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

FACTORS AFFECTING OUR RESULTS OF OPERATIONS
General economic and business conditions: The demand for our products is dependent on general
economic conditions in the country and pace of infrastructure and real estate development. Our
operations would be affected by any adverse change in the Government Policies, Rules and
Regulations.
Political condition: In case of political instability, government could change the spending pattern.
This change in policy framework can affect our business.
Demand: The demand for our products is predominantly from real estate and construction sector. We
have expanded our customer base in national market. The prospects and earnings growth of the
customers and industries will have an impact on our ability to generate sales.
Competition: Selling prices of our products may be affected if competition intensifies. Further, as a
result of increased capacity of production, adoption of aggressive pricing strategies by our
competitors in order to gain market share or new competitors entering the markets, may adversely
affect our operations and financial results.
Capacity: We are currently setting up a manufacturing facility for the production of float glass as a
step towards backwards integration. Our ability to fulfill larger orders will depend upon our ability to
complete our proposed float glass project as scheduled. We believe that the scale of our production,
and lower per unit operating costs due to economies of scale, will give us an edge over our
competitors.
Spending by various Governments on infrastructure
There has been a rising trend in the spending by government on various infrastructure and
construction projects. Any increase / decrease in spending of various Governments on various
infrastructure projects affect our business.
Political condition
In case of political instability, government could change the spending pattern on various sectors. This
change in policy framework can affect our business. We derive a significant portion of our income
from various construction projects. Any changes in spending pattern of the Government on the
construction sector will affect our business.
Our ability to attract retain Skilled and technical staff
Skilled and technical staff is required by us for our production processes. Thus, our growth is likely to
be affected by our ability to attract and retain skill and technical manpower.
OUR SIGNIFICANT ACCOUNTING POLICIES
For Significant accounting policies please refer to the section titled “Financial Information”
beginning on page no [●] of this DRHP.
Results of Our Operations
For the half year ended 30 th September 2007
Results of Operation as a % of Income
(Rs. in Lacs)
Period (in months) 6 Months % of
Turnover
Turnover 2,816.94 100.00%
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