Linaks Microelectronics Limited is an Indian manufacturer specializing in the **Printed Circuit Board (PCB)** industry. The company is currently in a critical phase of corporate rebirth following a **Corporate Insolvency Resolution Process (CIRP)**. Under the oversight of a newly appointed management team and a court-approved **Resolution Plan**, the company is attempting to pivot from a period of operational cessation and financial distress toward a future as an export-oriented manufacturing hub. --- ### **Corporate Restructuring & The NCLT Resolution Plan** The company’s recent history is defined by its insolvency proceedings, initiated by the **National Company Law Tribunal (NCLT)** on **April 22, 2022**. This was triggered by land security defaults related to a guarantee provided for **M/s Clarion Township Pvt. Ltd.** A formal **Resolution Plan** was approved on **July 04, 2024**, which is currently being implemented to settle outstanding liabilities and stabilize the corporate structure. **Financial Settlement Framework:** | Particulars | Details / Proposed Outlay | | :--- | :--- | | **Secured Financial Creditor** | **Rs. 18,00,00,000** (Payable to **Canara Bank**) | | **Total CIRP Cost** | **Rs. 1,85,00,000 (Approx.)** | | **Employee/Workmen Dues** | **NIL** | | **Funding Strategy** | **Internal accruals** of the Resolution Applicant; **NBFC loans** if required | | **Project Commitment** | Construction of **Rohtas Project Platina** | The company remains under the supervision of a **Monitoring Committee**—comprising the Resolution Professional, representatives from **Canara Bank**, and the Resolution Applicant—until all payments under the plan are finalized. --- ### **Operational Status & Asset Utilization** Currently, Linaks Microelectronics operates in a **single business segment**: the manufacture and dealing of **PCBs** (primarily single-sided and double-sided). However, due to financial constraints, active manufacturing by the company itself ceased on **June 30, 2022**. * **Lease Model:** To cover skeletal overheads and maintain the facility, the company has entered into a **leave and license arrangement** with **Green Line Electronics**, which currently operates the plant. * **Asset Encumbrance:** The company’s land remains tied to a builder’s agreement with **Clarion Township** as security for bank liabilities. * **Subsidiary Structure:** The company has **no subsidiaries, associates, or joint ventures**, maintaining a lean but isolated corporate structure. --- ### **Strategic Pivot: Export-Oriented Growth & Global Arbitrage** The new management is positioning Linaks to bypass domestic market constraints by leveraging India’s **low-cost technical manpower** to compete with high-cost manufacturers in developed economies. * **Geographic Target Markets:** * **Europe:** Maintaining a stable base of regular and reliable customers. * **Emerging Pipelines:** Actively developing new client leads in **Eastern Europe** and the **Americas**. * **Regulatory Tailwinds:** As a signatory to the **Information Technology Agreement (ITA)**, the company aims to benefit from easing custom duties in international markets. * **Competitive Positioning:** The strategy focuses on becoming an **export-manufacturing base**, utilizing the cost-arbitrage of Indian technical labor to undercut US and European competitors. --- ### **Capital Structure & Equity Composition** As of **March 31, 2025**, the company maintains a capital structure consisting of equity and convertible preference instruments. | Capital Category | Authorized Value (INR) | Paid-up Value (INR) | | :--- | :--- | :--- | | **Equity Share Capital** | **5,00,00,000** (at **Re. 1** face value) | **1,73,35,300** (at **Re. 1** face value) | | **Optionally Convertible Preference Shares (OCPS)** | **4,00,00,000** (at **Rs. 10** face value) | **3,22,00,000** (at **Rs. 10** face value) | | **Total Share Capital** | **9,00,00,000** | **4,95,35,300** | * **Total Authorized Capital:** **Rs. 9 Crores**. * **Total Paid-up Capital:** Approximately **Rs. 4.95 Crores**. * **Equity Units:** **1,73,35,300** fully paid-up shares. * **Preference Units:** **32,20,000** Optionally Convertible Preference Shares. --- ### **Governance Reconstitution & Leadership** Following the **July 2024** NCLT order, the Board of Directors was overhauled to ensure compliance and strategic oversight. **Key Appointments & Board Structure:** * **Managing Director:** **Mr. Shashi Shekhar Mishra** (Appointed for **5 years** from **September 2025**). * **Independent Directors:** **Mr. Prakash Chandra Srivastava** and **Ms. Komilla Singh** (Appointed for **5-year terms** ending in **2030**). * **Statutory Auditors:** **M/s. R S J B & Associates** (Appointed until **2030**). * **Investor Relations:** A **Stakeholders Relationship Committee** was formed on **April 01, 2025**, with **Beetal Financial and Computer Services (P) Limited** serving as the Registrar and Share Transfer Agent. --- ### **Critical Risk Factors & Compliance Deficits** Investors should note that the company is emerging from a period of significant regulatory and financial neglect. **1. Regulatory Non-Compliance:** The company has faced extensive defaults under the **Companies Act, 2013** and **SEBI (LODR) Regulations**: * **BSE Status:** Trading is currently **suspended** due to penal reasons and non-payment of **Annual Listing Fees (ALF)**. * **Reporting Lapses:** Failure to file the **FY 2023-24 Annual Report** and delayed **FY 2024-25** results. * **Audit Quality:** Recent financial results were not certified by a **Peer Reviewed Auditor** of ICAI. * **Internal Controls:** The company lacked a **Company Secretary** and **Internal Auditor** for significant portions of 2024 and 2025 (remedied in **August 2025**). **2. Market & Technological Risks:** * **Technological Gap:** While competitors produce advanced **24-layer PCBs** and **flexible circuits**, Linaks has historically focused on simpler variants, risking obsolescence without significant R&D investment. * **Sector Sensitivity:** The company’s reliance on the **Automotive Electronics** sector exposes it to global economic swings and volatility. * **Legacy Litigation:** Unresolved sales tax assessments dating back to the 1990s remain on the books. **Litigated Sales Tax Assessments (Historical):** | Financial Year | Provincial Disputed Amount (₹) | Central Disputed Amount (₹) | | :--- | :--- | :--- | | **1993-94** | Nil | **153** | | **1994-95** | **142** | **75** | | **1996-97** | **383** | **102** | **3. Financial Instability:** The company has not recommended dividends due to **persistent losses**. Its solvency remains contingent on the successful execution of the **Rohtas Project Platina** and the continued support of the Resolution Applicant's internal accruals.