24,

25.

Further, non-compliance with any existing or proposed laws or regulations such as The Drugs and Cosmetics Act, 1940,
The Drugs and Cosmetics Rules, 1945, Food Safety and Standards Act, 2006 read with the relevant rules, Bio-Medical
Waste Management Rules, 2016, Medical Devices Rules, 2017, Legal Metrology Act, 2009 read with the relevant rules,
Factories Act, 1948 read with the relevant rules, Water (Prevention and Control of Pollution) Act, 1974 read with the
relevant rules, Air (Prevention and Control of Pollution) Act, 1981 read with the relevant rules, the shops and establishment
statutes for various states, particularly those that provide for the licensing, conduct, regulation, ownership, advertising and
operation of pharmacies, the advertising of pharmacies and prescription services, the provision of information concerning
prescription drugs, the distribution, pricing and sale of prescription drugs and privacy matters could result in civil or
regulatory proceedings, fines, penalties, injunctions, recalls or seizures any of which may impact our results of operations
or financial position.

In addition, any changes to laws, regulations and policies of the central and state governmental authorities affecting our
activities, or the interpretation of such laws or regulations, including delisting of services or changes to licensing
requirements relating to healthcare services, or their interpretation or application, could have a material adverse effect on
our business performance, financial condition, results of operations and prospects and we could incur significant costs in
the course of complying with any changes in the regulatory regime.

Further, pursuant to conversion into a public limited company, the name of our Company has been changed from “MedPlus
Health Services Private Limited” to “MedPlus Health Services Limited”, subsequent to which we are in the process of
changing the name in some our registrations and statutory approvals which are in our previous name. Any delay or failure
to do so could have an adverse effect on our business and results of operations.

Most of our store premises and some of our vehicles are leased by us, and any termination, non-renewal or failure
to enforce, register or adequately stamp our lease agreements in connection with these premises could adversely
affect our operations.

Most of our stores are held by us on a leasehold basis. The term of such lease arrangements ranges from one to 15 years.
Upon the expiry or termination of such leases, we will be required to vacate the premises, unless the leases are renewed.
Some of our stores have been operating after the expiry of their leases and that the necessary procedures for renewal have
not been undertaken as of yet, and are thus exposed to the risk of eviction and losses on short notice. All of our hospital
stores operate under revenue sharing agreements entered into with hospitals and are not held on a leasehold basis. The term
of such agreements ranges from one to ten years. If our lease agreements or revenue sharing agreements expire and are not
renewed by us within the time stipulated under any such agreement, we will be required to vacate such store premises, and
may be required to identify alternative premises at less favourable terms and conditions. In particular, an inability to secure
and renew leases for retail stores in prime locations at competitive terms could result in a loss of business, time overruns
and may adversely affect our operations and profitability. While there have been no instances during the last three financial
years and the six months ended September 30, 2021 where we have been unable to secure and renew leases for retail stores
in prime locations at competitive terms, we cannot assure you that such instances may not occur in the future. Further, the
lease deeds for our properties may not be registered, stamped or adequately stamped and consequently, may not be accepted
as evidence in a court of law and we may be required to pay penalties for non-registration and non-payment of or inadequate
stamp duty. While there have been no instances where our business has been materially affected during the last three
financial years and the six months ended September 30, 2021 due to any of our lease deeds not being registered, stamped
or adequately stamped, we cannot assure you that such instances may not occur in the future.

We also hire some of our supply vehicles based on contract-hire agreements. There can be no assurance that we will
continue to enter into such contract-hire agreements on commercially acceptable terms favourable to us.

We have applied for registration of certain trademarks in our name. Until such registrations are granted, we may
not be able to prevent unauthorized use of such trademarks by third parties, which may lead to the dilution of our
goodwill.

We have obtained registrations for the trademark ‘MedPlus’, which is the trademark for our primary business operations,
under classes 41 and 42. Our Company and our Subsidiaries have filed applications seeking registration for additional
trademarks under various classes with the Controller General of Patents, Design and Trademarks, Government of India, of
which 18 trademarks have been applied for in the name of our Company. Some of these applications are currently pending
approval. We cannot assure you that our applications will be accepted and will be registered. During the pendency of our
application for registration of these trademarks, we may face difficulties in protecting our private labels in the event of a
possible infringement of the same. Our trademark applications for the trademarks ‘MedPlus’ (under three classes) and
“‘Medplus Mart’ have been opposed, our application for the ‘MedPlus’ trademark (under another class) has been objected,
and our applications for the trademarks ‘GLUCIPRO’ and ‘LEVICARE’ are ready for show cause hearing. The products
in respect of which trademark applications have been made do not significantly contribute to our revenue. However, in the
event that we are not able to obtain registrations, or successfully defend the oppositions or objections to our trademark
applications, we may not be able to avail the legal protection or prevent unauthorized use of such trademarks by third
parties, which may adversely affect our goodwill and business. Further, in case we are required to engage in multiple legal
actions in respect of our trademarks, it may require us and our management to expend additional time and resources, for
instance, in the past three financial years and the six months ended September 30, 2021, we incurred approximately

39
