th19 September, 2017Engineers India Limited, EIL Office Complex

Sector-16 (NH-8), Gurugram, Haryana

Statement to Shareholders at the

nd52 AnnualGeneral Meetingby

Shri Sanjay GuptaChairman & Managing Director

Engineers India Limited

"Your company was able to secure orders

worth `5708 Crores during this fiscal. For the first time

since inception the order booking in both the consultancy

and EPC/OBE segments touched their historical

high in a single financial year".

ndStatement to Shareholders at the 52 Annual General Meetingby

Shri Sanjay GuptaChairman & Managing Director

T

Dear Shareholders,

On behalf of the Board of Directors of Engineers India Limited, I extend a very warm welcome to all of you at this 52nd Annual General Meeting of your company. It is my privilege and pleasure to talk about your Company’s performance and the achievements during the previous financial year 2016-17. Your company is engaged in the preeminent role of driving the growth of the hydrocarbons sector in India, and is a key contributor to the nation’s hydrocarbon growth story and in realising the Hon’ble Prime Minister’s cherished vision of reducing import dependency and enhancing energy security.

Today, we can proudly proclaim that there is hardly a page in

the Nation’s growth story in hydrocarbon and metallurgy

sector that is untouched by your company’s engineering

efforts. From fuels to plastics, metallurgy to infrastructure,

nuclear to defence, your company’s contribution is

ubiquitous to our country’s growth story. Coming to the

domestic economic scenario, India remains a ray of hope

amidst a global economic environment characterised by slow

growth, subdued demand and volatility. Various international

agencies have time and again vouched for the nation’s GDP

growth as being one of the most attractive and fastest

growing in the world. Your company is committed to play a

pivotal role in India’s growth and in shaping its socio-

economic and energy landscape.

Before I proceed wi th shar ing your company’s

accomplishments during the fiscal, with your kind

permission, I take the Annual Report containing the Audited

Accounts, the Directors' Report and the Auditors' Report,

which have already been circulated to you, as read.

And as we are all aware, the country continues to remain a

bright spot in terms of its economic growth prospects which

is expected to continue in the medium to long-term. The

International Monetary Fund (IMF) has forecast the Indian

economy to grow at 7.2% in FY 2017-18, up from 6.8% in FY

2016-17.

The Indian economic activity is expected to expand after a

brief slowdown due to various domestic and international

factors and is expected to rise to about 8% over the medium

term due to implementation of key reforms, reduction in

supply-side bottlenecks, and appropriate fiscal and monetary

policies. A major structural tax reform in the form of the

recently approved nationwide Goods and Services Tax (GST)

is bound to spur GDP growth by an incremental 1-2 % going

forward. As a result of this growth momentum, your

company envisages good business opportunities in its core

hydrocarbons sector as well as in the diversified areas of

operations where it can leverage its core competencies to

gain competitive advantage and create value for its clients.

Economic Environment and Outlook

The global economic activity was a mixed bag during

FY 2016-17 with lackluster first half and gradual

improvement of economic activities in the second half of the

financial year. This has resulted in positive and encouraging

economic growth forecast for financial year 2017-18. These

improved prospects for global economy are also indicated by

the World Economic Outlook as well. With the economic

activity picking up and a long-awaited cyclical recovery in

investment, manufacturing, and trade, on the horizon, world

growth is expected to rise from 3.1% in 2016 to 3.5% in 2017

and 3.6% in 2018. It is expected that buoyant activity will

provide a stimulus to emerging and developing economies

that have lagged behind due to tight financial conditions to

grow at a decent pace.

The Indian economy has grown at a strong pace in recent

years owing to the implementation of critical reforms,

favourable terms of trade and lower external vulnerabilities.

7.8 MMPTA and EPCIM Service for LPG Impot facility at Haldia

for BPCL.

Your company has been involved in the establishment of a

large number of mega petrochemical complexes in India.

The company has provided engineering consultancy services

for various processes including Gas based/Naphtha based

cracker complexes and Aromatic plants. During the financial

year, Dahej Petrochemical Complex of ONGC Petro additions

Limited (OPaL), was commissioned and dedicated to the

nation by Hon’ble Prime Minister of India Shri Narendra Modi

on March 7, 2017. Significant progress has been made on

Propylene Derivative Petrochemical Plant of BPCL Kochi

Refinery comprising Acrylic Acid Unit, Oxo-Alcohol Unit and

Acrylates Unit.

Country’s energy security is of prime importance and thereby

critical storage of crude oil and gas resources has to be

created to ensure against disruption of supplies from abroad.

This fact has been amply recognized by the Government of

India which is implementing the Strategic Crude Oil Storage

Programme to augment India’s energy security by creating a

buffer stock. Your company is an active partner in this

strategic programme and is providing PMC services to Indian

Strategic Petroleum Reserves Limited (ISPRL) for

construction of underground unlined rock cavern storages in

Vishakhapatnam, Mangalore and Padur having a total

capacity of 5.33 MMT. During the year, Mangalore storage

has been commissioned while Padur storage has been

mechanically completed. The Mangalore-Padur Pipeline

work and 110 KV HT line works are in progress and shall be

completed this year.

Your company completed key metallurgy assignments

pertaining to Consultancy services for swing unit feasibility

study and rectifier system study of 220 KV switchyard

systems at Smelter-1 of Vedanta Limited and scoping study

for Structural Integrity at Hindalco, Renukoot among others.

In Infrastructure sector, your company is making strong

footholds by providing a wide spectrum of services. Projects

completed in this fiscal include Preparation of Smart City

proposals for Moradabad, Rampur and Rae Bareli,

Consultancy services for preparation of Master Plan and DPR

for development of Vijayawada Airport to International

Standards and Master Plan for Rajkot Airport. In the Water

and Waste Management segment, your company completed

the Condition Assessment and Feasibility Study of Sewerage

Infrastructure in 38 towns under the Namami Gange

Programme and is currently executing entry level activities

including development of Ghats and Crematoriums within

the state of Uttar Pradesh and Implementation of Sewerage

Infrastructure works at Mathura in addition to other jobs.

As part of strategic diversification in the Fertilizer sector,

your company has taken 26% equity stakes in a joint venture

company, in revival of Ramagundam Fertilizers and

I am pleased to inform that your company has taken the lead

and is geared up for its operations in this new tax regime.

Performance Highlights

The financial results have been covered in depth and details

are available on both the print and digital media. Let me share

with you the key highlights of the year:

Ÿ Total Income during the year was ` 1672 crores, of

which revenues from Consultancy & Engineering

Services was ̀ 1165 crores.

Ÿ Profit Before Tax (PBT) for the year was ` 500 crores,

while Profit After Tax for the year was ̀ 325 crores.

Ÿ Revenue from overseas operations stood at ̀ 300 crores.

Ÿ The Board of Directors of the Company has recommended

a final dividend of ̀ 0.50/- per share (of face value of ̀ 5/-

per share) for the financial year 2016-17, in addition to

` 2.50/- per share interim dividend already paid during

the year. With this, the total dividend for the financial

year 2016-17 works out to ` 3.00/- per share. The

payment of final dividend is, however, subject to

approval of the shareholders.

Business Highlights

EIL secured new business worth ` 5,708 crores, during FY

2016-17, of which domestic consultancy business was

` 2,032 crores, the domestic turnkey business was ` 3,412

crores and overseas consultancy business, worth ` 264

crores. I am pleased to state that this is the highest ever

order-booking by your company in single financial year. The

robust Order-book of your company which stands at ` 7762

crores is also a historical high. Your company continues to

make good progress in all its key business segments.

In the upstream segment, your company secured

assignment for providing Consultancy Services for bid

package preparation for the modification jobs at Process

Platform of B&S assets of ONGC, a major order for the

Modification Jobs at ONGC’s B193 Process platform was

also secured amidst stiff competition.

In the downstream segment, the major consulting orders

secured in the Refining sector include EPCM services for BS-VI

projects of IOCL, HMEL, MRPL and BPCL, PMC/EPCM services

for HPCL’s Mumbai Refinery expansion project, PMC services

for Vizag Refinery expansion project of HPCL, EPCM services

for Western Gateway Project of H-Energy Gateway Private

Limited, Licensor selection and BDEP package for IOCL’s

Guwahati Refinery, PMC services for implementation of

Propylene Derivative Petrochemical Project (PDPP) at Kochi

Refinery of BPCL, Energy efficiency and improvement studies

for PSU Refineries and feasibility studies for 2G Ethanol plant

for HPCL & MRPL among various others.

In the transportation of POL, major assignments secured

include PMC services for capacity augmentation of

Jamnagar-Loni Pipeline of GAIL, EPCM services for

enhancement of pumping capacity of Barauni-Bongaigaon

sector of Oil India Limited and PMC services for Vijaypur-

Auraiya Project of GAIL.

In the Infrastructure sector, EIL has secured entry level

activities for Namami Gange projects for towns and cities

situated on the banks of river Ganga in U.P. your company

also bagged a breakthrough assignment of providing PMC

services for construction of new domestic terminal building

and associated works at Leh Airport for AAI.

In the Turnkey domain, your company successfully secured

the job for the execution of Utilities & Off-sites and PRU

revamp of Vizag Refinery Modernization Project of HPCL and

BS-VI Projects of CPCL at Manali Refinery on OBE mode of

implementation.

Leveraging its expertise in the water and waste management

areas, EIL has completed Condition Assessment and

Feasibility Study of Sewerage Infrastructure in 38 towns

under the Namami Gange Programme. Significant progress

was achieved in assignments for entry level activities

including development of Ghats and Crematoriums within

the state of Uttar Pradesh.

Overseas

Your company continues to make strong inroads in the

international markets and secured major orders from

Bangladesh, Algeria and Nigeria. These projects which were

won amidst stiff international competition have further

strengthened your company’s credentials to implement

mega overseas projects.

In Bangladesh, your company secures a major order of

providing Project Management Consultancy Services for

installation of Eastern Refinery Limited (ERL) Unit-2 of

Bangladesh Petroleum Corporation (BPC).

Your company bagged an assignment for verification of

feasibility study for petrochemical complex for Longson

Petrochemical Company for Vietnam Petroleum Institute,

Vietnam.

In the African region, EIL won a major assignment for Study

& PMC Services for rehabilitation of Ethylene Unit at Skikda

Petrochemical Complex for Sonatrach, Algeria.

Your company’s continued focus on the MENA region is

paying rich dividends. In UAE, we secured quite a few

assignments pertaining to Consultancy, Design, FEED

assignments from our regular clients viz. TAKREER, GASCO,

ENOC and others.

Under the long term General Engineering Services

Agreement, BAPCO awarded Safety Study Assignments for

HAZOP and SIL Study for Falcon Cement Metering Station.

Your company secured two assignments in Kuwait - for

Detail Engineering Services for supply and installation of

VSM Pumps for Arabi Enertech; and consultancy services for

PHA Revalidation Closeout for Kuwait Aviation Fuelling

Company.

The Saudi Arabian Fertilizer Company (SAFCO) also engaged

your company for two assignments, that of PHA Revalidation

Studies and PHA Study for Ammonia, Urea, Utility and

Compound Fertilizer Plants.

In addition, number of additional assignments were awarded

to your company by Dangote, Nigeria, Sonatrach, Algeria and

Indorama Eleme Fertilizers & Chemicals Company, Nigeria.

In Kenya, your company bagged two engineering

assignments of Early Oil Pilot Project of Kenya Petroleum

Refineries Limited (KPRL) under stiff global competition.

Operational Highlights

In the Consultancy Segment, your company continued to

strengthen its stronghold and secured several assignments in

offshore oil & gas and LNG sectors. During the FY 2016-17,

your company successfully completed many assignments

including PMC expansion project for Dahej LNG Terminal

Ph-III, BPA-BPD revamp project for ONGC.

In the Petroleum Refining Sector, your company is a leading

engineering consultancy service provider in the country.

During FY 2016-17, it completed NHT/ISOM at BPCL Mumbai

Refinery by converting existing process units (NHDS to NHT

and CRU to ISOM units) to maximize production of BS-IV

MS, Integrated Refinery Expansion Project of BPCL Kochi

Refinery for enhancing the refining capacity to 15.5 MMTPA,

New Coke Chamber for Delayed Coker Unit and allied facility

project at Barauni Refinery of Indian Oil Corporation Limited

(IOCL).

Your company has efficiently leveraged its expertise and

experience in the design, engineering and execution of cross-

country pipelines for transportation of crude oil, refined

petroleum products, natural gas and LPG. It completed the

DFR for augmentation of Barauni - Bongaigaon Section of

Naharkatiya - Barauni Crude Oil Pipeline for Oil India Limited

(OIL) and the Palanpur - Vadodara Pipeline and Marketing

Terminal project for HPCL. Works in progress include PFR of

1864 km long Middle East to India deep water pipeline of

South Asia Gas Enterprise Private Limited.

During the year, the company achieved significant progress on

a number of other key projects such as the Revamp and

Capacity Enhancement Project (Phase-II) at BORL Bina

Refinery to increase the refining capacity from 6.0 MMPTA to

Note: This does not purport to be a record of the proceedings

Chemicals Limited (RFCL) along with NFL and FCIL. EIL is

also executing this project on EPCM Mode and substantial

progress in engineering and ordering has been achieved and

civil works are in full swing.

Over the years, your company has emerged as a global player

with the execution of a number of prestigious assignments in

the hydrocarbon space for international energy majors in

Middle East, Africa and South East Asia. Overseas Projects

completed during the year includes Design of 18’’ and 12”

Crude Oil Pipeline for Kenya Petroleum Refineries Limited,

Kenya.

Further, EIL is providing EPCM services for the prestigious

Dangote Refinery and Petrochemical Project comprising a

460,000 BPSD grassroots Petroleum Refinery and 830 KTPA

Petrochemical Complex at Lekki Free Trade Zone, Nigeria.

Research & Development

Research & Development (R&D) is core to your company’s

success in no small measure and has contributed

significantly to its present status. Its role in strengthening

existing capabilities, development of new technologies and

hardware besides enhancement of the portfolio for special

technology related services is truly commendable. R&D

Division has collaborations with academic institutes like IIT

Delhi, other R&D organizations like IOCL (R&D), CSIR-IIP,

BPCL (R&D) and small companies as well.

During this fiscal, Your Company filed seven new patents and

was granted one patent for novel Process for Regenerative

Sulfur Dioxide Removal from Gases. Furthermore,

applications for registration of 12 Trademarks pertaining to

in-house technologies were made, of which 10 have been

granted in the present Financial Year.

Human Capital

Your company provides best opportunities for its employees

to enable them to reach their full potential. It has an

enabling environment to ensure professional development

and career growth of its people. As a nerve centre

of the organization, the HR function aims at fuelling

the growth ambitions of the organization by equipping the

Human Assets for effective & efficient delivery as well as

providing them a nurturing environment. Endeavors taken

during the year have consolidated the initiatives taken in the

past and built on them further for creating systems towards

sustainable performance.

Your company has a robust Performance Management

System that gives weightage to both performance and

potential. Several other activities related to employee welfare,

encouragement for participation in sports and training are

undertaken from time-to-time. All these activities have

enhanced the quality of life of our employees and has

improved their work-life balance.

Sharper Competitive Edge

State-of-the-art systems and processes are essential for

maintain and enhancing market advantage. Towards this end,

EIL has embraced IT and digital transformation to bring

about automation, efficiency, and transparency throughout

the company.

Information Technology Services (ITS) are at the heart of

EIL’s various business initiatives. The key initiatives

taken up by your company’s ITS Division include launch of

Eng SUI web portal to encourage start-ups, system for

marketing department for post award Job Management and

effort distribution, web based system for progress

monitoring of critical milestones of equipment erection at

project site among many others. The department has also

developed and integrated various project executions related

dashboards to have all the data well-structured and well-

connected at one place with a view to achieve operational

improvement.

Responsible Corporate Citizen

Giving back to the society is everyone’s responsibility, as

such improving the well-being and life of the community, the

downtrodden and women should be at the core of any

corporate welfare activity. Keeping this in mind, EIL’s CSR

policy aims at creating a sustainable environment through its

activities for community and environment.

During this fiscal, your company supported several activities

in different areas of education, healthcare, drinking

water/sanitation, rural electrification, women empowerment,

upliftment of under-privileged, community development and

vocational training of youth.

These range from supporting educational programmes in

Delhi/NCR for construction of Government School Building

in Kabennur, Dharwad, Karnataka; installation of medical

equipment for underprivileged people in slums of Delhi and

providing Mobile Medical Care Units for villages of Odisha;

Construction/ maintenance of sanitation facilities and RO

plants in Assam, Bihar, Odisha, Tamil Nadu, Andhra Pradesh

and Karnataka.

EIL conducted a functional literacy programme for economic

empowerment of 120 tribal women of Bolangir District,

Odisha and also supported skill development training of 1600

candidates belonging to SC/ST/OBC, Women and EWS of

society in Assam, Andhra Pradesh, Haryana, Uttar Pradesh,

Madhya Pradesh and Jharkhand.

Make in India

Your company is fully committed to the “Make in India”

flagship initiative launched by the Hon’ble Prime Minister

with an objective to revive and revitalize the manufacturing

sector in the country. It has been pursuing several initiatives

like import substitution areas, encouraging indigenization,

helping suppliers to upgrade technologies and indigenous

manufacturing.

EIL is piloting the midstream sectors for “Make in India”

initiative under Ministry of Petroleum & Natural Gas

(MoP&NG) and is a member of the Steering Committee set

up for the purpose. To this effect, regular supplier meets are

being organized for interaction with the specific domain

based industries and online vendor empanelment

processes.

Your company has also been organising and participating in

various seminars organised by Ministry of Micro, Small and

Medium Enterprises to encourage the development of MSME

sector including SC/ST Entrepreneurs.

Health, Safety & Environment (HSE)

Health, Safety & Environment (HSE) has always received

utmost priority by EIL in all aspects of its operations. The

company’s OHSAS 18001 (Occupational Health and Safety

Assessment Series) and ISO 14001 (Environmental

Management System) certification has been continued after

a third party verification conducted during this fiscal. These

certifications provide an edge in securing business,

especially in overseas markets.

Sustainability

EIL has refocused its engineering philosophy and business

models to achieve long term sustainable growth. It has also

initiated evaluation and reporting of performance on the triple

bottom lines pertaining to economic, social and

environmental aspects.

The Company’s project designs support sustainability right

from conceptualization to plant commissioning and

subsequently, the commercial operation. Energy efficiency,

resource optimization and safety of plant personnel and

society at large are the cornerstones of our business

operation. They also ensure business continuity. The

sustainability initiatives at EIL shall definitely, propel the

organization on an upward growth trajectory.

Focus on Quality

Quality Management Systems (QMS) are aligned with EIL’s

purpose and strategic direction. QMS at your company

provides the competitive edge in securing and executing the

projects with focus on full customer satisfaction.

They are inbuilt into the processes, workplace, deliverables

and services of EIL. During this year, the company’s Quality

Management System was upgraded and assessed against

ISO 9001:2015. The certification agency declared that the

QMS of the Company conforms to the requirements of ISO

9001:2015 standard. The Quality Management System of

your company ’s UAE (Abu Dhabi) office was also

independently audited and assessed during transition cum

certification audit and was certified to ISO 9001: 2015

standard.

Accolades and Awards

During the year, your company was bestowed with many

awards and accolades which only validates our core

competence, and motivates us to raise the performance

benchmarks in all our endeavors. Your company was

bestowed with Special Commendation of SCOPE Award for

Excellence and Outstanding Contribution to the Public Sector

Management 2014-15 in Institutional Category-I (Maharatna

& Navratna PSEs); FICCI Sustainability Award 2016 for Best

Green Process in Petrochemicals Sector; India Pride Award

2015-16 for “CSR/Environment Protection & Conservation”

from Dainik Bhaskar Group and 9th CIDC Vishwakarma

Awards for Best Construction Projects for Revamp of CRU &

NHDS for NHT/ISOM, BPCL Refinery, Mumbai as well as for

Construction Health, Safety & Environment for Dahej

Petrochemical Complex, Dahej (Gujarat).

Corporate Governance

Your company is committed to good Corporate Governance

as per the requirements of SEBI Regulations and DPE

Guidelines in this regard. The Board of Directors supports the

broad principles of Corporate Governance. In addition to the

basic issues, EIL Board lays strong emphasis on

transparency, accountability and integrity as required under

SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015 and DPE Guidelines on Corporate

Governance.

Acknowledgements

I would like to take this opportunity to gratefully acknowledge

the assistance, support and guidance extended by the

Ministry of Petroleum and Natural Gas and other Ministries of

the Government of India. I would also like to express my

sincere gratitude to the shareholders of the Company for their

continued trust and faith in the company. I am confident that

your continued support will take the company to greater

heights in the days to come.

The distinguished members and my colleagues on the Board

continue to be a source of inspiration, motivating us with

their invaluable experience and expertise. Thank you for your

support.

We also thank all our clients, associates, suppliers, and

contractors within the country and abroad for their continued

support.

My heartfelt appreciation and acknowledgement for the

dedicated efforts put in by all members of the EIL family.

Thank you for contributing to the success of EIL.

Jai Hind!

th19 September, 2017 Sanjay Gupta

New Delhi Chairman and Managing Director