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calculated in accordance with the terms of our agreement. However, one of our agreements provides an
option to the bank to take over the ATM and its related assets at zero cost upon the expiry of the
agreement. We may not be able to recover our investments made in the installation, maintenance and
management of such ATMs where the ATM and the ATM site were purchased at a price unfavourable to
us. Such instances may adversely affect our business, results of operations, cash flows and financial
condition.

We may be subject to claims arising out of accidents or injuries at the sites of Automated Teller
Machines (ATMs) that are operated or maintained by us or involving our security vans. Such claims
could subject us to significant disruptions in our business, legal and regulatory actions, costs and
liabilities.

 

We have in the past been subject to claims arising out of accidents or injuries at the sites of ATMs that
are operated or maintained by us. We are also involved in a number of outstanding legal proceedings
claiming compensation for deaths, accidents or injuries from our operations at our ATMs or involving
security vans of SVIL. See “Outstanding Litigation and Material Developments~ Litigation involving
our Subsidiaries — Litigation against our Subsidiaries” on page 367 for details of all claims arising out of
accidents or injuries. Any such claims could subject us to significant disruption in our business, legal and
regulatory actions, costs and liabilities, which could adversely affect our reputation, business, results of
operations, cash flows and financial condition.

We face difficulties and incur additional expenses in operating in certain markets, where
infrastructure may be limited.

As we expand our network, we may enter certain markets that may have limited or unreliable
infrastructure, particularly for IT and road transportation. We may face difficulties and increased costs in
operating our devices and business at these markets, including implementing adequate security measures
or ensuring continuous operations. As we expand our network in such markets, we may have to bear
additional costs, which could have an adverse effect on our business, results of operations, cash flows
and financial condition.

Our inability to operate our business in international markets successfully will affect our growth
which may have an adverse effect on our business, results of operations, cash flows and financial
condition.

Expanding into international markets is important to our long-term success and we are currently present
in Sri Lanka, Singapore, Cambodia and Philippines and in Indonesia through a joint venture. Competing
successfully in international markets requires additional management attention and resources to tailor our
services to the unique aspects of each country. In increasing our headcount and our revenue generated in
foreign countries, we face various risks, including:

challenges caused by distance, language and cultural differences;

credit risk and higher levels of payment fraud;

legal and regulatory restrictions;

differences in legal and regulatory jurisdictions;

currency exchange rate fluctuations;

foreign exchange controls that might prevent us from repatriating cash earned in foreign countries;
political and economic instability and export restrictions;

potentially adverse tax consequences; and

higher costs associated with doing business internationally.

These and other risks could adversely affect our international expansion and growth, which could have
an adverse effect on our business, results of operations, cash flows and financial condition.

We have a substantial amount of outstanding indebtedness, which requires significant cash flows to
service, and limits our ability to operate freely.

As of August 31, 2021, the outstanding amount of our Gross Debt was 2 16,544.97 million, including an
aggregate amount of 25,606.26 million of Listed NCDs issued through a private placement in the
financial year 2021, see “Capitalization Statement” and “Capital Structure — Non-Convertible
Debentures” on pages 314 and 102, respectively. Although there has been no change in credit rating of
the Listed NCDs issued by us, we cannot assure you that there will be no change in the credit ratings of
our NCDs in the future. Our ability to meet our debt service obligations and repay our outstanding

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