APR Constructions Limited - Saffron Capital

* The cost is inclusive of Excise / Customs Duty and VAT
Note: Our Company does not propose to purchase any second hand equipment
Our Promoters, Directors, Key Managerial Personnel and the Group Companies of our Company do not have any interest in
the proposed acquisition of the equipment and machineries or in the entity from whom we have obtained quotations for the
same.
The prices for the equipment proposed to be purchased as set out above are as per the quotations received from the
respective suppliers. Our Company will obtain fresh quotations at the time of actual placement of the order for the
respective equipment. The actual cost would thus depend on the prices finally settled with the suppliers and to that extent
may vary from the above estimates.
2 Long Term Working Capital Requirements
The nature of business of our Company necessitates mobilizing monies, as may be necessary, to ensure timely
execution of orders. The working capital of our Company is therefore invested in mobilizing resources that are
necessary and crucial to execute the orders at hand. To elucidate, the sales of our Company has seen an increase in the
last financial year as a result our working capital requirements has also consequently increased. Our Company
believes that to ensure timely execution and completion of the orders procured by our Company, it would be
necessary to supplement our existing working capital requirements.
Considering the existing growth rate the incremental working capital needs of our Company is expected at
approximately ` 23927.25 lakhs for FY 2012 as assessed based on the workings of our Company. Our Company
intends to meet its working capital requirements to the extent of ` 4034.28 lakhs from the Proceeds of this Issue and
the balance will be met from bank borrowings and internal accruals at an appropriate time as per the requirement.
Our Company‟s existing working capital and the funding of the same is as follows:
Particulars
Historical
Holding
Period (in
months)
2009-2010
Audited
Estimated
Holding
Period (in
months)
2010-11
Estimated
Estimated
Holding
Period (in
months)
(` lakhs)
2011-12
Estimated
(A) Current Assets
Inventories 2.99 5,775.98 2.63 7,540.06 2.71 11868.06
Receivables 1.45 3,288.13 1.50 5,137.50 1.50 7812.50
Other Current Assets* 3.25 7,376.42 2.74 9,378.14 2.15 11206.22
Total Current Asset 16,440.53 22,055.70 30886.78
(B) Current Liabilities
Sundry Creditors 5.54 3,046.62 4.24 3,250.00 3.86 4500.00
Other Current
0.37 836.34 0.38 1,295.62 0.47 2459.53
Liabilities
Total Current
3,882.96 4,545.62 6959.53
Liabilities
(C) Working Capital
12,557.57 17,510.08 23927.26
Gap
Bank Borrowings for
4,693.96 7,500.00 8,500.00
working Capital
Mobilisation Advances 4,693.58 5,000.00 7,000.00
Internal Accruals 3,170.03 5,010.08 4,392.98
From the Issue
Nil Nil 4,034.28
Proceeds
* Other current assets of ` 7376.42 lakhs for the year ended March 31, 2010 includes Cash & Bank Balances and
Loans & Advances of ` 2653.31 lakhs and `4723.21 lakhs respectively. Other current assets of ` 9378.14 lakhs for the
year ended March 31, 2011 includes Cash & Bank Balances and Loans & Advances of ` 2082.52 lakhs and ` 7295.62
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