Sales, Contract Assets and Contract Liabilities

9 Months Ended

Dec. 31, 2019

Sales, Contract Assets and Contract Liabilities [Abstract]

Sales, Contract Assets and Contract Liabilities

9. Sales, Contract Assets and Contract Liabilities

The Company has analyzed its sales contracts under ASC 606 and has identified performance conditions that are not directly correlated with contractual payment terms with customer. As a result of the timing differences between customer payments and satisfaction of performance conditions, contractual assets and contractual liabilities have been recognized.

Contracts are tailored to meet each customer's unique requirements. However, the Company's performance obligations can generally be identified as:

● Specified service works

● Certified design and engineering works

● Equipment delivery and acceptance

● Installation and commissioning

For the three and nine months ended December 31, 2019, the Company recognized sales revenues in proportion to performance obligations as noted below:

	Three Months Ended December 31, 2019 $		Nine Months Ended December 31, 2019 $
Specified service works		-		381,338
Certified design and engineering works		9,779,337		21,517,289
Delivered equipment to customers, net of obligations		19,273,700		69,697,153
Installed and commissioned equipment		8,468,912		13,428,9487
Total		37,521,949		105,024,728

There were no revenues for the comparative periods ended December 31, 2018.

Changes in the Company's contract assets and liabilities for the periods are noted as below:

	Contract Assets $			Sales (Cost of sales) $			Contract Liabilities $
Balance, March 31, 2018		–			–			–
Customer receipts and receivables		–			–			(20,925,437	)
Sales recognized in earnings		–			2,074,950			2,074,950
Payments and accruals under contracts		14,172,975			–			–
Costs recognized in earnings		(1,935,150	)		(1,935,150	)		–
Balance, March 31, 2019		12,237,825						(18,850,487	)
Customer receipts and receivables		–			–			(113,778,605	)
Sales recognized in earnings		–			105,024,728			105,024,728
Payments and accruals under contracts*		72,854,661			–			–
Costs recognized in earnings		(63,067,989	)		(63,067,989	)		–
Balance, December 31, 2019		22,024,497						(27,604,364	)

* Payments and accruals under contracts includes $11,433,348 presented as receivables which is subject to the fulfillment of future performance obligations.