Aimtron Electronics Ltd Management Discussions

(7)Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}.

We collaborate with our customers through the entire product life-cycle including assisting with concept creation, product development, prototyping, testing and mass manufacturing. This results in customers shortening their product development and time-to market cycles. We are well positioned to increase the number of different products that we manufacture for them, increase the volume of our shipments to them of each particular product and expand our coverage to other areas where they require similar solutions. Our customers span multiple sectors, ranging Industrial sector, Medical & Healthcare equipment, Automobiles, Power, Gaming, Drones and UAV (unmanned aerial vehicles) etc. Furthermore, currently our revenue from top 10 customer accounts for 92.46 %, 96.70 %, 94.66 % and 98.58 % of our revenue from operations for six months period ended on September 30, 2023, Fiscal 2023, Fiscal 2022, and Fiscal 2021.

We possess a reliable supply chain network. We have long-term relationships with our vendors within India and outside India. We source materials and components from various regions including China, United States, United Kingdom, Hong Kong, Singapore, Taiwan, Ireland and Thailand as well as locally within India. As of September 30, 2023, we have an average relationship of over 5 years with 8 number of suppliers. We do not rely on a single source or vendor for components, instead, have alternative sources for vendors for each component category. This offers us leverage to ensure availability of materials and negotiate better credit terms at cost-effective rates. We have two manufacturing facilities (Gujarat & Karnataka) for any regional disruption within India.

Our Company is dedicated towards quality of our products, processes and input materials and components. We are accredited with ISO 13485:2016 for Quality Management System for medical devices applicable to provider of high tech electronic assemblies for medical devices with measuring, monitoring and displaying function and contract assembly works and ISO 14001:2015 for Environmental Management System for High Tech Electronic Assemblies and contract assembly works and EN ISO 9001:2015 for Management system applicable to Hi-tech electronic assemblies and Contract Assembly works. Also our Vadodara facility is approved by Canadian Standard Association.

Experienced and Qualified Management and Employee base

We have an experienced and qualified management team led by our Promoter and Chairman Mukesh Jeram Vasani who holds the degree in Bachelor of Engineering in Civil with overall work experience of around 30 years, and Promoter and Non-Executive Director, Nirmal M. Vasani who has completed his graduation with an experience of around 7 years. Our Whole Time Directors, Sharmilaben Lakhanbhai Bambhaniya, holds the degree of Master of Commerce, Bachelor of

Education and Bachelor of Laws (Special) with overall experience of around 20 years and Dr. Ashwani Kumar Srivastava, who has completed his Doctor of Philosophy in Chemical Engineering with an experience of around 30 Years.

For details in respect of "Statement of Significant Accounting Policies", please refer to Annexure IV of Restated Financial Statements beginning on page 157 of this Draft Red Herring Prospectus.

26. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies; 27. Inability to promptly identify and respond to changing customer preferences or evolving trends

28. Our ability to effectively manage the operations of and costs associated with our manufacturing facilities

29. We may not be able to sustain our historical growth rates, and our historical performance may not be indicative of our future growth or financial results. 30. Failure to successfully upgrade our product portfolio, from time to time;

31. Any change in government policies resulting in increases in taxes payable by us;

32. We rely on the continued operations of our manufacturing facilities and any slowdown, shutdown or disruption in our manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in our business and operations could have an adverse effect on our business, results of operations, financial condition and cash flows; 33. Our ability to retain our managements personnel and other employees;

34. We are dependent on certain customers for a portion of our revenues. Loss of relationship with any of these customers or a reduction in their demand for our products may have a material adverse effect on our profitability and results of operations; 35. Foreign exchange fluctuations may adversely affect our earnings and profitability; 36. Failure of our suppliers in meeting their obligations with respect to supply of raw materials and components; 37. Delay in expansion into new territories; 38. Changes in laws and regulations that apply to the industries in which we operate;

39. Failure to comply with quality standards may lead to cancellation of existing and future orders; 40. Our ability to grow our business;

41. The occurrence of natural disasters or calamities;

42. General economic, political and other risks that are out of our control;

43. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; 44. Companys ability to successfully implement its growth strategy and expansion plans; 45. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate; 46. Inability to successfully obtain registrations in a timely manner or at all;

47. Occurrence of Environmental Problems & Uninsured Losses;

48. Conflicts of interest with affiliated companies, the promoter group and other related parties; 49. Any adverse outcome in the legal proceedings in which we are involved; and

50. Concentration of ownership among our Promoters.

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the period ended September 30, 2023 and financial years ended on March 31, 2023, 2022 and 2021.

Revenue from operations mainly consists of revenue from sale of goods and services by providing products and solutions towards electronics system design and manufacturing ("ESDM") services.

Other income primarily comprises of Rent, Interest Income on FD, Discount Received, Duty Drawback, Exchange Fluctuation Gain, MEIS Licence sale.

Total expenses consist of operating cost like Cost of Material consumed, Change in inventories of finished goods, work-in-progress and Stock-in-Trade, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.

Cost of Material consumed expenses primarily comprises of Purchase of Raw & Packing Material.

Change in inventories of finished goods, work-in-progress and Stock-in-Trade comprises of increase/ (decrease) in stock of finished goods and WIP.

Employee benefits expense primarily comprises of salaries, wages, Bonus, Contribution to PF & Other Funds, Gratuity Expense and Staff welfare expenses.

Our Finance cost includes Interest expenses and Bank charges including processing fees.

Depreciation includes depreciation on Factory Building, Plant and Machinery, Furniture and Fixture, Vehicles (Cars), Electrical Equipment, Computers and Office Equipment.

Other Expenses consists of Expenses like: Administration Expenses, Advertisement, Audit Fees, Conveyance, CSR, Disbursement fees, Electricity for Factory, Exchange Fluctuation Loss, GST Expenses, Hotel exp, Insurance, Interest on TDS, Legal & Professional, Local tax expense, Manpower supply, Other local tax expense, Professional Tax, Repairs and maintenance, Selling and Marketing Exp., Shipping Charges, Software Upgradation / Renewal Charges, Telephone & Internet Charges, Travelling, Water, Warehouse / Storage Charges / Bonded Charges, Loss on sale of fixed assets and Other Expenses

Total income for the period ended September 30, 2023 stood at Rs. 4388.10 Lakhs. The total income consists of revenue from operations and other income.

During the period ended September 30, 2023 the net revenue from operation of our Company was Rs. 4306.77 Lakhs by providing products and solutions such as PCBA, Box-Build and End to End Solutions towards electronics system design and manufacturing ("ESDM") services in various industries relating to Automobiles, Gaming, Industrial Sector, Drones and UAV, Medical & Healthcare and Power.

During the period ended September 30, 2023 the other income of our Company stood at Rs. 81.34 Lakhs. Other income primarily comprises of Rent, Interest Income on FD, Discount Received, Duty Drawback, Exchange Fluctuation Gain, MEIS Licence sale.

Total expenses consist of operating cost like Cost of Material consumed, Change in inventories of finished goods, work-in-progress and Stock-in-Trade, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses. During the period ended September 30, 2023 the total expenses of our Company stood at Rs. 3453.38 Lakhs.

During the period ended September 30, 2023 the Raw material consumption expenses of our Company stood at Rs.2584.83 Lakhs. Our Raw material consumption expenses primarily comprises of Purchase of Raw & Packing Material and change in stock of raw material.

During the period ended September 30, 2023 Change in inventories of finished goods, work in progress and stock in trade of our Company stood at Rs 71.26 Lakhs. Change in inventories of finished goods, work-in-progress and Stock-in-Trade comprises of increase/ (decrease) in stock of finished goods and WIP.

During the period ended September 30, 2023 the employee benefit expenses of our Company stood at Rs.268.80 Lakhs. Employee benefits expense primarily comprises of salaries, wages, Bonus, Contribution to PF & Other Funds, Gratuity Expense and Staff welfare expenses.

During the period ended September 30, 2023 the Finance cost of our Company stood at Rs.81.42 Lakhs. Our Finance cost includes Interest expenses and Bank charges including processing fees.

During the period ended September 30, 2023 the Depreciation and amortization charges of our Company stood at Rs. 190.14 Lakhs. Depreciation includes depreciation on Factory Building, Plant and Machinery, Furniture And Fixture, Vehicles (Cars), Electrical Equipment, Computers and Office Equipment.

During the period ended September 30, 2023 the Other Expenses of our Company stood at Rs. 256.92 Lakhs. Other Expenses consists of Expenses like: Administration Expenses of Rs. 30.03 lakhs, Advertisement of Rs. 0.68 lakhs, Audit Fees of Rs. 2.00 lakhs, Conveyance of Rs.1.51 lakhs, CSR of Rs. 15.00 lakhs, Disbursement fees of Rs. 3.81 lakhs, Electricity for Factory of Rs. 25.67 lakhs, GST Expenses of Rs. 66.64 lakhs, Hotel exp of Rs. 0.55 lakhs, Insurance of Rs. 1.04 lakhs, Interest on TDS of Rs. 0.02 lakhs, Legal & Professional of Rs. 33.05 lakhs, Local tax expense of Rs. 2.76 lakhs, Manpower supply of Rs. 5.40 lakhs, Other local tax expense of Rs. 2.76 lakhs, Repairs and maintenance of Rs. 22.16 lakhs, Selling and Marketing Exp of Rs. 9.86 lakhs, Shipping Charges of Rs. 1.11 lakhs, Software Upgradation / Renewal Charges of Rs. 7.58 lakhs, Telephone & Internet Charges of Rs. 6.28 lakhs, Travelling of Rs. 11.24 lakhs, Water of Rs. 1.12 lakhs, Warehouse / Storage Charges / Bonded Charges of Rs. 1.62 lakhs, Loss on sale of fixed assets of Rs. 2.77 lakhs and Other Expenses of Rs. 2.24 lakhs.

The Company reported Restated profit before tax or period ending September 30, 2023 of Rs. 934.72 Lakhs.

The Company reported Restated profit after tax for period ending September 30, 2023 of Rs. 710.37 Lakhs.

Total income for the financial year 2022-23 stood at Rs 7239.98 Lakhs whereas in Financial Year 2021-22 the same stood at Rs. 2689.41 Lakhs representing an increase of 169.20%. The main reason of increase was increase in the volume of business operations of the company both Domestic and Export sales.

During the financial year 2022-23 the net revenue from operation of our Company increased to Rs. 7158.36 Lakhs as against Rs. 2631.92 Lakhs in the Financial Year 2021-22 representing an increase of 171.98%. The main reason of increase was due to increase in the sales of PCBA from 2093.06 Lakhs in the Financial Year 2021-22 as compared to Rs. 6299.77 Lakhs in the financial year 2022-23 representing an increase of 200.98%. Further during FY 23 we started manufacturing operations in our factory unit II at Bengaluru which led to addition of new customer base. Moreover the supply chain disruptions which our company faced in FY 21-22 due to the impact of COVID 19 relaxed during FY 22-23, which helped us to expand our operations.

During the financial year 2022-23 the other income of our Company increased to Rs.81.62 Lakhs as against Rs. 57.48 lakhs in the Financial Year 2021-22 representing an increase of 41.99% which was due to increase in income from (i) Rental income of Rs. 6.12 lakhs in the financial year 2022-23 as compared to Rs. 5.49 lakhs in financial year 2021-22 which amount to increase of 11.48%, (ii) Duty Drawback of Rs.66.51 lakhs in the financial year 2022-23 as compared to Rs. 33.30lakhs in financial year 2021-22 which amount to increase of 99.71%.

The total expense for the financial year 2022-23 increased to Rs. 6066.22 Lakhs from Rs. 2851.71 lakhs in the Financial Year 2021-22 representing an increase of 112.72%. Such increase was due to increase in the volume of business operations of the Company.

The Cost of material consumed for the financial year 2022-23 increased to Rs. 6067.05lakhs from Rs. 2449.85 lakhs in the Financial Year 2021-22 representing an increase of 147.65%. Such increase was due to increase in purchase of Raw & Packing materials from Rs 3397.62 lakhs in financial year 2021-2022 to Rs 7176.99 lakhs in financial year 2022-2023 representing a increase of 111.24%.

Our Change in inventories of finished goods comprises of increase/(increase) in finished goods and WIP. The closing inventories of finished goods for the financial year 2022-23 was Rs 544.46 lakhs as compared to Rs 5.74 lakhs in the Financial Year 2021-22 representing an increase of 9383.66%. The closing inventories of WIP for the financial year 2022-23 was Rs 1268.78 lakhs as compared to Rs. 415.03 lakhs in the Financial Year 2021-22 representing an increase of 205.71%. This was primarily due to higher level of closing stock at end of financial year 2022-23 compared to financial year 2021-22.

Our Company has incurred Rs. 477.41 Lakhs as Employee benefits expense during the financial year 2022-23 as compared to Rs. 395.44 Lakhs in the financial year 2021-22. The increase of 20.73% was due to increase in (i) Salaries of Rs. 314.24 lakhs in the financial year 2022-23 as compared to Rs. 283.19 lakhs in financial year 2021-22 which amount to increase of 10.96 %, (ii) Wages of Rs.110.87 lakhs in financial year 2022-23 as compared to Rs. 77.41lakhs in financial year 2021-22 which amount to increase of 43.23%, (iii) Contribution to PF & other Funds of Rs. 25.74 lakhs in the financial year 2022-23 as compared to Rs. 20.39 lakhs in financial year 2021-22 which amount to increase of 26.22%.

Our Company has incurred Rs. 138.15 Lakhs as finance cost during the financial year 2022-23 as compared to Rs. 12.46 Lakhs in the financial year 2021-22. The increase of 1009.10% was due to increase in term loan taken for capex at our new factory unit II and due to increase in Cash Credit limits availed from banks to facilitate increased business operations.

Depreciation for the financial year 2022-23 stood at Rs. 426.81 Lakhs as against Rs. 147.11 Lakhs during the financial year 2021-22. The increase in depreciation was around 190.12% which was due to addition in Plant & Machinery, Furniture & Fittings, Electrical Equipment Computers and Office Equipment

Our Company has incurred Rs. 352.48 Lakhs during the Financial Year 2022-23 on other expenses as against Rs. 235.96 Lakhs during the financial year 2021-22. There was an increase of 49.38% mainly due (i) increase in Exchange fluctuation loss by 552.14% from Rs. 10.40 lakhs in financial year 2021-22 to Rs. 67.83 lakhs in financial year 2022-23, (iii) increase in Electricity Charges by 42.59% from Rs. 30.97 lakhs in financial year 2021-22 to Rs. 44.16 lakhs in financial year 2022-23, (iv) increase in Hotel Expenses by 275.16% from Rs. 0.70 lakhs in financial year 2021-22 to Rs. 2.62 lakhs in financial year 2022-23 (v) increase in Manpower supply by 77.98 % from Rs. 5.93 lakhs in financial year 2021-22 to Rs 10.56 lakhs in financial year 2022-23 (vi) increase in Shipping charges by 2553.96 % from Rs. 0.13 lakhs in financial year 2021-22 to Rs. 3.52 lakhs in financial year 2022-23 (vii) increase in water Charges by 57.97 % from Rs. 1.32 lakhs in financial year 2021-22 to Rs. 2.09 lakhs in financial year 2022-23, (viii) increase in Repair & Maintenance by 420.70% from Rs.28.76 lakhs in financial year 2021-22 to Rs. 23.81 lakhs in financial year 2022-23, (ix) increase in Administration Expenses by 72.97% from Rs.33.97 lakhs in financial year 2021-22 to Rs. 19.64 lakhs in financial year 2022-23, (x) increase in Advertisement Expenses by 183.6% from Rs.10.49 lakhs in financial year 2021-22 to Rs. 3.70 lakhs in financial year 2022-23, (xi) increase in audit fees by 130.77% from Rs.6.00 lakhs in financial year 2021-22 to Rs. 2.60 lakhs in financial year 2022-23, (xii) increase in Conveyance Expenses by 36.0% from Rs.4.43 lakhs in financial year 2021-22 to Rs. 3.26 lakhs in financial year 2022-23. However, the increase was partially offset by decrease in, Software Upgradation / Renewal Charges by 17.24 lakhs, other local tax expense by 10.54 lakhs, among others.

Net profit before tax for the financial year 2022-23 increased to Rs. 1173.76 Lakhs as compared to loss of Rs (162.30) Lakhs in the financial year 2021-22. The increase of 823.19% was majorly due to factors as mentioned above.

As a result of the above factors, our profit after tax for the year increase by 579.15% from net loss of Rs. (180.15) Lakhs in in financial year 2021-22 to net profit Rs. 863.19 lakhs in financial year 2022-23. Consequently, our PAT Margin expanded to 12.06% in financial year 2022-23 from (6.84) % in financial year 2021-22.

Total income for the financial year 2021-22 stood at Rs. 2689.41 Lakhs whereas in Financial Year 2020-21 the same stood at Rs. 5406.18 Lakhs representing a decrease of 83.12%. The main reason of decrease was decrease in the volume of Exports of the company from Rs 4731.52 lakhs in financial year 2020-21 as compared to Rs 1758.92 lakhs in financial year 2021-22. The total income consists of revenue from operations and other income.

During the financial year 2021-22 the net revenue from operation of our Company decreased to Rs 2631.92 Lakhs as against Rs. 5277.93 Lakhs in the Financial Year 2020-21 representing a decrease of 100.54%. The main reason of decrease in the volume of operations was due to the supply chain disruptions. The shortage of labour, local and international restrictions impacting the transport and logistics arising due to COVID-19 contributed to a bottleneck in supply for the raw materials and components in the industry. The company therefore could deliver the finished products and revenue from operations were impacted. The revenue from Box-Build services in financial year 2020-21 was Rs 4276.23 lakhs which decreased to Rs 434.18 lakhs in Financial year 2021-22 representing a decrease of 884.90%. The company could majorly generate its revenue from sale of PCBA which amounted to Rs 2093.06 lakhs in FY 21-22.

During the financial year 2021-22 the other income of our Company decreased to Rs. 57.48 Lakhs as against Rs. 128.25 lakhs in the Financial Year 2020-21 representing a decrease of 55.18% which was due to decrease in income from (i) MEIS License sale of Rs. 7.22 lakhs in the financial year 2021-22 as compared to Rs. 40.59 lakhs in financial year 2020-21 which amount to decrease of 82.21%, (ii) The company earned Exchange Fluctuation of Rs. 48.64 lakhs in financial year 2020-21 whereas there was Exchange fluctuation loss in FY 21-22 of Rs 10.40 lakhs.

The total expense for the financial year 2021-22 decreased to Rs. 2851.71 Lakhs from Rs. 3305.34 lakhs in the Financial Year 2020-21 representing a decrease of 13.72%. Such decrease was due to decrease in volume of business operations of the Company. However some fixed costs were continued to be borne by the company.

The Cost of Raw material consumed for the financial year 2021-22 decreased to Rs. 2449.85 lakhs from Rs. 2854.00 lakhs in the Financial Year 2020-21 representing a decrease of 14.16%. Such decrease was due to decrease in volume of overall operations of the company.

Our Change in inventories of Finished goods comprises of increase/(increase) in finished goods and WIP. The closing inventories of WIP for the financial year 2021-22 was Rs 415.03 lakhs as compared to Rs. 33.55 lakhs in the Financial Year 2020-21 representing an increase of 1137.23%. This was primarily due to higher level of closing stock at end of financial year 2021-22 compared to financial year 2020-21.

Our Company has incurred Rs. 395.44 Lakhs as Employee benefits expense during the financial year 2021-22 as compared to Rs. 282.15 Lakhs in the financial year 2020-21. The increase of 40.15% was due to increase in (i) Salaries of Rs. 283.19 lakhs in the financial year 2021-22 as compared to Rs. 171.41 lakhs in financial year 2020-21 which amount to increase of 65.21%, (ii) wages of Rs. 77.41 lakhs in the financial year 2021-22 as compared to Rs. 58.58 lakhs in financial year 2020-21 which amount to increase of 32.14% (iii) Contribution to PF & Other Funds of Rs. 25.74 lakhs in the financial year 2021-22 as compared to Rs. 20.39 lakhs in financial year 2020-21 which amount to increase of 71.51% (iv) Staff Welfare Expenses of Rs. 6.54 lakhs in the financial year 2021-22 as compared to Rs. 2.86 lakhs in financial year 2020-21 which amount to increase of 128.81%.

Our Company has incurred Rs. 12.46 Lakhs as finance cost during the financial year 2021-22 as compared to Rs. 3.23 Lakhs in the financial year 2020-21. The increase of 285.91% was due to increase in interest charges and Bank Charges including processing fees.

Depreciation for the financial year 2021-22 stood at Rs.147.11 Lakhs as against Rs. 67.73 Lakhs during the financial year 2020-21. The increase in depreciation was around 117.20% which was due to significant addition in Plant and Machinery.

Our Company has incurred Rs. 235.96Lakhs during the Financial Year 2021-22 on other expenses as against Rs. 132.11 Lakhs during the financial year 2020-21. There was an increase of 78.61% mainly due (i) increase in Advertisement by

226.33% from Rs. 1.13lakhs in financial year 2020-21 to Rs. 3.7 lakhs in financial year 2021-22, (ii) increase in Conveyance by 78.18% from Rs. 1.83 lakhs in financial year 2020-21 to Rs 3.26 lakhs in financial year 2021-22, (iii) increase in Disbursement fees by 112.26% from Rs. 2.76 lakhs in financial year 2020-21 to Rs. 5.85 lakhs in financial year 2021-22, (iv) increase in Insurance by 19.98% from Rs. 3.38 lakhs in financial year 2020-21 to Rs. 4.06 lakhs in financial year 2021-22 (v) increase in Legal & Professional by 67.56 % from Rs. 19.29 lakhs in financial year 2020-21 to Rs 32.33 lakhs in financial year 2021-22 (vi) increase in Repairs and maintenance charges by 3588.60 % from Rs. 14.37 lakhs in financial year 2020-21 to Rs.28.76 lakhs in financial year 2021-22 (vii) increase in Software Upgradation / Renewal Charges by 257.74 % from Rs. 6.88 lakhs in financial year 2020-21 to Rs. 24.63 lakhs in financial year 2021-22, (viii) increase in Travelling by 123.96 % from Rs.9.96 lakhs in financial year 2020-21 to Rs. 22.31 lakhs in financial year 2021-22 etc. However, the increase was partially offset by decrease in, water expenses by 0.69 lakhs, Telephone & Internet Charges by 6.15 lakhs, among others.

During the financial year 2021-22 the company incurred loss of Rs. (162.30) Lakhs as compared to profit before tax of Rs. 2100.85 Lakhs in the financial year 2020-21. The loss was majorly due to factors as mentioned above.

Consequently as a result of the above factors, our profit after tax for the year decreased by 972.44% from net profit of Rs1571.72 Lakhs in in financial year 2020-21 to net loss of Rs. (180.15) lakhs in financial year 2021-22.

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Draft Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 27 of the Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 27, 112 and 196 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

Our company operates in a single product segment. For details on geographical segment please refer "Annexure IV" forming part of "Financial Information of the Company" on page 157 of the Draft Red Herring Prospectus

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 97 and 112 respectively.

8. Dependence on single or few customers

During the stub period ended on September 30, 2023 and for the FY 22-23, FY 21-22 and FY 20-21 our top 10 customers contributed to 92.46 %, 96.70 %, 94.66 % and 98.58 % of our revenue from operations. Our largest customer, being our Group Company, Aimtron Corporation, USA contributed to approximately 54.69%, 55.99%, 49.42% and 7.78% of our revenue from operations. For further information, see "Risk Factors" on page 27 of this Draft Red Herring Prospectus.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 97 and 112 respectively of this Draft Red Herring Prospectus.

After the date of last Balance sheet i.e. March 31, 2023, the following material events have occurred after the last audited period

1. We have passed a Resolution in the meeting of Board of Directors dated November 01, 2023 authorizing the Board of Directors to raise funds by making an Initial Public Offering.

2. We have passed a special resolution in the Extra-ordinary General meeting dated November 02, 2023 authorizing the Board of Directors to raise funds by making an Initial Public Offering.

3. A special resolution has been passed by the shareholders at the Extra Ordinary General Meeting held on October 20, 2023 for approving the conversion of company from private limited to public limited company and for consequent change of name of our Company from "Aimtron Electronics Private Limited" to "Aimtron Electronics Limited" which has been approved by the ROC, Ahmedabad vide a fresh certificate of incorporation dated October 31, 2023.

4. Our Company has approved the Restated Financial Statements for the stub period ended on September 30, 2023 and financial year ended March 31, 2023, March 31, 2022 and March 31, 2021 in the Board meeting dated December 14, 2023.

5. Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated December 18, 2023