10.

results of operations.

Our Company, Subsidiaries, Promoters and Directors are involved in certain legal proceedings which are pending at
different levels of adjudication before various courts and tribunals. For further information, see “Outstanding Litigation
and Material Developments” on page 304.

The summary of outstanding litigation set out below includes details of criminal proceedings, tax proceedings, statutory
and regulatory actions and material pending civil litigation involving our Company, Subsidiaries, Promoters and Directors.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fy Amount*
Particulars Number of cases (in milfion)

Litigation involving our Company

Criminal proceedings Nil Nil

Material civil litigation* Nil Nil

Actions by statutory or regulatory authorities 1 Not quantifiable

Direct and indirect tax Nil Nil

proceedings

Total 1 Not quantifiable
Litigation involving the Promoters

Criminal proceedings Nil Nil

Material civil litigation Nil Nil

Actions by statutory or regulatory authorities 3 Not quantifiable

Disciplinary actions including penalty imposed by SEBI or the Nil Nil

Stock Exchanges against the Promoters in the last five financial

years

Direct and indirect tax proceedings Nil Nil

Total 2 Not quantifiable
Litigation involving our Subsidiaries

Criminal proceedings Nil Nil

Material civil litigation* 1 39.53

Actions by statutory or regulatory authorities 14 Not quantifiable

Direct and indirect tax proceedings 13 314.33

Total 27 353.86 and Not quantifiable
Litigation involving the Directors
Criminal proceedings Nil Nil
Material civil litigation Nil Nil
Actions by statutory or regulatory authorities 3 Not quantifiable
Direct and indirect tax proceedings Nil Nil
Total 3 Not quantifiable

 

* To the extent ascertainable.

* One consumer complaint has been filed against our Company, and six consumer complaints have been filed against our Subsidiary, Optival, all of
which are below the materiality threshold

Involvement in such proceedings could divert our management’s time and attention and consume financial resources.
Furthermore, adverse orders could be an adverse impact on our business, results of operations and financial condition. We
cannot assure you that these legal proceedings will be decided in our favour and that no further liability will arise out of
these proceedings. An adverse outcome in any of these proceedings, either individually or in the aggregate, may affect our
reputation, business operations, financial condition and results of operations.

The cumulative cost of the stores operated by us across India may not be indicative of the market capitalization of
our Company after the Offer as the basis for each are independent of each other.

Our pharmacy retail network comprises physical stores located across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka,
Odisha, West Bengal and Maharashtra, and an online channel through our website and mobile application. As of March
31, 2021 and September 30, 2021, we operated 2,081 and 2,326 stores across various states in India, respectively. Although
we derive a substantial majority of our revenue from operations from our stores, after completion of the Offer, the
cumulative cost of our stores may not be indicative of market capitalization of our Company as the basis for determination
for each are independent of each other.

Our operations are subject to high working capital requirements, and have incurred substantial indebtedness. Our
inability to maintain an optimal level of working capital or financing required may impact our operations adversely.

Our business may require significant amount of working capital, and a major portion of our working capital is utilized
towards inventories. As on September 30, 2021, we have a sanctioned working capital limit of = 1,850 million. Our growing
scale and expansion, if any, may result in increase in the quantum of current assets. Our inability to maintain sufficient
cash flow, credit facility and other sourcing of funding, in a timely manner, or at all, to meet the requirement of working

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