APR Constructions Limited - Saffron Capital

KEY REGULATIONS AND POLICIES
Our Company is into Infrastructure segment in India. Our Company undertakes infrastructure activities in Irrigation,
Railways and Industrial Infrastructure segment. Our Company undertakes projects which are awarded either by
Central & State government bodies / agencies, Public Sector Enterprises and Private Sector Enterprises. The
following description is a summary of some of the relevant regulations and policies as prescribed by the Government
of India. The summary of regulations set out below is not exhaustive, and is only intended to provide general
information to the investors and is neither designed nor intended to be a substitute for professional legal advice. There
are no specific regulations in India governing the infrastructure industry.
Taxation statutes such as the Income Tax Act, 1961, Central Sales Tax Act, 1956 and applicable local sales tax
statutes, labour regulations such as the Employees‟ State Insurance Act, 1948 and the Employees‟ Provident Fund and
[Miscellaneous Provisions] Act, 1952, and other miscellaneous regulations and statutes such as the Trade Marks Act,
1999 apply to us as they do to any other Indian company. The statements below are based on the current provisions of
Indian law, and the judicial and administrative interpretations thereof, which are subject to change or modification by
subsequent legislative, regulatory, administrative or judicial decisions. For details of government approvals obtained
by us, see the section titled “Government And Other Approvals” beginning on page 191 of this DRHP.
1. Contract Labour (Regulation and Abolition) Act, 1970
The Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA”) has been enacted to regulate the employment
of contract labour in certain establishments, the regulation of their conditions and terms of service and to provide for
its abolition in certain circumstances. The CLRA applies to every establishment in which 20 or more workmen are
employed or were employed on any day of the preceding 12 months as contract labour. The CLRA vests the
responsibility on the principal employer of an establishment to which the CLRA applies to make an application to the
registering authority in the prescribed manner for registration of the establishment. In the absence of registration, a
contract labour cannot be employed in the establishment. Likewise, every contractor to whom the CLRA applies is
required to obtain a license and not to undertake or execute any work through contract labour except under and in
accordance with the license issued.
To ensure the welfare and health of the contract labour, the CLRA imposes certain obligations on the contractor in
relation to establishment of canteens, rest rooms, drinking water, washing facilities, first aid, other facilities and
payment of wages. However, in the event the contractor fails to provide these amenities, the principal employer is
under an obligation to provide these facilities within a prescribed time period. Penalties, including both fines and
imprisonment, may be levied for contravention of the provisions of the CLRA.
2. The Building and Other Construction workers Regulation of Employment and Conditions of Service Act
1996 and The Building and Other Construction workers Welfare Cess Act, 1996
This Act provides for the levy and collection of a cess on the cost of construction, with a view to augmenting the
resources of the Building and other Construction Workers Welfare Boards constituted under the Building and Other
Construction Workers (regulation of Employment and Conditions of Service) Act, 1996. All the establishments who
carry on any building or other construction work and employ 10 or more workers are covered under this Act.All such
establishments are required to pay cess at the rate not exceeding 2% but not less than 1% of the cost of construction
incurred by the employer, as may be modified by the Government. The Employer of the establishment is required to
provide safety measures at the Building or construction work and other welfare measures, such as Canteens, First-Aid
facilities, Ambulance, Housing accommodations for workers near the work place etc. The Employer to whom the Act
applies has to obtain a registration certificate from the Registering Officer appointed by the Government.
3. Payment of Wages Act 1936
The Payment of Wages Act 1936 (“PWA”) makes provisions regarding the date by which wages payable to
employees/ workers are to be paid, when it will be paid and what deductions can be made from the wages of the
workers.
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