sejal architectural glass limited - Securities and Exchange Board of ...

amount(s) due to our lender(s), not to change/ vary our constitution, not to make any changes to the general
nature or scope of the business from that carried on by our Company, prepayment of the outstanding
principal amount of the facility on full or in part before the due date, among others. For details regarding
asset specific covenants, please refer the paragraph titled “Restrictive Covenants”, on page [•] of this Draft
Red Herring Prospectus.
14. There are certain audit qualifications in the auditor’s report of our previous financial years/periods.
For further details of these qualifications, please refer to the heading ‘Audit qualifications’ beginning
on page [●] of this Draft Red Herring Prospectus.
15. Dependability on Gujarat Gas Company Limited (“GGCL”)
Our Company will procure natural gas from GGCL required for operating the melting furnace and for the gas
based captive power plant for our proposed float glass project. In case, GGCL or our Company decide to
discontinue the same it may result in an increase in our fuel cost, which in turn would affect our business and
profitability.
Risks relating to our business and operations
16. Our business requires us to renew, maintain or obtain statutory and regulatory permits and licenses as
required to operate our business and any delay or inability to obtain the same may have an adverse
impact on our business.
Being in the processing and manufacturing business, we require several statutory and regulatory permits,
licenses and approvals to operate our business. Many of these approvals are granted for a fixed period of
time and need renewal from time to time. We are required to renew such permits, licenses and approvals.
There can be no assurance that the relevant authorities will issue such permits or approvals to our Company
or that they may be issued in time.
Further, these permits, licenses and approvals are subject to several conditions, and we cannot assure that
we shall be able to prove compliance with such conditions to statutory authorities, which may lead to
cancellation, revocation or suspension of relevant permits/licenses/approvals. Failure by us to renew,
maintain and obtain the required permits, licenses or approvals, or cancellation, suspension and/or
revocation of any of our permits, licenses or approvals may result in the interruption of our operations and
may have a material adverse effect on our business. For more information regarding such approvals, see
“Statutory Approvals and Licences” beginning on page [•] of this Draft Red Herring Prospectus.
17. We may be unable to adequately protect our intellectual property rights since some of our trademarks
are pending registration and therefore do not enjoy statutory protection. Further, we may be subject
to claims by third pary.
We rely on a variety of intellectual property rights that we use in our products. We have secured registration
for two trademarks namely “Sejal Tuff” and “Sejal Safe”. We have already made applications for
registration of our trademarks, however, the same are pending registration. For further details of our
pending approvals, please see the section titled “Statutory Approvals and Licences” beginning on page [•] of
this Draft Red Herring Prospectus.
We cannot assure that we shall be able to successfully preserve our intellectual property rights in the future,
and these rights could be invalidated, circumvented or challenged. In addition, the laws of some countries in
which our products and services have been or may be sold do not protect intellectual property rights. Any
failure to protect proprietary information and any successful intellectual property challenges or infringement
proceedings against us could materially and adversely affect our competitive position.
18. We do not own the “Sejal Glass” trademark used by us.
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