determined through negotiations between us and our customers and could be reduced over time due to
factors such as increased competition and lower demand for cash-based services and availability of other
technology solutions. Further, under certain arrangements with banks, such transaction fees are not
automatically adjusted for increases in our costs, including due to inflation. In addition, regardless of the
number of transactions at an ATM, we continue to pay certain fixed costs such as rent and electricity, as
well as recognize depreciation on such assets.

Consequently, any adverse development in the growth of the number of ATMs in India, reduction in
transaction fees or a decline in the usage of the ATMs managed, operated and maintained by us could
have an adverse effect on our business, results of operations, cash flows and financial condition.

We derive a substantial portion of our revenues from a limited number of customers. If one or more of
our top customers were to suffer a deterioration of their business, cease doing business with us or
substantially reduce its dealings with us, our revenues could decline, which may have an adverse
effect on our business, results of operations, cash flows and financial condition.

The following table sets out our revenues from certain of our customers, namely ICICI Bank Limited,
Bank of Baroda and Axis Bank Limited, each of whom constituted more than 10% of our total income
for the five months ended August 31, 2021 and the financial years 2021, 2020 and 2019:

(2 in millions, except for percentages)

 

 

 

 

 

 

 

 

Five months ended Financial Years
August 31, 2021
2021 2020 2019

Customers % of % of % of % of
Revenue Revenue Revenue Revenue

Revenue | “from | Revenue | gon | Revenue | “gon | Revenue | “on

Operations Operations Operations Operations

ICICI Bank Limited | 1,118.87 14.9% | 3,134.11 17.8% | 3,926.26 21.8% | 3,907.24 21.6%
‘AXIS Bank Limited 974.48 12.9% | 2,542.99 145% | 2,438.01 13.5% | 2,021.26 11.2%
Bank of Baroda 735.96 5.8% | 1,252.11 71% | 1,459.06 8.1% | 2,233.81 12.4%

 

 

 

 

 

 

 

 

 

For the five months ended August 31, 2021, and financial years 2021, 2020 and 2019, we derived an
aggregate of % 4,624.86 million, % 11,042.60 million, % 11,270.23 million and % 12,212.75 million of
revenue from our top 10 customers, constituting 61.4%, 62.8%, 62.6% and 67.6% of our revenue from
operations, respectively. Accordingly, a significant percentage of our future revenues will depend upon
the successful continuation of our relationship with these customers.

Our contracts with such top 10 customers have terms ranging from two to 10 years (with an option to
renew or extend such term at the discretion of the customer, and in certain cases, at the option of the
Company), and may be terminated for, among other reasons, (i) the discretion of one party with prior
notice, (ii) liquidation, bankruptcy or insolvency of one party or the appointment of any trustee, receiver
or liquidator, (iii) default in performance obligations (such as timelines and minimum quality standards)
under the relevant contractual terms, (iv) any fraud or unfair practices being carried out by the Company,
(v) loss of customer’s reputation due to actions attributable to the Company, (vi) attachment or seizure of
substantially all assets of the Company, (vii) disruption by a force majeure event, (viii) violation of
applicable law by the Company in connection with the discharge of its contractual obligations, (ix) it
becoming unlawful for either party to perform its obligations by operation of law, (x) the security
provided under the terms of the contract (such as bank guarantees) ceasing to be enforceable, (xi) the
Company ceasing to do business in the normal course or (xii) performance of contract by the Company in
an unsatisfactory manner resulting in a levy of penalties beyond a stipulated threshold. Further, in
accordance with the terms of an agreement with one of our top 10 customers in the banking sector, we
are required to facilitate the grant of guarantees availed from one or more banks in connection with the
provision of managed support services to such customer and have not yet provided the requisite
guarantee, but are engaging with such customer on the amount and timing of the submission of such
guarantee. We cannot assure you that we will be able to provide the guarantee in the amount and at the
time required to provide it, which could have an adverse effect on our relationship with such customer
and the amounts payable by them and, as such, on our revenue from operations. The loss of any of our
major customers, due to our inability to renew our contracts with them or failure to secure a large order
from them, or a decision by any one of them to reduce the number of ATMs supplied, maintained,
operated or managed by us in their locations could result in a decline in our revenues. Further, if any of
our major customers’ financial conditions were to deteriorate in the future, and as a result, one or more of

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