MIRA INFORM REPORT

Report Date :

04.07.2008

IDENTIFICATION DETAILS

Name :	LG ELECTRONICS INDIA PRIVATE LIMITED
Registered Office :	Plot No. 51, Udyog Vihar Surajpur Kasna Road, Greater Noida, Gautam Budh Nagar, Noida – 201 306, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.01.1997
Com. Reg. No.:	20-31138
CIN No.: [Company Identification No.]	U32107UP1997PTC031138
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 :	Manufacturer of Washing Machines, Refrigerators, Television Monitors, Mobile Phones, Air Conditioners and Computer Peripherals.

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 45000000
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, Udyog Vihar Surajpur Kasna Road, Greater Noida, Gautam Budh Nagar, Noida – 201 306, Uttar Pradesh, India
Tel. No.:	91-120-2560900 / 940 / 2560960
Fax No.:	91-120-2560918 / 2560921 / 2560926 / 2560198
E-Mail :	ppanda@igezbuy.com itlg@lgeil.com shwetabhatia@lgezbuy.com lgservice@lgindia.com ppanda@lgindia.com ppanda@lgbuy.com
Website:	http://www.lgezbuy.com http://www.lgindia.com
Area:	47 Acre
Location:	Industrial
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 / 2560198
E-Mail :	itlg@lgeil.com/askus@lgebuzy.com
Website :	http://www.lgezbuy.com / http://www.lgindia.com
Factory 2 :	B-243 Ground Floor, Okhla Industrial Area, Phase-1, New Delhi-110020, India
Tel. No.:	91-11-26371208
Factory 3 :	Plot No. A-5, MIDC Ranjangaon, Taluka Shirur, Pune-412220, Maharashtra, India
Factory 4 :	Sethurapet Village, Villianur Commune Panchayat, Pondicherry
Delhi Office:	B -243 Ground floor, Okhla Industrial Area, Phase – I, New Delhi – 110 020, India
Tel No.:	91-11-26371208
Branches :	Located At : v Ahmedabad v Bangalore v Bhubaneshwar v Kolkata v Chandigarh v Chennai v Cochin v Coimbatore v Ghaziabad v Bambolim, v Guwahati v Hyderabad v Hubli v Indore v Jaipur v Jammu and Kashmir. v Sonepat v Lukhnow v Patna v Mumbai v Pune v Katoratalab v Rachi

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 3. 14 Poorvi Marg, Vasant Vihar, New Delhi – 110 057, India
Date of Birth/Age :	02.11. 1946
Qualification :	Graduate
Date of Appointment :	01.01. 1999
Date of Ceasing:	07.01.2007
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, India
Date of Birth/Age :	17.08. 1961
Qualification:	B. Com
Date of Appointment :	07.06. 2004
Name :	Mr. Moon Bum Shin
Designation :	Director
Address :	1/21, 1^st Floor, Shanti Niketan, New Delhi, India
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, Uttar Pradesh, India
Date of Birth/Age :	01.06. 1966
Qualification:	B. Com, FCA
Date of Appointment :	21.01. 2002
Name :	Mr. Nam Cheol Yun
Designation :	Director
Address :	FF A 15/34, Vasant Vihar, New Delhi – 110057, India
Date of Birth/Age :	01.03.1960
Date of Appointment :	25.03.2006
Name :	Mr. Soon Seop Jung
Designation :	Director
Date of Birth/Age :	25.04.1961
Date of Appointment :	25.03.2006

KEY EXECUTIVES

Name :	Mr. Amit Gupta
Designation :	General Manager (Sales)
Name :	Mr. Jin Won Kang
Designation :	General Manger (R and 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 and MS)
Name :	Mr. N C Yun
Designation :	Vice President Finance
Name :	Mr. Pradeep Kumar Panda
Designation :	Senior General Manager (Accounts)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)		No. of Shares
LG Electronics INC		113128726
Mr. Ashok Kumar		1
Mr. Jaydeep Gupta		1
Mr. Yasho Vardhan Verma		1
Mr. Amit Gupta		1
Mr. Kishor Kumar Kaul		1
Mr. Pradeep Kumar Gupta		1
	Total	113128732
Category (as on 31.03.2007)		Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		100.00 %

BUSINESS DETAILS

Line of Business :	Manufacturer of Washing Machines, Refrigerators, Television Monitors, Mobile Phones, Air Conditioners and Computer Peripherals.
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
Exports :
Products:	Electronics Components – Colour TV, Refrigeration, GSM Phones and Raw materials
Countries :	South Africa, Middle East, Singapore, Hong Kong, New Zealand, Sri Lanka, Dubai and Maldives
Imports :
Products :	Electronic components and raw materials
Countries :	South Korea, Singapore, China, USA, Europe, Japan
Terms :
Selling :	Cash or other terms
Purchasing :	Credit (30-60 days), On Letter of Credit and Open Credit, Others and L/C terms.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Colour T.V.	Nos.	2200000
Refrigerators	Nos.	1800000
Washing Machines	Nos.	600000
Air Conditioners	Nos.	500000
Micro Oven	Nos.	425000
Colour Monitors	Nos.	800000
Desktop Pcs	Nos.	100000
Sub Assemblies Compressors	Nos.	850000
Others	Nos.	1300000
WLL Systems	Nos.	600000
Terminals	Nos.	300000

GENERAL INFORMATION

Suppliers :	LG Electronics, South Korea
No. of Employees :	Around 3000
Bankers :	v State Bank of India, Overseas Branch, 9^th Floor, Jawahar Vypar Bhawan, Tolostoy Marg, New Delhi – 110001, India v ICICI Bank Limited, 9A Phelps Building , Connought Place, New Delhi 110001, India v Citibank NA, DLF Centre, 5^th Floor, Parliament Street, New Delhi 110001, India v ING Vysya Bank Limited, G 35 Connaught Place, New Delhi – 110 001, India v The Bank of Nova Scotia, Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi – 110001, India v Standard Chartered Bank, Address 1:Credit Risk Control, H – 2, Connaught Circus, New Delhi – 110001, India Address 2:Narain Manzil, 23 Barakhmaba Road, New Delhi – 110 001, India v Punjab National Bank v HSBC v Deutsche Bank v HSBC Bank Limited v Bank of America v The Hong Kong and Shanghai Banking Corporation Limited Address: JMD Regent Square, DLF phase II, Gurgaon Mehrauli Road, Gurgaon, India
Banking Relations :	Good
Auditors :	· S. R. Batliboi and Associates Chartered Accountants B 26, Qutab Institutional Area, New Delhi – 110016, India · K. S. Mehta and Company Chartered Accountants New Delhi– 110016, India · S. S. Kothari and Company Chartered Accountants New Delhi– 110016, India · Deolitte Haskins and Sells Chartered Accountants 3^rd Floor, MCT House one Okhla Center, Block A, Okhla Institutional Area, New Delhi – 110 025, India
Holding Company:	· LG Electronics Almaty Kazak Company Limited · LG Electronics Antwerp Logistics NV · LG Electronics Australia Private limited · LG Electronics Canada Inc · LG Electronics Deutschland GBBH PT · LG Electronics Display Devices Indonesia · LG Electronics Egypt Cairo, SAE · LKG Electronics Gulf FZE · LG Electronics HK Limited, PT · LG Electronics Indonesia Limited · LG Electronics Japan Inc. · LG Electronics Middle east Company limited · LG Electronics Magyar Kft · LG Electronics (M) SDN , BHD · LG Electronics Polska Sp Zo O · LG Electronics Peru SA · LG Electronics Panama SA · LG Electronics SA Private Limited · LG Electronics De Sao Paulo Limited · LG Electronics United Kingdom, Limited · LG Electronics Ukraine Company Limited · LG Electronics Wales Limited
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– 110016, India v LG International Limited, New Delhi– 110016, India
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 Philippines Inc v LG Electronics Wales Limited v LG Electronics Display Devices Indonesia 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 v LG Electronics Morocco SARL v LG Electronics Huizhou Inc v LG Electronics Qinhuangdao Company Limited, Nanjing v LG Tontru Color Display Systems Company Limited v LG Electronics Tianjin Appliance Company limited v LG Electronics Colombia Limited, Nanjing v LG Panda Appliances Company Limited v LG Electronics Shenyang Inc v LG Electronics Vietnam Company Limited (formerly LG SEL Electronics Vietnam Inc) v LG Electronics Egypt SAE v LG Electronics Thailand Company Limited v LG Electronics Austria GMBH v LG Electronics Hellas SA, Langchao v LG Electronics Digital Mobile Communication Company Limited v LG Electronics Mobilecomm France v LG Electronics Mlawa SP Z OO v LG Electronics Italia SPA v LG Electronics Nordic AB v LH Electronics CZECH SRO v LG Electronics Romania SRL v LG Electronics European Holdings BV v LG Electronics Benelux v LG Electronics Company Limited v LG Electronics (Kunshan) Computer Company limited v LG Electronics (Nanjing) Plasma Company Limited v LG Electronics (Taizhou) Refrigeration Company Limited v LG Electronics Nature (Hangzhou) Recording Media Company Limited v LG Electronics Singapore PTE Limited v LG Alina Electronics v LG Electronics RUS – Marketing LLC v LG Electronics Alabama USA, Inc v LG Electronics USA v LG Electronics Mexicalli SADE, CV v LG Electronics Mexico SADE CV v LG Electronics Reynosa Inc , Arcelik v LG Klima Sanayi Ve ticaret AS v LG Electronics Nigeria Limited v LG Electronics Overseas Trading FZE v LG Electronics Da Amazonia Ltda v LG Electronics INC Chile LTDa v Hitachi LG Data Storage INC v LG Electronics North of England Limited v LG Innotek Company Limited v LG Electronics Argentina SA v LG Electronics Design Tech Limited v LG Electronics Service Europe Netherlands BV v LG Electronics Sweden AB, Triveni Digital Inc. Formerly LGERCA) v LG Yantai Information and Communication Technology Company Limited v LG MECA Electronics Haiphong Inc v LG Taistar Electronics Taiwan Company limited v LG Infocomm Thailand Inc v LG Innotek Company Limited v Goldstar Electronics Thailand Company Limited v Vietnam Korea Exchange Limited v LG Electronics European Shared Service Center BV, China Holding Company Shanghai v LG Electronics European Logistics and Services BV v LG Philip LCD Company Limited v LG IBM PC Company Limited v Hi plaza Inc v EIC Properties PTE Limited v LG Tops Electromagnetica Goldstar SRL v SLD Telecom PTE Limited v LG Holding (HK) Limited v STIC Ventures Company Limited v LG Goldstar France, SARL v LG Micron limited, v HItachi – LG Thailand Company limited

CAPITAL STRUCTURE

(As on 31.03.2007) :-

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		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		1131.287	1131.287	1131.287
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7694.837	6224.696	4508.399
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8826.124	7355.983	5639.686
LOAN FUNDS
1] Secured Loans		5551.402	6609.349	6375.652
2] Unsecured Loans		174.441	672.919	3179.245
TOTAL BORROWING		5725.843	7282.268	9554.897
DEFERRED TAX LIABILITIES		0.000	0.000	80.206
TOTAL		14551.967	14638.251	15274.789
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4095.590	4517.167	4599.883
Capital work-in-progress		167.641	160.511	351.540
Others		0.000	9.695	2.293
DEFERREX TAX ASSETS		485.516	165.626	32.387
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9357.338	8977.358	9709.360
	Sundry Debtors	5174.060	4863.389	4047.082
	Cash & Bank Balances	1818.141	1244.739	1000.790
	Other Current Assets	465.993	349.592	532.299
	Loans & Advances	2975.786	5448.327	3648.904
Total Current Assets		19791.318	20883.405	18938.435
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9338.772	7474.690	6373.371
	Provisions	649.326	3623.463	2276.378
Total Current Liabilities		9988.098	11098.153	8649.749
Net Current Assets		9803.220	9785.252	10288.686
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14551.967	14638.251	15274.789

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		67086.300	56925.800	50429.617
Other Income		0.000	0.000	0.000
Total Income		67086.300	56925.800	50429.617
Profit/(Loss) Before Tax		2175.100	2828.752	1662.896
Provision for Taxation		705.000	1112.455	588.795
Profit/(Loss) After Tax		1470.100	1716.297	1074.101
Export Value		8726.679	5619.995	4286.181
Import Value		28972.069	18538.056	18507.160
Expenditures :
	Financial Charges	1765.500	1884.448
	Depreciation	1135.900	1319.400	48766.721
	Other Expenditures	62009.800	50893.200
Total Expenditure		64911.200	54097.048	48766.721

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.19	3.02	2.12
Net Profit Margin (PBT/Sales)	(%)	3.24	4.97	3.29
Return on Total Assets (PBT/Total Assets}	(%)	5.99	6.67	7.06
Return on Investment (ROI) (PBT/Networth)		16.66	23.33	0.29
Debt Equity Ratio (Total Liability/Networth)		0.65	0.99	3.22
Current Ratio (Current Asset/Current Liability)		1.98	1.88	2.18

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 subject 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.

OTHER INFORMATION:

The Company is a 100% subsidiary of LG Electronics Inc. Korea. The company was incorporated on January 20, 1997 under the Indian Companies Act 1956 and Started manufacturing operations at its first Greenfield facility at Noida in the state of Uttar Pradesh in 1998 In the previous year., the subject company started its second Greenfield facility at Ranjangaon near Pune in the state of the Maharashtra.

The subject company manufacture / trades Television, air conditioners, Refrigerators, Micro wave Owens, Washing MAXCHNIES , Compressors, Vacuum Cleaner, optical Storage, Devices, Audio Systems, Monitors, personal Computer, Note book , GSM Mobiles and DVD Players.

The subject company had acquire had acquired LG electronics Systems India Limited (LGSYS) vide scheme of amalgamation approved by the honorable High court of Delhi w.e.f. April 1, 2002. Consequent to maintenance, repairs and servicing of CDMA networks and terminals.

The subject company has identified three reportable business segments as primary Segments:

· Digital Display and Media Division : Colour Television , PDP , Personal Computer, Monitor, CD – ROM, Audio Systems , DVD, MP3 Player, Optical Storage Device

· Digital appliances Division : Refrigerator , washing machine, Air Conditioner, Microwave Owen, Vacuum Cleaner and Compressor

· Telecommunication equipment and Handset division: CDMA Handset, WLL Handset, GSM handset, Wireless in Local systems and Terminals.

Quality Assessment

· ISO 9000 : 2000

· ISO 14001 : 1996

· OHSAS 18001 : 1999

FORM 8:-

Name of the company	LG ELECTRONICS INDIA PRIVATE LIMITED
Presented By	Mr. Pradeep Panda, Company Secretary
1) Date and description of instrument creating the change	Agreement for overdraft, cash, credit, loan against hypothecation of revolving stocks and other movables assets and also present and future book debts, dated 19.04.2004
2) Amount secured by the charge/amount owing on the securities of charge	Line of credit of Rs. 676.950 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	First charge by way of hypothecation of stock in Trade and book debts both present and future and of the company on a pari passu with other existing charge holders.
4) Gist of the terms and conditions and extent and operation of the charge.	The Line of credit of Rs. 676.950 millions can be availed as documentary credit foreign / Inland
5) Name and Address and description of the person entitled to the charge.	The Hong Kong and Shanghai Banking Corporation Limited Address: JMD Regent Square DLF phase II, Gurgaon Mehrauli Road, Gurgaon, India
6) Date and brief description of instrument modifying the charge	Dated 20.05.2005 Agreement for overdraft / cash credit loan against hypothecation of revolving stocks and other movables assets and also present and future book debts
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.	Line of credit has been increased from Rs. 1386.000 millions to Rs. 2042.175 millions.

Corporation identity number or foreign company registrations number of the company	U32107UP1997031138
Name of the company	LG ELECTRONICS INDIA PRIVATE LIMITED
Address	Plot No. 51 Uyog Vihar, Suraj Kasna Road, Greater Noida, Uttar Pradesh, India
This Form is for	Modification of charge
Type of Charges	Book debts Others
Particular of the charge holder	Deutsche Bank Address: ECE House, Ground Floor, 28 Kasturba Gandhi Marg, New Delhi – 110 001 Email: shrutee.wadhwa@db.com
Nature or description of the instrument creating charge	Deed of hypothecation of stocks and book debts
Date of the instrument creating charge	16.06.2007
Amount Secure by the charge	Rs. 1235.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest To be declined mutually from time to time Terms of repayment: to be decided mutually from time to time Margin: 30% Extent and operations of the Charges: Pari passu Charge Others: As per facility letter dated 10.05.2007
Shorts particulars of the Property charged	All stocks in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever and all present and future book debts
Particulars of the present modification	Banks first pari passu charge overall present and future stocks, book debts increased from Rs. 555.000 millions to Rs. 1235.000 millions All other terms and condition remaining the same.

TRADE REFERENCES:

· Victor Component Systems Private Limited

· Astron Polymers Private Limited

· Delta Cables and Automotive Systems

· ESS Kay Fabrication

· GSP Electronics Private Limited

· SRS Diecasting Private Limited

· Perfectpac Limited

· Sinanics Component Private Limited

· Securipax India Private Limited

· Khanna Traders And Engineering Private Limited

· Puromatic Filters Private Limited

· Unipack Packaging Private Limited

· Pr Packaging Private Limited

· Bhaskari Electrical Systems Private Limited

· Technova Tapes India Private Limited

· Ravlak Printing And Packaging Limited

· Amber Enterprises India Private Limited

· Stypack Polfoams Private Limited

· Dacs Electro Systems Private Limited

· Eltech Electronics And Telecommunication Limited

AS PER WEBSITE:

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 subject have streamlined the whole system by integrating the HR fundamentals with Information Technology and have adopted some practices unique to subject.

Subject 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 subject has the ability to hire the best in the industry.

Once these candidates are hired, they undergo and exhaustive induction programme for duration of 14 days under which the candidate is acquainted which each and every aspect of the organization. A thorough integration with HR and 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.

Subject 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 subject is benchmarked in terms of manpower costing.

Employees are given a chance to visit Korea on completion of years in subject. Apart from this subject 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 subject 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 subject’s CSR vision, nor is it in conflict with hard-headed business sense. It is purely an understanding on subject’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 subject 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 subject 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.

Subject 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.

Subject 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.

Subject’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.

Subject 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. Subject 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, subject 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

· Note Books

· Audios

· Vacuum Cleaners

LG Plasma Display Panels

Subject 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.

Subject 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 subject’s PDPs, the best made Plasma Panels ever.

LG Televisions

Slimagic

In the Indian household scenario where space is a major constraint, subject 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 subject’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 SUBJECT plans to launch 29” Flat X wave shortly.

LG Mobile Phones

Subject 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 and Play device and 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 and 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 and playback facility, 64 MB USB Disk which makes it a Plug and Play device and USB Charging. The handset has MMS, JAVA, GPRS, 262K Color Display, 1000 phone book memory, Tri-Band and comes with accessories like Data Cable and 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 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 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 and MP3 Player.

It is loaded with Polyphonic and MP3 Ring tones and 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 and 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 and Art Cool Mirror Split ACs - Promising to change the face of air-conditioning in India, subject’s has developed and launched the spectacular range of Art Cool ACs, the perfect fusion of State-of-the-art technology and 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 and 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 and X Power Fans - for faster and 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, Subject 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. SUBJECT 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 and 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 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 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 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 and 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 Rand D and 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 and 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 and 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 and 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 and 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 and 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 :-

LG India aims for top slot in Digital Audio Market

Category : Consumer Electronics

Date : 11-MAY-07

Bangalore, 8th May, 2007: The country’s leading consumer electronics company, LG India today announced it’s foray into the MP3 player and car audio segment. The company has also launched its enticing new “touché “ range of high-end Home Theatres, Lifestyle Audio systems , MP3 players, and high definition DVD that have special features such as a high-gloss piano black bodyline, a sleek touch pad and red lighting that add luxury and sophistication. The bio-indicate lighting in the touch pads allows users to "communicate" with the product, which reacts to user movement in its touch sensor area.

In continuation with its pioneering efforts towards bringing the latest technology to the country, the company also showcased the world's first Dual-format High-Definition Disc Player at the occasion.

Speaking at the launch, Mr. Moon B Shin, MD, LGEIL said, “Our research shows that world over product aesthetics is playing a major role in consumer buying decision. We are extremely pleased to take the aesthetic appeal of products to the next level through our “Touché” series, a first in India. Like all LG products, these new launches will also be a combination of performance, technology and looks and we are confident of capturing unanimous interest of our target audience which is style conscious, upmarket and very sophisticated.”

Post this launch, LG’s product portfolio shall encompass not only the best in home entertainment but also in mobile and in-car entertainment. While the MP3 and MP4 players are priced from Rs. 0.003 millions to Rs.0.012 millions , the car audios will be available at a price range of Rs. 0.005- 0.060 millions

Added an elated Mr. M B Shin , “Audio Video is a focus category for LG, and we will be spending close to Rs. 50.000 millions in the second quarter of the current year for marketing these products and aggressively targeting the huge consumer base. We are confident of achieving a turnover of Rs 4500.000 millions in the Digital Audio Video segment by year end. This translates into a 70% value growth in the segment for LG even though the industry itself is growing at the rate lower than 10%. We are already the top brand in video segment and are aiming to achieve the numero uno status in digital audios segment by year end 2007.”

LGEIL commences LCD Television manufacturing at Pune Plant

Category : Corporate

Date : 05-APR-07

New Delhi, April 05, 2007: Leading Consumer Electronics and Home Appliance Brand, LG Electronics India today announced the commencement of LCD Television manufacturing at it’s Ranjangaon facility in Pune. With an initial investment of US $ 0.5M, LG has begun manufacturing 32” Liquid Crystal Display Televisions at this facility.

The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of the domestic markets . LG plans to upscale its operations to a figure of 2.5 lakh units a year in the near future. The Pune plant in addition to its current manufacturing facility at Greater Noida will enable the company to enhance its consumer reach and reiterate it’s commitment towards providing superior technology products to the India consumer.

According Mr. Moon B. Shin, Managing Director, LGEIL said, "This investment is in synergy with our vision and focus of expanding into premium products. The optimism that the Indian consumer has shown towards premium products has encouraged LG to invest into expansion of manufacturing facility at the Pune plant and enter the LCD TV manufacturing. It will give us an edge over other players in terms of production and subsequent market share."

Currently the facility manufactures Refrigerators, Color Televisions, airconditioners, Washing machines, Microwave ovens, monitors, GSM phones and Optical disk drives and caters to domestic as well as export markets.

LGEIL to make laptops at Ranjangaon plant

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

MUMBAI: LG Electronics India Limited (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 Limited (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 90000.000 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 Million 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.

About LG Electronics India Limited

LG Electronics India Private Limited, 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 and 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 Private Limited, 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 Private Limited, 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 Rs. 5bn 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 and D Thrust:

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

At the end of 2004 LG had around 70 people in R and 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 RandD 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 and 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 and D in Software and another 660 in Hardware, taking its total manpower strength in R and 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).

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.43.30
UK Pound	1	Rs.86.13
Euro	1	Rs.68.72

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 EXPLANATIONS

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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