We are dependent on, and derive a substantial portion of our revenue from, a single customer, Signify
Innovations India Limited, erstwhile Philips India, and over 85% of our revenue is derived from our top twenty customers on a restated basis and a proforma consolidated basis for the nine months ended December 31, 2022 and Fiscal 2022.
In the nine months ended December 31, 2022 and in Fiscal 2022, Fiscal 2021 and Fiscal 2020,
Signify Innovations India Limited accounted for 70.04%, 91.23%, 94.60% and 95.63%, respectively, of our
restated revenue from operations and accounted for 51.31%, 60.45%, 70.76% and 61.07%, respectively, of our proforma consolidated revenue from operations.
Cancellation by our top customers or delay or reduction in their orders could have a material adverse effect on our business, results of operations and financial condition.
Further, our Company has no long term written agreement with our customers, and, typically our key
customers share a sales plan for the forthcoming quarter or six months, followed by purchase orders on a monthly basis.
Based on an analysis done by F&S and as set out in our Company Commissioned F&S Report, F&S estimates that our Company has a wallet share of approximately 45% (Wallet share refers to how much of a customer’s expenses for a category of product or service goes to a particular company). Accordingly, our Company opines that the long term relationship is mutually beneficial to both Signify (Phillips) and our Company. While our Company has expanded its customer base (including through its wholly owned subsidiaries), we expect that in the future a limited number of customers will continue to comprise a significant percentage of our operating revenue.
In the EMS manufacturing, our revenues are dependent on the sale of products by our customers under their own brand names. We rely on the success of our customers in marketing and selling of these products and therefore any negative impact on their reputation may also have an effect on our business