27.

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receivables. As of August 31, 2021 and March 31, 2021, 2020 and 2019, our total outstanding trade and
unbilled receivables, which consists of trade receivables and unbilled receivables, were
% 7,704.61 million, = 8,088.24 million, % 6,159.42 million and 2 5,614.85 million, respectively, which
constituted 102.26%, 45.98%, 34.21%, 31.09% of our revenues from operations for the same periods.
The increase in total outstanding trade and unbilled receivables by 31.3% from March 31, 2020 to March
31, 2021 was primarily due to delays in collections on account of lockdowns due to the COVID-19
pandemic. As of August 31, 2021, our disputed trade receivables which were considered good was
% 43.46 million, constituting 0.6% of our trade and unbilled receivables, of which = 33.80 million,
% 2.61 million, = 5.55 million and 2 1.50 million were outstanding for less than 6 months, 6 months to a
year, one to two years and two to three years, respectively. Although none of our outstanding trade and
unbilled receivables as of August 31, 2021 and March 31, 2021, 2020 and 2019 were classified as bad
debts, we cannot assure you that our trade and unbilled receivables will not be classified as bad debts in
the future. If such delays or default in client payments continue or increase in proportion to our total
revenues, our profits margins could be adversely affected.

The industries in which we operate are highly competitive and such competition may increase, which
may adversely affect our business, results of operations, cash flows and financial condition.

Our businesses are and can be expected to remain highly competitive. For our banking sector operations
in our Banking Automation Solutions and Payment Solutions business segments, our principal
competition comes from independent ATM manufacturers and managed services providers and national
and regional financial institutions. We compete with our competitors for the sale, operations and
maintenance of ATMs and they could also prevent us from obtaining or maintaining desirable locations
for our ATMs, causing a reduction in the revenue generated by transactions at our ATMs and thereby
reducing our profits. In our Payment Solutions segment, our competitors include other cash management
companies, commercial banks and other POS and mPOS players. For example, in recent years, new
players such as payment banks, fintech companies and banks that are expanding their digital ecosystem,
have entered the digital payments space. See “Industry Overview” on page 116. We cannot assure you
that we will be able to compete effectively against these current and future competitors. Increased
competition could result in reduction of transaction fees, reduced gross margins and loss of market share,
which may adversely affect our business, results of operations, cash flows and financial condition.

We may be held liable for claims from customers on account of any defects in service or
manufacturing defects in the products we supply, including penalty for delay in implementation of
contracts with customers, which may have an adverse effect on our reputation, business, results of
operations, cash flows and financial condition.

We have entered into contracts with our customers where we are required to provide a variety of products
and services. In the event of any loss caused to our customer on account of an act or omission by us and
such act or omission being a breach of the customer agreement, we may be held liable for the same and
may be required to make good such losses and pay damages, which in turn could have an adverse effect
on our reputation, business, results of operations, cash flows and financial condition.

Further, we may be exposed to warranty and other claims for manufacturing defects in the products
supplied under certain customer contracts, including warranty for any software provided by us to our
customers. Although we have not been subject to any claims from our customers in the last three
financial years, we cannot assure you that we will not be subject to claims from our customers in the
future. In the event of any of our customers claiming that there are defects in the products, we may be
subject to damages and other costs, which may adversely affect our reputation, business, results of
operations, cash flows and financial condition.

The contracts for our ATM outsourcing and managed services and petroleum sector-related services with
our customers are generally time bound and certain contracts contain provisions which may attract
payment of penalty to the customer in the event of a delay or failure in delivery of services or termination
of contract with our customer in the event of breach. Failure to adhere to contractually agreed timelines
for reasons other than force majeure events or failure to maintain specified minimum ATM uptimes
could make us liable to pay liquidated damages or lead to forfeiture of security deposits. Such contracts
also impose penalties in relation to service deposits, including failure to ensure minimum availability of
such ATMs, cash-outs and dispensing counterfeit currency.

Further, under our ATM outsourcing contracts, upon the termination of our agreement with the banks,
the banks typically have a right to take over and purchase the ATM and its related assets at a price

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