A LANDMARK YEAR FOR

THE COMPANY iN MULTiPLE WAYS

Dear Shareholders

I take pleasure to present the Annual Report of your Company for FY18. The year assumesparticular importance in the Company's history as it went public through an Initial PublicOffer (IPO).

FY18 was a landmark year for the company in multiple ways. On January 22 2018 thecompany's shares got listed on bourses i.e. BSE Limited (BSE) and National Stock Exchangeof India Limited (NSE). Our Rs 156-crore IPO received an overwhelming response from theinvestors. The issue was subscribed by 248.51 times. I thank all the investors forreposing faith in our company.

key Drivers of our Business

We are influenced by our market segments. Currently our operational environment ispredominantly driven by heightened national security threats and we see an increase indefence budgets. Defence and avionics and satellite space markets continue to see volumegrowth. Government of India's "Make in India" initiative aims at boosting thenation's domestic manufacturing sector as well as to export markets. The defenceelectronics manufacturing sector is expected to create Rs 4 trillion worth marketopportunity during FY16-FY26E. The demand for electronics hardware in the country isprojected to touch USD 400 billion by 2020 which is expected to create an uniqueopportunity for companies like AMS.

Governance

Integrity and transparency are key to our corporate governance practices to ensure thatwe gain and retain the trust of our stakeholders at all times. Our Board exercises itsfiduciary responsibilities in widest sense.

We have adopted the code of conduct for the Board of Directors and senior managementpersonnel ensuring compliance with laws rules and regulations and achieve the higheststandard of corporate governance keeping in view the interest of all the stakeholders.

I take this opportunity to thank all our stakeholders for their never ending supportand cooperation which enabled us to be the company we are. We will continue to strive tomake your company as a preferred employer and Partner by co-creating values and delivergrowth that is consistent competitive profitable and responsible.

Regards

RAGHUPATHY GOUD THEEGALA

Chairman & Independent Director