The fund requirements for the objects are proposed to be met from the Net Proceeds, working capital facilities, and internal
accruals, hence, no amount is proposed to be raised through any other means of finance. Accordingly, we confirm that there is
no requirement for us to make firm arrangements of finance under Regulation 7(1)(e) of the SEBI ICDR Regulations through
verifiable means towards 75% of the stated means of finance. The fund requirements, the deployment of funds and the intended
use of the Net Proceeds as described herein are based on our current business plan, management estimates, prevailing market
conditions and other commercial and technical factors, and have not been appraised by any bank or financial institution. We
may have to revise our funding requirements and deployment from time to time on account of a variety of factors such as our
financial and market condition, business and strategy, competition and interest or exchange rate fluctuations and other external
factors, which may not be within the control of our management. This may entail rescheduling or revising the planned
expenditure and funding requirements, including the expenditure for a particular purpose at the discretion of our management,
subject to compliance with applicable law. For details, see, “Risk Factors — 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” on page 31.

Our Company proposes to deploy the entire Net Proceeds towards the aforementioned objects during Fiscal 2022, 2023 and
2024. In the event, our Company or our Material Subsidiary, Optival, are unable to utilise the Net Proceeds per the estimated
schedule of deployment due to any reason, including, inter alia, (i) economic and business conditions; (ii) timely completion
of the Offer; (iii) market conditions outside the control of our Company; or (iv) any other commercial considerations, the
remaining Net Proceeds shall be utilised (in part or full) in subsequent Fiscals as may be determined by our Company, in
accordance with applicable laws.

If the actual utilisation towards any of the Objects is lower than the proposed deployment such balance will be used for general
corporate purposes to the extent that the total amount to be utilised towards general corporate purposes will not exceed 25% of
the Gross Proceeds from the Fresh Issue in accordance with the SEBI ICDR Regulations. In case of a shortfall in raising requisite
capital from the Net Proceeds towards meeting the aforementioned objects, we may explore a range of options including
utilising our internal accruals and seeking additional debt from existing and future lenders. We believe that such alternate
arrangements would be available to fund any such shortfalls.

Details of the Objects of the Offer
L Investment into our Material Subsidiary, Optival for funding working capital requirements of Optival

Our business is working capital intensive and we fund the majority of our working capital requirements in the ordinary
course of our business from our internal accruals, equity and financing from banks by way of working capital facilities.
Our business requires a significant amount of working capital in the operation of the network of 'MedPlus' pharmacy
stores, which is the main business activity of our Material Subsidiary, Optival. We require working capital primarily
for financing and/or replenishment of the inventory in the MedPlus stores of Optival. Accordingly, we propose to
utilise the Net Proceeds for making an investment into our Material Subsidiary, Optival in order to meet the working
capital requirements of Optival. The deployment of net proceeds shall be on a need basis over the course of the Fiscals
2022, 2023 and 2024, in accordance with the working capital requirements of Optival

(a) Existing Working Capital:
The existing working capital of our Material Subsidiary, Optival, based on the audited standalone financial statements

of Optival for as of and for the financial years ended Fiscal 2019, Fiscal 2020 and Fiscal 2021 and for the six months
ended September 30, 2021 is stated below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in million,
Ss. Particulars Fiscal 2019 Fiscal 2020 Fiscal 2021 Six month
No. period ended
September 2021
A._| Current assets
1. [Inventories 3895.76 6,263.36 7,508.10 8,038.66
2.__| Financial assets
(i)_| Trade receivables 81.98 54.90 51.15 66.17
Gi)_[Cash and bank balances 218.84 930.36 167.28 165.66
(iii) |Bank balances other than Cash and cash 248.24 267.76 117.79 0.00
equivalents
(iv) [Other financial assets 96.49 115.66 358.69 430.40
3.__[ Other current assets 92.07 79.73 66.36 124,98
Total current assets (A) 4,633.38 7,711.77 8,269.37 8825.87
B._ | Current liabilities

 

 

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