MIRA INFORM REPORT

 

 

Report No. :

344678

Report Date :

09.10.2015

 

IDENTIFICATION DETAILS

 

Name :

L G ELECTRONICS INDIA PRIVATE LIMITED

 

 

Registered Office :

A Wing, Third Floor, D-3, District Centre, Saket, New Delhi – 110017

Tel. No.:

91-120-2560960

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

20.01.1997

 

 

Com. Reg. No.:

55-220109

 

 

Capital Investment / Paid-up Capital :

Rs.1131.290 Million

 

 

CIN No.:

[Company Identification No.]

U32107DL1997PTC220109

 

 

IEC No.:

0596063211

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELL01185C

 

 

PAN No.:

[Permanent Account No.]

AAACL1745Q

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Televisions (FPD/LCD/LED, etc.), Air Conditioners, Refrigerators, Microwave Ovens, Washing Machines, Compressors, Vacuum Cleaners, Optical Disk Drive, Audio and Digital Video Display Systems, Monitors and GSM Mobiles.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of LG Electronics Inc., Korea.

 

It is a well-established and reputed company incorporated in the year 1997 having an excellent track record.

 

LG Electronics India Private Limited manufactures a range of consumer durables: panel televisions, refrigerators, washing machines, ACs, microwave ovens, mobile phones, personal computer monitors, water purifiers etc.

 

Financial position of the company is sound. Fundamentals of the companies are strong and healthy.

 

The rating also derives strength from its holding company and its experience management.

 

Further, the rating takes into consideration rich experience of its promoters, long established track record and strong operating efficiency of the company.

 

Trade relations are fair. Business is active. Payments are reported as regular and as per commitment.

 

In the view of established brand presence, the company can be considered good for normal for business dealings at usual trade terms and conditions.

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating = AA+

Rating Explanation

High degree of safety and carry very low credit risk.

Date

July 10, 2015

 

 

Rating Agency Name

CRISIL

Rating

Short term rating = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

July 10, 2015

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

 

INFORMATION DENIED

 

Management Non Co-operative (91-2138-661000 / 91-22-28352882)

 

 

LOCATIONS

 

Registered Office :

A Wing, Third Floor, D-3, District Centre, Saket, New Delhi – 110017, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

pradeep.panda@lge.com

Website :

http://www.in.lge.com

http://www.lgindia.com

http://www.lg.com/in

 

 

Head Office/ Factory 1 :

Plot No. 51, Udyog Vihar, Phase-II, Surajpur-Kasna Road, Greater Noida - 201306, Uttar Pradesh, India

Tel. No.:

91-120-2560960/ 2560940/ 2560900

Fax No.:

91-120-2560921

 

 

Factory 2 :

Plot No. A-05, MIDC Ranjangaon, Taluka Shirur, Pune – 412220, Maharashtra, India

 

 

Mumbai Showrooms :

v  4th Floor, A Wing, Trade Star, J B Nagar, Andheri Kurla Road, Andheri [East], Mumbai – 400059, Maharashtra, India

Tel. No.: 91-22-28352882

 

v  Manoshi Complex, Shop No 1, 2 and 3, Plot No 5 and 6, Sector 3, Opposite Ghansoli Railway Station, Ghansoli, Mumbai – 400701, Maharashtra, India

 

v  207/208, 2nd Floor, A Wing, 215 Atrium, Opposite Sangam Cinema, Andheri Kurla Road, Andheri [East], Mumbai – 400059, Maharashtra, India

Tel. No.: 91-22-67108001

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Soon Hwang Kwon

Designation :

Managing director

Address :

Flat No. 307, 3rd Floor, Jaypee Delcourt, Jaypee Greens, Greater Noida, Gautam Budh Nagar - 201306, Uttar Pradesh, India 

Date of Birth/Age :

13.10.1958

Qualification :

B.A.

Experience :

31 Years

Date of Appointment :

01.01.2011

DIN No.:

03389876

 

 

Name :

Mr. Soon Won Kwon

Designation :

Director

Address :

C 3/10, First Floor, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

14.01.1965

Qualification :

Bachelor of Business Administration

Experience :

19 Years

Date of Appointment :

21.12.2011

PAN No.:

CIRPK5031L

DIN No.:

05169036

 

 

Name :

Mr. Bo Kyung Sung

Designation :

Director

Address :

Hyatt Regency Pune, Residences Room No. 344, Weikfield IT Park, Nagar Road, Pune – 411014, Maharashtra, India

Date of Birth/Age :

21.02.1960

Qualification :

Electronics Engineer

Experience :

29 Years

Date of Appointment :

21.12.2011

PAN No.:

DYXPS7403D

DIN No.:

05169048

 

 

Name :

Mr. Un Tae Kim

Designation :

Director

Address :

S-51, 2nd Floor, Panchsheel Park, New Delhi – 110017, India

Date of Birth/Age :

23.12.1970

Date of Appointment :

13.08.2012

PAN No.:

CPQPK1398C

DIN No.:

06364228

 

 

Name :

Young Un Huh

Designation :

Director

Address :

Flat No. DC 1-301, Delcourt Jaypee Greens, Greater Noida – 201306, Uttar Pradesh, India

Date of Birth/Age :

05.02.1961

Date of Appointment :

08.01.2014

DIN No.:

06799149

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Pradeep Panda

Designation :

Secretary

Address :

H-4, Parsvnath Prestige, Plot No. 2, Sector 93A, Noida – 201306, Uttar Pradesh, India

Date of Birth/Age :

04.06.1964

Date of Appointment :

21.01.2002

PAN No.:

AKAPP8069J

 

 

Name :

Mr. Abhay Sood

Designation :

G.M. Accounting

 

 

Name :

Mr. Anil Kumar

Designation :

Senior G.M. Factory Head Noida Factory

 

 

Name :

Mr. Ashish Agrawal

Designation :

G.M. Finance and Taxation

 

 

Name :

Beom Seok Kang

Designation :

G.M. Improvement Team

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.09.2014

 

Names of Shareholders

 

No. of Shares

 

LG Electronics Inc., South Korea

 

113128726

Ashish Agrawal

 

1

Vipin Gupta

 

1

Umesh Dhal

 

1

Abhay Sood

 

1

Kishor Kumar Kaul

 

1

Vinod Kumar

 

1

 

 

 

Total

 

113128732

 

 

AS ON 30.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

99.99

Other top fifty shareholders

0.01

 

 

Total

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Televisions (FPD/LCD/LED, etc.), Air Conditioners, Refrigerators, Microwave Ovens, Washing Machines, Compressors, Vacuum Cleaners, Optical Disk Drive, Audio and Digital Video Display Systems, Monitors and GSM Mobiles.

 

 

Products :
  • Televisions (FPD/LCD/LED)
  • Air Conditioners
  • Refrigerators
  • Microwave Ovens
  • Washing Machines
  • Compressors
  • Vacuum Cleaners
  • Optical Disk Drive
  • Audio and Digital Video Display Systems
  • Monitors and GSM Mobiles

 

 

Brand Names :

“LG”

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Company Name :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark :

Not Divulged

 

 

Customers :

Company Name :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark :

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Banker Name :

State Bank of India

Branch :

CAG Branch, 11th Floor, Jawahar Vypar Bhawan, Tolstoy Marg, New Delhi – 110001, India

Person Name (With Designation) :

Not Divulged

Contact Number :

Not Divulged

Name of Account Holder :

Not Divulged

Account Number :

Not Divulged

Account Since (Date/Year of Account Opening) :

Not Divulged

Average Balance Maintained :

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan) :

Not Divulged

Account Operation :

Not Divulged

Remark :

Not Divulged

 

·         Shinhan Bank, 3rd Floor, D-6, South Extension-2, New Delhi - 110049, India

·         HSBC Bank Limited, 25 Birla House, Barakhamba Road, New Delhi - 110001, India

·         Deutsche Bank, ECE House, Ground Floor, 28 Kasturba Gandhi Marg, New Delhi - 11000, India

·         Citi Bank

·         Standard Chartered Bank

·         Bank of America

·         JP Morgan 

·         ICICI Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

Short Term Borrowings

 

 

Loans repayable on demand from banks

1079.000

544.000

 

 

 

Total

1079.000

544.000

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

7 Floor, Building 10, Tower B, DLF City Phase - II, Gurgaon - 122002, Haryana, India

PAN No.:

AABFD2095B

 

 

Memberships :

Not Divulged

 

 

Collaborators :

Not Divulged

 

 

Holding company :

LG Electronics Inc., Korea

 

 

Fellow Subsidiary company :

·         Hitachi-LG Data Storage Inc.

·         LG Alina Electronics

·         LG Chem Limited

·         LG Soft India Private Limited [U85110KA1998PTC023521]

·         LG CNS Inc.

·         LG CNS India Private Limited [U72900KA2004PTC034298]

·         LG Display Co., Limited

·         LG Electronics (China) Co., Limited

·         LG Electronics (Huizhou) Inc.

·         LG Electronics (Levant) - Jordan

·         LG Electronics (M) Sdn Bhd

·         LG Electronics (Thailand) Co., Limited

·         LG Electronics Africa Logistics Fze

·         LG Electronics Alabama, Inc.

·         LG Electronics Almaty Kazak Co., Limited

·         LG Electronics Argentina S.A.

·         LG Electronics Australia Pty., Limited

·         LG Electronics Benelux

·         LG Electronics Canada, Inc.

·         LG Electronics Colombia Ltda

·         LG Electronics Czech S.R.

·         LG Electronics Da Amazonia Ltda

·         LG Electronics Deutschland.Gmbh.

·         LG Electronics Dubai Fze

·         LG Electronics Espana S.A.

·         LG Electronics France S.A.S.

·         LG Electronics Gulf FZE

·         LG Electronics Hellas S.A

·         LG Electronics HK Co. Limited

·         LG Electronics Italia S.P.A.

·         LG Electronics Japan Inc.

·         LG Electronics Magyar Kft.

·         LG Electronics Mexico S.A.De C.V.

·         LG Electronics Middle East Co. Limited

·         LG Electronics Morocco S.A.R.C.

·         LG Electronics Morocco S.A.R.L.

·         LG Electronics Nanjing Display Co. Limited

·         LG Electronics Panama S.A.

·         LG Electronics Philippines Inc.

·         LG Electronics Polska Sp. Zo.o

·         LG Electronics Portugal

·         LG Electronics Romania S.

·         LG Electronics S.A.(Pty) Limited

·         LG Electronics Service Europe Netherlands B.V.

·         LG Elec (Shenyang) Inc.

·         LG Electronics Singapore Pte Limited

·         LG Electronics Taiwan Taipeu Co. Limited

·         LG Electronics Tian Jin Appliances Co., Limited

·         LG Electronics Ticaret A.S.

·         LG Electronics U.S.A. INC.

·         LG Electronics Ukraine

·         LG Electronics United Kingdom Limited

·         LG Electronics Vietnam Co. Limited

·         LG Hausys Limited

·         LG Innotek (Huizhou) Co., Limited

·         LG Innotek. Co. Limited

·         LG International (HK) Limited

·         LG International Corp.

·         LG International (S'Poer) Pte., Limited

·         LG Polymers India Private Limited [U25203AP1996PTC025917]

·         LG Electronics Egypt S.A.E

·         LG-Shaker Co. Limited

·         PT. LG Electronics Indonesia

·         PT.LG Innotek Indonesia

·         LG Electronics RUS, LLC

·         LG Electronics Inc. Chile Limited

·         LG Electronics European Shared Service Center B.V.

·         LG Electronics Brazil

·         Nanjung LG Panda Appliances Co., Limited

·         Nanjing LG-Toutru Color Display System Co., Limited

·         LG Electronics (Kunshan) Co., Limited

·         Shanghai LG Electronics Co., Limited

·         HI Logistics India Private Limited [U60220DL2012FTC235584]

·         HS Ad Inc.

·         LG Electronics De Sao Paulo Ltda, Brazil

·         LG Electronics Qinhuangdao Co., Limited

·         LG-Ericsson Co. Limited, (Formerly known as LG-Nortel Co. Limited)

·         LG Electronics USA, Inc – Mexicali

·         LG Innotek Yantai Co., Limited

·         Tai Zhou LG Electronics Refrigeration Co., Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

115000000

Equity Shares

Rs. 10/- each

Rs.1150.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

113128732

Equity Shares

Rs. 10/- each

Rs.1131.290 Million

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1131.290

1131.290

1131.290

(b) Reserves & Surplus

14515.710

18099.710

16530.000

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

15647.000

19231.000

17661.290

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

619.000

658.000

532.000

(d) long-term provisions

322.000

311.000

321.000

Total Non-current Liabilities (3)

941.000

969.000

853.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1079.000

544.000

0.000

(b) Trade payables

13566.000

12524.000

10235.000

(c) Other current liabilities

2069.000

1834.000

1835.710

(d) Short-term provisions

1145.000

1092.000

992.000

Total Current Liabilities (4)

17859.000

15994.000

13062.710

 

 

 

 

TOTAL

34447.000

36194.000

31577.000

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

6539.000

6354.000

6401.000

(ii) Intangible Assets

47.000

97.000

175.000

(iii) Capital work-in-progress

151.000

149.000

183.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

731.000

646.000

650.000

(d)  Long-term Loan and Advances

2095.000

2002.000

1776.000

(e) Other Non-current assets

3.000

0.000

4.000

Total Non-Current Assets

9566.000

9248.000

9189.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

14096.000

13441.000

10871.000

(c) Trade receivables

7156.000

5867.000

4490.000

(d) Cash and cash equivalents

1885.000

5906.000

4957.000

(e) Short-term loans and advances

1422.000

1120.000

973.000

(f) Other current assets

322.000

612.000

1097.000

Total Current Assets

24881.000

26946.000

22388.000

 

 

 

 

TOTAL

34447.000

36194.000

31577.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

TOTAL                                     (A)

115802.000

114678.000

114567.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

104436.000

105941.000

108255.000

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

11366.000

8737.000

6312.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

3.000

7.000

1.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

11363.000

8730.000

6311.000

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

2229.000

1981.000

1891.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

9134.000

6749.000

4420.000

 

 

 

 

 

Less

TAX                                                                  (H)

2791.000

1892.000

1289.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

6343.000

4857.000

3131.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

16543.000

15460.000

17902.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

634.000

487.000

314.000

 

 

Interim Dividend

8485.000

2828.000

4525.000

 

 

Tax on Dividend

1442.000

459.000

734.000

 

BALANCE CARRIED TO THE B/S

12325.000

16543.000

15460.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of Exports

6716.000

8313.000

11362.000

 

 

Other Earnings

62.000

138.000

386.000

 

TOTAL EARNINGS

6778.000

8451.000

11748.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

56.07

42.93

27.68

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Return on Total Assets

(PBT/Total Assets)

(%)

27.21

19.07

14.38

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.58

0.35

0.25

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.07

0.03

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.39

1.68

1.71

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Share Capital

1131.290

1131.290

1131.290

Reserves & Surplus

16530.000

18099.710

14515.710

Net worth

17661.290

19231.000

15647.000

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

544.000

1079.000

Total borrowings

0.000

544.000

1079.000

Debt/Equity ratio

0.000

0.028

0.069

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Sales

114567.000

114678.000

115802.000

 

 

0.097

0.980

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Million

Rs. In Million

Rs. In Million

Sales

114567.000

114678.000

115802.000

Profit

3131.000

4857.000

6343.000

 

2.73%

4.24%

5.48%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

Yes

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10409452

15/03/2014 *

1,200,000,000.00

Shinhan Bank

D-6, 3rd Floor, South Extension Part-II, New Delhi - 110049, India

C03811932

2

80032085

01/06/2009 *

1,125,000,000.00

Bank of America

1st Floor DLF Center, Sansad Marg, New Delhi - 110001, India

A63287486

3

80031197

06/07/2009 *

672,400,000.00

Deutsche Bank

ECE House, Ground Floor, 28 Kasturba Gandhi Marg, New Delhi - 110001, India

A66160052

4

80028108

30/05/2012 *

1,500,000,000.00

HSBC Bank Limited

25 Birla House, Barakhamba Road, New Delhi - 110001, India

B41562554

5

80013609

07/02/2013 *

1,250,000,000.00

Standard Chartered Bank

Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

B68954916

6

80034262

21/01/2005 *

1,750,000,000.00

ICICI Bank Limited

9a Phelps Bldg , Cannought Place, New Delhi - 110001, India

-

7

80031198

02/09/2013 *

150,000,000.00

State Bank of India

Cag Branch, 11th Floor , Jawahar Vypar Bhawan, Tolstoy Marg, New Delhi - 110001, India

B85525913

8

80031196

06/05/2008 *

1,600,000,000.00

Citi Bank

5th Floor , DLF Center, Parliament Street, New Delhi - 110001, India

A38447629

 

*Date of modification Charges

 

 

NOTE: The Registered Office of the Company has been shifted from Plot No. 51 Udyag Vihar, Surajpur Kasna Road, Greater Noida - 201306, Uttar Pradesh, India to the present office address w.e.f. 18.12.2013.

 

 

BACKGROUND INFORMATION

 

The Company was incorporated on January 20, 1997 to manufacture and trade in Televisions (FPD/LCD/LED, etc.), Air Conditioners, Refrigerators, Microwave Ovens, Washing Machines, Compressors, Vacuum Cleaners, Optical Disk Drive, Audio and Digital Video Display Systems, Monitors and GSM Mobiles. The manufacturing facilities of the Company are situated at Greater Noida in Uttar Pradesh and also in Ranjangaon near Pune in the State of Maharashtra. The Company is closely held with 113,128,726 shares held by LG Electronics Inc., South Korea and the balance 6 shares held by its nominees.

 

FINANCE

 

The Company’s Bank Loan Rating under BASEL II has been reaffirmed at AA+/Stable under Long Term and Highest Rating of A1+ under Short Term. During the year, the company has made lot of improvements in Financial Risk management and efficient working capital management, which will have long term impact .The Company continued to be maintain sufficient cash to meet strategic objectives. During the fiscal, internal cash flows have more than adequately covered working capital requirements, capital expenditure and dividend payments.

 

 

MANUFACTURING

 

During the year efforts has been made to improve the production capability. In Refrigerator segment sub assembly line was established to enhance ever cool Models production capacity. Initiative was taken to enhance quality and capacity management by in-housing the critical operation. In Washing Machine line production line was established in Top loading segment. In Compressor segment the Company improved its capability from Single platform line to multi-platform (BMG and CMA) line to cater multi models production at same time

 

 

PERFORMANCE REVIEW

 

In spite of volatile Indian Rupee against US Dollar, depressing situation in Industrial growth and decreasing GDP growth and other Macro Economy situation, the Company was able to consolidate its Market leadership in most of the Product segment. The Company registered marginal growth in sales and other income (INR 115800.000 Million), and 31% growth in Profit after Tax (INR 63.400 Million)

 

 

EXPORTS

 

During the year, Rupee depreciation has helped to boost the Export Sales and its competitiveness. Sales of Washing Machine and Refrigerator has been very encouraging during the year. Despite difficult and negative local and international environment the company has achieved export sales of INR 8220.000 Million as against a sales of INR 8600.000 Million in previous year


FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and equipment

·         Furniture and fixtures

·         Vehicles

·         Office equipment

·         Computer software

 

 

 

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 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.65.16

UK Pound

1

Rs.99.78

Euro

1

Rs.73.33

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NKT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILITY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

75

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

NB

NEW BUSINESS

 

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.