10-Q/A

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q/A

(Amendment No. 1)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 24, 2011

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to _______________

Commission File No. 0-5278

IEH CORPORATION

(Exact name of registrant as specified in its charter)

New York	13-5549348
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

140 58th Street, Suite 8E, Brooklyn, New York 11220

(Address of principal executive office)

Registrant's telephone number, including area code: (718) 492-4440

____________________________________________

Former name, former address and former fiscal year,

if changed since last report.

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller Reporting Company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES o NO þ

2,303,468 shares of Common Shares, par value $.01 per share, were outstanding as of June 24, 2011.

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 24, 2011, filed with the Securities and Exchange Commission on August 8, 2011 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q.  Exhibit 101 provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBLR (Extensible Business Reporting Language).

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

ITEM 6. EXHIBITS

(a) Exhibits

Exhibit 31.1 Certification Pursuant to Section 302 of the Sarbanes Oxley Act*

Exhibit 31.2 Certification Pursuant to Section 302 of the Sarbanes Oxley Act*

Exhibit 32.1 Certification Pursuant to Section 906 of the Sarbanes Oxley Act*

Exhibit 101.INS XBRL Instance Document*

Exhibit 101.SCH XBRL Taxonomy Extension Schema Document*

Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document*

Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Document*

Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document*

*              Previously filed

**            Furnished, not filed, herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 10-Q/A to be signed on its behalf by the undersigned, thereunto duly authorized.

	IEH CORPORATION
	(Registrant)
September 9, 2011	/s/ Michael Offerman
	Michael Offerman
	President (Principal Executive Officer)
September 9, 2011	/s/ Robert Knoth
	Robert Knoth
	Chief Financial Officer (Principal Accounting Officer)

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Balance Sheet (Parenthetical) (USD $)	Jun. 24, 2011	Mar. 25, 2011
Balance Sheet (Parenthetical) [Abstract]
Allowances for doubtful accounts	$ 11,562	$ 11,562
Accumulated depreciation and amortization	$ 7,282,128	$ 7,244,628
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	10,000,000	10,000,000
Common stock issued (in shares)	2,303,468	2,303,468
Common stock outstanding (in shares)	2,303,468	2,303,468

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Statement of Operations (USD $)	3 Months Ended
	Jun. 24, 2011	Jun. 25, 2010
Revenues [Abstract]
REVENUE, net sales	$ 3,487,455	$ 3,353,081
Cost of products sold	2,298,628	2,109,906
Selling, general and administrative	523,896	460,763
Interest expense	7,859	7,408
Depreciation	37,500	37,500
Total costs and expenses	2,867,883	2,615,577
OPERATING INCOME	619,572	737,504
OTHER INCOME	83	164
INCOME BEFORE INCOME TAXES	619,655	737,668
PROVISION FOR INCOME TAXES	(272,000)	(342,800)
NET INCOME	$ 347,655	$ 394,868
BASIC AND DILUTED EARNINGS PER SHARE (Note 2) (in dollars per share)	$ 0.15	$ 0.17
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (shares in thousands)	2,303	2,303

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Document And Entity Information (USD $)	3 Months Ended
	Jun. 24, 2011	Sep. 24, 2010
Entity Registrant Name	IEH CORPORATION
Entity Central Index Key	0000050292
Current Fiscal Year End Date	--03-25
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 10,135,259.2
Entity Common Stock, Shares Outstanding	2,303,468
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 24, 2011

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OTHER CURRENT LIABILITIES

3 Months Ended

Jun. 24, 2011

OTHER CURRENT LIABILITIES [Abstract]

OTHER CURRENT LIABILITIES

Note 7 - OTHER CURRENT LIABILITIES:

Other current liabilities are comprised of the following:

	June 24,		March 25,
	2011		2011
Payroll and vacation accruals	$	392,255	$	323,205
Sales commissions		34,703		37,009
Other		22,994		4,251
	$	449,952	$	364,465

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Jun. 24, 2011

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 12 - COMMITMENTS AND CONTINGENCIES:

The Company has renewed its lease for its manufacturing facility located at 140 58th Street,

Suite 8E, Brooklyn, New York. The renewed lease term runs from December 1, 2010 through November 30, 2020. The basic minimum annual rentals are as follows:

Fiscal year ending March:
2012	$	149,380
2013		153,860
2014		158,480
2015		163,240
2016		168,120
Thereafter		853,100
	$	1,646,180

The rental expense for the three months ended June 24, 2011 $36,975 and for June 25, 2010 was $36,267, respectively.

The Company has a collective bargaining multi-employer pension plan (“Multi-Employer Plan”) with the United Auto Workers of America, Local 259 (“UAW”). Contributions are made by the Company in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the Multi-Employer Pension Plan Amendment Act of 1990 (the “1990 Act”), the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these are contingent upon termination, withdrawal, or partial withdrawal from the Multi-Employer Plan.

The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan, nor does it intend to do so in the future. Under the 1990 Act, liabilities would be based upon the Company's proportional share of the Multi-Employer Plan's unfunded vested benefits which is currently not available. The amount of accumulated benefits and net assets of such Plan also is not currently available to the Company. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $26,689 and $28,500 for the three months ended June 24, 2011 and June 25, 2010, respectively.

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INVENTORIES

3 Months Ended

Jun. 24, 2011

INVENTORIES [Abstract]

INVENTORIES

Note 3 - INVENTORIES:

Inventories are stated at cost, on a first-in, first-out basis, which does not exceed market value.

The Company manufactures products pursuant to specific technical and contractual requirements. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete.

The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete.

The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience is made to inventory in recognition of this impairment.

Inventories are comprised of the following:

	June 24,		March 25,
	2011		2011
Raw materials	$	2,412,634	$	2,279,762
Work in progress		712,880		673,619
Finished goods		804,286		759,991
	$	3,929,800	$	3,713,372

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CHANGES IN STOCKHOLDERS' EQUITY

3 Months Ended

Jun. 24, 2011

CHANGES IN STOCKHOLDERS' EQUITY [Abstract]

CHANGES IN STOCKHOLDERS' EQUITY

Note 9 - CHANGES IN STOCKHOLDERS' EQUITY:

The accumulated retained earnings increased by $347,655, which represents the net income for the three months ended June 24, 2011. As a result at June 24, 2011, the Company reported accumulated retained earnings of $4,174,889.

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2002 EMPLOYEE STOCK OPTION PLAN

3 Months Ended

Jun. 24, 2011

2002 EMPLOYEE STOCK OPTION PLAN [Abstract]

2002 EMPLOYEE STOCK OPTION PLAN

Note 10- 2002 EMPLOYEE STOCK OPTION PLAN:

On September 21, 2001 the Company's shareholders approved the adoption of the Company's 2002 Employees Stock Option Plan (“2002 Plan”) to provide for the grant of options to purchase up to 750,000 shares of the Company's common stock to all employees, including senior management.

Options granted to employees under the 2002 Plan may be designated as options which qualify for incentive stock option treatment under Section 422A of the Internal Revenue Code, or options which do not so qualify.

Under the 2002 Plan, the exercise price of an option designated as an Incentive Stock Option shall not be less than the fair market value of the Company's common stock on the day the option is granted. In the event an option designated as an incentive stock option is granted to a ten percent (10%) shareholder, such exercise price shall be at least 110 percent (110%) of the fair market value of the Company's common stock and the option must not be exercisable after the expiration of five years from the day of the grant.

Exercise prices of non-incentive stock options may be less than the fair market value of the Company's common stock.

The aggregate fair market value of shares subject to options granted to a participant(s), which are designated as incentive stock options, and which become exercisable in any calendar year, shall not exceed $100,000. As of June 24, 2011, no options had been granted under the 2002 Plan.

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WORKERS COMPENSATION INSURANCE ASSESSMENT

3 Months Ended

Jun. 24, 2011

WORKERS COMPENSATION INSURANCE ASSESSMENT [Abstract]

WORKERS COMPENSATION INSURANCE ASSESSMENT

Note 8 - WORKERS COMPENSATION INSURANCE ASSESSMENT:

On September 15, 2008, the Company was notified by the State of New York Workers' Compensation Board (the “Board”) that the Trade Industry Workers' Compensation Trust for Manufacturers (the “Trust”) had defaulted. As a member of this self-insured group, the Company was assessed on an estimated basis by the Board for its allocable share necessary to discharge all liabilities of the Trust.

The assessed amount for the years 2002 through 2006 was $101,362. The assessed amount for each year is detailed as follows:

2002	$	16,826
2003		24,934
2004		31,785
2005		14,748
2006		13,069
	$	101,362

The Company did have the option of paying this assessment as a lump sum amount or paying off the assessment over a 60 month period. The Company elected the deferral option, and was obligated to making monthly payments of $1,689 for 59 months, and $1,711 for the 60th and final month. The Company had recorded this assessment as a charge to Cost of Sales in the quarter ended December 26, 2008.

The Company was subsequently notified that it was being assessed an additional $146,073 covering the years 2002 through 2007, bringing the total deficit allocation assessment to $247,435.

The total revised assessment for the years 2002 to 2007 is as follows:

2002	$	23,445
2003		43,797
2004		51,381
2005		38,309
2006		46,477
2007		44,026
	$	247,435

The Company has elected to pay the revised assessment over a five year period (60 months). The monthly payments, inclusive of interest at 7.50%, are $3,970.

As of June 24, 2011, the Company had paid down $98,646 of this assessment. The remaining balance of the revised assessment payable as of June 24, 2011 was $148,789.

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INTERIM RESULTS AND BASIS OF PRESENTATION

3 Months Ended

Jun. 24, 2011

INTERIM RESULTS AND BASIS OF PRESENTATION [Abstract]

INTERIM RESULTS AND BASIS OF PRESENTATION

Note 1- INTERIM RESULTS AND BASIS OF PRESENTATION:

The accompanying unaudited financial statements as of June 24, 2011 and June 25, 2010 and for the three months then ended have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 24, 2011 and June 25, 2010 and the results of operations and cash flows for the three months then ended. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended June 24, 2011, are not necessarily indicative of the results to be expected for any subsequent quarter or the entire fiscal year. The balance sheet at March 25, 2011 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes, however, that the disclosures in this report are adequate to make the information presented not misleading in any material respect. The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto of IEH Corporation for the fiscal year ended March 25, 2011 included in the Company's Annual Report on Form 10-K as filed with the SEC and the attached Management's Discussion and Analysis of Financial Condition and Results of Operation.

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PREPAID EXPENSES AND OTHER CURRENT ASSETS

3 Months Ended

Jun. 24, 2011

PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Note 4 - PREPAID EXPENSES AND OTHER CURRENT ASSETS:

Prepaid expenses and other current assets are comprised of the following:

	June 24,		March 25,
	2011		2011
Prepaid insurance	$	28,860	$	31,249
Prepaid corporate taxes		593,743		145,440
Other current assets		2,000		70,399
	$	624,603	$	247,088

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PROPERTY, PLANT AND EQUIMENT

3 Months Ended

Jun. 24, 2011

PROPERTY, PLANT AND EQUIMENT [Abstract]

PROPERTY, PLANT AND EQUIMENT

Note 5 - PROPERTY, PLANT AND EQUIPMENT:

Property, plant and equipment are comprised of the following:

	June 24,			March 25,
	2011			2011
Computers	$	261,750		$	258,402
Leasehold improvements		588,685			588,685
Machinery and equipment		5,262,288			5,212,686
Tools and dies		2,295,075			2,286,175
Furniture and fixture		160,020			160,020
Website development cost		7,550			7,550
		8,575,368			8,513,518
Less: accumulated depreciation and amortization		(7,282,128	)		(7,244,628	)
	$	1,293,240		$	1,268,890

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ACCOUNTS RECEIVABLE FINANCING

3 Months Ended

Jun. 24, 2011

ACCOUNTS RECIEVABLE FINANCING [Abstract]

ACCOUNTS RECIEVABLE FINANCING

Note 6 - ACCOUNTS RECEIVABLE FINANCING:

The Company entered into an accounts receivable financing agreement with a non-bank lending institution (“Factor”) whereby it can borrow up to 80 percent of its eligible receivables (as defined in such financing agreement) at an interest rate of 2 ½ % above JP Morgan Chase's publicly announced rate with a minimum rate of 12% per annum. The financing agreement has an initial term of one year and will automatically renew for successive one-year terms, unless terminated by the Company or the Factor upon receiving 60 days prior notice. Funds advanced by the Factor are secured by the Company's accounts receivable and inventories. As of June 24, 2011, the Company reported a liability to the Factor of $25,629.As of March 25, 2011, the Company had reported excess payments to the Factor resulting in an overpayment of $78,898, which the Company applied against borrowings during the current quarter. These excess repayments are reported in the accompanying financial statements as of March 25, 2011 as “Excess repayments to accounts receivable factor.”

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Statement of Cash Flows (USD $)	3 Months Ended
	Jun. 24, 2011	Jun. 25, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 347,655	$ 394,868
Depreciation	37,500	37,500
(Increase) decrease in accounts receivable	189,314	(285,030)
(Increase) in inventories	(216,428)	(184,004)
Decrease in excess payments to accounts receivable factor	78,898	224,040
(Increase) in prepaid expenses and other current assets	(377,515)	(458,196)
(Increase) in other assets	0	(40)
(Decrease) in accounts payable	(81,895)	(5,194)
Increase in other current liabilities	85,487	79,641
Increase in accrued corporate income taxes	367,030	342,800
(Decrease) in workers compensation assessment	(11,910)	(5,069)
Total adjustments	70,481	(253,552)
NET CASH PROVIDED BY OPERATING ACTIVITIES	418,136	141,316
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	(61,850)	(60,245)
NET CASH USED BY INVESTING ACTIVITIES	(61,850)	(60,245)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Activity of accounts receivable financing	25,629	26,054
NET CASH PROVIDED BY FINANCING ACTIVITIES	25,629	26,054
INCREASE IN CASH	381,915	107,125
CASH, beginning of period	157,049	320,006
CASH, end of period	538,964	427,131
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the three months for:
Interest paid	4,366	3,563
Income Taxes paid	$ 353,273	$ 355,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jun. 24, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Description of Business:

The Company designs, develops and manufactures printed circuit connectors for high performance applications. The Company has also developed a high performance plastic circular connector line. All of the Company's products utilize the HYPERTAC™ contact design, which is identified by the generic “HYPERBOLOID” in the Company's catalogs. This is necessary since all other HYPERTAC™ companies have been purchased by a multi-national company. The Company is the only independent producer of HYPERTAC™ in the United States.

The Company's customers consist of OEM's (Original Equipment Manufacturers), companies manufacturing medical equipment, and Distributors who resell the Company's products to OEMs. The Company sells its products directly and through regional representatives located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union (EU).

The customers that the Company services are in the Government, Military, Aerospace, Medical, Automotive, Industrial, Test Equipment and Commercial Electronics markets. The Company appears on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Description of Business: (continued)

customer requested modifications to this specification. Sales to the commercial electronic and military markets were 31% and 69%, respectively, of the Company's net sales for the year ended March 25, 2011. The Company's offering of “QPL” items has recently been expanded to include additional products.

Accounting Period:

The Company maintains an accounting period based upon a 52-53 week year, which ends on the nearest Friday in business days to March 31. The year ended March 25, 2011 was comprised of 52 weeks.

Revenue Recognition:

Revenues are recognized at the shipping date of the Company's products. The Company has historically adopted the shipping terms that title to merchandise passes to the customer at the shipping point (FOB Shipping Point). At this juncture, title has passed, the Company has recognized the sale, inventory has been relieved, and the customer has been invoiced. The Company does not offer any discounts, credits or other sales incentives.

The Company's policy with respect to customer returns and allowances as well as product warranty is as follows:

The Company will accept a return of defective product within one year from shipment for repair or replacement at the Company's option. If the product is repairable, the Company at its own cost, will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of product. The Company's experience has been that a loss from returns is extremely remote. Accordingly, the Company's management does not believe that an allowance for loss from returns is necessary.

Most of the Company's products are custom ordered by customers for a specific use. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not invoice its customers separately for these services.

Inventories:

Inventories are stated at cost, on a first-in, first-out basis, which does not exceed market value.

The Company manufactures products pursuant to specific technical and contractual requirements.

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Inventories: (continued)

The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete.

The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete.

The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience is made to inventory in recognition of this impairment.

Concentration of Credit Risk:

Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law on July 21, 2010, the Federal Deposit Insurance Corporation (FDIC) will permanently insure interest bearing accounts at financial institutions up to $250,000 in the aggregate.

An additional provision of the Dodd-Frank Act provides for all non-interest bearing transaction accounts to be fully insured by the FDIC. Coverage under this provision will begin on

December 31, 2010 and end on December 31, 2012.

The Company has not experienced any losses in such accounts and believes its cash balances are not exposed to any significant risk.

As of June 24, 2011, the Company had funds on deposit in the amount of $538,964 in one financial institution comprised of the following:

Non-interest bearing accounts	$	409,383
Interest bearing account		129,581
	$	538,964

Property, Plant and Equipment:

Property, plant and equipment is stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Property, Plant and Equipment: (continued)

method over the estimated useful lives (5-7 years) of the related assets.

Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization accounts. Any gain or loss thereon is either credited or charged to operations.

Income Taxes:

The Company follows the policy of treating investment tax credits as a reduction in the provision for federal income tax in the year in which the credit arises or may be utilized. Deferred income taxes arise from temporary differences resulting from different depreciation methods used for financial and income tax purposes. The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, which includes the provisions ofStatement of Financial Accounting Standards (“SFAS”) No. 109, “Accounting for Income Taxes.”

Net Income Per Share:

The Company has adopted the provisions of ASC Topic 260, Earnings per Share, which includes the provisions of SFAS No. 128, “Earnings Per Share”, which requires the disclosure of “basic” and “diluted” earnings (loss) per share. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is similar to basic earnings per share except that the weighted average number of common shares outstanding is increased to reflect the dilutive effect of potential common shares, such as those issuable upon the exercise of stock or warrants, as if they had been issued. For the three months ended June 24, 2011 and June 25, 2010, respectively, there were no items of potential dilution that would impact on the computation of diluted earnings or loss per share.

Fair Value of Financial Instruments:

The carrying value of the Company's financial instruments, consisting of accounts receivable, accounts payable, and borrowings, approximate their fair value due to the relatively short maturity (three months) of these instruments.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual amounts could differ from those estimates.

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Impairment of Long-Lived Assets:

The Company has adopted the provisions of ASC Topic, 360, Property, Plant and Equipment-Impairment or Disposal of Long-Lived Assets which includes the provisions ofSFAS No. 144, “Accounting for The Impairment or Disposal of Long-Lived Assets,” and requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company has adopted SFAS No. 144. There were no long-lived asset impairments recognized by the Company for the three months ended June 24, 2011 and June 25, 2010, respectively.

Reporting Comprehensive Income:

The Company has adopted the provisions of ASC Topic, 220, Comprehensive Income which includes the provisions ofSFAS No. 130, “Reporting Comprehensive Income”. This Statement established standards for reporting and display of comprehensive income and its components (revenues, expenses, gains and losses) in an entity's financial statements. This Statement requires an entity to classify items of other comprehensive income by their nature in a financial statement and display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of a statement of balance sheet. There were no material items of comprehensive income to report for the three months ended June 24, 2011 and June 25, 2010, respectively.

Segment Information:

The Company has adopted the provisions of ASC Topic, 280, Segment Reporting which includes the provisions of SFAS No. 131, “Disclosures About Segment of An Enterprise and Related Information.” This Statement requires public enterprises to report financial and descriptive information about its reportable operating segments and establishes standards for related disclosures about product and services, geographic areas, and major customers. The adoption of ASC Topic 280 did not affect the Company's presentation of its results of operations or financial position.

Research and Development:

The Company provides personalized engineering services to its customers by designing connectors for specific customer applications. The employment of electromechanical engineers is the anticipated cornerstone of the Company's future growth. The Company maintains a testing laboratory where its engineers experiment with new connector designs based on changes in technology and in an attempt to create innovative, more efficient connector designs.

The Company did not expend any funds on nor receive any revenues related to customer sponsored research and development activities relating to the development of new designs, techniques and the improvement of existing design during the three months ended June 24, 2011 and June 25, 2010, respectively.

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Effect of New Accounting Pronouncements:

In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Principles- a Replacement of FASB Statement No. 162 (“SFAS No. 168”). SFAS No. 168 establishes the ASC as the source of authoritative accounting principles recognized by the FASB to be applied in the preparation of financial statements in conformity with GAAP.

Rules and interpretive releases of the SEC under the authority of Federal securities laws are also sources of authoritative GAAP for SEC registrants. All guidance contained in the ASC carries an equal level of authority.

The ASC superseded all existing non-SEC accounting and reporting standards. The FASB will not issue new standards in the form of any SFAS, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, the FASB will issue Accounting Standards Updates (“ASU”) that will serve to update the ASC, provide background information about the guidance and provide the bases for conclusions on the change(s) in the ASC. The adoption of SFAS No. 168 did not have an impact upon the Company's financial position, results of operations or cash flows.

In May 2009, the FASB issued guidance now codified as ASC Topic 855, “Subsequent Events”, which provides authoritative accounting literature related to evaluating subsequent events. ASC 855 is similar to current guidance with some exceptions that are not intended to result in significant change to current practice. ASC 855 defines subsequent events and also requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. The provisions of ASC 855 are effective for interim or annual financial periods ending after June 15, 2009. The Company has adopted the provisions of ASC 855 effective as of September 30, 2009 and its adoption did not have a material impact on the Company's financial position, results of operations, cash flows or its required disclosures in its Form 10-Q. The Company has evaluated subsequent events through June 24, 2011.

In April 2009, the FASB issued FSP FAS No. 107-1 and Accounting Principles Board (“APB”) Opinion No. 28-1, Interim Disclosures about Fair Value of Financial Instruments”, which amends SFAS No. 107, Disclosures about Fair Value of Financial Instruments and requires disclosures about the fair value of financial instruments for interim reporting periods as well as in annual financial statements. FSP FAS No. 107-1 and APB No. 28-1 also amend APB Opinion No. 28, Interim Financial Reporting, to require these disclosures in all interim financial statements. FSP FAS No. 107-1 and APB No. 28-1 are effective for interim reporting periods ending after June 15, 2009. The guidance of FSP FAS No. 107-1 and APB No. 28-1 is now included in ASC Topic 825, Financial Statements. The adoption of FSP FAS No. 107-1 and APB No. 28-1 has not had a material impact on the Company's financial position, results of operations or cash flows.

IEH CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)

Effect of New Accounting Pronouncements: (continued)

The Company has adopted the provisions of ASC Topic, 740, Income Taxes whichincludesthe provisions of Financial Accounting Standards Board Interpretation No.48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes- an interpretation of FASB Statement No. 109”, which clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements in accordance with FASB Statement No.109, “Accounting for Income Taxes” FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement disclosures of tax positions taken or expected to be taken in an income tax filing.

The evaluation of a tax position is a two step process. The first step requires an entity to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. The second step requires an entity to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the largest amount of benefit that has a greater than fifty percent likelihood of being recognized. FIN 48 also provides guidance on de-recognition, classification, interest and penalties, accounting for interim periods, disclosure and transition.

The Company believes that, with its adoption of ASC Topic 740, the income tax positions taken by it did not have a material effect on the financial statements for the three months ended

June 24, 2011.

The Company has adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures which includes the provisions of SFAS No. 157, “Fair Value Measurements”, which enhances existing guidance for measuring assets and liabilities using fair value. ASC Topic 820 and SFAS No. 157 provide a single definition of fair value, together with a framework for measuring it, and require additional disclosure about the use of fair value to measure assets and liabilities. The Company does not believe that ASC Topic 820 will have a material impact on its financial statements.

The Company has adopted the provisions of ASC Topic 825, Financial Instruments, which includes the provisions of SFAS 159 “The Fair Value Option for Financial Assets and Financial Liabilities”, providing companies with an option to report selected financial assets and liabilities at fair value. The objective of ASC Topic 825 and SFAS 159 is to reduce both complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities differently. They also require entities to display the fair value of those assets and liabilities. The Company has chosen to use fair value on the face of the balance sheet. The Company does not believe that ASC Topic 825 will have a material impact on its financial statements.

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CASH BONUS PLAN

3 Months Ended

Jun. 24, 2011

CASH BONUS PLAN [Abstract]

CASH BONUS PLAN

Note 11 - CASH BONUS PLAN:

In 1987, the Company adopted a cash bonus plan (“Cash Bonus Plan”) for executive officers. Contributions to the Cash Bonus Plan are made by the Company only after pre-tax operating profits exceed $150,000 for a fiscal year, and then to the extent of 10% of the excess of the greater of $150,000 or 25% of pre-tax operating profits. The Company accrued $45,200 for the three months ended June 24, 2011. For the year ended March 25, 2011, the contribution was $173,000.

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Balance Sheet (USD $)	Jun. 24, 2011	Mar. 25, 2011
CURRENT ASSETS:
Cash	$ 538,964	$ 157,049
Accounts receivable, less allowances for doubtful accounts of $11,562 at June 24, 2011 and March 25, 2011	1,797,485	1,986,799
Inventories (Note 3)	3,929,800	3,713,372
Excess payments to accounts receivable factor (Note 6)	0	78,898
Prepaid expenses and other current assets (Note 4)	624,603	247,088
Total Current Assets	6,890,852	6,183,206
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation and amortization of $7,282,128 at June 24, 2011 and $7,244,628 at March 25, 2011 ( Note 5 )	1,293,240	1,268,890
Property plant and equipment - net	1,293,240	1,268,890
Other assets	27,887	27,887
Total non-current assets	27,887	27,887
Total Assets	8,211,979	7,479,983
CURRENT LIABILITIES:
Accounts payable	274,330	356,225
Accounts receivable financing (Note 6)	25,629	0
Accrued corporate income taxes	370,782	3,752
Workers compensation insurance assessments- current portion (Note 8)	47,638	47,638
Other current liabilities (Note 7)	449,952	364,465
Total Current Liabilities	1,168,331	772,080
LONG-TERM LIABILITIES:
Workers compensation insurance assessments- net of current portion (Note 8)	101,151	113,061
Total Long-Term Liabilities	101,151	113,061
Total Liabilities	1,269,482	885,141
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; 10,000,000 shares authorized; 2,303,468 shares issued and outstanding at June 24, 2011 and March 25, 2011	23,035	23,035
Capital in excess of par value	2,744,573	2,744,573
Retained earnings ( Note 9 )	4,174,889	3,827,234
Total Stockholders' Equity	6,942,497	6,594,842
Total Liabilities and Stockholders' Equity	$ 8,211,979	$ 7,479,983