MIRA INFORM REPORT

Report Date :

30.10.2006

IDENTIFICATION DETAILS

Name :	LG ELECTRONICS INDIA PRIVATE LIMITED
Registered Office :	Plot No. 51, Udyog Vihar Surajpur Kasna Road, Greater Noida, Dist. Gautam Budh Nagar – 201 306, Uttar Pradesh, India.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	20.01.1997
Com. Reg. No.:	20-31138
CIN No.: [Company Identification No.]	L00000DL1997PLC0084548 U32107UP2005PTC031138
TAN No.: (Tax Deduction & Collection Account No.)	PNEL03835G/PNEL03836A
PAN No.: (Permanent Account No.)	AAACL1745Q/AAAC1745Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of all kinds of Consumer Electronics and House Hold Appliances like Colour Television, Washing Machine, Air Conditioners, Refrigerators, Computer Monitor, Vacuum Cleaner, Digital Video Display, MP3 Players, ACD-VCD, Microwave Ovens and PCB Assembly.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 22500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of LG Korea, consumer durable giant, progressing well in India. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Plot No. 51, Surajpur-Kasna Road, Udyog Vihar, Greater Noida, Dist. Gautam Budh Nagar – 201 305,Uttar Pradesh, India
Tel. No.:	91-120-2560900 / 940
Fax No.:	91-120-2560918/2560921/2560926
E-Mail :	1. ppanda@igezbuy.com 2. itlg@lgeil.com 3. shwetabhatia@lgezbuy.com
Website:	http://www.lgezbuy.com, http://www.lgindia.com
Factory 1 :	Plot No. 51, Surajpur-Kasna Road, Udyog Vihar, Greater Noida, Dist. Gautam Budh Nagar – 201 305,Uttar Pradesh, India Tel. No. : 91-120-2560900 / 940 Fax No. : 91-120-2560918/2560921/2560926 E-Mail : itlg@lgeil.com/askus@lgebuzy.com Website http://www.lgezbuy.com / http://www.lgindia.com B-243 Ground Floor, Okhla Industrial Area, Phase-1, New Delhi-110020, India Tel No : 91-11-26371208 Plot No. A-5, MIDC Ranjangaon, Taluk Shirur, Pune-412220, Maharashtra Sethurapet Village, Villianur Commune Panchayat, Pondicherry
Branches :	Located At : v 221, Okhla Industrial Area, Phase III, New Delhi - 110 020 Tel. No. 91-11-26310927 v A-41, Mohan Co-operative Industrial Estate, Usha Bhawan, Mathura Road, New Delhi – 110 044 Tel. No. 91-11-26959559 / 9710 v 101/102, Narayan Complex, Opp. Havmor Rest., Near Navrangpura, Ahmedabad, Gujarat Tele No. 91-79-26460963 v 93, TKN Mansion, Ground Floor, KH Road, Bangalore – 560027, Karnataka. Tele No. 91-80-24145145 v Plot No. 2, Office No. 3, Bapuji Nagar, Bhubaneshwar – 751 009, Orissa Tele No. 91-674-2534280 / 2531430 v 1, Lee Road, Kolkata – 700 020, West Bengal Tele No. 91-33-22810481 v SCO-1124-25, Sector – 22B, Chandigarh – 160 022 Tele No. 91-172-2389105 v No. 90, GNT Road, Ponniamman Medu, Madhavaram, Chennai – 600 110, Tamil Nadu. Tele No. 91-44-25531465/62 v 40/1270, Vasudeva Building, TD Road, Ernakulam, Cochin – 680 011, Kerala. Tele No. 91-484-2383019 v 250, A Kannappan Nagar, Sanganur Road, Sanganur, Coimbatore – 641 027, Tele No. 91-422-2332195 v J-10, RDC, Opp. New Ghaziabad Railway Station, Raj Nagar, Ghaziabad – 202002, Uttar Pradesh Tele No. 91-120-2754850 v Plot No-D-3 & D-4, Rego Baug, Alto Santacruj, Bambolim, Goa Tele No. 91-832-2414006 v Shantineer Bhawan, C.K Agarwal Path, Chenikurthi, Guwahati – 781003, Assam Tele No. 91-361-2632895 v K/1/1, IDA, Uppal, Hyderabad – 500039, Andhra Pradesh Tele No. 91-40-27207504 v Sri Balakrishna Industrial Compound, Next to Sidheshwar Complex, Bangapur Chowk, P.B. Road, Hubli, Karnataka. Tele No.91-831-242552 v 3^rd Floor, 304 Bansi Trade Centre, 581/5, M.G. Road, Indore – 452 003, Madhya Pradesh Tele No. 91-731-2532444 v B – 71, Sahkar Marg, Lal Kothi Scheme, Jaipur, Rajasthan Tele No. 91-141-2741553 v Plot No. 52, Transport Nagar, Narwhal, Jammu, Jammu & Kashmir. Tele No. 91-191-2474516 v C/o. Sunder Cold Store & Industries Compound, Main G.T. Karnal Road, Kundli, Dist. Sonepat, Haryana. Tele No. 91-1264-372346 v 537, Hari Kunj, Keshav Nagar, Sitapur Road, Lukhnow, Uttar Pradesh. Tele No. 91-522-233496 v Village Threekay, Ferozpur Road, Ludhiana, Punjab v Unit No. 2, ‘K’ Wing, Ground Floor, Tex Centre, Behind HDFC Bank, Off Saki Vihar Road, Chandivli, Andheri (East), Mumbai – 400 072 Tele No. 91-22-28562416 v B-8, S.K. Puri, Patna, Bihar Tele No. 91-612-2211373 v 108/7, Vaibhav Building, University Circle, Pune – 411 016, Maharashtra. Tele No. 91-20-24030100 v 5-A, MIDC, Hingna, Nagpur – 440016, Maharashtra Tele No. 91-7104-235127, 234401 v Nathani Complex, Shaym Nagar, Katoratalab, Raipur. Tele No. 91-771-2637470 v 402,405 Commerce Tower, Opp. GEL Church Complex, Main Road, Rachi – 834001, Bihar Tele No. 91-651-2301815 v AD-1 to AD-13, Rajlaxmi, Commercial Complex, Opp. Durgesh Park, Thane Bhiwandi Old Highway,Villege-Kalehar, Thane-Bhiwandi, Maharashtra. Tele No. 91-2522-2247698 v Unit No.2, ‘K’ Wing, Ground Floor, Tex Centre, Behind HDFC Bank, Off. Saki Vihar Road, Chandivli, Andheri (East), Mumbai – 400 072 Tele No. 91-22-28562410 / 11 / 12 / 13 / 14 v 20-A, Shivaji Marg, Moti Nagar, New Delhi-110015, India Tel. No.: 91-11-26181114 Fax No.: 91-11-26181115

DIRECTORS

Name :	Mr. Kwang Ro Kim
Designation :	Managing Director
Address :	1. 3-2/14, Vasant Vihar, New Delhi 2. 901-305, Grand Tower, Sangam Dong Changwon City, Khungnam, South Korea
Date of Birth/Age :	02.11. 1946
Qualification :	Graduate
Experience :	28 Years
Date of Appointment :	01.01. 1999
Previous Employment	LG Electronic Inc., South Korea
Name :	Mr. In Seog Kim
Designation :	Director
Address :	Sungwon Grand, Apartment – 302, 2303, Sangnnam Dong, Changwon City, Gyeongnam, South Korea
Date of Birth/Age :	03.01. 1961
Date of Appointment :	07.06. 2004
Name :	Mr. In Ho Kim
Designation :	Alternate Director to Mr. In Seog Kim
Address :	C – 86, 1^ST Floor, Anand Niketan, New Delhi – 110021
Date of Birth/Age :	17.08. 1961
Qualification:	B. Com
Date of Appointment :	07.06. 2004
Name :	Delhi Moon Bum Shin
Designation :	Director
Address :	1/21, 1^st Floor, Shanti Niketan, New Delhi
Date of Birth/Age :	05.10. 1954
Date of Appointment :	06.01. 2005
Name :	Pradeep Kumar Panda
Designation :	Company Sectary
Address :	B – 1, LG Housing Society, Plot No. 3, Sector, Greater Noida, District – Gautam Budh Nagar
Date of Birth/Age :	01.06. 1966
Qualification:	B. Com, FCA
Date of Appointment :	21.01. 2002

KEY EXECUTIVES

Name :	Mr. W. C. Kim
Designation :	Director
Name :	Mr. Amit Gupta
Designation :	General Manager (Sales)
Name :	Mr. Jin Won Kang
Designation :	General Manger (R & D)
Name :	Mr. Myung Ho Kang
Designation :	General Manger (Export)
Name :	Mr. Sanjay Arora
Designation :	Vice President (Manufacturing)
Name :	Mr. Yong Jang
Designation :	General Manger
Name :	Mr. Vipin Gupta
Designation :	General Manger
Name :	Mr. Soos Kyu Song
Designation :	General Manger
Name :	Mr. R Manikandan
Designation :	General Manger (PGHT)
Name :	Mr. P y Jeong
Designation :	General Manger (MPC)
Name :	Mr. Praveen Valecha
Designation :	General Manger (PGHGSM)
Name :	Mr. K K Kaul
Designation :	Senior General Manger (EMS)
Name :	Mr. Anil Arora
Designation :	General Manger (PGH)
Name :	Mr. Ashok Kumar
Designation :	General Manger (HR & MS)

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Satyanarayan Ajmera	113128729
Mr. Jaydeep Gupta	1
Mr. Yasho Vardhan Verma	1
Mr. Amit Gupta	1
Mr. Kishor Kumar Kaul	1
Mr. Pradeep Kumar Gupta	1

BUSINESS DETAILS

Line of Business :	Manufacturing and Trading of all kinds of Consumer Electronics and House Hold Appliances like Colour Television, Washing Machine, Air Conditioners, Refrigerators, Computer Monitor, Vacuum Cleaner, Digital Video Display, MP3 Players, ACD-VCD, Microwave Ovens and PCB Assembly.
Products :	Color Television – 8528.00 14” TV 20” TV 21” TV 29” TV 25” TV Projection TV Projection 44 Projection 54 Projection 62 LCD Projector Xcanvas PDP LCD Plasma 42” Plasma 50” Plasma 60” DVD Player Audio Player DVD movie Station VCD Movie Station Refrigerator – 8418.10 Dios Refrigerator SFF Refrigerator Frost Free Refrigerator Direct Cool Refrigerator Washing Machine – 8450.10 Fully Automatic Semi Automatic Washing Machine Air Conditioner – 8450.00 Split Air Conditioners Whisen Air Conditioners Window AC Vacuum Cleaner Microwave Solo Range Microwave Grill Range Microwave Convection Range Microwave Home PC Monitors Flatron Monitor Studio works OSD GSM Mobile Phones Laptop Microware Ovens – 8516.00 Monitors – 8471.00 Personal Computer – 8471.30 Compressor – 8414.30 Digital Local Loop System – 8525.20
Exports to :	South Africa, Middle East, Singapore, Hong Kong, New Zealand, Sri Lanka, Dubai and Maldives.
Imports from :	Electronic components from South Korea
Terms :
Selling :	Cash or other terms
Purchasing :	Credit (30-60 days), Others and L/C terms.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Colour T.V.	Nos.	2200000	1692668
Refrigerators	Nos.	1800000	1125165
Washing Machines	Nos.	600000	436101
Air Conditioners	Nos.	500000	261022
Micro Oven	Nos.	425000	55855
Colour Monitors	Nos.	800000	801712
Desktop Pcs	Nos.	100000	69511
Sub Assemblies Compressors	Nos.	850000	35725
Others	Nos.	1300000	1159122
WLL Systems	Nos.	600000	1046240
Terminals	Nos.	300000	0.000

GENERAL INFORMATION

Suppliers :

LG Electronics, South Korea

No. of Employees :

1600

Bankers :

v State Bank of India, Overseas Branch, 9^th Floor, Jawahar Vypar Bhawan, Tolostoy Marg, New Delhi – 110001

v ICICI Bank Limited, 9A Phelps Building , Connought Place

New Delhi 110001

v Citibank NA, DLF Centre, 5^th Floor, Parliament Street

New Delhi 110001

v ING Vysya Bank Limited

v The Bank of Nova Scotia

v Standard Chartered Bank

v Punjab National Bank

v HSBC

v Deutsche Bank

Facilities :

Secured Loan	31.03.2005
Long Term	960.00
Short Term
Byer’s Lone Credit	2350.197
Working Capital Demand Loans	1680.000
Cash/ Export Credit A/c	565.455
Other Short Term Borrowings	800.000
Total	6375.652

Banking Relations :	Good
Auditors :	· S. R. Batliboi & Associates Chartered Accountants Atma Ram House, New Delhi - 110 001 · K. S. Mehta & Company Chartered Accountants New Delhi · S. S. Kothari & Company Chartered Accountants New Delhi
Associates:	v LG Soft India It was promoted by the third largest Korea conglomerate, the LG Group, with equity participation from AGI. It had two offshore development centres in India and offices in San Jose, London and in Seoul. At Bangalore, LG Soft is planning to more than double its’ manpower from 300. News Articles – LG Electronic Inc, a $16 billion electronics and telecommunication , plans to leverage facilities of its’ group company LG Soft India to design and feature applications and software which are specific to Indian needs on its’ code division multiple access (CDMA) handsets. The company has tied-up with Reliance Infocomm to provide CDMA Technology based mobile handsets in the country. It has also provided a limited number of mobile handsets to Tata Teleservices for the latter’s foray into the mobile telephony. The CDMA global market, the company supplied a total of six million mobile phones, recording a 23% market share. It outperformed other players such as Samsung Electronics and Motorola which supplied 5.1 million units, covering nearly 19.6% market share. v LG Chemicals Limited, New Delhi v LG Construction Company Limited, New Delhi v LG International Limited, New Delhi
Subsidiaries	v LG electronics Almaty Kazak Company Limited v LG Electronics Antwerp Logistics v LG Electronics Australia Private Limited v LG Electronics Argentina S.A. v LG Electronics China Company Limited v LG Electronics Canada Inc. v LG Electronics Design Tech Limited v LG Electronics Egypt Cairo S.A.E. v LG Electronics North Of England Limited v LG Electronics De Sao Paulo Limited v LG Electronics Shenyang Inc. v LG Electronics Tianjin Appliance Company Limited v LG Electronics Austria GmbH v LG Electronics Hells S.A. v LG Electronics Philippnes Inc v LG Electronics Wales Limited v LG Electronics Display Devices Indoesia v LG Electronics Design Tech Limited v LG Electronics Monetary Mexico S. A. v LG Electronics Thailand Company Limited v LG Philips LCD Company Limited v LG Tops v LG Digital Mobile Communication Company Limited v LG Holding Limited v SLD Telecom Private Limited v LG Micron Limited v LG Electronics Tianjin Appliance Company Limited v LG Electronics Sweden AB v LG Electronics United Kingdom Limited v LG Electronics Russia Inc. v LG Electronics (M) SDN v LG Electronics Gulf FZE v LG MITR Electronic Company Limited v LG Electronics Vietnam Company Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
115000000	Equity shares	Rs. 10 each	Rs. 1150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
113128732	Equity shares	Rs. 10 each	Rs. 1131.287 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		1131.287	1131.287	1131.287
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4508.399	3690.417	2093.575
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5639.686	4821.704	3224.862
LOAN FUNDS
1] Secured Loans		6375.652	3754.567	1845.479
2] Unsecured Loans		3179.245	400.000	0.000
TOTAL BORROWING		9554.897	4154.567	1845.479
DEFERRED TAX LIABILITIES		80.206	123.648	0.000
TOTAL		15274.789	9099.919	5070.341
APPLICATION OF FUNDS
		4599.883	3899.509	3036.638
FIXED ASSETS [Net Block]		351.540	574.661	209.005
Capital work-in-progress
INVESTMENT		2.293	27.446	0.000
DEFERREX TAX ASSETS		32.387	9.577	(27.815)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9709.360	5466.096	4601.457
	Sundry Debtors	4047.082	3406.819	4432.374
	Cash & Bank Balances	1000.790	1231.431	1133.845
	Other Current Assets	532.299	242.045	86.950
	Loans & Advances	3648.904	2935.812	773.656
Total Current Assets		18938.435	13282.203	11028.282
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	6373.371	6528.692	8824.225
	Provisions	2276.378	2164.785	351.544
Total Current Liabilities		8649.749	8693.477	9175.769
Net Current Assets		10288.686	4588.726	1852.513
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		15274.789	9099.919	5070.341

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	50429.617	37391.645	35756.588
Profit/(Loss) Before Tax	1662.896	2847.921	1841.633
Provision for Taxation	588.795	995.833	679.640
Profit/(Loss) After Tax	1074.101	1852.088	1161.993
Export Value	4286.181	2538.321	1270.000
Import Value	18507.160	11516.049	11830.515
Total Expenditure	48766.721	34543.724	33914.955

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	2.12	4.95	3.25
Net Profit Margin (PBT/Sales)	(%)	3.29	7.61	5.24
Return on Total Assets (PBT/Total Assets}	(%)	7.06	16.57	12.93
Return on Investment (ROI) (PBT/Networth)		0.29	0.59	0.57
Debt Equity Ratio (Total Liability/Networth)		3.22	2.66	3.42
Current Ratio (Current Asset/Current Liability)		2.18	1.52	1.20

Consolidated Balance Sheet (Parent Company)

(In millions of Korean Won)

PARTICULARS	2001	2000
Current Assets	2.485	2.740
Quick Assets	1.527	1.549
Inventory	0.958	1.192
Fixed Assets	9.108	9.140
Invested Investment	5.113	4.710
PP & E	2.923	3.337
Intangible Assets	1.071	1.093
Differed Assets
Total Assets	11.593	11.880
Current Liabilities	4.614	5.296
Long Term Liabilities	2.714	2576
Total Liabilities	7.328	7.872
Capital Stock	1.031	1.031
Capital Surplus	2.354	2.355
Retained Earnings	1.452	1.674
Capital Adjustment	0.571	1.052
Total Capital	4.265	4.008
Total Liabilities and Capital	11.593	11.880

Consolidated Income Statement (Parent Company)

(In millions of Korean Won)

PARTICULARS	2001	2000
Sales	16.601	14.836
Domestic	6.084	4.881
Export	10.517	9.955
COGS	12.915	11.821
Gross Profit	3.686	3.015
SG & A	2.980	2.094
Operating Profit	0.796	0.921
Non-operating Profit	2.145	1.042
Non operating expenses	2.367	1.234
Ordinary Profit	0.574	0.729
Extra ordinary gains
Income before tax	0.574	0.729
Income tax expenses	0.066	0.226
Net income	0.507	0.502

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 20^th January, 1997 at New Delhi in India having Company Registration Number 84548.

The company’s registered office at 221, Okhla Industrial Estate, Phase III, New Delhi – 110 020 has been shifted to the above address.

Subject is a wholly owned subsidiary of LG Electronics, South Korea. It started its operation in May, 1997 and within a short span of thirty months, the company achieved a turnover of approximately Rs. 10000 millions.

The internationally famed company LG, was started off as Lucky Goldstar, a small chemical company manufacturing cosmetics. The company was launched in 1947 by businessman, Mr. Ku-in-Hwe, in the second largest city in South Korea-Pusan.

Its' success ensues from the genial alliance between the Korean Government and the organisation. The South Korean Government guided the five chaebols into different industries and product lines. The company plunged into the electronics business under the Goldstar brand name in 1958. In the same year, it manufactured Korea's first telephone, refrigerator and black and white television and became the leader in the electronics business, in Korea since. In the succeeding years, it diversified into oil refining, construction, biotechnology, semiconductor, finance and even fashion.

It adopted the new name and corporate identity in 1995 from the company's two foremost brands, Lucky and Goldstar.

The Company’s registered office has been shifted from New Delhi to Uttar Pradesh w. e. f. 23.12.2005 and a new company registration No. 20-31138 of Kanpur ROC was Obtained.

Finance

Credit rating for the company’s commercial paper programme for Rs. 1000.000 Millions was reaffirmed as “P1+” by CRISIL, wich indicates very strong degree of safely with regard to timely payment of principal and interest.

Long term debt rating for the company was upgraded from “AA” to “AA+” which indicate high safety of timely payment of interest and principal.

Performance Review:

During the year sale has been Rs. 50429.600 Millions as against Rs. 37391.600 Millions in the last year. Earning before interest, depreciation and (EBITDA) and profit after tax been Rs. 3000.200 Millions (last year Rs. 3719.700) and Rs. 1074.100 Millions (last year Rs. 1852.100 Millions) respectively. While sale registered a growth of 35%, EBITDA and PAT declined by 19% and 42% respectively. Decrease in the profit is mainly due to higher cost of raw materials across all products, which company did not pass on to the customer. Despite low margins, the company could maintained it’s growth through product development, appropriate product mix and higher volumes.

Future Out Look

Looking forward the company is ready to meet the challenge posed by the market environment and confident to register excellent growth in all producer categories giving more thrust on GSM mobile Phones, IT related and Export

Sales and Marketing:

The company continue to maintained the market leadership in the consumer durable segment in year under review and it’s Brand “LG” remains to be the most preferred consumers durables Brand in India across all categories and subcategories. This has been made possible due to strategic marketing initiatives, continues product innovations, setting up of state-of-the-are manufacturing plans and the tremendous support and positive feedback of the esteemed customer.

Moving ahead with the key marketing programs, the company came up with promotional campaigns both at national as well as regional levels. LG Mega Diwali Offer (Dhoom Macha De) and Lg Indo-Pak challenge Offer (Khelega Kya) were two Mega Consumers offer among others.

Commemorating the spirit of the cricket and celebrating the universal passion for the game, LG has joined hands with International cricket Council (ICC) to promote LG ICC Test Championships, One day International and first ever-official ranking –the LG ICC players Rankings.

Reiterating it’s commitment to introduce latest cutting-edge technology products in the Indian market, LG has launched futuristic new products in almost all the categories like super Slim CTV, 3G phones, Sonoma platform notebooks, Dishwasher and Dryers and Myhomenet. Each product introduced is exclusive in its own categories.

LG has been named as “EFY Electronic Organization of the year”, “Consumer Durable Retailer of the Year” and also has been recognized as the Best Newsmakers of the year 2004 in the consumer durable categories.

Name of the company	LG Electronics India Private Limited
Presented By	Pradeep Panda – Company Sectary
1. Date and Description of the instrument creating the charge	Charge created on 27^th September, 1999 and registered on 25^th October, 1999 for Rs. 140.000 Millions Modified on the 10^th August, 2000 for enhancement to Rs. 240.000 Millions Modified on 8^th September 2000, for enhancement to Rs. 410.000 Millions Modified on 23^rd October 2001, and registered on 31^st December, 2001 for amendment in terms Modified on 7^th February, 2002 and registered on 5^th March, 2002 for creating second charge on the immovable properties of the company Modified on 10^th May, 2002 registered on 31^st May, 2002 for reduction of limit to Rs. 330.000 Millions Modified on 18^th June, 2003 registered on 10^th July, 2003 forincrease of the amount to Rs. 1500.000 Millions Modified on 24^th February, 2004 registered on 22^nd March, 2004 for creating second charge on the immovable properties of the company Modified on 21^st January, 2005 registered on 28^th January, 2005 forincrase the limit to Rs. 1750.000 Millions
2. Amount secured by the charge amount owing on security of the charge	Rs. 140.000 millions ( Rupees 140.000 millions)
3. short particulars of the property charged. If the property is the property acquired is subject to charge, date of the acquisition of the property should be given.	1. A first charge ranking pari pasu to the charges created/ to be created in the favour of State Bank of India, city bank N A, ING Vyasa Bank, Hong Kong and Shanghai Banking corporation and Deutsche bank and BNP Paribus By Hypothecation and/or pledge of the borrowers entire stock of raw materials, semi finished goods, consumables such as book debts, outstanding moneys and receivables (“Current Assets”) both present and future of the such form satisfactory to the bank 2. A joint Mortgage and Charge in favor of the Bank of all the borrowers immovable and movables properties both present and future including movable machinery, machinery, Machinery spares, tools, and accessories (“movable assets”) both present and future ranking second and subservient to the mortgages and charges created/ to be created in the favor of Standard Chartered Bank and SBI (for Term Loans ). The current Assets and movable Assets are hereinafter collectively referred to as “ the said Goods”
4. Gift of terms and conditions and extend operations of the charge	The above is to secure cash credit limits of Rs. 26.000 millions and WCDL Rs. 104.000 Millions, letter of the credit (Inland/Import) bank guarantee limit of Rs. 10.000 Millions with margin @25% on raw materials, stock in progress , consumables stores and spares, finished goods and book debt (cover period not to exceed 90 days) interest as per schedule 3 of the credit facility agreement or at such other rate as may be specified by the bank from time to time. In consideration of the IOCICI Bank lent and advanced/ agreed to lend and advanced to the company the facility, agreement and declaration by the company, inter alia, as follows: 1. Covenant by the company to repay the facility and pay interest and all other monies in the manner set out in the facility agreement between the company and the ICICI Bank and to comply with the terms and conditions of the said facility agreement. 2. The company to keep the said goods in marketable and good condition and also insured as provided therein. 3. Power of entry, power to take charge and/or possession of, seize, recover, receive, receive, appoint receivers of and remove and /or sale by auction or private contract, dispatch for realization or otherwise dispose of or deal with all or any part of the said goods etc. as provided therein.
5. Name and Address and description of the person entitled to the charge.	ICICI BANK LIMITED 9A Phelps Building Connought Place New Delhi 110001
6. Date and brief description of instrument modifying the charge	The company in favor of the state bank of India, by bdeposite of title deeds with ICICI bank Limited acting for itself and as agent of state bank of India, in respect of the companies immovable properties situated at plot No. 51, Udyog Vihar Phase2, Surajpur Kasna Road, Greater Noida, Uttar Pradesh in order to create a security thereon as and by the way of Joint Mortgage by deposit of title deeds pursuant to the resolution passed by the Board of Directors on 28^th March, 2005
7. Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The working capital credit facility of Rs. 1750.000 Millions presently secured by hypothecation and/ or pledge of the companies stock of raw materials, semi finished goods, consumable stores and other movables such as book debts, outstanding monies and future is now further secured by way of second charge on the companies immovable properties situated at Plot No. 51, Udyog Vihar Phase 2, Surajpur Kasna Road, Greater Noida, Uttar Pradesh
Name of the company	LG Electronics India Private Limited
Presented By	Pradeep Panda – Company Sectary
1. Date and Description of the instrument creating the charge	Goods security agreement Date 16^th January, 1998 (Registered in the office of the registrar of the company on 20^th April, 1998)
2. Amount secured by the charge amount owing on security of the charge	Fund base 70.000 Millions Non Fund Base 7.000 Millions (Letter of Credit) 77.000 millions
3. short particulars of the property charged. If the property is the property acquired is subject to charge, date of the acquisition of the property should be given.	Charge by way of Hypothecation: 1. All present and future movable goods, merchandise, products and or materials now or stored or lying at the Godown whosesoever the same may be removed or may for the long time being be lying or I the respect of which the company can be make or affect purport to make and deposit, pledge , hypothecation or charge whether the goods be in course of transit from one go down to another or in transit by Land or sea or awaiting clearance through customs or whether in the possession control or power of the company or the Bank. 2. All the present and future books debts, outstanding and claims due to any moneys receivables by the company
4. Gift of terms and conditions and extend operations of the charge	All the money payable by the company to the Bank shall carry interest rate at Citi Bank PLR from time to time calculated at daily balance and charged against the account monthly The company shall not at any time be entitled to borrow from the bank and/ or to cash credit facilities if and in case the balance at the time shall exceed 75% of the book debts of the goods and 50% of the value of the book debts hereby hypothecated and the company shall at all times maintained with the bank a margin 25% in the respect of the goods and 50% in the respect of book debts charged 3. The sale proceeds of the company of the goods and /or realization pf the book debt or of the other securities if any shall if sold or realized by the company be paid into the companies account with bank and if for any reason this is not done by the company it will not be deemed to be a waiver by the bank of it’s charge thereon The company shall be at it’s own expenses during the continuance of this securities keep the hypothecated goods in marketable and the goods conditions and shall likewise at it’s own expense insure and keep insured the hypothecated goods against loss or damage by the fire and such other risk as the bank may direct in the of the bank or I the borrowers names with the banks interest noted in the policy/ policies for the full market value thereof in an insurance office /s approved by the bank and policies shall be lodged with the bank The bank or any person appointed by the it shall have the right to enter with pr without notice to the borrower at any time or times the premises where the goods are stored and to inspect and take particulars of the goods and the bank shall be at liberty to have all or any of the goods valued at the expenses of he company by an appraiser or other values approved by the bank In the event of the borrower failing to pay on demand the balance or any other monies due to bank under this agreement the bank shall be entitled but not bound without any previous notice to the company and without prejudice to any other rights or remedies of the bank To take possession of and/or sell or otherwise dispose off either by public auction or private contracts at any times or times in such conditions as it may think fit with out reference to the company or obtaining it’s consent the goods or any parts thereof As attorney for and in the name of the company or otherwise to recover and receive and appoint receiver of the book debt or any part of give notice and demand to the debtor and third parties liable thereof and sue for recover receive and give receipt for the same and sell or realized by the public auction or private contracts or otherwise dispose off or deal with all or any part of such debts and enforce, settle, compromise submit to arbitration or deal in any manner with the book debts or any part threof.
5. Name and Address and description of the person entitled to the charge.	City Bank NA DLF Centre 5^th Floor Parliament Street New Delhi 110001
6. Date and brief description of instrument modifying the charge	Goods security agreement dated 28^th March, 2005 Certified True Copy Attached
7. Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The working capital limit of Rs. 620.000 Millions (consisting of fund based limit of Rs. 600.000 Millions and Non Fund Based Limit of Rs. 20.000 Millions) has been revised and increased to Rs. 1182.500 Millions (consisting of fund Based Limit of Rs. 1162.500 Millions and Non Fund Based Limit of Rs. 20.000 Millions)
Name of the company	LG Electronics India Private Limited
Presented By	Pradeep Panda – Company Sectary
1. Date and Description of the instrument creating the charge	From C – 1, C – 2, C- 3, Dated 13^th April, 1998 of loan for overall limit, hypothecation of goods assets and pledge of good and assets (Filed and registered on 17^th December, 1998)
2. Amount secured by the charge amount owing on security of the charge	Bank Guarantee – Rs. 50.000 Millions Rs. 10.000 Millions Cash Credit Rs. 14.000 Millions WCDL Rs. 56.000 Millions Letter of Credit Rs. 20.000 Millions
3. Name and Address and description of the person entitled to the charge.	State Bank of India, Overseas Branch, 9^th Floor, Jawahar Vypar Bhawan, Tolostoy Marg, New Delhi – 110001
6. Date and brief description of instrument modifying the charge	The company in favor of the state bank of India, by bdeposite of title deeds with State Bank of India acting for itself and as agent of state bank of India, in respect of the companies immovable properties situated at plot No. 51, Udyog Vihar Phase2, Surajpur Kasna Road, Greater Noida, Uttar Pradesh in order to create a security thereon as and by the way of Joint Mortgage by deposit of title deeds pursuant to the resolution passed by the Board of Directors on 28^th March, 2005
7. Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The working capital credit facility of Rs. 2300.000 Millions presently secured by hypothecation and/ or pledge of the companies stock of raw materials, semi finished goods, consumable stores and other movables such as book debts, outstanding monies and future is now further secured by way of second charge on the companies immovable properties situated at Plot No. 51, Udyog Vihar Phase 2, Surajpur Kasna Road, Greater Noida, Uttar Pradesh

Profile :-

Subject a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and ýý months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 5000 million. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Eco-friendly units amongst all LG manufacturing plants in the world.

Financial Performance: LG has been able to craft out in five years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment

Turnover for 1997 Rs. 1,250 millions

Turnover for 1998 Rs. 4,850 millions

Turnover for 1999 Rs. 10,560 millions

Turnover for 2000 Rs. 19,030 millions

Turnover for 2001 Rs. 22,160 millions

Turnover for 2002 Rs. 30,000 Millions

LG has been able to craft out in five years, a premium brand positioning in the Indian market most preferred brand in the segment.

Various studies have shown that the consumer is well informed on the health awareness front. LG was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. Its vision was to become a 'Health Partner' for its consumers worldwide and therefore formulated its corporate philosophy to make peoples' lives better, convenient and healthier. The CTV range offered by LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts the picture to make it more comfortable for the eyes. The entire range of LG air-conditioners have 'Health Air System', which not just cools, but keeps pollution out. Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN System', which preserves the nutrition in food and washing machines have 'Fabricare System', which takes the health factor down to ones clothes. All the products offered by the company have unique technologies, developed by its R&D departments that give customers a healthier environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer electronics, home appliances and computer peripherals industry. The company had till the month of October 2001 achieved a cumulative turnover of Rs 50000.000 Millions in India since its inception in 1997, making it the fastest ever Rs 50000.000 Millions clocked by any company in the Indian consumer electronics and home appliances industry. Having achieved this milestone, LG achieved another benchmark with the first ever sales of Rs. 0.100 Millions ACs (Windows and Splits) in a calendar year. LG is poised to surpass its turnover target of Rs. 27000 millions this year and clock a turnover of Rs. 30000 millions.

This year, LG has emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In Colour Televisions having set the sales target of one million units of Color Televisions for 2002, LG has already achieved the one million mark in the month ahead of its target.

LG Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to over 0.500 millions households in India.

AS PER WEBSITE:

About Us > Vision

LG Electronics vision for the 21^st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. LG Electronics has set its mid-term and long-term goal to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010. They aim to utilize their core capabilities of product leadership, market leadership and people leadership and enhance their corporate culture of team work and fun workplace to achieve their mission of becoming "2 by 10", that is, double their sales volume and profit by year 2010.

Message from MD

Adding value to the customer's life as a motto was upheld when LG touched the Indian shores way back in 1997. Today, as they are entering a decade, it is very heartening so see that their company and all it’s employees have not only lived up to this motto, but taken it to tremendous heights through sheer hard work and determination.

Their mission simply was to provide their valued customers with products which add value to their life, and to build an ever lasting relationship based on that foundation. Today, this mission has seen us emerge as leaders across categories in the Indian Consumer Electronics and Home Appliance segment.

LG has in a short span of nine years setup two state-of-the art manufacturing facilities and achieved an un-precedented turnover figure of Rs. 75000.000 Millions in 2005. They have laid out an extensive network of 46 branches across the country employing a total of 2700 people, making LG one of the most respected and visible brands in India.

I would like to take this opportunity to make a mention of the Blue Ocean strategy which LG is adopting worldwide. This strategy will not only help us to capture new and unexplored markets, but also to strengthen their position as market leaders. LG plans to double it’s sales volume and profit by 2010 with 30% of it’s sales volume and 50% of its profit being derived through Blue Ocean products.

Looking forward, their endeavor will continue to be the dictum of providing their customers with Intelligent and futuristic products though constant innovation and market research. They also aim to make India their export hub to consolidated LG’s position not only in the domestic, but the international markets as well.

Through this website they hope to provide an insight into their company and their brand. They invite you to interact freely with us through this medium and provide the valuable feedback

Internal Culture

As they all know requirement of trained and experienced Professional with the desired mindset is the need of the hour for any Organization to Survive and Grow in this competitive environment.

To cope with the growing expectations of business and in order to give the organization a competitive edge to the business they in LG have streamlined the whole system by integrating the HR fundamentals with Information Technology and have adopted some practices unique to LG.

LG as a brand and a market leader in India attracts candidates in hordes and it's Industry leadership status serves as a major factor in attracting employees. Therefore LG has the ability to hire the best in the industry.

Once these candidates are hired, they undergo and exhaustive induction programme for a duration of 14 days under which the candidate is acquainted which each and every aspect of the organization. A thorough integration with HR & Business Processes takes place and the formulation of a KPI is done within three days of taking the candidate onboard. Customer Department/Vendor Department interaction also takes place.

 LG as an organization takes pride in the fact that they have the highest manpower productivity and the lowest manpower cost in comparison to the industry. Infact LG is benchmarked in terms of manpower costing.

Employees are given a chance to visit Korea on completion of years in LG. Apart from this LG also has a family ambassador programme where a dedicated mentor goes to the workers house and talks to his family, their problems etc. and tries to make their situation better. All workers are served lunch alongwith the other senior employees so that no demarcation is made.

Infact lunch is first served to workers and then to the white collar employees. On the first Monday of every month the workers meet the MD and 50 workers amongst of them get awards for outstanding performance.

Besides this, there are informal clubs such as singing, games and yoga clubs which aims at de-stressing employees and building their overall personality.

Corporate Social Responsibility (CSR)

With the advent of globalization in India, the concept of Corporate Social Responsibility has emerged as one of the most important aspects of corporate behavior. Acknowledging this responsibility is crucial for an organization's sustainable development and future access to the global market. A definite corporate social responsibility(CSR) plan has therefore not only become an integral part of an organization's brand building strategy, but has also emerged as an important tool to enhance the organization's credibility, attract potential investors and clients and employ the best of industry talent.

As a leading corporate in India, they at LG believe that corporate contribution to society when guided by self-interest results in long term goodwill building, and have therefore endeavored to assume responsibility for the needs of its people, the environment and the society. They have consistently looked beyond its immediate business environment to address larger societal issues. This concern springs from the belief that a true corporate vision must embrace the wider community rather than just shareholders, customers and suppliers.

At the same time, there is nothing idealistic about LG's CSR vision, nor is it in conflict with hard-headed business sense. It is purely an understanding on LG's part that the time, resources and in-house professional expertise invested in social development projects pay rich dividends to the company and the communities in which it operates. Therefore at LG the message is clear: creating profits can and should go hand-in-hand with generating goodwill.

A slew of numerous initiatives have been undertaken by LG ever since its inception in India. The company has been actively involved in providing social benefits to the disadvantaged sections of the society. They also have a focused plan for providing health services to the under privileged children, undertake animal health care and enhance professional skills of the unemployed youth.

LG India has worked jointly with Prayas, a Delhi-based NGO by undertaking campaigns / activities for the welfare and upliftment Of underprivileged street and slum children and providing them services in the field of education, health care, shelter, vocational training and other rehabilitation programmes.

The company also tied up with HELPAGE India ,the country's largest voluntary organisation working for the cause and care of disadvantaged older people.

LGEIL also takes care of 24 villages around Greater Noida out of which six have been adopted formally. The company has on its pay roll three doctors who visit these villages daily and offer Free Medical Care, which comprises of free check ups and a free distribution of medicines.

LG's commitment to contribute substantially to the community led to the formation of the 'Tinkha,' a community development club consisting of 10 people. It recently organized Blood Donation Camp where 172 employees donated blood in one day.

LGEIL is also generating self-employment opportunities for the people in the form of tailoring, knitting etc. with the help of an NGO named, Jan Shikshan Sansthan. LG is also imparting repairing training for the youth on refrigeration and CTV.

In the field of Animal Husbandry, a veterinary doctor from World Buffalo Trust visits a village everyday and provides medicines for the domestic animals. Recently, a vaccine drive was also initiated to immunize all the animals in the 24 villages around Greater Noida. The drive will continue for the next 6 months.

Apart from the planned activities, LG has always donated generously to sudden natural calamities like the recent Tsunami disaster and the Mumbai floods.

Product Categories

Flat Panel Displays
CTV
GSM
Air Conditioners
Refrigerators
Washing Machines
Microwave Ovens
NoteBooks
Audios
Vacuum Cleaners

LG Plasma Display Panels

LG Electronics has achieved new dimensions of technological excellence among the Plasma Display Panel manufacturers. The PDP is available in sizes of 40, 42, 50, 60 and 71 inch internationally.

LG has world’s slimmest panel at 78 mm to the world’s biggest panel at 71”. The company is the only brand in India which offers “The largest range of models in the PDP category. Cutting Edge Technology such as Image Stick minimization, Orbiter, Whitewash, Flexi PIP, Double Window Screen are some of the features which makes LG’s PDPs, the best made Plasma Panels ever.

LG Televisions

Slimagic

In the Indian household scenario where space is a major constraint, LG has come up with an innovative solution by way of World’s slimmest Flat CRT TV, Slimagic. In India, especially in the metros, there is a major concern of smaller living space, and LG’s latest innovation provides a solution to utilize the limited living area / space in the most useful manner.

The technology used for Slimagic is highly advanced with a new picture tube which makes the TV super slim and occupies 30% less space. The unique features of the Slimagic TV is that it a sleek TV, which occupies less space without compromising on picture quality and looks attractive with double tone colors. Slimagic is available in 21” and 29”

The LG X-WAVE TV

X Wave is India’s first TV with wireless Audio Transmitter. This new technology will enable consumers to listen TV sound through any audio system with FM receiver. Thus resulting in Home Theatre experience. The X Wave Wireless Sound Television comes with unique chip which transmits the TV sound on FM frequency. The TV sound output can be received by any audio set with FM receivers. This will enable consumer to experience home theatre sound output. The current model is available in 21” category and LG plans to launch 29” Flat X wave shortly.

LG Mobile Phones

LG Electronics has launched the its latest Hi-end Camera Phone P7200, S5200, S5000 and M 6100 GSM Handset recently.

About LG P-7200

The P-7200 GSM is a high end phone with Unlimited Video Recording which is trendy, light and easy to carry. It has a 2 mega pixel camera with Video download and playback support, integrated USB Memory of 64 MB which makes it a Plug & Play device & a external memory card slot which can be upgraded till 1GB, MP3 Player with never before DJ repeat effect, Bluetooth, E-mail, 1000 nos. Phonebook Memory etc. the handset is loaded with accessories like Data Cable, 64 MB micro SD Card & a Stereophonic Headset Kit.

About LG S-5200

The S-5200 GSM has up to 2 hours of Video Recording and is MP3 enabled with DJ repeat effect, MP3 Ring tones, Stereo Surround Sound, Bluetooth, 1.3 mega pixel camera, 4x digital zoom, Video download & playback facility, 64 MB USB Disk which makes it a Plug & Play device & USB Charging. The handset has MMS, JAVA, GPRS, 262K Color Display, 1000 phone book memory, Tri-Band and comes with accessories like Data Cable & a Stereophonic Headset Kit.

About LG S-5000

The LG S-5000 the trendy looking phone with Granite Finish and is one of the lightest handsets available in the market in India. Its fitted with a 1.3 mega pixel camera, Bluetooth, MMS, GPRS, JAVA, 262K Color Display, 1000 phone book memory etc. The handset has Continuous Shoot, Photo Frames, Color Effects, White Balance features.

About LG M-6100

The M-6100’s is sure to gather attention with it’s its slim style and sleek design. Weighing in at just 88 gm, this mini wonder is equipped with a host of features. It is the first GSM handset in India that has a pre installed English to English Dictionary, making sure that you are never lost for words ever again.

Armed with a 1.3 mega pixel digital camera with video recording enables one to capture precious moments perfectly with crystal clear details. Its built-in flash allows one to take more vivid images regardless of time and place.

Another advantage with this LG Mobile is that it comes with Plug and Play feature. Just connect it the PC and you can copy and paste any Video, MP3, Photos or Data ‘to’ and ‘from’ the PC without any driver support. Last but not the least this beauty comes with and internal memory of 128 MB, USB disk, 1000 X 5 phone book memory, built in modem & MP3 Player.

It is loaded with Polyphonic and MP3 Ring tones & also has MP3 shortcut Key, DJ Repeat Effect, Graphic Equalizer and Real MP3 chip for real Sound Effects.

LG Air Conditioners

Whisen Range

Marvel in Design & Technology, the Whisen range is ideally suited to match the urbane interiors. This range has been armed with intelligent features like energy efficient compressors which enables minimum power consumption and higher cooling efficiency. It comes equipped with features like Fuzzy Logic, Tele-Control, Nano Plasma-Pure filter, 3-D Cooling in addition to the ultra-slim Golden Section design to match these unique features. The Whisen range is available in prices ranges between Rs. 23,490 – 66,000/-

The Whisen range encapsulates the following range of smart air conditioners:

Art Cool & Art Cool Mirror Split ACs - Promising to change the face of air-conditioning in India, LG’s has developed and launched the spectacular range of Art Cool ACs, the perfect fusion of State-of-the-art technology & design. The highlight of the Artcool range apart from the technology excellence itself, is it’s ability to transform itself from a normal AC to a stunning designer’s delight, with the ability to match not only the buyer needs, but the various moods as well. The range is customized to the extent that it can be designed to match the distinct décor of the buyer’s home, varying from room to room.

The Whisen range also includes the SmartSense Twin Power Cooling System AC and the revolutionary 3-Way window Air Conditioner. The SmartSense ACs are equipped with twin compressors, that co-work intelligently to reach the set temperature, once the temperature is attained, only one compressor works while the other rests & saves power. The 3-Way Surround Cool Conditioner comes in 1 Ton/1.5 Ton AC with 3-D airflow technology made possible because of a unique blower that gives the additional advantage of cooling from 3 sides. This enables uniform cooling throughout the room, reducing compressor running time and resulting in energy conservation.

Intello Air Range

LG Intello air conditioners encompasses an impressive portfolio of ACs such as Wide Cool, 4D Intake, Surround Cool, Energy Guard and EZclean grill AC.

LG Intello Air ACs are equipped with Plasma Pure Filter which kills bacteria, and makes the surroundings free from micro-organisms providing healthy living standards. Some of the other outstanding features of the Intello air range include Deo-Air Filter, which absorbs unpleasant odors and keep the air fresh, Jet Cool & X Power Fans - for faster & uniform cooling, Energy Saver Modes for economical operations. The AC’s have built-in anti-corrosive Gold Fins and Blue Fins, these are hydrophilic coated fins, that apart from preventing corrosion also reduces noise levels, saves power and improves efficiency.

LG Commercial Air Conditioners

The MPS CAC is the first of its kind in this segment worldwide and is especially designed for the consumer with integrated cooling solution requirements. This product is specifically targeted towards the premium residential and mid sized commercial establishments.

The MPS technology works on the concept of Multiple compressor incorporated in single condensing unit with multiple indoor units, and the various indoor units will operate through electronic Controls, so that it will run as per the heat load requirements. . The unique features of the new LG MPS CAC include energy saving capacity up to 46% and high reliability cycle. It enables easy installation with the help of hassle free pipe work which extends up to 120 meters for multiple connectivity. The MPS range is introduced in five models ranging from 35 to 100k cooling capacity.

The LG MPS CAC strengthens LG’s portfolio of air conditioners and after maintaining the numero uno position in the room air conditioning segment, LG Electronics is geared up to reiterate the success in the commercial air conditioning segment also. The LG’s Commercial Air Conditioning (CAC) product range includes ceiling concealed air conditioners suitable for (large conference, marriage halls, showrooms), floor mounted package (malls, multiplexes, hotels, offices) cassette AC type (restaurants, malls, offices) Roof top single packaged (auditoriums, industries, multiplexes, Banquets) and Multi V (Variable refrigerant flow) air conditioners. The MPS CAC is the main attraction in the commercial air conditioning range due to it’s unique features and technological marvel

LG Refrigerators

DIOS
LG India launched the World’s First TV Refrigerator – TV DIOS with a 13-inch hi-definition TFT LCD TV installed at the center of its door. The 600 litres TV DIOS also has a built-in radio tuner providing access to FM stations and is supported by built-in speakers. It has an astounding silver nano-antibacterial and nano-carbon deodorizing technology which has won LG the ‘KT new technology mark.’ Thus, this refrigerator brings together the best in food preservation and storage with multi-media functions as a quintessential digital home appliance. LG has a complete range of DIOS with over 30 different models world over.

FROST FREE

LG has launched an exhaustive range of feature rich diamond cut frost-free refrigerators ranging from a capacity of 230L to 751L. The company currently has six variants in 230 liters capacity, four variants in 250 liters and five variants each in 280 liters and 310 liters capacity respectively. The company also launched two variants each in 350 litres & 390 litres capacity and 6 variants in 400+ range.

LG’s Diamond cut refrigerators, with new features, are a whole lot easier to use. Responding to extensive consumer feedback, LG offers the convenience of more storage space in the door. LG has introduced features which are more customer friendly and will pave a path to more convenient usage of the Refrigerator. The Ice Beam Door Cooling technology in the frost-free refrigerators enables uniform cooling in the refrigerator thus keeping the food fresh for long retaining its nutritive contents. Beside the patented Ice Beam Door Cooling LG has also introduced “Green Iron Door Cooling” a revolutionary new technology that uses non-toxic substance called Catechin, extracted from green tea leaf to prevent bacteria, mold and unpleasant bad odor from entering the refrigerator

The new range of refrigerators will now be available with more value added features such as a MICOM panel, Kangaroo Tray, Anti-bacteria gasket, sliding door bin in addition to the already existing features like FIR Lamp, Cell Fresh Crisper, Door Cooling, humidity controller which helps in keeping the food fresh, healthy and crispy for long. Anti-Bacteria gasket provides bacteria free zone, which delays the formation of molds, hence keeping food fresh and healthy. Sliding door bin has further addressed the problem faced by users in storing 2-liter bottles in their refrigerators. This multi-utility shelf provides convenience in storing bigger bottles and can be detached to keep more bottles.

The Kangaroo tray glides open smoothly and has a pullout; full-width front section that provides two tiers of storage, making Vegetable compartment access easier than ever and with the drawer's unique design, there is plenty of storage room for all shapes and sizes of fruits and vegetables.

LG Washing Machines

TROMM

LG Electronics, has unveiled the latest front loading TROMM series, drum washing machines. Its futuristic wash features such as Fuzzy Logic technology ensures that once you press the start button, smart sensors automatically detect the laundry load and water level. Adjustments are then made in the water levels and cycle time based on the laundry load to give you that perfect wash. Fuzzy Logic also detects machine imbalance and excessive foam formation and adjusts the same for the best washing performance. At the touch of a button LG TROMM saves water and energy giving you a clean and convenient wash.

TROMM has the largest capacity 7 kg drum load capacity, Single dog Dial feature, Delay Timer, Digital Display. It has Eco Wash, 9 Water levels and GRPP Outer Drum features give the benefit of saving electricity. Self Diagnosis mechanism, child lock and rat cover are the added safety features.

Top loading fully automatic washing machines

LG’s Top loading range of fully automatic washing machines comes equipped with the revolutionary
i Sensor technology. The i-Sensor technology is a combination of 7 sensors against the normal 4 present in other machines, which delivers a supreme wash. The hardness, detergent and temperature sensors are the additional sensors. 7-water level sensors help in power saving of upto 15% more than regular washing machines. LG also displayed its Turbodrum and 3 step wash range of machines which delivers best towards washing and rinsing performance. The washing machines also come with safety features such as imbalance and door lock sensor with child-lock feature. The machines are equipped with self tub clean system for better hygiene . All these superb features enable washing that offers tangle free clothes, less wear and tear and complete yet gentle cleaning .

Aesthetically very appealing, LG Washing Machine has stylish European looks which is a unique blend of eye-catching design, user-friendly controls and digital as well as window display. The FRONT LOADING Washing Machine range comes in four colors, making LG the only company in India to offer so many color options.

Semi Automatic Washing Machines

LGEIL has a total line up of 11 models in SAWM offering capacity of 6.2, 6.5, 7.0 & 7.2 Kgs. The highlight of the Semi Automatic Range was India’s first 6.5 Kg capacity semi-automatic washing machine, developed through the efforts of LGEIL’s robust in house R&D & Product Planning Team, with an investment of over 250.000 Millions. This washing machine has been designed taking into consideration the aspirational as well as functional needs of Indian consumer. The new Semi automatic machine launched has international looks and elegance.

LG WASHER & DRYERS

The LG Dishwasher is a technological miracle with high performance levels, dependability, energy efficiency and convenience. The uniqueness of the LG dishwasher is that it enables 50% fold down times to enable washing of large vessels, various washing systems and an aqua stop which will detect water leaks. It also has a triple filter which increases the efficiency of use of water and energy . The dishwasher can be hailed as the gadget of the millennium since it requires least water consumption has more programs & comes in sleek design.

LG’s Washer Dryer, unique in its offerings marks entry of this segment in Indian market. Consumers would be offered complete Wash & Dry solution with this compact machine which has a large capacity of 8 kg washing and 4 kg drying capacity. Its features of auto dry and max spin speed of 1400 RPM making LG washer dryer a value for money Proposition.

The Dryer comes loaded with latest condensing technology for drying clothes thus eliminating the need for air vent and duct which is commonly observed in current Indian offerings . It has dual lint filter and can handle bulk load upto 7 Kg .

Each LG solution comes out with the 2-year warranty and assured service support. Aesthetically very appealing every LG product has a unique blend of eye-catching design, simple controls and superb washing and drying solutions.

LG’s milestones in the Washing Machine category:

1997: LG launched its top loading washing machine from Korea

1998: Washing machine factory setup and start semi automatic washing machine

1999: Washing machine export started and launched front loading

2000: Launched MICOM controlled Semi automatic WM

2001: Launched 10 Kg. Digital Display top loading and new range of front loading

2002: Home production of top loading WM

2003: Became No.1 brand in WM category

2004: Launched TROMM

LG Microwave Ovens

LG has launched their high end microwave ovens SolarDOM and WaveDOM. The LG SolarDOM is currently the world’s best microwave oven with its unique Light wave Technology which enables three times faster cooking, high nutrient retention, better energy efficiency (50% saving) and high convenience levels. The Round Cavity design makes it easy to clean and at the same time saves space. It has a Indian Auto Menu option, Multi Rotisserie grill and Smart Guide Display. Consumers also have an option of getting an installation kit if they have built-in type of kitchens.

The WaveDOM has unique Round Cavity feature which enables 3 times faster cooking, 12% bigger turntable size, 60% more usable volume than a normal square cavity and easy to clean features. Each LG model comes with the 1-year warranty and assured service support. SolarDOM outsmarts conventional cooking appliances in terms of design as well; an acknowledgement confirmed by the iF Design Award, one of the world’s most pre-eminent design achievements

LG Notebooks

LG has launched two Premium state-of-the-art notebooks based on the latest Intel’s Napa platform with dual CPU cores, developed in INDIA by Intel. Dual cores combine two cores in a computer’s CPU to deliver a 30 per cent better performance when processing multiple tasks. These two LG Notebook models are LG P1 Express Dual and LG M1 Express Dual with 15.4 inch wide-screen and 15 inch TFT respectively.

These Notebooks from LG are a unique combination of design, performance, entertainment and security. These LG Express Dual-core processor based Notebooks are exquisitely designed to give the users the experience of handling a sleek, gorgeous and technologically rich notebooks.

Entertainment has also been given impetus and these LG Notebooks are bundled with 5.1-channel Dolby Digital, SRS, 24-bit HD Audio, 3-Port Analog Output, S-Video and many such amazing features on select models.

The newly launched notebooks are equipped with enhanced security features such as TPM (Trusted Platform Module), Finger Print Reader and HDD security, and are Bluetooth enabled.

LG Audio

LG now has a comprehensive lineup of 17 products to offer to its consumers in the Audio segment, making it one of the largest line-ups in the audio market.

LG’s Audio range comprises of the most progressive range of wireless MP4 Home Theatres, MP3 Home Cinema Systems and Room Theatre Systems. LGEIL has one of the widest product portfolios in Audio category at the moment and further plans to enhance the portfolio with a slew of futuristic launches. LG Audio systems come equipped with wireless speaker systems, which works on 2.44 GHz frequency, which is far superior technology than offered by any other company in India. The highlight of LG audio segment is the Next Gen Karaoke System (NKS) developed by the company.

Next Gen Karaoke Systems (NKS)

LG has launched NKS will be launched in four variants to suit the needs of a wide base of customers. Two NKS variants are available in Home Theatres –one with 500 w rms, tall boy sleek design & the other With 220 w rms bookshelf / Wall mountable speaker design. The Third variant has been launched in DVD Audio System category with 2200w PMPO and 3 DVD changer / super-impose function. LG will also introduce a variant in MP4 DVD Player equipped with Optical audio output and Multi format playback facility.

NKS is replete with a host of features, with each one further adding to the user’s enjoyment. The system comes with free software contained in two DVDs with 1800 songs from various genres, both in Hindi and English. The system provides on Screen scrolling lyrics with guiding highlighter to enable the singer to sing along even if they don’t know the lyrics. A free microphone is provided with all NKS systems alongwith 1800 coded songs book for easy song search & selection.

LG Vacuum Cleaner

LG presents its unique range of “Healthguard” Vacuum Cleaners packed with advanced features which make them the most powerful vacuum cleaners. The advanced technology in them can draw out dirt and germs from the difficult places. It not only rids the surfaces of dust particles as small as 0.3 microns but cleanses the air of germs, mites and other harmful microbes.

It’s unique HEPA Filter is a multi layer filtration system which removes particles 300 times smaller than human hair. The Sani Punch nozzle, specially designed for cleaning beds and blankets uses air pressure to dislodge the toughest of dust mites and bacteria. is the 1300W-1400W power behind the machines. It also has a convenient auto-retractable cord and a washable dust collection jar. LG Healthguard Vacuum Cleaners comes in range of 4 models – Roboking, Cyking, Extron punch, Spark and Sweeper

News Room >> LGEIL Release  Details

LGEIL signs on Abhishek Bachchan to endorse its ‘Intello’ Range of Products

15-JUN-06

LG Electronics India Private Limited (LGEIL), India’s leading consumer durable company is making waves in the market with the launch of its brand new advertising campaign for its “Intello Range” of home appliances, featuring the country’s most popular heart-throb, Abhishek Bachchan.
With the new trailblazing advertising campaign, LGEIL has moved out of the association of the brand with the family and health platform, giving itself a fresh and young appeal. This is the first time that LGEIL has signed on a movie star as a brand ambassador to launch its new positioning for its household appliances, lending a differential appeal to the whole category. LGEIL’s buoyant growth and leadership in the consumer durable market is reflected in its youthful positioning of the brand. The stature of LG and that of the charismatic Bachchan junior find a complimentary association with each other, making Abhishek Bachchan the new face of the No 1 consumer durable brand of the country.
Commenting on the new brand positioning and the subsequent new ad campaign, Mr Sandeep Tiwari, Head – Marketing, LG Electronics said, “Historically, consumer durable brands have portrayed women as the perfect wife, homemaker or a mother. Through this fresh new communication campaign, they would like to break through the regular mindset and move up one level by thanking her for what she is. A woman feels most delighted when the man in her life acknowledges her efforts and compliments her. LG brings in its ‘Intello’ home appliances to aid her beloved in making her feel special. Abhishek Bachchan, the most eligible bachelor in the country fit their brief well. Along with charismatic appeal that transcends across all sections and demographics of the society, a vital element for LG Electronics as a consumer durable company, Abhishek also exudes an aura of aristocracy, an aspirational quality that he confers to this association with LG’s Intello Products”

The brand new advertising campaign reflects the evolution in the communication approach of LG’s home appliances giving it a brand new identity, youthful image and customer connect. LGEIL, through its new brand communiqué, breaks away from its health platform, conceptualised by the company way back in 1997.

“The health platform is now being adopted by a number of ‘me too’ brands. Also the need of the hour was to graduate to a ‘Health Plus’ objective for their campaign. Thus came the idea of ‘Intello’, signifying the intelligent and futuristic technology that the brand offers. With the new positioning, LG Refrigerators will now be called ‘Intellocool Refrigerators’, Airconditioners as ‘Intelloair Airconditioners’, Washing machines as ‘Intellowash Washing Machines’, Microwave Ovens as ‘Intellocook Microwave ovens’ and Vacuum Cleaners as ‘Intelloclean Vacuum Cleaners’ added Mr Tiwari.

The hugely popular advertising campaign featuring Abhishek, conceptualised by LGEIL is directed and executed by Pradeep Sarkar.

LG has signed a contract with Abhishek for a period of two years, during which the star will endorse the entire range of home appliances of the company. LG plans to utilize this association for various communication channels such as print and television ads, outdoor publicity, road shows and strategic events amongst others. Interestingly, LG has taken on non-celebrity faces posing as Abhishek’s wife, in an attempt to relate the script to every female viewer. Every woman will be able to imagine herself being wooed by the star in the situations depicted in the TVC - all very special and treasured moments.

LG Electronics strengthens their customer service training initiatives

12-JUN-06

New Delhi, ….., 2006: LG Electronics, the leading consumer durable player in the country, has undertaken unique training programmes to enhance their customer service network and re-iterate the company’s commitment towards it’s valued customers. Through these initiatives LG aims to set new benchmarks in customer service, enhance brand credibility and eventually increase customer base.
The highlight of LG’s training module is its focus on the technical and behavioral aspects, over and above the field training itself. LG has set up 4 training centers across India, namely, Greater Noida, Pune, Chennai and Kolkata to train engineers and plans to spend a considerable sum of Rs. 12.4 million annually on training.

Speaking on the importance of customer service training, Mr. Sanjay Arora, VP Manufacturing & Customer Service, LGEIL commented, “They at LG recognize that customer delight and satisfaction are crucial factors determining the growth trajectory of a company and give it a competitive edge. This knowledge has prompted us to streamline their customer service efforts and adopt various training modules.”

In keeping with this vision, LG has started the concept of doorstep training program, wherein the chief trainer from LG goes out in the field to train service engineers on different levels. The company has added another first to it’s credit by providing highly customized training to service engineers, depending on whether they are hired to service high end products or mass products. Recognizing the difference in expectations of customer who own premium LG products, the company has introduced the facility of Standby Sets, wherein a replacement of the product being taken for servicing is provided to the consumer to minimize inconvenience. LG currently has a total of 13 trainers providing training for varying durations, depending on the profile and level of the service executive, the product category for which the training is being imparted and past experience of the engineer. The engineers are evaluated periodically by the training academy at LG.. Till April 2006 LG had been providing 2 “mandays” of training to each engineer. By end of the year 2006, the aim is to achieve 6 “mandays” of training to each engineer in case of Customer Service.

LG also inaugurated two very unique LG Service Malls recently in New Delhi, one in South Delhi and other in North Delhi, with an exclusive purpose to streamline and address service related concerns of LG customers as promptly and efficiently as possible. These are one stop shops established to cater to servicing issues arising in any of the products under the LG portfolio, which double up as a training ground for service engineers as well. LG plans to invest Rs 25 million in 2006 – 07 for setting up more of these specialized service malls across the country.

Press clipping

LG Electronics India postpones IPO plan

Wednesday, September 24, 2003 :

L G Electronics India Private Limited (LGEI) will not be going in for an initial public offer (IPO) for the next 2-3 years.

“Due to strong internal cash generations in their Indian operations the Company plan to invest $ 50 million per annum through this route,” said K R Kim, managing director of LGE.

“Sometime back, the company was considering an IPO, but postponed it due to bad market conditions. Today stock markets are up, but they do not need money now,” he added.

LGEI’s plan to set up an assembly unit at Bhuj in Gujarat has still not received clearance, after more than a year having passed by. Kim said that some nitty-gritties have still to be sorted out with the Gujarat Government.

“Due to the various tax exemptions provided at Bhuj they are interested in having a plat there. But, the unit will be owned and set up by a private player, whild LGEI will be its exclusive buyer. The Company is not going to invest money in setting up this plant,”. Clarified Kim.

He said that $ 30 million was being invested at the new plant coming up at Pune and which would to be commissioned in October 2004.

This facility will manufacture colour televisions, airconditioners, refrigerators, washing machines, microwave ovens and colour monitors. Next month it will launch GSM mobile phones and by end of the year a note-book PC.

LGEI is targeting sales of Rs. 4,5000 millions in 2003 as against Rs. 33,000 millions achieved in 2002. Exports will be raised to $ 30 million in 2003 from $ 20 million in 2002. It is planning to add 500 more dealers to its existing 2000, with a special focus on rural markets.

After achieving a turnover of Rs. 1700 millions in Gujarat in 2002, it is targeting sales of Rs. 2400 millions for 2003. The Company has opened a second branch in Rajkot to cater to customers in Saurashtra. It plans to increase its area offices, sub offices and dealerships to semi-urban and rural parts of the state.

LG BAGS THE COVETED NASSCOM “INDIA IT USER AWARD”
· LG rated the best IT User in the ‘Consumer Good’ category Award based on meticulous Nasscom-IMRB survey

New Delhi, September 1, 2004:

LG Electronics India Private. Limited (LGEIL), the Consumer Durables and Electronics major, today announced that it has been awarded the coveted Nasscom “India IT User Award”. Mr. Arindam Bose, DGM, IT, LGEIL, received the award on behalf of LGEIL at Hotel Hilton Towers, Mumbai. LG received the award for the best IT usage in the ‘consumer durable’ category, after a meticulous appraisal of its IT processes by a highly skilled team from Nasscom and IMRB. LG’s IT usage was found to be the best among its categories on the parameters of IT preparedness, policy, IT infrastructure, people, processes and IT implementation benefits.

The India IT User Awards are assessed on a model developed by eTechnology Group@IMRB to assess the e-readiness or preparedness of companies to adopt ICT infrastructure to boost their business excellence.

Speaking on the occasion Mr. Arindam Bose, DGM, IT, LGEIL, said, “ It is a real moment of pride and honor for all of them at LGEIL, and he express his heartfelt gratitude to Nasscom and all other organizers of the event. At LG they have always seen IT as an enabler of processes than a mean to itself. IT has truly enabled LG in streamlining of its business processes leading to better business and ultimately adding to bottomline.”

The awards were given on the basis of a survey conducted by Nasscom in association with IMRB. In addition to the survey, a special team at IMRB and Nasscom conducted physical audits for top three companies in each category. More than 200 companies participated in the Awards evaluation on invitation basis.

NASSCOM is India’s National Association of Software and Service Companies, the premier trade body and the chamber of commerce for the IT software and services industry in India. NASSCOM is a truly global trade body with around 850 members, of which nearly 150 are global companies from the US, UK, EU, Japan and China. NASSCOM’s member companies are in the business of software development, software services, and IT-enabled/BPO services.

Times Network dt. 14/02/2005

NEW DELHI: Conventional wisdom would have it that if the market witnesses entry of new players, the incumbents see a squeeze. However, this is just one of the marketing dictum which LG Electronics has busted in the Indian consumer durable market.

With market shares ranging between 25-40% across major product categories even with the re-entry of Chinese players, the question being raised is what next.

While critics argue that financial troubles in BPL in the CTV segment and at Whirlpool and Electrolux in appliances gave it a leg room to expand in the past, the company believes the next phase of growth will come from expanding the market rather than brand war for market share.

Sample some statistics. LG ended 2004 with market share of 24%(Jan-Dec 2004) for CTVs, 33% for washing machines, 41% for microwave ovens, 26% for refrigerators and 35% for airconditioners.

More than anything, the company has actually been driving the market growth. According to ORG GFK data, for product categories like washing machines and refrigerators, the total additional value created in the industry during 2004 was less than the additional business generated by LG as a company alone. This implicitly means that if they take out LG, the market has degrown.

In the meantime, it has left its Korean counterpart Samsung far behind in all consumer durable products. So, what used to be identified as a Korean chariot is now being driven by a single horse.

Says Salil Kapoor, head of marketing at LG Electronics, “They are driven by their sales targets which is the primary objective, rather than market shares. Slow market growth is not an argument for sitting back.”

Competitors raise a question mark on the high levels of market shares that LG has garnered till date. Says Ravinder Zutshi, director sales at Samsung India, “No one has been able to sustain more than 30% market shares, not just in India but even internationally. It actually becomes cost bearing.”

With BPL in the final leg of the legal battle with its lenders, Sony coming out of its shell, Electrolux and Whirlpool tying up the loose ends to get out of the financial mess in appliances, the going will be tougher in the future. Specially in home appliances where the company is targeting 30% value growth in 2005.

T K Banerjee, president and CEO of Haier in India, terms the measures undertaken by They stern appliance brands to bounce back as ‘tit bits’, “LG has achieved a meatball momentum and the competition right now is not geared up to challenge it.

It would require a very focused strategy to stop the company as things stand in the Indian market.” However, LG is not the king of all product segments. In audio products, where it has been trying to break into the stronghold of Philips and Sony, it is lagging far behind and is also following Samsung.

It is also behind Samsung in GSM handsets business, where it sees the next wave of growth in India. According to the company management, the target was to become No 1 handset brand in India combining both CDMA and GSM handset sales in 2004, which it claims to have achieved.

The next target is to emerge big in GSM handsets by 2006, starting with five-fold jump in volume sales in GSM handsets in 2005 when it hopes to achieve market leadership in non metros.

Next year, it would be taking the established players in the GSM segment head-on in the metros. It is creating the conditions with marketing and ad strategy starting this year itself.

The other category where the company is slowly creeping up is the IT business including the PC side of the market, where it is hoping to drive the abysmal penetration levels in the country. LG is targeting to grow by 74% to touch revenues of Rs 12450.000 Millions in 2005 from its IT business.

Times News Network dated 10/01/2005

LG’s Pune unit to be electronics export hub

AHMEDABAD: LG Electronics India Pvt Ltd (LGEIL), a wholly owned subsidiary of LG Electronics, South Korea, is planning to begin exports of home appliances to Mexico and Saudi Arabia from its manufacturing unit at Ranjangaon, Pune, by the first quarter of 2005.

“Their exports turnover from the Middle East and African countries has touched $80 million and they are planning to raise it to $200 million in the current year”, Mr Kwang-Ro Kim, managing director, LGEIL, told ET.

“Their Pune unit is now fully focused on the export market and for the domestic market, they will be sourcing products from their other manufacturing plants”, he said.

At present, the has only two self-owned manufacturing facilities, one each at Noida and Pune, while 19 other units operate on a partnership agreement.

“They are looking at proposals to set up manufacturing units in Kerala and Tamil Nadu as well,” said Mr Kim.

In order to cater to the domestic needs of home appliances, the company has set up a manufacturing unit at Bhuj in partnership with Genus Electrotec Ltd.

The unit is set to commence production by January end. The total investment for the Bhuj manufacturing unit is around Rs 600.000 Millions .

Initially, the unit will manufacture colour television with in-house assembly of PCB board, auto insertion and moulding facility. The present capacity of manufacturing colour television is 0.300 Millions units per annum with a scope of increasing it to 0.500 Millions units.

The company will also set up a production facility for assembly of washing machines with a capacity to produce 0.250 Millions units per annum. LG’s Pune unit to be electronics’ export hub.

PTI 05/01/2005

LG TARGETS Rs. 90000.000 Millions revenue in ‘ 05

NEW DELHI: LG Electronics has set itself the target of 40 per cent growth in turnover in 2005 to Rs 90000.000 Millions compared to Rs 65000.000 Millions recorded last year.

To achieve the target, LG Electronics India Ltd (LGEIL), the Indian subsidiary of Korean electronics major, is banking on the big potential of IT and telecom markets, especially in the handset segment.

Speaking about LG's business plans for the current year, K R Kim, managing director LGEIL and LG's president South West Asia said, "From January 15 they will start rolling out the economy models of their GSM mobile handsets. They expect the category to grow at 10 per cent in 2005."

LGEIL is also looking at exporting the lower end GSM handsets to the iddle-East and South Africa.

Kim was speaking at the launch of Digi Direct TV - LG's DTH ready flat TV. The company plans to target units of Digi Direct TV by the end of 2005.

"They have introduced Digi Direct TV in two models - 21 and 29 inches. They haven't firmed up the prices of these as yet but it should not be more than Rs 2,500 from the existing colour TVs in the same category," said C M Singh, Product Group Head of Consumer Electronics for LGEIL.

LG Digi Direct TV is India's first Direct-to-Home ready TV with built-in DTH decoder. The company has tied up with Doordarshan. The Digi Direct TV will be able to receive about 33 Free to Air (FTA) channels including 17 DD Channels and 12 Radio Channels including 2 FM channels.

The company is targeting 40 million non-cable and satellite households in semi-urban areas where the cable and satellite TV penetration is still at a nascent stage.

Economic Times 07/12/2004

LG ups India Sales Target

Banking on India's "large market", consumer electronics and home appliances major, LG Electronics, hopes to increase its total digital appliance sales revenues from the country to 10 per cent by 2007.

"They expect to increase their revenues from India to around 10 per cent by 2007 and will focus on selling premium segment products in that country," LG Electronics vice-president (Digital Appliance Overseas Sales and Marketing) Moon B Shin told reporters in Seoul.

The company's present revenue from India is around Rs 6,5000.000 Millions , which is over five per cent of its total global sales revenue, he said.

LG would sell high-end refrigerators, washing machines, microwave ovens and air-conditioners in the country, while it would also try to capture a high market share in the vacuum cleaner segment, he said.

Presently, the Korean consumer electronics major has a 25 per cent market share in appliances, 28 per cent in refrigerators, 42 per cent in microwave ovens and 40-48 per cent in air-conditioners, Shin said.

Even though the focus would be to market its premium products in India, LG would also roll out an array of products in various price ranges to cater to the diverse customer segment in the country, he said.

"India has a large market of their goods, and is only next to China in market size. However, they expect that in the next two decades, India would overtake China," Shin said.

The company's total exports from India, which was also added under the sales head, was around $100 million, Shin said.

LG Electronics would also increase its thrust on the emerging markets, including China, Russia and countries in southeast Asia, he said.

The company is also planning to increase its sales revenue from US to around $50 billion by 2007 from the present meagre revenues of $8.7 billion, he said.

"Their presence in the US is only around one per cent of the total market size and it is necessary that they increase it to a commendable position," Shin said.

Earlier, LG Electronics India (LGEIL), a wholly-owned subsidiary of the company, had announced investing $150 million for setting up manufacturing facilities in India.

PTI Dated November 25, 2004

LG forays into server segment

NEW DELHI: LG Electronics India on Thursday announced its foray in the country's server segment to fuel growth and achieve an over 68 per cent rise in IT segment turnover at Rs 7600.000 Millions in 2004.

"They plan to corner over 10 per cent of the Indian market this year itself and their entry level servers will fuel their pace," deputy general manager (product group head, IT products) R Maniknandan said unveiling servers for small and medium businesses (SMBs).

LG will eventually introduce the high-end servers.

The company has initially targetted the SMB segment since this area has still not inherited IT in its offices and is a prime segment to do business with.

On why these product offerings are for India alone, he said many other markets have already matured and "Indian consumers too will soon follow suit and witness a paradigm shift from assembled computers to the branded ones".

The two servers, available in Windows and Linux Operating systems, are priced between Rs 54,000 and Rs 0.140 Millions .

On the company's marketing strategy, he said LG would air joint promos for Intel AMD and Microsoft Linux and has a call centre in place to address the queries from across the country.

Times News Network dt. 07/10/2004

LG Projects $10-b sales by 2010, to invest Rs. 250.000 Millions

MUMBAI: LG India has been identified as a top-priority market for investments and the second-biggest export hub after China, catering to the Middle East and the African markets, company officials said today.

The visit of the chairman & CEO Bon Moo Koo and LGE vice chairman & CEO S S Kim signifies the effect of the Indian outfit’s phenomenal success in the consumer durables market, company officials said.

The brass of LG today inaugurated the South Korean major’s second consumer electronics and home appliances manufacturing facility at an investment of Rs 1500.000 Millions at Ranjangaon, Pune.

The plant will largely cater to the export requirement of the company. The company also announced plans to set up a mobile phone production facility in the country with an investment of Rs 60.000 Millions , which is expected commence production by 2005.

The mobile phone plant will produce 20 million units of which 50% will cater to the export market. LG chairman Bon Moo Koo said there will be fresh infusion of funds into LG India over the next six years (2005-10), of around Rs 250.000 Millions .

“Having attained leadership in India in consumer electronics and home appliances, they are now aiming at market leadership in the country in the GSM market,” Mr. S S Kim said. For now, LG has targeted a turnover of Rs 70000.000 Millions in 2004.

LG said in a Press release that the Indian operations were targeting revenues of $10 billion (Rs 460000.000 Millions ) by 2010, roughly nine times the company’s current revenues

Business Line : The Hindu Daily December 19, 2004

New Delhi, December 18, 2004

After having spent seven successful years as Managing Director of LG Electronics India, Mr. K. R. Kim has been elevated to the position of President, South West Asia, LG Electronics.

In this capacity, Mr. Kim will be responsible for overall functioning of all LG subsidiaries in South West Asia namely India, Nepal, Bangladesh and Sri Lanka. According to a company statement, Mr. Kim joins the league of top five people at LG Electronics globally.

LG Electronics India is a Rs. 65000.000 Millions company.

LGEIL to make laptops at Ranjangaon plant

PTI[ THURSDAY, SEPTEMBER 08, 2005 04:55:53 PM

MUMBAI: LG Electronics India Ltd (LGEIL) said it was planning to manufacture laptops at its proposed greenfield plant at Ranjangaon near Pune.

"They will look at manufacturing laptops at their upcoming facility at Ranjangaon after the anomalies on taxation on computer peripherals are solved," a senior LG official said here.

The manufacturing of laptops is also subject to the condition that the company first attains a sustainable market share in the local market, he said.

The excise duty on computer peripherals is about 16 per cent and reduction in it would bring down the manufacturing costs by 5-10 per cent, he said adding, LG would be the first company to manufacture laptops in the country.

"They hope that tax anomalies would be sorted out in the coming budget and once that is done they will look at laptop manufacturing at Ranjangaon", he said.

The company is also looking at newer markets for exports besides manufacturing its hi-definition television in India soon.

"They are looking at the African markets including countries like Zambia, South Africa and Uganda as India has a better access to Africa than China.

The company has the technology to manufacture hi-definition televisions and would also look at in the future, he added.

LGEIL is setting up a Rs 9000.000 Millions Ranjangaon plant to manufacture its products including DVD writers and has entered in a MoU with the Maharashtra government for it.

Pune , March 22

THE country's first GSM plant for making mobile handsets from the house of LG Electronics started operations in Ranjangaon near Pune on Tuesday.

LG Electronics India Ltd (LGEIL), the Indian subsidiary, is set to hit the domestic market with 1.2 million mobile handsets, Mr K.R. Kim, President, South West Asia LG Electronics and Managing Director of LGEIL, said here.

LG Electronics has a target turnover of Rs 9,0000.000 Millions for the current calendar year and is estimating at least 10 per cent (Rs 9000.000 Millions ) to come from the Indian operations.

Talking to presspersons, Mr Kim said the company is in the process of setting up another new facility, exclusive for producing GSM handsets and would be ready by August. He said it would hit the domestic market with CDMA mobile handsets by next year.

Mr Kim said LG Electronics was looking at production of two million CDMA handsets for the year 2006 and three million units by 2007. He said it was looking at SAARC, West Asia and the African countries for export of GSM handsets.

The company services Bangladesh, Nepal and Sri Lanka.

Mr Kim said the target was to export close to 0.500 Millions units for the current year and double it on a year-on-year basis. He said it would introduce all new technology in a phased manner.

Asked why the company was setting up a new facility for GSM handsets, Mr Kim said once the production line is ready, it is no longer necessary to go back to the Korean parent for any modification or requirement. He said it would be easier to produce handsets according to customer tastes and that the new facility would house 200 research personnel.

Currently, there are about 45 research personnel.

Mr Kim said the greenfield facility inaugurated in October 2004 has a capacity to manufacture colour televisions, air conditioners, refrigerators, washing machines, microwave ovens and colour monitors.

LGEIL has invested Rs 1500.000 Millions for the Ranjangaon facility, said Mr Kim. He said the company would begin commercial production of microwave here in a couple of days. Till now, the facility in England had catered to this.

The England facility was closed down due to high labour costs and since it was no longer a high value commodity unit in those markets. Mr Kim said the company was looking at a production of 0.120 Millions units for the current year and that the facility has a production capacity of 0.300 Millions units.

Mr Kim said LGEIL plans to bring in some of its production to the Ranjangaon facility from its Nodia plant. This facility will concentrate on export of IT products from the Ranjangaon facility. This will begin by the end of the current calendar year. He said exports are easier to handle from the Ranjangaon facility than from Noida.

He said the company expects a 15-per cent turnover for year 2005 from IT. This is expected to rise to 65 per cent by 2010.

New Delhi, 11 January, 2006: LG Electronics India Pvt. Limited (LGEIL), a Leading Consumer Electronic, Home Appliance, Mobile Handset and IT Company in India, has today unveiled two Premium state-of-the-art notebooks based on the latest Intel's Napa platform, developed in INDIA by Intel. These two LG Notebook models are LG P1 Express Dual and LG M1 Express Dual with 15.4 inch wide-screen and 15 inch TFT respectively.

LG has always been an innovator in providing technologically rich products to the market, be it LCD Monitors, Plasma Panels, Personal Computers, DVD Writers etc. This latest series from LG is also such a unique offering where the customers will get to experience the latest of the global trends in entertainment and performance.

These Notebooks from LG are a unique combination of design, performance, entertainment and security. These LG Express Dual-core processor based Notebooks are exquisitely designed to give the users the experience of handling a sleek, gorgeous and technologically rich notebooks.

In terms of performance, the new LG series of notebooks support DDR2 667MHz dual channel memory, comes with Dual-layer DVD Super Multi Drive and Combo drive as options, ensures faster connectivity with Dual Wireless Antenna 3945 (802.11b/g) and also has Faster Serial ATA HDD. These Notebooks weighing 2.6 to 2.8 kg, have Gigabit Ethernet, 5-in-1 Memory Card Reader.

Entertainment has also been given impetus and these LG Notebooks are bundled with 5.1 channel Dolby Digital, SRS , 24-bit HD Audio, 3-Port Analog Output, S-Video and many such amazing features on select models.

Taking into consideration the growing necessity of security, LG has ensured that the newly launched notebooks are equipped with enhanced security features such as TPM (Trusted Platform Module), Finger Print Reader and HDD security, also both these models are Bluetooth enabled.

The LG Express Dual Notebooks start at Rs. 89,990 onwards and are meant for the latest technology conscious customers.

According to Mr. R. Manikandan, General Manager, LG Electronics, Reinforcing their Technology Leadership, the launch of these new NAPA notebooks, are timed to market. They at LG believe with these new LG Express Dual Notebooks, customers will have a great combinational experience of design, performance, entertainment and security.. Both these laptops are uniquely positioned to target the small and medium businesses (SMBs), small enterprises and the consumer segment, which is growing at a phenomenal pace in India.

About LG Electronics India Ltd.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 in India. One of the most formidable brands in the consumer durable and home appliances segment, LGEIL has an impressive portfolio of Color Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators (Direct Cool and Frost Free), PCs, Vacuum Cleaners, Audio Systems, DVDs, PDPs, optical storage devices, Laptops and GSM mobile phones. In India for over eight years, LG has earned a premium brand positioning due to its superior quality, high product performance, revolutionary technological delivery and warm service. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation.

LGEIL has achieved a turnover of Rs 75000.000 Millions in 2005 and aims to be a USD 10 Billion company by 2010, with an investment of USD 250 million allocated over the next five years to the Indian market. LGEIL's first manufacturing unit at Greater Noida is one of the most eco-friendly units among all LG manufacturing plants in the world. The new and second Greenfield facility of LG Electronics India located at Ranjangaon, Pune has the capacity to manufacture GSM Mobile Phones. Color Televisions, Air Conditioners, Refrigerators, Washing Machines, Microwave Ovens and Color Monitors and is operational since October last year. LGEIL also plans to produce 20 million mobile handset units by 2010 at this new state-of-the-art facility – This is India's first mobile phone manufacturing unit.

Press Heading	:	LG inagurates exclusive IT and GSM Shoppe, Fone & Fun at Nehru Place in New Delhi on 13th March
Date of publish	:	22-MAR-2006
Press Description	:	Mr.SS Kim, Vice Chairman and CEO, LGE was here in India from 13-15 March to gauge the market potential of the IT and GSM industry in India
Press Description	:	LG Express Dual Notebooks are a true blend of design, performance, entertainment and security
Press Heading	:	LG Electronics Introduces the Mega Promotion Offer for the Festive Season
Date of publish	:	26-JAN-2005
Press Description	:	LG Electronics Introduces the Mega Promotion Offer for the Festive Season
Press Heading	:	LG Achieve Leadership in PC Monitors
Date of publish	:	26-OCT-2005
Press Description	:	LG Achieve Leadership in PC Monitors
Press Heading	:	LG Launches 2 new Microwave Oven
Date of publish	:	08-OCT-2005
Press Description	:	LG Launches 2 new Microwave Oven
Press Heading	:	LG Aims to sell 1 million microwaves by 2007
Date of publish	:	10-OCT-2005
Press Description	:	LG Aims to sell 1 million microwaves by 2007
Press Heading	:	LG Electronics Launches Premium Pcs, Notbooks
Date of publish	:	06-NOV-2005
Press Description	:	LG Electronics Launches Premium Pcs, Notbooks
Press Heading	:	LG India Plans Rs 900-cr investment
Date of publish	:	01-OCT-2005
Press Description	:	LG India Plans Rs 900-cr investment
Press Heading	:	LG Electronics crosses $100mm in exports
Date of publish	:	02-OCT-2005
Press Description	:	LG Electronics crosses $100mm in exports
Press Heading	:	LG Launches Promotion plan
Date of publish	:	30-SEP-2005
Press Description	:	LG Launches Promotion plan
Press Heading	:	LG Festival Offer From October 4
Date of publish	:	30-SEP-2005
Press Description	:	LG Festival Offer From October 4
Press Heading	:	LG raises export target for 2010 to $ 1 billion
Date of publish	:	02-OCT-2005
Press Description	:	LG raises export target for 2010 to $ 1 billion

LG Electronics India

They visited the new manufacturing plant   set up by LG Electronics India Pvt Ltd, the wholly owned subsidiary of South Korea-based consumer electronics and home appliances major at Ranjangaon, near Pune. They also spoke with the top brass at LG Electronics India, including K.R. Kim, Managing Director of LG Electronics India and President, South West Asia, LG Electronics.

Kim, and his team talked about the Ranjangaon plant, and its overall strategic plans for India. The company officially announced the commencement of GSM mobile phone handsets at the Ranjangaon plant, and said it was building another production line dedicated for GSM handsets in the same complex.

LG Electronics India Pvt. Ltd., the wholly owned subsidiary of South Korea-based consumer electronics giant, is betting big on India and is planning to make it an export hub for the markets in South Asia, Middle East and Africa. The Korean company has already become the leader in India's fiercely competitive consumer durable and home appliances market since it set foot here in January 1997. Later that year in May, LG announced its grand plans for India in a nation-wide launch, and went on to set up a state-of-the-art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs5bn. The facility manufactures Color Televisions (CTVs), Washing Machines, Air-Conditioners (ACs), Microwave Ovens, Refrigerators PCs and Monitors. In the short span of eight years, LG has achieved the position of a premium brand in the Indian market and is today the most preferred brand in the consumer durable and home appliance segments. In 2004, the company's turnover touched Rs65bn, the highest among any company in this segment in the country. The company has set a target of achieving a turnover of Rs90bn in 2005. LG wants its Indian unit to generate US$10bn in annual revenue by 2010. Around 30% of these revenue will come from exports.

New Manufacturing Plant:

Encouraged by this stupendous growth, LG Electronics India started building another manufacturing facility at Ranjangaon, some 50 km away from Pune in Maharashtra at an initial investment of Rs1.5bn (US$32mn). Spread over an area of 50 acres, the sprawling new facility is designed to manufacture CTVs, Refrigerators, ACs, Washing Machines, Microwave Ovens and Color Monitors. The plant commenced commercial production in June 2004, three months ahead of schedule. At present, it manufactures CTVs and Refrigerators besides assembling of a couple of GSM mobile handsets. The Ranjangaon facility is in line with LG's vision of making India the global export hub. The new plant, in addition to the Noida factory, will enable LG to expand its consumer reach and ensure better supply chain management that would translate into a faster response time. The company aims to pump in Rs5bn in the plant over the next five years. At present, it has a manpower strength of 2,000 people, and can go up to 5,000 by the year 2010. The new plant will contribute 10% of LG's total projected revenue of Rs90bn in 2005. It aims to double this every year and plans to increase it to 30% by the end of 2007.

Production Capacity:

CTVs – 0.500 Millions units per annum

ACs – 0.100 Millions units per annum

Refrigerators – 0.500 Millions units per annum

Washing Machines – 0.200 Millions units per annum

Microwave Ovens – 0.050 Millions units per annum

Mobile phone handsets – 1.000 Millions units per annum

Monitors – 0.100 Millions units

GSM Handset Facility:

Led by mobile phones, India's telecom market has grown by leaps and bounds over the past few years, and is likely to continue in the same vein in future as well. Despite this tremendous growth, the country's tele-density is still quite low at around 9%. Hence, it provides a lot of scope for future growth. As a result, after studying the market for many years, a number of companies, including Nokia, have announced plans to set up manufacturing facilities for making GSM mobile handsets.

However, LG Electronics India has gone a step ahead with the assembling of GSM handsets at the Ranjangaon facility. It is also building a dedicated facility for GSM handsets within the same complex. That facility is likely to begin commercial production of GSM handsets in August this year. LG will also start manufacturing CDMA handsets a year later. In 2005, the company plans to sell 2mn mobile phones. It aims to produce 20mn mobile handsets by 2010 from this facility. LG intends to export 50% of the production of the mobile handsets from this facility.

The contribution of mobile phones and IT products in LG's total revenue will touch 65% in 2010. Right now it is at 15%. The new GSM facility will help LG become the No.1 player in the mobile handsets market in India in the next three years. The GSM facility will involve an investment of US$60mn by the year 2010.

R&D Thrust:

LG aims to spend 2-3% of its total revenue on Research & Development (R&D) and hopes to establish India as an R&D hub for consumer electronics, home appliances and GSM handsets.

At the end of 2004 LG had around 70 people in R&D at Pune, including Hardware and Software. This will be scaled up to 350 by the end of 2007, and 550 by 2010.

At Noida, its R&D strength was 190 at the end of last year. This will be increased to 210 by the end of 2007, and further to 300 by the end of 2010.

At its Bangalore centre, the R&D strength was 420 by the end of 2004. This will go up to 900 by the end of 2007, and 1500 by the end of 2010.

By the end of 2010, LG will have 1,690 people doing R&D in Software and another 660 in Hardware, taking its total manpower strength in R&D to 2,350.

At the end of 2004, LG had spent US$23mn and US$20mn on its Software and Hardware centres in the country respectively. By the end of 2007, it will increase to US$67mn and US$43mn. By 2010, it will go up further to US$124mn and US$88mn.

Pricing Pressure:

The rising prices of key raw materials has hit consumer durables makers like LG really hard in the past few years. It continues to hurt the companies in this sector. The Budget has made things even tougher for these companies. Retail fuel prices are set to rise shortly due to the tweaked duty structure announced in the Budget and higher international prices. Prices of Resin and Plastics have gone up by 25%. Prices of steel, a key raw material in Refrigerators and Washing Machines - are also likely to increase next month. The impact on this front is likely to be 23%. The impact on Copper and Aluminium prices from the Budget is expected to be 24%. The overall impact on raw material costs will be anywhere between 5-20%. Prices haven't been changed since November 2004. But, with the steep rise in input costs due to various factors, including the Budget, LG will go in for a price hike of 5-10% across all categories from next month.

Market Share:

CTVs - LG has sold the highest ever number of CTVs in a month, and has set a landmark for the industry by selling over one million CTVs in a single calendar year. According to the recent retail audit conducted by ORG-GFK (Jan 2005), LG has consolidated its leadership position in CTVs with a market share of 26.7%.

Washing Machines - In the overall category, LG has emerged and established itself as the No.1 brand with a market share of 35.2%. In the Semi Automatic segment, it has attained a market share of 36.5% while in the Fully Automatic segment it makes up 34.5% of the total market.

Refrigerators - LG leads the market in refrigerators with a market share of 28.1%. Further in Frost Free LG has emerged as the undisputed leader with a market share of 35.4%.

ACs - The company currently enjoys a market share of 45% in the Room AC (Window and Split) segment.

Microwave Ovens - LG is the leader in this category with a market share of 41.4%.

IT Products - LG has already become No.1 in the Optical Storage Devices (OSD) segment and is fast emerging as the market leader in the monitor segment also. It has around 34% share in Monitors and 44% in OSD apart from 15% in Personal Computers (PCs).

Financial Results:

Division	2002		2003			2004
		% contribution		% contribution	% growth		% contribution	% growth
Consumer Electronics	14950.000	45	20490.000	46	37	28100.000	43	37
Home Appliances	15070.000	45	19960.000	44	32	27600.000	42	38
IT	3130.000	10	4480.000	10	43	7150.000	11	60
GSM *			70.000			2150.000	3	2971
Total	33150.000		45000.000		36	65000.000		56
* LG entered the mobile phone market in October 2003

Vision 2010:

LG Electronics India aims to become US$10bn (Rs450bn) company in India. Out of this, Consumer Electronics will account for US$2.5bn (Rs112.5bn); Home Appliances US$2.5bn (Rs12.5bn); IT US$1.5bn (Rs67.5bn) and Mobile Phones US$3.5bn (Rs157.5bn). Exports will constitute 30% of total revenue at US$3bn (Rs140bn).

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.02
UK Pound	1	Rs.85.56
Euro	1	Rs.57.24

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		56

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions