APR Constructions Limited - Saffron Capital

Material developments occurring after the Balance Sheet Date:
In the opinion of the Board of Directors of our Company, there have not arisen, since the date of the last financial
statements disclosed in this DRHP any circumstance that materially or adversely affect or are likely to affect the
profitability of our Company or the value of our assets or our ability to pay the material liabilities within the next
twelve months.
Key factors affecting the results of operation:
Important factors that could cause actual results to differ materially from our expectations include, but are not limited
to, the following:
Implementation risk involved in our Projects;
Order Book not being representative of our future results;
Our ability to successfully implement our strategy, growth and expansion plans;
Our inability to manage growth;
Our ability to respond to competitive pressures;
Increase in cost or non-availability of equipment, materials or fuel;
Fluctuations in operating costs;
Engagement of sub-contractors or other agencies in the course of execution of our road and railway projects;
Dependence on joint ventures to qualify for the bidding process;
Seasonality and weather conditions;
General economic and political conditions in India and which have an impact on our business activities;
Statutory taxes and other levies, which may affect our margin in the event of our inability to factor such
expenses in our bids or contract price
Any adverse outcome in the legal proceedings / arbitrations in which our Company is involved.
OUR SIGNIFICANT ACCOUNTING POLICIES
For Significant accounting policies of our Company, please refer to the Chapter titled “Financial Information”
beginning on page 148 of this Draft Red Herring Prospectus.
Contract Revenue:
Our Company started as an irrigation infrastructure player and diversified into different verticals like Railway
infrastructure and Industrial infrastructure. The break-up of revenue from different verticals are as under:
(`Lakhs)
Eight Months
period Ended
Year Ended
March 31, 2010
Year Ended
March 31, 2009
Year Ended
March 31, 2008
Year Ended
March 31, 2007
November 30, 2010
Amount % Amount % Amoun % Amount % Amount %
Verticals
t
Irrigation 7,584.49 40.99 16,416.16 60.18 12,510.25 65.65 11,542.60 63.76 11,611.25 88.58
Railway 10,456.65 56.51 10,546.16 38.66 5,605.18 29.41 2,101.85 11.61 NIL NIL
Industrial 461.56 2.49 314.08 1.15 941.64 4.94 4,459.09 24.63 1,497.52 11.42
Total 18,502.70 100.00 27,276.40 100.00 19,057.07 100.00 18,103.53 100.00 13,108.77 100.00
Railway vertical generally command better margin and less turnaround time as compared to Irrigation segment.
Composition of our contract revenue mix in terms of Irrigation and Railway segment has undergone a change with an
inclination towards Railway segment. Contract Revenue of Railway segment showed a growth of 166.68% and
88.15% in FY 2009 and FY 2010 respectively. Our contract revenue was also on upside, showing a growth of 43.13%
over FY 2009. Revenue from industrial segment for the eight months period includes revenue from construction of
roads.
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