplementaryaudithasbeencarriedoutindependentlywithout access to theworkingpapersof the statutory auditors and is limitedprimarily to inquiriesof the statutory auditors and companypersonnelanda,selectiveexaminationofsomeoftheaccountingrecords.

Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’ report.

For and on the behalf of theComptroller&AuditorGeneralofIndia

Place:NewDelhiDate:June30,2015

(Suparna Deb)Principal Director of Commercial Audit

&Ex-officioMember,AuditBoard-IINewDelhi

CertificationEngineersInternationalLimited

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DearMembers,

YourDirectors have great pleasure in presenting the 20th Annual Report for the financial year ended 31stMarch, 2015 alongwithAuditedStatementofAccounts,theAuditors’ReportandReviewoftheAccountsbytheComptrollerandAuditorGeneralofIndia.

PERFORMANCE DURING THE YEAR 2014-15Theoverallfinancialperformancefortheyear2014-15ishighlightedbelow:

(`inlakhs)

RESULTS OF OPERATIONS For the year ended31.03.2015

For the year ended 31.03.2014

Income from services rendered(Includingadjustmentofwork-in-progress)

3440.43 2763.00

Expenditure 2590.62 2236.02

Operatingprofit 849.81 526.98

Other Income 488.90 444.88

Profit before Tax & Prior period adj. 1338.71 971.86

Prior period adjustment - 13.81

Profit before Tax 1338.71 958.05

ProvisionforTaxation

Current Tax 463.71 332.70

Deferred Tax (-)0.90 (-)8.61

Adj. of previous year’s Tax Provision - (-)2.10

Profit after Tax 875.90 636.06

Interim/ProposedDividend 450.00 400.00

Tax on dividend 90.88 67.98

Transferto/fromCSRActivityReserve(Net) (-)10.68 54.18

TransfertoGeneralReserve 345.70 113.90

Earningpershare(Basic/Diluted,in`) 875.90 636.06

SOURCES AND USES OF FUNDS

Authorized Capital 200.00 200.00

Issued,Subscribed&Paid-upCapital 100.00 100.00

Reserves and Surplus 5859.84 5527.02

Non-CurrentLiabilities 294.16 245.64

CurrentLiabilities 906.35 584.84

7160.35 6457.50

REPRESENTED BY

Fixed Assets 245.27 286.57

Deferred Tax 117.07 115.04

LongTermLoans&Advances 362.02 326.69

OtherNon-CurrentAssets 41.69 130.89

Current Assets 6394.30 5598.31

7160.35 6457.50

Directors’ Report


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DIVIDENDThe Board of Directors of the company has recommended for the financialyear2014-15,afinaldividendof`250/-pershare(offacevalue of `100/- per share) in addition to `200/-per share interimdividendalreadypaidduringtheyear.Withthis,thetotaldividendforthefinancialyear2014-15worksoutto`450/-pershare.Paymentoffinaldividendis,however,subjecttoapprovalofshareholdersintheensuingAnnualGeneralMeetingof theCompany. Thedividend, ifapprovedanddeclaredintheforthcomingAnnualGeneralMeeting,would result into total dividend outflow of `450.00 lakhs anddividenddistributiontaxof`90.88lakhsaggregatingtototaloutflowof `540.88lakhs.

MANAGEMENT DISCUSSION & ANALYSISAseparatereportonManagementDiscussion&Analysisisannexedto this report.

OPERATIONSDuringtheyear,workonthefollowingmajorassignmentsprogressedwell:1) Oil&Natural Gas Corporation Limited (ONGC) – Sagar Samrat

Conversion Project (SSCP), HRD – II (PLP), Additional Pipelineproject,SagarPragatiConversionProject(SPCON),

2) Konkan Railway Corporation Limited (KRCL) – Udhampura-Shrinagar-BaramullaRailLink(USBRL)Project.

3) InfrastructureworksforVadodaraMunicipalCorporation(VMC)andSuratMunicipalCorporation(SMC).

4) Rajkot Urban Development Authority (RUDA) – InfrastructureProject of RUDA

5) RelianceIndustriesLtd–MarketingTerminalatBhopal,Rewari&Chennai.

6) BPCL–TPIServicesforBPCL-MR,BPCL-KRandNRL.

7) HeurteyPetrochem–BPCLDCUHeaterProject,Kochi

8) MazgaonDockLtd–MDLProject75.

9) TamilNaduEnergyDevelopmentAuthority–SPVHomeLightingsystem.

10)PunjLloyds–TPIofSulphurBlockofResidupgradationproject,

CPCL.

11)IOCL–TPIforConstruction/ModernisationofRetailOutletsinTamilnadu,AutomationWorkstobecarriedoutatRetailOutletsinBihar&Jharkhand.

12)Aavantika Gas Ltd – TPI of Steel pipeline and CNG stationconstructionprojects.

13)Fabtech Project& Engineers Ltd –Mounded Bullet Project forBPCL,Kochi.

14)GujaratStatePetronetLimited(GSPL)–VariousPipelineProjectsviz;(Silvasa Pipeline Project, Steel cast Connectivity Project,PPI Ford connectivity & TOPMadhvass, Sanand GIDCMultipleCustomerConnectivityProject)

15)HowdenProcessCompressors–IREPProject.

16)Fernas Construction – LSTK Contracts for OPaL, Dahej& SJPL,Paradeep

17)Tecnimont–TPIforHDPE/LLDPE&PPUforOPaL–Dahej

18)CIDCO-QualityAuditofInfrastructureworks.

During the year, CEIL also completed Emergency Response andDisasterManagementPlan(ERDMP)Certification,PipelineIntegrityManagementsystemCertification,ExternalSafetyAuditandSafetyAwarenessSurveyforthefollowingCustomersFacilities:-a. ERDMPAuditsfor:

• GAILGasLimitedCGDNetworksatAgraandFirozabad

• LNGterminalofHaziraLNGPrivateLimited

• IOCLLPGBottlingPlantsatChakan,Etawah,Sanand

• KMPL,LJPL,BNPLPipelineofGAIL(India)

b. PipelineIntegrityManagementSystemCertificationfor:

• CGDNetworksatAgraandFirozabadforGAILGasLimited

• CGDNetworksatNewDelhiforIGL

c. SafetyAwarenessSurveyofGAILKGBasinPipelineNetwork.

d. ExternalSafetyAuditofGAIL(India)Ltd.Pipelinenetworks.

Thefollowingmajorassignmentsweresecuredduringtheyear:

• Oil & Natural Gas Corporation Limited (ONGC) – MumbaiHighNorthRedevelopmentProject[MHNRD–III(PLP)],42”SBHTPipelineProject,

• KonkanRailwaysCorporationLimited (KRCL)–Udhampura-Shrinagar-BaramullaRailLink(USBRL)Project.

• Infrastructure works for Vadodara Municipal Corporation(VMC)andSuratMunicipalCorporation(SMC).

• Reliance Industries Ltd – Marketing Terminal at Bhopal,Rewari&Chennai.

• IOCL, Patna – TPI Services for Automation works at RetailOutletsinBihar&Jharkhand.

• Aavantika Gas Ltd – TPI of Steel pipeline and CNG stationconstructionprojects.

• Larsen&ToubroLtd–TPIofONGCMHNRDIIIProject.

• Gujarat State Petronet Limited (GSPL) – Various PipelineProjects (Steel cast Connectivity Project, Sanand GIDCMultipleCustomerConnectivityProject)

• CIDCO-QualityAuditofInfrastructureworks.

• ERDMP,IMS,ExternalSafetyAudits,SafetyAwarenessSurveyassignments from IGL, GAIL Gas Ltd., Hazira LNG PrivateLimited,GAIL(India)LimitedandIOCL.

RISK MANAGEMENTIn the Company, various business related risks are identified,reviewed and action plans effected under the supervision of theRisk Functional Committeewhich in turn ismonitored by theRiskManagementCommitteeatapex level. Specificmechanismsare inplacetoassesstheexistingandpotentialenterpriserisks.

INTERNAL AUDITInternal Audit of the Company is done by Internal Audit Department ofEngineers IndiaLtd., theparentCompany. InternalAudit for thefinancialyear2014-15wascarriedoutandtheInternalAuditReportswere submitted to theManagement and Audit Committee of theBoard.

VIGILANCEVigilanceactivitiesofthecompanyarecarriedoutbytheVigilanceDepartment of Engineers India Ltd., the parent Company, with


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focusedobjectiveofensuringconformitytotheCompanyproceduresandGovernmentGuidelines.SystemimprovementsaresuggestedtoManagementandactionsareundertakenforimprovement.

The Company observed the Vigilance Awareness Week w.e.f.27.10.2014to1.11.2014asperthedirectivesforspreadingVigilanceawareness and encouraging “participative vigilance” amongst theemployees of the Company Various competitions were organizedduringthevigilanceweekfortheemployees.

SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIESTheCompanydoesnothaveanysubsidiary,JointVentureorAssociateCompany.Further,thenamesofCompanieswhichhavebecomeorceasedtobeitssubsidiaries,jointventuresorassociatecompaniesduring the year are NIL.

MANPOWER Ason31stMarch2015,yourCompanyhadtotalmanpowerof77.Regularemployeeswere73andnumberofemployeesondeputationfromEngineersIndiaLtd.,theparentCompanystoodat4.

Employees were nominated for various training programs in thefield likeNDT,Offshore,RiskManagement, functional&behavioraltrainingsfromtimetotime.

Formeetingjobrequirementsatoptimumcost,yourCompanyisalsooutsourcingmanpowerfromagenciesandisempanellingengineersand consultants.

OFFICIAL LANGUAGELikeprevious years, awareness and increasedusageof official lan-guage was enthusiastically carried out during the year. Provisionsofsection3(3)ofOfficialLanguagesActandOfficialLanguageRuleshavebeencompliedwith.‘HindiDiwas’wasobservedon14.09.2014and‘HindiFortnight’wasorganizedfrom12.09.2014to26.09.2014inassociationwithholdingcompanyEIL.Withaviewtocreategreaterawareness,consciousnessandtoencourageemployeestoenhanceuseofHindiinofficialworkseveralworkshops,inspectionandsemi-narwerealsoorganized.

CONSERVATION OF ENERGY & FOREIGN EXCHANGE EARNINGS AND OUTGOAs theCompany’soperationsdonot involveanymanufacturingorprocessingactivities,theparticularsrequiredunderSection134(3)(m)oftheCompaniesAct,2013readwithRule8(3)oftheCompanies(Accounts) Rules, 2014 regarding conservation of energy andtechnologyabsorptionarenotapplicable.

Theparticulars regarding foreignexchangeearningsandoutgoareappearing in para 2.33 of the Notes to Financial Statements. TheCompanydoesnotownanymanufacturingfacilitieshencetheotherparticularsrequiredunderSection134(3)(m)oftheCompaniesAct,2013relating toForeignExchangeEarnings&Outgoarenotappli-cable.

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY The information required under Company’s (Corporate SocialResponsibilityPolicy)Rules,2014isannexedtothisReport.TheCSRPolicy is givenon thewebsiteof theCompany at http://ceil.co.in/company.html.

DETAILS OF LOANS/GUARANTEES/INVESTMENTS There were no loans, guarantees or investments made by the

CompanyunderSection186oftheCompaniesAct,2013duringthefinancialyear2014-15.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES (RPTs)In line with the provisions of the Companies Act, 2013 and theListingAgreement,theparentCompanyi.e.EngineersIndiaLimitedhasformulatedaPolicyonMaterialityofRelatedPartyTransactionsandalsoondealingwithRelatedPartyTransactionsasperwhichthenecessary compliances have been done in this regard.

During the financial year 2014-15, there was no material RPTs.Further,suitabledisclosureasperstatutoryrequirementshasbeengiveninPara2.24ofNotestoFinancialStatements.

EXTRACT OF ANNUAL RETURNInaccordancewithSection134(3)(a)oftheCompaniesAct,2013,anExtractof theAnnualReturn in theprescribed form is annexed tothis Report.

COST AUDITORSTheCompanydoesnotfallundertheCostAuditRulesandtherefore,there is no requirement of Cost Audit for the Company as per the Statutory requirements.

NUMBER OF MEETINGS OF THE BOARDThe Board met six times during the financial year 2014-15, thedetailsofwhicharegiven intheCorporategovernancereportthatformspartofthisAnnualReport.Theinterveninggapbetweenanytwomeetingswaswithin the period prescribed under CompaniesAct, 2013 and DPE Guidelines on Corporate Governance. Forfurtherdetails regardingnumberofmeetingsof theBoardand itscommittees,pleasereferCorporateGovernanceReport,annexedtothis Report.

CODE OF BUSINESS CONDUCT AND ETHICSTheCompanyhasformulatedaCodeofBusinessConductandEthicsfor its Board Members and Senior Management Personnel in terms of DPE Guidelines on Corporate Governance. The confirmation ofcompliance of the same is obtained from all concerned on annual basis. All Directors and Senior Management Personnel have given their confirmation of compliance for the year under review. AdeclarationdulysignedbyCEOisgivenintheReportonCorporateGovernance.TheCodeofBusinessConductandEthicsforitsBoardMembersandSeniorManagementPersonnelisgivenonthewebsiteoftheCompanyathttp://ceil.co.in/company.html.

CORPORATE GOVERNANCEThe Company is committed to good CorporateGovernance as perthe requirements/Guidelines on Corporate Governance for CPSEsissued by Department of Public Enterprises, Government of India.The Board of Directors supports the broad principles of Corporate Governance.Inadditiontothebasicissues,theCompanylaysstrongemphasisontransparency,accountabilityandintegrity.

AReportonCorporateGovernanceasrequiredunderDPEGuidelineson Corporate Governance is annexed. Certificate of the Auditorsof the Company regarding compliance of the conditions of theCorporateGovernanceasstipulatedinDPEGuidelinesonCorporateGovernancealongwiththeManagement’sReplyonthecommentsofthe Auditors is enclosed.


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TRAINING OF INDEPENDENT DIRECTORSThecompanyhasawelldefinedTrainingPolicyforBoardMembers.Detailedpresentationsaremadebyseniorexecutives/professionals/consultants on business related issues and the Directors have attended seminars/conferences/programmes from time to time.Thedetailsofsuchfamiliarizationprogrammes/TrainingPolicyhavealsobeenpostedonthewebsiteofthecompanyathttp://ceil.co.in/company.html.

DIRECTORS’ RESPONSIBILITY STATEMENTInaccordancewiththeprovisionsofSection134(5)oftheCompaniesAct,2013,theBoardherebysubmititsresponsibilityStatement:

(a)in the preparation of the annual accounts for the year endedMarch31,2015,theapplicableaccountingstandardsreadwithrequirements setoutunder Schedule III to theAct,havebeenfollowedandtherearenomaterialdeparturesfromthesame;

(b)theDirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmade judgmentsandestimates thatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyasatMarch31,2015andoftheprofitofthecompanyfortheyearendedonthatdate;

(c) the Directors had taken proper and sufficient care for themaintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets ofthecompanyandforpreventinganddetectingfraudandotherirregularities;

(d)the Directors had prepared the annual accounts on a goingconcernbasis;

(e)the Directors had laid down internal financial controls to befollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequateandareoperatingeffectively;and

(f) theDirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.

RIGHT TO INFORMATION ACT, 2005 In order to promote transparency and accountability, appropriateactionistakentoreplytoqueriesfromanysourcewheneverreceived,ontime.IncompliancetotheprovisionsoftheRighttoInformationAct,2005,CentralPublicInformationOfficer(CPIO)andACPIOshavebeenappointedandutmostcareisbeingtakenfortimelycomplianceanddisseminationofinformation.Ason31.3.2015,noapplicationispendingunderRTIAct,2005.

RESEARCH & DEVELOPMENT ACTIVITIESYourcompanyisfocusedonR&Dactivitieswhichshall leadtohighqualityjobs,successfulenterprises,betterservicesandmoreefficient&costeffectiveprocesses.

DIRECTORSAfter the date of last Directors’ Report i.e. 16.07.2014, Shri AditJain,Non-officialIndependentDirectorceasedtobeDirectoroftheCompanyw.e.f.28.08.2014duetohiscessationfromEngineersIndiaLimited,theholdingCompany.ShriA.K.PurwahaceasedtobeChair-man of the Companyw.e.f. 1.06.2015 due to his retirement fromEngineers India Ltd., theholdingCompany,onattaining theageofsuperannuationon31.05.2015.ShriSanjayGuptaceasedtobeDirec-toroftheCompanyw.e.f.1.06.2015duetohiscessationinEngineersIndia Limited as Director (Commercial). Dr. J.P. Gupta, Non-official

IndependentDirector ceased tobeDirectorof theCompanyw.e.f.4.07.2015due tohis cessation in Engineers India Ltd., theholdingCompany.

TheBoardplacedonrecorditssincereappreciationforthevaluableservices rendered and contributions made by Shri A.K. Purwaha,Chairman,ShriAditJainandDr.J.P.Gupta,Non-officialIndependentDirectors of the Company.

ShriSanjayGuptawasappointedasAdditionalDirectorandChairmanoftheCompanyw.e.f.1.06.2015.ShriS.K.Handa,ExecutiveDirector(Process) of Engineers India Limited was appointed as AdditionalDirectoroftheCompanyw.e.f.29.06.2015.

InaccordancewiththeprovisionsoftheCompaniesAct,2013,ShriSudershanGupta,Directorwouldretirebyrotation,at theensuingAnnual General Meeting, and being eligible, offer himself forreappointment.

In accordance with the provisions of the Companies Act, 2013,Shri Sanjay Gupta who was appointed as Additional Director andChairman and Shri S.K. Handa who was appointed as AdditionalDirector after the date of last Directors’ report, shall vacate theiroffice at the ensuing Annual General Meeting. Necessary noticeshavebeenreceivedfromthemundersection160oftheCompaniesAct,2013,proposingtheircandidatureforappointment.TheBoardrecommends their appointment.

Brief resumeof theDirectors seekingappointment/reappointmenttogether with the nature of their expertise in specific functionalareas, names of companies in which they hold directorships andthe memberships/chairmanships of Committees of the Boardand Shareholding in the company etc. pursuant to the statutory requirements are given in the Annexure to Notice of 20th Annual GeneralMeeting.

BANKERSTheBankersof theCompanyareBankof India, CorporationBank,AxisBank,StateBankofIndiaandIndusindBankLtd.

PARTICULARS OF EMPLOYEESAs per the provisions of Section 197 of the Companies Act, 2013andrulesmadethereunder,GovernmentCompaniesareexemptedfrom inclusion of the statement of particulars of employees. Theinformationhas,therefore,notbeenincludedaspartoftheDirectors’Report.HoweverthesameinformationisopenforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween10.30a.m.to12.30p.m.priortotheAnnualGeneralMeeting.

ACCREDITATION ISO 17020:TheCompanycontinuestobeaType-AaccreditedInspectionBodyinaccordancewithISO/IEC17020grantedbyNABCB.Duringtheyear,ISO17020RenewalAuditwascarriedoutbyNABCBsuccessfullywithaccreditationvaliditytill19thJune2018.TheISO17020accreditationisgrantedforcompany’soperationsinIndiafor inprocess/finishedproduct/installation/in service inspection activities. ISO 17020accreditationisapre-qualificationcriteriatocarryoutIMS,ERDMPandT4SAuditsunderPNGRB.

CERTIFICATIONISO 9001:TheCompanysuccessfullyunderwentISO9001CertificateRenewal


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AuditcarriedoutbyIRQS.TheISO9001Certificationisvalidtill3rdSeptember2016.

APPROVALS• Emergency Response & Disaster Management Plan (ERDMP):

TheCompanycontinuesasanapprovedThirdParty Inspectionbody under PNGRB for review and verification of EmergencyResponse & Disaster Management Plan (ERDMP). During theyear,theCompanycarriedoutERDMPAuditsrangingfromCrosscountryNGPipelines,LPGBottlingPlantstoLNGTerminals.

• Integrity Management System for Natural Gas Pipelines and CGD Networks(IMS):

The Company continues to be an approved Third partyInspectionbodyunderPNGRBforcarryingoutPipelineIntegrityManagementSystemAudits forNaturalGasPipelinesandCGDNetworks.

• Technical Standards and Specifications including Safety Standards (T4S):

TheCompanycontinuestobeanapprovedThirdpartyInspectionbody under PNGRB for carrying out Technical Standards andSpecificationsincludingSafetyStandards(T4S)AuditsforNaturalGasPipelines(NGPL)andCityGasDistribution(CGD)networks.

• Petroleum & Explosives Safety Organization (PESO):

The Company continues approval from PESO as a recognizedinspection authority as well as competent authority forinspectionsunderSMPV(U)Rules1981.

• Indian Boiler Regulations (IBR):

Duringtheyear,theCompanycontinuedapprovalfromIBRasarecognized inspectionauthorityaswellascompetentauthorityforinspectionsinallcountriesofEurope,MiddleEastandChina.

• Bureau of Energy Efficiency (BEE)ESCO:

TheCompanycontinuestobeaCAREBEEGrade2ratingasanEnergyservicecompany.TheGradingindicates“HIGH”abilitytocarryoutenergyefficiencyauditsandundertakeenergyefficiencyprojects.

STATUTORY AUDITORSM/sKapoorGoyal&Co,CharteredAccountantswereappointedasStatutoryAuditorsofyourCompanyfortheFinancialYear2014-15bytheOfficeoftheComptroller&AuditorGeneralofIndia.

COMPOSITION OF AUDIT COMMITTEE The recommendations made by the Audit Committee during theyear2014-15wereacceptedbytheBoard.TheotherdetailsofAuditCommitteelikecomposition,termsofreference,meetingsheldareprovidedintheCorporateGovernanceReport.

VIGIL MECHANISM/WHISTLE BLOWER POLICYThe Company is governed by the Whistle Blower Policy/VigilMechanism formed by the holding Company i.e. M/s Engineers

India Limited and no personnel have been denied access to the Audit Committee. The same has also been given on the website of theholding Company.

DECLARATION BY INDEPENDENT DIRECTORSThe Company has received necessary declaration from theindependent director under Section 149(7) of the Companies Act,2013,thathemeetsthecriteriaofindependencelaiddowninSection149(6)oftheCompaniesAct,2013andDPEGuidelinesonCorporateGovernance.

SIGNIFICANT AND MATERIAL ORDERSThere were no significant and material orders passed by theregulatorsorcourtsortribunalsimpactingthegoingconcernstatusandCompany’soperationsinfuture.

OTHER DISCLOSURESNodisclosureorreportingisrequiredinrespectofthefollowingitemsaseitherthesewerenotapplicableortherewerenotransactionsontheseitemsduringthefinancialyear2014-15:-

1. DetailsrelatingtodepositscoveredunderChapterVoftheAct.

2. Issue of equity shares with differential rights as to dividend,votingorotherwise.

3. Issueofshares(includingsweatequityshares)toemployeesofthe Company under any scheme.

4. DetailsregardingreceiptofremunerationorcommissionbytheManagingDirector or theWhole–timeDirector fromany of itssubsidiaries.

5. BuyBackofshares.

6. IssueofBonusshares.

Duringthefinancialyear2014-15,therewerenocasesfiledpursuantto the Sexual Harassment of Women at Workplace (Prevention,ProhibitionandRedressal)Act,2013.Therearenomaterialchangesand commitments affecting the financial position of the Companywhichhaveoccurredbetweentheendofthefinancialyearandthedate of this report.

ACKNOWLEDGEMENTSThe Board of Directors express their sincere thanks to the esteemed Clients of CEIL for their continued patronage and express deepappreciation for the assistance provided by the Ministries of theGovernmentofIndia.

The Board of Directors express their sincere gratitude to EIL, theholdingcompanyfortheirallroundsupportandlookforwardtotheircontinuedsupportandguidance.

TheBoardofDirectorsalsowishtoplaceonrecordtheirappreciationfortheexcellentcontributionmadebyalltheemployeestowardsthesuccessfuloperationsoftheCompany.

For&onbehalfoftheBoardofDirectors

(Sanjay Gupta)Chairman

Place:NewDelhiDate:July6,2015


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Wehavethepleasureofpresentingyouananalysisreportcoveringtheperformanceofthecompanyfortheyear2014-15andthefutureoutlook.

FINANCIAL PERFORMANCEDuring the financial year, the income from services rendered byyourCompany saw significant improvement from`27.63Crores inprevious year to `34.40 Crores, as stated in the audited financialstatements.ProfitbeforetaxandProfitaftertaxachievedduringtheyearwere`13.39Croresand`8.76Crores,asagainst`9.58Croresand `6.36Croresrespectivelyinthepreviousfinancialyear.Thenetworthofthecompanyimprovedto`59.60Croresason31.3.2015.

Higherlevelofactivityduetoimprovedpaceoforderexecution,andbetter operating margins through effective cost management aremainreasonsforimprovedturnoverandprofitability.Yourcompanyis continuously adopting suitable measures to reduce averageman-day cost through increasedoutsourcing toeffectively counterthe pressure of reduced average realizations and higher operatingexpenses.Further,yourCompany isaggressivelytargetingbusinessproposals in overseasmarkets and exploring opportunities in newareas for improvement inman-day realization and existingmarketshare.

BUSINESS OVERVIEWDuringthefinancialyear2014-15,yourcompanywasabletomaintaina healthy order book and secured business worth around `33.50Crores.Theorderbookason31.03.2015wasaround`35.50Crores.During the year, the company secured major orders from ONGC,VadodaraMunicipalCorporation,KonkanRailwayCorporation,RajkotUrban Development Authority, GSPL, and other esteemed clients,besides securing sizeable business fromvarious StateGovernmentOrganizationsetc.TheCompany continued to receive andexecuteprestigiousordersundervariousHSEverticals.

BUSINESS ENVIRONMENT AND FUTURE OUTLOOKYourCompany’sorderbookposition comprisedof theunexecutedportionoftheordersfromONGC,VMSS,RajkotUrbanDevelopmentAuthority,SMC,GSPLetc.YourCompanyexpects tosecure furtherassignments during the year from ONGC, State Infrastructureauthorities, GSPL, andmajor LSTK Contractors etc. Emerging signsof economic recovery also suggest improved pace of execution ofprojectswhichwillpresent furtherbusinessopportunities foryourcompanyandimprovedoperatingmarginsfromneworders.YourCompanyisalsocontinuouslyexploringthepossibilityofscalingupofoverseasbusinessandsecuringCertification&TPI jobs fromothersectorslikeNuclear,Defence,FertilizersandPower.

Risk & Concerns TheCompanyhasawell-structuredRiskManagementSysteminplace.Underthis,business,stakeholder,strategy,financial,executionandother related risksare systematically identifiedusingaRiskMatrixandtheactionplansdetailedoutaccordingly.TheManagementusesthisEnterpriseRiskManagementasaneffectivetooltoforeseeandtakepromptactionsforoptimisingit’sbusinessmodelandenhanceshareholder value.

INTERNAL CONTROL SYSTEMSYour company has in place adequate systems of internal control.These have been designed to provide reasonable assurance withregard to maintaining proper accounting controls, monitoringeconomy and efficiency of operations, protecting assets fromunauthorizeduseorlosses,andensuringreliabilityoffinancialandoperational information.We continued our efforts to align all ourprocessandcontrolwithbestpractices.

Some significant features of the internal control systems arepreparation andmonitoring of annual budgets, internal audit anditsreview,cleardelegationofauthorityandresponsibility,corporatepolicyonaccountingandperiodicmanagementmeeting to reviewoperationandplansinbusinessareas.

Memorandum of Understanding (MoU) with Engineers India Limited Your Company signed MOU with EIL for the year 2015-16, withtargetsforturnover&grossoperatingmarginalongwithinitiativesforoverseasbusiness,HRD,CSRetc.

SIGNIFICANT INITIATIVESInorder tomeet the challengesof continuing changes inbusinessenvironment and growing competition, corporate focus has beenonvarious initiativeson increasingengagement inCompany’scorestrengthareas;gainingentry intoareas thatareexpected to showsignificant growth in the near future, entering in future strategic/newviableareas;improvementinprocessesandaugmentedeffortsintraining&recruitment.

HUMAN RESOURCESStrength of regular employees including employees on deputationfromEILwas77attheendoftheyear.68.5Mandaystrainingwasimparted to employees during the year through 21 nos. trainingprograms.

YourCompanyintendstopursueaggressivetrainingprogramsfortheemployeesinfuturetoo,toretaintheknowledgeedgeinitsareaofbusiness.

MARKETING Thecompanyissuccessfullyexpandingitsclientsbasewithadditionofnewclientsinexistinganddiversifiedbusinessareas.Company’scommitmenttoqualityandtimelyexecutionofcertificationandthirdpartyinspectionactivities,coupledwithpropermarketinginitiativeshashelpedthecompanyachievesignificantorderbook.ManpowerintheMarketingDepartmenthasbeensubstantiallyincreased.

OPERATIONAL IMPROVEMENTMajor Operational Improvements like increasing manpowerproductivity, optimization of cost etc. are ensured through strictmonitoringofoperationsintheCompanyandgradualincreaseinuseofSoftwarePackagesandautomatedsystems.

Cost Control & Monitoring Effectivecostreductionmeasuresforcontroloftravelcost,manpowercostetc.aretakenupatallstagesofoperations.

Annexure to Directors’ Report

Management Discussion & Analysis


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Corporate Social ResponsibilityYour Company’s CSR initiatives aim at assisting socially andeconomically weaker segments of society, as well as defining theCompany as a socially responsible business to employees, clientsandother stakeholders. The company remains committed towardsitssocialobligationsandtargetsoncapacitybuilding,empowermentof communities, inclusive socio-economic growth, environmentprotection, development of backward regions and upliftment ofmarginalized&underprivilegedsectionofsociety.

AspartofCSRactivities,duringthefinancialyear2014-15MoUswassignedwithAdvancedCentreForTreatmentResearch&EducationInCancer(TMC-ACTREC)andVadodaraMahanagarSevaSadan(VMSS).

Environment Protection and Conservation, Technological Conservation, Renewable Energy Development, Foreign Exchange ConservationEnvironmentprotectionisanintegralpartoftheCompany’sbusinessprocesses.TheCompanyisadoptingalongtermapproachtobusiness,built upon a solid commitment of sustainable growth through theactiveparticipationinresponsibleenvironmentalpractices.

Management Information System (MIS)MIS inthecompany isconstantlybeingfinetunedtocatertoevergrowinginformationneedsforeffectiveandquickdecisionmakingaswellasforstatutoryrequirements.Thisprovidesvitaldatainputstomanagementhighlightingoperatingvariables,achievementvis-à-visbudget and other decision support data.

Disclosure by Senior Management PersonnelAsConfirmedbySeniorManagementPersonnel,noneofthemhasmaterial,financialandcommercial transactionswith theCompany,wheretheyhavepersonalinterest,thatmayhaveapotentialconflictwiththeinterestoftheCompany.

Cautionary StatementStatements in management discussion and analysis describing the company’sobjectives,projections,expectations,estimatesarebasedon current business environment. Actual results could differ fromthose expressed or implied based on future economic and other developments in India and abroad.


147

Annexure-I to Director’s Report

Annual Report on Corporate Social Responsibility (CSR) Activities for the financial year 2014-15

1) Abriefoutlineofthecompany’sCSRpolicy,includingoverviewofprojectsorprogramsproposedtobeundertakenandareferencetotheweb-linktotheCSRpolicyandprojectsorprograms.

To assist socially and economically disadvantages segments of society to overcome hardship and impoverishment and to enhance increased commitmentatalllevelsintheorganizationtowardsreinforcingitsimageasasocialandenvironmentalconsciencecompany.

TheCompanyhasundertakenCSRProjects/ProgramsinlinewithScheduleVIIoftheCompaniesAct2013,whichareunderthefollowingthrust areas:i) Educationii) HealthCareiii) RenewableEnergyiv) DrinkingWater/SanitationFacilityv) EnvironmentProtection.

TheweblinkforCSRprojectorprogrammeandpolicyisgivenathttp://ceil.co.in/company.html.2) CompositionofCSRandSDCommittee ThedetailsregardingcompositionofCSRandSDCommitteearegivenintheCorporateGovernanceReportannexedtotheDirectors’Report.3) AverageNetProfitoftheCompanyforthelastthreefinancialyearswas`11.93crore.4) PrescribedCSRExpenditure(2%oftheamountasinitem3above)is`23.87lakhs5) DetailsofamountspenttowardsCSRduringthefinancialyear2014-15

a) Totalamounttobespentforthefinancialyear2014-15was`23.87lakhsb) Amountunspent,ifany-NILc) MannerinwhichtheamountsspenttowardsCSRduringthefinancialyear2014-15.

S. No.

CSR project or activity identified Sector in which the Project is covered

Project or programmes [1] Local area

or other [2] Specify

the State and district where

projects or programs was

undertaken

Amount outlay

[budget] project or programs wise(INR)

Amount spent on the projects

or programs Sub -heads :

[1] Direct expenditure

on projects or programs.

[2] Overheads:

Cumulative expenditure upto to the reporting period.

Amount spent :Direct or through

implementing agency *

1 WithSMILEFoundationforsettingupcomputer labsetc.atthreecenters ,inordertoimpartcomputereducationtoyouths of urban slums.

Education Kalyanam,Rasta and

Nipun in Delhi region

10.69Lacs Direct on project

`106786/- ThroughSMILEFoundation

2 With TATA Memorial Center(TMC),forprovidingBus,toferrytheircancerpatientsfromKhargharhospitaltotheirlowerparelhospital.

Medical Kharghar,NaviMumbai

17.31Lacs Direct on project

`1600000/- Direct

3 With Rajkot Municipal Corporationfor setting up central library in Rajkotundertheprogram"VaancheGujarat".

Education Rajkot,Gujarat 25Lacs Direct on project

`1748140/- Through Rajkot M u n i c i p a l Corporation

TOTAL 53Lacs `3454926/-

6. Incasethecompanyhasfailedtospendthetwopercentoftheaveragenetprofitofthelastthreefinancialyearsoranypartthereof,thecompanyshallprovidethereasonsfornotspendingtheamountinitsBoardreport-NotApplicable

7. AresponsibilitystatementoftheCSRCommitteethattheimplementationandmonitoringofCSRPolicy,isincompliancewithCSRobjectivesand Policy of the company.

TheCSRCommitteeconfirmsthatthe implementationandmonitoringofCSRactivitiesof theCompanyare incompliancewiththeCSRobjectivesandCSRPolicyoftheCompany.

S.D.Kherdekar,ChiefExecutiveOfficer


148

I. REGISTRATION AND OTHER DETAILS:

i) CIN : U74899DL1994GOI062371

ii) RegistrationDate : 26/10/1994

iii) NameoftheCompany : CertificationEngineersInternationalLimited

iv) Category/Sub-CategoryoftheCompany : PublicLimitedCompany(LimitedbyShares)-Govt.ofIndiaUndertaking.

v) AddressoftheRegisteredoffice andcontactdetails : EngineersIndiaBhawan, 1,BhikaijiCamaPlace,NewDelhi-110066 Tel:011-26762121,Fax:011-26164868,26186245 E-mail:[email protected],Website:http://ceil.co.in

vi) WhetherlistedcompanyYes/No : No

vii)Name,AddressandContactdetailsof RegistrarandTransferAgent,ifany : None

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sl. No. Name and Description of main products / services NIC Code of the Product/ service

% to total turnover of the company

1 Certification/Re-certification&ThirdPartyInspectionServices

Not Applicable 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S. N0 NAME AND ADDRESS OF THE COMPANY

CIN/GLN HOLDING/ SUBSIDIARY/ ASSOCIATE

% of shares held

Applicable Section

1 EngineersIndiaLimited

L74899DL1965GOI004352 Holding 100% 2(46)

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

Theshareholdingpatternofthecompanyason31.03.2015isasfollows:

S.No. Name of Shareholder Number of Equity Shares of ` 100 each

% of Issued Capital

1 Mr.A.K.Purwaha,C&MD,EIL 5* 0.005%

2 Mr.RamSingh,Director(Finance),EIL 5* 0.005%

3 Mr.SanjayGupta,Director(Commercial),EIL 5* 0.005%

4 Mr.AshwaniSoni,Director(Projects),EIL 5* 0.005%

5 Mr.AjayN.Deshpande,Director(Technical),EIL 5* 0.005%

6 Mr.SudershanGupta,ED(F&A),EIL 5* 0.005%

7 Mr.S.D.Kherdekar,CEO,CEIL 5* 0.005%

8 EngineersIndiaLimited 99965 99.965%

Form No. MGT-9Extract of Annual Return

as on the Financial Year ended on 31st March, 2015[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]


149

*ThesesharesareheldbytheseofficialsonbehalfofEngineersIndiaLimitedandthebeneficiaryinterestlieswithEngineersIndiaLimitedin respect of these shares.

V. INDEBTEDNESS :

TheCompanyisadebt-freecompany.

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: NIL

B. Remuneration to other directors:

Name of Directors Particulars of Remuneration- Sitting Fee

Mr.A.Jain `20000

Dr.J.P.Gupta `70000

Total `90000

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD - NIL*

*TheCompanydoesnothaveManagingDirector/Manager/WholetimeDirector/CompanySecretary.Further,ChiefExecutiveOfficeroftheCompanyisondeputationfromEIL(HoldingCompany)andthesalaryforwhichispaidbyEngineersIndiaLimited.EILraisesmonthlybillsonthebasisofmanhourcostasperagreementwiththecompanywhichareaccountedforasprofessionalcharges,underthehead“ManpowerServices”.

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL


150

1. Company’s Philosophy on Corporate Governance

TheCompanyfirmlybelievesinconsistentlypracticinggoodCorporateGovernance.TheCompany’sessentialcharacterisshapedbythevaluesoftransparency,professionalismandaccountability.TheCompanyiscommittedtoattainthehigheststandardofCorporateGovernance.ThephilosophyoftheCompanyinrelationtoCorporateGovernanceistoensuretransparencyinallitsoperations,makedisclosuresandenhanceallstakeholders’valuewithintheframeworkoflaws,regulationsandGovernmentGuidelines.

2. Board of Directors

a) Composition of the Board of Directors

CertificationEngineersInternationalLimitedisapublicsectorundertaking.TheArticlesofAssociationoftheCompanystipulatesthatthenumber of Directors shall not be less than three and more than nine.

Presently,CEILishaving4DirectorsonitsBoardcomprisingof3(three)DirectorsincludingChairmanand1(one)Non-official(Independent)DirectornominatedbyHoldingCompany,EngineersIndiaLimited.

b) Number of Board Meetings

TheBoardofDirectorsmet6timesduringthefinancialyear2014-15.ThedetailsoftheBoardMeetingsareasunder:

Sl. No. Date of Meeting Place Board Strength No. of Directors Present1. April29,2014 NewDelhi 5 52. May23,2014 NewDelhi 5 53. August12,2014 NewDelhi 5 44. November7,2014 NewDelhi 4 45. December17,2014 NewDelhi 4 46. February16,2015 NewDelhi 4 3

c) Attendance record of Directors at Board Meetings and Annual General Meeting and number of other Directorships/Committee Memberships/ Chairmanships.

AttendanceofeachDirectorattheBoardMeetingsandatthelastAnnualGeneralMeetingheldduringthefinancialyear2014-2015andnumberofotherDirectorships/CommitteeMemberships/Chairmanshipsofeachdirectorisgivenbelow:

Name of the Director Attendance Particulars Number of other Directorships / Committee Memberships / Chairmanships

Board Meetings

Last AGM held on

12.08.2014

Other Director-ships

Committee Memberships**

Committee Chairmanships**

A) Part time Directors- From Holding Company, EIL


ShriA.K.Purwaha,Chairman 6 Yes 4 - -

ShriSanjayGupta 6 Yes 5 - -

ShriSudershanGupta 6 Yes 1 - -

B) Non-official Independent Directors


Dr.J.P.Gupta 5 Yes 1 1 -

II) Past Directors

ShriAditJain* 2 Yes 5 - 1

Remarks:

*ShriAditJain,Non-official IndependentDirectorceasedtobeDirectoroftheCompanyw.e.f.28.08.2014duetohiscessationfromEngineersIndiaLimited,theholdingCompany.

**NoneofDirectorsontheBoard isamemberofmorethan10committeesorchairmanofmorethan5committeesacrossall thecompanies in which he is a Director. Membership/ Chairmanship in committee is reckoned pertaining to Audit Committee andStakeholdersRelationshipCommitteeandbasedondisclosuresreceivedfromDirectors.

Annexure to Directors’ Report

Report on Corporate Governance


151

Notes:

(i) NoneoftheIndependentDirectorsareholdingdirectorshipsinmorethansevenlistedcompanies.(ii) Thecompanyhasnotissuedanyconvertibleinstruments.

d) Board Procedure

ThemeetingsoftheBoardofDirectorsaregenerallyheldattheCompany’sRegisteredOfficeinNewDelhi.Themeetingsaregenerallyscheduledwellinadvance.Incaseofexigenciesorurgency,resolutionsarepassedbycirculation.TheBoardmeetsatleastonceaquartertoreviewthequarterlyperformanceandthefinancialresults.Thetimegapbetweentwomeetingswasnotmorethanthreemonths.TheagendaforthemeetingsispreparedbytheconcernedofficialsandsponsoredbyCEOoftheCompany.TheBoardpapersarecirculatedtotheDirectorsinadvance.ThemembersoftheBoardhaveaccesstoallinformationandarefreetorecommendinclusionofanymatterintheagendafordiscussion.SeniorexecutivesareinvitedtoattendtheBoardmeetingsandprovideclarificationasandwhenrequired.ToenablebetterandmorefocusedattentionontheaffairsoftheCompany,theBoarddelegatescertainmatterstoCommitteesoftheBoard set up for the purpose.

e) Code of Business Conduct and Ethics for Board Members and Senior Management TheBoardofDirectorshaslaiddowntheCodeofBusinessConductandEthicsforallBoardMembersandSeniorManagementofthe

Company.ThesamehasalsobeenpostedontheWebsiteoftheCompanyathttp://ceil.co.in/company.html.

Declaration as required under DPE Guidelines on Corporate Governance for CPSEsAlltheMembersoftheBoardandSeniorManagementPersonnelhaveaffirmedcomplianceoftheCodeofBusinessConductandEthicsforthefinancialyearendedonMarch31,2015.

Place:NewDelhi(S.D. Kherdekar)Date:May14,2015ChiefExecutiveOfficer

f) Compliance Reports Tothebestoftheknowledgeandbelief,theCompanyiscomplyingwithallapplicablelawsasondateexceptthecompositionofBoard

ofDirectorsandAuditCommitteeoftheBoard.TheBoardhasreviewedComplianceReportofallLawsapplicabletotheCompanyandthestepstakenbytheCompanytorectifyinstancesofnon-compliances.

g) Appointment/Re-appointment of Directors ThebriefresumeoftheDirectorsseekingappointment/re-appointmenttogetherwiththenatureoftheirexpertiseinspecificfunctional

areas,namesofcompaniesinwhichheholdsdirectorshipsandthememberships/chairmanshipsofCommitteesoftheBoardalongwiththeir shareholding in theCompanyetc.pursuant to thestatutory requirements isannexed to theNoticecalling theAnnualGeneralMeeting.

3. Audit Committee Presently,theAuditCommitteecomprisesofthreeMembersviz.Dr.J.P.Gupta,Director,ShriSanjayGupta,DirectorandShriSudershan

Gupta,Director.Dr.J.P.Gupta,DirectorisactingastheChairmanoftheCommittee.TheCommitteewasreconstitutedduringthefinancialyear2014-15duetothefollowing:

-ShriAditJainceasedtobeDirectoroftheCompanyandconsequentlyceasedtobetheChairmanw.e.f.28.08.2014. -Dr.J.P.Gupta,Non-officialIndependentDirectorwasinductedasChairmanoftheCommitteew.e.f.28.08.2014. Thetermsofreference/scope,roleandpowersetc.oftheAuditCommitteeareinaccordancewithDPEGuidelinesonCorporateGovernance

forCPSEs.Thedetailsofmeetingsheldduringthefinancialyear2014-15andtheattendanceoftheMembersisgivenbelow:

Sl. No. Date of Meeting Name Chairman/Member Attendance

1. 23.05.2014 ShriAditJainDr.J.P.GuptaShriSanjayGuptaShriSudershanGupta

ChairmanMemberMember Member


2. 12.08.2014 ShriAditJainDr.J.P.GuptaShriSanjayGuptaShriSudershanGupta

ChairmanMember*Member Member

Not PresentPresentPresentPresent

3. 7.11.2014 Dr.J.P.GuptaShriSanjayGuptaShriSudershanGupta

ChairmanMember Member

PresentPresentPresent

4. 16.02.2015 Dr.J.P.GuptaShriSanjayGuptaShriSudershanGupta

ChairmanMember*Member

Not PresentPresentPresent

*ChairmanoftheMeeting.


152

4. Subsidiary Companies

The Company is not having any subsidiary company.

5. Remuneration Committee/Remuneration of Directors

ThecompanyhasformedaRemunerationCommitteeasperDPEOMdated26thNovember,2008regardingpayrevisionofCPSEexecutives.Presently,Dr.J.P.Gupta,Director,ShriSanjayGupta,DirectorandShriSudershanGupta,DirectorarethemembersoftheCommittee.Dr.J.P.Gupta,DirectorisactingasChairmanoftheCommittee.TheCommitteemetonceduringtheyear2014-15on16.02.2015inwhichallthemembersoftheCommitteewerepresentexceptDr.J.P.Gupta.ShriSanjayGupta,memberchairedthemeetingheldon16.02.2015.

The scope of the Remuneration Committee includes finalizing the salary structure, applicable perks & allowances and deciding theannualbonuspool/variablepay&policyfor itsdistributionacrosstheexecutivesandNon-UnionisedSupervisorswithprescribed limits.RemunerationCommitteemayalsobecalledupontodecideissueslikeESOPschemes,PerformanceIncentiveSchemes,SuperannuationBenefitsandanyotherFringeBenefitswhichmaybeconsideredappropriate.TheRemunerationcommitteeshallalsoassisttheBoardinensuringthatappropriateandeffectiveremunerationpackagesandpoliciesareimplementedinCEILforallemployeesincludingDirectorsandChairman.TheCommittee’srolealsoextendstothereviewofNon-ExecutiveDirectors’fees.

There is nopecuniary relationship or transactions of theNon-Executivedirectors vis-à-vis the company. Thepart-timeofficial directorsotherthannon-officialIndependentDirectorsnominatedontheBoarddonotdrawanyremunerationfromtheCompanyfortheirroleasdirector.Thesittingfeesfixedforpart-time(nonofficial)independentdirectorsoftheCompanyis`10,000/-permeetingoftheBoardoritsCommitteethereofattendedbythem.

ThedetailsofpaymentstowardssittingfeestoNon-officialIndependentDirectorduringthefinancialyear2014-15aregivenbelow:-

Name of Part-time (non-official) Independent Director

Sitting Fees* Total

Board Meeting Committee Meeting

ShriAditJain 10000 10000 20000

Dr.J.P.Gupta 40000 30000 70000

*GrossFeesexcludingTaxDeductedatSourceasperapplicableTaxLawsandRules.

6. CSR and SD Committee of the Board

TheSDCommitteeof theBoardhasbeenconstituted todeliberateanddecideon themattersasperdefinedScopeof thecommittee.Presently,Dr.J.P.Gupta,Director,ShriSanjayGupta,DirectorandShriSudershanGupta,DirectorarethemembersoftheCommittee.Dr.J.P.Gupta,DirectorisactingasChairmanoftheCommittee.Thecommitteewasreconstitutedduringthefinancialyear2014-15duetoinductionofDr.J.P.GuptaasChairmaninplaceofShriAditJain,ChairmanwhoceasedtobeDirectoroftheCompanyw.e.f.28.08.2014.FurthertheSDcommitteewasrenamedasCSRandSDcommitteeoftheBoardw.e.f.16.02.2015.Nomeetingwasheldduringthefinancialyear2014-15.

7. Accounting Treatment

The Financial statements have been prepared as per generally accepted accounting principles and in accordance with the prescribedAccountingStandards.

8. CEO/CFO Certification

TheCEOandHeadoftheFinanceFunctioni.eAGM(F&A)havegiventhecertificatetotheBoardaswellasdisclosedtherequiredinformationtotheStatutoryAuditorsandtheAuditCommitteeintermsofDPEGuidelinesonCorporateGovernanceandthesameisannexedtothisReport.

9. Risk Management

TheCompanyhaswelldefinedRiskManagementpolicy.TheobjectiveofriskmanagementintheCompanyistoactasenablerinmaintainingitsknowledgeedge,sustainingandexpandingthebusiness,beingcompetitiveandensuringexecutionofprojectswithinbudgetedcostandtimeresultinginimprovedturnoverandprofitability.Themanagementiscommittedtofurtherstrengthenitsriskmanagementcapabilitiesinordertoprotectandenhanceshareholdervaluebyimprovingitsbusinessperformance.Continuouseffortsincreatingnewopportunities,improvingcompetencies/knowledgeinvariousareasleadingtoimprovedperformanceandleveragingexistingknowledgeresources,inlinewiththeriskappetiteofthecompany,hasenabledthecompanytoprotecttheshareholdersinterests.


153

10. General Body Meetings

i) Annual General Meeting (AGM)

TheAnnualGeneralMeetingsoftheCompanyareheldatNewDelhiwheretheregisteredofficeoftheCompanyissituated.Thedetailsofsuchmeetingsheldduringthelastthreeyearsareasunder:

AGM Year Venue Date Time

17th 2011-2012 EIB,1,BhikaijiCamaPlace,NewDelhi-110066. 26.07.2012 3.30p.m

18th 2012-2013 EIB,1,BhikaijiCamaPlace,NewDelhi-110066. 5.08.2013 3.30p.m.

19th 2013-2014 EIB,1,BhikaijiCamaPlace,NewDelhi-110066. 12.08.2014 11.00a.m.

ii) Details of Special Resolutions passed at last three AGMs

AGM Details of Special Resolutions Passed

17th Nil

18th Nil

19th Nil

Nospecialresolutionswereputthroughpostalballotduringthelastyear.NospecialresolutionisproposedtobepassedthroughpostalballotattheensuingAnnualGeneralMeeting.

iii) No Extra-ordinary General Meeting of the Members was held during the Financial Year 2014-15.

11. Disclosures

(i) DetailsoftransactionsbetweentheCompanyanditsholdingcompany,associates,keymanagerialpersonnelduringthefinancialyear2014-2015aregiveninPointno.2.24oftheNotestoAccountsfortheyearended31stMarch,2015.ThesetransactionsdonothaveanypotentialconflictwiththeinterestsoftheCompanyatlarge.

(ii) Therehavebeennoinstancesofnon-compliancebytheCompanyandnopenalties/stricturesimposedontheCompanybyanystatutoryauthorityonanymattersrelatedtoanyGuidelinesissuedbyGovernmentduringthelastthreeyears.

(iii)TheCompanyhascompliedwithallmandatoryrequirementsofDPEGuidelinesonCorporateGovernanceforCPSEs,saveandexceptthecompositionofBoardofDirectorsandAuditCommittee.

(iv)Duringthelastthreeyears,noPresidentialDirectiveswerereceivedbythecompany.

(v) NoExpendituresweredebitedintheBooksofAccountsduringthefinancialyear2014-15whicharenotforthepurposesoftheBusiness.

(vi)NoexpenseshadbeenincurredwhicharepersonalinnatureandincurredfortheBoardofDirectorsandthetopManagement.

(vii)Theadministrativeandofficeexpensesare24.53%ofthetotalexpenses intheFinancialyear2014-15asagainst21.98%duringtheFinancialyear2013-14.Theincreaseintheadministrativeandofficeexpensesareduetothefollowingmojorreasons:

(a) HigherDepreciationandAmortizationexpensesaspertherequirementsoftheCompaniesAct,2013.

(b) IncreaseinexpendituretowardsCorporateSocialResponsibility(CSR).

(viii)NoneoftheDirectorsofthecompanyareinter-serelatedason31stMarch,2015.

(ix)NoneoftheNon-officialIndependentDirectorsholdsanyequitysharesintheCompanyason31stMarch,2015.

12. Means of Communication

Thequarterly/yearlyFinancialresultsaredisplayedonthewebsiteviz.www.certificationengineers.comofthecompany.Thewebsiteofthecompanyalsodisplaystheofficialnewsreleases.AnnualReportisalsoavailableonthewebsiteinauserfriendlymannerandiscirculatedtothemembersandothersentitled.

13. Audit Qualifications

Thecompanyhasensuredtoremainintheregimeofunqualifiedstatements.

14. Training of Board Members

TheCompanyhasawelldefinedTrainingPolicy forBoardMemberswhich is givenon thewebsiteof theCompanyathttp://ceil.co.in/company.html.Detailedpresentationsaremadebyseniorexecutives/professionals/consultantsonbusinessrelatedissuesandtheDirectorshaveattendedseminars/conferences/programmesfromtimetotime.

15. Vigil Mechanism/Whistle Blower Policy

ThescopeofVigilMachanism/WhistleBlowerPolicyofholdingcompanyi.eEILcoversthesubsidiarycompanyalso.


154

16. General Information

i) 20th Annual General Meeting

Day and DateTimeVenue

Thursday,20thAugust,20153.30p.m.E.I.Bhavan,1,BhikaijiCamaPlace,NewDelhi-110066.

ii) Financial Year

1stDayofAprilto31stDayofMarcheveryyear.

iii) Dividend

The Board of Directors of the company have recommended payment of Final Dividend of `250pershare(onthefacevalueof`100/-each)fortheFinancialYearended31stMarch,2015subjecttoapprovalofShareholdersintheforthcomingAnnualGeneralMeeting.ThiswasinadditiontotheInterimDividendof`200/-pershare(onthefacevalueof`100/-each)paidduringtheyear.

iv) Registered office of the Company

CertificationEngineersInternationalLimited E.I.Bhawan, 1,BhikaijiCamaPlace, NewDelhi-110066. CIN:U74899DL1994GOI062371 Tel.No.011-26762121,Fax:011-26164868,011-26192693 Website:http://ceil.co.in

v) Auditors

M/sKapoorGoyal&Co Chartered Accountants G-1,PoojaApartment, 4,AnsariRoad,Daryaganj, NewDelhi–110002 Tel.:011-23271046 Email:[email protected]



155

We,SDKherdekar,ChiefExecutiveOfficerandG.D.Goswami,Asst.GeneralManager(Finance&Accounts)ofCertificationEngineersInternationalLimited,tothebestofourknowledgeandbelief,certifythat:

1. WehavereviewedtheFinancialresultsfortheQuarterandyearended31stMarch2015.

2. Basedonourknowledgeandinformation,theseFinancialResultsdonotcontainanyuntruestatementofamaterialfactoromitanymaterialfact or contain statements that might be misleading.

3. Basedonourknowledgeandinformation,theseFinancialResultstogetherpresentatrueandfairviewofthecompany’soperationsforthequarter&periodandareincompliancewiththeexistingAccountingStandardsand/orapplicableLawsandRegulations.

4. Tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringthequarterandperiod,arefraudulent,illegalorviolativeoftheCompany’sCodeofConduct.

5. Weareresponsibleforestablishingandmaintaininginternalcontrolsoverfinancialreportingandwehaveevaluatedtheeffectivenessofsuch controls.

6. Wehavedisclosed,whereverapplicable,totheCompany’sAuditorsandAuditCommittee:

a) Anydeficiencies in thedesign or operationof internal control for financial reporting including any corrective actionwith regard todeficiencies.

b) Significantchangesininternalcontroloverfinancialreportingduringthequarterandperiod

c) SignificantchangesinaccountingPoliciesduringthequarter&periodandtheimpactthereof,ifany,havebeendisclosedinNotestotheFinancial Results.

d) Instancesofsignificantfraud,ofwhichweareaware,thatinvolvesmanagementorotheremployeeswhohavesignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.

Place:NewDelhi SDKherdekar GDGoswamiDate:May14,2015 ChiefExecutiveOfficer AGM(F&A)

Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification

Annexure to Report on Corporate Governance


156

To,

The Members


WehaveexaminedthecomplianceofGuidelinesonCorporateGovernancebyCERTIFICATIONENGINEERSINTERNATIONALLIMITEDfortheyearended31stMarch,2015,asstipulatedinO.MNo.18(8)/2005-GMdated14.05.2010oftheMinistryofHeavyIndustriesandPublicEnterprises,DPE,GovernmentofIndia.

ThecomplianceofGuidelinesonCorporateGovernance is theresponsibilityoftheManagement.Ourexaminationwas limitedtoreviewofproceduresandimplementationsthereof,adoptedbytheCompanyforensuringtheComplianceofGuidelinesonCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

InouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousbytheManagement,wecertifythat,except the Composition of the Board of Directors and Audit Committee, theCompanyhascompliedwiththeGuidelinesonCorporateGovernanceasstipulatedinabovementionedO.M.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

ForKAPOORGOYAL&CO.CHARTEREDACCOUNTANTS

(TARUNKAPOOR)PARTNER

M.No.095949FirmRegistrationNo.001370N

Place:NewDelhiDated:May14,2015

Auditors’ Report on Corporate Governance


157


TheCompositionoftheBoardofDirectorsandAuditCommitteeasperDPEGuidelinesonCorporateGovernancehasnotbeencompliedwith.

TheCompanyispursuingwiththeMinistryofPetroleum&NaturalGas(MoP&NG),Governmentof Indiaforappointmentofsufficientnumber of Directors on the Board of the Company.

Management’s Reply to Auditors’ Report on Corporate Governance (2014-15)


158

TO,THE MEMBERS OF CERTIFICATION ENGINEERS INTERNATIONAL LIMITED

Report on the Financial StatementsWe have audited the accompanying financial statements of CERTIFICATION ENGINEERS INTERNATIONAL LIMITED (“the Company”), whichcomprisetheBalanceSheetasat31/03/2015,theStatementofProfitandLoss,thecashflowstatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedinthe audit report under the provisions of the Act and the Rules made thereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare free from material misstatement.

Anaudit involvesperformingprocedures toobtain audit evidence about the amounts and thedisclosures in thefinancial statements. Theprocedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financialstatements,whetherduetofraudorerror. Inmakingthoseriskassessments,theauditorconsiders internalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelieve that theauditevidencewehaveobtained is sufficientandappropriate toprovideabasis forourauditopiniononthefinancialstatements.

OpinionInouropinionandtothebestofour informationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasat31/03/2015,anditsProfitandit’scashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements1. AsrequiredbytheCompanies(Auditors’Report)Order,2015(“theOrder”)issuedbytheCentralGovernmentofIndiaintermsofsubsection

(11)ofsection143oftheCompaniesAct,2013.WegiveintheAnnexureAstatementsonthemattersspecifiedinparagraphs3and4oftheorder,totheextentapplicable.

2. TheComptroller&AuditorGeneralofIndiahasissueddirectionsundersection143(5)oftheCompaniesAct2013complianceofwhicharesetoutinAnnexure1&Annexure2

AsrequiredbySection143(3)oftheAct,wereportthat:

(a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposes of our audit.

(b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthose books.

Independent Auditor’s Report


159

(c) TheBalanceSheet,theStatementofProfitandLoss,andthecashflowstatementdealtwithbythisReportareinagreementwiththebooks of account.

(d) Inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

(e) Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31/03/2015takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedas31/03/2015frombeingappointedasadirectorintermsofSection164(2)oftheAct.

(f) With respect to theothermatters tobe included in theAuditor’sReport in accordancewithRule11of theCompanies (Audit andAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements.

ii. TheCompanyhasmadeprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts.

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.


FORKAPOORGOYAL&CO(CharteredAccountants)

RegNo.:001370N

Tarun KapoorPartner

M.No.:095949


160

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(1) In Respect of Fixed Assets

(a) Thecompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixedassets.

(b) Fixedassetshavebeenphysicallyverifiedbythemanagementatreasonableintervals;Nomaterialdiscrepancieswerenoticedonsuchverification.

(2) In Respect of Inventory

(a) TheCompanybeingaservicecompanydoesnothaveanyinventoryofrawmaterialorfinishedgoods,theworkinprogressisonaccountof“continuingserviceprojects”forwhichbillshavenotbeenraised,however,thereisinventoryofofficestationery.

Physicalverificationofinventorystationeryhasbeenconductedatreasonableintervalsbythemanagement.

(b) Proceduresforphysicalverificationofinventorystationeryfollowedbythemanagementisreasonableandadequateinrelationtothe size of the company and the nature of its business. There is no inadequacies in such procedures that should be reported.

(c) Company is maintaining proper records of inventory stationery & stores. Nomaterial discrepancies were noticed on physicalverification.

(3) Loans and advances to parties covered under section 189

TheCompanyhasnotgrantedanyloans,securedorunsecuredtoCompanies,Firmsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct.

(a) N.A.whetherreceiptoftheprincipalamountandinterestarealsoregular.

(b) There is no overdue amount of any loans, secured or unsecured to companies, firms or other parties covered in the registermaintainedundersection189oftheCompaniesAct

(4) Internal Control in reference to Purchase of Inventory and Fixed Assets and whether there is continued failure of Internal control

Inouropinionandaccordingtotheinformationandexplanationsgiventousthereareadequateinternalcontrolsystemcommensuratewiththesizeofthecompanyandthenatureofitsbusinessforthepurchaseofinventoryandfixedassetsandforthesaleofgoodsandservices.DuringthecourseofauditWehavenotobservedcontinuingfailuretocorrectmajorweaknessesininternalcontrolsystem.

(5) Rules followed while accepting Deposits

NodepositswithinthemeaningofSections73to76oranyotherrelevantprovisionoftheActandrulesframedthereunderhavebeenaccepted by the Company.

(6) Maintenance of cost records

TheCompanyisnotrequiredtomaintaincostrecordspursuanttotheRulesmadebytheCentralGovernmentforthemaintenanceofcostrecordsundersub-section(l)ofsection148oftheCompaniesAct.

(7) According to the information and explanations given to us in respect of statutory dues

(a) Thecompanyisregularindepositingtheundisputedstatutoryduesincludingprovidentfund,employees’stateinsurance,income-tax,sales-tax,wealthtax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtaxorcessandanyotherstatutorydueswiththeappropriateauthorities.Noundisputedamountspayableinrespectoftheaforesaidstatutorydueswereoutstandingasatthelastdayofthefinancialyearforaperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) AccordingtotherecordsoftheCompany,therearenoduesofprovidentfund,employees’stateinsurance,income-tax,sales-tax,wealthtax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtaxorcessandanyotherstatutorydueswiththeappropriateauthoritiesthathavebeennotbeendepositedonamountofanydisputeexceptServicetax&IncomeTaxdetailedhereunder:-

Name of the statute

Nature of Dues Amount (` In lacs ) Period to which the amount relates

Forum where dispute is pending

ServiceTax,asperFinanceAct1994

ShowCauseNoticecumDemand of service Tax

227.47 April‘04toMarch‘09 Commissioner,ServiceTax,Mumbai



3.21 April‘09toMarch‘10 Commissioner,ServiceTax,Mumbai



8.92 April‘10toMarch‘11 AdditionalCommissioner,ServiceTax,Mumbai




Annexure to the Independent Auditors’ ReportANNEXURE-A


161




IncomeTaxAct,1961

AssessmentU/S143(3)oftheIncomeTaxAct,1961

1.31 April’10toMarch‘11 Commissioner of Income Tax(Appeals)

IncomeTaxAct,1961


42.63Short credit of TDS

April’10toMarch‘11 ApplicationU/S154filedbeforeDeputyCommissioner of Income Tax

IncomeTaxAct,1961


91.91Short credit of TDS

April’12toMarch‘13 ApplicationU/S154filedbeforeDeputyCommissioner of Income Tax

(c) Asinformed,noamountwasrequiredtobetransferredtoInvestorseducationandprotectionfundinaccordancewiththerelevantprovisions of the Companies Act and the rules made thereunder.

(8) Company which has been registered for a period less than five years and accumulated losses are more than 50% of Net worth, Reporting of cash Losses

Thecompanydoesnothaveanyaccumulatedlossesattheendofthefinancialyearandhasnotincurredcashlossesinthefinancialyearandintheimmediatelyprecedingfinancialyear.

(9) Default in Repayment of Loans taken from Bank or Financial Institutions

Thecompanyhasnotdefaultedinrepaymentofduestofinancialinstitutionorbank.

(10) Terms for Loans and Advances from Banks or Financial Institutions prejudicial to the interest of the company

Onthebasisofrecordsexaminedbyusandinformationprovidedbythemanagement,weareoftheopinionthatthecompanyhasnotgivenguaranteesforloanstakenbyotherfrombanksorfinancialinstitutions.

(11) Application versus purpose for which Loan Granted

The company did not have any term loans outstanding during the year.

(12) Reporting of Fraud During the Year Nature and Amount

Basedupontheauditproceduresperformedforthepurposeofrecordingthetrueandfairviewofthefinancialstatementsandaspertheinformationandexplanationsgivenbythemanagement,wereportthatnofraudonorbythecompanyhasbeennoticedorreportedduring the course of our audit.



RegNo.:001370N

Tarun KapoorPartner

M.No.:095949


162

1 If theCompanyhasbeenselected fordisinvestment,a completestatusreportintermsofvaluationofAssets(includingintangibleassets and land) and Liabilities (including Committed&GeneralReserves)maybeexaminedincludingthemodeandpresentstageof disinvestment process.

The Clause is not applicable

2 Please report whether there are any cases of waiver/ write offofdebts/loans/interestetc., ifyes, thereasonsthere forandtheamount involved.

There isawriteoffofdebts/Advancesof`78.95Lacsduring theyear 2014-15 (`7829763/- doubtful Debt & `65435/- SecurityAdvance).Asexplainedbythemanagementtheamountofdebtorsareoldandnonrecoverable.TheManagementaftermakinglotofefforthasdecidedtowriteoff,exceptfor`2.55Lacs,thebalancedebts/advanceshavebeenprovidedforinpreviousyears.

3 Whether proper records are maintained for inventories lyingwith third parties & assets received as gift from Govt. or otherauthorities.


4 Areportonage-wiseanalysisofpendinglegal/arbitrationcasesincludingthereasonsofpendencyandexistence/effectivenessofamonitoringmechanismforexpenditureonalllegalcases(foreignandlocal)maybegiven.


5 CompliancetoSection22ofMicroSmallandMediumEnterprisesDevelopment (MSMED) act, 2006 in the financial reportingmayalso be examined and the extent of non compliance may be reportedinyourAuditReportunderSection227oftheCompaniesAct.

TheManagement has sent letters in the month of March 2015to get confirmation from service providers and suppliers, theirregistration status under the Act. Two of the service providersand supplier have confirmed their registration under the Act inthemonth of April 2015. As explained by themanagement thecompany has complied to section 22 of The Micro, small andMediumEnterprisesDevelopment(MSMED)Act,2006fortheyearended31.3.2015.



RegNo.:001370N

Tarun KapoorPartner

M.No.:095949

Supplementary-Directions to the Statutory AuditorsANNEXURE 1

WehaveconductedtheauditofaccountsofM/sCertificationEngineersInternationalLtd,fortheyearending31.3.2015inaccordancewiththedirections/subdirectionsissuedbytheComptrollerandAuditorGeneralofIndiaunderSection143(5)oftheCompaniesAct,2013andcertifythatwehavecompliedwithallthedirections/sub-directionsissuedtous.

KAPOORGOYAL&CO(FRN001370N)CHARTEREDACCOUNTANTS

PARTNERTARUN KAPOOR MNo.095949


Compliance CertificateANNEXURE 2


163

(` IN LAKHS)

PARTICULARS NOTE NO. AS AT 31ST MARCH 2015

AS AT 31ST MARCH 2014

EQUITY AND LIABILITIESSHAREHOLDERS` FUNDSSHARECAPITAL 2.1 100.00 100.00RESERVES&SURPLUS 2.2 5,859.84 5,959.84 5,527.02 5,627.02

NON-CURRENT LIABILITIES 2.3 OTHERLONGTERMLIABILITIES - 3.80LONGTERMPROVISION 294.16 294.16 241.84 245.64

CURRENT LIABILITIES 2.4 TRADEPAYABLES 136.83 128.79OTHERCURRENTLIABILITIES 257.41 128.95SHORTTERMPROVISION 512.11 906.35 327.10 584.84

TOTAL 7,160.35 6,457.50 ASSETS

NON-CURRENT ASSETS

FIXED ASSETS 2.5TANGIBLEASSETS 243.61 283.73INTANGIBLEASSETS 1.66 245.27 2.84 286.57

DEFERRED TAX ASSETS (NET) 2.25 117.07 115.04

LONG TERM LOANS AND ADVANCES 2.6 362.02 326.69

OTHER NON-CURRENT ASSETS: 2.7 BANKBALANCES 35.94 123.06OTHERS 5.75 41.69 7.83 130.89

CURRENT ASSETS 2.8 CURRENTINVESTMENTS 53.19 -INVENTORIES 2.86 2.00TRADERECEIVABLES 1,425.32 1,092.26CASHANDBANKBALANCES 4,137.55 3,805.19SHORT-TERMLOANSANDADVANCES 158.95 208.62OTHERCURRENTASSETS 616.43 6,394.30 490.24 5,598.31

TOTAL 7,160.35 6,457.50

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

1 & 2

(S D KHERDEKAR)ChiefExecutiveOfficerPAN:ADQPK1440B

(SUDERSHAN GUPTA) Director

DIN:00813955

(A K PURWAHA)Chairman

DIN:00165092

AsperourreportofevendateattachedFor KAPOOR GOYAL & CO

Chartered AccountantsFirmRegn.No.001370N


(TARUN KAPOOR)Partner

M.No.095949

Balance SheetASAT31STMARCH,2015


164

(` IN LAKHS)

PARTICULARS NOTE NO. 2014-15 2013-14A. REVENUE

I.REVENUEFROMOPERATIONS 2.9 3,440.43 2,763.00II.OTHERINCOME 2.10 488.90 444.88

TOTAL REVENUE (I + II) 3,929.33 3,207.88

B. EXPENSESMANPOWERSERVICES 2.11 875.67 769.28EMPLOYEEBENEFITEXPENSE 2.12 799.65 732.78DEPRECIATIONANDAMORTIZATIONEXPENSE 2.13 48.91 18.55OTHER EXPENSES : 2.14FACILITIES 142.03 128.75CORPORATECOSTS 40.03 25.22OTHERSCOSTS 684.33 561.44

TOTAL EXPENSES 2,590.62 2,236.02

PROFIT FOR THE YEAR (A-B) 1,338.71 971.86

LESS:PRIORPERIODADJUSTMENTS(NET) 2.26 — 13.81

PROFIT BEFORE TAX 1,338.71 958.05

LESS : TAX EXPENSECURRENTTAX 463.71 332.70DEFERREDTAX (0.90) (8.61)

PRIOR PERIOD TAX ADJUSTMENTS (NET):CURRENTTAX — (2.10)DEFERREDTAX — —

PROFIT AFTER TAX 875.90 636.06

EARNING PER SHARE (IN `)-FACE VALUE `100/- per share 2.32(1)BASIC 875.90 636.06(2)DILUTED 875.90 636.06

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS 1 & 2



DIN:00813955


DIN:00165092





M.No.095949

Statement of Profit & Loss FORTHEYEARENDED31STMARCH2015


165

(` IN LAKHS)

Year endedon 31.03.2015

Year endedon 31.03.2014

A Cash Flow from Operating ActivitiesNetProfitbeforeTaxAndPriorPeriodItems 1,338.71 971.86

Adjustment for :DepreciationandAmortization 48.91 18.55ProvisionforPostRetirement&LongTermBenefits 63.33 65.16ProvisionforDoubtfulDebts/Advances (70.58) 4.48Interest Income (393.58) (383.89)Dividend Income (5.67) (4.64)Capital Loss on sale of MF units — 0.19OperatingProfitbeforeWorkingCapitalChanges 981.12 671.71

Adjustment for :Debtors (265.98) 109.82Other Current Assets (87.64) 0.13Loans&Advances 39.38 (102.34)Inventories (0.86) 0.23Work-in-progress (1.00) 0.11TradePayablesAndOtherLiabilities 132.70 (78.54)

CashGeneratedfromOperations 797.72 601.12

Direct Taxes Paid (378.15) (350.79)

CashFlowbeforePriorPerioditems 419.57 250.33

Prior period items — (13.81)

NetCashFlowfromOperatingActivities A 419.57 236.52

B Cash Flow from Investing Activities

PaymentsTowardsCapitalExpenditure (10.94) (7.02)Interest Income 358.13 365.74Dividend Income 5.67 4.64Changes in Term Deposit Over Three (264.16) (145.35)Months Original MatuirityCurrentInvestments(Net) (53.19) 15.00

NetCashFlowfromInvestingActivities B 35.51 233.01

C Cash Flow from Financing Activities

Dividend Paid (400.00) (400.00)Tax on Dividend (73.98) (67.98)

NetCashFlowfromFinancingActivities C (473.98) (467.98)

Cash Flow Statement FORTHEYEARENDEDON31STMARCH,2015


166

Year ended on 31.03.2015

Year ended on 31.03.2014

Increase/(Decrease) in Cash (18.90) 1.55& Cash Equivalents (A+B+C)

Opening Balance 81.79 80.24(CashandCashEquivalents)

Closing Balance 62.89 81.79(CashandCashEquivalents)

Notes :1.TheaboveCashFlowStatementhasbeenpreparedunderthe“Indirect

Method”assetoutinAccountingStandard-3“CashFlowStatement”.2.CashandCashEquivalentsrepresents:

CashonHandBalanceswithBanksinCurrentAccounts

0.0562.84 62.89

0.0981.70 81.79

3.Previousyear’sfigureshavebeenregroupedwherevernecessaryinordertoconformtothisyearpresentation.



DIN:00813955


DIN:00165092





M.No.095949

Cash Flow Statement (Contd.)FORTHEYEARENDEDON31STMARCH,2015

(` IN LAKHS)


167

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Theaccountsarepreparedonhistoricalcostconceptbasedonaccrualmethodofaccountingasagoingconcern,andconsistentwithgenerallyacceptedaccountingprinciplesinaccordancewiththemandatoryaccountingstandardsanddisclosurerequirementsaspertheprovisionsoftheCompaniesAct,2013.

1.2 INCOME FROM SERVICES RENDERED IS ACCOUNTED FOR:

(a) Incaseofcostplus/ratebasisjobs,onthebasisofamountbillableunderthecontracts.

(b) Incaseoflumpsumcontracts,asproportionofactualdirectcostsoftheworktodatetothelatestestimatedtotaldirectcostsofthework,and

(c) Incaseofcontractsprovidingforapercentagefeesonequipment/materialvalue/projectcost,onthebasisofphysicalprogressascertifieduptotheclosingdateofaccountingyear.

1.3 WORK-IN-PROGRESS

I) CostofjobsarecarriedforwardasWork-in-Progressforwhich:

(a) Thetermsofremunerationreceivablebythecompanyhavenotbeensettledand/orscopeofworkhasnotbeenclearlydefinedandtherefore,itisnotpossibleintheabsenceofsettledtermstodeterminewhetherthereisaprofitorlossonsuchjobs.However,incaseswhereminimumundisputedtermshavebeenagreedtobytheclients,incomehasbeenaccountedforonthebasisofsuchundisputedtermsthoughthefinaltermsarestilltobesettled.

(b) Thetermshavebeenagreedtoatlumpsumbasisbutthephysicalprogressislessthan25%ofthejob.

II)Work-in-Progressisvaluedatdirectcost.

1.4 CASH & CASH EQUIVALENT

i) Cashcomprisescashonhandanddemanddepositsi.e.balancesheldwithbanksincurrentaccountsforunrestrictiveuse;

ii) Cashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.Thecompanyconsidersunrestrictivetimedepositswithbankshavinganoriginalmaturity of three months or less as cash equivalent.

1.5 FIXED ASSETS

Fixedassetsarestatedatcost,whichcomprisesofpurchaseprice,duties,leviesandanydirectlyattributablecostofbringingtheassetstotheirworkingcondition.

1.6 IMPAIRMENT OF ASSETS

Impairmentofcashgeneratingassetsarereviewedforimpairmentwheneveraneventorchangesincircumstancesindicatethatcarryingamountofsuchassetsmaynotberecoverable.Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognizedismeasuredbytheamountbywhichthecarryingamountoftheassetsexceedsthefairvalueofassets.IfitisfoundthatsomeoftheimpairmentlossesalreadyrecognizedneedstobereversedthesamearerecognizedinthestatementofProfit&LossAccountintheyearofreversal.

1.7 DEPRECIATION :

(a) DepreciationonFixedAssetsischargedonstraight-linemethodonthebasisofestimatedeconomiclivesprescribedunderScheduleIIoftheCompaniesAct,2013.

(b) Incaseofsoftwarestraightlinemethodandlifeexpectancyofthreeyearsisconsidered.

(c) IncaseofassetswhereactualcostdoesnotexceedRupeesFiveThousands,100%depreciationisprovided.

(d) 100%depreciationisprovidedonlibrarybooks,beinglowvalueitems.

(e) Leaseholdpropertiesareamortizedatratesbasedontheperiodoflease,orestimatedeconomiclivesprescribedunderScheduledIIoftheCompaniesAct,2013,whicheverishigher.

1.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisionsareliabilitiesinvolvingsubstantialdegreeofestimationarerecognizedwhenthereisapresentobligationasaresultofpasteventhavingprobabilityofoutflowofresourcesandareliableestimatecanbemadeofsuchanobligation. Contingent liabilitiesaredisclosedbywayofnoteunlessthepossibilityofoutflowisremote.Contingentassetsareneitherrecognizednordisclosedinthefinancialstatements.

Significant Accounting Policies and Notes to Accounts for the Year Ended March 31, 2015


168

1.9 RETIREMENT/OTHER LONG TERM EMPLOYEE BENEFITS

(a) ContributioninrespectofProvidentFund,adefinedcontributionplan,isdepositedtoRegionalProvidentFundCommissioner.Thecompany’scontributiontoProvidentFundischargedtoProfitandLossAccountoftheyear.

(b) Liabilityinrespectofcarriedforwardleavebeingdefinedbenefitplanisrecognizedonthebasisofactuarialvaluation.

(c) LiabilityinrespectofGratuity,adefinedbenefitplan,isbeingpaidtoafundmanagedbyLICandadministeredthroughaseparateirrevocabletrustsetupbythecompany.DifferencebetweenthefundvalueandaccruedliabilitybasedonactuarialvaluationattheendoftheyearischargedtoProfit&LossAccount.

(d) Liabilityinrespectofotherlongterm/terminalemployeebenefits,beingdefinedbenefitplans,isrecognizedonthebasisofactuarialvaluation.

1.10 FOREIGN CURRENCY TRANSACTIONS

a) CurrentAssetsandCurrentLiabilitiesarebeingrecordedattheratesinforcewhentransactiontakesplace.Howeverthesearere-statedattheyear-endatBank’sclosingrates.ExchangefluctuationisaccountedforinProfitandLossAccount.

b) Foreigncurrencytransactionsinrelationtorevenueandexpenditurehavebeenaccountedforatpredeterminedaveragemonthlyrates based on market rates for preceding month.

c) Gain/LossarisingoutoffluctuationsinExchangeRateforthetransactionssettledduringtheaccountingperiodisaccountedforintheProfitandLossAccountoftherelevantyear.

1.11 INCOME TAX

a) IncomeTaxisprovidedonthetaxableincomedeterminedasperincometaxlaws.

Deferredtaxassets/liabilityisrecordedfortimingdifferenceasperAccountingStandard22issuedbytheInstituteofCharteredAccountants of India.

b) Taxondividenddistributed/paidisprovidedattheprevailingIncomeTaxrates.

1.12 INVESTMENT

Long-terminvestmentsarestatedatcost.Costincludescommission,transferchargesandrelateddirectexpenses.However,whenthereisadecline,otherthantemporary,inthevalueofalongterminvestment,thecarryingamountisreducedtorecognisethedecline.

CurrentInvestmentsi.e.investmentswhichareintendedtobeheldfornotmorethantwelvemonthsfromthedateofinvestmentarecarriedatthelowerofcostormarketvalue.


169

2. Notes to accounts for the year ended 31st March, 20152.1) Share Capital : TheCompanyatpresentishavingonlyoneclassofsharecapital,i.e.,equitysharecapital.Therequisitedisclosureinrespectofsharecapitalareas under :

(` IN LAKHS)

as at 31st March, 2015 as at 31st March, 2014 AUTHORISED200,000EquitySharesofParValueof 200.00 200.00 `100each(200,000EquityShares of Par Value of `100each)

ISSUED, SUBSCRIBED AND PAID UP*100,000EquitySharesofParValueof`100 100.00 100.00eachfullypaidup(100,000EquitySharesof Par Value of `100eachfullypaidup)

*AllsharesareheldbyHoldingCompany- 100.00 100.00 ENGINEERSINDIALTD.anditsNominees

2.2) Reserves & Surplus: TheClassificationofReserves&SurplusdisclosingtherinAppropriation/Allocation/Transfersisasunder:

(` IN LAKHS)as at 31st March, 2015 as at 31st March, 2014

A. GENERAL RESERVE Balance As Per Last Balance Sheet 5,472.84 5,358.94Less:TransfertoDepreciationReserve 2.20 — Add:TransferredfromProfit&LossAccount 345.70 5,816.34 113.90 5,472.84

B. PROFIT & LOSS ACCOUNT Balance As Per Last Balance Sheet — — Add:TransferredfromStatementofProfitandLoss 875.90 636.06 Less: Interim Dividend 200.00 200.00 Less : Proposed Dividend 250.00 200.00Less:TaxonInterim/ProposedDividend 90.88 67.98Add:TransferredfromCSRActivityReserve 34.55 — Less:TransfertoCSRActivityReserve 23.87 54.18Less:TransfertoGeneralReserve 345.70 — 113.90 —

C. CSR ACTIVITY RESERVE Balance As Per Last Balance Sheet 54.18 — Less:TransfertoProfit&LossAccount 34.55 — Add:TransferredfromProfit&LossAccount 23.87 43.50 54.18 54.18

5,859.84 5,527.02

2.3) Non-Current Liabilities: TheDisclosureofNon-CurrentLiabilitiesincludingtheirsub-classificationintomajorheadsisasunder:

(` IN LAKHS)

as at 31st March, 2015 as at 31st March, 2014A) Other Long Term LiabilitiesSecurityDeposits&Retentions — 3.80

B) Long Term ProvisionsEmployees'PostRetirement/LongTermBenefits 294.16 241.84


170

2.4) Current Liabilities: TheDisclosureofCurrentLiabilitiesincludingtheirsub-classificationintomajorheadsisasunder:

(`inLakhs)as at 31st March, 2015 as at 31st March, 2014

A) Trade Paybles 136.83 128.79

B) Other Current LiabilitiesSecurityDeposits&Retentions 15.63 12.00 Advances Received from Clients 27.07 20.84 Unearned Income Billed to Clients 118.21 10.68 Service Tax Payable 2.92 3.74 Other Payables :WithholdingforEmployeesincludingEmployers'Contribution — 9.14WithholdingforIncomeTaxes 11.56 10.73AccruedEmployeeBenefits 60.52 44.97 Others 21.50 93.58 16.85 81.69

257.41 128.95

C) Short Term ProvisionsEmployees'PostRetirement/LongTermBenefits 42.07 31.06ProvisionforTaxation 463.71 332.70 Less: Advance Income Tax 294.56 169.15 270.65 62.05 Proposed Dividend 250.00 200.00 Tax on Dividend 50.89 33.99

512.11 327.10


171

2.5) Fixed AssetsThedisclosureofFixedAssetsincludingtheirsub-classificationintomajorheadsareasunder:

(`inLakhs)

Particulars Gross Block Depreciation ** Net Block

As on31-Mar-

2014

Additionsfor the

year

Sold/Adj

As on 31-Mar-

2015

Dep upto31-Mar-

2014

Dep for the Year

Earlier year’sDepreciationAdj/ Write-

off

Total Dep as on

31-Mar-2015

WDV as on31-Mar-

2015

WDV as on31-Mar-

2014

Tangible Assets as at 31-Mar-2015

Vehicles 5.41 — — 5.41 1.20 0.97 — 2.17 3.24 4.20

Officeequipment 16.05 1.39 0.03 17.41 4.66 9.05 0.03 13.68 3.73 11.39

Furniture&Fixtures

59.93 0.30 — 60.23 25.85 16.09 — 41.94 18.29 34.08

Leasehold Property*

231.78 — — 231.78 25.76 3.94 — 29.70 202.08 206.02

AirConditioners 21.85 — — 21.85 6.39 8.48 — 14.87 6.98 15.46

Library Books 2.42 — — 2.42 2.42 — — 2.42 — —

Computers 62.96 8.98 — 71.94 50.38 12.26 — 62.64 9.30 12.58

Total 400.40 10.67 0.03 411.04 116.66 50.79 0.03 167.42 243.61 283.73

PreviousYear 395.35 5.05 — 400.40 99.39 17.28 — 116.67 283.73 295.96

*AcquiredfromCIDCOLtd.on60yearsleasebasis

Intangible Assets as at 31-Mar-2015

Software 18.55 0.27 — 18.82 15.71 1.45 — 17.16 1.66 2.84

Total 18.55 0.27 — 18.82 15.71 1.45 — 17.16 1.66 2.84

Previous Year 16.58 1.97 — 18.55 14.44 1.27 — 15.71 2.84 2.13

**Depreciationfortheyearincludes̀ 3.33LacsadditionalDepreciationadjustedwithGeneralReserveintermsofScheduleIIoftheCompaniesAct,2013forAssetswhoseusefulremaininglifeason1stApril,2014wasNIL.


172

2.6) Long Term Loans & Advances : TheDisclosureofLongTermLoans&Advancesincludingtheirsub-classificationintomajorheadsisasunder:


a)SecurityDeposit-Unsecured (Considered -Good) 78.08 64.33

b)OtherLoans&Advances(AdvancesRecoverableinCashorinKindorforValuetobereceived)-Unsecured- Considered GoodLoans&AdvancestoEmployees — — PrepaidExpenses 0.06 0.06 0.02 0.02

Advance Income Tax 2,341.16 1,986.92Less:-ProvisionforTaxation 2,069.11 272.05 1,736.41 250.51

AdvanceFringeBenefitTax 60.43 60.43Less:-ProvisionforFringeBenefitTax 48.60 11.83 48.60 11.83

362.02 326.692.7) Other Non - Current AssetsTheDisclosureofotherNonCurrentAssetsincludingtheirsub-classificationintomajorheadsisasunder:


Bank BalancesNon-CurrentBankDeposits 35.94 123.06 Includes `35.94Lakhs(`123.06Lakhs)HeldunderLienagainstBankGuarantees

35.94 123.06OthersInterestaccruedonnon-currentbankdeposits 5.71 7.75Interestaccrued-Others 0.04 0.08

5.75 7.83

2.8) Current Assets : TheDisclosureofCurrentAssetsincludingtheirsub-classificationinmajorheadsisasunder:


Current Investments (Lower of Cost or Net Realisable value) OtherThanTrade(Unquoted)5307.325units(Prev.YearNILunits)ofUTI 53.19 — Treasury Advantage Fund(FaceValue`1000/-PerUnit),valuedatcost 53.19 —

Inventories (Lower of cost or Net Realisable value) 2.86 2.00

Trade Receivables (Unsecured) Trade Receivable Outstanding for a period exceeding six months from the date they are due for payment:ConsideredGood 373.12 330.98ConsideredDoubtful 65.30 132.38

438.42 463.36Less:ProvisionforDoubtfulDebts 65.30 132.38

373.12 330.98OtherTradeReceivable:ConsideredGood 1,052.20 1,425.32 761.28 1,092.26


173


Cash and Bank Balance

Cash and Cash EquivalentsCashonHand 0.05 0.09BalanceswithBanksinCurrentAccounts 62.84 81.70 62.89 81.79

Other Bank BalancesBalanceswithBanksinDepositAccountsotherthan 4,074.66 3,723.40havingoriginalmaturityof3monthsorlessbutaredueformaturitywithin12monthsofBalanceSheetDate.**Includes`232.67Lakhs(`143.40Lakhs)HeldunderLienagainstBankGuarantees*IncludesBankDepositshavingmorethan12months original maturity of `1105.56Lakhs(`475.90Lakhs)

4,137.55 3,805.19

Short Term Loans & Advances a) Security DepositUnsecured-ConsideredGood 136.64 171.36Unsecured-ConsideredDoubtful — 3.50

136.64 174.86Less:ProvisionforDoubtfulDeposits — 136.64 3.50 171.36

b) Other Loans & Advances Advances Recoverable in Cash or in Kind or for Value to be Received(Unsecured-ConsideredGood)Loans&AdvancestoEmployees 7.62 13.55PrepaidExpenses 3.60 3.53 Others 11.09 22.31 20.18 37.26

158.95 208.62 Other Current Assets

WorkinProgress* 1.71 0.71 Interest accrued on current bank deposits 253.88 216.34InterestAccrued-Others 0.04 0.03 Unbilled Income 360.80 273.16

616.43 490.24 *Astaken,valuedandcertifiedbyManagement


174

2.9) Revenue from Operations : TheDetailsofRevenuefromOperationsintovariousCategoriesisdisclosedasunder:

(`inLakhs)

2014-15 2013-14

RevenuefromOperations 3,439.43 2,763.11

Changesinwork-in-progress

ClosingWork-in-Progress 1.71 0.71

Less:OpeningWork-in-Progress 0.71 1.00 0.82 (0.11)

TOTAL 3,440.43 2,763.00

2.10) Other Income The Details of Other Income into various categories is disclosed as under :

(`inLakhs)

2014-15 2013-14

InterestEarned(Gross)

On Bank Deposits 393.58 383.89

Dividend from Current Investments 5.67 4.64

ProvisionforDoubtfulDebtsNoLonger 89.62 6.90

RequiredWrittenBack

Provision for Unspent CSR No Longer — 47.86

RequiredWrittenBack

Income From Sale of Assets 0.03 —

ForeignExchangeDifference — 1.59

TOTAL 488.90 444.88


175

ExpensesTheDetailsofexpensesundervariousheadsaspertheirnatureisasgivenbelow:

(`inLakhs)

2014-15 2013-14

2.11) Manpower Services 875.67 769.28

2.12) Employee Benefit ExpenseSalariesandAllowances 722.98 659.76

ContributionTowardsEmployees' Pension and Provident Fund andAdministrationChargesTheron 57.73 52.65

StaffWelfare 10.56 7.11ContributiontoGratuityFund 8.38 13.26

799.65 732.78

2.13) Depreciation and Amortization Expense 48.91 18.55


176

(`inLakhs)

2014-15 2013-14

2.14) Other Expenses

a) FacilitiesRent-ResidentialAccomodation 43.79 41.95 Less: Recovered 3.83 39.96 2.59 39.36Rent(Office) 36.83 33.45Electricity&Water 21.92 16.77 Repairs to Building 2.32 2.19 Other Repairs and Maintenance 30.52 28.12 Insurance 6.53 6.34HireCharges-OfficeEquipment 3.95 2.52

142.03 128.75

b) Corporate Cost Bank Charges 2.78 4.46SittingFeesToIndependentDirector 0.90 1.00 Publicity 6.62 7.10Entertainment 5.60 5.98RemunerationtoAuditors-AuditFees 1.00 1.00-TaxAuditFees 0.20 0.20-Certification 0.13 0.98-OutofPocketExpenses&ServiceTax 1.12 2.45 1.46 3.64 Filing Fee 0.30 0.26Licences&Taxes 20.09 0.41Legal&ProfessionalCharges 1.29 2.37

40.03 25.22

c) Other CostsTravel&Conveyance 502.22 484.41Printing,Stationery&GeneralOfficeSupplies 10.09 11.58NewspapersandPeriodicals 0.13 0.07Postage&Telecommunications 14.63 15.03 Capital Loss on sale of MF units — 0.19Courier,Transportation&Handling 3.91 4.10ProvisionforDoubtfulDebts 19.05 11.38BadDebts/AdvancesWrittenOff 78.95 — ForeignExchangeDifference 3.86 — CorporateSocialResponsibilityExpenditure 34.55 16.69TrainingExpenses 4.02 7.54OtherMiscellaneousExpenses 12.92 10.45

684.33 561.44

TOTAL 2,590.62 2,236.02


177

2.15 Contingent Liabilities

a) IncomeTaxassessmentshavebeencompleteduptotheA.Y.2012-2013.Tax liability, ifany, inrespectofpendingassessmentforsubsequentassessmentyearsuptoassessmentyear2014-15cannotbeascertained.Duetaxesonselfassessmentbasishavebeenpaid.

b) TheCompanyhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)amountingto`91.91Lakhsfortheassessmentyear2012-13.

c) TheCompanyhasfiledanappealwithcommissionerof IncomeTax (Appeal) foranamountof`1.31Lakhagainst theorderofAssessingOfficeru/s143(3)fortheAssessmentYear2011-12.

d) TheCompanyhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)andotherprocessingmistakesamountingto`42.63Lakhsfortheassessmentyear2011-12.

e) TheCompanyhasfiledareplytoshowcausenoticecumdemandof`227.47LakhscreatedbyCommissioner,ServiceTax,Mumbaion27thNovember,2009,coveringtheperiodfromApril,2004toMarch,2009.

f) TheCompanyhasfiledareplytoshowcausenoticecumdemandof`3.21LakhscreatedbyCommissioner,ServiceTax,Mumbaion29thOctober,2010,coveringtheperiodfromApril,2009toMarch,2010.

g) TheCompanyhasfiledareplytoshowcausenoticecumdemandof`8.92LakhscreatedbyAdditionalCommissioner,ServiceTax,Mumbaion18thOctober,2011coveringtheperiodfromApril,2010toMarch,2011.

h) TheCompanyhasfiledareplytoshowcausenoticecumdemandof`20.91LakhscreatedbyAdditionalCommissioner,ServiceTax,Mumbaion8thNovember,2012coveringtheperiodfromApril,2011toMarch,2012.

i) TheCompanyhasfiledareplytoshowcausenoticecumdemandof`0.40LakhscreatedbyAdditionalCommissioner,ServiceTax,Mumbaion12thJune,2014coveringtheperiodfromApril,2012toMarch,2013.

j) NaviMumbaiMunicipalCorporation(NMMC)videtheirnoticedated4thMarch,2015,hasclaimed`43.90LakhsasoutstandingpropertytaxforthepropertyatCBDBelapurStation(HeadOffice).Inreply,theCompanyhasrequestedtheconcernedauthoritytocarryoutassessmentofpropertytax,andraisebillsaccordingly.Ithasalsobeenstatedthatpendingassessmentofpropertytaxandgenerationofsupportingbillstowardstheclaim,nodelayedpaymentchargesareleviable.

TheCompanyhasalreadypaidpropertytaxonself-assessmentbasisfortheperiodupto31stMarch,2015,pendingassessmentofpropertytax,priortoreceiptofthesaidnotice.Onthestrengthofalegalopinionobtainedinthisregardandinternalreview,theCompanyisconfidentthatpaymentalreadymadeisadequateinthegivencircumstances,andnoprovisiontowardsoutstandingproperty tax is necessary.

2.16 Commitments

Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedinaccounts`NIL(NIL).

2.17 GuaranteesissuedbyBanksandoutstandingason31stMarch2015`301.48Lakhs(`281.50Lakhs).

2.18 Balances of SundryDebtors, Sundry Creditors, Loans andAdvances, SecurityDeposits etc.,whether in debit or credit are subject toconfirmationandreconciliation.Amounts,whichmayremainunrecovered,shallbewrittenoffatthetimeoffinalsettlement.

2.19a) TheCompanyhasaMemorandumofUnderstandingwithEngineersIndiaLimited(TheHoldingCompany)forutilizingtheirfacilitieslikeprovidingmanpower,officespaceandotherfacilitiesetc.TheMOUprovideslevelbasedfixedmanhour/man-dayratesforEILemployeesoncostplusoverheadbasisandfixedannualcosttowardsspace,infrastructureandfacilitiesetc.

a) ThecompanyalsohasaMemorandumofUnderstandingwithEngineersIndiaLimitedforprovidingmanpowerservicestoEILatactual cost plus margin.

2.20 IntermsofSection22oftheMicro,SmallandMediumEnterprisesDevelopmentAct.2006,theamountduetotheseenterprisesarerequiredtobedisclosed.TheseenterprisesarerequiredtoberegisteredunderthatAct.Intheabsenceoftheinformationabouttheirregistration,therequiredinformationcannotbestated.

2.21 IntheopinionoftheManagement,theCurrentAssets,LoansandAdvancehaveavalueonrealizationintheordinarycourseofbusinessatleastequaltotheamountatwhichtheyarestatedandalltheknownliabilitieshavebeenprovidedfor.

2.22 Themovementinprovisionfordoubtfuldebtsanddepositsduringtheyearisasfollows:

(`inlakhs)

2014-15 2013-14

Opening Balance 135.87 131.39

Add : Amount provided during the year 19.05 11.38

Less:Amountwrittenbackduringtheyear 89.62 6.90

Closing Balance 65.30 135.87


178

2.23 TheCompanyoperatesinthenatureofservicetowardsCertificationandThirdPartyInspectionjobs,whichcomesundersinglesegment.HencesegmentreportingrequirementsunderAS-17issuedbyTheInstituteofCharteredAccountantofIndiaarenotapplicable.

2.24 RELATED PARTY DISCLOSURE

(a) ThenamesofrelatedpartiesasidentifiedinaccordancewithprovisionsoftheAccountingStandard–18“RelatedPartyDisclosure”:-

S. No. NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

1. ENGINEERSINDIALIMITED HOLDINGCOMPANY

2. KEYMANAGEMENTPERSONNELA.Mr.A.K.PURWAHAB.Mr.SANJAYGUPTAC.Mr.ADITJAIN(upto27.08.14)D.Dr.J.P.GUPTAE.Mr.SUDERSHANGUPTAF.Mr.S.D.KHERDEKAR

ChairmanDirectorDirectorDirectorDirectorCEO

C&MDinEILDirectorinEILDirectorinEILDirectorinEIL

EDinEILEDinEIL

(b)(1)RELATEDPARTYTRANSACTIONS

Duringtheyearended31stMarch2015,thecompanyhadfollowingtransactionswithrelatedparties:

(`inLakhs)

Name of related party Particulars Relationship Amount Payable/Receivable as on 31.3.15

EngineersIndiaLimited Purchase of Professional &Technicalservicesand

Facilities

HoldingCompany 273.06(330.26)

Payable 22.65(35.18)

-do- Executionofcontractforservices

-do- 405.79(231.10)

Receivable 137.23(38.83)

-do- Dividend(Interim&Final)

-do- 400.00(400.00)

(2) Director’sRemuneration:

SittingFeespaidtoparttimeDirectors`0.90Lakhs(`1.00Lakh)

(c) ChiefExecutiveOfficeroftheCompanyisondeputationfromEIL(HoldingCompany)andthesalaryforwhichispaidbyEngineersIndiaLimited.EILraisesmonthlybillsonthebasisofmanhourcostasperagreementwiththecompanywhichareaccountedforasprofessionalcharges,underthehead“ManpowerServices”.

2.25 Deferred Tax Assets (Net):

AsperAccountingStandard(AS-22)“Accountingfortaxesonincome”,themajorcomponentsofdeferredtaxassetsandliabilitiesarisingonaccountoftimingdifferencesare:

(`inLakhs)S.No. Particulars of Deferred Tax Assets / (Liabilities) Upto 31-03-2014 For the year 2014-15 As on 31-03-2015

A. Deferred Tax Assets1. ProvisionforLeaveEncashment 95.09 20.09 115.182. ProvisionforDoubtfulDebts/Advances 46.18 (23.58) 22.603. ProvisionforLongServiceAwards 4.24 0.74 4.984. ProvisionforLeaveEncashment&PFforpayrevision 0.40 — 0.405. CompensatoryOff-Offshore/Leave 7.66 (3.72) 3.94

Total 153.57 (6.47) 147.10B. Deferred Tax Liabilities 1. Depreciation** 38.53 (8.50) 30.03C. Net Deferred Tax Asset/ (Liabilities) 115.04 2.03 117.07

**Includes`1.13LakhrecognizedfortheamountadjustedfromGeneralReserveinrespectofassetswhoselifehavebeencompletedason1April2014.


179

2.26 PriorperioditemsnetdebitofNIL(netDebitof`13.81Lakhs)shownunderpriorperiodadjustmentsareasdetailedbelow:

Prior Period Income

(`inLakhs)2014-15 2013-14

PrevyearsExpreversal-others — —Total (A) — —


(`inLakhs)2014-15 2013-14

Previous years Income reversal — —Depreciation — —CompensatoryOff-Offshore — 13.81

Total(B) — 13.81TOTAL(A-B) — (13.81)

2.27 CSRActivityReserveamountingto`43.50Lakhs(`54.18Lakhs)underHeadReserves&Surplus(Note:2.2)representsunspentamountoutofamountssetasideformeetingsocialobligationsasperDepartmentofPublicEnterpriseguidelinesandtheCompaniesAct2013forCorporate Social Responsibility.

2.28 PursuanttoapplicabilityofCompaniesAct,2013fromaccountingperiodcommencingafter1April,2014,theCompanyhasre-calculateddepreciationwithreferencetotheestimatedeconomiclivesoffixedassetsprescribedbyScheduleIItotheCompaniesAct,2013oractualusefullifeofassets,whicheverislower.Duetoabove,incaseanyassetwhoselifehasbeencompletedason1April2014,thecarryingvalue,netofresidualvaluethereofhasbeenadjustedfromtheGeneralReserveandinothercasesadditionaldepreciationduetorevisedusefullivesoftheassetshasbeenrecognizedintheStatementofProfitandLoss.Duetoabove,theamountadjustedfromReserve(netofdeferredtax)was`2.20Lakhsandadditionaldepreciationchargeduringthecurrentyear`32.24Lakhsrespectively.

2.29 There isno impairmentofcashgeneratingassetsduringtheyear intermsofAS-28“ImpairmentofAssets” issuedbythe InstituteofChartered Accountants of India.

2.30 Liability inrespectof ‘PerformanceRelatedPay’,amountingto`47.97 Lakhs(`17.44Lakhs)fortheemployeesfortheyearendedon31stMarch,2015hasbeenestimatedandprovidedbasedonschemeformulatedinaccordancewithDPEGuidelines,baseduponcertainranking parameters.

2.31 Retirement Benefits

ThedisclosuresrequiredunderAccountingStandard(AS-15)“EmployeeBenefits”aregivenbelow:

Defined contribution plan

Theamountrecognizedasexpenseindefinedcontributionplanisasunder:

Particular Expenses recognized in Year ended 31.03.15

Expenses recognized in Year ended 31.03.14

ContributoryProvidentFundandEmployeePensionScheme1995 `57.73Lakhs `52.65Lakhs


TheCompanyishavingfollowingdefinedbenefitplans:

i. Gratuity(Funded)

ii. LeaveEncashment(Unfunded)

iii. LongServiceAwards(Unfunded)

The liabilities in respect of these items are provided for as per actuarial valuation. The amount of expenditure in respect of leaveencashment(unfunded)andLongServiceAwards(Unfunded)areofsuchsize,natureorincidencethataspecificdisclosureisnotneededasperpara132ofAS-15(Revised).However,therequireddisclosureasperAccountingStandardAS-15(Revised)inrespectofgratuity(Funded)–definedbenefitplanaregivenbelow:


180

(`inLakhs)

Gratuity (Funded) As on 31.03.2015 As on 31.03.2014

a) Actuarial Assumptions Discount rate 8.00% 8.00%Expectedrateofreturnonassets 9.00% 8.75%

Expectedrateoffuturesalaryincrease 10.00% 10.00%

b) Reconciliation of opening and closing balances of present value of Defined Benefit obligation

Presentvalueofobligationsasatbeginningofyear 116.62 96.83

Interest cost 9.33 7.75

Current Service Cost 9.40 11.75

Benefitspaid — (2.16)

Actuarial(gain)/lossonObligations 1.20 2.45

Presentvalueofobligationsasatendofyear 136.54 116.62

c) Reconciliation of opening and closing balances of fair value of plan assets

Fair value of plan assets as beginning of year 115.73 93.62

Expectedreturnonplanassets 12.17 9.31

Contributions 19.60 14.95


ActuarialGain/(loss)onplanassets NIL NIL

Fair value of plan assets at the end of year 147.50 115.73

d) Fair value of plan assets as on 31.03.2015

Fair value of plan assets at beginning of year 115.73 93.62

Actual return on plan assets 12.17 9.31

Contribution 19.60 14.95


Fair value of plan assets at the end of year 147.50 115.73

Funded status 10.96 (0.89)

ExcessofActualoverestimatedreturnonplan

Assets NIL NIL

e) Actuarial Gain/Loss recognized for the year 2014-15

ActuarialGain/(Loss)fortheyear–Obligation (1.20) (2.45)

ActuarialGain/Lossfortheyear–Planassets NIL NIL

Total(gain)/Lossfortheyear 1.20 2.45

Actuarial(gain)/Lossfortheyear 1.20 2.45

f) The amounts recognized in the balance sheet

Presentvalueofobligationsasattheendofyear 136.54 116.62

Fair value of plan assets as at the end of the year 147.50 115.73

Funded status 10.96 (0.89)

Net(Asset)/liabilityrecognizedinbalancesheet 10.96 (0.89)

g) Expenses Recognized in statement of Profit & Loss

Current Service Cost 9.40 11.75

Interest cost 9.33 7.75

Expectedreturnonplanassets (12.17) (9.31)

Netactuarial(gain)/Lossrecognizedintheyear 1.20 2.45

ExpensesRecognizedinstatementofProfit&Loss 7.76 12.64


181

2.32 Earning Per Share (E.P.S.)


Calculation of E.P.S. 2014-15 2013-14

ANetProfitfortheyearattributabletoEquityShareholders(`InLakhs) 875.90 636.06BWeightedaveragenumberofequityshares 100,000 100,000CBasicandDilutedEarningpershare(A)/(B) `875.90 `636.06D Nominal value per share `100 `100

2.33 Other disclosures required under Companies Act. 2013

(`inLakhs)

Particulars For the year ended 31.03.15

For the year ended 31.03.14

a)CIFValueofImport:i)Componentsandsparepartsforofficeequipments.

NIL NIL

b)Expenditureincurredinforeigncurrencyonaccountof:i)Know-howandprofessionalfeeii)Othermatters(ForeignTravel)

NIL107.52

NIL88.37

c)Earninginforeignexchangetowardsprofessionalfees. 42.97 50.21

2.34 InSignificantAccountingPoliciesandNotestoAccounts,figuresinbracketsrepresentpreviousyearfigures,whereveryearisnotspecified.Elsewherefiguresinbracketsrepresentnegativefigures.

2.35 PreviousYearfigureshavebeenrecast/regrouped/rearranged/reclassifiedwhereverconsiderednecessarytoconformtotheclassificationadopted for the current year.

SignaturestoSignificantAccountingPoliciesandNotestoAccounts



DIN:00813955


DIN:00165092





M.No.095949


182

Comments of the Comptroller and Auditor General of India under section 143(6)(b) of the Companies Act, 2013 on the Financial Statements of Certification Engineers International Limited for the year ended 31st March 2015.

ThepreparationoffinancialstatementsofCertificationEngineersInternationalLimitedfortheyearended31March2015inaccordancewiththefinancial reporting frameworkprescribedunder theCompaniesAct,2013 is theresponsibilityof themanagementof thecompany.ThestatutoryauditorappointedbytheComptrollerandAuditorGeneralofIndiaundersection139(5)oftheActisresponsibleforexpressingopinionon thefinancial statementsunder section143of theActbasedon independentaudit inaccordance with standards onauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated14May2015.

I,onthebehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditundersection143(6)(a)oftheActofthefinancialstatementsofCertificationEngineersInternationalLimitedfortheyearended31March2015.Thissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersofthestatutoryauditorandislimitedprimarilytoinquiriesofthestatutoryauditorandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’report.

For and on the behalf of the Comptroller &AuditorGeneralofIndia



Place:NewDelhiDate:June10,2015

Annual Report 2 0 1 4

183

The directorshave pleasure in submitting their report and theauditedfinancialstatementsfortheyearended31December2014.

Principal activityTheprincipal activity of the Company is the provision of technicalservices to theoil,gasandother industrialprojects.TheCompanyceaseditsbusinessoperationinthefinancialyear2007.

Financial results RMLossaftertaxation 13,978/-

DividendsNo dividend has been paid or declared by the Company since the end ofpreviousfinancialyear.Thedirectorsalsodonotrecommendanydividendpaymentinrespectofthecurrentfinancialyear.

Reserves and provisionsTherewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyear.

Issue of shares and debenturesThe Company did not issue any shares or debentures during the financialyear.

DirectorateThedirectorsinofficesincethedateoflastreportare:-ASHOKKUMARPURWAHARAMSINGHDR. SAMAD BIN SOLBAI TANHORSENGSANJAYGUPTA

According to the register of directors’ shareholdings, none of thedirectors holding office at the end of the financial year had anyinterestinsharesintheCompanyoritsrelatedcorporationsduringthefinancialyear.

Directors’ benefitsNeitherattheendofthefinancialyear,noratanytimeduringtheyear, did there subsist any arrangement towhich theCompanyorany of its related corporationswas a party whereby the directorsmightacquirebenefitsbymeansoftheacquisitionofshares in,ordebentures of the Company or any other body corporate.

Sincetheendofthepreviousfinancialyear,nodirectorhasreceivedorbecomeentitledtoreceiveabenefit(otherthanabenefitincludedin the aggregate amount of emoluments received or due and receivablebythedirectorsasshowninthefinancialstatement)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichheisamember,orwithaCompanyinwhichhehasasubstantialfinancialinterest.

Other statutory information(a) Beforetheincomestatementandbalancesheetweremadeout,

thedirectorstookreasonablesteps:-(i) to ascertain that action had been taken in relation to the

writing off of bad debts and the making of provision fordoubtfuldebtsandsatisfiedthemselvesthattherewerenoknownbaddebts and that noprovision for doubtful debtswasnecessary;and

(ii) toensurethatanycurrentassetswhichwereunlikelytoberealised in the ordinary course of business including their value as shown in the accounting records of the Companyhavebeenwrittendowntoanamountwhichtheymightbeexpected so to realise.

(b) At thedateof this report, thedirectors arenot awareof anycircumstances :(i) whichwouldrenderitnecessarytowriteoffanybaddebts

ortomakeanyprovisionfordoubtfuldebtsinrespectofthefinancialstatementsoftheCompany;and

(ii) whichwouldrenderthevaluesattributedtocurrentassetsinthefinancialstatementsoftheCompanymisleading,or

(iii)which have arisenwhich render adherence to the existingmethodofvaluationofassetsor liabilitiesof theCompanymisleading or inappropriate .

(c) Atthedateofthisreport,theredoesnotexist:(i) anychargeontheassetsof theCompanywhichhasarisen

sincetheendofthefinancialyearwhichsecurestheliabilitiesof any other person.

(ii) any contingent liability of the Companywhich has arisensincetheendofthefinancialyear.

(d)No contingent or other liability has become enforceable or islikelytobecomeenforceablewithintheperiodoftwelvemonthsafter the end of the financial year which, in the opinion ofthe directors,will ormay substantially affect the ability of theCompanytomeetitsobligationsasandwhentheyfalldue.

(e)At the date of this report, the directors are not aware of anycircumstances not otherwise dealt with in this report or thefinancial statementswhichwould renderanyamountstated inthefinancialstatementsmisleading

(f) Intheopinionofthedirectors,(i)theresultsoftheCompany’soperationsduringthefinancial

yearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;

(ii)therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionor event of a material and unusual nature likely to affectsubstantiallytheresultsoftheoperationsoftheCompanyforthecurrentfinancialyear.

Holding CompanyThe Directors’ regard Engineers India Limited, a companyincorporated in the Republic of India, as the ultimate holdingcompany of the Company.

AuditorsMessrs. Sundar & Associates have expressed their willingness tocontinueinoffice.

Signed on behalf of the Board of Directors in accordance with aresolutionoftheDirectorsdated11February2015.

RAM SINGH DR. SAMAD BIN SOLBAIDirector DirectorKuala Lumpur

Directors’ Report

EILAsiaPacificSdn.Bhd.(IncorporatedinMalaysia)

184

PursuanttoSection169(15)oftheCompaniesAct,1965

We,RamSinghandDr.SamadBinSolbai,beingtwoofthedirectorsofEILASIAPACIFICSDN.BHD.,doherebystatethat,intheopinionofthedirectors,theaccompanyingbalancesheetandstatementsofincome,cashflowsandchangesinequityaredrawnupinaccordancewithPrivateEntityReportingStandardsissuedbytheMalaysianAccountingStandardsBoardandtheprovisionsoftheCompaniesAct,1965soastogiveatrueandfairviewofthestateofaffairsoftheCompanyasat31December2014andoftheresultsandthecashflowsoftheCompanyfortheyear then ended.

SignedonbehalfoftheBoardofDirectorsinaccordancewitharesolutionoftheDirectorsdated11February2015.

RAM SINGH DR. SAMAD BIN SOLBAIDirector DirectorKuala Lumpur

I,RamSingh,beingthedirectorprimarilyresponsiblefortheaccountingrecordsandfinancialmanagementofEILASIAPACIFICSDN.BHD.,dosolemnlyandsincerelydeclarethattheaccompanyingbalancesheetandstatementsofincome,cashflowsandchangesinequityaretothebestofmyknowledgeandbeliefcorrectandImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedatPetalingJayaSelangorDarulEhsanthis11February2015.

70JalanSS2/60 47300PetalingJayaSelanger

Statement by Directors

Statutory Declaration

Ram Singh Beforeme,

Commissioner for Oaths


185

Report on the Financial StatementsWehaveauditedthefinancialstatementsofEIL ASIA PACIFIC SDN. BHD.,whichcomprisethebalancesheetasat31December2014,andtheincomestatement,statementofchangesinequityandcashflowstatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages8to17.

Directors’ Responsibility for the Financial StatementsThedirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewithPrivateEntityReportingStandardsandtheCompaniesAct1965inMalaysia,andforsuchinternalcontrolasthedirectorsdeterminearenecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependonourjudgment,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionInouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithPrivateEntityReportingStandardsandtheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheCompanyasof31December2014andofitsfinancialperformanceandcashflowsfortheyearthenended.

Report on Other Legal and Regulatory RequirementsInaccordancewiththerequirementsoftheCompaniesAct1965inMalaysia,wealsoreportthatinouropiniontheaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyhavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

Other MattersThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

SUNDAR&ASSOCIATES AFNo:1127 CharteredAccountants(M)

SUNDARASANA/LARUMUGAM1876/02/16(J/PH)

CharteredAccountant(M)

Place:PetalingJayaDate:February11,2015

Independent Auditors’ Report to the Members of

EIL Asia Pacific Sdn. Bhd. (290200-W)


186

Notes 2014 RM

2013 RM

Revenue 3(i) — —

Other income 6,503 6,898

Otheroperatingexpenses (18,855) (18,489)

Loss before taxation 4 (12,352) (11,591)

Taxation 5 (1,626) (1,725)

Loss after taxation (13,978) (13,316)

Theannexednotesformanintegralpartofthesefinancialstatements.

Income statementfortheyearended31stDecember2014


187

Notes 2014 RM

2013 RM

Non-current asset

Plant and equipment 6 — 2

Current assets

Other receivables 485 481

Fixeddepositwithalicensedbank 212,798 206,300

Cash and bank balances 12,255 35,014

225,538 241,795

Current liabilities

Accruedliabilities 5,936 8,318

Taxation 126 25

6,062 8,343

Net current assets 219,476 233,452

219,476 233,454

Financed by :

Share capital 8 250,000 250,000

Accumulated losses (30,524) (16,546)

219,476 233,454


Balance sheetasat31stDecember2014


188

Share capital

RM

Accumulated losses

RM

Total

RM

Balanceasat1January2014 250,000 (16,546) 233,454

Lossaftertaxation — (13,978) (13,978)

Balance as at 31 December 2014 250,000 (30,524) 219,476

Balanceasat1January2013 250,000 (3,230) 246,770

Lossaftertaxation — (13,316) (13,316)

Balance as at 31 December 2013 250,000 (16,546) 233,454


Statement of changes in equityfortheyearended31stDecember2014


189

2014 RM

2013 RM

Cash flows from operating activities

Lossbeforetaxation (12,352) (11,591)

Adjustments for:

Interest income (6,503) (6,898)

Plantandequipmentwrittenoff 2 —

Operatinglossbeforeworkingcapitalchanges (18,853) (18,489)

Changesinworkingcapital:

Other receivables (4) 32

Accruedliabilities (2,382) (2,321)

Cashabsorbedbyoperations (21,239) (20,778

Tax paid (1,525) (2,163)

Net cash flow from operating activities (22,764) (22,941)

Cash flows from investing activity

Interest received 6,503 6,898

Net cash flow from investing activity 6,503 6,898

Net decrease in cash and cash equivalents (16,261) (16,043)

Cash and cash equivalents brought forward 241,314 257,357

Cash and cash equivalents carried forward 225,053 241,314

Breakdown of cash and cash equivalents carried forward

Fixeddepositwithalicensedbank 212,798 206,300

Cash and bank balances 12,255 35,014

225,053 241,314


Cash flow statementfortheyearended31stDecember2014


190

1. Corporate information

TheCompanyisaprivatelimitedliabilitycompany,incorporatedanddomiciledinMalaysia.TheregisteredofficeofthecompanyislocatedatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpur.

TheprincipalactivityoftheCompanyistheprovisionoftechnicalservicestotheoil,gasandotherindustrialprojects.TheCompanyhastemporarilyceaseditsbusinessoperationinthefinancialyear2007.

TheCompanyhasnoemployeeattheendofthefinancialyear(2013:Nil).

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorson11February2015.

2. Basis of preparation of the financial statements

ThefinancialstatementscomplywiththeprovisionoftheCompaniesAct,1965andtheapplicablePrivateEntityReportingStandardsissuedbytheMalaysianAccountingStandardsBoard.

Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,unlessotherwiseindicatedinthesummaryofsignificantaccountingpolicies(Note3).

Thepreparationoffinancial statements inconformitywith theprovisionsof theCompaniesAct,1965and theapplicablePrivateEntityReportingStandardsissuedbytheMalaysianAccountingStandardsBoardrequirestheDirectorstomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateoffinancialstatementsandthereportedamountsofrevenueandexpensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.

ThefinancialstatementsarepresentedinRinggitMalaysia(RM)

3. Significant accounting policies

(i) Revenue recognition

ThereisnorevenuerecognisedastheCompanyhasceaseditsbusinessoperations.

Interest income

Interestisrecognisedonatimeproportionbasisthatreflectstheeffectiveyieldontheasset.

(ii) Plant and equipment

Plantandequipmentisstatedatcostlessaccumulateddepreciationandimpairmentloss.

Depreciationonplantandequipmentiscalculatedonastraight-linemethodbasedontheestimatedusefullivesoftheassets.

Theprincipalannualratesofdepreciationusedareasfollows:

Officeequipment 20% Computer 20%

Plantandequipmentiswrittendowntorecoverableamountif,therecoverableamountislessthantheircarryingvalue.Recoverableamount is the higher of an asset’s net selling price and its value in use.

(iii) Income tax

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatbalancesheetdate.

Deferredtaxisprovidedfor,usingtheliabilitymethod,ontemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts inthefinancialstatements. Inprinciple,deferredtax liabilitiesarerecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.

Deferredtaxmeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity.

(iv) Provisions

Provisionsarerecognisedwhenthecompanyhasapresentlegalandconstructiveobligationasaresultofpastevents,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andwhenareliableestimatecanbemadeoftheamountoftheobligation.

Notes to the financial statements31stDecember2014


191

(v) Cash and cash equivalents

Cash represent cash, bank balances and fixed deposits with financial institutions. Cash equivalents comprises of investmentsmaturingwithinthreemonthsfromthedateofacquisitionandwhicharereadilyconvertibletoknownamountofcashwhicharesubjecttoaninsignificantriskofchangeinvalue.

(vi) Employment benefit

a. Shorttermbenefits

Wages, salaries,bonusesandsocial security contributionsare recognisedasanexpense in thefinancial year inwhich theassociatedservicesarerenderedbyemployeesoftheCompany.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences,andshorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

b. Definedcontributionplan

Asrequiredbylaw,companiesinMalaysiamakecontributionstotheEmployeeProvidentFund(EPF).Suchcontributionsarerecognised as an expense in the income statement as incurred.

(vii) Receivables

Tradeandotherreceivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenoffintheperiodinwhichtheyareidentified.Anestimateismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsatthebalancesheetdate.

(viii) Impairment of assets

The carrying value of assets excluding deferred tax assets and financial assets are reviewed for impairmentwhen there is anindicationthattheassetsmightbeimpaired. Impairmentismeasuredbycomparingthecarryingvaluesoftheassetswiththeirrecoverableamounts.Therecoverableamountisthehigherofanasset’snetsellingpriceanditsvalueinuse,whichismeasuredbyreferencetodiscountedfuturecashflows.Recoverableamountsareestimatedforindividualassets,orifitisnotpossible,forthecash-generatingunit.

Animpairmentlossischargedtotheincomestatementimmediately,unlesstheassetiscarriedatrevaluedamount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofpreviouslyrecognisedrevaluationsurplusforthesameasset.

Subsequent increase in the recoverable amount of an asset is treated as reversal of the previous impairment loss and is recognised totheextentofthecarryingamountoftheassetthatwouldhavebeendetermined(netofamortisationanddepreciation)hadnoimpairmentlossbeenrecognised.Thereversalisrecognisedintheincomestatementimmediately,unlesstheassetiscarriedatrevaluedamount.Areversalofanimpairmentlossonarevaluedassetiscrediteddirectlytorevaluationsurplus.However,totheextentthatanimpairmentlossonthesamerevaluedassetwaspreviouslyrecognisedasanexpenseintheincomestatement,areversal of that impairment loss is recognised as income in the income statement.

4. Loss before taxation

Lossbeforetaxationisstatedaftercharging:

2014RM

2013RM

Directors' fee 9,000 7,000

Auditor'sremuneration 1,750 2,750


andcrediting:Interest income 6,503 6,898

5. Taxation

2014RM

2013RM

Tax charges 1,626 1,725

Areconciliationof incometaxexpenseapplicable to lossbeforetaxationat thestatutory incometax rate to incometaxexpenseat theeffectiveincometaxrateoftheCompanyisasfollows:


192

2014RM

2013RM

Lossbeforetaxation (12,352) (11,591)

TaxatMalaysianstatutorytaxrateof25% (3,087) (2,897)

Expensesnotdeductiblefortaxpurposes 4,713 4,622

Tax expense for the year 1,626 1,725

SubjecttoagreementoftheInlandRevenueBoard,theCompanyhasthefollowingavailableforset-offagainstfuturetaxableincome.

2014RM

2013RM

Unutilisedtaxlosses 746,875 746,875

Unutilisedcapitalallowances 345 345

747,220 747,220

6. Plant and equipment

Cost Office equipment

RM

ComputerRM

TotalRM

Balancebroughtforward 590 9,950 10,540

Addition — — —

Writtenoff (590) (9,950) (10,540)

Balancecarriedforward — — —

Accumulated depreciation

Balancebroughtforward 589 9,949 10,538

Current charge — — —

Writtenoff (589) (9,949) (10,538)

Balancecarriedforward — — —

Net book value

2014 — — —

2013 1 1 1

7. Deferred taxation

Nodeferredtaxassetisrecognisedforthefollowingitems:

2014RM

2013RM

Unutilisedtaxlosses 746,875 746,875

Unabsorbedtaxcapitalallowances 345 345

747,220 747,220

8. Share capital

2014RM

2013RM

Authorised: 500,000OrdinarysharesofRM1/-each 500,000 500,000

Issued and fully paid : 250,000OrdinarysharesofRM1/-each 250,000 250,000


193

2014 RM

2013 RM

Revenue — —

Other income:

Interest income 6,503 6,898

Otheroperatingexpenses

Director’s fee 9,000 7,000

Legal and professional fee 4,150 4,694

Auditor’sremuneration 1,750 2,750

Tax fee 1,000 1,000

Printingandstationery 800 896

Communicationandcourier 793 217

Service tax 660 729

Miscellaneous expenses 500 1,000

Travelling expenses 135 153

Bank charges 65 50


18,855 18,489

Loss for the year (12,352) (11,591)

ThemanagementincomestatementispreparedfrominformationfurnishedbythemanagementofEILAsiaPacificSdn.Bhd.anddoesnotformpartoftheauditedfinancialstatementsoftheCompany.

Income Statementfortheyearended31stDecember2014


194

ToThe Members of Engineers India LimitedReport on the Consolidated Financial Statements

We have audited the accompanying consolidated financialstatementsofEngineersIndiaLimited(hereinafterreferredtoas“theHoldingCompany”)and its subsidiaries (theHoldingCompanyandits subsidiaries together referred toas “theGroup”) and its jointlycontrolledentities,comprisingoftheConsolidatedBalanceSheetasat31stMarch,2015,theConsolidatedStatementofProfitandLoss,theConsolidatedCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation (hereinafter referred to as “the consolidated financialstatements”).

Management’s Responsibility for the Consolidated Financial StatementsThe Holding Company’s Board of Directors is responsible for thepreparationoftheseconsolidatedfinancialstatementsintermsoftherequirementsoftheCompaniesAct,2013(hereinafterreferredtoas“theAct”)thatgiveatrueandfairviewoftheconsolidatedfinancialposition, consolidated financial performance and consolidatedcash flows of the Group including its Jointly controlled entities inaccordance with the accounting principles generally accepted inIndia, including the Accounting Standards specifiedunder Section133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.TherespectiveBoardofDirectorsofthecompanies includedintheGroupandofitsjointlycontrolledentitiesareresponsibleformaintenance of adequate accounting records in accordance withtheprovisionsof theAct for safeguarding theassetsof theGroupandforpreventinganddetectingfraudsandotherirregularities;theselectionandapplicationofappropriateaccountingpolicies;makingjudgments and estimates that are reasonable and prudent; andthedesign, implementationandmaintenanceofadequate internalfinancial controls, thatwere operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant tothe preparation and presentation of the financial statements thatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror,whichhavebeenusedforthepurposeof preparation of the consolidated financial statements by theDirectorsoftheHoldingCompany,asaforesaid.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated financialstatementsbasedonouraudit.Whileconductingtheaudit,wehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedin the audit report under the provisions of the Act and the Rules made there under.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence abouttheamountsandthedisclosuresintheconsolidatedfinancial

Independent Auditor’s Report

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of materialmisstatement of the consolidated financial statements, whetherdue to fraud or error. In making those risk assessments, theauditor considers internal financial control relevant to theHoldingCompany’s preparation of the consolidated financial statementsthat give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose ofexpressinganopiniononwhether theHoldingCompanyhasanadequateinternalfinancialcontrolssystemoverfinancialreportinginplaceandtheoperatingeffectivenessofsuchcontrols.Anauditalsoincludes evaluating the appropriateness of the accounting policiesusedandthereasonablenessoftheaccountingestimatesmadebytheHoldingCompany’sBoardofDirectors,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.

We believe that the audit evidence obtained by us and the auditevidence obtained by the other auditors in terms of their reports referred to in sub-paragraph (a) of the Other Matters paragraphbelow,issufficientandappropriatetoprovideabasisforourauditopinionontheconsolidatedfinancialstatements.

OpinionInouropinionandtothebestofourinformationandaccordingtothe explanations given to us, the aforesaid consolidated financialstatementsgivetheinformationrequiredbytheActinthemannerso required and give a true and fair view in conformity with theaccountingprinciplesgenerallyacceptedinIndia,oftheconsolidatedstate of affairs of the Group, its jointly controlled entities as at 31stMarch,2015,andtheirconsolidatedprofitandtheirconsolidatedcashflowsfortheyearendedonthatdate.

Emphasis of MatterWe draw attention to Note 2.34 to the consolidated financialstatementswhichdescribesthatasonbalancesheetdatetheJointventureCompanyM/sTEILProjectsLimitedhasaccumulatedlossesofRs1093.29lacsanditsnetworthhasbeenfullyeroded,furtherthe Auditors of the Company has reported that “the Company has incurredanetlossofRs128.72lacsduringtheyearandRs962.24lacsduringthepreviousyearsandtheCompany’scurrentliabilitiesexceed its current assets as at the balance sheet date. These conditions,alongwithothermatterssetforth,indicatetheexistenceof a material uncertainty that may cast significant doubt aboutthe Company’s ability to continue as going concern. However thefinancial statementof theCompanyhasbeenpreparedonagoingconcern basis for the reason stated in the said note.

Our opinion is not modified in respect of these matters

Other MattersWedidnotaudit thefinancial statementsof twosubsidiaries,andthree jointly controlledentities,whosefinancial statements reflecttotal assets of `8139.28lacsasat31stMarch,2015,totalrevenuesof`4058.05lacsandnetcashflowsamountingto`278.10lacsfortheyearendedonthatdate,asconsideredintheconsolidatedfinancialstatements. Further accounts of subsidiary M/s EIL Asia PacificSdn.Bhd. and jointly controlledentityM/s Jabal EiliotCo. Ltd. aredrawnupto31.12.2014havebeenusedintheconsolidation.Asper


195

informationandexplanationgiven tous,no significant transactionor other event occurred between reporting data as above and31.3.2015, which require adjustment except in the case of jointlycontrolled entity M/s Jabal Eiliot Co. Ltd. where repatriation ofpart capital amounting to SR 3000000 subsequent to 31.12.2014has takenplacewhichhasbeen suitably adjusted . Further, jointlycontrolledentityM/sRamagundamFertilizersandChemicalsLtd.isbeingconsolidatedonthebasisofunauditedinformationreceived.Thesefinancialstatements(exceptinthecaseofM/sRamagundamFertilizersandChemicalsLtd.)havebeenauditedbyotherauditorswhosereportshavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatements,insofarasitrelates to the amounts and disclosures included in respect of these subsidiaries and jointly controlledentities andour report in termsofsub-sections (3)and (11)ofSection143of theAct, insofaras itrelates to the aforesaid subsidiaries and jointly controlled entities,is based solely on the reports of the other auditors and unaudited informationprovided by themanagement in respect of unauditedfinancialstatement.

Ouropinionontheconsolidatedfinancialstatements,andourreportonOtherLegalandRegulatoryRequirementsbelow,isnotmodifiedinrespectoftheabovematterswithrespecttoourrelianceontheworkdoneand the reportsof theotherauditorsand thefinancialstatements/financialinformationcertifiedbytheManagement.

Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report) Order, 2015

(“the Order”), issued by the Central Government of India interms of sub-section (11) of Section 143 of the Act, based onthecommentsintheauditors’reportsoftheHoldingcompany,subsidiary companies, and jointly controlled companiesincorporatedinIndia,(exceptinthecaseofanewlyformedjointlycontrolledcompanywhichaspertheinformationavailabletoushas yet to start its business and is being consolidated on the basis ofunauditedavailable information)wegive in theAnnexure,astatementonthemattersspecifiedinparagraphs3and4oftheOrder,totheextentapplicable.

2. AsrequiredbySection143(3)oftheAct,wereport,totheextentapplicable,that:

(a) We have sought and obtained all the information andexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditoftheaforesaidconsolidatedfinancialstatements.

(b) Inouropinion,properbooksofaccountasrequiredby lawrelatingtopreparationoftheaforesaidconsolidatedfinancialstatements have been kept so far as it appears from our examination of those books and the reports of the otherauditors.

(c) TheConsolidatedBalanceSheet,theConsolidatedStatementofProfitandLoss,andtheConsolidatedCashFlowStatementdealtwithbythisReportareinagreementwiththerelevantbooksofaccountmaintainedforthepurposeofpreparationoftheconsolidatedfinancialstatements.

(d) In our opinion, the aforesaid consolidated financialstatementscomplywiththeAccountingStandardsspecifiedunder Section 133 of the Act, read with Rule 7 of theCompanies(Accounts)Rules,2014.

(e) On the basis of the written representations received fromthe directors of the Holding Company as on 31st March,2015 taken on record by the Board of Directors of theHolding Company and the report of the statutory auditorsof its subsidiary company, and jointly controlled companyincorporated in India, none of the directors of the Groupcompanies, and jointly controlled company incorporatedin India is disqualified as on 31st March, 2015 from beingappointedasadirectorintermsofSection164(2)oftheAct.

(f) With respect to the other matters to be included in theAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditor’s)Rules,2014,inouropinionandtothebest of our information and according to the explanationsgiven to us:

i. The consolidated financial statements disclose theimpact of pending litigations on the consolidatedfinancial position of the Group, its associates andjointly controlled entities- Refer Note No 2.17 to theconsolidatedfinancialstatements.

ii. Provision has beenmade in the consolidated financialstatements, as required under the applicable law oraccounting standards, for material foreseeable losses,if any, on long-term contracts including derivativecontracts - Refer Note No 2.36 to the consolidatedfinancialstatementsinrespectofsuchitemsasitrelatestotheGroup,itsjointlycontrolledentities.

iii. There has been no delay in transferring amounts,required to be transferred, to the Investor Educationand Protection Fund by the Holding Company and itssubsidiary and jointly controlled companies incorporated in India.


FRN:501433C



M.Number:088396


196

Referred to in paragraph 1 of the Independent Auditors’ Report of even date to the members of Engineers India Ltd. on the consolidated financial statements as of and for the year ended March 31, 2015

(i) (a) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,andthereportsoftheotherauditorsonthesubsidiaryandjointlycontrolledcompaniesincorporatedinIndiaasfurnishedtous,theHoldingCompany,itssubsidiaryandjointlycontrolledcompaniesincorporatedinIndiaaremaintainingproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

(b) In respectofHoldingCompany , thefixedassets havebeenphysicallyverifiedbythemanagement inphasedmannersoas tocovereachassetsatonesinathreeyearswhichinouropinionreasonablehavingregardtothesizeoftheCompanyandthenatureof itsbusiness . InrespectofSubsidiaryCompany,FixedAssetshavebeenphysicallyverifiedbythemanagementatreasonableintervals.IncaseofjointcontrolledCompanyfixedassetsarephysicallyverifiedbythemanagementaccordingtoaregularprogramofverification,whichisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuanttotheprogram,themanagementduringtheyearhasphysicallyverifiedaportionofthefixedassets.NomaterialdiscrepancyobservedonphysicalverificationbyHoldingCompany,Subsidiaryandjointlycontrolledcompanies.

(ii) (a) InventoriesoftheHoldingCompanyhavebeenphysicallyverifiedduringtheyearbythemanagement,inouropinion,thefrequencyofverification is reasonable.Furtherno inventory ismaintainedbySubsidiaryand jointlycontrolledCompanyexceptstationeryitems.

(b) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationofinventoryfollowedbytheHoldingCompanyarereasonableandadequateinrelationtothesizeofthecompanyandthenatureofitsbusiness.

(c) We are of the opinion that, the Holding Company ismaintaining proper records of inventory. Further as per information andexplanationsgiventousthediscrepanciesnoticedonphysicalverificationof inventoriesascomparedtobookrecordswerenotmaterialandthesamehavebeenproperlydealtwithinthebooksofaccount.

(iii) The Holding Company, its subsidiary and jointly controlled companies incorporated in India have not granted any loans, secured orunsecured, to companies, firms or other parties covered in the registermaintained under Section 189 of the Companies Act, 2013.Therefore,theprovisionsofClauses3(iii)(a)and3(iii)(b)oftheOrderarenotapplicabletotheHoldingCompany,itssubsidiaryandjointlycontrolled companies incorporated in India.

(iv) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,andthereportsoftheotherauditorsonthesubsidiaryandjointlycontrolledcompaniesincorporatedinIndiaasfurnishedtous,thereisanadequateinternalcontrolsystemcommensuratewiththesizeoftheHoldingCompany,itssubsidiaryandjointlycontrolledcompaniesincorporatedinIndiaandthenatureofitsbusinessforthepurchaseofinventoryandfixedassetsandforthesaleofgoodsandservices.Further,onthebasisofourexaminationofthebooksandrecordsoftheaforesaidHoldingCompanyandthereportsoftheotherauditorsonthesubsidiaryandjointlycontrolledcompaniesincorporatedinIndiaasfurnishedtous,andaccordingtotheinformationandexplanationsgiventous,wehaveneithercomeacross,norbeeninformedof,anycontinuingfailuretocorrectmajorweaknessesintheaforesaidinternalcontrolsystem.

(v) TheHolding,SubsidiaryandjointlycontrolledCompanieshavenotacceptedanydepositsfromthepublic.

(vi) Asper informationandexplanationprovided tous, andasper reportsof theotherauditorson the subsidiaryand jointly controlledcompaniesincorporatedinIndiaasfurnishedtous,maintenanceofcostrecordhasnotbeenprescribedundersection148oftheActforservicesrenderedbytheHolding,SubsidiaryandjointlycontrolledCompanies.

(vii) (a) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheHoldingCompanyexaminedbyus,andbasedonthereportsoftheotherauditorsofthesubsidiariesandjointlycontrolledcompaniesincorporatedinIndia,inouropinion,Holdingcompany,itsSubsidiariesandjointlycontrolledcompaniesincorporatedinIndiaareregularindepositingtheundisputedstatutorydues,includingprovidentfund,employees’stateinsurance,incometax,salestax,wealthtax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtax,cessandothermaterialstatutorydues,asapplicable,withtheappropriateauthoritiesandtherearenoundisputedduesoutstandingasat31stMarch2015foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheHoldingCompanyexaminedbyus,andbasedonthereportsoftheotherauditorsofsubsidiariesandjointlycontrolledcompaniesincorporatedinIndia,thefollowingduesofprovidentfund,employees’stateinsurance,incometax,salestax,wealthtax,servicetax,dutyofcustoms,dutyofexcise,valueaddedtax,cessandothermaterialstatutorydues,asatMarch31,2015whichhavenotbeendepositedonaccountofadispute:

Annexure to the Independent Auditors’ Report


197

IncaseHoldingCompany:

S. No.



Amount (In Lacs)


CIT(Appeals) 2011-12 43.48

2 IncomeTaxAct1961 DemandofTDSu/s201(1) CIT(Appeals) 2008-09 0.32

3 IncomeTaxAct1961 Interest on Self assessment taxu/s244A

Supreme Court 2005-06 105.37

4 FinanceAct1994 Demand of Service tax CESTAT 2002-2006 62.87



7 UP Sales Tax Act Sales Tax SalesTaxtribunal,Agra 1999-2000 13.70

In Case of Subsidiary Company:

S. No.



Amount (In Lacs)

1 FinanceAct1994 ShowcauseNoticecumDemand of Service Tax

Commissioner Service Tax,Mumbai

April2004toMarch2009

227.47


Commissioner Service Tax,Mumbai


3.21


AdditionalCommissioner

ServiceTax,Mumbai


8.92


AdditionalCommissioner Service

Tax,Mumbai


20.91


AdditionalCommissioner Service

Tax,Mumbai


0.40


CIT(Appeals) April2010toMarch2011

1.31

7 IncomeTaxAct1961 Assessmentu/s143(3)oftheIncomeTaxAct1961(ShortcreditofTDS)

Applicationu/s154filledbefore

Deputy Commissioner of Income Tax


42.63

8 IncomeTaxAct1961 Assessmentu/s143(3)oftheIncomeTaxAct1961(ShortcreditofTDS)

Applicationu/s154filledbefore

Deputy Commissioner of Income Tax


91.91

(c) Accordingtotheinformationandexplanationsgiventous,theHoldingCompany,itssubsidiaryandjointlycontrolledcompaniesincorporatedinIndiahavetransferredtheamountstotheInvestorEducationandProtectionFundinaccordancewiththeprovisionsoftheCompaniesAct,1956(1of1956)andtherulesmadethereunder.

(viii) There are no accumulated losses and no cash losses have been incurred during the financial year covered by our audit and in theimmediatelyprecedingfinancialyearinrespectofHoldingCompanyandsubsidiaryCompanyincorporatedinIndia.FurtherinrespectofajointlycontrolledCompanyincorporatedinIndia,registeredformorethanfiveyearshaveaccumulatedlossesattheendofcurrentfinancial yearmore thanfiftyper cent of its networth, andhas incurred cash losses in current financial year and in the immediateprecedingfinancialyear.

(ix) TheHoldingCompanyandSubsidiaryCompanydonothaveanyborrowingfromanyfinancialinstitutions,banksordebentureholders.Furtherbasedonjointlycontrolledcompany’sAuditor’sreport,Companyhasnotdefaultedrepaymentofduestobankandthereisnoloanduetoanyfinancialinstitution/debentureholder.


198

(x) Asperrecordandinformationandexplanationsgiventous,theHoldingCompanyhasnotgivenanyguaranteeforloanstakenbyothersfrombanksorfinancialinstitutionsexceptguaranteeamountingto`200.00lacsissuedonbehalfofM/sTEILProjectsLtd.InouropinionthetermsandconditionoftheguaranteearenotprejudicialtotheinterestoftheHoldingCompany.FurthertheSubsidiaryandJointlyControlledCompanieshavenotgivenanyguaranteeforloantakenbyothersfromBanksandfinancialInstitutionsduringtheyear.

(xi) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheHoldingCompanyexaminedbyus,andbasedonthereportsoftheotherauditorsoftheHoldingcompany’ssubsidiariesandjointlycontrolledcompaniesincorporatedinIndianoTermloanisavailedbyHolding,SubsidiaryandjointlycontrolledCompanies.

(xii) DuringthecourseofourexaminationofthebooksandrecordsoftheHoldingCompanycarriedout inaccordancewiththegenerallyacceptedauditingpractices in India, andaccording to the informationandexplanationsgiven tous andbasedon the reportsof theotherauditors,wehaveneithercomeacrossanyinstanceoffraudonorbytheHoldingCompany,itssubsidiariesandjointlycontrolledcompaniesincorporatedinIndia,noticedorreportedduringtheyear,norwehavebeeninformedofanysuchcasebytheManagementoftheaforesaidHoldingCompanyorreportedintheauditreportsofitssubsidiariesandjointlycontrolledcompaniesincorporatedinIndia.


FRN:501433C



M.Number:088396


199

PARTICULARS NOTE NO. as at 31st March, 2015` in lakhs

as at 31st March, 2014` in lakhs

EQUITY AND LIABILITIES

Shareholders' fundsShare Capital 2.1 16846.84 16846.84Reserves and Surplus 2.2 246319.83 263166.67 235326.92 252173.76

Non-Current Liabilities 2.3OtherLongtermLiabilities 2.3 (A) 221.79 187.11Long Term Provisions 2.3 (B) 2044.17 2265.96 2253.78 2440.89

Current Liabilities 2.4ShortTermBorrowings 2.4 (A) 50.00 16.45Trade Payables 2.4 (B) 24685.44 28341.94OtherCurrentLiabilities 2.4 (C) 58329.55 54427.47Short term Provisions 2.4 (D) 50314.67 133379.66 44279.27 127065.13

TOTAL 398812.29 381679.78

ASSETS

Non Current AssetsFixed Assets: 2.5Tangible assets 27012.76 11759.97 Intangible assets 212.57 332.51Capitalwork-in-Progress 1911.20 29136.53 13176.15 25268.63

Non Current Investments 2.6 1327.88 1268.45DeferredTaxAsset(Net) 2.27 23311.84 23201.72Long Term Loans and Advances 2.7 4989.45 5480.15Other Non Current Assets 2.8 99.78 179.13

Current Assets: 2.9Current Investments 2.9 (A) 12453.20 71900.00Inventories 2.9 (B) 83.96 102.49Trade Receivables 2.9 (C) 43857.65 35374.84Cash and Bank Balances 2.9 (D) 241898.49 181246.77Short Term Loans and Advances 2.9 (E) 8709.81 5049.81Other Current Assets 2.9 (F) 32943.70 339946.81 32607.79 326281.70

TOTAL 398812.29 381679.78Significant Accounting Policies and Notes to Accounts 1 & 2



PAN:AAGPG5991E



DIN:00165092





Consolidated Balance SheetASAT31STMARCH,2015


200

NOTE NO. Year ended31st March, 2015

` in lakhs


` in lakhsA. Revenue :i) Revenue from Operations 2.10-Consultancy&EngineeringServices 98258.74 119254.00Increase(+)/(Decrease)(-)inWork-in-Progress (637.29) (6,058.88)

97621.45 113195.12

-TurnkeyProjects 76458.74 71452.03Increase(+)/(Decrease)(-)inWork-in-Progress 44.37 -

76503.11 174124.56 71452.03 184647.15

ii) Other Income 2.11 27311.69 23200.45Total Revenue (i + ii) 201436.25 207847.60

B. Expenses :TechnicalAssistance/Sub-Contracts 2.12 33288.59 43517.45ConstructionMaterials&Equipments 2.13 25334.52 19245.68EmployeeBenefitsExpense 2.14 60090.16 60614.70Depreciation&AmortizationExpense 2.15 2017.55 1478.78Other Expenses : 2.16Facilities 2.16 (a) 5883.05 5131.60Corporate Costs 2.16 (b) 2453.33 3376.99Other Costs 2.16 (c) 23854.03 3780.65

Total Expenses 152921.23 137145.85

Profit for the Year (A-B) 48515.02 70701.75Less:PriorPeriodAdjustments(Net) 2.28 818.15 290.88

Profit Before Tax 47696.87 70410.87Less:TaxExpense Current Tax 16392.68 21713.11 Deferred Tax 2.27 (91.09) 525.19

31395.28 48172.57

Less : Prior Period Tax Adjustments (net) :Current Tax 124.54 (100.51)

Profit After Tax 31270.74 48273.08EarningPerShare(Facevalue`5/-pershare): 2.32Basic(In`) 9.28 14.33Diluted(In`) 9.28 14.33

Significant Accounting Policies and Notes to Accounts 1 & 2



PAN:AAGPG5991E



DIN:00165092





Consolidated Statement of Profit & Loss FORTHEYEARENDED31ST MARCH,2015


201

Consolidated Cash Flow StatementFORTHEYEARENDED31STMARCH,2015


` in lakhs


` in lakhsA Cash Flow from Operating Activities

NetProfitBeforeTaxandPriorPeriodAdjustments a 48515.02 70701.75Add:

i) Adjustment For:DepreciationandAmortization 2047.59 1505.32FixedAssetsWrittenOff 4.79 18.03(Profit)/LossonSaleofFixedAssets (12.42) (1.53)

ii) Other Income:Interest Income (19,666.40) (18,481.20)ShareofProfitonTradeInvestment (59.43) (56.47)CapitalGainonRedemptionofInvestmentinMutualFunds (6,719.82) (3,874.26)Dividend Income (282.62) (163.55)

b (24,688.31) (21,053.66)OperatingProfitbeforeWorkingCapitalChanges c=a+b 23826.71 49648.09

iii) Adjustment For:(Increase)/DecreaseinTradeReceivables (8,482.81) (988.04)(Increase)/DecreaseinInventories 18.53 (18.16)(Increase)/DecreaseinLoans&AdvancesandOtherAssets (2,836.37) 7,774.19(Increase)/DecreaseinWorkinProgress 592.92 6,058.88Increase/(Decrease)inProvisionforCorporateSocialResponsibility 226.90 -Increase/(Decrease)inLiabilities/Provisions 10,056.88 (32,393.95)

d (423.95) (19,567.08)CashGeneratedfromOperations e=c+d 23,402.76 30,081.01Less: Tax Paid f 16,124.75 21,271.39CashFlowBeforePriorPeriodAdjustments g=e-f 7,278.01 8,809.62Prior Period Adjustments h (818.15) (290.88)Net Cash Flow from Operating Activities i=g+h 6,459.86 8,518.74

B. Cash Flow from Investing ActivitiesPaymentsTowardsCapitalExpenditure (6,320.62) (8,199.57)Sale of Fixed Assets 15.23 8.16Interest Received 18,684.00 19,927.55Dividend Received 282.62 163.55RedemptionofInvestmentinFixedMaturityPlansofMutualFunds 78,619.82 44,674.26Purchase of Investment in Fixed Maturity Plans of Mutual Funds (12,400.00) (49,200.00)InvestmentinLiquidPlansofMutualFunds(Net) (53.20) 30.74FixedDepositPlacedwithBankshavingOriginalMaturityofMorethan Three Months (2,45,157.10) (2,65,314.86)FixedDepositwithBanksMaturedhavingOriginalMaturityofMorethan Three Months 1,83,734.90 2,74,640.82Net Cash Flow from Investing Activities j 17,405.65 16,730.65

C. Cash Flow from Financing Activities

DividendPayment(IncludingDividendTax) (11,825.97) (11,825.97)

InterimDividendPayment(IncludingDividendTax) (12,129.13) (13,796.96)

Net Cash Flow from Financing Activities k (23,955.10) (25,622.93)


202


` in lakhs


` in lakhs

Increase/ (Decrease) in Cash & Cash Equivalents i+j+k (89.59) (373.54)

Cash&CashEquivalentsattheBeginningofthePeriod 1,601.98 1,975.52

Cash&CashEquivalentsattheCloseofthePeriod 1,512.39 1,601.98

Increase/ (Decrease) in Cash and Cash Equivalents (89.59) (373.54)

NOTES:

1 The Cash Flow statement has been prepared under the "IndirectMethod" as set out in Accounting Standard - 3 "Cash FlowStatements".

2 Cash&CashEquivalentsrepresents:

i) CashandStampsinHands 9.18 39.83

ii) BalancewithBanksinCurrentAccount 1490.06 1387.15

iii) RemittanceinTransit 13.15 0.00

iv) Balance with Banks in Deposit Account having OriginalMaturity of Three Months or Less

0.00 175.00

Total 1512.39 1601.98



PAN:AAGPG5991E

(RAM SINGH)Director{Finance}DIN:02942267


DIN:00165092





Consolidated Cash Flow StatementFORTHEYEARENDED31STMARCH,2015


203

1) SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING

The accounts are prepared on historical cost concept based on accrualmethod of accounting as a going concern, consistentwithgenerallyacceptedaccountingprinciplesinaccordancewiththemandatoryaccountingstandardsanddisclosurerequirementsaspertheprovisionsoftheCompaniesAct,2013.

b) PRINCIPLES OF CONSOLIDATION

i) TheConsolidatedFinancialStatementsrelatetoEngineersIndiaLimited“theCompany”,itswhollyownedSubsidiaryCompaniesandJointVentureCompanies.TheConsolidatedFinancialStatementshavebeenpreparedonthefollowingbasis:-

• TheFinancialStatementsoftheCompanyanditsSubsidiaryCompanieshavebeenConsolidatedonaline-by-linebasisbyaddingtogetherthebookvaluesoflikeitemsofassets,liabilities,incomeandexpensesafterfullyeliminatingintra-groupbalancesandintra-grouptransactionsandresultingunrealizedprofitsorlossesinaccordancewithAccountingStandard(AS-21)“ConsolidatedFinancialStatements”.

• The Financial Statements of the Company and its Joint Venture Companies have been consolidated by applying proportionateconsolidationmethodona lineby linebasis for itemsofassets, liabilitiesandexpensesaftereliminatingproportionateshareofunrealizedProfitorLossinaccordancewithAccountingstandard(AS-27)“FinancialReportingofinterestsinJointVentures”.

• The Consolidated Financial Statements have been prepared using uniform accounting policies, for like transactions and othereventsinsimilarcircumstancesandarepresentedtotheextentpossible,inthesamemannerastheCompany’sseparateFinancialStatements,exceptincasesasmentionedunderS.No.2.19ofNotestotheConsolidatedFinancialStatements.

• TheexcessofthecosttotheCompanyofitsInvestmentinSubsidiariesorJointVenturesoveritsproportionateshareintheequityofinvesteeCompanyatthedateofacquisitionofstakeisrecognizedintheconsolidatedfinancialstatementsasGoodwill.IncasethecostofinvestmentinaSubsidiariesorJointVenturesislessthantheproportionateshareintheequityoftheinvesteecompanyasonthedateofinvestment,thedifferenceisrecognizedasCapitalReserveintheConsolidatedFinancialStatements.

• FOREIGN EXCHANGE TRANSLATIONS

For thepurposeofpreparationofConsolidatedFinancial Statements, assetsand liabilities (other thanfixedassets)ofOverseasSubsidiary/ Joint Venture have been translated at the rate of exchange prevailing on the date of balance sheet of the foreignSubsidiaryCompany/JointVentureandallitemsoftheprofitandlossaccountshavebeentranslatedataveragemonthlyExchangeRatesandtheresultantdifferencesaretakendirectlytotheprofitandlossaccountunder“DifferenceinExchange(Net)”.

ii) TheSubsidiaryCompanies/JointVenturesconsideredintheConsolidatedFinancialStatementsare:

Name of the Company Relationship Country of Incorporation

% Share holding held as at 31st March, 2015

CertificationEngineersInternationalLimited Subsidiary India 100

EILAsiaPacificSdn.Bhd. Subsidiary Malaysia 100

TEILProjectsLimited JointVenture India 50

JabalEiliotCo.Ltd. JointVenture Saudi Arabia 33.333

RamagundamFertilizersandChemicalsLimited JointVenture India 49.90

iii) TheannualreportingdateofFinancialStatementsofEILAsiaPacificSdn.Bhd.(ForeignSubsidiaryoftheCompany)is31stDecember,2014asagainsttheCompany’sreportingdatewhichis31stMarch,2015.Therewerenosignificantfinancialtransactionsoccurredbetweenreportingdateofforeignsubsidiaryand31stMarch,2015whichrequiresadjustment.Further,thesubsidiarycompanyhasgoneintoliquidationafteritsreportingdateof31stDecember,2014.

iv) TheannualreportingdateofFinancialStatementsofJabalEiliotCo.Ltd. (ForeignJointVentureCompany) is31stDecember,2014asagainst theCompany’s reportingdatewhich is 31stMarch, 2015.Adecisionwas taken todissolve the JointVenture, forwhich theapprovalwasgivenbytheBoardofDirectorsoftheEngineersIndiaLimitedon30thJanuary,2015.Thelatestauditedavailablefinancialstatementsforyearended31stDecember,2014hasbeenusedinpreparationofconsolidatedfinancialstatements.Further,partcapitalof the jointventureamounting toSR30.00Lakhshasbeen repatriatedafter31stDecember,2014whichhasbeen taken intoeffectforpreparationofconsolidatedfinancialstatements.TherewerenoothersignificantfinancialtransactionsbetweenreportingdateofforeignJointVentureand31stMarch,2015whichrequireadjustment.

Significant Accounting Policies and Notes to the Consolidated Financial Statements for the year ended 31st March, 2015.


204

v) TheCompanyhas,alongwithNationalFertilizersLimited(NFL)andFertilizerCorporationof IndiaLimited(FCIL) incorporateda jointventureforsettingupandoperationofagasbasedureaandammoniacomplexinFebruary,2015namelyRamagundamFertilizersandChemicalsLimited(RFCL)havingregisteredofficeinDelhi.

TheCompanyhasinitialAuthorizedsharecapitalof`100croreconsisting10croresharesoffacevalueof`10/-each.

TheinitialpaidupcapitalbyJointVenturePartnersason31-03-2015isasunder:

Shareholder No. of Shares held of face value of `10/- each Paid up Share Capital

EIL 24.40Lakhs `244.00Lakhs

NFL 24.40Lakhs `244.00Lakhs

FCIL 0.10Lakhs `1.00Lakhs

Total 48.90 Lakhs `489.00 Lakhs

TheCompanyisintheprocessofstartingitsoperations.TheJVcompanyisconsolidatedbasedonunauditedinformationreceived.

vi) The companyhasentered intoProductionSharingContractswithGovernmentof Indiaalongwithotherpartners forExploration&ProductionofOilandGas.TheCompanyisanon-operatorandishavingfollowingparticipatinginterestintheventures.ThecompanywouldshareExpense/Income/Assets/Liabilitiesoftheventuresonthebasisofitspercentageintheproductionsharingcontracts.Thedetail of company’s interest in blocks is as under:

Block No. Participating Interest

CB-ONN-2010/11 20%

CB-ONN-2010/08 20%

Basedonunauditedavailableinformation,revenueexpenditureof`719.98Lakhs(Previousyear:`495.31Lakhs)andcapitalexpenditureof `4.77Lakhs(Previousyear:NIL),beingthecompany’ssharehasbeenaccountedfor inthefinancialstatementsfortheyearended 31stMarch,2015.

c) OTHER SIGNIFICANT ACCOUNTING POLICIES

Thesearesetoutinthenotestoaccountsunder“StatementofAccountingPolices”oftherespectivefinancialstatementsof‘theCompany’,CertificationEngineersInternationalLimitedandEILAsiaPacificSdn.Bhd.(Subsidiaries).


205

2) Notes to Consolidated Accounts for the year ended 31st March, 20152.1) Share Capital :The company at present is having only one class of share capital i.e. equity share capital. The requisite disclosure in respect of share capital are as under :


` in lakhs


` in lakhsAuthorised600,000,000EquitysharesofParValueof`5each(PreviousYear: 30000.00 30000.00600,000,000EquitysharesofParValueof`5each)

Issued 337,017,600EquitysharesofParValueof`5each(Previousyear: 16850.88 16850.88337,017,600EquitysharesofParValueof`5each)

Subscribed and Paid up336,936,600EquitysharesofParValueof`5each(PreviousYear: 16846.83 16846.83336,936,600EquitysharesofParValueof`5each)fullypaidup

Add: Forfeited Shares 0.01 0.01Amountoriginallypaidupon2,600EquitysharesofParValueof `5each(PreviousYear:2,600equitysharesofParValueof`5each) 16846.84 16846.84

Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period :



No. of shares outstanding at the beginning of the period 336936600 336936600No. of shares outstanding at the close of the period 336936600 336936600

Rights, Preferences and Restrictions attaching to Equity SharesTheCompanyishavingoneClassofEquityShareshavingaParValueof`5each.EachShareholderiseligibleforonevoteperShareheld.

TheDividendproposedbyBoardofDirectorsissubjecttotheapprovalofShareholdersintheensuingAnnualGeneralMeetingexceptincaseofInterimDividend.IntheeventofLiquidation,EquityShareholdersareeligibletoreceivetheremainingassetsoftheCompanyafterdistributionofallPreferentialamountinproportiontotheirShareholding.Details of each Shareholder holding more than 5 percent shares

Name of the shareholder Number of shares held as at

31st March, 2015

Number of shares held as at

31st March, 2014President of India 233727299 233727299No. of shares outstanding at the close of the period 69.37% 69.37%

Other disclosures



Aggregate number of equity shares having par value of `5/-each 224624400 224624400allottedasfullypaidupbywayofbonusshareduringtheperiodoffiveyears immediately preceding the Balance sheet date


206

2.2) Reserves & Surplus :TheClassificationofReserves&SurplusdisclosingthereinAppropriation/Allocation/Transfersisdetailedasunder:

as at 31st March, 2015

` in lakhs


` in lakhsA. General ReserveBalance as per lastBalance sheet 232143.47 210108.30Less:Adjustmentforadditionaldepreciation(netofdeferredtax)intermsofScheduleIIoftheCompaniesAct,2013forassetswhoseusefullifeason1-4-2014isNil 38.13 0.00Add:TransferredfromProfitandLossAccount 11062.15 243167.49 243167.49 22035.17 232143.47 232143.47

B. Profit & Loss AccountBalance as per lastBalance sheet 0.00 0.00Add: Transferred from Statement ofProfitandLoss 31270.74 48273.08Add: Transferred from CSRActivityReserve 1716.46 32987.20 665.18 48938.26

Less:Appropriations:Interim Dividend 10108.10 11792.78Proposed Final Dividend 6738.73 10108.10TaxonInterim/ProposedDividend 3392.87 3722.05TransfertoCSRActivityReserve 1685.35 1280.16TransfertoGeneralReserve 11062.15 32987.20 0.00 22035.17 48938.26 0.00

C. CSR Activity ReserveBalance as per lastBalance sheet 2874.74 2259.76Less:TransfertoProfitandLossAccount 1716.46 665.18

1158.28 1594.58Add:TransferredfromProfitandLossAccount 1685.35 2843.63 2843.63 1280.16 2874.74 2874.74

D. Capital ReserveCapitalGrantReceivedfrom Oil Industry DevelopmentBoardforR&DCentre 200.00 200.00CapitalReserveduetoConsolidation 108.71 108.71

246319.83 235326.92

2.3) Non- Current Liabilities :TheDisclosureofNon-CurrentLiabilitiesIncludingtheirsub-Classificationintomajorheadsisgivenasunder:


` in lakhs


` in lakhs2.3 (A) Other Long Term Liabilities :SecurityDeposits&Retentions 78.28 79.52 Advances Received from Clients 143.51 107.59

221.79 187.112.3 (B) Long Term Provisions :Employees'PostRetirement/LongTermBenefits 2044.17 2253.78

2044.17 2253.78Above includes `3.19Lakhs(PreviousYear:`2.70Lakhs)shareofJointVentures


207

2.4) Current Liabilities :TheDisclosureofCurrentLiabilitiesIncludingtheirsub-Classificationintomajorheadsisgivenasunder:


` in lakhs


` in lakhs2.4 (A) Short Term Borrowings Loans repayable on demand from Banks (Secured)OverdraftFacility(refernote(i)below) 50.00 16.45

50.00 16.45Notes :(i)Overdraftfacilitiesaresecuredbywayof:(a)Firstchargeonbookdebts,inventoriesandothercurrentassets(b)Corporateguranteesbyparentcompanies(EngineersIndiaLimitedandTataProjectsLimited)

2.4 (B) Trade Payables 24685.44 28341.9424685.44 28341.94

2.4 (C) Other Current Liabilities :SecurityDeposits&Retentions 21065.36 22488.49Advances Received from Clients 4947.67 1824.23IncomeReceivedinAdvance* 21605.52 19510.64Capital Creditors 1279.77 1821.76Service Tax Payable 191.83 281.73UnpaidDividend** 92.95 94.19Other Payables :-WithholdingforEmployeesincludingEmployersContribution 1122.71 1028.90-WithholdingforIncomeTaxes 2762.83 1921.66-AccruedEmployeesBenefits 2254.63 2535.74-AmountheldonbehalfofClients 2066.73 2823.68-Others 939.55 9146.45 96.45 8406.43

58329.55 54427.47

*RepresentsGrossamountduetoCustomerforContractWorkintermsofAccountingStandard(AS-7)"ConstructionContracts"**ExcludingamountdueforpaymenttoInvestorEducationAndProtectionFund

2.4 (D) Short Term Provisions :Employees'PostRetirement/LongTermBenefits 3705.38 4311.43ContractualObligations 27906.45 25440.86Expectedlosses 7551.16 0.00Provision for Corporate Social Responsibility 226.90 0.00ProvisionforTaxation 16416.08 21723.61Less: Advance Income Tax 13601.87 2814.21 19022.60 2701.01Proposed Dividend 6738.73 10108.10Tax on Dividend 1371.84 1717.87

50314.67 44279.27

Above includes `106.52Lakhs(PreviousYear:`86.09Lakhs)shareofJointVentures


208

2.5) Fixed Assets(`inLakhs)

PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK

AS ON31st March,

2014

ADD.FOR YR.

SOLD/RECL/TRNS/ADJ.

AS ON31st March,

2015

DEP UPTO31st March,

2014

DEP FOR YEAR

DEP WRTN.BACK

TOT.DEP.31st March,

2015

WDV AS ON31st March,

2015

WDV AS ON

31st March, 2014

Tangible Assets:

Land Freehold 298.08 0.00 0.00 298.08 0.00 0.00 0.00 0.00 298.08 298.08

Land Leasehold 1617.18 0.00 0.00 1617.18 46.29 14.74 0.00 61.03 1556.15 1570.89

Building 10799.08 14678.25 54.34 25422.99 2888.67 795.80 51.89 3632.58 21790.41 7910.41

Plant&Machinery

1090.81 0.00 3.00 1087.81 1045.84 0.00 1.59 1044.25 43.56 44.97

Furniture,Fixtures And Office/Constn.Equipment

2620.51 1110.97 0.85 3730.63 1885.43 240.19 0.79 2124.83 1605.80 735.08

Computer Hardware

6395.54 1256.83 80.46 7571.91 5201.95 720.97 77.06 5845.86 1726.05 1193.59

Motor Vehicles 22.36 0.00 0.00 22.36 15.41 2.93 0.69 17.65 4.71 6.95

Library Books 492.29 1.83 0.03 494.09 492.29 1.83 0.03 494.09 0.00 0.00

Less: Assets held for disposal

442.87 430.87 12.00 0.00

Total Tangible Assets

23335.85 17047.88 138.68 39802.18 11575.88 1776.46 132.05 12789.42 27012.76 11759.97

Intangible Assets:

Computer Software

4360.96 208.35 0.00 4569.31 4028.45 328.29 0.00 4356.74 212.57 332.51

Total Intangible Assets

4360.96 208.35 0.00 4569.31 4028.45 328.29 0.00 4356.74 212.57 332.51

TOTAL 27696.81 17256.23 138.68 44371.49 15604.33 2104.75 132.05 17146.16 27225.33 12092.48

Previous Year 19795.92 8264.13 363.24 27696.81 14437.71 1505.32 338.70 15604.33 12092.48 5358.21

Capitalworkinprogress

1911.20 13176.15

Depreciationfortheyearincludes:

a) Priorperioddepreciationof`30.04Lakhs(PreviousYear:`26.54Lakhs)b) Additionaldepreciationof`57.16LakhsadjustedfromGeneralReserveintermsofScheduleIIoftheCompaniesAct,2013forassetswhose

usefulremaininglifeason1-4-2014isNil.Net Fixed Assets includes `9.87lakhs(Previousyear`15.79Lakhs)ShareofJointVentures.


209

2.6) Non Current Investments :TheClassificationofNonCurrentInvestments(LongTerm)intodifferentcategorieswithrequisitedetailsisgivenasunder:


` in lakhs


` in lakhs1 Trade (At Cost)Unquoted Investment in Association of Persons (AOP):CapitalContributioninPetroleumIndiaInternational 500.00 500.00

Share in Accumulated Surplus of 827.88 1327.88 768.45 1268.45PetroleumIndiaInternational

TOTAL 1327.88 1268.45

OtherMemberCompaniesare:BharatPetroleumCorporationLtd,HindustanPetroleumCorporationLimited,IndianOilCorporationLimited,IndianPetrochemicalCorporationLimited,ChennaiPetroleumCorporationLimitedandOilIndiaLimited.OilandNaturalGasCorporationofIndiaLimitedwasmembertillJune,2001.TotalCapitalofPetroleumIndiaInternationalis`5500.00LakhsandEIL’sshareinCapitalofAOPis`500.00Lakhs.

Detailsofshareinaccumulatedsurplusfor investmentinPetroleumIndiaInternational,anassociationofpersoninwhichtheCompanyisamember,basedonlastavailableannualauditedaccountsforthefinancialyear2013-14andamountreceivedduringthecurrentyearisasunder:

(`inLakhs)

Balance as on 1st April, 2014 Share of Profit accounted during year 2014-15

Amount received during the year 2014-15

Balance as on 31st March, 2015

768.45 59.43 0.00 827.88

PetroleumIndiaInternationalduringfinancialyear2010-11hasceaseditsbusinessactivitiesandisinprocessofdissolution.UnquotedAggregateValueofUnquotedInvestments-GrossBookValue 1327.88 1268.45

2.7) Long Term Loans & Advances:ThedetailsofLongtermsLoans&Advancesclassifiedunderdifferentheadsisdisclosedhereunder:


` in lakhs


` in lakhsa) Capital Advances - Unsecured (Considered Good) 314.00 527.59b) Security Deposit :Unsecured-ConsideredGood 192.50 235.18c) Loans & Advances to Related Parties :Secured-Considered Good:Directors 0.00 2.23Unsecured-Considered Good:Directors 6.53 0.79Others 6.09 12.62 6.57 7.36d) Other Loans and Advances(AdvancesRecoverableinCashorinKindorforvaluetobereceived):Secured-Considered Good:Employees 1754.93 1946.00Unsecured-Considered Good:Employees 2033.09 1925.85Others 16.39 2049.48 9.57 1935.42

Advance Income Tax 52595.99 63037.02Less:ProvisionforTaxation 51945.40 650.59 62222.48 814.54

AdvanceFringeBenefitTax 63.93 60.43Less:ProvisionforFringeBenefitTax 48.60 15.33 48.60 11.83

4989.45 5480.15Above includes `6.30Lakhs(PreviousYear:`6.32Lakhs)shareofJointVentures


210

2.8) Other Non Current Assets :DetailsofotherNon-CurrentAssetsClassifiedunderdifferentheadsisdisclosedhereunder:


` in lakhs


` in lakhsBank Balances :Non-CurrentBankDeposits 94.07 171.37

Total (A) 94.07 171.37

The above includes Bank Deposits `94.07Lakhs(PreviousYear:`171.37Lakhs)heldasMarginMoney/SecurityagainstBankGurantees.

Others :InterestAccruedonNon-CurrentBankDeposits 5.71 7.76

Total (B) 5.71 7.76

Total (A+B) 99.78 179.13


211

2.9) Current Assets :ThedetailsofCurrentAssetsClassifiedunderdifferentheadsisgivenasbelow:


` in lakhs


` in lakhs2.9 (A) Current Investments :1) Current Maturity of Long Term Investments - (At Cost Less Diminution in Value Other than Temporary)

Other than TradeQuotedInvestment In units of Fixed Maturity Plan of Mutual FundsNo. of Units

Nil SBIDebtFundSeries-366Days-25- 0.00 15000.00(PreviousYear:150000000) GrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXIV-VIII(371Days) 0.00 9000.00(PreviousYear:90000000) DirectGrowthPlanof`10Each


Nil IDBIFMP-SeriesIII-366Days-(July2013)-G 0.00 2000.00(PreviousYear:20000000) DirectPlanGrowthof`10Each

Nil UTIFixedTermIncomeFundSeriesXV-X(368Days) 0.00 2900.00(PreviousYear:29000000) DirectGrowthPlanof`10Each



Nil UTIFixedTermIncomeFundSeriesXVII-XX(369Days) 0.00 5700.00(PreviousYear:57000000) DirectGrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXVIII-III(367Days) 0.00 3025.00(PreviousYear:30250000) DirectGrowthPlanof`10Each

Nil UTIFixedTermIncomeFundSeriesXVIII-IV(366Days) 0.00 4200.00(PreviousYear:42000000) DirectGrowthPlanof`10Each

Nil IDBIFMP-SeriesIV-368Days-(February2014)-C 0.00 700.00(PreviousYear:7000000) DirectPlanGrowthof`10Each




45000000 UTIFixedTermIncomeFundSeriesXVIII-V(370Days) 4500.00 0.00(PreviousYear:Nil) DirectGrowthPlanof`10Each

79000000 SBIDebtFundSeries-A17-366Days 7900.00 0.00(PreviousYear:Nil) DirectGrowthPlanof`10Each

TOTAL (a) 12400.00 71900.00


212

2) Other Current Investments (lower of cost or net realizable value)Other than tradeUnquotedIn Units of Liquid Plans of mutual funds

No. of Units5307.325 UTI Treasury Advantage Fund 53.20 0.00

(PreviousYear:Nil) of `1000Each

TOTAL (b) 53.20 0.00

TOTAL (a+b) 12453.20 71900.00

AggregateValueofQuotedInvestments-BookValue 12400.00 71900.00AggregateValueofQuotedInvestments-MarketValue 13493.18 75367.36AggregateValueofUnquotedInvestments-BookValue 53.20 0.00

2.9 (B) Inventories (lower of cost or net realizable value) :Stores,SparesandChemicalsinHand 83.96 102.49

83.96 102.49

2.9 (C) Trade Receivables (Unsecured)Trade Receivable Outstanding for a period exceeding six months from the date they are due for payment:ConsideredGood 13993.10 14953.61ConsideredDoubtful 4862.17 4121.55

18855.27 19075.16OtherTradeReceivable:ConsideredGood 29864.55 20421.23

48719.82 39496.39Less:ProvisionforDoubtfulDebts 4862.17 43857.65 4121.55 35374.84



` in lakhs


` in lakhs


213


` in lakhs


` in lakhs2.9 (D) Cash And Bank Balances :Cash & Cash Equivalents:BalanceswithBanksinCurrentAccount# 1490.06 1387.15BalanceswithBanksinDepositAccounthavingoriginalmaturityof three months or less 0.00 175.00RemittanceinTransit 13.15 0.00Cash&StampsonHand# 9.18 1512.39 39.83 1601.98

Other Bank Balances :Unpaid Dividend Account 92.95 94.19HeldonBehalfofClients 2066.73 2823.68BalanceswithBanksindepositsaccounthavingmaturityofmorethanthreemonthsbutaredueformaturitywithintwelvemonthsofbalancesheetdate* 238226.42 240386.10 176726.92 179644.79

241898.49 181246.77

*IncludesBankdepositshavingmorethantwelvemonthsoriginalmaturityof`33730.56Lakhs(PreviousYear:`28725.90Lakhs)*IncludesBankdeposits`232.67Lakhs(PreviousYear:`143.40)heldasmarginMoney/SecurityagainstBankGuarantees.#Includes`62.19Lakhs(PreviousYear:`119.43Lakhs)incurrencieswhicharenotrepatriable.Above includes `426.90Lakhs(PreviousYear:`590.64Lakhs)shareofJointVentures


214


` in lakhs


` in lakhs2.9 (E) Short Term Loans & Advances :

a) Loans & Advances to Related Parties :Secured-Considered Good:Directors 0.59 1.28Unsecured-Considered Good:Directors 0.96 0.51Others 0.81 1.77 0.81 1.32

b) Security DepositUnsecured-ConsideredGood 341.23 276.52Unsecured-ConsideredDoubtful 0.69 4.19

341.92 280.71Less:ProvisionforDoubtfulDeposits 0.69 341.23 4.19 276.52

c) Other Loans and Advances :(AdvancesRecoverableinCashorinKindorforValuetobeReceived):Secured-Considered Good:Employees 259.69 259.57Unsecured-Considered Good:Employees 1004.70 842.03PrepaidExpenses 408.32 258.06AdvancestoVendors/Contractors 5213.59 2170.62Advance Income Tax 0.00 115.32AdvanceFringeBenefitTax 0.00 3.50RetentionagainstContracts 587.74 579.35Claims Receivable 0.60 0.60Others 891.58 541.64Unsecured - Considered Doubtful :Employees 1.36 1.36AdvancestoVendors/Contractors 2.58 2.58Claims Receivable 286.30 286.30

8656.46 5060.93Less:ProvisionforDoubtfulLoans&Advances 290.24 8366.22 290.24 4770.69

TOTAL (a+b+c) 8709.81 5049.81


2.9 (F) Other Current Assets :WorkInProgress* 50.58 643.50Fixed asset held for disposal 12.00 0.00Interest Accrued on Current Bank Deposits 5222.15 4132.77UnbilledRevenue** 27658.97 27831.52

32943.70 32607.79*Astaken,valuedandcertifiedbythemanagement**RepresentsGrossamountduefromCustomerforContractWorkintermsofAccountingStandard(AS-7)"ConstructionContracts"



215


` in lakhs


` in lakhs2.10) Revenue from Operations :ThedetailsofRevenuefromoperationsfordifferentcomponentsofrevenueisdetailedasbelow:

A) Consultancy & Engineering Services 98258.74 119254.0098258.74 119254.00

B) Turnkey Projects 76458.74 71452.0376458.74 71452.03

Total (A+B) 174717.48 190706.03 Increase/(Decrease) in Work-in-ProgressA) Consultancy & Engineering ServicesClosingWork-in-Progress 6.21 643.50Less:OpeningWork-in-Progress 643.50 (637.29) 6702.38 (6,058.88)B) Turnkey ProjectsClosingWork-in-Progress 44.37 0.00Less:OpeningWork-in-Progress 0.00 44.37 (592.92) 0.00 - (6,058.88)

2.11) Other IncomeThe details of other Income into various categories is disclosed hereunder :

Interest Earned (Gross) :Bank deposits 18960.57 17949.34LoanstoEmployees 161.97 163.65Others 543.86 368.21

19666.40 18481.20Income from Long Term Investments:ShareofProfitfromAOP(TradeInvestment) 59.43 56.47

Dividend Income from Current Investments 282.62 163.55CapitalGainonredemptionofInvestmentsinMutualFunds

6719.82 3874.26

Funds recd. for expenditureagainstR&D 189.47 378.35Less:Utilisation (189.47) - (378.35) -ProfitonSaleofAssets 12.52 3.52Miscellaneous Income 570.90 621.45

7645.29 27311.69 4719.25 23200.45



216

Expenses :TheDetailsofexpensesundervariousheadsaspertheirnatureisasgivenbelow:


` in lakhs


` in lakhs2.12) Technical Assistance/Sub Contracts 33288.59 43517.45

2.13) Construction Materials & Equipments 25334.52 19245.68

2.14) Employee Benefits Expense : Salaries and Allowances @Staff 46141.21 47728.42 Directors 323.07 46464.28 228.85 47957.27

Contribution towards Employees` Pension and Provident Fund & Administration Charges thereon:Staff 3899.26 3737.95 Directors 15.89 3915.15 15.17 3753.12

Contribution towards Employees` Defined Contributory Superannuation Scheme:Staff 4827.11 4051.91 Directors 20.30 4847.41 16.95 4068.86

Staff WelfareStaff 4194.10 4450.13 Directors 5.81 4199.91 6.60 4456.73

ContributiontoGratuityFund* 666.91 378.72Less:ContributionreceivedfromOthers 3.50 663.41 0.00 378.72

60090.16 60614.70

@SalariesandAllowancesIncludes:a)ProvisionforBonusof`0.08Lakhs(PreviousYear:`0.08Lakhs).b)`1827.23Lakhs(PreviousYear:`2783.74Lakhs)onaccountofLeaveEncashmentFundedSchemewithLICofIndia.*IncludesTermInsurancePremiumpaidtoLICofIndia.



217


` in lakhs


` in lakhs

2.15) Depreciation & Amortization ExpenseDepreciation&AmortizationExpense 2017.55 1478.78

2017.55 1478.78

2.16) Other Expenses :

2.16 (a) Facilities : Rent :Office 585.51 523.91ResidentialAccommodationStaff 1097.35 931.22 Directors 10.41 1107.76 14.70 945.92Less:Recovered-Staff 156.44 133.27-Directors 1.66 158.10 949.66 2.44 135.71 810.21

Light,Water&Power 1213.88 999.68 Insurance 563.83 321.55Misc.Repairs&Maintenance* 2545.94 2439.30HireChargesofOfficeEquipments 24.23 36.95

5883.05 5131.60

2.16 (b) Corporate Cost : Bank Charges 168.68 133.56SittingFeestoIndependentDirectors 12.60 9.46 Interest 28.63 6.80AdvertismentforTender&Recruitment 708.19 861.47 Publicity 227.38 580.94Subscription 148.30 114.38Entertainment 249.49 253.83ForeignExchangeDifference(net)** 214.00 497.01RemunerationtoAuditors: For Audit 9.51 8.88 For Tax Audit 1.90 1.75 Out of Pocket 1.08 0.99 Others 6.68 19.17 13.70 25.32 Filing Fee 1.55 1.20Legal&ProfessionalCharges 391.00 496.76Licences&Taxes 279.45 376.24 Loss on Sale of Assets 0.10 1.99FixedAssetsWrittenoff 4.79 18.03

2453.33 3376.99

*Includes`110.42Lakhs(PreviousYear:`220.22Lakhs)forrepairs&maintenanceofownbuildingand`180.46Lakhs(PreviousYear:`289.98Lakhs)forPlant&Machinery.**Includes`135.95Lakhs(PreviousYear:Nil)towardsexchangegainonrepatriationofJointVenture'spartcapital.



218


` in lakhs


` in lakhs2.16 (c ) Other Costs

Consumables/Stores/EquipmentR&DCentre 270.16 257.88

Travel&ConveyanceDirectors@ 70.55 70.79 Others 8510.63 8581.18 7288.02 7358.81

Printing,Stationery&GeneralOfficeSupplies 436.58 414.39

NewspapersandPeriodicals 70.16 74.06

Postage&Telecommunications 624.89 543.15

Courier,Transportation&Handling 57.22 48.76

Commission to Foreign Agents 434.24 219.63

ProvisionforDoubtfulDebts&Advances(net) 737.13 (1,085.19)

BadDebtswrittenoff 98.71 8.33

ProvisionforContractualobligations(net) 2465.59 (5,168.59)

Provision for expected losses 7551.16 0.00

TrainingExpenses Travel 67.44 34.68 Others 255.51 322.95 319.39 354.07

CSRExpenses 1708.07 646.32

ExpenditurerelatingtoOil&Gasexplorationblocks 719.98 495.31

MiscellaneousExpenses 119.71 94.93

24197.73 4261.86Less:InhouseexpenditurerelatingtoCapitalWorks 338.33 481.21 CSR 5.37 343.70 0.00 481.21

23854.03 3780.65

@Includesrecoveryof`1.52Lakhsonaccountofuseofcar(PreviousYear:`0.92lakhs)



219

2.17 Contingent Liabilities & Commitmentsi) Contingent Liabilities:

a) ClaimsagainsttheCompanynotacknowledgedasdebt.

Commercialclaimsincludingemployee’sclaimspendingintheCourtsorlyingwithArbitratorsamountingto`4518.75Lakhs(Previousyear: `4130.28Lakhs).

b) IncomeTax/FringeBenefit Tax assessmentshavebeen completedupto the assessment year 2012-13. IncomeTax liability, if any, inrespectofpendingassessmentsfortheassessmentyears2013-14and2014-15cannotbeascertainedalthoughtaxasperreturn/revisedreturn has been paid in full.

WealthTaxAssessmentshavebeencompletedupto theAssessmentYear2012-13.WealthTax liability, ifany, in respectofpendingassessmentsfortheAssessmentYears2013-14and2014-15cannotbeascertainedalthoughtaxonreturnedwealthhasbeenpaidinfull.

Companyhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)andotherprocessingmistakesamountingto`348.86lakhsforassessmentyears2010-11and2011-12(PreviousYear:`387.52lakhsforassessmentyears2007-08,2010-11and2011-12).

Income Tax Department is in appeal for an amount of `312.55lakhswithIncomeTaxAppellateTribunalagainsttheCommissionerofIncomeTax(Appeals)OrdersinCompany’sfavourfortheAssessmentYears2002-03,2004-05and2010-11(PreviousYear:̀ 608.44lakhsforassessmentyears2002-03and2004-05).

CompanyhasfiledanappealwithCommissionerofIncomeTax(Appeal)foranamountof`43.48LakhsagainsttheorderofAssessingOfficeru/s143(3)fortheAssessmentYear2012-13.

CompanyhasfiledanappealwithCommissionerofIncomeTax(Appeals)foranamountof`0.32Lakhs(Previousyear:`0.32Lakhs)againsttheorderofAssistantCommissionerofIncomeTax(TDS)u/s201(1)fortheAssessmentYear2009-10.

Companyhasfiledanappealagainstdemandofservicetax(inclusiveofpenaltyof`31.44Lakhs)for`62.87lakhs(PreviousYear:`62.87lakhs)andinterestthereonbyCommissionerofCentralExcise(Appeals)fortheperiod01.4.2002to17.4.2006beforeCustoms,ExciseandServiceTaxAppellateTribunal(CESTAT).

TheCompanyhasfiledanappealagainsttheorderofAdditionalCommissioner(Appeals),MathurabeforeSalesTaxTribunal,Agraforan amount of `132.53Lakhs(PreviousYear:`132.53lakhs)inrespectofassessmentyear1999-2000and`116.12Lakhs(PreviousYear`116.12lakhs)forassessmentyear2000-01onaccountofsalestax.

TheCompanyhasfiledanappealagainsttheorderofAdditionalCommissioner(Appeals),MathurabeforeSalesTaxTribunal,Agraforanamount of `18.71Lakhs(PreviousYear:`18.71lakhs)onaccountofentrytaxfortheyear1999-2000andagainstwhichanamountof`5.01Lakhs(PreviousYear:`5.01lakhs)hadbeendeposited.

c) IncomeTaxAssessmentsinrespectofCertificationEngineersInternationalLimitedhavebeencompleteduptotheAssessmentYear2012-13.IncomeTaxliability,ifany,inrespectofpendingassessmentfortheassessmentyears2013-14and2014-15cannotbeascertainedalthough tax as per return has been paid in full.

CertificationEngineersInternationalLimitedhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)amountingto`91.91lakhsfortheassessmentyear2012-13.

CertificationEngineersInternationalLimitedhasfiledanappealwithCommissionerofIncomeTax(Appeal)foranamountof`1.31lakhs(PreviousYear:`1.31lakhs)againsttheorderofAssessingOfficeru/s143(3)fortheAssessmentYear2011-12.

CertificationEngineersInternationalLimitedhasfiledanapplicationforrectification(u/s154)ofshortcreditgivenforTaxDeductedatSource(TDS)andotherprocessingmistakesamountingto`42.63lakhs(PreviousYear:`42.63lakhs)forassessmentyear2011-12.

CertificationEngineersInternationalLimitedhasfiledareplytoshowcausenoticecumdemandof`227.47lakhs(PreviousYear`227.47lakhs)createdbyCommissioner,ServiceTax,Mumbaion27thNovember2009,fortheperiodfromApril,2004toMarch,2009.

CertificationEngineersInternationalLimitedhasfiledareplytoshowcausenoticecumdemandof̀ 3.21lakhs(PreviousYear̀ 3.21lakhs)createdbyCommissioner,ServiceTax,Mumbaion29thOctober2010,fortheperiodfromApril,2009toMarch,2010.

CertificationEngineersInternationalLimitedhasfiledareplytoshowcausenoticecumdemandof̀ 8.92lakhs(PreviousYear̀ 8.92lakhs)createdbyAdditionalCommissioner,ServiceTax,Mumbaion18thOctober2011,fortheperiodfromApril,2010toMarch,2011.

CertificationEngineersInternationalLimitedhasfiledareplytoshowcausenoticedemandof`20.91lakhs(PreviousYear`20.91lakhs)createdbyAdditionalCommissioner,ServiceTax,Mumbaion8thNovember,2012,fortheperiodfromApril,2011toMarch,2012.

Certification Engineers International Limited has filed a reply to show cause notice demand of `0.40 lakhs created by AdditionalCommissioner,ServiceTax,Mumbaion12thJune,2014,fortheperiodfromApril,2012toMarch,2013.

CertificationEngineersInternationalLimitedhasreceivednoticefromNaviMumbaiMunicipalCorporation(NMMC)dated4thMarch,2015,claiming`43.90lakhsasoutstandingpropertytaxforthepropertyatCBDBelapurStation(HeadOffice).Inreply,thecompanyhasrequestedtheconcernedauthoritytocarryoutassessmentofpropertytax,andraisebillsaccordingly.Ithasalsobeenstatedthatpendingassessmentofpropertytaxandgenerationofsupportingbillstowardstheclaim,nodelayedpaymentchargesareleviable.


220

CertificationEngineersInternationalLimitedhasalreadypaidpropertytaxonself-assessmentbasisfortheperiodupto31stMarch,2015,pendingassessmentofpropertytax,priortoreceiptofthesaidnotice.Onthestrengthofalegalopinionobtainedinthisregardandinternalreview,thecompanyisconfidentthatpaymentalreadymadeisadequateinthegivencircumstancesandnoprovisiontowardsoutstanding property tax is necessary.

d) CorporateGuaranteegivenonbehalfofJointVenture`200Lakhs(Previousyear:`200Lakhs)

Inrespectofabovecontingentliabilities,itisnotprobabletoestimatethetimingofcashflow,ifany,pendingtheresolutionofArbitration/Appellate/Court/Assessmentproceedings.

ii) Commitments:

Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedfor`2182.47Lakhs(Previousyear `5050.63Lakhs).

Company’sestimatedshareinworkprogrammescommittedunderproductionsharingcontractinrespectofoil&gasexplorationblocksason31stMarch,2015is`5121.53Lakhs(Previousyear:`5583.75Lakhs).

2.18 a) Guaranteesissuedbythebanksandoutstandingason31stMarch,2015`74212.12Lakhs(Previousyear:`45106.82Lakhs),againstwhichaprovisionof̀ 23079.59Lakhs(Previousyear:̀ 19941.61Lakhs)hasbeenmadeinthebookstowardsliabilityforperformanceguarantees/warranties.

b) Letterofcreditoutstandingason31stMarch,2015`3599.88Lakhs(Previousyear:`419.98Lakhs).

c) CorporateGuaranteesissuedbytheCompanyonitsbehalfforcontractualperformanceandoutstandingason31stMarch,2015`22471.50Lakhs(Previousyear:`24300.50Lakhs).

2.19 a) DepreciationhasbeenprovidedovertheestimatedusefullivesofthedepreciableassetsusingthestraightlinemethodinrespectofJointVenture,JabalEiliotCo.Ltd.asagainststraightlinemethodeitheronthebasisofratesarrivedatwithreferencetotheusefullifeoftheassetsevaluatedbytheCommitteeconsistingofTechnicalexpertsandapprovedbytheManagementorratesarrivedatbasedonusefullifeprescribedunderPartCofScheduleIIoftheCompaniesAct,2013,whicheverishigherinthecaseof‘theCompany’.

b) Noincomehasbeentakenintoaccountonjobsforwhichthetermshavebeenagreedtoatlumpsumservices/turnkeycontractsandoutcomeof jobcannotbeestimatedreliably inthecaseof ‘Company’asagainstphysicalprogressof lessthan25%incaseofSubsidiary, ‘CertificationEngineers International Limited’andphysicalprogressof less than10% in thecaseof JointVentureCompany‘TEILProjectsLimited’.

TheproportionofaboveitemsintheConsolidatedFinancialStatementsisnotmaterial.

2.20. i) Land&Buildingsincludes`0.07Lakhs(`0.07Lakhs)beingamountinvestedasShareMoneyinCooperativeHousingSocietiesasdetailedbelow:

TwintowersPremisesCooperativeSocietyLtd.,Mumbai 10ordinarysharesof`50/-eachfullypaid.

GardenviewPremisesCooperativeSocietyLtd.,Mumbai 10ordinarysharesof`50/-eachfullypaid.

HeeraPannaTowersCooperativeHousingSocietyLtd.,Vadodara 10ordinarysharesof`50/-eachfullypaid.

SuflamCooperativeHousingSocietyLtd.,Ahmedabad 8ordinarysharesof`250/-eachfullypaid.

DarshanCo-operativeSocietyLtd.,Vadodara 80ordinarysharesof`50/-eachfullypaid

ii) TheCompanyishavingaplotmeasuring6826.90squaremeterswiththreeBuildings,comprisingof84flatsatGOKULDHAM,GOREGAON(EAST),MUMBAI.Itwasnoticedthatoutoftotalareaof6826.90squaremeter,around4400squaremeterofareaonlyisintheCompany’spossession.TheCompanyhasinitiatedactionbyfilinganapplicationforevictionunderthePublicPremises(EvictionOfUnauthorisedOccupants)Act1971andproceedingthereunderareinprogress.TheCapitalizedcost&Writtendownvalueoftheabovepropertyason31stMarch,2015was`238.19Lakhs(PreviousYear:`238.19Lakhs)and`55.24Lakhs(PreviousYear:`60.96Lakhs)respectively.

iii) PursuanttoapplicabilityofCompaniesAct,2013fromaccountingperiodcommencingafter1April,2014,policyforchargingdepreciationonfixedassetsonstraight linemethod,athigherofrates,arrivedatwithreferencetotheuseful lifeoftheassetsevaluatedbytheCommitteeconsistingofTechnicalexpertsandapprovedbytheManagementorratesarrivedatbasedonusefullifeprescribedunderPartCofScheduleIIoftheCompaniesAct,2013isadopted.


221

In termsof provisions of Schedule II of theCompaniesAct, 2013, in case any assetwhoseuseful life has been completed as on 1April2014,thecarryingvalue,netofresidualvaluethereofhasbeenadjustedfromtheGeneralReserveandinothercasesadditionaldepreciationduetorevisedusefullivesoftheassetshasbeenrecognizedintheStatementofProfitandLoss.Duetoabove,theamountadjustedfromReserve(netofdeferredtax)was`38.13Lakhsandadditionaldepreciationchargeduringthecurrentfinancialyearwas`264.07Lakhs.

2.21 ThereisnoimpairmentofcashgeneratingassetsduringtheyearintermsofAccountingStandard(AS-28)“ImpairmentofAssets”.

2.22 (i) IntermsofprovisionofAccountingStandard(AS–7)“ConstructionContracts”,theinformationinrespectofLumpsumservices/TrunkeyProjectsforcontractinprogressason31stMarch,2015:

a. The aggregate amount of Cost incurred and recognized Profit up to 31stMarch, 2015 `948988.09 Lakhs (Previous Year:`942196.15Lakhs).

b. The amount of advances received `4788.97Lakhs(PreviousYear:`1635.01Lakhs).

c. Theamountofretention`576.92Lakhs(PreviousYear:`573.57Lakhs)

ii) Theestimateswithrespecttotalcostandtotalrevenueinrespectofconstructioncontractsarereviewedandupdatedperiodicallyto ascertain the percentage completion for revenue recognition in accordancewithAccounting Standard (AS) -7 “ConstructionContracts”.However,itisimpracticabletoquantifytheimpactofchangeinestimates.

2.23. Thedisclosures in respectofemployeebenefits coveredunderAccountingStandard (AS-15) “EmployeeBenefits”aremadeas far aspracticable.

Defined Contribution Plan

Theamountrecognizedasanexpenseindefinedcontributionplanisasunder:

(`InLakhs)

Particulars Expense recognized in Year ended 31st March, 2015

Expense recognized in Year ended 31st March, 2014

ContributoryProvidentFund&EmployeesPensionScheme,1995 3915.15 3753.12

EmployeesDefinedContributorySuperannuationScheme 4847.41 4068.86

InrespectofProvidentFund,thecompanyhasaseparateirrevocablePFTrust,managingtheProvidentFundaccumulationofemployees.TheGuidanceon implementingAS15,EmployeeBenefits (revised2005) issuedbyAccountingStandardsBoard (ASB)of ICAI states thatbenefitsinvolvingemployerestablishedprovidentfunds,whichrequireinterestshortfallstobere-compensatedbytheemployeraretobeconsideredasdefinedbenefitplans.Inthisregard,Actuarialvaluationason31stMarch,2015wascarriedoutbytheActuarytofindoutvalueofProjectedBenefitObligationarisingduetointerestrateguaranteebytheCompanytowardsProvidentFund.IntermsofsaidvaluationtheCompanyhasnoliabilitytowardsinterestrateguaranteeason31stMarch,2015.


222


CompanyishavingthefollowingDefinedBenefitPlans:• Gratuity(Funded)• LeaveEncashment(Funded)• PostRetirementMedicalBenefits(Funded)• LongServiceAwards(Unfunded)• OtherbenefitsonRetirement(Unfunded)

(`inLakhs)



(Funded)



(Unfunded)2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

a) Actuarial Assumptions

Discount rate 8.00% 8.50% 8.00% 8.50% 8.00% 8.50% 8.00% 8.50% 8.00% 8.50%Expectedrateofreturnon assets

9.40% 9.20% 9.40% 9.20% 9.40% 9.20% — — — —

Expectedrateoffuturesalary increase

10.00% 10.00% 10.00% 10.00% — — — — — —

Increaseincompensationlevels

— — — — 7.50% 7.50% — — — —

Increaseinprice(Gold)ofaward(Silver)

— — — — — — 12.00%12.00%

13.00%16.00%

— —

IncreaseinotherbenefitsonRetirement

— — — — — — — — 5.00% 5.00%

b) Reconciliation of opening and closing balances of Defined Benefit obligation Present value of obligationsasatbeginning of year

10979.13 10757.69 24938.26 22806.76 10474.67 9265.33 2011.88 2091.87 136.93 153.15

Interest cost 933.22 860.62 2119.75 1824.54 890.35 787.55 171.01 167.35 11.64 12.25Current Service Cost 907.21 886.28 3853.07 2114.40 223.79 195.21 161.22 204.19 7.09 6.87CurtailmentCost/(Credit)

— — (548.99) — — — — — — —

Past Service Cost — — — — — — — — — —Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) (115.33) (127.98) (17.72) (15.47)Actuarial(gain)/lossonObligations

(222.26) (452.37) (1602.34) 779.83 1109.79 1070.98 (507.25) (323.56) 0.71 (19.87)

Present value of obligationsasatendofyear

11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

c) Reconciliation of opening and closing balances of fair value of plan assetsFair value of plan assets as on beginning of year

10909.66 10885.28 22153.41 20947.11 9210.41 8161.76 — — — —

AdditionalInterestinplan asset credited at beginning of period

— — — — — — — — — —

Expectedreturnonplanassets

1003.68 1039.54 2038.11 2000.45 847.36 779.45 — — — —

Contributions 292.72 137.85 2784.63 1858.54 1264.15 1103.57 — — — —Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) — — — —ActuarialGain/(Loss)onPlan assets

(19.70) (79.92) (43.85) (65.42) 65.12 10.03 — — — —


10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 — — — —


223



(Funded)



(Unfunded)2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

d) Fair value of plan assets as on 31st March, 2015Fair value of plan assets at beginning of year

10909.66 10885.28 22153.41 20947.11 9210.41 8161.76 — — — —

AdditionalInterestinplan asset credited at beginning of period

— — — — — — — — — —

Actual return on plan assets

983.98 959.62 1994.26 1935.03 912.48 789.48 — — — —

Contributions 292.72 137.85 2784.63 1858.54 1264.15 1103.57 — — — —Benefitspaid (1298.55) (1073.09) (12966.14) (2587.27) (936.10) (844.40) — — — —Fair value of plan assets at the end of year

10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 — — — —

Funded status (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)ExcessofActualoverestimatedreturnonplan

(19.70) (79.92) (43.85) (65.42) 65.12 10.03 — — — —

e) Actuarial Gain/Loss recognized for the year ended 31st March, 2015Actuarialgain/(Loss)fortheyear–Obligation

222.26 452.37 1602.34 (779.83) (1109.79) (1070.98) 507.25 323.56 (0.71) 19.87

Actuarial(gain)/Lossfortheyear–planassets

19.70 79.92 43.85 65.42 (65.12) (10.03) — — — —

Total(gain)/Lossfortheyear

(202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

Actuarial(gain)/Lossrecognized in the year

(202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

f) The amounts recognized in the balance sheet Present value of obligationsasattheendof year

11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

Fair value of plan assets as at the end of the year

10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 — — — —

Funded status (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)Net(Asset)/liabilityrecognized in balance sheet

410.94 69.47 1827.45 2784.85 1311.56 1264.26 1721.53 2011.88 138.65 136.93

g) Expenses Recognized in statement of Profit & LossCurrent Service Cost 907.21 886.28 3853.07 2114.40 223.79 195.21 161.22 204.19 7.09 6.87Past Service Cost — — — — — — — — — —Interest cost 933.22 860.62 2119.75 1824.54 890.35 787.55 171.01 167.35 11.64 12.25Expectedreturnonplanassets

(1003.68) (1039.54) (2038.11) (2000.45) (847.36) (779.45) — — — —

CurtailmentCost/(Credit)

— — (548.99) — — — — — — —

NetActuarial(gain)/Lossrecognized in the year

(202.56) (372.45) (1558.49) 845.25 1044.67 1060.95 (507.25) (323.56) 0.71 (19.87)

ExpensesrecognizedinstatementofProfit&Loss

634.19 334.91 1827.23 2783.74 1311.45 1264.27 (175.02) 47.99 19.44 (0.75)


224



(Funded)



(Unfunded)2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14

h) Amount for the current periodPresent Value of Obligation

11298.75 10979.13 15793.61 24938.26 11762.50 10474.67 1721.53 2011.88 138.65 136.93

Plan Assets 10887.81 10909.66 13966.16 22153.41 10450.94 9210.41 — — — —Surplus(Deficit) (410.94) (69.47) (1827.45) (2784.85) (1311.56) (1264.26) (1721.53) (2011.88) (138.65) (136.93)i) Major Categories of Plan Assets (as percentage of total plan assets)Fund managed by Insurer 100% 100% 100% 100% 100% 100% — — — —

j) TheeffectofanincreaseofonepercentagepointandtheeffectofadecreaseofonepercentagepointintheassumedmedicalcosttrendratesonthefollowinginrespectofPostRetirementMedicalBenefitsScheme:

(`InLakhs)

At 7.5% rateof escalation



CurrentServiceCost(fortheperiod01.04.2014to31.03.2015) 223.79 180.97 282.20

InterestCost(fortheperiod01.04.2014to31.03.2015) 890.35 806.77 985.91

ValueofProjectedBenefitObligationon31.03.2015 11762.50 10676.40 13090.94

k) Theamountpertainingtodefinedbenefitplansforcurrentannualperiodandpreviousfourannualperiodsareasfollows:

(`InLakhs)

Particulars As on 31st March, 2015

As on 31st March, 2014




1) Gratuity (funded)Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

11298.7510887.81(410.94)624.40(19.70)

10979.1310909.66(69.47)

—(79.92)

10757.6910885.28

127.59——

10779.6410996.34

216.70——

10680.6310597.84(82.79)

——

2) Leave encashment (funded)Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

15793.6113966.16(1827.45)

530.93(43.85)

24938.2622153.41(2784.85)

—(65.42)

22806.7620947.11(1859.65)

——

21397.8419394.11(2003.73)

——

19328.0016439.24(2888.76)

——

3) Post retired medical benefits (funded)Presentvalueofobligation Plan assetsSurplus/(deficit)ExperienceadjustmentsplanliabilitiesExperienceadjustmentsplanassets

11762.5010450.94(1311.56)(446.50)

65.12

10474.679210.41

(1264.26)(540.88)

10.03

9265.338161.76

(1103.57)(983.88)

17.52

8156.457581.94(574.51)(483.24)

—

7528.506421.20

(1107.30)116.40

—

4) Long service awards (unfunded) PresentvalueofobligationExperienceadjustmentsplanliabilities

1721.53375.41

2011.88206.07

2091.87146.51

1992.76(164.29)

1606.26134.69

5) Other benefits on retirement (unfunded)PresentvalueofobligationExperienceadjustmentsplanliabilities

138.653.76

136.9316.02

153.1519.86

171.65(5.41)

160.29(3.98)


225

l) Thebestestimateofcontributionduringthenextfinancialyearisasfollows:

Gratuity (Funded) Leave Encashment (Funded) Post Retirement Medical Benefits (Funded)



(Unfunded)


Lakhs)


Lakhs)


Lakhs)



2.24 ThedefinedbenefitplaninrespectofCertificationEngineersInternationalLimitedareasunder:

(i) Gratuity(Funded)

(ii) LeaveEncashment(Unfunded)

(iii) LongServiceAward(Unfunded)

Theliabilitiesontheseaccountsareprovidedforasperactuarialvaluation.TherequisitedisclosuresasperAccountingStandard(AS-15)-(EmployeeBenefits)aredisclosedinthenotestotheaccountsofSubsidiaryCompany.

2.25(a) AmountpayableinForeignCurrency(Unhedged)onaccountofthefollowing:

Amount in Lakhs

Liabilities & Provisions

As on 31st March, 2015 As on 31st March, 2014

` Foreign Currency ` Foreign Currency

433.08 AED24.72 348.38 AED20.72

9242.31 USD146.56 8720.80 USD144.17

9.84 KWD0.05 2.24 KWD0.01

490.71 EURO7.17 701.08 EURO8.40

402.84 GBP4.31 444.83 GBP4.41

113.69 SWK15.47 15.17 SWK1.62

157.72 JPY299.68 1322.25 JPY2239.97

0.08 OR0.00 0.08 OR0.00

2.20 BD0.01 5.05 BD0.03

0.00 AD0.00 21.99 AD27.14

(b) AmountreceivableinForeignCurrency(Unhedged)onaccountofthefollowing:

Amount in Lakhs

Assets, Loans & Advances

As on 31st March, 2015 As on 31st March, 2014

` Foreign Currency ` Foreign Currency

1375.71 AED82.82 1127.23 AED71.16

6700.57 USD107.69 564.69 USD9.51

126.98 KWD0.63 20.50 KWD0.10

739.58 EURO11.06 709.49 EURO8.73

3.09 BOLIVAR0.59 3.21 BOLIVAR0.32

7.16 GBP0.08 7.68 GBP0.08

0.28 LD0.01 0.28 LD0.01

82.10 AD122.54 150.08 AD185.28

14.02 YUAN1.40 17.14 YUAN1.66

0.28 TAKA0.34 49.82 TAKA62.28

(c) ForeignCurrencyHedgedContractsoutstandingason31stMarch,2015–Nil


226

2.26 TheWorkingCapitalfacilitiesfromBanksaresecuredbyhypothecationofstocks,bookdebtsandothercurrentassetsoftheCompany,both present and future.

IncaseofTEILProjectsLimited,hypothecationofcompany’sallcurrentassetsandmovablefixedassets(bothpresentandfuture)hadbeenmadeinfavourofYesBankLimited(YBL)towardsextendingFund/Non-Fundbasedoverallcreditfacilitiesof`50.00Lakhsduringtheyear.

2.27 AsperAccountingStandard(AS-22)“AccountingforTaxesonIncome”,themajorcomponentsofdeferredtaxassetsandliabilitiesarisingonaccountoftimingdifferencesare:

(ìnLakhs)Sl. No

Particulars of Deferred Tax Assets/ (Liability) Upto 31st March, 2014

For the yearEnded

31st March, 2015


A. Deferred Tax Asset 1. ProvisionForleaveEncashment 8579.28 (2994.29) 5584.992 ProvisionforContractualObligations 8597.45 1009.61 9607.063. ProvisionforEstimatedLosses — 2613.31 2613.314. ProvisionforDoubtfulDebts 1500.98 282.40 1783.385. ProvisionforPostRetirementMedical 3560.34 510.43 4070.776. Provision for Leave encashment and Provident fund for pay revision

allowableoncashbasisu/s43B0.40 — 0.40

7. ProvisionforOtherBenefitsonretirement 46.55 1.44 47.998. ProvisionforLongServiceAwards 688.08 (87.31) 600.779. VoluntaryRetirementScheme 2.77 (2.77) —10. CarryforwardofunabsorbedlongtermCapitalLossonInvestment

in Fixed Maturity Plans of Mutual Funds474.43 (474.43) —

11. ProvisionforLossinJointVentures 143.02 28.22 171.24Total Deferred Tax Asset 23593.30 886.61 24479.91

B. Deferred Tax Liability:1. Depreciation 391.58 776.49* 1168.07

Total Deferred Tax Liability 391.58 776.49 1168.07C. Net Deferred Tax Asset / (Liability) 23201.72 110.12 23311.84

*Includesanamountof`19.03LakhsadjustedfromGeneralReserveforfixedassetshavingNILremaining lifeason1-04-2014in linewithprovisionsofScheduleIIofCompaniesAct,2013.

2.28 Prior period items net debit of `818.15Lakhs (Previousyear:netdebit`290.88Lakhs) shownunderpriorperiodadjustmentsareasdetailedbelow:-

Prior Period Income

(ìnLakhs)Particulars Year ended


31st March, 2014I Consultancy&EngineeringProjects (697.06) (98.99)II Turnkey Projects — (146.43)III Miscellaneous Income — 0.14

(A) (697.06) (245.28)


(ìnLakhs)Particulars Year ended


31st March, 2014I Employeebenefitexpense — 13.81II Facilities 91.05 5.25III Depreciation 30.04 26.54

(B) 121.09 45.60TOTAL(A-B) (818.15) (290.88)


227

2.29 CSRActivityReserveamountingto`2843.63Lakhs(Previousyear:`2874.74Lakhs)underheadReserves&Surplus(Note2.2)representsunspentamount,outofamountssetasideofprofitearnedinthepastyearsformeetingsocialobligationsasperDepartmentofPublicEnterpriseguidelinesforCorporateSocialResponsibilityandprovisionsofCompaniesAct,2013andrulesmadethereunder.

2.30 In linewithAccountingStandard(AS-17)“SegmentReporting”,theCompanyhas(segmented) identifieditsbusinessactivity intotwobusiness segment i.e. Consultancy& Engineering Projects and Turnkey Projects, taking into account the organizational structure andinternalreportingsystemaswellasdifferentriskandrewardsofthesesegments.Segmentresultsaregivenbelow:-

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED (`inLakhs)



Segment RevenueConsultancy&EngineeringprojectsTurnkey Projects

97621.4576503.11

113195.1271452.03

Total 174124.56 184647.15

Segment Profit Consultancy&EngineeringProjectsTurnkey Projects

23825.045602.19

49869.314032.98

Total (a) 29427.23 53902.29

Prior period adjustmentInterestOtherun-allocableexpenditure

818.1528.63

8195.27

290.886.80

6394.19

Total (b) 9042.05 6691.87

Other Income (c)Profit Before Tax (a-b+c)Capital Employed (*)

27311.6947696.87

263166.67

23200.4570410.87

252173.76

(*)FixedAssetsusedintheCompany’sbusinessorliabilitiescontractedhavenotbeenidentifiedtoanyofthereportablesegments,asthefixedassetsandsupportservicesareusedinterchangeablybetweensegments.Accordingly,nodisclosurerelatingtototalsegmentassetsandliabilitieshasbeenmade.

2.31 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD (AS-18) “RELATED PARTY DISCLOSURES”:-

(A) RELATED PARTIES:

S. No.

NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

1. PETROLEUMINDIAINTERNATIONAL ASSOCIATIONOFPERSON

2. TEILPROJECTSLTD. JOINTVENTURECOMPANY

3. JABALEILIOTCO.LTD. JOINTVENTURECOMPANY

4. RAMAGUNDAMFERTILIZERSANDCHEMICALSLIMITED JOINTVENTURECOMPANY





7. DIRECTORS/ KEY MANAGEMENT PERSONNEL

Mr.A.K.PURWAHA CHAIRMAN&MANAGINGDIRECTOR

Dr.ARCHANAS.MATHUR DIRECTOR(GOVT.NOMINEE)

Mr.RAMSINGH DIRECTOR(FINANCE)

Mr.D.MOUDGIL DIRECTOR(PROJECTS)-upto31stAugust,2014

Mr.SANJAYGUPTA DIRECTOR(COMMERCIAL)

Ms.VEENASWARUP DIRECTOR(HR)

Mr.AJAYN.DESHPANDE DIRECTOR(TECHNICAL)


228

S. No.

NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

Mr.ASHWANISONI DIRECTOR(PROJECTS)–w.e.f.1stSeptember,2014

Mr.ADITJAIN NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014

Mr.BIJOYCHATTERJEE NON-OFFICIALINDEPENDENTDIRECTOR

Dr.J.P.GUPTA NON-OFFICIALINDEPENDENTDIRECTOR

Dr.R.K.SHEVGAONKAR NON-OFFICIALINDEPENDENTDIRECTOR

Mr.D.R.MEENA NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014

Dr.V.VIZIASARADHI NON-OFFICIALINDEPENDENTDIRECTOR–upto27thAugust,2014

Mr.SUDERSHANGUPTA DIRECTOR(CEIL)

Mr.S.D.KHERDEKAR CEO,CEIL

Dr. SAMAD BIN SOLBAI DIRECTOREILAP

Mr.TANHORSENG DIRECTOREILAP

Mr. S.K.TIKKU DIRECTOR,TEILPROJECTSLTD.,JOINTVENTURECOMPANY(EIL’SNOMINEE)–upto30thOctober,2014

Mr.S.K.JAIN DIRECTOR,TEILPROJECTSLTD.,JOINTVENTURECOMPANY(EIL’SNOMINEE)–w.e.f.31stOctober,2014

Mr.RAJANKAPUR COMPANYSECRETARY

(B) RELATED PARTY TRANSACTIONS:

(`inLakhs)

PARTICULARS JOINT VENTURE COMPANIES

ASSOCIATION OF PERSON

KEYMANAGEMENT

PERSONNEL


TOTAL

Deputationofemployees&Reimbursementofexpenses(atcost)



Dividend/Shareofprofit 59.43(Previousyear:56.47)


Renderingofservices&othertransactions



Outstandingreceivables/Advancespaid 121.76(Previousyear:80.77)

Nil(PreviousYear

:32.51)

121.76(Previousyear:

113.28)Services&facilitiesReceived 81.50


0.20(Previousyear:

Nil)

81.70(Previous

year:133.03)Outstanding Payable 8.34

(Previousyear:3.90)

7.84(PreviousYear:

48.82)

16.18(PreviousYear:

52.72)Remuneration/Sittingfees* 463.50


463.50(Previous

year:392.90)Rentpaidforresidentialaccommodation 8.75



Interest Income on loans given 0.55(Previousyear:0.28)



229

PARTICULARS JOINT VENTURE COMPANIES

ASSOCIATION OF PERSON

KEYMANAGEMENT

PERSONNEL


TOTAL

OutstandingLoans,Interest&otherreceivables



EquityContribution 244.00(PreviousYear:

Nil)


Nil)

Repatriationofpartcapital 495.35(PreviousYear:

Nil)


Nil)

Provisionfordiminutionininvestment/losses in Ventures

111.03(Previous

Year:111.01)

111.03(Previous

Year:111.01)

Survey&otherexpensesandCapitalExpenditure


495.31)


495.31)

*Theremunerationdoesnotincludeprovisionforpostretirement/otherlongtermbenefitsunderAccountingStandard-15(Revised),sincethesame is not available for individual employees.

2.32 EARNING PER SHARE (E. P. S.)


Calculation of E.P.S. Year ended 31st March, 2015 Year ended 31st March, 2014

A NetProfitfortheyearattributabletoEquityShareholders(`inLakhs)

31270.74 48273.08

B WeightedaveragenumberofEquityshares 336936600 336936600

C Basic&DilutedEarningpershare(A)/(B) `9.28 `14.33

D Nominal value per share `5 `5

2.33 LEASES

a) TheCompanyhastakencertainoffice/residentialpremisesonoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.Duringtheyearanamountof`1021.80Lakhs(Previousyear`1003.05Lakhs)hasbeenchargedtowardsthesecancellableoperatingleases.

b) TheCompanyhastakencertainassetslikecar,commercial/residentialpremisesetc.onnon-cancellableoperatingleases.Duringtheyear an amount of `643.73Lakhshasbeenpaid(Previousyear`362.97Lakhs)towardsthesenon-cancellableoperatingleases.Thefutureminimumleasepaymentsinrespectoftheseleasesareasfollows:

i) Payablenotlaterthan1year`547.96Lakhs(Previousyear:`393.94Lakhs)

ii) Payablelaterthan1yearandnotlaterthan5years`214.74Lakhs(Previousyear:`343.92Lakhs)

iii) Payablelaterthan5yearsNil(Previousyear:Nil).

c) TheCompanyhasgivencertainoffice/residentialpremisesonoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.Duringtheyearanamountof`243.17Lakhs(Previousyear:`231.59Lakhs)hasbeenaccountedforasrentalincomeinrespectofthesecancellableoperatingleases.

2.34 IncaseofTEILProjectsLimited,Jointventurecompany,hasaccumulatedlossesof`1093.30Lakhsanditsnetworthhasbeenfullyeroded,howeverthecompanybasedonbusinessplanandbudgetfornextfinancialyearisconfidentofcarryingbusinessofthecompanyasagoing concern.

2.35(i) Inoneoftheturnkeyprojectexecutedbythecompanyinpreviousyears,theclienthadleviedthepricediscountandaccordinglyreducedcontractpricewasrecognizedasrevenueintermsofaccountingprinciples.Duringtheyear,thesettlementinrespectofthesamehasbeencompletedwithclientandaccordinglysegmentrevenueandprofitsforturnkeyprojectsincludesanamountof`7621.56lakhstowardsrefundofpricediscountleviedbytheclient.

(ii) InoneofongoingturnkeyprojecttheCompanyhadinpreviousyearsreducedthecontractpriceonaccountofliquidateddamagesfordelays inthecompletionof thecontractasperprovisionofAS7“ConstructionContracts”.Duringtheyear, theprojectwas


230

mechanicallycompletedandintermsofcontractualprovisions,Managementhasestimatedthatnoliquidateddamagesshallbeincurredandassuchadjustmentinthecontractpricehasbeenmade,resultingintoincreaseinrevenueandprofitfromturnkeysegment by `4914.47Lakhsand`4865.32Lakhsrespectively.

2.36 IntermsofAccountingStandard(AS29)“Provisions,ContingentLiabilitiesandContingentAssets”,therequisitedisclosuresareasunder:

i) Themovementinprovisionsaredisclosedasunder:

S.No.

Particulars Class of Provision

Contractual Obligations Expected losses

Year ended 31st March,2015


Year ended 31st March,2015


1 Opening Balance 25440.86 30609.45 — —

2 AdditionalProvisionduringtheyear 3782.89 5223.14 7551.16 —

3 Provision used during the year — — — —

4 Provision reversed during the year 1317.30 10391.73 — —

5 ClosingBalance(1+2-3-4) 27906.45 25440.86 7551.16 —

ii) Natureofprovision:

a) Contractual Obligations :

Contractualobligationsrepresentprovisionforestimatedliabilitiesonaccountofguaranteesandwarrantiesetc.inrespectofconsultancy&engineeringservicesandturnkeycontractsexecutedbytheCompany.Thesaidobligationcoversperformanceaswellasdefectliabilityperioddefinedintherespectivecontracts.

Forturnkeycontracts,theestimatedliabilityonaccountofcontractualobligationsisprovidedat1%ofrevenuerecognizedbasedonriskassessmentmadebythemanagement.Forconsultancy&engineeringservicescontractstheestimatedliabilityonaccountofcontractualobligationsisprovidedasperassessmentofprobableliabilitymadebythemanagementbasedonliabilityclausesinrespectivecontracts.

b) Expected Losses :

Foreachcontracts,at reportingdate, totalcontractcostand totalcontract revenueareestimated. In respectofcontracts,where itisprobablethattotalestimatedcontractcostwillexceedtheestimatedtotalcontractrevenue,theexpectedlossisrecognisedasanexpenseinthestatementofProfitandLossasperprinciplesofAccountingStandardAS-7,“ConstructionContracts”.

iii) ThedisclosuresinrespectofcontingentliabilitiesaregivenasperNoteNo.2.17.

2.37 Thebalances appearingunderheads Trade receivables, Loans&Advances, retentionmoney, Customer’s advances, Security depositsreceivable/payableandTradepayablesaresubjecttoconfirmationandreconciliation.

2.38 ForLumpsumServicesandTurnkeyContracts,balanceefforts,costandtimetocompletethecontractincludingprobabilityoflevyforliquidateddamagesandpricereductionschedulesfordelaysasonreportingdateareassessedbythemanagementandrelieduponbytheauditors.


231

2.39 AdditionalinformationrequiredunderScheduleIIItotheCompaniesAct,2013ofenterprisesconsolidatedasSubsidiary/Associates/Jointventures.

Name of the Enterprise Net Assets i.e. total assets minus total liabilities

Share in Profit or loss

As % of Consolidated net

assets

Amount (` in lakhs) As % of Consolidated profit

or loss

Amount (` in lakhs)

Parent

EngineersIndiaLimited 97.50 256583.57 98.04 30658.37

Subsidiaries

Indian


2.32 6095.26 2.38 743.16

Foreign

EILAsiaPacificSdn.Bhd. 0.01 40.71 (0.02) (5.60)

Joint Ventures(as per proportionate consolidation/Investment as per the equity method)

Indian

TEILProjectsLimited 0.01 10.06 (0.27) (85.06)

*RamagundamFertilizersandChemicalsLimited

0.09 244.00 — —

Foreign

JabalEiliotCompanyLtd. 0.07 193.07 (0.13) (40.13)

*RamagundamFertilizersandChemicalsLimitedisyettocommencebusinessoperations.

2.40 Other notes forming part of the Accounts

These are set out in the notes to the account under the respective Financial Statements of ‘the Company’, Certification EngineersInternationalLimited,EILAsiaPacificSdn.Bhd.(SubsidiaryCompanies).

2.41 Previousyear’sfigureshavebeenre-castedand/orregroupedwherevernecessarytoensuretheirpresentationinlinewiththecurrentyear’sfigures.


232

Part “A” : Subsidiaries

1 Sl.No. 1

2 Name of Subsidiary EIL Asia Pacific Sdn. Bhd.(IncorporatedinMalaysia)

3 Reportingperiodforthesubsidiaryconcerned,ifdifferentfromtheholdingcompany’sreportingperiod

31stDecember,2014

4 ReportingcurrencyandExchangerateasonthelastdateoftherelevant Financial year in the case of foreign subsidiaries

ReportingCurrency:-MalaysianRingitt(RM)ExchangeRate:-`18.55

5 Share capital 2.50LakhsequitysharesofRM1each

6 Reserves&Surplus RM(0.31)Lakhs

7 Total assets RM2.26Lakhs

8 Total Liabilites RM0.06Lakhs

9 Investments -

10 Turnover -

11 Profitbeforetaxation RM(0.12)Lakhs

12 Provisionfortaxation RM(0.02)Lakhs

13 Profitaftertaxation RM(0.14)Lakhs

14 Proposed Dividend -

15 %ofshareholding 100%

1 Sl.No. 2

2 Name of Subsidiary Certification Engineers International Limited

3 Reportingperiodforthesubsidiaryconcerned,ifdifferentfromtheholdingcompany’sreportingperiod

31stMarch,2015

4 ReportingcurrencyandExchangerateasonthelastdateoftherelevant Financial year in the case of foreign subsidiaries

INR-`

5 Share capital 1Lakhequitysharesof`100each

6 Reserves&Surplus `5859.84Lakhs

7 Total assets `7160.35Lakhs

8 Total Liabilites `1200.51Lakhs

9 Investments `53.19Lakhs

10 Turnover `3440.43Lakhs

11 Profitbeforetaxation `1338.71Lakhs

12 Provisionfortaxation `462.81Lakhs

13 Profitaftertaxation `875.90Lakhs

14 Proposed Dividend `250.00Lakhs

15 %ofshareholding 100%

Name of Subsidiaries which are yet to commence operations:- Nil

Name of Subsidiaries which have been liquidated or sold during the year:- Nil

Salient features of Financial Statments of Subsidiary/Associates/ Joint Venture as per Companies Act, 2013

Annexure A


233

Part “B” : Associates and Joint VenturesStatementpursuanttoSection129(3)oftheCompaniesAct,2013relatedtoAssociateCompaniesandJointVentures

Name of Associates/Joint Ventures Jabal Eiliot Company Ltd. TEIL Projects Limited Ramagundam Fertilizers and Chemicals Limited

1 Latest audited Balance Sheet Date 31stDecember,2014 31stMarch,2015 N.A

2 SharesofAssociate/JointVenturesheldbythe company on the year end

No. 500,000sharesofSR10each fully paid up

49,99,997Equityshares of `10eachfully

paid up

2440004Equityshares of `10eachfullypaidup

AmountofInvestmentinAssociates/JointVenture

`599.00Lakhs `500.00Lakhs `244.00Lakhs

ExtendofHolding% 33.333% 50% 49.90%

3 Descriptionofhowthereissignificantinfluence

Dueto(%)ofsharecapital



4 Reasonwhytheassociate/jointventureisnot consolidated

N.A N.A N.A

5 Networthattributabletoshareholdingasper latest audited Balance Sheet

SR33.68Lakhs `(46.65)Lakhs N.A

6 Profit/(Loss)fortheyear

i. ConsideredinConsolidation SR(3.80)Lakhs `(64.36)Lakhs N.A

ii. NotConsideredinConsolidation SR(7.60)Lakhs `(64.36)Lakhs N.A

Name of Joint Ventures which are yet to commence operations:- RamagundamFertilizersandChemicalsLimited

Name of Subsidiaries which have been liquidated or sold during the year:- Nil



PAN:AAGPG5991E



DIN:00165092






234

Comments of the Comptroller and Auditor General of India under section 143(6)(b) read with section 129(4) of the Companies Act, 2013 on the Consolidated Financial Statements of Engineers India Limited for the year ended 31st March, 2015

Thepreparationof consolidatedfinancial statementsof Engineers India Limited for theyearended31March2015 inaccordancewith thefinancialreportingframeworkprescribedunderthecompaniesAct,2013istheresponsibilityofthemanagementofthecompany.ThestatutoryauditorappointedbythecomptrollerandAuditorGeneralofIndiaundersection139(5)readwithsection129(4)oftheActisresponsibleforexpressingopiniononthefinancialstatementsundersection143readwithsection129(4)oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated27May2015.

I,on thebehalfof thecomptrollerandAuditorGeneralof India,haveconducteda supplementaryauditunder section143(6)(a) readwithsection129(4)oftheActoftheconsolidatedfinancialstatementsofEngineersIndiaLimitedfortheyearended31March2015.WeconductedasupplementaryauditofthefinancialstatementsofEngineersIndiaLimited,CertificationEngineersInternationalLimited,butdidnotconductsupplementaryauditofthefinancialstatementsofcompaniesmentionedinannexure-Afortheyearendedonthatdate.Thissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworking-papersofthestatutoryauditorsandislimitedprimarilytoinquiriesofthestatutoryauditorsandCompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.

Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors,report.

For and on the behalf of theComptroller&AuditorGeneralofIndia

Place:NewDelhiDate:01/07/2015



Annexure-ADetail of companies in which supplementary audit is not conducted

S. No. Name of Company Type of Company

1 EILAsiaPacificSdn.Bhd.Malaysia Subsidiary

2 TEILProjectsLimited JointVenture

3 JabalEillotCo.Ltd. JointVenture

4 RamagundamFertilizersandChemicalsLimited JointVenture

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NameoftheMember/Proxy : (InBlockLetters)

AddressoftheMember/Proxy :

Folio No. :

DPId* :

ClientId* :

No. of Shares held :

IcertifythatIamamember/proxyforthememberoftheCompany.

I hereby record my presence at the 50th Annual General MeetingoftheCompanyheldonTuesday,the25thdayofAugust,2015at 10:30a.m.atManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi110010.

..................................................Member’s / Proxy’s Signature

1.PleasefillandsignthisattendanceslipandhanditoverattheAttendanceVerificationCounteratthevenueoftheMeeting.2.NO GIFTS SHALL BE DISTRIBUTED IN THE ANNUAL GENERAL MEETING OR AFTERWARDS.

*Applicableforsharesheldinelectronicform.

ATTENDANCE SLIP

AffixRevenue

Stamp



PROXY FORM[Pursuanttosection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

NameoftheMember(s):

Registered Address:

E-mailID:

FolioNo./*DP&ClientId:

I/We,beingthemember(s)of….…………………………...............................……sharesoftheabovenamedCompany,herebyappoint:

(1) Name:……………….……………………………………..................…Address:.............................................................................................

E-mailId:…………………………………………………………………...Signature:……..............…………………...…………….…….,orfailinghim/her;

(2)Name:……………….……………………………………..................…Address:.............................................................................................

E-mailId:…………………………………………………………………...Signature:……..............…………………...…………….…….,orfailinghim/her;

(3)Name:……………….……………………………………..................…Address:.............................................................................................

E-mailId:…………………………………………………………………...Signature:……..............…………………...…………….……..............................

asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe50thAnnualGeneralMeetingoftheCompany,tobeheldonTuesday,25thAugust,2015at10:30a.m.atManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi-110010andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

S. No. Resolutions **For **AgainstORDINARY BUSINESS

1. Toreceive,considerandadopttheAuditedFinancialStatements(includingauditedconsolidatedfinancialstaements)fortheyearended31stMarch,2015andtheReportsofDirectorsandAuditorsthereon.

2. Toconsiderdeclarationoffinaldividendonequityshares.3. ToappointadirectorinplaceofMs.VeenaSwarup(DIN:06388817),whoretiresbyrotationandbeing

eligible,offersherselfforre-appointment.4. ToappointadirectorinplaceofShriAjayN.Deshpande(DIN:03435179),whoretiresbyrotationand

beingeligible,offershimselfforre-appointment.5. TofixremunerationofAuditorsforthefinancialyear2015-16.

SPECIAL BUSINESS6. ToappointShriAshwaniSoni(DIN:06962014)asDirector(Projects)oftheCompany.7. ToconsiderandapproveresolutionwithrespecttoMaterialRelatedPartyTransaction.8. ToappointShriSanjayGupta(DIN:05281731)asChairman&ManagingDirectoroftheCompany.

Signedthis…………………….dayof…………………………..2015. SignatureoftheShareholder _______________________ __________________________ ________________________ Signatureoffirstproxyholder SignatureofSecondproxyholder Signatureofthirdproxyholder

*Applicableforinvestorsholdingsharesinelectronicform.Notes: (1) ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompanynotless

than48hoursbeforethecommencementoftheMeeting.(2) AProxyneednotbeamemberoftheCompany.(3) ForResolutions,StatementpursuanttoSection102oftheCompaniesAct,2013andNotes,pleaserefertotheNoticeof50th Annual

GeneralMeeting.(4) Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethan10%ofthetotalshare

capitaloftheCompanycarryingvotingrights.Amemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.

(5)**Thisisonlyoptional.Pleaseputa‘X’intheappropriatecolumnagainsttheresolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyoralltheresolutions,yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.

(6) Appointingaproxydoesnotpreventamemberfromattendingthemeetinginpersonifhesowishes.(7) Inthecaseofjointholders,thesignatureofanyoneholderwillbesufficient,butnamesofallthejointholdersshouldbestated.

237

Address of Venue:ManekshawCentre,ParadeRoad,DelhiCantt.,NewDelhi–110010

Nearest Landmark: DhaulaKuanMetroStation

Route Map- Venue of 50th AGM

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A Navratna Company

Delivering Excellence through People


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Registered & Head OfficeEngineersIndiaBhawan,1,BhikajiCamaPlace,NewDelhi–110066CIN:L74899DL1965GOI004352Tel:011-26762121;Fax:011-26178210,26194715Email:[email protected],Website:www.engineersindia.com

Branch OfficeGreatEasternChambers,5thFloor,PlotNo.28,Sector–11BelapurC.B.D.,NaviMumbai–400614Tel:022–27560072,27560032,Fax:022–27572011,27563066Email:[email protected]

Regional OfficesA.G.Towers(5thFloor),125/1,ParkStreet,Kolkata–700017Tel:033-22298995,22276304;Fax:033-22277692Email:[email protected]

4thand5thFloor,MeghdhanushComplex,RaceCourseRoadNearTranspekCircle,Vadodara–390015Tel:0265-2340326,2340368–69,Fax:0265–2340328Email:[email protected]

PlotNo.F9,SIPCOTITPark,1stMainRoad,Siruseri,Chennai–603103Tel:044–27469401/402;Fax:044–27469000Email:[email protected]

Overseas Offices17thfloor,BusinessAvenueTower,SalamStreet,P.O.Box:126592,AbuDhabi-UAETel.:+971-2-6740101,Fax:+971-2-6740707Email:[email protected]

487,GreatWestRoad,Hounslow,Middlesex,London,UK–(TW50BS)Phone:0044–208–570–5530(O),Handphone:0044–7404608246Email:[email protected]

Mylands.as.diIIIRES.r.I.,Apartment-112,PiazzaLuigidiSavoia28,Milan-20124,ItalyMobile1:00-39-338-467-8867,Mobile2:00-39-389-532-3116Email:[email protected]

RoomNo.1632,16thFloor,AsianBizCentre,OrientCenturyPlaza,345XianXiaRoad,NearGubeiRoad,Shanghai–200336,China.Phone:0086–2122157403,2122157405Email:[email protected]

EIL OFFICES