MIRA INFORM REPORT

Report Date :

16.04.2007

IDENTIFICATION DETAILS

Name :	ENGINEERS INDIA LIMITED
Registered Office :	Engineers India Bhawani 1 Bhikaji Cama Place, New Delhi;110066
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	15.03.1965
Com. Reg. No.:	004352
CIN No.: [Company Identification No.]	L74899DL1965GO1004352
Legal Form :	Public Limited Liability Company. Company’s shares are listed on the stock exchange.
Line of Business :	Provides engineering and related technical services for petroleum refineries, oil and gas pipelines, petrochemical industries, chemical process plants and other industrial projects. In addition to petroleum refineries, the company has diversified into other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertiliser, metallurgy and power. The company today provides a complete range of project services in these fields.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 38000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Engineers India Bhawani 1 Bhikaji Cama Place, New Delhi;110066, India
Tel. No.:	91-11-26102121/26101419/2610 4132
Fax No.:	91-11-26178210/26187902/2619 4760
E-Mail :	eil.mktg@eil.co.in dc@eilhq.ernet.in
Website :	http://www.engineersindia.com
Regional office:	A.G. Towers (5th Floor), 125/1, Park Street, Kolkata 700017
Tel. No.:	91-33-22298995, 22277791, 22276304
Fax No.:	91-33-22277692
E-Mail :	eilcal@vsnl.com
Regional office:	9th floor, Hotel Surya Palace, Sayaji Ganj Vadodara - 390 005
Tel. No.:	91-265-2362203, 2362204, 2361006
Fax No.:	91-265-2226282
E-Mail :	sk.prasad@vad.eil.co.in
Regional office:	Talamuthu Natarajan Building, CMDA Tower, 5th floor (West Wing) Gandhi Irwin Salai, Egmore, Chennai-600 008 (Tamilnadu)
Tel. No.:	91-44-28543060 to 28543071
Fax No.:	91-44-28112320, 28114395
E-Mail :	n.duari@che.eil.co.in
Branches	Great Eastern Chambers, 5th Floor, Plot No. 28, Sector 11, Belapur C.B.D, Navi Mumbai - 400614
Tel. No.:	91-22-27560072, 27560032
Fax No.:	91-22-27572011,27563066
E-Mail :	eilmby@vsnl.com
Overseas Offices :	India House (6th Floor), Aldwych London WC 2B 4NA UK
Tel. No.:	91-44-20-7497116
Fax No.:	91-44-20- 4979414
E-Mail :	eillondon@btconnect.com
Overseas Offices :	P O Box 3489, O1 Floor, Flat No. O-104 & O-103 Clock Tower Building, AI-Najda Street, Abu Dhabi, United Arab Emirates (U.A.E)
Tel. No.:	91-9712-6740101
Fax No.:	91-9712-6740707
Mobile No:	971-505845013
E-Mail :	ncgupta@eiluae.ae akbatra@eiluae.ae
Overseas Offices :	4th Floor, AI-Ahed Building, Old Al Salata, R O. Box 22057, Doha Qatar
Tel. No.:	91-974-4431037 00-974-4414376
Fax No.:	91-974-4431046
E-Mail :	achopra@eilqatar.com.qa eilqatar@eilqatar.com.qa
Overseas Offices :	EIL Asia Pacific Sdn. Bhd. (290200-W) Suite 13A12, Level 13 A, Block A, Damansara Intan, No. I, Jalan SS Petaling Jaya, Selanger Darul Ehsan, Kuala Lumpur, Malaysia.
Tel. No.:	91-603-77255279
Fax No.:	91-603-77261027
Overseas Offices :	Chennai-600 008 (Tamilnadu) Level-1, 172, St. Georges Terrace, Perth, WA 6000, Australia
Tel. No.:	91-618 9226 0253
Fax No.:	91-618 9226 0937
E-Mail :	mk_eil@bigpond.net.au
Overseas Offices :	6th Floor, Building No. 8, Mohd. Iqbal Street (Behind Al-Sabah Bakery) Fahaheel, Area No. 10 Kuwait
Tel. No.:	91-965-3921215
Fax No.:	91-965-3921214
Mobile No:	91-965-7658012
E-Mail :	kwt_eil@yahoo.com

DIRECTORS

Name :	Mr. P. Mukerji
Designation :	Director (Projects!
Address :	El Bhawan, 1, Bhikaiji Cama Place, New Delhi-110 066
Date of Birth/Age :	02.03.1947
Qualification :	Degree in Civil Engineering (1968) from III Kharagpur MBA (1980) from Delhi University
Experience :	1968-1969 PWD 1969-1971 M/s Rendel Palmer & Trition. 1971- till date Engineers India Limited (EIL) He has extensive experience in the fields of Project Management and Engineering.
Name :	Mr. P. K. Saha
Designation :	Director (Commercial)
Name :	Mr. Prabh Das
Designation :	Director (Govt.Nominee)
Name :	Mr. Ravi Capoor
Designation :	Director (Govt. Nominee)
Name :	Mr. B. M. Bansal
Designation :	Director
Name :	Mr. U. N. Bose
Designation :	Director
Name :	Mr. M. K. Joshi
Designation :	Director (Technical)
Address :	El Bhawan, 1, Bhikaiji Cama Place, New Delhi-110 066
Date of Birth/Age :	27.07.1950
Qualification :	Degree in Chemical Engineering (1972) from NT Kanpur
Experience :	1972 to till date - Engineers India Ltd. He has extensive experience in activities related to conceptualisation of projects, preparation of feasibility reports for Grass root and revamp projects, technology evaluation for licensed processes, process design for open art facilities and residual process design for licensed processes, support during detailed engineering, startups, trouble shooting and energy audit/ energy conservation studies, support in technology development. He has also been closely involved in the development and commercialisation of indigenous technologies.
Name :	Mr. P. K. Agarwal
Designation :	Director (Personnel)
Name :	Mr. D. S. Chakrabarti
Designation :	Director (Finance)
Address :	El Bhawan, 1, Bhikaiji Cama Place, New Delhi- 110066
Date of Birth/Age :	01.01.1953
Qualification :	Chartered Accountant (1977)
Experience :	1978-1979 M/s Coal India Limited 1979-2001 M/s IBP Company Limited 2001- till date M/s Engineers India Limited (EIL) He has extensive experience in the fields of Financial Management, Financial Accounting, Cost Accounting, Budgetary & Cost Management and internal audit.

KEY EXECUTIVES

Name :	R. Soundararajan
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
President of India	50765700	90.401
Mutual Funds and UTI	715845	1.275
Banks, Financial Institutions and Insurance Companies	1907121	3.396
Private Corporate Bodies	333303	0.594
Foreign Institutional Investors	1013846	1.805
NRIs/OCBs	36941	0.066
Indian Public	1383344	2.463
Total	56156100	100.000

BUSINESS DETAILS

Line of Business :

Provides engineering and related technical services for petroleum refineries, oil and gas pipelines, petrochemical industries, chemical process plants and other industrial projects. In addition to petroleum refineries, the company has diversified into other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertiliser, metallurgy and power. The company today provides a complete range of project services in these fields.

GENERAL INFORMATION

No. of Employees :	3774
Bankers :	Bank of India, New Delhi Corporation Bank, New Delhi State Bank of Patiala, New Delhi State Bank of Travancore, New Delhi Punjab National Bank, New Delhi Bank of Baroda, New Delhi Indian Overseas Bank, New Delhi State Bank of India, New Delhi Vijaya Bank, New Delhi
Facilities :	--

Banking Relations :	Good
Auditors :
Name :	M/s. V. K. Dhingra & Co. Chartered Accountants,
Address :	IE/15, Jhandewalan Extension, New Delhi-110055
Tel. No.:	011-23550475, 23638325
Mobile No.:	011-23549789
Memberships :	Confederation of Indian Industry
Associates/Subsidiaries :	Certification Engineers International Limited, India EIL Asia Pacific SDN BHD, Malaysia

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10 each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
56196600	Equity Shares	Rs.10 each	Rs. 561.966 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		561.562	561.562	561.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8941.842	8067.665	7340.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9503.404	8629.227	7902.400
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.00
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES
TOTAL		9503.404	8629.227	7902.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		387.602	405.928	469.000
Capital work-in-progress		12.547	8.961	4.000
INVESTMENT		1382.805	1372.510	1365.800
DEFERREX TAX ASSETS		548.500	331.801	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.288	8.384	126.100
	Work in Progress	142.365	164.157	0.000
	Sundry Debtors	2238.106	3228.317	1839.000
	Cash & Bank Balances	7498.285	6293.449	6643.900
	Other Current Assets	1951.578	2351.059	0.000
	Service Tax Receivables	187.435	196.932	0.000
	Loans & Advances	1317.240	1743.681	4309.500
Total Current Assets		13343.297	13985.979	12918.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3772.562	5340.294	3724.100
	Provisions	2468.964	2306.270	3407.100
Total Current Liabilities		6241.526	7646.564	7131.200
Net Current Assets		7101.771	6339.415	5787.300
MISCELLANEOUS EXPENSES		70.179	170.612	276.300
TOTAL		9503.404	8629.227	7902.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		0.000	0.000	12818.400
Other Income		8571.467	9736.685	522.700
Total Income		8571.467	9736.685	13341.100
Profit/(Loss) Before Tax		1997.792	1666.558
Provision for Taxation		611.358	540.207
Profit/(Loss) After Tax		1386.434	1126.351
Expenditures :
	Technical Assistance/ Sub-Contracts	2289.970	1325.373	0.000
	Consumables/Stores R & D Centre	0.097	0.427	0.000
	Construction Materials and Equipments	865.329	3513.927	0.000
	Salaries, Wages, Bonus, etc.	2239.148	2006.001	0.000
	Facilities	308.880	393.407	0.000
	Corporate Costs	146.342	102.439	0.000
	Depreciation & Amortization	95.185	92.123	0.000
	Other Expenditure	610.157	573.667	0.000
	Raw Materials	0.000	0.000	00.000
	Excise Duty	0.000	0.000	00.000
	Power & Fuel Cost	0.000	0.000	55.400
	Other Manufacturing Expenses	0.000	0.000	7027.600
	Employee Cost	0.000	0.000	1926.500
	Selling and Administration Expenses	0.000	0.000	625.100
	Miscellaneous Expenses	0.000	0.000	179.600
Total Expenditure		6555.108	8007.364	9814.200

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	1467.100	1305.000	1311.700
Other Income	145.500	239.500	227.300
Total Income	1612.600	1544.500	1539..000
Total Expenditure	1175.900	1037.700	957.400
Operating Profit	436.700	506.800	581.600
Interest	00.000	00.000	00.000
Gross Profit	436.700	506.800	581.600
Depreciation	20.400	21.500	20.000
Tax	175.900	181.400	199.900
Reported PAT	278.200	327.700	398.800

200606 Expenditure Includes Staff Cost Rs 551.80 million Other Expenses - Sub-Contract payment Rs 183.40 million - Construction material Rs 118.70 million - Other Expenses Rs 322.00 million Tax Includes Provision for Taxation Rs 170.70 million Provision for Deferred Tax Liability/(Asset) Rs (37.80) million Fringe Benefit Tax Rs 5.20 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record by the Board of Directors at their meeting held on July 27, 2006. 2. While adopting accounts for the year ended March 31, 2006, the Board of Directors had recommended payment of 50% final dividend on paid up share capital. The total dividend for the year 2005-06 works out at 80% of paid up share capital including an interim dividend @ 30%. The above is subject to the approval of Shareholder in AGM. 3. Staff cost includes an amount of Rs 16.00 million on account of VRS (Rs 27.20 million for corresponding quarter ended June 30, 2005). 4. The above quarterly result are subject to Limited Review by the auditors of the Company and the review report will be submitted to the concerned stock exchange within stipulated time. 5. Previous quarter's / year's figures have been recasted and / or regrouped wherever necessary to make them comparable with current quarter's figures.

200609 EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 01 Complaints disposed off during the quarter 01 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record by the Board of Directors at their meeting held on October 31, 2006. 2. Staff Costs includes an amount of Rs 16.00 million on account of VRS (Rs 27.10 million for corresponding quarter ended September 30, 2005). 3. The above quarterly results are subject to Limited Review by the auditors of the Company and the review report will be submitted to the concerned stock exchange within stipulated time. 4. Previous periods figures have been recasted and / or regrouped wherever necessary to make them comparable with current quarters figures.

200612 Expenditure Includes Staff Cost Rs 527.40 million Other Expenses - Sub-Contract payment Rs 76.00 million - Construction material Rs 65.40 million - Other Expenses Rs 288.60 million Tax Includes Provision for Taxation Rs 223.20 million Short/(Excess) Provision for earlier years Rs (30.70) million Provision for Deferred Tax Liability/(Asset) Rs (37.10) million Fringe Benefit Tax Rs 7.40 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record by the Board of Directors at their meeting held on January 31, 2007. 2. The Board of Directors has declared an interim dividend @ 35% on the paid up share capital. 3. Staff cost includes an amount of Rs 16.10 million on account of VRS (Rs 27.20 million for corresponding quarter ended December 31, 2005). 4. The above quarterly result are subject to Limited Review by the auditors of the Company and the review report will be submitted to the concerned stock exchange within stipulated time. 5. Previous quarter's / year's figures have been recasted and / or regrouped wherever necessary to make them comparable with current quarter's figures.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.00	0.00	0.00
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	1.80	1.75	1.65
TURNOVER RATIOS
Fixed Assets	5.92	7.06	10.44
Inventory	49.05	60.97	10.79
Debtors	2.90	3.59	6.61
Interest Cover Ratio	86.38	74.10	72.03
Operating Profit Margin(%)	26.70	19.57	10.95
Profit Before Interest And Tax Margin(%)	25.50	18.56	10.28
Cash Profit Margin(%)	18.69	13.39	6.92
Adjusted Net Profit Margin(%)	17.49	12.38	6.26
Return On Capital Employed(%)	22.59	21.01	17.86
Return On Net Worth(%)	15.29	13.63	10.40

STOCK PRICES

Face Value	Rs.10.00
High	Rs.545.00
Low	Rs.470.00

LOCAL AGENCY FURTHER INFORMATION

The Company continued its good performance during the year 2005-06. The salient features are as follows :

• Turnover of the Company was Rs. 79048 lakhs.

• Operating profit was Rs. 13311 lakhs, representing a growth of more than 22% over the previous year.

,• Profit Before Tax (PBT) was Rs. 19978 lakhs, representing a growth of 1 9,8% ,over the previous year.

• Profit After Tax (PAT) was Rs. 13864 lakhs, representing a growth of more than 23% over the previous year.

The turnover was lower in comparison to the previous year mainly because of lower revenue from the LSTK

business. Growth in operating profit has been achieved through increased productivity and stringent cost

management.

PETROLEUM REFINERIES

The Refining sector continued to play a significant role in our business. During the year, the following major

refinery projects were completed :

• DHT, CDU/VDU, OHCU, Sulphur Block and associated Utilities & Offsites for Panipat Refinery Expansion Project of IOCL

• Capacity Expansion cum Modernisation Project, Phase-l at Kochiof KRL

• Reconstruction of FCC Unit at Gujarat Refinery, Vadodara of IOCL

The Company provided consultancy services under EPCM route for the Green Fuel Project of HPCL, Mumbai and the Clean Fuel Project of HPCL, Visakh, both of which are at advanced stages of construction. Also at an advance stage of construction is the MS Quality Upgradation Project of IOCL, Gujarat. During the year, THE COMPANY was entrusted with balance engineering and construction services by Essar Oil for their Refinery Project at Vadinar, Gujarat and the project is fast moving towards mechanical completion.

It is gratifying that Clients continue to repose confidence in The Company, and as a result thereof, major new assignments

were awarded, viz. a grassroot refinery at Bina being set up by BORL and the second expansion of Panipat

Refinery from 12 to 15 MMTPA. Work on both these projects has already commenced. Another important

new assignment is the DHT unit of BRPL. What is particularly satisfying in this case is that this will be

the first commercial application of the new process technology developed jointly by R&D Divisions of

IOCL and THE COMPANY

A large number of Detailed Feasibility Reports and Scoping Studies were carried out during the year. Some of the significant ones were for refineries at Visakh, Mangalore, Bongaigaon and the Greenfield Bhatinda Refinery Project.

PETROCHEMICALS, CHEMICALS & FERTILIZERS

In Petrochemicals, the PTA Project of Panipat Refinery reached mechanical completion. Work on another

prestigious project of Panipat Refinery i.e. Naphtha Cracker Project along with Downstream Units and

Utilities & Offsites has completed important milestones. After completion of the preparation of FEED Packages

for various units, tendering and evaluation of EPC bids for various packages is now nearing award stage

from where the project can take off for physical implementation.

The expansion of UP Petrochemicals Complex of GAIL at Pata has been completed and successfully commissioned in November, 2005. EPCM services for execution of the new HOPE Unit are currently being

provided and it is targeted to complete the project by year end. A Feasibility Report for setting up a gas

based Petrochemical Complex at Kochi, Kerala has also been completed for GAIL.

PIPELINES

In the field of Pipelines, THE COMPANY continued to provide extensive services to its clients. The work on multi

product trunk pipelines viz. Mundra-Delhi Pipeline of HPCL (1066 KMs), Mumbai-Manmad-Manglaya

Pipeline extension to Delhi of BPCL (776 Kms), Numaligarh-Siliguri Pipeline of OIL (660 Kms) and

Pune-Solapur Pipeline of HPCL (343 Kms) were in progress and these projects are now at advanced

stages of construction. Besides these major pipeline jobs, work on expansion of pumping facilities of the

existing Mumbai-Manmad pipeline of BPCL and a new Marketing Terminal at Siliguri of NRL have also

achieved significant milestones. All the multi product pipelines, in hand, are expected to be completed

during the next financial year. During the year under review, THE COMPANY secured and has subsequently progressed on two new major jobs. The first one being the 935 Km 24" pipeline for transportation of Crude Oil from Vadinar to Bina Refinery. The second job involves 327 Km, 30" pipeline from Panvel to Dabhol and spurlines for transportation of regassified LNG.

OFFSHORE OIL & GAS

The Offshore Oil & Gas Projects Division continued to provide consultancy services to its esteemed clients.

Major assignments for ONGC are the MUT Pipeline Project, SH Reconstruction Project, Vasai East

Development, 26 Well Platform Project and various other revamps/modernization projects. Major

assignments for GSPC included services during the early phases of the development of the Deen Dayal

Offshore Gas Field in the Krishna Godavari basin. The Division is currently carrying out a System

Adequacy Study for ZADCO, Abu Dhabi for enhance production of hydrocarbons in Upper Zakum Fiel;

Major assignments for ONGC are the MUT Pipeline Project, SH Reconstruction Project, Vasai East

Development, 26 Well Platform Project and various other revamps/modernization projects. Major

assignments for GSPC included services during the early phases of the development of the Deen Dayal

Offshore Gas Field in the Krishna Godavari basin. The Division is currently carrying out a System

Adequacy Study for ZADCO, Abu Dhabi for enhance production of hydrocarbons in Upper Zakum Fiel;

ONSHORE OIL & GAS

Considering LNG an emerging area of the future, your Company had entered the field by taking up

assignments for preparation of Feasibility Reports for LNG Terminals. THE COMPANY has now progressed to providing

consultancy services for execution of LNG Storage and Regassification Terminals. The three jobs under

execution are :-

• PMC Services for Expansion of Dahej Terminal of Petronet LNG Ltd.

• Preparation of FEED Package for Grassroot LNG Terminal at Kochi for Petronet LNG Ltd.

• Revival of Dabhol LNG Terminal for Gas Authority of India Ltd.

For initial assignments, services of back-up consultants have been used. After full development of in-house

expertise in all areas, future projects, both domestic and overseas are intended to be handled by THE COMPANY on its

own strength.

THE COMPANY provided services to ONGC for preparation of Process Package and Bid Package documentation for

Revamp of Facilities at Assam GGS-I & GGS-II at Rudrasagar. Currently, Project Management services

are being provided for these projects along with Compressor Plant at Geleki Assam and Mounded

Storage Bullets at Duliajan for Oil India.

PORTS & TERMINALS

The Ports and Terminals Division is engaged in the revival of marine facilities of the Dabhol Power plant,

Single Point Mooring Terminal for BORL and other smaller projects at different ports.

Business Overview:

On the domestic front, important orders in the fields of refineries, petrochemicals, pipelines, onshore/offshore oil & gas and non ferrous metallurgy were secured by EIL during the year.

Major jobs secured in the Refinery sector include Bharat Oman Refinery Ltd.'s 6 MMTPA Greenfield Bina Refinery along with its downstream units, lOCL's Panipat Refinery Expansion from 12 to 15 MMTPA and jobs associated with resumption of work at Vadinar Refinery of Essar. In addition, EIL was awarded several feasibility studies which include a new Grassroot Refinery in Rajasthan and addition of new facilities at the Numaligarh, Barauni, Chennai, Kochi and Mangalore Refineries for capacity expansion and/or product slate upgradation. EIL was also awarded a large number of smaller assignments covering studies and reports by virtually all the major refineries in India. In Oil & Gas sector, EIL has been entrusted with jobs associated with completion of balance works as well as further expansion of LNG Terminal at Dabhol and for providing consultancy services for the proposed LNG Receiving & Storage Terminal at Kochi from Petronet LNG. Other jobs secured by EIL include assignments in Eastern India from ONGC and Oil India Ltd. ONGC continued to retain EIL for providing consultancy services and feasibility studies for the Offshore sector.

In the field of Pipelines, EIL secured assignments for the 935 km. 24" crude oil pipeline from Vadinar to Bina for Bharat Oman Refinery Ltd. and the 327 km. 30" Dabhol-Panvel LNG pipeline for GAIL. In addition, several studies for new projects were carried out and some of these are expected to generate project assignments in the near future.

EIL also secured a number of assignments in the Infrastructure sector. The major customers include Guru Gobind Singh Indraprastha University and Pune Municipal Corporation. In addition to the above, EIL secured assignments for Process Design, Engineering and for Specialist Services in the areas of Environment Engineering, Risk Analysis, Advance Control and Optimization and Heat & Mass Transfer.

Overseas, EIL was successful in securing new orders worth Rs.3330.000 million during 2005-06 as against

Rs.1450.000 million in the preceding year, thus registering a growth of 130% over the previous year. It may

be noted that EIL's overseas business accounted for over 40% of new business secured. It was an all

time high both in terms of value as well as percentage. Major business was secured from Algeria and Italy. Various smaller assignments were secured from Abu Dhabi, Kuwait, Iran, Qatar, Ghana, Saudi Arabia and Bahrain.

BUSINESS OUTLOOK ENVIRONMENT AND FUTURE

The Oil & Gas business is critically linked to EIL's business perspective. It includes upstream sectors starting with exploration, drilling & crude oil/gas production down to refining, transportation, storage and marketing. All these sectors are presently in good health and marked by growth and fresh investments.

In India, apart from the grassroot refinery project at Bina, new refinery projects at Paradip, Orissa and Bhatinda, Punjab along with expansions at Mangalore, Kochi, etc. are expected to take off in the coming year. These, along with projects for greener fuel and value addition to refining operations such as processing of heavy high sulphurcrudes and bottoms upgradation will continue to be the drivers of EIL's business in the domestic refinery sector. Allied investments in transportation, distribution and infrastructure like marketing t e r m i n a l s and cross country pipelines will continue to provide significant business opportunities to EIL.

It is now an acknowledged national strategic imperative to enhance crude oil storage capacity in their country. Towards this end EIL has through several studies established the basis of enhanced strategic storage of crude oil in underground caverns. The Government has already established a vehicle to own such facilities. EIL has been making sustained efforts in nurturing this area and with the help of suitable technical tie ups, these efforts

are beginning to yield results. Following similar national strategic imperatives, EIL can, in the medium term, look towards business opportunities in gas storage and pipelines in certain remote areas of the country.

There are major projected investments in the gas sector. These include Exploration & Production of

Gas in Krishna Godavari Basin, LNG terminals, cross country pipelines and facilities for extraction

of heavier fractions like LPG, C/2 C/3, etc. These along with downstream petrochemical sector and

future strategic storage of gas will continue to provide opportunities for EIL to secure new

business.

Revamp of Offshore facilities viz. drilling and production platforms, underwater pipelines, both new

and revamp will continue to provide a steady business opportunity for EIL.

In the mining and base metal sectors, the Bauxite mining to Aluminium metal production route will continue to be important for EIL. India is one of the most significant sources of Bauxite and many international companies are examining options for setting up facilities in their country. These are expected to provide good business opportunities.

EIL maintained its steady progress in the infrastructure sector. Alliances are also being entered into to further pursue this line of business. With the commissioning of Paraxylene Projects of IOCL at Panipat due shortly, EIL creates a reference project as a qualification to participate in new EPC tenders in the hydrocarbon area.

With increasing requirements and accompanying rise in prices of oil & gas, major investments are

planned in refining, transportation and storage sectors throughout the world, including the countries EIL is focused upon. The overseas markets are therefore expected to continue to provide steady business opportunities.

There is an increase in competition both from existing players as well as from the entry of several multinational engineering companies. In consequence there is continuous pressure both on market share as well as profit margins. EIL is confident of holding its own with continued emphasis on improving work processes, increasing

productivity and enhanced emphasis on customer relationship management.

FINANCIAL PERFORMANCE

The main highlights of the financial performance of the Company for the year along with the corresponding performance for the previous year are as under :-

3.2 Financial Performance in Relation to Operational Performance

The turnover during the year at Rs.7904.800 million was 13.7% lower than the previous year. This was mainly on account of lower turnover from Lumpsum Turnkey (LSTK) Projects. The turnover from LSTK Projects fluctuates depending on the schedule, progress as well as the value of the project. EIL could nevertheless increase its operating profit due to increase in consultancy & engineering revenue, increased operational efficiency and stringent cost controls. Aggregate costs for technical assistance/sub contracts and construction materials & equipments were less due to lower expenses on LSTK business. Total expenditure at Rs.6573.700 million represented a 18.5% reduction in comparison to the previous year.

Subject was established in 1965 to provide engineering and related technical services for petroleum refineries, oil and gas pipelines, petrochemical industries, chemical process plants and other industrial projects. Since its formation, EIL has been responsible for implementing a large number of projects. In addition to petroleum refineries, with which EIL started initially, it has diversified into other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures & platforms, fertiliser, metallurgy and power. Today it provides a complete range of project services in these fields. 

 The company has strategic alliances with Foster Wheeler Italiana for Refinery Residue Based Power Plants, Kema - Nederlands for Renovation / modernisation and Life extension studies for existing power plants and Kellog Brown & Root for LNG projects in India & Overseas. 

 Certification Engineers International Ltd and EIL-Asia Pacific Sdn. Bhd (Malayasia) are the wholly owned subsidiaries of the company. 

 EIL initiated its Research & Development activities in 1970. Its R&D Centre is located at Gurgaon on the outskirts of Delhi. It has been working closely with operating companies in setting up pilot plants for collection of design data, and with National Laboratories and premier technical institutions and has developed technologies in the fields of petroleum refining, petrochemicals, non-ferrous metallurgy and hydraulic transportation of solids. It's R&D has made significant contribution towards process design of a number of units such as aromatics extraction, visbreaker, acrylates, transportation through slurry pipelines, propane deasphalting plants, etc. 

 EIL diversified into various areas of infrastructure which includes mass rapid transit system, highways and bridges, airports, portsand terminals, intelligent buildings, specialist materials and maintenanceservices, refractory services, information technology, power and non-conventional resources of energy. 

 During 2001-02 EIL has received two orders for LSTK job from M/s ONGC for its MNW Platform project for a value of Rs.8200.000 million and N11/N12 Well Platforms Project for a value of Rs.4000.000 million approximately. Both the above projects are nearing completion. The 3 MMTPA Expanion project at CPCL's Manali Refinery and Rs.18000.000 million,6 MMTPA Mumbai Modernisation project of BPCL is progressing well. The company has completed the project of BPCL during 2004-05. In the Pipeline segment the company has completed 3 major projects viz Haziara-Dahej Gas Pipeline of IPCL,Expansion of Vizag-Vijayawada Multiproduct Pipeline to Secunderabad of HPCL and Cochin-Coimbatore-Karur Multi-product Pipeline of Petronet CCK Ltd. The 204 KM long 18' dia Tatipaka-Kondapale Pipeline Project of GAIL along with modification of terminal at Tatipaka was also completed. In the Power segment the 3rd Gas Turbine for BPCL's Captive Power Plant expansion project at Mahul,Mumbai was commissioned. The POL jetty with topside facilities for BPCL in Ports & Terminals segment was commissioned in February,2002. 

 The company's construction division continued to provide construction management services for various clients at 30 diverse project locations spread across the country and 9 overseas locations. During 2004-05 the company has secured new orders worth Rs.6246.500 million for Consultancy Services.

Fixed Assets

Land free hold

Land lease hold

Building

Plant and Machinery

Furniture, Fixture and Office

Constn. Equipments

Computer Hardware

Computer Software

Motor Vehicles

Library Books

As per web site:

THE COMPANY

Engineers India Limited was established in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects.

In addition to petroleum refineries, with which EIL started initially, it has diversified into and excelled in other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power. EIL now provides a complete range of project services in these fields and has emerged as Asia's leading design and engineering Company.

Engineers India Limited is diversifying into several new areas including Highways & Bridges, IT, Airports, Mass Rapid Transport Systems, Ports & Terminals, Power Projects, Non-conventional / Renewable Energy Sources, Specialist Materials and Maintenance Services, Intelligent Buildings, Water and Urban Development projects.

EIL's fields of activities include:

• Petroleum Refineries
• Pipeline
• Oil and Gas Processing
• Petrochemicals
• Offshore Structures & Platforms
• Ports & Terminals
• Metallurgy
• Fertilizers
• Power
• Highways & Bridges
• Airports
• Non Conventional / Renewable Energy Sources
• Intelligent Buildings & Urban Development

EIL provides the complete range of services needed to conceptualise, design, engineer and construct projects to meet the specific requirements of its clients. Its association with the clients extends beyond the commissioning of their plants through monitoring operation of each plant and accumulating feedback on performance. Lumpsum Turnkey projects from concept to commissioning is an area into which EIL has entered in a big way. EIL's quality management systems in respect of its services have been assessed and upgraded to ISO 9001:2000 version.

Besides its Head Office at New Delhi, EIL has branch office at Mumbai, zonal office at Kolkata , regional offices at Chennai and Vadodara and inspection offices at all major equipment manufacturing locations in India. It also has overseas offices at London, Abu Dhabi, Kuwait, Qatar, Malaysia and Australia. EIL has a large number of site offices in India and abroad.

EIL has two wholly owned subsidiaries, EIL Asia Pacific Sdn Bhd in Malaysia and Certification Engineers International Ltd. for undertaking independent certification & third party inspection assignments.

COMPANY HISTORY

1965 Foundation of Engineers India Limited.

1967 EIL became a wholly owned Government Company.

1969 Diversification into Petrochemicals.

1970 Creation of Heat & Mass Transfer Design and Computer Services Departments.

1971 Ocean Engineering Department formed.

1972 First Metallurgical Project.

1973 Procurement office opened in London

Entry into Fertilizer and Pipeline projects.

1974 First Overseas assignment

Inhouse process design/engineering, technology development.

1975 Installed a third generation computer system.

1976 Training Division formed.

1977 First Oil & Gas processing project.

1975-1980 Development of skills in the areas of Process Plant services e.g. Operations, Safety, Materials, Environmental Engineering.

1981 Use of computers at construction sites, Procurement office opened in Tokyo.

1983 Own office complex - EIL Bhavan occupied, Independent Certification Division formed.

1989 Own R&D Centre at Gurgaon.

1992 Engineering Office opened in Qatar, Joint-Venture with AMEC, UK.

1993 Regional Offices opened in Chennai & Vadodara.

1994 Creation of subsidiary - EIL Asia Pacific Sdn. Bhd

ISO 9001 Certification

Peak export earnings.

1995 Six Percent Disinvestment

Formation of Subsidiary-Certification Engineers International Ltd.

1997 Four per cent equity for employees.

1998 Diversification into LNG and Refinery Residue based Power Plants

1999 EIL enters into Turnkey Contracting-Undertakes turnkey projects in the areas of Offshore Platforms and Offsite Automation

Highest Dividend of 150% paid.

2000 EIL’s MOU rating highest amongst all PSUs under the Ministry of Petroleum & Natural Gas.

2001 Major diversification into several new infrastructure and other areas.

EIL's MOU performance improved to 1.017 (in 2000-2001) and is ranked no. 1 amongst the PSEs under the Ministry of Petroleum & Natural Gas

2002 Major Breakthrough in Turnkey Contracting. ONGC awarded the prestigious MNW Platform to EIL on

Lumpsum Turnkey basis

AWARDS AND RECOGNITIONS

2005 First Prize of Indira Gandhi Rajbhasha Shield for the year 2003-2004

2005 NPMP Award on CFC Technology jointly to EIL & IOCL

2005 Certificate of Recognition from NPMP for Structured Packing –PARLPAK

2005 EIL featured amongst India’s Best Managed Companies in the 2nd AT Kearney-Business India’s Study

2005 National Award for Excellence in Engineering Consultancy Services-2004 of Consulting Engineers Association of India-2nd Prize

2004 Prime Minister’s Merit Certificate for Excellence in the Achievement of MOU Targets for 2002-03

2004 , 2003 Indira Gandhi Rajbhasha Shield for the year 2002-03, 2001-02, and 2000-01

2004 National Award for Excellence in Consultancy Services from CDC

2003 ICMA Award for the CFC Technology

2002 Special Commendation Award by Forum of Women in Public Sector.

2001 Certificate of Recognition by NALCO for achieving 10 million manhours working without a Lost Time

Accident at NALCO Expansion Project at Angul

2001 DSIR National Award For Process Development For Hydrogen Sulphide Removal

2001 NPMP Award of Excellence for Finance Management and Certificate of Recognition for Creativity and Innovation

2001 Prime Minister's Award for Excellence in the Achievement of MOU targets for 1998-99

2000 Enterprise Excellence Award conferred by Institution of Industrial Engineering

2000 CSIR Shield for Process Technology for Development Of NMP Lube Extraction Technology

1999, 2001, 2003 NPMP Certificate of Recognition for Creativity and Innovation

1999 CSIR Technology Prize for developing Propane Deasphalting Technology

1999 NPMP Award for Creativity and Innovation

1999 Forum of Women in Public Sector's Best Enterprise Award

1998 CSIR Technology Prize for developing Soaker Visbreaking Technology

1995 Awarded Indian Chemical Manufacturers Association for "Novel Energy Conservation & Integration

Programme in Chemical Plants" for 1994.

1995 Golden Peacock National Quality Award 

1993 National Export Award

1993 The Economics Times / Harvard Business School Association of India Corporate Performance Award.

1991 The Company Standardisation Award by Institute of Standards Engineers.

1989 Award for excellence in Development of Indigeneous Technology by Department of Petrochemicals , Government of India.

1986 Award of Honour for Safety by National Safety Council.

1976 ICMA award for process design & engineering

THEIR VISION

Corporate Vision

To be a world class globally competitive EPC and total solutions Consultancy Organisation.

Corporate Mission

1. To achieve “Total Customer Satisfaction” while delivering innovative, cost effective and value added

consulting & EPC services at global level.

2. To ensure growth and professional excellence by building intellectual capital and distinctive core

competencies.

3. To maximize creation of wealth, value and satisfaction for stakeholders

4. To promote and encourage best practices for Health, Safety, Environment and Ethics.

5. To achieve prominence in developing, adopting and assimilating state-of-the-art technologies for

competitive advantage.

6. To foster a culture of participation and innovation for employees’ growth and contribution through a

climate of fairness and transparency in operation.

Core Values

• Benchmark to learn from superior role models.
• Nurture the essence of Customer Relationship and bonding.
• Foster Innovation with emphasis on value addition.
• Integrity and Trust as fundamental to functioning.
• Thrive upon constant Knowledge updation as a learning organisation.
• Passion in pursuit of excellence.
• Quality as a way of life.
• Collaboration in synergy through cross-functional Team effort.
• Sense of ownership in what they do.

HUMAN RESOURCE

Engineers India has one of the most diversely skilled engineering work force in this region.  It has engineers, technologists and specialists having graduate and higher qualifications in various disciplines of engineering, technology, business administration, etc.  Engineers India has about four  million man-hours available annually in its Design Offices alongwith about 6,000 man months of construction management services per annum.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.41.99
UK Pound	1	Rs.84.22
Euro	1	Rs.57.22

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions