Thank you daniyalahmad for such a nice comments.
In my understanding there are two ways in which this switch can be put to use one is to attach it with the security system trigger and the second one is to put LED stick-on lights on the inner side of the hood which should light up as the hood is opened. In my case I have attached it in the second way, as I have plans to introduce a passive immobilizer in the ecu so there will be ample security level in the car (which is unfortunately always less).