APR Constructions Limited - Saffron Capital

change in control. For further details, please refer to the section “Capital Structure” beginning on page 48 of this Draft
Red Herring Prospectus.
19. Our ability to pay dividends will depend upon future earnings, financial condition, cash flows, working capital
requirements, capital expenditures and other factors.
The amount of our future dividend payments on the Equity Shares of our Company, if any, will depend upon our
future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.
There can be no assurance that sufficient profits or distributable funds would be available for declaration of dividends.
20. An inability to renew or maintain our statutory and regulatory permits and approvals required to operate our
business may have a material adverse effect on our business:
While our Company has endeavoured to obtain or apply for all applicable governmental, statutory and regulatory
permits, licenses and approvals, including renewals thereof, to operate its business, certain governmental or statutory
approvals and/or licenses may have expired or applications for the same (or renewals thereof) are still pending before
the concerned authorities. In future, our Company will be required to renew such permits, licenses and approvals, and
obtain new permits, licenses and approvals in order to carry on current business operations and for any proposed new
operations. While we believe that we will be able to renew or obtain such permits, licenses and approvals as and when
required, there can be no assurance that the relevant authorities will issue or renew any of such permits, licenses or
approvals in the time-frame anticipated by it or at all. Such non-issuance or non-renewal may result in the interruption
of our business operations and may have a material adverse effect on our project completion schedule, results of
operations and financial conditions. For further details, please refer the section titled “Government and Other
Approvals” beginning on page 191 of this Draft Red Herring Prospectus.
21. Our work force may unionize in the future. Further, our Company hires its labour requirements on contract
basis through third party contractors. Contract labour being supplied to us by third parties, there is no
assurance that the same would be available in accordance with our requirements.
As on date, our employees are not represented by any labour union. However, our employees may unionize in the
future. While we consider our current labour relations to be satisfactory, there can be no assurance that we will not
experience future disruptions to our operations due to disputes including strikes, work stoppages, or increase wage
demands by our employees or other problems with work force which may adversely affect our business or operations.
In that case, there may be restrictions on the flexibility of our labour policies. Further, we have used contract labour
to meet our labour requirements in the past. There is no assurance that the same would be available to us in
accordance with our requirements and cost estimates in the future, and non-availability of requisite contract labour or
increased costs may adversely affect our business, results of operations and financial condition.
22. Any mishaps or accidents at our project sites could lead to damage, work stoppage and accident claims
Any mishap or accident at any of our project site could result eventually in damages, which may result in our
Company suffering a loss. Our Company could suffer a delay in execution of project, receive adverse publicity and
could be forced to invest valuable resources in defending such damages, both in terms of time and money. Although
there have been no accidents involving our Company in the past, there is no assurance that there would not be
mishaps or accidents in the future. Furthermore, there is no assurance that issues arising from such accidents, such as
compensation and liability, will be amicably settled without leaving any adverse impact in the form of litigation or
regulatory action being taken against us.
23. Our Company has entered into and may continue to enter into related party transactions.
Our Company has entered into related party transactions with Entities Promoted by our Promoters and other
persons/entities who are “related parties” in terms of the relevant Accounting Standard. While, we believe that all our
related party transactions have been conducted on an arm‟s length basis, we cannot assure you that we could not have
achieved more favourable terms had such transactions been entered into with unrelated parties. There can be no
assurance that such transactions, individually or in the aggregate, will not have an adverse effect on our business,
prospects, results of operations and financial condition. For details, please refer to the Annexure XII titled “Statement
of Related Party Disclosures” in the chapter titled "Financial Statements" beginning on page 148 of the Draft Red
Herring Prospectus.
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