Aimtron

We offer a diversified range of products.

Engineering expertise with complex product manufacturing capability.

Long term and well-established relationships with OEM customers.

Quality Assurance.

Experienced and Qualified Management and Employee base.

Stable financial performance.

Its business is dependent on the sale of the company products and services to certain key customers including its Group Companies. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company operates in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in the company`s net revenues and profitability.

The company is significantly dependent on revenue from sale of PCBA. An inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.

The company has a history of net losses and its current profits does not reflect its future performance.

Its business is dependent on the company`s manufacturing facilities and the company is subject to certain risks in its manufacturing process. Technology failures, Cyber-attacks, other security breaches or obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same could have a material adverse effect on its business, results of operation or financial condition may affect its business, cash flows, financial condition and results of operations.

Inventories and trade receivables form a major part of its current assets. Failure to manage the company`s inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.

There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/ 2013. Moreover the company is unable to trace some of its historical records. Any penalty or action taken by any regulatory authorities in future, for non- compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

The company has in the past been in non-compliance with certain reporting requirements under FEMA Regulations, within the prescribed period.

Any delay, interruption or reduction in the supply of raw materials to manufacture its products may adversely affect its business, results of operations, cash flows and financial condition.

The company business is substantially dependent on its design and engineering teams to accurately carryout the estimates and engineering studies for potential orders. Any deviation during the execution of the order as compared to its estimates could have a material adverse effect on its cash flows, results of operations and financial condition.

Its reliance on certain industries for a significant portion of its sales could have an adverse effect on the company`s business.

The company is subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company`s business and results of operations and future prospects.

The company derives a majority portion of its revenues from exports and are subject to risk of international trade.

The Company operates under several statutory and regulatory approvals in respect of its operations. Failure to obtain or maintain licenses, registrations, permits and approvals may affect its business and results of operations.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

The company has had negative cash flows from operating activities in the past and may continue to have negative cash flows in the future.

Restrictions on import and an increase in shipment cost may adversely impact its business, cash flows and results of operations.

The company currently avail benefits under the EPCG licenses. In order to continuously avail the benefits, the company is required to export goods of a defined amount. Any failure in meeting the obligations its may be liable to pay duty proportionate to unfulfilled obligations along with interest.

Some of its Group Companies and Promoter Group Entities operates in the same line of business as it, which may lead to conflict of interest.

Its manufacturing activities requires deployment of labour and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.

The company may be subject to risks associated with product warranty.

The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.

The company`s manufacturing facility at Vadodara is located on premises leased by the GIDC. If the company is unable to renew these leases or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.

Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on its business and financial condition.

Its logo is not registered under Trademarks Act, 1999. The trademark application for its logo is Marked for Exam. There might be insufficient protection for the company intellectual property rights, potentially leading to significant negative impact on its business and results of operations.

The company is dependent on third party transportation providers and favourable international relations for the delivery of its raw materials, components and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.

The company is exposed to foreign currency fluctuation risks, which may affect its results of operations.

The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.

Under-utilization of its manufacturing capacities may have an adverse effect on the company`s business, future prospectus and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

The Company may not be successful in penetrating new export markets.

Activities involving its manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect its production schedules, costs, sales and ability to meet customer demand.

The company is dependent on its promoters and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.

The Company has taken unsecured loans that may be recalled by the lenders at any time.

Its contingent liabilities as stated in its Restated Financial Statements could affect the company`s financial condition.

Its lenders have charge over the company immovable and movable properties in respect of finance availed by it.

The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.

Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.

Industry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.

The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.

Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.

There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.

Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.

Excessive dependence on ICICI Bank in respect of Loan facilities obtained by the Company.

The company is subject to certain restrictive covenants in debt facilities provided to it by its lenders.

The average cost of acquisition of Equity Shares by its Promoters is lower than the face value of Equity Share.

Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which its may not be able to procure and any future equity offerings by it.

The Issue price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.

QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.