to and this may have a material adverse effect on our business.

Our insurance includes coverage of certain risks such as fire and other natural and accidental risks at our stores, laboratories
and warehouses, and includes stock, money, vehicle and D&O insurance, which we believe is in line with our industry. As
of March 31, 2019, March 31, 2020, March 31, 2021 and September 30, 2021, the amount of our insured assets was
% 4,474.31 million, = 7,080.54 million, = 8,335.74 million and % 9,120.76 million, representing 86.21%, 88.93%, 86.45%
and 84.12% of our total assets excluding intangible assets, land, right of use, deferred tax and bank balances. We may be
exposed to liability risks, such as product liability, product recall or personal injury risks. In addition, if any or all of our
warehouses or stores are damaged in whole or in part, our operations may be interrupted for a sustained period. We cannot
assure you that our insurance policies will be adequate to cover the losses that we may incur as a result of such events. If
we suffer a large uninsured loss or any insured loss suffered by us significantly exceeds our insurance coverage, our
business, financial condition and result of operations may be materially and adversely affected.

While we believe that the insurance coverage which we maintain would be reasonably adequate to cover the normal risks
associated with the operation of our business, we cannot assure you that any claim under the insurance policies maintained
by us will be honoured fully, in part or on time, or that we have taken out sufficient insurance to cover all our losses. Our
insurance policies may not provide adequate coverage in certain circumstances and are subject to certain deductibles,
exclusions and limits on coverage. In addition, our insurance coverage expires from time to time. We apply for the renewal
of our insurance coverage in the normal course of our business, but we cannot assure you that such renewals will be granted
in a timely manner, at acceptable cost or at all. To the extent that we suffer loss or damage for which we did not obtain or
maintain insurance, and which is not covered by insurance or exceeds our insurance coverage or where our insurance
claims are rejected, the loss would have to be borne by us and our results of operations, cash flows and financial condition
may be adversely affected.

Our funding requirements and proposed deployment of the Net Proceeds are based on management estimates and
have not been independently appraised by any bank or financial institution or other independent agency and may
be subject to change based on various factors, some of which are beyond our control.

Our funding requirements and deployment of the Net Proceeds are based on internal management estimates based on our
current business plan, current market conditions and other commercial and technical factors, and have not been appraised
by any bank or financial institution or other independent agency. Further, in the absence of such independent appraisal, our
funding requirements may be subject to change based on various factors which are beyond our control. We may have to
revise our funding requirements and deployment of proceeds from time to time on account of a variety of factors, such as
our financial and market conditions, our business and prevailing strategy, industry competition, interest or exchange rate
fluctuations and other external factors, which may not be within the control of our management. See “Objects of the Offer”
on page 103.

The entire Net Proceeds are proposed to be utilized towards (i) funding the working capital requirements of one of our
Subsidiaries, Optival; and (ii) general corporate purposes, during financial years 2022, 2023 and 2024. At this stage, we
cannot determine with any certainty if we would require the Net Proceeds to meet any other expenditure or fund any
exigencies arising out of competitive environment, business conditions, economic conditions or other factors beyond our
control. In accordance with Sections 13(8) and 27 of the Companies Act, 2013, we cannot undertake any variation in the
utilisation of the Net Proceeds without obtaining the shareholders’ approval through a special resolution. In the event of
any such circumstances that require us to undertake variation in the disclosed utilisation of the Net Proceeds, we may not
be able to obtain the shareholders’ approval in a timely manner, or at all. Any delay or inability in obtaining such
shareholders’ approval may adversely affect our business or operations.

There have been instances of negative cash flows in the last three financial years.

We have in the past, and may in future, experience negative cash flows from operating, investing and financing activities.
Set forth below is a table of selected information from our Restated Consolidated Financial Statements of cash flows for
the financial years 2019, 2020 and 2021 and the six months ended September 30, 2021:

(@ millions)

 

 

 

 

 

 

 

 

 

 

 

 

or Six months ended
Particulars eae September 30,
2019 2020 2021 2020 2021

Net cash generated from/(used in) operating activities 1,466.84 (65.89) 28.91 55.81 1,565.28
Net cash used in investing activities (193.35) (275.54) (345.49) | (112.89) (985.48)
Net cash from/(used in)/from financing activities (828.41) 898.27 (66.26) | __ (476.94) (606.31)
Net increase/(decrease) in cash and cash equivalents 445.08 556.84 | (372.84) | _ (534.02) (26.51)
Cash and cash equivalents at the beginning of the | (613 59) | (46.20) — aces | eats)
period/year
Cash and cash equivalents at the end of the period/year | (468.20) 38.64 | (284.19) |__ (445.37) |__(310.70)

 

 

 

 

For the financial year 2020, our net cash used in operating activities was negative primarily due to adjustments for
depreciation of property, plant and equipment, amortization on right-of-use assets, provision for gratuity and leave benefits,
interest on lease liability and net loss on fair value changes, and working capital adjustments. the depreciation of property,

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