Eil and Epil

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Engineers IndiaLtd & EngineeringProjects India LtdA brief review of the two organisation

CIAL Diversification Plan models

12/07/2013


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Contents

A. Engineering Projects India Ltd ....................................................... 3

1. Introduction ...................................................................................................... 3

2. Financial indicators ........................................................................................... 4

3. Segment-Wise Performance ............................................................................. 5

4. Areas of Consultancy ......................................................................................... 5

5. Board of Directors ............................................................................................. 7

6. Organisational Structure .................................................................................. 8

7. Major Projects .................................................................................................. 8

B. Engineers India Ltd ...................................................................... 10

8. Introduction .................................................................................................... 10

9. Human Resources ........................................................................................... 10

10. Diversification ...............................................................................................11

11. Business Overview ....................................................................................... 12

12. Financial indicators ..................................................................................... 14

13. Segment-Wise Performance ........................................................................ 15


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A. Engineering Projects India Ltd

1. IntroductionAs on 31.03.2012, there were 16 central public sector enterprises in the Industrial

Development & Technical Consultancy Services group, amongst which EPI during

the last 40 years, is engaged in the field of execution of large and multi-disciplinary

industrial & construction projects on the turn key basis and project consultancy

services.

EPI was incorporated in 1970 as A Government of India Enterprise under the

administrative control of Department of Heavy Industry. Since then, EPI has

admirably performed its assigned roles as the countrys leading Prime Contracting

Company and has left its imprint not only in India but in the overseas market as

well where its past operation spread over a decade in the wake of oil boom in the

Middle East. EPI successfully executed 30 odd projects valued over US$ 782.00

million in Iraq, Kuwait, Saudi Arabia, UAE, Yugoslavia, Maldives, Bhutan and

Thailand

EPI has executed over 522 multi-disciplinary projects in India valuing over Rs.

6214.817 million. Through the execution of these projects, EPI has in its own way

contributed immensely in the development of the Nation and there is hardly any

state in India where EPIs pronounced presence is not visible. EPI has the rare

distinction of having worked for almost all Power Sectors and Steel Plants in India

in Public Sector as well as in Private Sector. EPIs contribution in project execution

for various sectors is also quite substantial.

The performance of your Company was rated as Very Good for the year 2010-11

by the Department of Public Enterprises (DPE) under the MOU signed with the

Government.


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2.Financial indicators


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3.Segment-Wise Performance

4.Areas of ConsultancyEPI offers the following services:

FEASIBILITY STUDIES

DETAILED PROJECT REPORTS DESIGN AND ENGINEERING

SUPPLY OF PLANT & EQUIPMENT

QUALITY ASSURANCE

CIVIL AND STRUCTURAL WORKS

ERECTION, TRIAL RUN AND COMMISSIONING

TRAINING OF SUPERVISORS AND OPERATORS

OPERATION AND MAINTENANCE TURN-KEY PROJECT MANAGEMENT

PROJECT MANAGEMENT CONSULTANCY

The core competence lies in the following areas

Housing and Townships

Prestigious and Sophisticated Public Buildings

High Rise RCC Structures

Civil and Structural Works of Steel Plants, Power Plants, Refineries, Oil

Terminals etc.


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Infrastructure and Development works.

Roads

Storage Silos

Airports and Control Towers Sea ports

Sport Stadia

Rural and Urban Water Supply Systems

Water Treatment Plants

Water Distribution

Sewage Treatment

Chemical Effluent Treatment Lump Iron Ore in Mines

Raw Materials in Steel Plants

Raw Coal from Mines

Crushing and Conveying Coal at Thermal Power Stations

Fly Ash /Bottom Ash

Non-ferrous Ore

Fertilizer at Ports

Limestone at Cement Plants

Reheating Furnaces

Electric Arc & Reduction Furnaces

Lime & Dolomite Kilns

Lime Calcination Plants

Steel Melting Shops

Walking Beam Furnaces

Finishing & Processing Lines

Sponge Iron Plants

Tube Mills & Related Projects


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5.Board of DirectorsShri SPS Bakshi Chairman-cum-Managing Director

Shri Vinoo Gopal Director(P)

Shri Rajesh Kumar Singh Part time Official Director

Dr. K S Rao Part Time Non-Official Director

Shri S.P.S. Bakshi (50 years) has joined EPI as Chairman-cum-Managing Director

in February, 2009. Shri Bakshi is a Post Graduate in Civil Engineering (Highways

& Trans.. Engineering). He is a Fellow Member of the Institution of Engineers

(India) and a Member of the Institute of Transportation Engineers, USA.

Shri Bakshi has a rich and comprehensive experience of 30 years in following

fields:

Specialization in Project Planning, Execution and Coordination on turnkey

basis, i.e. from Concept to Implementation/Commissioning;

Expertise in Project Management operations with key focus on profitability

and optimal utilization of resources, with mean and lean infrastructure;

Strategic planner with expertise in planning and execution of construction

projects;

Proficient in implementing Project Management solutions;

Excellent team leader,adept at building effective and professionally

competent team.

Shri Bakshi has Specialized Experience in:

Planning, Designing and Implementation of Mega Building & Airport Projects

on turnkey basis;

Design & Construction of Pavements for Runways and Highways;

Quality Management of Engineering Projects;

Testing and Evaluation of Construction Material;


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Completion of Mega Projects without any time or cost over-run;

Expertise in handling projects on Public Private Partnership basis;

Establishing world class training facilities for technicians and artisans in

Construction Industry.Prior to joining EPI, Shri S.P.S. Bakshi has worked as Executive Director/Regional

Executive Director, Airports Authority of India and Chief General Manager,

National Highways Authority of India. He has handled major Infrastructure

Airports and Highways Projects of National Importance.

6.Organisational StructureThe company has nearly 450 employees on roles.

7.Major ProjectsDuring the financial year 2011-12, Company has secured 12 projects valuing

1017.21crores. Some of the major projects are given below:


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B. Engineers India Ltd

8.IntroductionEngineers India Limited (EIL) was set up in 1965 to provide engineering and

related technical services for petroleum refineries and other industrial projects.

EIL is working under the administrative control of Ministry of Petroleum and

Natural Gas (MoP&NG), Government of India. In addition to Petroleum Refineries,

with which EIL started initially, over the years it has diversified and excelled in

various other fields. EIL today has emerged as Indias leading design, engineering

and turnkey contracting company providing a complete range of project services

needed to conceptualize, plan, design, engineer and construct projects to meet the

specific requirements of its clients in the following fields:

Petroleum Refining Petrochemicals Pipelines Offshore Oil & Gas Onshore Oil & Gas Terminals & Storages Mining & Metallurgy Infrastructure

9.Human ResourcesHuman resources along with technology are the two prime resources of consulting

organizations like EIL. Over the years, EIL has earned the reputation of being a

veritable treasure of technical knowledge, skills and professional competence. At

present, EIL has a staff strength of more than 3370 as on March 31, 2013 of which

about 2950 are engineers, technologists and specialists in various disciplines like

chemical engineering, mechanical engineering, civil engineering, structural

engineering, computer sciences, information technology, geotechnical engineering,

welding sciences, material technology, ocean engineering etc. With this manpower,

EIL has about 4.5 million manhours available annually in its design offices along with

about 9600 man months of construction management services per annum and is in

a position to handle a number of large projects at a given point of time.


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10. DiversificationEngineers India Limited is a public sector undertaking and all the directors are

appointed by the Government of India. The Board has a mix of executive and non-

executive Directors. The Articles of Association of the Company stipulates that the

number of Directors shall not be less than five and not more than twenty five.

Presently EIL is having 13 Directors on its Board viz. C&MD 5 whole time

Executive Directors (Functional) and 7 Non-Executive Directors.

With a vision To be a World Class Globally Competitive EPC and Total Solutions

Consultancy Organization, the Company is targeting higher business projectionsand closely looking at diversification avenues based on its strengths in design,

engineering and project management capabilities.

New endeavors for diversification have identified that thrust needs to be given to

overseas operations in EILs core areas including targeting medium to large size

EPC projects. Entering into new sectors e.g. Nuclear and Water and closely

following sunrise sectors like Solar Power, Coal to Liquid projects constitute the

diversification initiative.

Joint Venture Companies have been floated for tapping business opportunities. In

this regard, TEIL Projects Ltd (TEIL), the joint venture company with Tata

Projects is exploring business opportunities in EPC sector.

EIL is looking at getting into the solar power project consultancy

business. EIL plans to provide end-to-end solutions for the

development of solar power projects. Meanwhile, EIL is also planning to

enter the gas-based power project consultancy business. Once EIL gets a foothold

in gas-fired power consultancy business, it can also diversify into coal-based power

consultancy.

The Company is also planning to tap the nuclear power consultancy business. We

are trying to leverage our expertise to provide consultancy for balance of plant

packages for nuclear power projects. Earlier, EIL was in fertiliser project

consultancy. It had provided consultancy services for various fertilizer plants,

including National Fertilizers Ltds (NFL) Bathinda and Panipat units. But


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subsequently, the Company had to quit this business in favour of other public

sector consulting firms. Now that business environment has changed, EIL is

planning to get back into the fertilizer consultancy business.

The company is also very bullish on the water management consultancy business.

EIL is already working with Delhi Jal Board and looking to expand in this area.

The Company is also planning to move into the infrastructure consultancy

business. It has been assigned the task of conducting quality inspection for most

flyovers coming up in Delhi.

11.

Business Overview

For the year Company gained business worth Rs. 758 crores with segment-wise

breakup isas follows:-

Domestic Consultancy - Rs. 507 crores

Domestic Turnkey - Rs. 130 crores

Overseas - Rs. 121 crores

There was a noticeable increase in overseas business, with its contribution inorderinflow increasing to 16% against historical trend of 5% to 8%. The overseas

businessregistered a strong growth of 234% on year-on-year basis.

All the major segments of EIL's business i.e. Hydrocarbons (Refining, Pipeline,

Oil& Gas Processing), Petrochemicals, Metallurgy and Infrastructure have

contributedpositively towards order inflows. Sunrise power sectors have also

secured new orders thisyear.

Overall, hydrocarbon sector continues to be the major business segment for the

Companywith 70% contribution in orders secured for the year followed by

Petrochemicals with 21%share.

In the Refining Sector, major consulting orders secured include CDU-4 Project at

Mumbai& Stage-1 of the Integrated Refinery Expansion Project at Kochi of BPCL

and South OilJetty Project of IOCL. EIL has also been entrusted for

implementation of the RO Plant ofGujarat Refinery of IOCL.

Major Petrochemical orders gained this year include Health Check-up of Gas

ProcessingUnits (GPUs) at Vijaipur, Gandhar, Vaghodia & Usar for GAIL (India)


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Limited and PDARevamp of Hindustan Petroleum Corporation Limited.

In the field of Pipelines, major projects secured include Kota-Piyala Section

ofMumbai-Manmad-Bijwasan Pipeline of BPCL and Mehsana-Bathinda Pipeline

of GSPL India GasnetLimited (GIGL).

In the field of Metallurgy, EIL has been awarded the job for Additional Cast

Housefacilities at Mahan Aluminium Smelter Project of HINDALCO.

Significant order inflows were received in Oil and Gas Processing segments with

awardof Western Onshore Redevelopment Project for Mehsana, Ahmedabad &

Ankleshwar Assets,Requalification/Recertification of 50 numbers of Offshore

Jackets and TurnaroundReconstruction Works of BPA & BPB Platform Complexes

of Oil & Natural GasCorporation Limited.

EIL once again strengthened its presence in the Infrastructure sector by winning

neworders for Green R&D Centre at Bangalore of HPCL.

EIL has also forayed into the Solar Projects and has been awarded jobs by Areva

for thePower Block of Concentrated Solar Thermal Power Project of Reliance

Power (ADAG). EIL hasalso been entrusted the job of Techno-Economic

Feasibility Report for CTL Project inMeghalaya by the State Government.

EIL's efforts in building relationship with Nuclear Power Corporation of India

Ltd.(NPCIL) resulted in an award of Engineering Services for the BOP for the

KudankulamNuclear Power Plant.

EIL also entered in strategic alliances in Korea for partnering in execution of

EPCprojects. EIL has also formed a Joint Venture Company in Saudi Arabia for

undertaking EPCprojects. In order to increase its geographic foot prints, EIL is

focusing on othercountries viz. Venezuela & China. In addition to the above, EIL

continues to provide alarge number of value added specialized services in fields

relating to Project FeasibilityStudies, Risk Analysis, Environment Management,Energy Efficiency Management etc.


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12. Financial indicators

The main highlights of the financial performance of the Company for the year

along withthe corresponding performance for the previous year are as under:

(FIGURES IN Rs. LAKHS)

No. Description 2011-12 2010-11

A(i) INCOME FROM SERVICES RENDERED 369882 282328

A(ii) OTHER INCOME 23218 16037

TOTAL INCOME 393100 298365

B. EXPENDITURE

i) Cost of rendering services 299678 218487

ii) Depreciation 1945 1430

TOTAL 301623 219917

C PROFIT BEFORE TAX (A-B) 91477 78448

D Provision for Current tax 32026 29943

E Provision for Deferred Tax (3862) (3412)

F Prior Period Tax Adjustments, Short/(Excess) (318) (335)

G PROFIT AFTER TAX (C-D-E-F) 63631 52252

H Dividend 20216 16847

I Tax on Dividend 3223 2664

J Retained Profits 40192 32741

K RESERVES & SURPLUS 167558 127365

L NET WORTH 184405 144212


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13. Segment-Wise Performance

(FIGURES IN Rs. LAKHS)

Year ended

31.03.2012

Year ende

31.03.201

Segment Revenue

Consultancy & Engineering

Projects120731 11279

Turnkey Projects 249151 16953

Total 369882 28232

Segment Profit From

Operations

Consultancy & Engineering

Projects51091 4865

Turnkey Projects 24521 1956

Total (A) 75612 6822

Prior period adjustment 192 57Interest 116 14

Other unallocable expenditure 7045 508

Total (B) 7353 581

Other Income (C) 23218 1603

Profit Before Tax (A-B+C) 91477 7844

Capital Employed (*) 184405 14421

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