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Electrotherm (India) Ltd.

BSE: 526608 Sector: Metals & Mining
NSE: ELECTHERM ISIN Code: INE822G01016
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VOLUME 260
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OPEN 72.30
CLOSE 71.15
VOLUME 260
52-Week high 170.00
52-Week low 69.00
P/E
Mkt Cap.(Rs cr) 92
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Electrotherm (India) Ltd. (ELECTHERM) - Auditors Report

Company auditors report

To

The Members of Electrotherm (India) Limited.

Report on the audit of the Standalone Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of Electrotherm(India) Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone financial statements including a summaryof significant accounting policies and other explanatory information (hereinafter referredto as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us read with the notes to accounts except for the effects of the matterdescribed in the Basis for Qualified Opinion section of our report the aforesaidstandalone financial statements give the information required by the Companies Act 2013as amended (the "Act") in the manner so required and give a true and fair viewin conformity with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of afi• airs of the Company as at March 31 2022 and its Loss totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Qualified Opinion

We draw attention to Note No. 37(b) of non- provision of interest on NPA accounts ofbanks on approximate basis of Rs.213.81 Crore for the year under consideration and thetotal amount of such unprovided interest till date is Rs.1435.54 Crore. The exact amountsof the said non provisions of interest are not determined and accordingly the amount ofNet Loss for the year is understated by Rs.213.81 crore and the amount of Bank/ARCliability and Total retained earnings/(loss) as on March 312022 is understated byRs.1435.54 crore. Our audit reports for the previous year ended March 31 2021 was alsoqualified in respect of this matter.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Companies Act 2013("the Act"). Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatement.

Emphasis of Matter

We draw attention to the following Notes of Statement of Standalone Audited FinancialStatements of the Company:-

(a) Note No 36 in respect of defaults & recovery proceedings against the companyand for the treatment in the books of account of the assignment/settlements of debts ofvarious banks and the financial institutions.

(b) Note No 15(c) in respect of non-payment of Installments due to lender of the loanfor the period from December 31 2019 to March 31 2022 and Interest due for the periodfrom September 30 2020 till March 31 2022 and requested all lenders to allow furthermoratorium period for the said payments and the lenders are yet to confirm the revisedrepayment schedule.

(c) Note No 38(c) in respect of confirmation/reconciliation/regrouping andclassification of few accounts of "Trade Receivables" "TradePayable" "Bank and Loan accounts" "Advance from Customers"Advances Recoverable in Cash or Kind" and "Advance to suppliers and otherparties"

(d) Note No 36(a)(i)(f) in respect of Petition filed by Central Bank of India afinancial creditor under Section 7 of the Insolvency and Bankruptcy Code 2016 before theHonble National Company Law Tribunal (NCLT) Ahmedabad.

(e) Note No 32(a)(ix) and 40 in respect of pending litigations/cases and recoveryproceedings against the company and the Directors of the Company.

(f) Note No 8(d) in respect of pending appeal filed against order of Honble DRTAhmedabad for sale of property of the Wholly owned subsidiary Hans Ispat Limitednon-impairment of the investment value of the subsidiary company and provision of expectedcredit losses on the balances outstanding of the said subsidiary.

In our opinion in respect of the above Emphasis of Matter we do not provide anymodified opinion as these are not material/quantifiable/ relevant for the accountingpurpose for the year under consideration.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements for the financial yearended March 31 2022. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. In addition to the matter described inthe Basis for Qualified Opinion section we have determined the matters described below tobe the key audit matters to be communicated in our report.

Key Audit Matters (Other than those given in Basis for Qualified Opinion) How our audit addressed the key audit matter
Impairment of Investment in a subsidiary and non-recoverability of advances/trade receivables from said subsidiary (refer note 8(d) of the standalone financial statement) Our audit procedure included the followings:
The company has investment in subsidiary namely M/s Hans Ispat Limited amounting to Rs 36.46 Crore and has also made advances of Rs 62.06 Crore to the said subsidiary. Further the company has also had trade receivables outstanding of Rs 27.30 Crore for the goods sold to the said subsidiary. • We have obtained an understanding of management's processes with regard to identifying existence and testing the impairment in the value of investment non-recoverability of trade receivables and advances to the subsidiary.
• We have also obtained and verified the latest financial statements of the subsidiary regarding the present level of operations and profitability of the subsidiary.
There is a risk of impairment in carrying value of unquoted equity instruments in said subsidiary non-recoverability of advances and trade receivables made to the said subsidiary which have carrying accumulated losses and action by the Hon'ble Recovery Officer of the DRT which may be considered significant having regard to the financial position of the subsidiary. • We have also reviewed the DRT order for sale of the subsidiary property. Further action taken by the management and the lender has been described in Note No 8(d) of the Standalone Financial Statements.
• We have also reviewed the management's estimate of future operations which has been described in Note No 8(d) of the Standalone Financial Statements.
• Refer Para (f) in Emphasis of Matter.
• We read and tested the disclosures in the notes to standalone financial statements which are as per the relevant accounting standards.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's report Management Discussion and Analysis Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the StandaloneFinancial Statements and our auditors' report thereon. These reports are expected to bemade available to us after the date of this audit report.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read the other information identified above if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance as required under SA 720 'The Auditor's responsibilities Relating to OtherInformation. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for matter stated insection 134(5) of the Act with respect to the preparation and presentation of theStandalone Financial Statement that gives a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under Section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amendedincluding the Companies (Indian Accounting Standards) Amendment Rules 2019. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating efl• ectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the StandaloneFinancial Statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:-

• Identify and assess the risks of material misstatement of standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system with reference to financial statements inplace and the operating efl• ectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial Statement or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statement including the disclosures and whether the standalone financialstatement represents the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work: and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsfor the financial year ended March 31 2022 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

(A) As required by the Companies (Auditors' Report) Order 2020 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable for the year underconsideration.

(B) As required by Section 143(3) of the Act and read with the notes to accounts basedon our audit and the explanations given to us by the company we broadly report that: -

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet as at March 31 2022 the Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the Cash Flow and Statement of Changes inEquity for the year then ended dealt with by this report are in agreement with the booksof account;

(d) In our opinion the standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules2015 as amended;

(e) The matter described in 'qualified Opinion' and 'Emphasis of Matter' paragraphabove in our opinion may have an adverse effect on the functioning of the Company;

(f) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164(2) of theAct;

(g) With respect to the adequacy of the internal financial controls over financialreporting of the company with reference to these standalone financial statements and theoperating effectiveness of such controls refer to our separate Report in 'Annexure B' tothis report;

(h) The company has not paid any managerial remuneration to its directors and thus theprovisions of section 197 read with Schedule V of the Act are not applicable to theCompany for the year ended March 31 2022.

(i) With respect to the other matters to be included in the auditors' report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:-

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements- Please Refer Note No.32(a) 36 and 40 tothe Standalone Financial Statement;

ii. There are no long-term contracts including derivative contracts and accordingly noprovision is required to be made for any loss from the same;

iii. There is no fund which is pending to be transferred to the Investor Education andProtection Fund by the Company.

iv. (a) The management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in aggregate) have been received by theCompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11 of the Companies (Audit andAuditors) Rules 2014 as provided in (a) and (b) above contain any materialmisstatement.

v. The Company has not declared any dividend during the year.

For Hitesh Prakash Shah & Co
(Firm Regd. No: 127614W)
Chartered Accountants
Place: Ahmedabad Hitesh Shah
Date: May 30 2022 Partner
UDIN: 22124095AKHIRN4020 Membership No. 124095

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

Annexure A to Independent Auditor's Report of even date on the Standalone FinancialStatements of Electrotherm (India) Limited for the year ended on 31st March 2022.

(Referred to in paragraph A under 'Report on other legal and regulatory requirements'section of our report of even date to the members of Electrotherm (India) Limited)

i. In respect of the Company's Property Plant and Equipment and Intangible Assets:

(a) (A) The company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and the relevantdetails of right- of-use assets.

(B) The company has maintained proper records showing full particulars of intangibleassets.

(b) As informed to us the Company has a programme of physical verification of itsmajority of Property Plant and Equipment by which the Property Plant and Equipment areverified by the Management at periodic manner. In accordance with this programme PropertyPlant and Equipment of Engineering & Technologies division were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) According to the information and explanation given to us by the management andbased on the examination of property tax receipts and lease agreement(s) for assets onlease registered sale deed/transfer deed/conveyance deed provided to us we report thatthe title deeds of immovable properties (which are included under the Note 3 - 'PropertyPlant and Equipment') are held in the name of the Company as at the Balance sheet date.

(d) The company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

(e) According to the information and explanation given to us by the management noproceedings have been initiated during the year or are pending against the Company as atMarch 31 2022 for holding any benami property under the Benami Transactions (Prohibition)Act 1988 (as amended in 2016) and rules made thereunder.

ii.(a) The physical verification of inventory has been conducted at reasonableintervals by the management. In our opinion and as explained to us the frequency ofverification by the management is reasonable and the coverage and procedure for suchverification is appropriate. No discrepancies of 10% or more in the aggregate for eachclass of inventory were noticed on such verification.

(b) The Company has not been sanctioned or availed any new working capital loan duringthe year and therefore the said clause 3(ii) (b) of the Order is not applicable to thecompany.

iii. (a) The company has not made investments in provided any guarantee or security toany companies firm limited liability partnerships or any other parties covered in theregister maintained under section 189 of the Act. During the year the company has grantedloan secured or unsecured to such companies firm limited liability partnerships or anyother parties and its details are as follows:-

(A) Loan provided/Guarantee granted to subsidiaries joint venture and associates'concern:

- The company has not provided any such guarantee.

- The Company has granted loan in the nature of advances to the subsidiary of Rs. 38.79Crore. The balance outstanding as on March 31 2022 of the said loan is Rs.68.97 Crore.

(B) Loan provided/Guarantee granted to other parties (other than subsidiaries jointventure and associates concern:)

- During the year the company has not granted any loan to the other parties (other thansubsidiaries joint venture and associates). The balance outstanding as on March 31 2022of the loan is Rs. 0.16 Crore.

(b) As explained to us the terms and conditions of all advances in the nature ofloans; except unsecured advances considered as doubtful by the company; are notprejudicial to the company's interest.

(c) No schedule of repayment of principal and payment of interest in respect ofadvances in nature of loan has been stipulated and accordingly we are unable to makespecific comment on the regularity of repayment of principal and payment of interest. Theaggregate balance of such advances as on March 31 2022 is Rs. 69.13 Crore.

(d) As no schedule for repayment of principal and payment of interest has beenstipulated we cannot comment whether the amount is overdue for more than ninety days ornot. Further major of the advances in nature of loan has been considered as doubtful.

(e) No loan or advances in the nature of loan granted which has fallen due during theyear has been renewed or extended or fresh loans granted to settle the overdue ofexisting loans given to the same parties.

(f) The company has granted loans or advances in the nature of loans either payable ondemand or without specifying any terms or period of repayment and the aggregate amount ofsuch loan is Rs 69.13 crore and 100% thereof to the total loan granted. The aggregateamount of loans granted to promoters; related parties as defined in clause 76 of section 2of the Companies Act 2013 is Rs 69.13 crore.

The above amount does not include amount of additional interest after thedetermination of the aforesaid liability

iv. In our opinion and according to the information and explanation given to usprovisions of section 185 and 186 of the act in respect of loans to directors includingentities in which they are interested and in respect of loans given and investments madehave been complied with by the Company. The Company has not granted any guarantees &security in terms of section 185 and 186 of the Act.

v. In our opinion and according to the information and explanations given to usduring the year under consideration the Company has not accepted any deposits within themeaning of sections 73 to 76 of the Act and Companies (Acceptance of Deposits) Rules 2014(as amended). Accordingly the reporting under clause 3(v) of the Order are not applicableto the company.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete or not.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods and Service Tax Sales Tax Duty of Customs Cess and other material statutorydues as applicable with the appropriate authorities though there has been a slight delayin a few cases.

(b) There are no material undisputed amounts payable in respect of above dues whichwere in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.

(c) According to the information and explanations given to us and the records of theCompany examined by us following are the details of outstanding dues in respect of IncomeTax Goods and Service Tax Sales Tax service tax duty of customs duty of excise valueadded tax or cess etc which have not been deposited/adjusted/reversed on account ofdispute:-

Name of the Statue Nature of Dues Amount (Rs. In Crore) Period to which amount relates Forum Where Dispute is Pending
CENTRAL EXCISE ACT 1944 Excise duty 0.00 2005-06 Commissioner Central Excise
Excise duty 11.65 December-2005 to December-2008 CESTAT
Excise duty 175.00 April-2005 to March-2010 CESTAT
Excise duty (Advance Licence) 22.41 March-2011 to December-2011 High Court Gujarat
Excise duty 68.62 October-2007 to September-2012 Commissioner Central Excise
Excise duty 0.12 April-2008 to July-2011 CESTAT
Excise duty 57.38 April-2009 to March-2010 Commissioner Central Excise
Excise duty 6.82 February-2014 to March-2015 CESTAT
SUB TOTAL 342.00
FINANCE ACT 1944 SERVICE TAX 1.84 April-2007 to March-2008 Commissioner Central Excise
SUB TOTAL 1.84
CUSTOM ACT 1962 CVD 7.27 March-2011 to December-2011 CESTAT
Custom Duty 0.83 March-2012 to January-2013 Additional Commissioner Custom
Custom Duty 0.02 Apr-2011 Commissioner of Custom (Preventive).
SUB TOTAL 8.12
Income Tax Act 1962 Income Tax 21.37 Asst Year 2013-14 to 2017-18 National Faceless Appeal Centre.
SUB TOTAL 21.37
Central Goods and Service Tax Act 2017 Goods and Service Tax 2.13 April-2018 to March-2020 Joint Commissioner of Sales Tax (Appeal) Rajkot
SUB TOTAL 2.13
MAHARASHTA VAT ACT 2002 VAT 6.06 2009-10 Deputy Commissioner of MVAT
VAT 23.09 2010-11 Deputy Commissioner of MVAT
SUB TOTAL 29.15
Grand Total 404.61

viii. According to the records of the Company examined by us and the information andexplanation given to us no transaction that has not been recorded in the books ofaccounts have been surrendered or disclosed as income during the year in the taxassessment under the Income Tax Act 1961 (43 of 1961).

ix. (a) According to the records of the Company examined by us and the information andexplanation given to us Company has defaulted in repayment of loans or other borrowing orin the payment of Interest thereon to lenders as on March 31 2022 and its details are asfollowings:-

Nature of Borrowing including debt security Name of the Lender Amount not paid on due date (Rs in Crore) Whether Principal or Interest No. of Days delay or unpaid
Loan Corporation Bank (now merged with Union Bank of India) 4.99 Principal 456
7.31 Principal 366
7.31 Principal 275
7.31 Principal 183
6.95 Interest From 0 days to 353 days
Total 33.87
Loan Central Bank of India 428.94 Principal 3683
7.19 Interest 3683
Total 436.13
Loan Edelweiss Asset Reconstruction Company Limited 20.15 Principal 472
40.00 Principal 382
40.00 Principal 290
40.00 Principal 198
40.00 Principal 107
40.00 Principal 17
Total 220.15
Loan Invent Assets Securitization and Reconstruction Private Limited (Debt assignee of Oriental Bank of Commerce) 0.02 Principal 821
0.70 Principal 730
0.85 Principal 639
0.85 Principal 547
0.85 Principal 455
0.85 Principal 365
0.90 Principal 274
0.90 Principal 182
0.90 Principal 90
0.90 Principal 0
Total 7.72
Loan Invent Assets Securitization and Reconstruction Private Limited (Debt assignee of Punjab National Bank) 0.62 Principal 639
3.25 Principal 547
3.25 Principal 455
3.25 Principal 365
3.50 Principal 274
3.50 Principal 182
3.50 Principal 90
3.50 Principal 0
Total 24.37
Loan Invent Assets Securitization and Reconstruction Private Limited (Debt assignee of Allahabad Bank) 1.81 Principal 639
4.25 Principal 547
4.25 Principal 455
4.25 Principal 365
5.25 Principal 274
5.25 Principal 182
5.25 Principal 90
5.25 Principal 0
Total 35.56
Invent Assets Securitization and Reconstruction Private Limited (Debt assignee of Allahabad Bank Punjab National Bank and Oriental Bank of Commerce) 10.88 Interest From 0 day to 547 days
Loan Rare Asset Reconstruction Limited (assignee of debts of Dena Bank) 0.25 Principal 456
1.75 Principal 366
1.75 Principal 275
1.75 Principal 183
1.75 Principal 91
1.75 Principal 17
2.40 Interest Form 0 days to 547
Total 11.40
Loan Rare Asset Reconstruction Limited (assignee of debts of Indian Overseas Bank) 189.95 Principal 3866
0.01 Interest 3866
Total 189.96
Loan Union Bank of India 0.360 Principal 451
0.618 Principal 421
0.618 Principal 391
0.618 Principal 361
0.618 Principal 331
0.618 Principal 301
0.618 Principal 271
0.618 Principal 241
0.618 Principal 211
0.618 Principal 181
0.618 Principal 151
0.618 Principal 121
0.618 Principal 90
0.618 Principal 59
0.618 Principal 17
Total 9.005

(b) According to the records of the Company examined by us and the information andexplanation given to us read with the notes to accounts the company has not beendeclared as wilful defaulter by any bank or financial institution or other lender duringthe year under consideration.

(c) According to the records of the Company examined by us and the information andexplanation given to us the company has not taken any term loan during the year andaccordingly reporting under clause 3(ix)(c) of the Order is not applicable.

(d) According to the records of the Company examined by us and the information andexplanation given to us the company has not raised any funds on short term basis whichhave been used for long-term purposes by the company.

(e) According to the records of the Company examined by us and the information andexplanation given to us the company has not taken any fund from any entity or persons onaccount of or to meet the obligations of its subsidiaries associates or joint venture.

(f) According to the records of the Company examined by us and the information andexplanation given to us the company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint venture or associate.

x. (a) According to the records of the Company examined by us and the information andexplanation given to us the company has not raised moneys by way of initial public offeror further public order (including debt instruments) during the year. Accordinglyreporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the records of the Company examined by us and the information andexplanation given to us the company has not made any preferential allotment or privateplacements of shares or convertible debentures during the year and hence reporting underclause 3(x)(b) of the Order is not applicable.

xi. (a) No fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

(b) No report under section (12) of section 143 of the Companies Act has been filed inForm ADT-4 as prescribed under rule 13 of the Companies (Audit and Auditors) Rules 2014with the Central Government during the year.

(c) As represented to us by the management of the Company there are no whistle blowercomplaints received by the Company during the year.

xii. In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company and accordingly reporting under clause 3(xii) of the Orderis not applicable.

xiii. According to the information and explanations given by the management and basedon our examination of the records of the Company transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial Statements as required by theapplicable accounting standards.

xiv. (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe company during the year and till date in determining the nature timing and extent ofout audit procedures.

xv. In our opinion during the year the Company has not entered into non-cashtransactions with directors or persons connected with its directors and hence provisionsof section 192 of Act are not applicable to the Company.

xvi. (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clauses 3(xvi)(a)(b) and (c) of the Order is not applicable to the Company

(b) In our opinion there is no core investment Company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016). Hence reporting underclause 3(xvi)(d) of the Order is not applicable to the Company

xvii. The company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

xviii. There has not been any resignation of the statutory auditors of the Companyduring the year.

xix. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor's knowledge of the Board of Directors and managementplans that uncertainty exists as on the date of the audit report that the company mightnot be capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within period of one year from the balance sheet date. We howeverstate that this is not an assurance as to the future viability of the Company. We furtherstate that our reporting is based on the facts up to the date of the audit report and weneither give any guarantee nor any assurance.

xx. (a) With respect to other than ongoing projects for the year ended as on March 312022 there are unspent amount to be transferred to fund specified in Schedule VII to theCompanies Act within the period of six months of the expiry of the financial year incompliance with second proviso to sub-section (5) of the section 135 of the said Act.

Financial Year Amount unspent on Corporate Social Responsibility activities "other than Ongoing Projects" Amount Transferred to Fund specified in Schedule VII within 6 months from the end of the Financial Year Amount Transferred after the due date (specify the date of deposit)
2021-2022 Rs 0.11 crore Not Due Not Applicable

(b) The amount remaining unspent under sub-section (5) of the section 135 of theCompanies Act pursuant to ongoing project has been transferred to special account incompliance with the provisions of sub-section (6) of the section 135 of the said section.

xxi. The requirement of clause 3(xxi) is not applicable in respect of StandaloneFinancial Statement.

For Hitesh Prakash Shah & Co
(Firm Regd. No: 127614W)
Chartered Accountants
Place: Ahmedabad Hitesh Shah
Date: May 30 2022 Partner
UDIN: 22124095AKHIRN4020 Membership No. 124095

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Annexure B referred to paragraph B(g) under 'Report on Other Legal RegulatoryRequirements of Independent Auditor's report of even date for year ended March 31 2022.

Report on the Internal Financial Controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of Electrotherm(India) Limited ("the Company") as of March 31 2022 in conjunction with ouraudit of the Standalone financial Statements of the company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible for establishing andmaintaining internal financial Controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these Standalone Financial Statements was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to theseStandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these Standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is suffiicient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting with reference to these Standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting with Reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to theseStandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these Standalone financial statements includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofun-authorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting withReference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Standalone Financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these Standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects except otherwise stated orreported to the management an adequate internal financial controls system over financialreporting with reference to this standalone financial statements and such internalfinancial controls over financial reporting with reference to these standalone financialstatement were operating effectively as at March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Hitesh Prakash Shah & Co
(Firm Regd. No: 127614W)
Chartered Accountants
Place: Ahmedabad Hitesh Shah
Date: May 30 2022 Partner
UDIN: 22124095AKHIRN4020 Membership No. 124095

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