Dear Shareholders

In the fiscal 2018-19 AMS posted splendid results amidst challengingmacroeconomic scenario. Our technological capabilities form the bedrock of our vision toproduce products that meet our customers' dynamic needs. I am pleased to report thatit has been a fruitful first full year since our listing and we continue to reportsustained operational and financial results.

We have recorded a notable growth in a year that was marked by a rangeof challenges including geopolitical tensions trade war between the US and China risingdebt-level in emerging markets and developing economies and liquidity crunch which led tosoftening of global economic growth. While the Indian economy continues to emerge as thefastest growing major economy despite the headwinds. The Government of India (GoI)continues to introduce reforms to boost the growth and propel the country's economicworth to US$ 5 trillion by 2025 from its current value of US$ 2.7 trillion.

The GoI has been emphasising strongly on ‘Make in India'along with ‘Buy (Indian- IDDM)' ‘Buy (Indian)' and ‘Buy and Make(Indian)' over ‘Buy (Global)'. This presents a huge growth impetus to ESDMlike us. With rising awareness about India's capabilities being an alternate to Chinafor Quality Electronic Systems is opening opportunities in the global market where thedemand and supply gap is widening.

In alignment with the growing opportunities in domestic and overseasmarket at AMS we have increased our capacities operational efficiencies and invested instrengthening our R&D capabilities. These measures will further strengthen ourfinancial performance and create sustained value for our stakeholders.

An integral part of our business model is to ensure a holisticsustainable growth. We at AMS make sincere contribution to give back to the localcommunities in which we operate. We continue to work in multiple areas of interest toempower lives of people and make a positive difference.

Lastly I also take this opportunity to thank all the shareholders fortheir continuous support and trust. I would also like to appreciate and thank themanagement team for their dedication and hard work. Looking ahead to FY 2020 the Companyis well positioned to continue to deliver outstanding products and solutions to ourcustomers superior returns to our shareholders higher production and a growing trustamong our customers. We look forward to another exciting year in rapidly changinglandscape and create value for our stakeholders consistently.

Sd/-

Raghupathy Goud Theegala

Chairman & Independent Director