COSTS INCURRED ON UNCOMPLETED CONTRACTS

12 Months Ended

Mar. 31, 2014

COSTS INCURRED ON UNCOMPLETED CONTRACTS

COSTS INCURRED ON UNCOMPLETED CONTRACTS

NOTE 4 - COSTS INCURRED ON UNCOMPLETED CONTRACTS

The following table sets forth information as to costs incurred on uncompleted contracts as of March 31:

	2014			2013
Cost incurred on uncompleted contracts, beginning balance	$	6,180,839		$	10,879,743
Total cost incurred on contracts during the year	25,579,089			21,215,441
Less cost of sales, during the year	(21,799,856		)	(25,914,345		)
Cost incurred on uncompleted contracts, ending balance	$	9,960,072		$	6,180,839
Billings on uncompleted contracts, beginning balance	$	1,882,546		$	6,969,717
Plus: Total billings incurred on contracts, during the year	23,887,587			27,385,748
Less: Contracts recognized as revenue, during the year	(21,068,063		)	(32,472,919		)
Billings on uncompleted contracts, ending balance	$	4,702,070		$	1,882,546
Cost incurred on uncompleted contracts, ending balance	$	9,960,072		$	6,180,839
Billings on uncompleted contracts, ending balance	4,702,070			1,882,546
Costs incurred on uncompleted contracts, in excess of progress billings	$	5,258,002		$	4,298,293

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 March 31, 2014 and 2013, we had deferred revenues totaling $1,461,689 and $253,813, respectively. Deferred revenues represent customer prepayments on their contracts and completed contracts on which all revenue recognition criteria were not met.   We record provisions for losses within costs of sales in our consolidated statement of operations and comprehensive (loss) income. We also receive advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The agreements with our customers allow us to offset the progress payments against the costs incurred.