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(1) Its a "Tally Serial Number Based Lock", so it allows you to lock your company data for your Tally Serial number.
(2) Locked data then can be used or opened by Tally RUNNING UNDER OR WITH THAT PERTICULAR TALLY SERIAL NUMBER ONLY with which it was Locked.
(3) Provides ultimate safety - your data will be used or opened with your tally only so when it is used it is in your custody. If someone tries to open in other tally serial number or in demo / educational mode, it will not open even if the user knows username and password for that company.
(4) Get peace of mind since your data is now secured from unwanted usage.