To The Members

SPECTRUM ELECTRICAL INDUSTRIES LIMITED

Plot No. V-195 MIDC Area Ajanta Road Jalgaon

Maharashtra 425003 India.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Spectrum ElectricalIndustries Limited (“the Company”) which comprises the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss Cash Flow Statement and the statement ofchanges in equity for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the act’) with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. T his responsibilityincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; design implementation andmaintenance of adequate internal financial controls that are operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken in to account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under and order issued under section 143(11) of the Act.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards & Pronouncements require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2019;

b) in the case of the Statement of Profit and Loss of the Profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. On the basis of checks of books and records of the company and according to theinformation and explanations given to us the Companies (Auditor’s Report) Order 2016(“the Order”) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the “Annexure A” statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we further 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 purpose of our audit;

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

c) The Balance Sheet the Statement of Profit and Loss Cash Flow Statement and thestatement of changes inequity dealt with by this Report are in agreement with the books ofaccount;

d) In our opinion the aforesaid standalone financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B’; and

g) With respect to other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The company does not have any pending litigations as at March 31 2019 that has anyimpact on its financial position in its standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

For J P L & Associates

Chartered Accountants

FRN: 132748W

Sd/-

CA Ashish Patil

Partner

M. No. 150439

Date: 30th May 2019

Annexure ‘A’ to the Independent Auditors’ Report

Report on the Companies (Auditor’s Report) Order 2016 (‘the Order’)issued by the Central Government in terms of Section 143(11) of the Companies Act 2013(‘the Act’) of Spectrum Electrical Industries Limited (‘the Company’)

1. In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

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

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable property areheld in the name of the Company.

2. In respect of Inventories:

(a) The management has conducted physical verification of inventory at reasonableintervals during the year.

(b) The procedures of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) T he c ompany is maintaining proper records of inventory and no any materialdiscrepancies were noticed on physical verification of inventory.

3. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act. Thereforethe provisions of clause 3 of the said order are not applicable to the Company.

4. The company has complied with the provisions of section185 and 186 of the Act withrespect to the loans and investments made.

5. The company has not granted any loans made investments given guarantees andsecurity accordingly therefore the provisions of clause 3 of the said order are notapplicable to the Company.

6. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business for purchase of inventory and fixed assets and for the sale ofgoods. Further on the basis of our examination of the books and records of the companyand according to the information and explanations given to us we have neither come acrossnor have been informed of any continuing failure to correct major weaknesses in theaforesaid internal control procedure.

7.According to the information & explanations given to us the Company has notaccepted any deposits from the public to which the directives issued by the Reserve Bankof India and the provisions of Section 73 to Section 76 or any other relevant provisionsof the Act and the rules framed there under apply.

8. The Central Government has prescribed the maintenance of cost records for productsof the Company under sub section (1) of section148 of the Act and in respect of thisaccounts and records have been maintained by the Company.

9. According to the information and explanation given to us and on the basis of ourexamination of the records of the company examined by us in our opinion the company isgenerally regular in depositing undisputed s tatutory dues including provident FundEmployees State Insurance Income tax Sales tax Goods& Service Tax etc. and othermaterial statutory dues with the appropriate authorities. According to the information& explanation given to us there are no disputed dues in respect of Provident FundEmployee’s state Insurance Contribution sales tax/income tax/ wealth tax/service tax/ Customs Duty /Excise Duty/ Cess/ Goods & Service Tax & other material statutorydues in arrears as on 31st March 2019 for a period of more than six months from the datethey became payable.

10. The Company does not have accumulated losses at the end of the Financial Year.Further the company has not incurred cash loss during the current financial year & inthe immediately preceding financial year.

11. The company has not defaulted in repayment of dues to a financial institution orbank. The company has not issued any debentures.

12. The Company has raised Rs.25.87 Crore by way of initial public offer by issuing andallotting 3980000 equity shares of face value of Rs. 10/- each at an issue price of Rs.65/- (including of security premium of Rs. 55/- each) and proceed for IPO has beenutilized/to be utilized for the objects as provided in the prospectus. 11. According tothe information and explanations given to us the Company has not given any bank guaranteefor loans taken by others from banks or financial institutions.

12. In our opinion and according to the information and explanation given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised.

13. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and by its officers or employees has been noticed orreported during the year.

14. In our opinion and according to the information and explanations given to us theCompany has paid /provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

15. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder and the Nidhi rule 2014 are not applicable.

16. According to the information and explanation given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required underaccounting standards (AS-18) related party disclosure specified under section 133 of theact read with rule 7 of the co. (accounts) rules 2014.

17. In our opinion and according to the information and explanations given to us duringthe year the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures and hence reporting under clause 3(xiv)of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected with him hence reporting under clause 3(xiv) of the Orderis not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For J P L & Associates

Chartered Accountants

FRN: 132748W

Sd/-

CA Ashish Patil

Partner

M. No. 150439

Date: 30th May 2019

Annexure ‘B’ to the Independent Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (‘the Act”)

We have audited the internal financial controls over financial reporting of SpectrumElectrical Industries Limited (‘the Company’) as of March 31 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). 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 safeguarding ofits assets prevention and detection of frauds and errors accuracy and completeness ofthe accounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note’) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting 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 c ontrols s y stem over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors’ judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting c riteria established by the Company considering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For J P L & Associates

Chartered Accountants

FRN: 132748W

Sd/-

CA Ashish Patil

Partner

M. No. 150439

Date: 30th May 2019