COSTS INCURRED ON UNCOMPLETED CONTRACTS

9 Months Ended

Dec. 31, 2012

COSTS INCURRED ON UNCOMPLETED CONTRACTS

COSTS INCURRED ON UNCOMPLETED CONTRACTS

NOTE 4 - COSTS INCURRED ON UNCOMPLETED CONTRACTS

	December 31,  2012			March 31,  2012
Cost incurred on uncompleted contracts, beginning balance	$	10,879,743		$	7,958,153
Plus: Total cost incurred on contracts during the period	12,606,514			31,104,174
Less: cost of sales, during the period	(17,590,257		)	(28,182,584		)
Cost incurred on uncompleted contracts, ending balance	$	5,896,000		$	10,879,743
Billings on uncompleted contracts, beginning balance	$	6,969,717		$	5,104,301
Plus: Total billings incurred on contracts, during the period	16,542,765			35,132,194
Less: Contracts recognized as revenue, during the period	(22,518,168		)	(33,266,778		)
Billings on uncompleted contracts, ending balance	$	994,314		$	6,969,717
Cost incurred on uncompleted contracts, ending balance	$	5,896,000		$	10,879,743
Billing on uncompleted contracts, ending balance	(994,314		)	(6,969,717		)
Cost incurred on uncompleted contracts, in excess of progress billings	$	4,901,686		$	3,910,026

Contract costs consist primarily of labor and materials and related overhead, to the extent that such costs are recoverable. Revenues associated with these contracts are recorded only when the amount of recovery can be estimated reliably and realization is probable. As of December 31, 2012 and March 31, 2012, the Company had deferred revenues totaling $921,992 and $799,413, respectively. Deferred revenues represent customer prepayments on their contracts and completed contracts on which all revenue recognition criteria were not met.   The Company records provisions for losses within costs of sales in its consolidated statement of operations and comprehensive loss. The Company also receives advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The agreements with our customers allow the Company to offset the progress payments against the costs incurred.