The information you have now provided clears up some things I did not understand. I has assumed that because there were two relays that it controlecd two loads independently. Both relays operate together (Their coils are connected in series.) to provide double pole switching. I can't see the damaged track you describe on the picture of the back side of the board. (Is this a picture of YOUR board or just one copied from the documentation ?) The wiring diagram from the documentation is correct. It shows that the relays each switch one of the live wires. You have not provide a diagram of EXACTLY YOU HAVE CONNECTED IT. Can you do so including clear pictures of YOUR connections to the timer and YOUR connections to the water heater.
Les.
Les.