Note C - Inventories

6 Months Ended

Sep. 30, 2016

NOTE C — INVENTORIES

Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of raw materials and tubular inventory consists of both raw materials and finished goods. Cost for prime coil inventory is determined using the last-in, first-out (“LIFO”) method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. LIFO inventories are valued at the lower of cost or market. All other inventories are valued at the lower of cost or net realizable value. During the quarter ended September 30, 2016, LIFO inventories were liquidated. The Company anticipates partial replacement of LIFO inventories by March 31, 2017 and has recorded a deferred debit of $236,687 to reflect the difference between estimated replacement cost and LIFO cost.

A summary of inventory values by product group follows:

	September 30, 2016		March 31, 2016
Prime Coil Inventory	$	7,861,254	$	14,168,626
Non-Standard Coil Inventory		1,191,310		992,163
Tubular Raw Material		1,258,110		1,566,048
Tubular Finished Goods		23,740,730		25,212,291
	$	34,051,404	$	41,939,128