| Description of state of companies affair
INR IN MILLION
|
Year ended
March 31, 2023 | |
Year ended
March 31, 2022 |
Profit & Loss |
| |
|
Total Income |
201,122 | |
171,713 |
Profit before interest and depreciation |
21,391 | |
18,736 |
Finance cost |
226 | |
225 |
Depreciation and amortization expense |
3004 | |
2,613 |
Profit before taxes |
18161 | |
15,898 |
Tax expense |
4712 | |
4,151 |
Profit after taxes |
13,449 | |
11,747 |
Other comprehensive income (Net of tax) |
-6 | |
21 |
Total comprehensive income for the year |
13,443 | |
11,768 |
Changes in Equity |
| |
|
Balance brought forward from the
previous years | |
51,688 |
62,546 |
Add : Total comprehensive income for the year | |
13,443 |
11,768 |
Less Interim Dividend paid | |
24,888 |
22,626 |
Closing Balance | |
40,243 |
51,688 |
Details regarding energy conservation
A) Conservation of energy
The steps taken or impact on conservation of energy;
· Old ON/OFF Type Multi V AC’s replaced with Inverter AC’s in Ref Comp Motor Line.
· Old Chillers replaced with Energy Efficient Inverter Screw Chillers : 2 No’s
· Office Area AC’s Auto Off after Office Hours to avoid Energy Loss due to Idle Running.
· Compressed Air Leakage Identification through Sonic Camera & Arresting.
· Boiler & Hot Water Generator Efficiency control to reduce Natural Gas Consumption by improving combustion Efficiency.
· Power Factor maintaining at 0.99~1.0 level at source end.
· Old LED Lights replacement with Energy Efficient LED Lights at Shop Floor & Office Area
· Office Area Lights & Air-conditioning units off during Lunch & Night Time
· UPS capacity Analysis & Optimization (23à16 No’s) : ON & NO Load Losses Reduction & Inverter AC’s Installation
· Fuel Reduction – Separation & Automation of R1 & R2 Hot Water Pipeline(10%?)
· Gangway Lights ON-OFF based on motion sensor (Canteen Area, Bridge Area)
(ii) The steps taken by the company for utilizing alternate sources of energy;
Total 3533 kwp Solar Power plant installed at Factory building’s roof top to promote Green energy usage & to reduce carbon foot prints.
Solar Modules Cleaning Frequency increased from 1 à 2 Times/Month to enhance Solar Generation.
Scheduled maintenance of DCDB/ACDB along with string monitoring is being done to avoid any solar generation loss due to breakdown.
In LGEIL Pune case, Alternate Renewable Energy source is not available.
(iii)The capital investment on energy conservation equipment’s
· In LGEIL Noida case, the total amount invested for Energy Efficient Chillers, Air conditioning units, Auto Closing Timer System, LED lights & other equipment’s are INR 1.21 Cr.
· In LGEL Pune case The total amount invested for Energy Efficient Equipment’s
· Air Compressor (1 No’s) – INR 45.6 Lacs
· New Air Conditioner (31 No’s) – INR 25.4 Lacs
Details regarding technology absorption
Technology absorption-
(i)The efforts made towards technology absorption;
TELEVISION:
Ø Launch for Lifestyle Segment Product (48”/55” Pose TV)
Ø Strengthen Premium Segment thru QNED Line-up Expansion
Ø Line-up of Touch-Signage for Education / Corporate Sector
(65/75” Interactive Digital Board).
Ø Introduction of 32” Premium Line-up
Ø Improved Customer Experience thru WebOS23
AI concierge for faster search/Addition and enhance multi-view function.
Ø Applied Energy Regulation to 4K Category w.e.f. 1st July 2023.
REFRIGERATOR
Ø Following Make in India movement, Developed New high end & Smart Side by Side (655~635L) Refrigerators with improved Air flow to perform better under Indian ambient conditions.
Ø Introduction of new InstaView Door in Door concept to enhance see inside the refrigerator without opening door, to reduce energy consumption.
Ø Introduction of enhanced home assistant, LG thinQ with AI smart learner.
Ø Development of Convertible Side by Side ref category.
Ø Double Door refrigerators, cycle design enhanced to maintain energy rating as per revised Y’23 BEE Energy standard. (Strengthened by 10%)
Ø 5-Star & Super 5-Star BEE ( 6 star equivalent) category direct cool ref models launched in 205L, 225L category with high-efficiency refrigeration cycle design.
Ø Development and implementation of High Energy Efficiency Ratio Inverter Compressor (BMK Series) to improvement the Energy Consumption of refrigerators
Ø All Models launched as per 2023 energy Norms DC/FF
ROOM AIR CONDITIONER
Ø Anti-Virus Pre Filters, Plasmaster Ionizer & UV Sterilization Feature Models development in Room Air conditioners Line up.
Ø New Launch Ionizer Feature Antivirus protection USP which eliminates 99.9% of harmful bacteria
Ø Voice control Smart ThinQ technology with Alexa and Google Assistant compatibility
Ø Introducing VIRAAT mode for increasing the fan speed up to maximum to beat the heat
Ø 6 in 1 (100%, 80%, 60%, 40% & AI (in all Variant models with 4 way swing feature) and 1 Mode Hyper Capacity 110%) with AI PLUS (In all Wi-Fi Category models)
SYSTEM AIR CONDITIONER
Ø Multi Home Inverter Series with R32 Refrigerant Developed for 2 Room and 3 Room applications. The Part load efficiency for the Models is equivalent to 5 star energy level which can extremely beneficial to residential customers on actual usage pattern base. Model capacities 2Tr ; 2.7Tr ; 3Tr ; 4Tr
WASHING MACHINE
.
Ø Launch of AIDD (Artificial Intelligence Direct Drive) New Technology in Front loading washing machine.
Ø Introduction of Turbo wash 360 Feature to improve washing performance in Front loading washing machine.
Ø Introduction of Washer + Dryer models in FLWM models.
Ø Launch of New Top loader VB-T Look with HEDD, Heater, Jet spray USP
Ø Launch of Auto Tub Clean Jet Spray USP in Top loader Models
MICROWAVE OVEN
Ø Lamp to LED Application for 28L & 32L Convection models.
Ø Healthy HeartTM recipes expansion for 28L Convection model (certified by Health Care Foundation).
Ø Healthy HeartTM USP expansion in 28L Neo Chef & 28L Convection (certified by Health Care Foundation).
Ø Wi-Fi Scan to Cook series launch in 28L & 32L range.
WATER PURIFIER:
Ø ISI Certification for Complete Line up of Models.
(ii) The benefits derived like product improvement, cost reduction, product development or import substitution;
Television:
Ø In-house Module Assly for 55” Slim Edge to improve Localization and Material Cost.
Ø Apply Molding Localization for OLED Volume Line-up (55/65C2 , Oct’23)
Ø Part Spec Optimize to improve the material cost (OLED : Cover Bottom)
Refrigerator:
Ø Shelf glass localization for 1, 2 door & SBS refrigerator to Meet BIS standard requirement.
Ø Low Cost & Higher EER MB Series Comp Development to Meet the Refrigerator Market Requirement for cost competitiveness
Ø Case inner 2 cavity mould development for VI & In-house Capa ?
Ø Structure Optimization in VT
Ø Connector communization in VT & Omega Models
Room Air-conditioning:
Ø New `Y23 BEE star Rating Table Incorporated as per Government direction.
Ø Compressor localization LG (Thailand / China) à LG India Local Production facility.
Ø Cooling only model development for Sri Lanka (Export model)
Ø R32 sticker removed and engraved on cabinet/Side R
Ø SK indoor cover tubing replaced with insulator
Washing Machine:
Ø Front Loading WM M/c’s Balance weight Localization (ChinaàLocal)
Ø Carton Box GSM reduction for FLWM.
Ø Front loading WM M/c’s Bracket base localization (ChinaàLocal)
Ø Optimize the Hanger Thickness.
Ø Belt Localization form China to Local supplier in 21” Sapience & Spirit Tool
Ø Suspension Localization from Korea to local in V+ Tool.
Ø Application of ABS 700 ? DP-24 Resin for Aesthetic Parts.
Ø Capacity Enhancement in 21” Sapience/Armstrong/V+ Tool
Microwave Oven:
Ø HVT Core size & Wire diameter optimization for Silicon steel weight optimization.
Ø Power PCB Assy. Localization.
Ø Shelf wire diameter/structure optimization for cost reduction.
Ø SS Material: Front plate Scrap utilization for Internal part Development.
System Air-Conditioner
Ø New Category 1 Way Cassette R32 line up Localized.
Ø New category Multi I Home Inverter for space saving, Installation simplicity with Indoor unit options of Hiwall & 1 Way CST and Improved Part load efficiency with similar investment cost compared to 1 Indoor 1 Outdoor combination models.
(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year);
The details of Technology Imported |
Year of Import |
Whether the technology been fully absorbed |
If not fully absorbed, areas where absorption has not taken place, and the reasons thereof |
Energy improvement through High Energy Efficient Linear Compressor, grooved tube evaporators and microchannel condensers in 4-Star BEE energy category model |
2019~2020 |
Yes |
--- |
5-Star BEE category models launched in 190L category with high-efficiency inverter compressor |
2019~2020 |
Yes |
--- |
Ocean Black II Fins Condenser application in all RAC models |
2019~2020 |
Yes |
--- |
Wi-Fi, 4-in-1 Convertible: 4 Step energy control. Works at 100%, 80%, 60% and 40% load condition that maximizes energy savings in RAC |
2019~2020 |
Yes |
--- |
RAC lineup expansion to heat pump models with R32 refrigerant gas |
2019~2020 |
Yes |
--- |
Inverter motor lineup extended to models = 9.0kg and CK models of WM |
2019~2020 |
Yes |
--- |
AIDD feature to provide better wash quality and Customer friendly |
2019~2020 |
Yes |
--- |
Integrated glass touch door design for 32L |
2019~2020 |
Yes |
--- |
Healthy HeartTM recipes development, for 28L and 32L Convection model |
2019~2020 |
Yes |
--- |
32L Neo Chef new export model development for Sri Lanka |
2019~2020 |
Yes |
--- |
32L Premium Integrated Neo Chef new door development |
2019~2020 |
Yes |
--- |
Healthy Heart USP introduction in 28L Conv |
2019~2020 |
Yes |
--- |
Premium integrated glass touch door design for 28L convection (charcoal) |
2019~2020 |
Yes |
--- |
Introduced First 8K models : NANO99 (TV) |
2019~2020 |
Yes |
--- |
SMT PCBA Production for Air Conditioners |
2020~2021 |
Yes |
--- |
R Scroll Compressor for SCAC R32 Cassette Model |
2020~2021 |
Yes |
--- |
Inverter Compressor for Multi V 5th Generation Outdoor |
2020~2021 |
Yes |
--- |
UV Sterilization Kit for Room Air Conditioners |
2020~2021 |
Yes |
--- |
Reverse Osmosis water purifier models with above 60% water recovery |
2020~2021 |
Yes |
--- |
Composite filter design improvement for field issue solution in high turbidity regions |
2020~2021 |
Yes |
--- |
Healthy HeartTM recipes development, for 32L Convection model |
2020~2021 |
Yes |
--- |
32L Premium Integrated Neo Chef new door development |
2020~2021 |
Yes |
--- |
AIDD feature to provide better wash quality and Customer friendly. |
2020~2021 |
Yes |
--- |
Smart Filter with improvised design Introduction in Twin Tub High Capacity Domestic Models. |
2020~2021 |
Yes |
--- |
Top Loading and Front Loading New Models developed with best in class lowest Energy & Water consumption algorithm |
2020~2021 |
Yes |
--- |
Complete Changeover from Linear to Inverter Comp. Models of 3 star BEE Category on all 3 platforms of Double Door Refrigerators. |
2020~2021 |
Yes |
--- |
Refrigerant flow control technology implement (Energy Valve Application) |
2020~2021 |
Yes |
--- |
High Energy Efficient BMK series Compressors implementation |
2020~2021 |
Yes |
--- |
Added New SKU for Gallery Design Line-up (55G1) Line-up for Entry Segment OLED (48/55/65A1) - TV |
2020~2021 |
Yes |
--- |
New USP development :
AI Home/Sports Alert/Magic Tap/Ultimate Gameplay |
2020~2021 |
Yes |
--- |
4K Cinema Line-up (Injection/Press Tool Localization) |
2020~2021 |
Yes |
--- |
In-house Module Assly for OLED 48” / 4K 65” : |
2020~2021 |
Yes |
--- |
India Insight Line-up for Nano-cell : High Brightness SKU (55/65NANO83) |
2020~2021 |
Yes |
--- |
Maximized Online Account Exclusive Line-up (NANO73 Series) for Customer Price Competitiveness. |
2020~2021 |
Yes |
--- |
42” Entry Segment OLED Line-up |
2021~2022 |
Yes |
--- |
In-house Module Assly for 42” OLED 70/75” UHD |
2021~2022 |
Yes |
--- |
Introduction of QNED Line-up |
2021~2022 |
Yes |
--- |
Details regarding foreign exchange earnings and outgo
During the Year under review Foreign Exchange earnings by way of Export was INR 9929 Million. The Foreign Exchange outflow for Import of Goods & payment for services were INR 83982Million & the Outflow on account of Royalty wasINR2671 Million
Disclosures in director’s responsibility statement
Pursuant to the provision of section 134(3) (c) & (5) of the Companies Act 2013 the Directors confirm that:
• In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
• The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
• The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
• The directors had prepared the annual accounts on a going concern basis;
• The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
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