31.

authorities have responded by taking measures, including in India, where our operations are based, such as prohibiting
people from assembling in large numbers, instituting quarantines, restricting travel, issuing “stay-at-home” orders and
restricting the types of businesses that may continue to operate, among many others. On March 14, 2020, India declared
COVID-19 as a “notified disaster” for the purposes of the Disaster Management Act, 2005 and imposed a nationwide
lockdown beginning on March 25, 2020. The lockdown lasted until May 31, 2020, and has been extended periodically by
varying degrees by state governments and local administrations. The lifting of the lockdown across various regions has
been regulated with limited and progressive relaxations being granted for the movement of goods and people, and calibrated
re-opening of businesses and offices, in certain places. Recently, throughout March to June 2021, due to the second wave
of COVID-19, several state governments in India re-imposed lockdowns, curfews and other restrictions to curb the spread
of the virus. There was no significant impact to our operations as a result of the second wave of COVID-19, and only two
of our campus stores (at the Microsoft and WIPRO campuses in Hyderabad) had to be closed down in April 2021. However,
the detection of new strains and subsequent waves of COVID-19 infections in several states in India as well as throughout
various parts of the world may result in further reinstatements of lockdown protocols or other restrictions, which may
adversely affect our business operations. The COVID-19 pandemic has affected and may continue to affect our business,
financial condition and results of operations in a number of ways, including, among others, the following:

¢ causing disruptions to our logistics operations and supply chains, such as our ability to procure inventory, disrupting
the efficient operation of our warehouses, affecting our ability to make deliveries and fulfil orders in a timely manner;

© our ability to access debt and equity capital on acceptable terms, or at all, may be impaired. A further disruption and
instability in the global financial markets or deterioration in credit and financing conditions or downgrade of our or
India’s credit rating may affect our access to capital and other sources of funding necessary to fund our operations or
address maturing liabilities on a timely basis;

* uncertainty as to what conditions must be satisfied before government authorities fully remove the “stay-at-home”
orders and when such orders would be fully removed;

¢ the potential negative impact on the health of our personnel, particularly if a significant number of them are afflicted
by COVID-19, which could result in a deterioration in our ability to ensure business continuity during and/or after this
disruption; and

* we may face increased risks emanating from an increase in number of individuals working from home such as issues
relating to cyber-security threats and potential breaches, including phishing attacks, productivity, connectivity and
oversight challenges.

The table below sets forth the Company’s monthly net revenues before and during the lockdowns associated with the “first
wave” of COVID 19, for the months indicated below:

 

 

 

 

 

 

 

Monthly Revenues
Particulars January |February March April May
2020 2020 2020 2020 2020
Net revenue (@ in millions) 2,544.10 | 2,449.94 | 3,173.07 | 2,184.09 | 2,172.95
Increase/(decrease) in sales compared to the previous
month (2 in millions) - (94.15) 723.12 | (988.98) (11.14)

 

 

 

 

 

Notes:

1. The panic purchases of products that occurred in March 2020 amounted to around @ 600 million, and contributed to the increase of sales in the month
of March 2020.

2. The normalised sales decrease was approximately 300 million in the month of April 2020.

During the “second wave” of the COVID 19 pandemic in India from March 2021 to June 2021, there were no significant
changes in our monthly stores revenues.

Although we believe that at this time, the outbreak of COVID-19 will not have any significant adverse impact on our results
from operations since we provide essential services, the ultimate extent of the impact of the COVID-19 pandemic on our
business, financial condition, results of operations, cash flows and prospects will depend on future developments, which
are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the
COVID-19 pandemic and actions taken to contain or prevent its further spread, among others. Further, as COVID-19
adversely affects our business and results of operations, it may also have the effect of exacerbating many of the other risks
described in this “Risk Factors” section.

If we are unable to hire, retain and motivate qualified personnel, our business will suffer.

Our future success depends, in part, upon our ability to attract, retain and motivate highly skilled and qualified personnel.
As of September 30, 2021, we employed more than 15,000 employees. Failure to attract and retain necessary professionals,
including pharmacists, sales and marketing personnel and skilled management could adversely affect our business. We

believe that there is significant competition within our industry for qualified professionals with the necessary skills, and

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