APR Constructions Limited - Saffron Capital

MANAGEMENT‟S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
You should read the following discussion and analysis of our Company‟s financial condition and results of operations
together with our Company‟s financial statements included in this Draft Red Herring Prospectus. You should also
read the Chapter titled ”Risk Factors” beginning on page 13 of this Draft Red Herring Prospectus, which enumerates
number of factors and contingencies that could impact our Company‟s financial condition and results of operations.
These financial statements have been prepared in accordance with the Indian GAAP, the Companies Act and the
SEBI (ICDR) Regulations and restated as described in the report of our Statutory Auditor dated March 01, 2011 in the
Chapter titled “Financial Information” beginning on page 148 of this Draft Red Herring Prospectus.
Our financial year ends on March 31 of each year, so all references to a particular fiscal year are to the 12-month
period ended March 31 of that year. Our Company‟s historical financial performance may not be considered as
indicative of future financial performance.
Business Overview
Our Company is into infrastructure activities with registered office based out of Hyderabad, Andhra Pradesh. Our
Company has executed a diverse range of construction projects undertaking Irrigation projects, Road projects,
Railway projects and Industrial projects. Our operations are spread across the states of Andhra Pradesh, Maharashtra,
Madhya Pradesh, Assam, Tripura, Karnataka, West Bengal, Tamil Nadu and Bihar.
We have over 25 years of experience in Infrastructure segment. We started as a partnership concern under the name of
M/s A. Prabhakar Reddy & Co. in the year 1983 and were converted into a Public Limited Company in the year 2004.
We commenced operations by undertaking civil construction works. Having gained experience we diversified our
operations by undertaking Irrigation projects. As a growth strategy, we ventured into Railways & Industrial segment.
Our portfolio of services is as follows –
Irrigation Projects – Construction of Dams / Barrages / Spillways; Construction of Canals including structures,
cement concrete lining & distributory systems and Construction of Tunnels.
Railway Projects – Formation of Railways Embankment; Construction of Structures; Collection and spreading of
Ballasts; Erection & Laying of Railway tracks; Construction of Railway platforms & passenger amenities;
Construction of Foot-over Bridges; Construction of Buildings (residential & service); Electrification and Signal
Works.
Industrial Projects – Site preparation & gradation works; Railway Sidings; Approach Roads; Bridges; Reservoirs &
Industrial Structures.
Our Company has been awarded Certificate of Registration for ISO 9001:2008 Quality Management System by BSI
for “Administrative and support functions for construction of civil, structural & engineering projects viz., irrigation
dams, canals, bridges, tunnels, roads, infrastructural works, railways and turnkey projects.”
As on February 28, 2011 we have an outstanding order book position of ` 1,41,619.88 Lakhs . Order book comprises
work orders received mainly from Central & State government bodies / agencies, Public Sector Enterprises and
Private Sector Enterprises. We have entered into Joint Venture agreements with International and Domestic players
for bidding & execution of projects. Our International Joint Venture partners are M/s China Railway Shisiju Group
Corporation & M/s Jiangsu Provincial Transportation Engineering Group Co. Limited (JTEGC) and Domestic Joint
Venture partners are M/s V. Narayana Reddy; M/s M. Venkata Rao Infra Projects Private Limited; M/s PVR Projects
Limited & M/s VNR Infrastructure Limited. The JV partner brings in synergies by aiding financial strength and
technical skill set required for project qualification.
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