In aspects, the present invention discloses a method of detecting a rotor fault in an electric machine using a data analysis unit. The method comprises measuring magnetic field strength along a first axis and a second axis, determining operating slip frequency of the electric machine using the measured magnetic field strength along the first axis and the second axis, determining an amplitude of the determined operating slip frequency in a first frequency spectrum and an amplitude of operating slip frequency in a second frequency spectrum, and detecting the rotor fault by comparing the amplitude of the determined operating slip frequency in the first frequency spectrum and the amplitude of operating slip frequency in the second frequency spectrum against a predetermined threshold.