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such Banking Outlets, operational risks including integration of internal controls and procedures, compliance with KYC,
AML and other regulatory norms, ensuring customer satisfaction, recruiting, training and retaining skilled personnel,
failure to manage service providers in relation to any outsourced services and difficulties in the integration of new Banking
Outlets with our existing network of Banking Outlets. Further, as we are required to establish at least 25.00% of our total
Banking Outlets in unbanked rural centres, we may be compelled to enter into markets that may not be profitable or
strategically aligned with our business operations. To address these challenges, we may have to make significant
investments that may not yield desired results or incur costs that we may not be able to recover. If we are unable to
implement such growth strategies, our business, results of operations, financial condition and cash flows will be adversely
affected.

We depend on our brand recognition, and failure to maintain and enhance awareness of our brand would adversely
affect our ability to retain and expand our base of customers.

We believe that any damage to the brand “Suryoday” or to our reputation could substantially impair our ability to maintain
or grow our business, or could have a material adverse effect on our overall business, financial condition, results of
operations and cash flows. If we fail to maintain this brand recognition with our existing and target customers due to any
issues with our product offerings, a deterioration in service quality, or otherwise, or if any premium in value attributed to
our business or to the brands under which our services are provided declines, market perception and customer acceptance
of our brands may also decline. We also distribute third-party products via partnerships with external organizations over
whom we have limited control. Any negative publicity/ press affecting such external organizations might also affect our
reputation and brand value. In such an event, we may not be able to compete for customers effectively, and our business,
financial condition and growth prospects may be materially and adversely affected.

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Our trademark and logo is approved by Trade Mark Registry under Trade Marks Act, 1999. For further
information, see “Our Business — Intellectual Property” on page 170. Further, the registration obtained is limited for a
duration of 10 years and may be required to be renewed from time to time. There can be no assurance that we will be able
to successfully renew the registration in a timely manner or at all. As a result, we may not be able to prevent infringement
of our trademarks and a passing off action may not provide sufficient protection until such time that this registration is
granted. We may also be harmed by the actions of or negative press relating to entities which have similar names. Any
unauthorized or inappropriate use of our brand, trademarks and other related intellectual property rights by others in their
corporate names or product brands or otherwise could harm our brand image, competitive advantages and business, and
dilute or harm our reputation and brand recognition.

Further, if a dispute arises with respect to any of our intellectual property rights or proprietary information, we will be
required to produce evidence to defend or enforce our claims, and we may become party to litigation, which may strain
our resources and divert the attention of our management. We cannot assure you that any infringement claims that are
material will not arise in the future or that we will be successful in defending any such claims when they arise. Our efforts
to protect our intellectual property or proprietary information and the measures we take to identify potential infringement
of our intellectual property may not be adequate to detect or prevent infringement, misappropriation or unauthorized use.
Further, the application of laws governing intellectual property rights in India is continuously evolving and there may be
instances of infringement or passing-off of our brand in Indian markets. Our failure to adequately protect our brand,
trademarks and other related intellectual property rights may adversely affect our business, financial condition, results of
operations and cash flows. We may also be subject to claims by third parties, both inside and outside India, if we breach
their intellectual property rights by using taglines, names, designs, software or other such subjects, which are of a similar
nature to the intellectual property these third parties may have registered. Any legal proceedings that result in a finding
that we have breached third party intellectual property rights, or any settlements concerning such claims, may require us
to provide financial compensation to such third parties or make changes to our marketing strategies or to the brand names
of our products, which may have a materially adverse effect on our brand, business, prospects, financial condition, results
of operations and cash flows.

Any adverse developments in the commercial vehicle finance segment could adversely affect our business and results
of operations.

We commenced advancing commercial vehicle finance to road transporters for commercial vehicles, used for a range of
commercial purposes such as market loading operations, contract transportation and logistics services in the Fiscal 2018.
We provide commercial vehicle finance primarily for new commercial vehicles. As of December 31, 2020, commercial
vehicle finance represented 9.42% of our Gross Loan Portfolio.

The success of our business therefore depends on various factors that affect demand for these loan products, including the
industry for commercial vehicles, the demand for transportation services in India, changes in Indian regulations and
policies affecting utility vehicles, tractors, commercial vehicles and cars, fuel prices and other macroeconomic conditions
in India and globally. Any significant deterioration in the performance of this sector driven by events not within our
control, such as natural calamities and pandemics, regulatory action or policy announcements by central or state

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