APR Constructions Limited - Saffron Capital

SECTION II – RISK FACTORS
RISK FACTORS
An investment in Equity Shares involves a high degree of risk. You should carefully consider all of the information in
this Draft Red Herring Prospectus, including the risks and uncertainties described below, before making an
investment in our Company‟s Equity Shares. To obtain a complete understanding of our business, you should read
this section in conjunction with “Our Business” beginning on page 94 and “Management‟s Discussion and Analysis
of Financial Conditions and Results of Operations” beginning on page 171 of this Draft Red Herring Prospectus.
Any of the following risks as well as other risks and uncertainties discussed in this Draft Red Herring Prospectus
could have a material adverse impact on our business, financial condition and results of our operation and could
cause the trading price of our Equity Shares to decline which could result in the loss of all or part of your investment.
This Draft Red Herring Prospectus also contains forward looking statements that involve risks and uncertainties. Our
actual results could differ materially from those anticipated in these forward-looking statements as a result of certain
factors, including the considerations described below and elsewhere in this Draft Red Herring Prospectus.
Unless specified or quantified in the relevant risk factors below, our Company is not in a position to quantify the
financial or other implications of any of the risks described in this section.
Materiality:
The risk factors have been determined on the basis of their materiality. The following factors have been considered
for determining their materiality:
A. Some events may not be material individually but may be found material collectively.
B. Some events may have a material impact qualitatively instead of quantitatively.
C. Some events may not be material at present but may have material impacts in the future.
INTERNAL RISK FACTORS
1. Our Company is involved in certain legal proceedings, the outcome of which could adversely affect our
business operations and financial conditions.
Our Company is involved in certain legal proceedings and claims in relation to certain civil, statutory, labour
matters and arbitration proceedings incidental to our business and operations. These legal proceedings are
pending at different levels of adjudication before various courts and tribunals. Any adverse decision may render
us liable to liabilities/penalties and may adversely affect our business and results of operations.
Summary of litigations are given below:
Particulars
No of cases
/ disputes
Amount involved where quantifiable
(` in lakhs)
LITIGATION AGAINST AND BY OUR COMPANY
Litigation against our Company
Civil proceedings 1 Nil
Statutory proceeding 1 1886.62 plus interest & other penalties
Labour Laws 3 10.37 plus interest
Litigation filed by our Company
Civil proceedings 2 507.94
Arbitration proceedings 2 618.03
For further details regarding the aforesaid litigations, please refer chapter titled “Outstanding Litigation and
Material Developments” beginning on page 183 of this DRHP.
2. The premises used by our Company as Registered Office is not owned by us, and has been taken on Lease
from Sreenivasa Associates (Project Works) Limited, an entity promoted by one of our Promoters, Mr. Adala
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