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

Related Party Transactions
For details of related party transactions, please refer to the section titled “Related Party
Transactions” beginning on page [●] of this Draft Red Herring Prospectus.
Financial Market Risks
We are exposed to financial market risks from changes in interest rates and inflation.
Interest Rate Risk
Our interest rate risk results from changes in interest rates, which may affect our finance expenses.
We bear interest rate risk with respect to the debts, which we have for the half year ended
September 30, 2007, since the interest rates could fluctuate in the near future. Any rise in interest
rates would result in higher interest bearing debts.
Effect of Inflation
We are affected by inflation as it has an impact on the raw material cost, wages, fuel cost etc. In
line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.
AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE
IS GIVEN BELOW
1) Unusual or infrequent events or transactions
There have been no unusual or infrequent events or transactions.
2) Significant economic changes that materially affected or are likely to affect income from
continuing operations
Government’s focus on the infrastructure and other civil construction Sector will have a major
bearing on the companies involved in the glass Industry. Accordingly, any major changes in the
policies of the Government could have an impact on the profitability of our Company.
3) Known trends or uncertainties that have had or are expected to have a material adverse
impact on sales, revenue, or income from continuing operations
Apart from the risks as disclosed under heading ‘Risk Factors’ beginning on page [●] in this Draft
Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that
have had or are expected to have a material adverse impact on revenue or income from
continuing operations.
4) Future changes in relationship between costs and revenues, in case of events such as future
increase in labour or material costs or prices that will cause a material change are known
Our Company’s future cost and sale prices will be determined by demand/supply situation,
government policies and availability of raw material etc. and prices there of.
5) Extent to which material increases in net sales or revenue are due to increased sales volume,
introduction of new products or services or increased sales prices.
Increases in revenues are by and large linked to increases in volume of business.
6) Total turnover of each major Industry segment in which our Company operated
Please refer to page [●] under the heading ‘Industry Overview’
7) Status of any publicly announced new products or business segment.
Except as detailed under section titled “objects of the issue” beginning on page [●] of this Draft
Red Herring Prospectus, our Company has not publicly announced any new products or business
segments.
8) The extent to which the business is seasonal.
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