Accounting Policies of Linaks Micro Electronics Ltd. Company

Mar 31, 2014

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In Cases of Assets borrowed against foreign currency loan, any change, due to Exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

No depreciation is provided during the period of six month (from 01.10.13 to31.3.14) since machine were not put to use. Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Company''s contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. However, during the year no payment is made to LIC under the group gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material, stores and spares are valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable is shown in the Books of Account. Purchases, Sales, Raw material Stock and Work in Progress are inclusive of excise duty. Excise duty on finished goods stock is not provided, since it belongs to goods manufactured for Hindustan Aeronautics Ltd., which has got exemption from Excise.

g. FOREIGN EXCHANGE TRANSACTIONS:

There is no foreign transactions during the year.

There are No Transactions in Foreign Currency During the year .

h. SALES:

i. Sales include Excise Duty Wherever applicable.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company has been ''Sick Industrial Company'' within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985; hence no provision for Deferred Tax Liability was made. However, it will be made as and when accrue.

k. Segment Information:

The Company is manufacturing Printed Circuit Boards, presently Multilayer (upto 8 layers) and Double Sided Printed Through Holes (DSPTH) making sales within India and in the international market. It has plan for manufacturing Multi Layers Boards (MLB''s) upto 24 layers and also flexi-rigid Multilayer.

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Mar 31, 2012

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act' 1956.

b. FIXED ASSETS

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In Cases of Assets borrowed against foreign currency loan' any change' due to Exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act' 1956.

d. RETIREMENT BENEFITS:

The Company's contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity' contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. However' during the year no payment is made to LIC under the group gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material' stores and spares are valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable is shown in the Books of Account. Purchases. Sales' Raw material Stock and Work in Progress are inclusive of excise duty. Excise duty on finished goods stock is not provided' since it belongs to goods manufactured for Hindustan Aeronautics Ltd.' which has got exemption from Excise.

g. FOREIGN EXCHANGE TRANSACTIONS: There is no foreign transactions during the year.

There are No Transactions in Foreign Currency During the year. h. SALES:

i. Sales include Excise Duty Wherever applicable.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company is a 'Sick Industrial Company' within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies

(Special Provisions) Act' 1985; hence no provision for Deferred Tax Liability is made.

k. Segment Information:

The Company is manufacturing Printed Circuit Boards' presently Multilayer (upto 8 layers) and Double Sided Printed Through Holes (DSPTH) making sales within India and in the international market. It has plan for manufacturing Multi Layers Boards (MLB's) upto 24 layers and also flexi.rigid Multilayer.

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Mar 31, 2010

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS.

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In Cases of Assets borrowed against foreign currency loan, any change, due to Exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. However, during the year no payment is made to LIC under the group gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material is valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable is shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. FOREIGN EXCHANGE TRANSACTIONS:

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year-end rate from current year. Previous transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year. Gains/losses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h. SALES:

i. Sales include Excise Duty.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company is a Sick Industrial Company within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985; hence no provision for Deferred Tax Liability is made.

k. Segment Information:

The Company is manufacturing Printed Circuit Boards, presently Multilayer (upto 8 layers) and Double Sided Printed Through Holes (DSPTH) making sales within India and in the international market. It has plan for manufacturing Multi Layers Boards (MLBs) upto 24 layers and also flexi-rigid Multilayer. I. Related Party Disclosure

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Mar 31, 2009

A. BASIS OF ACCOUNTING:

The Financial Statements arc prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In Cases of Assets borrowed against foreign currency loan, any change, due to Exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. However, during the year no payment is made to LIC under the group gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due. t. INVENTORIES:

i. Raw Material is valued at landed cost

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iit. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable is shown in the Books of Account. No adjustment of Modvaton raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. FOREIGN EXCHANGE TRANSACTIONS:

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year-end rate from current year. Previous transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remrttancefrealisation of the account during the year. Gains/tosses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h. SALES:

i. Sales include Excise Duty.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

j. TAXATION:

The Company is a Sick Industrial Company within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985; hence no provision for Deferred Tax Liability is made.

k. Segment Information:

The Company is manufacturing Printed Circuit Boards, presently Multilayer (upto 8 layers) and Double Sided Printed Through Holes (DSPTH) making sales within India and in the international market. It has plan for manufacturing Multi Layers Boards (MLBs) upto 24 layers and also flexi- rigid Multi layer.

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Mar 31, 2004

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In cases of Assets purchased against foreign currency loan, any change, due to exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material is valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are-valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable are shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. FOREIGN EXCHANGE TRANSACTIONS:

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year- end rate from current year. Previous transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year. Gains/losses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h. SALES:

i. Sales include Excise Duty.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company is a Sick Industrial Company within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, hence no provision for Deferred Tax Liability is made.

k. Segment Information:

The Company is manufacturing Printed Circuit Boards, presently Multilayer (upto 8 layers) and Double Sided Printed Through Holes (DSPTH) making sales within India.and in the international market. It has plan for manufacturing Multi Layers Boards (MLBs) upto 24 layers and also flexi-rigid Multilayer.

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Mar 31, 2003

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In cases of Assets borrowed against foreign currency loan, any change, due to exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material is valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA and excise duty payable are shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. FOREIGN EXCHANGE TRANSACTIONS:

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year-end rate from current year. Previous transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year. Gains/losses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h. SALES:

i. Sales include Excise Duty plus Export Incentives on it.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company is a Sick Industrial Company within the meaning of clause (o) of section 3(1) of the Sick Industrial Companies (Special Provisions ) Act, 1985. No provision for Deferred Tax Liability has been made in view of huge carried forward losses.

k. Segment Information:

The Company is manufacturing only Printed Circuit Boards and making sales within India and overseas.

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Mar 31, 2002

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In cases of Assets borrowed against foreign currency loan, any change, due to exchange rate has been correspondingly adjusted in the cost of assets.

c. DEPRECIATION:

Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. RETIREMENT BENEFITS:

The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e. INVENTORIES:

i. Raw Material is valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable. iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. EXCISE DUTY:

Excise duty deposited in PLA is shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. FOREIGN EXCHANGE TRANSACTIONS:

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year-end rate from current year. Previous transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year. Gains/losses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h. SALES:

i. Sales include Excise Duty plus Export Incentives on it.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

i. TAXATION:

The Company is a Sick Industrial Company within the meaning of clause (o) of section 3(1) of The Sick Industrial Companies (Special Provisions) Act, 1985. No provision for deferred tax liability has been made in view of the huge carried forward losses.

k. Segment Information:

The company is manufacturing only Printed Circuit Boards of different types namely Single Sided, Double Sided Printed through Holes (DSPTH) and Multilayer Boards (MLB). Presently the MLB sales component is very negligible of the total sales made by the Company within India. Hence there is only one segment of PCBs selling within India.

l. Related Party Disclosure

1. Party where control exists:

Linaks Pressings, Raebareli - No transaction during the year.

2. Other related Parties with whom transactions have taken place - Nil Directors.

Shri Anil Kumar Singh Managing Director

Shri Udayan Singh, Whole time Director

Shri R.K. Mehra Whole time Director

Shri Siddharth Singh Whole time Director

Managerial Remuneration paid for Rs.387503.00

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Mar 31, 2001

A. Basis of Accounting

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation. In cases of Assets borrowed against foreign currency loan, any change, due to exchange rate has been correspond- ingly adjusted in the cost of assets.

c. Depreciation

Depreciation on Fixed Assets is provided as per the straight line method and at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. Retirement Benifits :

The companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. Such contribution is charged to Profit & Loss Ac- count as they become due.

e. inventories :

i. Raw Material is valued at landed cost.

ii. Work in progress is valued at the cost of inputs plus part of conversion charges as applicable.

iii. Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

f. Excise Duty :

Excise duty deposited in PLA and Excise Duty payable as on 31st March 2001 are shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g. Foreign Exchange Transactions :

Monetary Assets and Liabilities related to Foreign Currency Transactions remaining unsettled at the end of the year are translated at the year-end rate from current year. Previously transactions in foreign exchange were accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year. Gains/Losses arising subse- quent to the Balance Sheet date are accounted for on realisation. This has resulted in raising the loss for Rs. 163610.15 for the year and prior period expenses for Rs. 681384.34. h. Sales:

i. Sales include Excise Duty plus Export Incentives.

ii. Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

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Mar 31, 2000

A) BASIS OF ACCOUNTING : The Financial Statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b) FIXED ASSETS: Fixed Assets are stated at cost of acquisition less accumulated depreciation. In cases of Assets borrowed against foreign currency loan, any change, due to exchange rate has been correspondingly adjusted in the cost of assets.

c) DEPRECIATION : Depreciation on Fixed Assets is provided as per the Straight Line Method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d) RETIREMENT BENEFITS : The Companys contribution in respect of Provident Fund is charged against revenue every year. In respect of Gratuity, contribution is made to Life Insurance Corporation of India in the form of premium under the Group Gratuity Scheme. Such contribution is charged to Profit & Loss Account as they become due.

e) INVENTORIES :

i) Raw Material is valued at landed cost.

ii) Work in progress is valued at the cost of inputs plus part of conversipn charges as applicable. ii$ Finished Goods are valued at lower of cost or net realisable value. Excise duty on finished goods at factory is accounted for as and when the materials are cleared.

iv) The WIP has been value as per [e (ii)] and being technical in nature, we have accepted their valuation.

f) EXCISE DUTY : Excise duty debited to PLA is shown in the Books of Account. No adjustment of Modvat on raw material purchase is shown in the books. However, Modvat on Capital Goods is taken in the books.

g) FOREIGN EXCHANGE FLUCTUATIONS: Transactions in foreign exchange are accounted at exchange rates prevailing on the date of the transaction or on the date of remittance/realisation of the account during the year^G^ins/losses arising out of fluctuations in the rates subsequent to the Balance Sheet date are accounted for on realisation.

h) SALES:

1) Sales include Excise Duty and DBK. Where applicable.

2) Debit note received from parties for rejection of goods are accounted for after these rejected goods are declared to be beyond rectification.

2. LIQUIDATED DAMAGES : Liquidated Damages on late deliveries are accounted for only when they are finally not recoverable inspjte of Companys best efforts.