\documentclass[12pt]{report}
\usepackage{amssymb,graphicx,amsfonts,psfrag}

\newcommand{\e}{\mathrm{e}}                       
\renewcommand{\d}{\mathrm{d}}          % infinitesimal d
\newcommand{\x}{\mathrm{x}}            % vector x
\renewcommand{\u}{\mathrm{u}}          % vector u

\begin{document}
\section{One}
\subsection{One.one}
A latex shell file: Some text, an equation $u(0)=1$

\begin{equation}
{{\partial u}\over{\partial t}}=\nabla^2 u \int_0^\infty f(u,a)\d a ,
\end{equation}

see figure \ref{figurea}

\begin{figure}
\begin{center}
\includegraphics[scale=0.6]{test.eps} %use your file name here
\end{center}
\caption{A caption}
\label{figurea}
\end{figure}
\end{document}

