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

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS AS REFLECTED IN THE FINANCIAL STATEMENTS
You should read the following discussion and analysis of our financial condition and results of
operations together with our financial statements included in this Draft Red Herring
Prospectus. You should also read the section titled ‘Risk Factors’ beginning on page [●] of this
Draft Red Herring Prospectus, which enumerates number of factors and contingencies that
could impact our financial condition and results of operations. The following discussion relates
to our Company on a standalone basis, and, unless otherwise stated, is based on our restated
unconsolidated financial statements, which have been prepared in accordance with Indian
GAAP, the accounting standards and other applicable provisions of the Companies Act, 1956,
and the SEBI guidelines. Our Financial year ends on March 31 of each year.
OVERVIEW
Sejal Architectural Glass Limited (SAGL), is engaged in the business of processing glass. We have
processing facilities for Insulating, Toughened, Laminated glasses and manufacturing facility for
Decorative Glass as well. Our Company’s existing plant is located at Plot No 259/10/1, Village Dadra,
Union Territory of Dadra, Nagar Haveli, Dist. Silvassa.
Our Company started its commercial operations in the year 2000 by setting up a processing facility
for insulating glass. As a step forward, we started another process for toughened glass in the year
2001 having an annual capacity of 2,40,000 Sq. Meters. Since then, our company has expanded its
operations by adding a new lamination line in January 2007. We have broadened our scope of
business activities by manufacturing various value added glass and glass products
Our company has already acquired specific skills and knowledge on the processing and marketing of
the glass and now as a step towards backward integration, we propose to set up a new manufacturing
facility for float glass with a capacity of 2,00,750 MT per annum at Jhagadia, Dist. Bharuch, Gujarat.
We have already acquired 150 acres of land for this backward integration project and L&T has been
appointed as the EPC contractor for looking after our construction and civil works.
The turnover of our company in the year 2001 was Rs. 408.25 Lacs with the PAT of Rs. 48.24 Lacs.
During the year 2006-2007 our turnover has increased to Rs. 3824.04 Lacs and PAT has increased to
Rs.277.47 Lacs. Our key clients consists of Reliance, K. Raheja, Seimens to name a few. Our glass has
been used in structures such as Inorbit Mall, Sun Pharma -R & D centre, Mumbai and Baroda, K.
Raheja IT Park, Hyderabad, Bangalore Airport, Domestic Airport, Mumbai
Our Company also operates its trading division from its premises named ‘Sejal Encasa’, which is
located at Kandivali, Mumbai. This division trades in various in-house brands as well as other
manufacturers products. The products traded include home improvement products covering tiles,
sanitaryware, mirrors, glass, etc.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST BALANCE SHEET DATE
Except as otherwise stated in this Draft Red Herring Prospectus, after the date of last balance sheet
i.e.; September 30, 2007, our company has issued 34,82,920 Equity Shares of Rs. 10 each at
par/premium aggregating Rs. 2,659.47 Lacs Lacs for part funding the funds requirement of our
proposed project. Further our Company has made progress in the implementation of the project as
detailed under section Objects of the Issue beginning on page [●] of this Draft Red Herring
Prospectus.
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