APR Constructions Limited - Saffron Capital

Our operations are currently geographically concentrated in the States of Andhra Pradesh, Maharashtra, Madhya
Pradesh, Bihar, Assam, Tripura, Karnataka, West Bengal and Tamil Nadu. Our business is therefore significantly
dependent on the general economic condition and activity in these States, and the central, state and local government
policies relating to infrastructure projects. Although investment in the infrastructure sector in the areas in which we
operate has been encouraged, there can be no assurance that this will continue. Our business activities are primarily in
the areas of irrigation projects and rail projects. Our business strategy is to expand into other geographical regions and
new business segments. In the course of any such diversification, we may face competition and our performance may
suffer as a result of strong presence of our competitors in that zone. Increasing competition could have an adverse
impact on our profit margins.
15. Our insurance coverage may not adequately protect us against certain operating hazards and this may have a
material adverse effect on our business
Our operations subject our workforce to hazards inherent in constructing roads, bridges and railway work such as risk
of equipment failure, impact from falling objects, collision, work accidents, fire, or explosion, including hazards that
may cause injury and loss of life, severe damage to and destruction of property and equipment, and environmental
damage. The insurance coverage that we maintain may not be adequate to cover the normal risks associated with our
business operations. To the extent of any loss or damage that is not covered by insurance per se or which exceeds
insurance coverage in force and available to our Company, our results of operations or cash flows may be affected.
16. Our Company faces competition in business from Indian and international infrastructure companies. Any
failure to compete effectively could have a material adverse effect on our business, financial conditions and
results of operations
Our Company operate in a competitive environment. While service quality, technical capacity and performance,
health and safety records and personnel, as well as reputation and experience, are important considerations in client
decisions, price is a major factor in most tender awards. Our industry has been frequently subject to intense price
competition. There are number of competitors who have achieved greater market penetration and have greater
financial and other resources at their disposal vis-à-vis our Company. As a result, we may need to accept contracts
with lower margins in order for us to compete with such competitors. If we are unable to compete successfully in such
markets, our profits could be reduced. There can be no assurance that we can continue to effectively perform vis-a-vis
our competitors in the future, and our failure to compete effectively may have an adverse effect on our business,
financial condition and results of operations.
17. Our success depends largely upon the services of our key managerial personnel and our ability to attract and
retain them.
Our ability to meet future business challenges depends on our ability to attract, recruit and retain talented and skilled
personnel. We are highly dependent on our senior management, our Directors and other key personnel, including
skilled project management personnel. A significant number of our employees are skilled engineers and we face
strong competition to recruit and retain skilled and professionally qualified staff. Due to the limited pool of available
skilled personnel, competition for senior management and skilled engineers in our industry is intense. We may
experience difficulties in attracting, recruiting and retaining an appropriate number of managers and engineers for our
business needs. We may also need to increase our pay structures to attract and retain such personnel. Our future
performance will depend upon the continued services of these persons. The loss of any of the members of our senior
management, our Directors or other key personnel or an inability to manage the attrition levels in different employee
categories may materially and adversely impact our business and results of operations.
18. Our Promoters and Promoter group will continue to retain significant control of our Company after the Issue,
which will allow them to influence the outcome of matters submitted to shareholders for approval.
After this Issue, our Promoters together with our Promoter Group will beneficially hold approximately [●] % of our
post-Issue Equity Share Capital. As a result thereof, our Promoters and Promoter Group will have the ability to
exercise significant influence over the matters requiring shareholders‟ approval, including the election of Directors
and approval of significant corporate transactions. They will also be in a position to influence the result of any
shareholders‟ action or approval requiring a majority vote, except where they are required by applicable laws to
abstain from voting. Such a concentration of ownership may also have the effect of delaying, preventing or deterring a
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