FINANCIAL INDEBTEDNESS

Except for the outstanding borrowings of one of our Subsidiaries, Optival, there are no outstanding borrowings of our Company
or any of our Subsidiaries.
Set forth below is a brief summary of the borrowings of Optival, on a consolidated basis, as at September 30, 2021:

 

 

 

 

 

 

(@ in million)
Category of borrowing Sanctioned amount Outstanding amount*
Cash credit 1,750.00 568.18
Non-fund based limits 100.00 Nil
Overdraft against fixed deposit 9.50 (0.70)
Total 1,859.50 567.48

 

 

 

 

*As certified by GPHK & ASSOCIATES, Chartered Accountants, by way of certificate dated November 27, 2021

Principal terms of the subsisting borrowings of Optival:

L.

2.

Purpose: The facilities were availed to meet the business and working capital requirements of Optival.

Interest: The interest rate for the facilities availed by Optival is either fixed at 8.5% or floating, based on the marginal
cost of fund based lending rates.

Penalty: Penal interest rates ranging from 2% to 18% have been stipulated on the occurrence of certain events such as
payment related delay, default, drawings over limit, etc.

Tenor: The tenor of the facilities availed by Optival ranges from seven months to one year.

Security: The secured facilities availed by Optival are typically secured by way of a pari passu charge on current
assets, including stock and book debts of Optival, a pari passu charge on several immovable fixed assets of Optival
and lien on term deposits. The collateral for these facilities is typically a fixed deposit, and guarantees have been
provided by our Company and by our Individual Promoter, Gangadi Madhukar Reddy. Further, Optival is required to
furnish additional security to the satisfaction of lenders in the event that the security provided depreciates in value.

Prepayment: The facilities availed by Optival allow prepayment. Certain facilities allow for prepayment of the
outstanding amount by serving notice to the lender. Prepayment is subject to prepayment penalties as may be
prescribed. These prepayment penalties range from 1.00% to 4.00% of the amount being prepaid, or as may be advised
by the lender at the time of prepayment. Further, in certain cases Optival is restricted from prepaying amounts
outstanding without the prior written approval of the lender.

Re-payment: Repayment for the facilities availed by Optival is on demand.

Events of Default: Borrowing arrangements entered into by Optival prescribe events of default, including among
others:

a) Failure or inability to pay amount on due dates;

b) Failure to pay accrued interest;

c) Any notice in relation to actual or threatened liquidation, dissolution, bankruptcy or insolvency of Optival;
d) Change of general nature or cessation of business;

e) Incorrect or false information;

f) Usage of the loan for purposes other than the purpose for which it was sanctioned by the lender;

g) Failure to provide additional security on depreciation of security provided earlier;

h) Cross defaults across other borrowings of Optival;

i) Breach of any terms and conditions, including financial covenants in the loan documents; and

p Any other event or circumstance that has a material adverse effect on the lender.

This is an indicative list and there may be additional terms that may amount to an event of default under the various
borrowing arrangements entered into by Optival.

Consequences of occurrence of events of default: In terms of the loan documents, the following, among others, are
the consequences of occurrence of events of default, whereby the lenders may:

a) Declare any or all amounts under the facility, either whole or in part, as immediately due and payable to the
lender;

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