K. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation, based on all the relevant facts, available at the end of the reporting period. Provisions are determined based on the
best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties
surrounding the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

The provision for estimated liabilities on account of guarantees and warranties etc. in respect of lumpsum services and turnkey
contracts awarded to the Company are being made on the basis of management's assessment of risk and consequential
probable liabilities on each such jobs.

Provisions are discounted to their present values, where the time value of money is material.

Contingent Liabilities are possible obligation arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be estimated reliably, the
obligation is disclosed as measured with sufficient reliability. Where it is not probable that a present obligation exists, the
Company discloses contingent liability unless the possibility of an outflow of resources embodying economic benefits is remote.

Contingent liabilities relating to direct taxes, indirect taxes, financial liabilities, legal cases and others, whether disputed or not,
are disclosed on the basis of judgment of the management using the above policy backed by independent expert's opinion/
guidance, wherever required and reviewed at year end to reflect the current management estimate.

In respect of disputed cases, wherein the Company has lost the case in arbitration or other forums, if the management
determines that there is no present obligation, on the basis of evidence available (including expert's opinion), the same is
disclosed as a contingent liability, unless the possibility of outflow of resources is remote. Contingent assets are disclosed in the
Financial Statements by way of notes to accounts when an inflow of economic benefits is probable. However, when realization
of income is virtually certain, related asset is recognized.

Refer note 40 for the detailed discussion on the nature of contingent liabilities of the Company existing as on the balance sheet date.

L. GOVERNMENT GRANTS

Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached
conditions will be complied with.

Government grants related to a revenue item, are recognized in statement of profit and loss as a deduction from related
reported expense.

Government grants related to an asset are recognized as deferred income in the balance sheet and are recognised as income
in the ratio of depreciation over the expected useful life of the related asset.

When the Company receives grant as a non-monetary asset, the asset and the grant are recorded at fair value. The amount is
then recognised in statement of profit and loss over the expected useful life in a pattern of consumption of the benefit of the
underlying asset.

M. OIL AND GAS EXPLORATION ACTIVITIES

The Company follows 'Successful Efforts Method' in accounting for Oil and Gas exploration and production activities as
detailed below:

• Survey costs are charged as expense in the year of its incurrence.

• Acquisition costs, cost of incomplete/undecided exploratory wells and development costs are carried as intangible assets
under development till these are either transferred to producing properties on completion or expensed in the year when
determined to be dry, as the case may be.

The Company share of proved oil and gas reserves are disclosed when notified by the operator of the relevant block.

The Company proportionate share in the assets, liabilities, income and expenditure of jointly controlled assets are accounted
for as per the participating interest.

Capitalization of Producing Properties

Producing Properties are capitalised as "completed wells/producing wells" when the wells in the area/field are ready to
commence commercial production on establishment of proved developed Oil and Gas reserves.

Cost of Producing Properties includes cost of successful exploratory wells, developed wells, initial depreciation of support
equipment & facilities and estimated future abandonment cost.

Depletion of producing Properties

Producing Properties are depleted using the "Unit of Production Method (UOP)". The depletion or unit of production charged for
all the capitalized cost is calculated in the ratio of production during the year to the proved developed reserves at the year end.

Production Cost of producing Properties

Company share of production costs as indicated by Operator consists of pre well head and post well head expenses including
depreciation and applicable operating cost of support equipment and facilities.

N. RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure on Research and Development is charged to statement of profit and loss in the year the expenditure is
incurred. Capital Expenditure on Research and Development is capitalized under property, plant and equipment.

O. FINANCIAL GUARANTEES

Financial guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.

Initial recognition

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee.

Subsequent recognition

Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment
requirements of Ind-AS 109 and the amount recognised less cumulative amortisation.

P. INVENTORIES

Inventories in respect of stores, spares and chemicals etc. are valued at lower of cost and net realizable value.

Cost is determined on "First In, First Out" basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.

Physical verification of inventory including store and spare items (excluding materials in-transit) is carried out by the Company
annually. The discrepancies noticed, if any, are accounted for in the year in which such differences are found.

Q. INCOME TAXES

Tax expense recognized in statement of profit and loss comprises the sum of deferred tax and current tax except the ones
recognized in other comprehensive income or directly in equity.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. Calculation of current tax is based on tax rates and tax laws that have been enacted for the reporting period.

Current income tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in
other comprehensive income or directly in equity.

Management evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establish provisions, wherever applicable.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized to the extent
that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income.
This is assessed based on forecast of future operating results, adjusted for significant non-taxable income and expenses and
specific limits on the use of any unused tax loss or credit.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised,
or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date. Deferred tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other
comprehensive income or in equity).

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.

The Company offsets deferred tax assets and deferred tax liabilities as it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax
liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

R. INVESTMENT IN EQUITY INSTRUMENTS OF CONSOLIDATED ENTITIES

The Company's investment in equity instruments of subsidiaries, associates and joint ventures are accounted for at cost.

S. INVESTMENT IN JOINTLY CONTROLLED OPERATIONS

A joint operation is one whereby the jointly controlling parties, known as the joint operators, have rights to the assets,
and obligations for the liabilities, relating to the arrangement. A joint operation is generally not structured through a
separate legal vehicle.

T. CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits i.e., balances held with banks in current accounts for unrestrictive use.
Cash equivalents are short term, highly liquid investments that are readily convertible into known amount of cash and which
are subject to an insignificant risk of changes in value. The Company considers unrestrictive time deposits with banks having an
original maturity of three months or less as cash equivalent.

U. POST-EMPLOYMENT BENEFITS, LONG-TERM AND SHORT-TERM EMPLOYEE BENEFITS

Defined benefit plans

Under the defined benefit plans, the amount that an employee will receive on retirement is defined by reference to the
employee's length of service and final salary. The legal obligation for any benefits remains with the Company, even if plan assets
for funding the defined benefit plan have been set aside. Plan assets may include assets specifically designated to a long-term
benefit fund as well as qualifying insurance policies. Defined benefit plans include gratuity, provident fund, leave encashment,
post-retirement medical benefit, long service awards and other retirement benefit plans.

The liability recognised in the statement of financial position for defined benefit plans is the present value of the Defined Benefit
Obligation (DBO) at the reporting date less the fair value of plan assets.

Management estimates the DBO annually with the assistance of independent actuaries using the projected unit credit method.
Remeasurements, comprising of actuarial gains/losses, the effect of the asset ceiling, excluding amounts included in net defined
benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through included
in other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in
subsequent periods.

The current service cost is recognized in the statement of profit and loss under 'employee benefits expense'.

Net interest which is recognized in the statement of profit and loss under 'employee benefits expense' represents the net
change in present value of plan obligations and the value of plan assets resulting from the passage of time, and is determined
by applying the discount rate to the present value of the benefit obligation and to the fair value of plan assets at the beginning
of the year, taking into account expected changes in the obligation or plan assets during the year.

Other long-term benefits

The liabilities for leave (earned and half pay leave) not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. The Company has secured these liabilities against the plan assets.
The liability is recognised in the statement of financial position basis the present value of expected future payments to be made
in respect of services provided by employees upto the end of reporting period (using the projected unit credit method) less the
fair value of plan assets.

Liability in respect of long-service awards is recognised in the statement of financial position basis the present value of expected
future payments to be made in respect of services provided by employees up to the end of reporting period (using the projected
unit credit method).

Short-term employee benefits

Short term benefits comprising of employee costs such as salaries, bonus etc. are accrued in the year in which the associated
service is rendered by employees.

Defined contribution plans

Contributions with respect to pension scheme and superannuation fund are made to the trust set-up by the Company for
the purpose and are charged to the statement of profit and loss, when employees have rendered service entitling them to
the contributions.

Other benefits

Voluntary retirement expenses are charged to statement of profit and loss in the year of its incurrence.

V. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.

W. NON-CURRENT ASSETS HELD FOR SALE

Non-current assets are classified as held for sale if their carrying amount is intended to be recovered principally through a sale
(rather than through continuing use) when the asset is available for immediate sale in its present condition subject only to terms
that are usual and customary for sale of such asset and the sale is highly probable is expected to qualify for recognition as a
completed sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at lower of their carrying amount and fair value less cost to sell. The
determination of fair value less cost to sell includes use of management estimates and assumptions.

Non-current assets are not depreciated or amortized while they are classified as held for sale.

X. RECENT ACCOUNTING PRONOUNCEMENT

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1,2024. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.

Y. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY

Significant management judgements

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about
the recognition and measurement of assets, liabilities, income and expenses, accompanying disclosures (including disclosure of
contingent liabilities).

The following are significant management judgements in applying the accounting policies of the Company that have the most
significant effect on the financial statements.

Revenue - For Lumpsum services and Turnkey Contracts, the Company recognises revenue using the percentage completion
method. Use of the percentage completion method requires the Company to estimate the cost incurred relative to total expected
cost to the satisfaction of performance obligation. This requires estimates to be made of the outcomes of long-term construction
and service contracts, which require assessments and judgements to be made on changes in work scopes, balance efforts, cost
and time to complete the contract including probability of levy for liquidated damages and price reduction for delay to the
extent they are probable and they are capable of being reliably measured. Cost and time incurred have been used to measure
progress towards completion as there is a direct relationship between input and satisfaction of performance obligation.

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of
the probability of future taxable income against which the deferred tax assets can be utilized.

Property lease classification as a lessor- The Company has entered into leases for office/residential premises. The Company
has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting
a major part of the economic life of the commercial property and the present value of the minimum lease payments not
amounting to substantially all of the fair value of the commercial property, that it retains substantially all the risks and rewards
incidental to ownership of these properties and accounts for the contracts as operating leases.

Estimation uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets,
liabilities, income and expenses is provided below. Actual results may be substantially different.

Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed over expected
life, the management assesses the expected credit loss on outstanding receivables and advances.

Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of critical underlying assumptions
such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses. The
assumptions for each plan are reviewed annually and adjusted if necessary.

Provisions - At each balance sheet date, based on the management judgment, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding warranties and guarantees. However, the actual future outcome
may be different from this judgement.

Determination of functional currency- The Company has determined that INR is the functional currency as a substantial
amount of its revenue and cost is in INR.

Determination of Materiality- Ind AS requires assessment of materiality by the Company for accounting and disclosure of
various transactions in the financial statements. Accordingly, the Company assesses materiality limits for various items for
accounting and disclosures and follows on a consistent basis.

Nature and purpose of other reserves
General Reserve

General Reserve is created out of the accumulated profits of the Company as per the provisions of Companies Act.

Capital Redemption Reserve

The Company has Created Capital Redemption Reserve out of free reserves, a sum equal to the nominal value of the shares purchased
transferred to the capital redemption reserve account.

Retained Earnings

Retained Earnings (excluding accumulated balance of remeasurement of Defined Benefit Plans) represents surplus/ accumulated
earnings of the company and are available for distribution to Shareholders.

CSR Activity Reserve

The Company is required to create the CSR Activity Reserve for the allocation of expenses in respect of CSR activities. CSR Activity
Reserve represents unspent amount, out of amounts set aside of profit earned in the past years for meeting social obligations as per
Department of Public Enterprise guidelines for Corporate Social Responsibility and provisions of the Companies Act, 2013 and rules
made thereunder.

Corpus for Medical Benefits for Employees retired prior to 01.01.2007

The Company has created separate corpus of medical benefits to retired employees who have retired prior to 01.01.2007 in terms
of DPE guidelines.

Other Comprehensive Income (OCI)

Other comprehensive income represents balance arising on account of translation of foreign operation and gains/(loss) from
investments in equity instruments designated at fair value.

Investment in mutual funds are valued at fair value through P&L at each Balance Sheet date.

Investment in subsidiaries, associate and joint venture are measured at cost as per Ind AS 27, 'Separate financial statements'.

Investment in other than subsidiaries, associates, joint ventures and mutual funds are valued at fair value through OCI at each
Balance Sheet date.

The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates.

(ii) Risk management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall
responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

(A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit
risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost.
The Company continuously monitors defaults of customers and other counterparties and incorporates this information
into its credit risk controls.

a) Credit risk management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date

B: Moderate credit risk

C: High credit risk

b) (i) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ appeal

filed before Hon'ble Karnataka High Court against VAT Assessment Order of Deputy Commissioner of Commercial
Taxes dated 29th July 2016 levying tax of H 5,015.47 Lakhs (including interest and penalty) (previous year 31st March
2024: H 4,777.74 Lakhs including interest and penalty) for the financial year 2009-10.

(ii) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ
appeal filed before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy Commissioner of
Commercial Taxes dated 14th March 2017 levying tax of H 40,452.56 Lakhs (including interest and penalty) (previous
year 31st March 2024: H 38,472.56 Lakhs including interest and penalty) for the financial year 2010-11.

(iii) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ
appeal filed before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy Commissioner of
Commercial Taxes dated 25th March 2019 levying tax of H 893.27 Lakhs (including interest and penalty) (previous year
31st March 2024: H 841.87 Lakhs including interest and penalty) for the financial year 2013-14.

(iv) The Company has filed writ petition before Hon'ble Karnataka High Court against the Proposition Notice issued by Asst.
Commissioner of Commercial Taxes dated 21st February 2019 for the financial year 2014-15. The Hon'ble Karnataka
High Court vide order dated 25th April, 2019 issued directions to commercial tax department not to enforce demand
order without leave of the court. However, the company received demand order dated 30th March, 2019 levying tax
of H 1,128.13 Lakhs (including interest and penalty) (previous year 31 March 2024: H 1,059.89 Lakhs including interest
and penalty) on 2nd May, 2019.

(v) The Company has filed writ petition before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy
Commissioner of Commercial Taxes dated 30th September 2020 levying tax of H 824.02 Lakhs (including interest and
penalty) (previous year 31st March 2024: H 770.78 Lakhs including interest and penalty) for the financial year 2015-16.

(vi) The Company has filed writ petition before Hon'ble Karnataka High Court against the VAT Assessment Order of
Deputy Commissioner of Commercial Taxes dated 27th April 2021 levying tax of H 71.24 Lakhs (including interest and
penalty) (previous year 31st March 2024: H 65.81 Lakhs including interest and penalty) for the financial year 2016-17.

(vii) The Company has filed writ petition before Hon'ble Delhi High Court against the order dated 30.04.2024 issued u/s
73 of CGST Act, 2017 by GST Officer of Department of Trade and Taxes Delhi for FY 2018-19 with tax demand of H
3,261.38 Lakhs (including Interest and Penalty) on the grounds of limitation. The company has also filed appeal before
GST Appellate Authority against the above order on merits.

(viii) The Company has filed appeal before Assam GST Appellate Authority against the order dated 30.04.2024 issued u/s
73 of CGST Act, 2017 by Deputy Commissioner of State Tax, Assam for FY 2018-19 with tax demand of H 3.19 Lakhs
(including Interest and Penalty).

In terms of the contract(s) entered into with the client, the liability as referred to S.no. (i) to (vi) above shall be reimbursed
by the client whenever, it reaches to its finality.

In respect of above contingent liabilities, it is not probable to estimate the timing of cash outflow, if any, pending the
resolution of Arbitration/Appellate/Court/assessment proceedings.

B. Commitments:

a) Property, plant and equipment - estimated amount of contracts remaining to be executed on capital account (net of
advances) and not provided for amount to H 6,171.95 Lakhs (inclusive of taxes wherever applicable) (previous year 31
March 2024: H 9,649.31 Lakhs (inclusive of taxes wherever applicable)).

b) The Company's estimated share in work programmes committed under production sharing contract and Field development
plan in respect of oil & gas exploration blocks as on 31 March 2025 is H 3,620.46 Lakhs (previous year 31 March 2024: H
3,739.28 Lakhs).

c) Commitment towards Right issue of equity shares w.r.t. M/s Numaligarh Refinery Limited is H 3,457.75 Lakhs (Previous year
31st March 2024: H 6,915.50 Lakhs).

The company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue.

A receivable is a right to consideration that is unconditional upon passage of time. Trade receivable and unbilled revenue are
presented net of impairment in the Balance Sheet.

Revenues in excess of Invoicing is recorded as unbilled revenue (contract assets) and is classified as a financial asset. Revenue
recognition for Lump sum services and Turnkey contracts is based on percentage of completion method based on cost progress.
Invoicing to the clients is based on milestones as defined in the contract. Revenue from Cost plus and rate plus jobs are recognized
when the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as
unbilled revenue.

Invoicing in excess of earnings are classified as Income received in advance (contract liabilities) and is classified as other
current liabilities.

During the year ended 31 March 2025 and 31 March 2024, H 31,689.83 Lakhs and H 29,529.29 Lakhs of Contract assets (unbilled
revenue) as of 1 April 2024 and 1 April 2023 respectively has been reclassified to Trade receivables upon billing to customers.

Types of warranties and related obligations

The company is executing consultancy and engineering services and turnkey contracts. The company is providing provision for
estimated liabilities on account of guarantees and warranties etc. in respect of consultancy and engineering services and turnkey
contracts executed by the Company. The said obligation covers performance as well as defect liability period defined in the
respective contracts.

For turnkey contracts, the estimated liability on account of contractual obligations is provided at 1% of revenue recognized based
on risk assessment made by the management. For consultancy and engineering services contracts the estimated liability on account
of contractual obligations is provided as per assessment of probable liability made by the management based on liability clauses in
respective contracts.

a) TEIL Projects Limited ('TEIL')

A joint venture with Tata Projects Limited was formed in the financial year 2008-09 for pursuing projects on engineering
procurement and construction basis (EPC Projects) in selected sectors such as oil and gas, fertilizers, steel, railways, power and
infrastructure.

TEIL has been formed in this regard having its Registered Office at New Delhi has an Authorized capital of H 1,500 Lakhs (Previous
year 31 March 2024: H 1,500 lakhs) and Issued, Subscribed and Paid-up capital of H 1,100 lakhs (Previous year 31 March 2024:
H 1,100 lakhs).

Of the issued, subscribed and paid-up capital, 5,500,000 shares of H 10 each fully paid-up amounting H 550.00 lakhs (previous
year: 31 March 2024 H 550.00 lakhs) are held by the Company, being 50% of paid-up capital of TEIL.

In the financial year 2015-16, it was decided to wind up TEIL and in this regard liquidator has already been appointed on 29 July
2016 and liquidation proceedings are in progress as per provisions of Companies Act.

Till 31 March 2021, the Company's share of negative 'other equity' of H 541.61 Lakhs has been accounted for as impairment in
value of investment.

During the current financial year 2024-25, TEIL had a net loss of Nil.

During the year 2020-21, H 8.39 lakhs towards final distribution of remaining funds of TEIL on account of return of Share capital
of company has been received by the company.

b) Ramagundam Fertilizers and Chemicals Limited ('RFCL')

The Company has, along with National Fertilizers Limited (NFL) and Fertilizer Corporation of India Limited (FCIL) incorporated a
joint venture for setting up and operation of a gas based urea and ammonia complex in February 2015 namely Ramagundam
Fertilizers and Chemicals Limited ('RFCL') having registered office in Delhi.

The Company has Authorized share capital of H 200,000 Lakhs (previous year: 31 March 2024: H 200,000 Lakhs) consisting 20,000
Lakhs (Previous year: 31 March 2024: 20,000 Lakhs) equity shares of face value of H 10 each.

The Shareholding of the RFCL, on the finalisation of project cost and requirement of equity for funding the project cost shall be
in the following proportion:

Engineers India Limited (EIL): 26%

National Fertilizers Limited (NFL): 26%

The Fertilizer Corporation of India Limited (FCIL): 11%

State Government of Telangana: 11%

GAIL (India) Limited: 14.30%

HT Ramagundam A/c : 3.90%

Danish Agribusiness Fund IK/S: 3.90%

Investment Fund for Developing Countries: 3.90%

RFCL has entered into concession agreement with FCIL on 23 March 2016 towards award of rights and concession to the
RFCL in regard to facility area (Lease hold land admeasuring approximately 1284 acre) for financing, designing, engineering,
procurement, construction, development, operation and maintenance of the project.

In terms of Shareholders agreement (SHA), FCIL is to be issued equity shares equal to 11% of equity portion of the capital
expenditure of the project. During the Financial year 2020-21 project cost estimate was revised to H 6,33,816.00 Lakhs to be
funded through equity of H 1,89,025.00 Lakhs and accordingly total equity issuance to FCIL based on revised project cost is
H 20,793 Lakhs.

RFCL has coordinated with FICC and rectified the inadvertent error in January 2025 for FY 2022-23. Based on the revised data
submitted by RFCL, GAIL (India) Ltd. in consultation with FICC has issued a debit note to RFCL for FY 2022-23 for H 4,507.28 lakh
(Company Share H 1,171.89 Lakhs) and such cost is being debited to opening reserves and as result balance recoverable from
gas pool is got reduced by the same amount. Consequent to above, subsidy income for FY 2022-23 is got revised and subsidy
income excess recognized for H 125.49 lakh (Company Share H 32.63 lakhs) is being reversed during the year and debited to
opening reserve and as a result, trade receivable are restated to that extent. Since the error was related to period prior to
31/3/2023, opening reserve as of 1/4/2023 is debited for H 3466.79 lakh net of Deferred Tax H 1165.98 lakh (Company Share
H 901.37 lakh). Since the error was detected during FY 2024-25 RFCL has restated its financial statements as on 31.03.2024
and 01.04.2023.

c) LLC Bharat Energy Office ('BEO') -Associate Company

During the financial year 2021-22, the Company along with ONGC Videsh Singapore Pte. Ltd., GAIL (India) Limited, IOCL
Singapore Pte. Ltd. and Oil India International Pte. Ltd. having participating interest of 20% each has incorporated a Limited
Liability Company namely LLC Bharat Energy Office in Russia to facilitate liaising with the Russian petroleum industry and to
monitor the existing investments.

During the financial year 2021-22, company has contributed its 20% contribution amounting to H 75.97 Lakhs.

Till financial year ended 31 March 2025, the Company had incurred losses to the tune of RU 1,59,85,000 (Previous year 31 March
2024 : RU 2,37,06,000) of which the Company's share is RU 31,97,000 (equivalent Indian H 30.69 Lakhs) (Previous Year 31 March
2024: RU 47,41,200 (equivalent Indian H 47.77 Lakhs)).

Note- 48

Employee benefits
Defined Contribution Plan

Superannuation Fund

The Corporation has Superannuation - Defined Contribution Scheme (DCS) maintained by "Superannuation Pension Trust" wherein
Employer makes a monthly contribution of a certain percentage of 'Basic salary and Dearness Allowance (DA)', out of 30% earmarked
for various superannuation benefits. This is in accordance with the Department of Public Enterprises (DPE) guidelines. These
contributions are credited to Individual Employee's Account maintained with the trust managed by Life Insurance Corporation of
India (LIC) or an optional National Pension Scheme (NPS) account. For the financial year 2024-25, the corporation has made an overall
contribution of H 5,641.83 lakhs (previous year 31 March 2024 ; H 5,437.80 lakhs) towards Superannuation -DCS by charging it to
statement of Profit and Loss.

Employee Pension Scheme (EPS-95)

During the year, Corporation has recognised H 307.74 lakhs (previous year 31 March 2024; H 321.49 Lakhs) as contribution to Employee
Pension Scheme (EPS-95) in the statement of Profit and Loss.

Defined Benefit Plan

Company is having the following Defined Benefit Plans:

• Gratuity (Funded): Each employee rendering continuous services of 5 years or more is entitled to receive gratuity amount

based on completed tenure of service subject to maximum of H 20 lakhs at the time of separation from the company.

• Leave encashment (Funded): The employees of the company are entitled for Earned and Half pay leave as per the

approved company Rules.

• Provident Fund (Funded) ¹: The employee benefit of PF is administered through a separate irrevocable Employees Provident
Fund Trust for managing the Provident Fund accumulation of employees. The company's contribution towards Provident Fund
is remitted to this trust based on a fixed percentage of eligible employee's salary. During the year, an application for surrender
for EIL PF Trust has been filed by the Company with EPFO which is under process.

• Long Service Awards (Unfunded): EIL has formulated a long service award scheme, wherein the employees are recognized on
completion of number of prescribed years of service. The long service award scheme is a symbolic gesture for rewarding loyalty
& belongingness demonstrated by employees who stayed for long years with the Company.

• Other benefits on Retirement (Unfunded): Other benefit is allowed to employees to facilitate them to settle down
upon retirement.

• Shortfall of net income of trust below government specified minimum rate of return, if any, and loss to the trust due to its
investments turning stressed are being made good by the Company. Out of the investments made by PF Trust in the past, some
issuers of securities have defaulted in interest payments and / or principal repayments. Company, as principal employer under the
Provident fund regulations has made good the loss in value of these investments.

In this regard, Actuarial valuation as on 31 March, 2025 was carried out by the Actuary to find out value of Projected Benefit Obligation
of the Company towards Provident Fund. The present value of benefit obligation for the period ended 31 March 2025 is H 1,98,498.03
lakhs (Previous year 31 March 2024: H 1,92,720.10 lakhs). The fair value of the assets of Provident Fund trust as of balance sheet date
is greater than the present value of benefit obligation. The Company has net surplus of H 9,418.57 lakhs (previous year 31 March
2024: H 8,687.05 lakhs) determined through actuarial valuation. Accordingly, Company has not recognised surplus as an asset, and
the remeasurement loss/gain in 'other Comprehensive Income' other than loss due to stressed Investment, as these pertains to
Provident Fund Trust and not to the company.

During the year, Company has recognised loss of H 758.10 Lakhs (previous year 31 March 2024: H 1,423.23 Lakhs) in the statement of
profit and loss and H (129.45) lakhs (previous year 31 March 2024: H 24.25 lakhs) in Other Comprehensive Income towards provident
fund expenditure for impairment on account of Provident Fund Trust investment.

*Changes in Defined benefit obligation due to 1% Increase/Decrease in Mortality Rate, if all other assumptions remain
constant is negligible.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined obligation has been calculated using
the projected unit credit method at the end of the report period, which is the same as that applied in calculating the defined
benefit obligation liability recognised in the statement of financial position.

There is no change in the method of the valuation for the prior period. For change in assumption please refer to table (f) above,
where assumptions for prior period are given.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined obligation has been calculated using
the projected unit credit method at the end of the report period, which is the same as that applied in calculating the defined
benefit obligation liability recognised in the statement of financial position.

There is no change in the method of the valuation for the prior period. For change in assumption please refer to table (e) above,
where assumptions for prior period, if applicable, are given.

Note - 49

The Company has entered into Production Sharing Contracts with Government of India along with other partners for Exploration
and Production of Oil and Gas. The Company is a non-operator and is having following participating interest in the ventures. The
Company would share Expense/Income/Assets/Liabilities of the ventures on the basis of its percentage in the production sharing
contracts. The detail of the Company's interest in blocks is as under:

Segment revenue with major customers

During the year ended 31 March 2025, H 57,934.25 Lakhs (Previous year 31 March 2024: H 38,002.12 Lakhs) of the Company's revenues,
each individually exceeding 10% in the consultancy and engineering projects segment was generated from three (previous year 31
March 2024: two) customers.

During the year ended 31 March 2025, H 1,26,053.65 Lakhs (Previous year 31 March 2024: H 1,70,262.76 Lakhs) of the Company's
revenues, each individually exceeding 10% in the turnkey projects segment was generated from two (Previous year 31 March 2024:
three) customers.

Note - 51

The turnover and profit from operations for the year ended 31 March 2025 includes H 12,891.14 Lakhs and H 11,226.95 Lakhs
respectively on account of impact of variable consideration accounted for in Consultancy and Engineering Projects segment.

Note - 52

The company in the month of April 2016 terminated a contract, consequent to receipt of findings of investigating agency that
certificate submitted by the contractor for qualifying the contract was bogus. The facts in this regard including lodging of claim,
subsequent to termination of contract had been disclosed in the annual account from financial year 2015-16.

Subsequent to the termination of contract, the company is completing the project at the risk and cost of contractor in terms of
provisions of the contract. Contractor has gone into arbitration and had submitted arbitration notice and as such Arbitral Tribunal
had been constituted. Contractor had filed its statement of claim amounting to H 40,960.75 Lakhs. EIL had also filed its reply along
with its counter claim for H 12,907.15 Lakhs and application to implead the parent company of contractor, decision on which was
pending with the Arbitral Tribunal. Meanwhile, a third party creditor of the contractor has filed an application with NCLT under
Insolvency and Bankruptcy Code (IBC) and Insolvency Resolution Professional (IRP) has been appointed and arbitration proceedings
have been stayed sine die. EIL has filed its claim against the contractor with the IRP. Hon'ble Supreme Court, on the application of
contractor, has stayed the Resolution proceedings. The company has approached Arbitral Tribunal and NCLT for revival of its counter
claims wherein company has been directed to approach the appropriate forum and accordingly company has filed an impleadment
application before the Hon'ble Supreme Court. The management does not consider any possible obligation on this account requiring
future probable outflow of resources of the company.

During the year 2001, one of Clients had invited bids for carrying out certain works at its Bombay High Off-shore Exploration Site. The
entire work consisted of a number of activities, including survey, design, engineering, procurement, fabrication, transportation and
commissioning of two well head platforms with associated equipment.

For submission of the said bid, the company had entered into Business Cooperation Agreement (BCA) with sub-contractor & Vendor
(which are "Group Companies") and accordingly these Group Companies, in accordance with their respective scope of works, valued
and classified the platforms and submitted the same to company for inclusion in its price bid to Client. The process of classification
and valuation of platforms and calculation of corresponding customs duty were done by Group Companies as per their scope of work.
Customs Duty element as submitted by the Group Companies, had simply been incorporated by the company in its price bid to Client.

During FY 2002-03, the Contract was awarded to the Company by the Client. Out of the entire scope of work under the above Project,
the Company issued a Purchase Order for supply of the Platforms along with jackets, piles and other material , and sub-contracted
transportation and installation works, on back to back basis, to vendor and sub-contractor respectively (above mentioned Group
Companies) which constituted approximately 95% of the entire scope of work.The custom duty amount was included in the Sub¬
contract as also in the main contract with client as worked out by Group Companies themselves.

Group Companies represented to the company and persuaded that it was not possible for them to become the consignee for the
subject materials and to avoid any delay in the execution of the project it would be prudent and expedient to mention the name of
the company as the consignee for the subject material (Though as per the express contractual stipulation it was Group Companies
who had to assume the role & responsibility of the consignee of the goods). Further they represented that they do not have IEC Code
and hence, they could not have imported the goods and there would not be sufficient time for them to get such a code to enable
imports. Believing the aforesaid advice to be bonafide and true and that company being the importer would aid speedy and prompt
clearance of the Goods, Company agreed to become the Consignee.

A Show Cause Notice was issued by Custom authorities to the Group Companies and the Company on account of misclassification
and undervaluation of equipment's at the time of import for the above said Project of Oil Well Platform. On account of non¬
cooperation by the Group Companies, (who had actually carried out the classification and valuation), in replying to the Show Cause
Notice, the Company was constrained to approach the Custom and Central Excise Settlement Commission in the FY 2006-07. During
the Settlement Commission proceedings, which was also participated in by the Group Companies, on account of noncooperation
of the latter, Company was constrained to admit the liabilities to the tune of H2,309.80 Lakhs. During the FY 2007-08, Custom and
Central Excise Settlement Commission passed Final Order determining the total Differential Custom Duty liability at H4,277.21 Lakhs
with Interest@ 10% per annum thereon and Penalty of H10 Lakhs. The total amount of H6,224.20 Lakhs (H 4,277.21 Lakhs towards
differential custom duty and H1,946.99 Lakhs towards Interest & Penalty) was deposited during the FY 2007-08 and accounted for
during the FY 2006-07 & FY 2007-08.

In terms of agreements entered into by the Company with the Group Companies, Custom Duty was to be borne by the Group
Companies and they were required to indemnify the Company for any liabilities in this respect and accordingly the Company invoked
the indemnity clause and paid the Differential Custom Duty from the retention monies of the Group Companies along with some
additional amount from its own account. The Group Companies raised disputes on their obligations on this account and invoked
arbitration clause under the sub-contract and Purchase Order. The Company has also lodged its Counter-Claim on the Group
Companies for recovery of differential Custom Duty Liability as detailed above.

During the FY 2011-12, the Arbitral Tribunal awarded an amount of $1,26,47,033 plus applicable interest in favour of the Group
Companies. The Company, aggrieved by the arbitral award and considering the legal opinion obtained in this respect, filed a challenge
petition before the Hon'ble High Court of Delhi against the said arbitral award in its entirety.

In the financial year 2021-22, in the appeal filed by the Company, Hon'ble High Court of Delhi gave interim order directing the
Company as follows:-

1. The Court gave interim direction to the Company to deposit the Awarded Amount with the Registrar General of the Court.
Subject to the said deposit being made by the Company, the enforcement of the award shall be stayed.

2. The Court further directed that if the award amount is deposited, the same shall be released to Group Companies against an
unconditional Bank Guarantee equivalent to 105% of the amount, to the satisfaction of the Registrar General of the Court.

3. In the event the Company prevails in its challenge against the Arbitral Award which is currently sub-judice and being heard
by the Court, any amount collected by the Group Companies from Registrar General of the Court shall be refunded to the
Company along with interest at the rate of 10% per annum.

The interim order was challenged before Supreme Court by the Company, however the Supreme Court has not intervened. Therefore,
in compliance to the directive of Hon'ble High Court of Delhi, an amount of H 16,476.20 Lakhs (awarded amount of $1,26,47,033 plus
applicable interest) was deposited by the Company with the Registrar General of Hon'ble High Court of Delhi on 18th May 2022.
However the main challenge petition filed by the Company against the arbitral award is subjudice and being heard by Hon'ble Court.

Pending final disposal of the challenge petition by the Hon'ble Court, considering the provisions of Ind AS 37 'Provisions, Contingent
Liabilities and Contingent Assets' and Material Accounting Policies of the Company, H 6,848.03 lakhs (H 6,848.03 lakhs FY 2023-24) has
been disclosed as contingent liability (Note-40) and H 9,628.17 lakhs has been recognized in the books of accounts in earlier years.

Nature of provisions:

A) Contractual Obligations :

Contractual obligations represent provision for estimated liabilities on account of guarantees and warranties etc. in respect of
consultancy and engineering services and turnkey contracts executed by the Company. The said obligation covers performance
as well as defect liability period defined in the respective contracts.

For turnkey contracts, the estimated liability on account of contractual obligations is provided at 1% of revenue recognized
based on risk assessment made by the management. For consultancy and engineering services contracts the estimated liability
on account of contractual obligations is provided as per assessment of probable liability made by the management based on
liability clauses in respective contracts.

During the year, pursuant to settlement of performance obligation with Client in Consultancy & Engineering Project Segment,
the contractual obligation in respect thereof amounting of H 8,253.93 lakhs has been written back.

B) Expected Losses:

For each contracts, at reporting date, total contract cost and total contract revenue are estimated. In respect of contracts, where
it is probable that total estimated contract cost will exceed the estimated total contract revenue, the expected loss is recognised
as an expense in the statement of Profit and Loss.

C) Impairment in PF Trust Investment:

The employee benefit of PF is administered through a separate EIL Employees Provident Fund Trust. Out of the investments
made by PF Trust in the past, some issuers of securities have defaulted in interest payments and / or principal repayments.
During the year, the company has made all payment to EIL PF trust on account of defaulted securities including amortised value
of defaulted securities pending as on 31.03.2025, amounting to H 12,172.29 lakhs.

Note - 57

In terms of DPE Guidelines, on increase of Dearness allowance to the tune of 50%, the gratuity ceiling shall enhance by 25%.
Superannuation benefits which includes Gratuity, Post-Superannuation Medical Scheme, Provident Fund and Defined Contribution
Superannuation Scheme are to be met from 30% of Basic pay plus Dearness allowance. The company has recognised the proportionate
increase in gratuity ceiling corresponding to Dearness allowance as on 31 March 2025 based on actuarial valuation. To the extent
of the impact of such an increase of H 820.58 Lakhs (previous year 31 March 2024: H 518.96 Lakhs), the corresponding Defined
Contribution Superannuation Scheme to the employees has been reduced to meet the Superannuation benefits within 30% of Basic
Pay plus Dearness allowance as per DPE Guidelines.

Note - 58

Remuneration to Chairman and Managing Director and full time Directors are as per their appointment letters from the Ministry of
Petroleum and Natural Gas, Government of India, New Delhi. They are also allowed to use the staff car for private journeys up to a
ceiling of 1000 kms per month.

The statement of profit and loss account includes research and development revenue expenditure of H 2,321.85 Lakhs (previous year
31 March 2024: H 2,107.72 Lakhs). The capital expenditure of research and development assets is H 357.52 Lakhs (previous year 31
March 2024: H 804.46 Lakhs).

Note - 60

Capital Grant in respect of Research projects:

During the year, the company has not received any capital grant. In respect of Capital grants received in earlier years towards
procurement/setting up of Capital assets for research project undertaken, the unamortized capital grant amount as on 31
March 2025 is of H 27.46 Lakhs (previous year 31 March 2024: H 30.42 Lakhs). During the year, the Company has recognised
H 2.96 Lakhs (previous year: H 4.29 Lakhs) in the statement of profit and loss as amortisation of capital grants.

Note - 61

There is no impairment of cash generating assets during the year in terms of Indian Accounting Standard (Ind AS-36)
"Impairment of Assets".

Note - 62

a) The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year 2024 -25.

b) The company has not been declared wilful defaulter by any bank or financial institution.

c) The working capital and non-fund based facilities from banks are secured by hypothecation of stocks, book debts and other
current assets of the Company, both present and future. The company is availing non fund based facilities from the banks and
furnishing statement of security as and when required by the bankers, more particularly at the time of renewal exercise i.e. on
yearly basis. Statement of security filed by the company with banks is in agreement with the books of account.

d) There are no pending charges which is yet to be registered with Registrar of Companies (ROC) as on 31 March 2025 with respect
to the Non fund based facilities availed by company.

Note - 63

For lump-sum services and turnkey contracts, balance efforts, cost and time to complete the contract including probability of levy
for liquidated damages and price reduction schedules for delay as on reporting date are assessed by the management and relied
upon by the auditors.

Note - 64

The balances of trade receivables, loans and advances, customer's advances, retention money, security deposits receivable/payable
and trade payables are subject to confirmation and reconciliation.

Note - 65

The Company has classified non- current assets including old residential flats as Assets held for sale which is under the process of
disposal and is expected to be completed in the financial year 2025-26 based on the fair value as determined as approved by the
competent authority in this regard. The Company expects that the fair value less costs to sell is higher than the carrying amount.

Note - 66

Corporate social responsibility expenses

The requisite disclosure relating to CSR expenditure in terms on amended Schedule III of the Companies Act and Guidance Note on
Corporate Social Responsibility (CSR) issued by the Institute of Chartered Accountants of India:

(1) Net Profit after taxes Non-cash operating expenses (Depreciation) Interest other adjustments like loss on sale of
Fixed assets etc.

(2) Tangible Net worth Lease liabilities deferred tax liabilities

* Decrease in Assets taken on Lease has resulted in decrease in ratio.

** Decrease in Purchase of Services and other expenses and Increase in Average Trade payable leads to variation in ratio.

***Decrease in Revenue and Increase in Working capital leads to variance in Net Capital Turnover Ratio.

# Increase in Net profit leads to increase in Ratio.

Note - 69

Previous year's figures have been regrouped/reclassified wherever necessary to make them comparable to the figures of
the current year.

For Datta Singla & Co. For and on behalf of Engineers India Limited

Chartered Accountants
FRN No. 006185N

sd/- sd/- sd/- sd/- sd/-

Vishakha Harit Suvendu Kumar Padhi R P Batra Sanjay Jindal Vartika Shukla

Partner Company Secretary E.D. [F&A] Director [Finance] & CFO Chairman & Managing Director

Membership No. 096919 PAN : AHYPP2198P PAN : AHPPB4262M DIN : 09223617 DIN : 08777885

Place : New Delhi
Date : 29th May 2025

1

Post-Retirement Medical Benefits (Funded): PRMB scheme provides medical coverage to retired employees and their eligible
dependent family members.