APR Constructions Limited - Saffron Capital

24. Our projects under development are subject to construction, financing and operational risks.
The development of our new projects involves various risks, including, among others, land acquisition risk, regulatory
risk, construction risk, financing risk and the risk that these projects may ultimately prove to be unprofitable. Entering
into any new projects may pose significant challenges to our management, administrative, financial and operational
resources.
Our Company cannot provide any assurance that we will succeed in any new projects we invest in or that we will
recover our investments. Any failure in the development, financing or operation of any of our material new projects,
though not quantifiable monetarily, is likely to materially and adversely affect our business, prospects, financial
condition and results of operations.
Our Company may be adversely affected if the completion of the projects under construction or development is
delayed due to:
the contractors hired by us may not be able to complete the construction of the project on time, within budget or
to the specifications and standards they have set out in the contracts with them;
failure to obtain necessary government approvals in time or at all;
delays in completion and commercial operation could increase the financing costs associated with the
construction and cause the forecasted budget to be exceeded;
our Company may not be able to obtain adequate working capital or other financing to complete construction of
and to commence operations of the project; and
our Company may not be able to recover the amounts we have invested in the projects if the assumptions
contained in the feasibility studies for these projects do not materialize.
Any of the foregoing factors could materially and adversely affect our business, financial condition, cash flows,
profitability and reputation.
25. The information we have provided in relation to our “projects under execution” is not representative of our
future results and do not provide indications in relation to cancellations or scope adjustments that may occur
to some of such projects.
The information we have provided in relation to our “projects under execution” is not representative of our future
results. Additionally these projects are subject to execution risks as mentioned in Risk factor 24 above which may
affect our business, cash flows and profitability.
26. Our Company depends on various contractors and their sub-contractors to construct, develop, operate and
maintain our projects. Any delay, default or unsatisfactory performance by these third parties could materially
and adversely affect our ability to complete, effectively operate or maintain our projects. Any delay in meeting
project milestones by our contractors / sub-contractors may increase our financing cost, cause our forecasted
budget to exceed and may lead to delayed payments.
Our Company depends on the availability and skills of third party contractors and their sub-contractors for the
development, construction, operation and maintenance of our projects. We do not have direct control over the timing
or quality of services, equipment or supplies provided by these contractors. There is no assurance that such
contractors will continue to be available at reasonable rates in the areas in which we conduct our operations. We may
also be exposed to risks relating to the quality of their services, equipment and supplies. The contractors and subcontractors
may not be able to obtain adequate working capital or other financing on favourable terms as and when
required for completing construction. Any delays in meeting project milestones by our contractors could increase our
financing costs and cause our forecasted budget to exceed, which may in turn result in invocation of clauses relating
to payment of liquidated damages or penalties, or may even result in termination of the concession agreements.
As we expand geographically within and outside India, we may have to use sub-contractors with whom we are not
familiar, which could increase the risk of cost overruns, construction defects and failures to meet scheduled
completion dates. We generally do not receive guarantees or indemnities from our contractors as to timely
completion, cost overruns, or additional liabilities. As a result, we assume the risk of delayed or reduced payments,
liquidated damages or penalty amounts, or termination of contracts. We also assume liability for defects in connection
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