Dear Readers

I welcome you and offer my gratitude for taking some time out from your schedule forthe annual report for the fiscal year (FY) 2020-21.

The year gone by has been remarkable for the global economy as nations battled the twinchallenges of public health and economic crisis while registering a record success invaccine development. While there was no leadership manual for such a crisis we witnesseda rare collaboration of people Governments and businesses in the global fights againstthe coronavirus.

According to IMF the global economy shrunk by 3.5% in FY2020-21 disrupting the socialfabric across communities as people lost lives and livelihoods. The year 2021 hascommenced with hopes and fear stimulated by increasing approval of several vaccines andresurgent waves of infections along with speedily communicable mutations. The policyresponse of fiscal support and liquidity infusion by respective Governments have met withsignificant success in keeping the global economies afloat so far.

The Indian economy was adversely impacted by the pandemic as the economy has beenslowing down in recent years. The dispirited economic agents having suffered a severebacklash due to the continuous 68-day lockdown in 2020 has been rallying their effortstowards recovery ever since the economy unlocked. The

Indian economy shrunk by 7.3% in FY21 which included sequential recessionary quartersin the first half and record growth during the last two quarters which only few othercountries were able to do.

Despite an adverse economic conditions the company has performed satisfactorily duringthe FY 2020-21. The company has clocked a revenue of INR 20307.20 Lakhs in FY2020-21against INR 24590.41 Lakhs in Fy 2019-20 and the net profit stood at INR 1025.49 Lakhsin FY21 as against INR 1401.12 Lakhs in FY2019-20.

The global avionics industry is projected to grow from an estimated USD 48 billion in2019 to reach over USD 75 billion by 2027 recording a CAGR of 9.25% during this period.1There are several factors that are contributing to the growth of avionics market. Some ofthese are rising adoption of emerging technologies such as AI and machine learningincreasing development of electric- VTOLs (vertical takeoff and landing) and electricaircraft increasing focus on open flight deck system and development of next-generationaircraft computer. The increasing border disputes in Southeast Asian countries are alsopropelling the demand for military aircrafts which in turn aids the avionic market.

The naval combat system market is estimated to grow at CAGR of nearly 4% between2020-2025 as per several research reports. The Naval Systems in recent times have grabbedsignificant attention as nations are ramping up their naval capabilities. The emergence ofnew technologies such as the advanced airborne radars which are capable of automaticallydetecting vessels over a long distance is driving the market. Demand is further driven bysubmarine upgrade programs across the world as well as demands for advanced integratedcombat system in naval forces. I wish to mention that your company has a strong presencein Naval system platforms and has achieved remarkable heights in Torpedo technologies withsuccessive successful products released to meet the future combat requirements some ofwhich developed earlier also exported by Indian Government. This would continue to be akey growth driver for the company with growing market for Indigenous technologies. Thecompany has also participated significantly for weapon trials in international waters andhas played a key role in successful trials in the middle of the pandemic year and Icongratulate all the team for their contribution to the company and also the nation inturn.

The Indian Government has started encouraging Indigenous weapon systems and platformsfor past few years as part of Make in India. Your company has developed several productsin this year despite a huge disruption due to global pandemic. These technological R&Dare now undergoing trials in various platforms and would soon hit large scalemanufacturing in subsequent years and I congratulate all the technical teams in theirremarkable achievements.

The homeland security industry is abundant with opportunities in the country on accountof factors such as high GDP growth Challenging relationships with neighbors outdatedequipment and systems Increased spending on modernizing military capabilities andinfrastructure focus on creating and enhancing support Infrastructure Emergingpublic-private participation opportunities. Your company has partnered with Global OEMs insecurity and surveillance market and has also completed audits with few companies andwould start producing their products in the future as a part of Make in India and thiswould be a huge stimulus for the company to grow in emerging markets.

I also place on record the step taken by your company to develop new technologies inmedical electronics field by leveraging their existing capabilities and also entering intopartnership with renowned institutons like Indian Institute of Science (IISC) to enterinto the fast-growing market and wish that this would be one more growth driver for thecompany in the years to come.

Our people in the organization are our greatest strength and they have been with usthrough our ups and downs. Emerging from a crisis with no textbook leadership cases ormanuals our employees exhibited courage and leadership in every sphere of professionaland personal life. The company also benefitted from the learnings through the pandemicthat every person experienced. The company is now better prepared to deal with any adversedevelopments in its operating environment.

I would like to take this opportunity to extend my heartiest gratitude to all ourstakeholders for their continued interest faith and encouragement on AMS.I amparticularly thankful to all our employees who have braved the pandemic and assuredoptimum results. I am also extremely thankful to all our business partners vendors otherbusiness associates and all our bankers for their support and contributions over theyears. A big thank you to all our team members whose passion commitment and hard workhas kept us afloat even during these tough times. I look forward to your continued supportto achieve our aspirations and goals.