Electrotherm (India) Ltd Auditor Reports

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 at March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the "standalone financial statements"). In our opinion and to the best of our information and according to the explanations given to us read with the notes to accounts, except for the effects of the matter described inthe Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements give the informationrequired by the Companies Act, 2013, as amended (the "Act") in the manner so required and give a true and fair view in conformitywiththeIndianAccountingStandardsprescribedundersection133 of the Act, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024 and its cash flows and changes in equity for the year ended on that date.

Basis for Qualified Opinion

38(b) of non- provision of interest on NPA account of bank, on approximate basis of Rs. 116.10 Crore, for the Wedrawattention year under consideration and the total amount of such unprovided interest till date is Rs. 784.72 Crore. The exact amounts of the said non provisions of interest are not determined and accordingly the amount of Net Profit for the year is overstated by Rs. 116.10 crore and the amount of Bank / ARC liability and Total retained earnings / (loss) as on March 31,2024 is understated by Rs. 784.72 crore. Our audit reports for the previous year ended March 31, 2023 was also qualified in respect of this matter.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), specified under section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statement.

Emphasis of Matter

We draw attention to the following Notes of Statement of standalone audited financial statements of the Company:

(a) Note No 15(c) in respect of delayed / non-payment of Principal and Interest due to the lenders of the loan and the lenders are yet to confirm the revised repayment schedule.

(b) Note No 15(f) related to default in complying with the terms and conditions of the settlement entered with the Bank / ARCs and the uncertainty about the amount of final liability of the Company. (c) Note No 15(g) and Note No 36 in respect of defaults in repayment of the loan and treatment in the books of account of the assignment / settlement of the debts of various banks and the financial Institutions.

(d) Note No 32(a)(viii), 37 and 41 in respect of pending enquiries / notices / summons / litigation / recovery / fraud proceedings against the Company and the Directors of the Company.

(e) Note No 39(b) & (e) in respect of confirmation / reconciliation / regrouping and classification of few accounts of "Trade Receivables", "Trade Payable", "Advance from Customers", "Advances Recoverable in Cash or Kind", and "Advance to suppliers and other parties" and the amount of inventories as the same are taken by the management.

In our opinion in respect of the above Emphasis of Matter, we do not provide any modified opinion, as these are not material / quantifiable / relevant for the accounting purpose, for the year under consideration.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2024. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters (Other than those given in Basis for Qualified Opinion)Auditors Response
Accounting for Revenue from Contracts with Customers	In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
The Companys revenue comprises of revenue sale of Induction Furnace, CastingMachines, Transformers, Sponge and Pig Iron, Ferrous and Non-Ferrous Billets / Bars / Ingots, Duct Iron Pipes, Battery Operated Vehicles and Services relating to Steel Melting and Other Capital Equipment. The total revenues for the year amounted to Rs. 4271.50 Crore.
	• We assessed the appropriateness of the revenue recognition applicable accounting standards.
	We performed substantive testing by selecting of revenue transactions, recorded testing the underlying documents on test basis.
Revenue from sale of goods is recognised when control is transferred to the customers. This requires detailed analysis of each contract regarding timing of revenue recognition. Inappropriate assessment could lead to risk of revenue getting recognised before control has been transferred.
	We performed confirmation procedures on selected customer balances at the balance sheet date.
	We tested, on a sample basis, specificrevenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period.
Accordingly, timing of recognition of revenue is a key audit matter.

Information Report Thereon Otherthanthe

The Companys management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Boards report, Management Discussion and Analysis, Corporate Governance and Shareholders Information, but does not include the standalone financial statements and our auditors report thereon. These reports are expected to be made available to us after the date of this audit report.

Our opinion on theStandaloneFinancialStatementsdoesnotcovertheotherinformationand we do not express any form of assurance conclusion thereon.

In connectionwith our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the Companys annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe actions applicable under the applicable laws and regulations.

Responsibilities of Management for the Standalone Financial Statements

The Companys management and Board of Directors are responsible for matter stated in Section 134(5) of the Act, with respect to the preparation and presentation of these standalone financial statements that gives a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management and the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Companys financial reporting process.

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:-

Identify and assess the risks of material misstatement of standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern

Evaluate the overall presentation, structure, and content of the standalone financialstatements, including the disclosures, and whether the standalone financialstatements represents the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the Company to express an opinion on the financial statements.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, make it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work: and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 Sub-Section (11) of Section "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of 143 oftheAct,wegiveinthe the Order, to the extent applicable for the year under consideration.

(B) As required by Section 143(3) of the Act and read with the notes to accounts, based on 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 best of our knowledge and belief were necessary for the purposes of our audit;

(b) Except for the effect of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash Flow and Statement of Changes in Equity dealt with by this report are in agreement with the books of account; (d) Except for the effect of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the (e) The matter described in ‘Qualified Opinion and ‘Emphasis of Matter paragraph above, 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 March 31, 2024, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, from being appointed as a director in terms of Section 164(2) of the Act; (g) The qualification relating to other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph; (h) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Reportin "Annexure B" to this report; (i) The Company has not paid any managerial remuneration to its directors and thus, the provisions of section 197 read with Schedule V of the Act are not applicable to the Company for the year ended March 31, 2024.

(j) With respect to the other matters to be included in the auditors report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us: - i. The Company has disclosed the details / impact of pending litigations on its financial position in its standalone financial statements- Please Refer Note No. 32(a), 37 and 41 to the standalone financial statements; ii. There are no long-term contracts including derivative contracts and accordingly no provision 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 and Protection Fund by the Company. iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 42(v), no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ovide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; pr ("UltimateBeneficiaries") or (b) The management has represented, that, to the best of its knowledge and belief, as disclosed in the note 42(vi), no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded inwritingor otherwise, that the Company shall, whether, directly or indirectly, lend or invest in otherpersonsorentitiesidentifiedin any manner whatsoever by or on behalf of the Funding Party ovide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and pr ("UltimateBeneficiaries") or

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided in (a) and (b) above, contain any material misstatement. v. The Company has not declared or paid any dividend during the year and has not proposed final dividend for the year. vi. Based on our examinationwhich included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

Annexure A to Independent Auditors Report of even date on the Standalone Financial Statements of Electrotherm (India) Limited for the year ended on March 31, 2024.

(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)

In terms of the information and explanation sought by us and given by the Company and the books of account and records examined by us in the normal course of the audit and to the best of our knowledge and belief, we state that:-i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and the relevant details of right- of-use assets.

The Company has maintained proper records showing full particulars of intangible assets.

(b) The Company has a programme of verification of its majority of Property, Plant and Equipment by which the Property, Plant and Equipmentareverifiedby the Management at periodic interval. In accordance with this programme Property, Plant and Equipment were verified during the year and no material discrepancies were noticedon such verification. periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. (c) With respect to immovable properties disclosed in the standalone financial statements (which are included under the Note 3 - ‘Property, Plant and Equipment), according to the information and explanations given to us and based on the examination of the property tax receipts and lease agreement(s) for assets on lease, registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds of such immovable properties 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 (including right-of-use assets) and intangible assets during the year.

(e) As informed to us, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 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 (Other than stocks held with third parties) has been conducted at reasonable intervals by the management. In our opinion and based on information and explanation given to us, the frequency of verification by the management is reasonable and the coverage and procedure for such verification is appropriate. For stocks held with third parties at the year-end, written confirmation has been obtained. No discrepancies of 10% or more in the aggregate for each class of inventory were noticed on such verification.

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

iii. (a) The Company has not provided any guarantee or security to any companies, firm, limited liability partnerships or any other parties covered in the register maintained under section189 of the Act. During the year the Company has or unsecured to such companies, firm, limited liability partnerships or any other 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.

- During the year the Company has granted loan to the subsidiary of Rs. Nil. The balance outstanding as on March 31, 2024 of the said loan before provision as doubtful debt, is Rs. 4.18 Crore.

- During the year the Company has granted loan in the nature of advances to two subsidiaries of Rs. 0.67 Crore. The balance outstanding as on March 31, 2024 of the said advances before provision as doubtful debt, is Rs. 66.65 Crore.

- During the year the Company has invested in subsidiary and joint venture of Rs Nil. The balance outstanding as on March 31, 2024 of the said investment before impairment, is Rs. 48.63 Crore.

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

- During the year the Company has not granted any loan to the other parties (other than subsidiaries, joint venture and associates). The balance outstanding as on March 31, 2024 of the loan is Rs. 0.15 Crore.

(b) As explained to us, the terms and conditions of all loan given and advances in the nature of loans; except unsecured advances prejudicial to the companys interest. consideredasdoubtful

(c) No schedule of repayment of principal and payment of interest in respect of loan and advances in nature of loan has been stipulated and accordingly we are unable to make specific comment on the regularity of repayment of principal and payment of interest. The aggregate balance of such advances before provision as doubtful debt, as on March 31, 2024 is Rs. 70.98 Crore. (d) As no schedule for repayment of principal and payment of interest has been stipulated, we cannot comment whether the amount is overdue for more than ninety days or not. Further major of the loan and 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 the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

(f) The Company has granted loans or advances in the nature of loans either payable on demand or without specifying any terms or period of repayment and the aggregate amount of such loan before provision as doubtful debt, is Rs 70.98 crore and it is 100% to such loan granted. The aggregate amount of loans granted to promoters; related parties as defined in clause 76 of section 2 of the Companies Act 2013 is Rs 70.98 crore. iv. In our opinion and according to the information and explanation given to us, provisions of section 185 and 186 of the Act in respect of loans to directors including entities in which they are interested and in respect of loans given and investments made have 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 us, during the year under consideration, the Company has not accepted any deposits within the meaning 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 applicable to the Company. vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete or not. vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Goods and Service Tax, Sales Tax, Duty of Customs, Cess and other material statutory dues, as applicable, with the appropriate authorities; though there has been a slight delay in a few cases.

(b) There are no material undisputed amounts payable in respect of above dues which were in arrears as at March 31, 2024, for a period of more than six months from the date they became payable.

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

Name of the Statue	Nature of Dues	Amount disputed	Amount Disputed (net of payment under protest and adjustment of refund)	Period to which amount relates	Forum Where Dispute is Pending
		(Rs. In Crore)	(Rs. In Crore)
CENTRAL EXCISE	Excise duty	0.00	0.00	2005-2006	Commissioner, Central Excise
ACT,1944	Excise duty	16.65	11.65	December-2005 to December-2008	CESTAT
	Excise duty	175.00	175.00	April-2005 to March-2010	CESTAT
	Excise duty (Advance Licence)	22.41	22.41	March-2011 to December-2011	High Court, Gujarat
	Excise duty	68.62	68.62	October-2007 to	Commissioner, Central Excise
				September-2012
	Excise duty	57.38	57.38	April-2009 to March-2010	High Court, Gujarat
	Excise duty	6.82	6.82	February-2014 to March-2015	CESTAT

 

Name of the Statue	Nature of Dues	Amount disputed	Amount Disputed (net of payment under protest and adjustment of refund)	Period to which amount relates	Forum Where Dispute is Pending
		(Rs. In Crore)	(Rs. In Crore)
Finance Act, 1944	SERVICE TAX	1.84	1.84	April-2007 to March-2008	High Court, Gujarat
Custom Act, 1962	CVD	7.27	7.27	March-2011 to December-2011	CESTAT
	Custom Duty	1.66	0.83	March-2012 to January-2013	CESTAT
	Custom Duty	0.02	0.02	April-2011	Joint Commissioner of Custom (Preventive).
Income Tax Act, 1961	Income Tax	0.48	-	Assessment Year 2015-2016	National Faceless Appeal Centre
	Income Tax	2.36	1.84	Assessment Year 2016-2017	National Faceless Appeal Centre
	Income Tax	1.59	1.59	Assessment Year 2017-2018	National Faceless Appeal Centre
	Income Tax	6.01	6.01	Assessment Year 2019-2020	National Faceless Appeal Centre
Central Goods and Service Tax Act, 2017	Goods and Service Tax	2.13	2.13	April-2018 to March-2020	Joint Commissioner of Sales Tax (Appeal) Rajkot
Maharashta VAT	VAT	8.28	6.06	2009-2010	Deputy Commissioner of MVAT
Act, 2002	VAT Grand Total	25.93 404.45	23.09 392.56	2010-2011	Deputy Commissioner of MVAT

The above amount does not include amount of additional interest / fee / penalty, after the determination of the aforesaid liability.

viii. According to the records of the Company examined by us and the information and explanation given to us, no transaction that has not been recorded in the books of accounts have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961, (43 of 1961). ix. (a) According to the records of the Company examined by us and the information and explanation given to us, the Company has defaulted in repayment of loans or other borrowing or in the payment of Interest thereon to lenders as on March 31, 2024, and its details are as followings: -

Nature of Borrowing, including debt security	Name of the Lender	Amount not paid on due date	Whether Principal or	No. of Days delay or
		(Rs in Crore)	Interest	unpaid
Loan	Invent Assets Securitization and 0.80 Principal 731
	Private Limited (Debt assignee of Oriental Bank of Commerce)	1.00	Principal	640
		1.00	Principal	548
		1.00	Principal	456
		1.00	Principal	366
		1.45	Principal	275
	Total	6.25

 

Nature of Borrowing, including debt security	Name of the Lender	Amount not paid on due date	Whether Principal or	No. of Days delay or
		(Rs in Crore)	Interest	unpaid
Loan	Invent Assets Securitization and 0.34 Principal 1186
	Private Limited (Debt assignee of Punjab National	3.25	Principal	1096
	Bank)	3.50	Principal	1005
		3.50	Principal	913
		3.50	Principal	821
		3.50	Principal	731
		4.20	Principal	640
		4.20	Principal	548
		4.20	Principal	456
		4.20	Principal	366
		4.30	Principal	275
		4.30	Principal	183
		4.69	Principal	152
	Total	47.68
Loan	Invent Assets Securitization and Reconstruction	2.76	Principal	1096
	Private Limited (Debt assignee of Allahabad Bank)	5.25	Principal	1005
		5.25	Principal	913
		5.25	Principal	821
		5.25	Principal	731
		6.50	Principal	640
		6.50	Principal	548
		7.00	Principal	456
		7.00	Principal	366
		8.00	Principal	275
		8.00	Principal	183
		6.51	Principal	152
	Total	73.27
Loan	Rare Asset Reconstruction Limited (assignee of debts of Dena Bank)	1.50	Principal	913
		1.75	Principal	821
		1.75	Principal	747
	Total	5.00
Loan	Rare Asset Reconstruction Limited (assignee of debts of Indian Overseas Bank)	183.95	Principal	4596
	Total	183.95
Interest on Loan	Rare Asset Reconstruction Limited (assignee of debts of Dena Bank)	5.58	Interest	From 0 to 1278 Days
Interest on Loan	Invent Assets Securitization and Reconstruction	41.93	Interest	From 0 to
	Private Limited (Debt assignee of Allahabad			1278 Days
	Bank, Punjab National Bank and Oriental Bank of Commerce)
Interest on Loan	Rare Asset Reconstruction Limited (assignee of debts of Indian Overseas Bank)	0.01	Interest	4596 Days
	Total	47.52

Note: The above amount does not include the rescheduled or restructured amount or period, by the lenders or bankers.

(b) According to the records of the Company examined by us and the information and explanation given to us, read with the notes 37(b) of the standalone financial statements, the Company has not been declared, as wilful defaulter by any bank or financial institution or other lender during the year under consideration.

(c) According to the records of the Company examined by us and the information and explanation given to us, the Company has not taken any term loan during the year and accordingly reporting under clause 3(ix)(c) of the Order (d) According to the records of the Company examined by us and the information and explanation given to us, during the year the Company has not raised any funds on short term basis which have been used for long-term purposes by the Company.

(e) According to the records of the Company examined by us and the information and explanation given to us, during the year the Company has not taken any fund from any entity or persons on account of or associates, or joint venture. (f) According to the records of the Company examined by us and the information and explanation given to us, the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint venture, or associate. x. (a) According to the records of the Company examined by us and the information and explanation given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly reporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the records of the Company examined by us and the informationand explanation given to us, the Company has not made any preferential allotment or private placements of shares or convertible debentures during the year and hence, reporting under clause 3(x)(b) of the Order is not applicable. xi. (a) As informed to us, no material fraud by the Company and on the Company has been noticed or reported during the year. (b) No report under sub-section filedin Form ADT-4 as prescribed under rule 13 (12)ofsection143oftheCompaniesActhasbeen of the Companies (Audit and Auditors) Rules 2014 with the Central Government, during the year. (c) We have taken into consideration the whistle blower complaints received by the Company during the year (and upto the date of this report), while determining the nature, timing and extent of our audit procedures. xii. The Company is not a Nidhi Company and accordingly reporting under clause 3(xii) of the Order is not applicable. xiii. and based on our examinationof the records of the Company Accordingtotheinformation transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements, as xiv. (a) In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its business. (b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature timing and extent of our audit procedures. xv. In our opinion, during the year, the Company has not entered into non-cash transactions with directors or persons connected with its directors, and hence, provisions of section 192 of Act are not applicable to the Company. xvi. (a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting Order is not applicable to the Company. underclauses 3(xvi)(a),(b), and(c) ofthe (b) As informed by the management of the Company, the group has one Core Investment Company as part of the group. xvii. The Company has not incurred cash lossesinthefinancial year . andintheimmediatelyprecedingfinancial xviii. There has not been any resignation of the statutory auditors of the Company during the year. xix. On the basis of the financial ratios, ageing and expected dates of realisation of financialassets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions nothing has us to believe that any material uncertainty exists as on the date of audit report indicating that Company is not capable of meeting its liabilities existing at the date of the balance sheet as and when they fall due within a period of one year We, however, state that this is not an assurance as to the future viability of the Company. We further state thatourreportingis based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance. xx. (a) With respect to other than ongoing projects for the year ended as on March 31, 2024, there are no unspent amount to be transferred to fund specified in Schedule VII to the Companies Act within the period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of the section 135 of the said Act. (b) There is no amount remaining unspent under sub-section (5) of the section 135 of the Companies transferred to special account in compliance 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 standalone financial statements.

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

Annexure B referred to paragraph B(h) under ‘Report on Other Legal Regulatory Requirements of Independent Auditors report of even date for year ended March 31, 2024.

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

We have audited the internal financial Electrotherm (India) Limited controlsoverfinancial ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management and Board of Directors are responsible for establishing and maintaining internal financial Controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.Theseresponsibilitiesinclude the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specifiedunder section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these controls operated effectively in all material respects. standalonefinancial Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to these Standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these standalone financial

Meaning of Internal Financial Controls Over Financial Reporting with Reference to these Financial Statements reportingwith reference Acompanysinternalfinancial to these standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financialstatements for external reportingandthepreparationof purposes in accordance with generally acceptedaccountingprinciples.Acompanysinternalfinancialcontrol over financial reporting with referencetothesestandalonefinancial those policies and procedures that (1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions anddispositionsof the assets of the Company;

(2) Provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and (3) Provide reasonable assurance regarding prevention or timely detectionof un-authorized acquisition, use, or disposition Companys assets that could have a material effect on the financial statements.

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

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

Opinion

In our opinion, the Company has, in all material respects, except otherwise stated or reported to the management, an adequate internal financial over financial reporting with referencetothesestandalonefinancialstatements were operating effectively as at March 31, 2024 based on criteria established by the Company considering the essential components of internal control theinternalcontroloverfinancial stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For, Hitesh Prakash Shah & Co

(Firm Regd.no: 127614W)

Chartered Accountants

 

Hitesh Shah

Partner

Membership No. 124095

UDIN: 24124095BKAYTE4681

 

Place: Ahmedabad

Date: May 20, 2024