See ‘~ Dependence on a Few Customers and Suppliers” on page 356.
Government Regulation and Policy

The payments and banking industries in India, and more specifically, the installation, maintenance and
management of ATMs and the installation and servicing of payment systems, are regulated and the regulatory
environment has been subject to changes in the past. In addition, interchange fees, which are the fees charged by
one bank for usage of another bank’s ATM card on the first bank’s ATM machines, in India is set by member
organisations such as the National Payments Corporation of India. Any potential future governmental or other
actions that affect the amount of interchange fees that can be assessed on a transaction will affect our revenues.

Government policies may also affect our business. For example, the withdrawal of the two largest
denominations as part of the demonetization in India in November 2016 and the resultant shortage of banknotes
led to customers being unable to withdraw cash at ATMs. This contributed to a decline in the number of
transactions on the ATM network and lower growth in the managed services market in the financial year 2017.
Further, the Government of India, pursuant to a notification dated January 28, 2020, has mandated that all
RuPay debit card transactions be free of charge, and we are therefore no longer able to charge fees on such
transactions.

In addition to India, we also operate in select Asian countries, and laws and regulations vary substantially in
each of these countries. The extensive regulatory structures under which we carry out our operations influences
our flexibility to respond to market conditions, competition or changes in our cost structure.

For further details, please see the sections “Key Regulations and Policies” and “Government and Other
Approvals” on pages 177 and 384, respectively.

Capital Requirements and Availability of Funding

Our business is capital intensive, as a substantial amount of capital is required to build, maintain and operate an
ATM network and infrastructure. Further, we would require a significant amount of capital to purchase or
manufacture automated products, develop and implement new technologies, acquire and invest in new
businesses and expand our operations into new jurisdictions. We expect that our capital expenditures for the
financial years 2022 and 2023 will be up to % 1,250.00 million and % 1,500.00 million, respectively. To the
extent that our capital requirements exceed available resources, we will be required to seek additional debt or
equity financing. Additional debt financing could increase our interest expense and may require us to comply
with additional restrictive covenants under our financing agreements. Our ability to obtain additional financing
will also depend on a number of factors, including our future financial condition, results of operations and cash
flows, general market conditions and economic, political and other conditions in the markets where we operate.
Our ability to finance our capital needs, and secure other financing when needed, on acceptable terms, is a key
factor in the operation of our business.

Market Conditions and Demand for our Products and Services

Our results of operations depend on the continued existence, success and growth of, and demand for, our various.
products and services. Developments in the global and Indian economy influence the decisions of enterprises to
determine their spending for payment transactions and automation solutions, thereby affecting the demand for
our products and services.

Sales to Indian customers have comprised a majority of our total revenues, so consequently, our operating
results depend on general economic conditions in India. With India’s real GDP growth rate expected to be 9.5%
in calendar year 2021 (Source: Ken ATM Report) and the Government's focus on financial inclusion, we expect
the demand for our products and services to grow. Further, as we have also started expanding our operations to
Southeast Asian and other countries, our results could be affected by economic conditions in those markets.

Operating Expenses
Employee benefit expenses represent a significant portion of our expenses. Employee benefit expenses were

% 1,088.12 million, = 2,771.66 million, = 2,800.76 million and % 2,748.80 million, or 19.1%, 21.0%, 20.9% and
19.9% of our total expenses before interest, depreciation and amortisation, for the five months ended August 31,

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