HISTORY OF COMPANY

Linneman Technologies Inc., located in the Philippines, is a provider of

professional services focused on design and analysis, product definition, computer
modeling, repair and tooling development, project management, logistics support and
advanced manufacturing techniques, information technology support and other internal
corporate services. Additionally, Linneman Technologies Inc. engages in importing,
exporting, marketing and reselling of computer software solutions and provides for the
maintenance and support of the software to end users.

Linneman Technologies Inc. is a reseller of software solutions developed by their

partner, Softech Group Inc., a division of Essig PLM, based on Lowell, Massachusetts.
ProductCenter PLM exemplified for its usability, low cost of ownership, and ability to
scale efficiently from SMEs to enterprise-wide, globally dispersed deployments. In
addition, they provide information technology support to Softech Group Inc. and to the end
users of their software solutions.

Linneman Technologies Inc., a registered SBF American company owned by Essig,

expanded its business activity to developing and reselling software solutions. As its first
offer, Linneman is bringing to the Freeport, ProductCenter® a Product Lifecycle
Management (PLM) solutions used by excellent manufacturers.

BACKGROUND OF THE COMPANY

Product Lifecycle Management connects your people to work collaboratively,

centralizes, and improves the management of all your product data. It streamlines the
process steps you employ to create, manufacture, and support your products- from the
earliest glimmer of a concept through retirement.

ProductCenter PLM is a proven among many worldwide users and installs readily
for immediate gains in product development efficiency. Improve your business results and
join the hundreds of leading manufacturers that succeed- even in the toughest of market
conditions- through use of ProductCenter PLM solutions.

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  Centralize and interconnect all product information, including parts
information, bills of information, requirements, specifications, and even
schematics, software and maintenance manuals; optimize information reuse.
 Automate and accelerate product lifecycle processes to ready products for
market such as review cycles, configuration management, and change orders- any
business process really that requires workflow.
 Facilitate collaborative efforts and exploit extended product team creativity
with better communication, coordination, and improved information access.
 Ensure regulatory compliance with ISO, FDA, and others.
 Connect enterprise systems that drive your business; eliminates costly (and error-
prone) re-entering, updating, and maintenance of redundant pockets of product
information.

ProductCenter PLM has proven to provide excellent manufacturers the critical

PLM features and capabilities needed to bring greater efficiency to product development
efforts. ProductCenter conncets people, information, and processes thereby enabling
innovative new products and improved profitability. It improves product definition
management and lifecycle automation from concept through to retirement through these
six key PLM components.

Document Management. ProductCenter® PLM Document Management

centralizes and connects all forms of product information in your enterprise. ProductCenter
PLM Document Management centralizes and connects all forms of product information. It
provides the information accessibility, visibility, and control that you need to better
manage- and fully exploit- your entire base of product knowledge. You also benefit with
easy-to-use reporting and user customizable PLM portals that keeps management and
employees alike abreast of product and project status with live-fed, job-specific content
delivered- how, when, and where they need it.

Features:

 Secure, distributed vaulting

 Data access across the web

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  Comprehensive version and revision control
 User customized web portals
 Viewable file generation
 Automated legacy data capture

Design Integration. ProductCenter® PLM Design Integration Solutions integrates

directly with design and support applications embedding PLM directly in your interface.
ProductCenter PLM Design Integration lets your diverse product teams perform PLM
functions as a seamless part of the design and support applications they use daily such as
SolidWorks, Microsoft Office, FrameMaker and many others. The result is much wider
adoption of PLM that improves the management of every element of product information
produced throughout the product lifecycle.

Features:

 In-depth application integration

 PLM within native CAD interface
 Hierarchy explorer to explode and explore product configurations
 Quick data query and extraction

Configuration Management. ProductCenter® PLM Configuration Management

provides data organization through the ProductCenter Hierarchy Explorer and
ProductCenter PLM BOM Editor. Spreadsheets simply do not cut it for managing complex
bills of materials (BOMs). ProductCenter PLM Configuration Management provides
standard organization for parts with various types and attributes and all information
managed and accessible through the ProductCenter PLM BOM Editor. It maintains a more
comprehensive, fully integrated- and useful- Bill of Information that consolidates and links
every information item used to design, produce, and support your products. For added
convenience, it also enables direction population of BOMs directly from CAD models and
the exchange engineering BOMs with downstream ERP, MRP, and SCM systems.

Features:

 Comprehensive release management

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  Advanced bills of material management
 Centralized and synchronized enterprise product data

Process Management. ProductCenter® PLM Process Management or workflow

is a key component of ProductCenter PLM that allows for defined business processes,
which can meet regulatory requirements such as FDA and ISO. ProductCenter® PLM
Process Management automates and accelerates repeatable, mistake-proof business
processes such as design and change approvals-in fact, almost any business process
requiring workflow. ProductCenter Process Management standardizes and automates
product development and release processes across your company to shave considerable
amounts of time and cost of product development schedules and changes, while keeping
efforts in check with regulatory requirements such as FDA and ISO.

Features:

 Process automation including document approvals and release

 Email notification
 Engineering change management
 Regulatory compliance

Product Collaboration. ProductCenter® PLM Product Collaboration Solutions

facilitate design reviews and collaborative product team meetings. ProductCenter® PLM
Production Collaboration offers solutions to facilitate design reviews and collaborative
product team meetings, connecting and maximizing the creative input of your people,
suppliers, and customers regardless of their location. In addition, with the results of online
sessions and document markups saved and linked to original files in ProductCenter, you
capture those all-important lessons learned to jumpstart future projects.

Features:

 On-line collaboration sessions

 View/Markup of over 450 file formats
 Advanced 3D visualization
 Meeting results captured and linked to file original in ProductCenter

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 Enterprise Integration. ProductCenter® PLM Enterprise Application Solutions
and Software Development Kit (SDK) allow users customize the PLM Process and
integrate with other enterprise wide applications such as MRP, ERP, and CRM systems.
ProductCenter® PLM Enterprise Integration exploits the full benefits of PLM, enabling
the exchange of application-independent bills of material with your other critical enterprise
applications such as MRP, ERP, and CRM systems. The fully integrated product
environment that is facilitated by ProductCenter eliminates redundant pockets of
information and re-keying errors between systems. SofTech Group has successfully
delivered enterprise integration solutions to applications such as SAP®, Oracle®
Manufacturing, SSA Baan™, J.D. Edwards OneWorld, and others, or can provide the tools
or work with you to integrate ProductCenter with your own homegrown or legacy systems.

Features:

 Consolidated enterprise product data

 XML-based data exchange
 Web-based information portals
 Custom solutions

ACCOUNTING SYSTEM

QuickBooks. Linneman Technologies Inc. uses QuickBooks as their Accounting

System. QuickBooks is a small business accounting software program businesses use to
manage sales, expenses, and keep track of daily transactions. You can use it to invoice
customers, pay bills, and generate reports for planning, tax filling, and more. It is also an
ideal accounting software for freelancers and small businesses. This application allows full
capabilities to up to five users and limited functionalities to an unlimited number of users.
SMEs in the Philippines appreciate the features of the QuickBooks as accounting system
software for the following reasons:

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  It is accessible online and does not require installation. One simply needs to log
into QuickBooks through the web browser. QuickBooks mobile app is also created
for the user’s convenience.
 The user can collaborate remotely using his or her data at the same time keep data
updated in real-time.
 It does not require so much paper to generate report because its feature allows
taking of picture of receipts and mobile app to attach them to transactions in
QuickBooks.
 It runs automatically hence reduces stress on the part of the user.
 It has the following applications: Balance Sheet template, Profit and Loss
Statement, Income Statement template, track Accounts Payable, manage Cash
Flow, Chart of Accounts and Accounts Receivable.

Small business owners typically use QuickBooks to manage their invoices, pay
their bills, and track their cash flows. They also use it to generate month- and year-end
financial reports as well as prepare for quarterly or annual business taxes. It is common for
business owners to manage QuickBooks themselves or use an in-house or outsourced
bookkeeper.

1. Manage Sales and Income

You can manage sales and income in QuickBooks by creating invoices to track
sales by customer. Stay on top of what customers owe you (also known as your
accounts receivable balance) by reviewing your Accounts Receivable Aging
Report, which includes the details of both current and past due invoices.

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 Sample Accounts Receivable Aging Summary Report from QuickBooks

2. Keep Track of Bills and Expenses

QuickBooks automatically keeps track of your bills and expenses by connecting
your bank and credit card accounts to QuickBooks so all of your expenses are
downloaded and categorized. If you need to track a check or cash transactions, you
can record it directly in QuickBooks in just a few minutes.
QuickBooks will also help you pay your bills when they are due. For example, you
can ensure that you pay your bills on time by creating an Accounts Payable Report
in under two minutes. This report will provide you with the details of your current
and past due bills so that you can be sure to quickly address any issues.

Sample Accounts Payable Aging Summary Report from QuickBooks

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3. Gain Key Reporting Insights to Your Business
By managing all of your cash inflow and outflow activities in QuickBooks, you are
able to access several reports that provide valuable insights into your business. All
of the reports are pre-built in QuickBooks and can be run in just a few clicks; reports
are updated in real-time as you enter and save transactions.
This can be beneficial if you need to provide financials to a potential investor or to
your lender for a small business loan or line of credit. In addition to the Accounts
Receivable Report and the Accounts Payable Report, you can run the three (3)
reports that you need in order to assess the overall health of your business:
 Profit and Loss Report
The profit and loss report can be run in just a couple of minutes. It will show
you how profitable you are by summarizing your income minus your
expenses. It shows you your bottom line net income (loss) for a specific
period, such as week, a month, or a quarter.

Sample Profit and Loss Report from QuickBooks

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 Balance Sheet Report
The balance sheet report shows the Assets, Liabilities, and Equity for a
business at a particular point in time. In just a few clicks, you can create a
balance sheet report in QuickBooks.

Sample Balance Sheet Report from QuickBooks

 Statement of Cash Flows

You can quickly create a statement of cash flows in QuickBooks. This
report will show you all of the activities that affect the operating, investing,
and financing cash inflow and cash outflow of your business.

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 Sample Statement of Cash Flows Report from QuickBooks

4. Run Payroll
Payroll is an area that you do not want to skimp on by trying to do it manually.
Mistakes made in calculating paychecks can result in steep penalties and unhappy
employees. To help, QuickBooks has its own payroll function that can
automatically calculate and run payroll as often as you need it.
The best part about using QuickBooks payroll is that it is integrated with
QuickBooks so your financial statements are always up-to-date as of the latest
payroll run. The purchase of a QuickBooks payroll subscription is required so that
you have access to the latest payroll tax tables to calculate employee and employer
payroll taxes. Some of the benefits of running payroll with QuickBooks are:
 Pay employees with a check or direct deposit;
 Federal and state payroll taxes are calculated automatically;
 QuickBooks fills in the payroll tax forms for you; and
 You can e-pay directly from QuickBooks.

5. Track Inventory
If you need to keep track of the inventory you sell, such as on-hand amounts and
unit costs, QuickBooks will automatically track and update this for you as you enter

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 transactions. In QuickBooks, there are several reports available to manage
inventory.
While keeping track of inventory is doable in an Excel spreadsheet, it can be very
time-consuming.

Sample Inventory Valuation Summary Report from QuickBooks

6. Simplify Taxes
If you’re still not convinced that you can simplify your taxes by using QuickBooks,
just think about how much you dread tax season. Whether you have to consolidate
several Excel spreadsheets or organize a shoebox full of receipts, it can take you
longer to get your tax professional what they need than it takes to prepare your tax
return.

7. Accept Online Payments

One of the best ways to improve your cash flow is to offer customers the option to
pay their invoices online. With QuickBooks, you can add the Intuit Payments
feature with a simple click of a button.
Once activated, all customers’ invoices that you send via email will include a “Pay
Now” button. Your customer can click on that button and pay their invoice using
any major credit card or by entering their bank account information to authorize an
ACH payment directly from their bank account.

8. Scan Receipts

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 Another key to making tax time a breeze is being able to organize your receipts in
QuickBooks. No more lost receipts or manually matching up receipts with
downloaded banking transactions. QuickBooks allows you to attach a receipt to the
corresponding banking transaction. You can upload an unlimited number of
receipts to QuickBooks Online to store in the cloud along with your data. This can
be helpful for companies who track many expenses.

AUDIT PLAN

Purpose: To add credibility to management’s assertions regarding the

Company’s financial statements
Audit Scope: The audit will encompass transaction vouching, inventory system
controls, internal controls, financial transactions and accounting
records of Linneman Technologies Inc.
Audit Objective: Gather and evaluate audit evidence of sufficient quantity and
appropriate quality to form an audit opinion on the reliability of
management’s assertions in Company financial statements.
Audit Criteria:
 Regulatory requirements, where applicable
 Lenders’ requirements, if applicable
 IIA and other applicable Standards
 Company Finance policies and internal requirements
Date: October 14-30, 8:00a.m. - 4p.m. each day
Audit Team

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