2.	CHANGE IN ACCOUNTING PRINCIPLE

Effective

April 1, 2018,

the Company changed its method for valuing prime coil inventory of the coil segment from the last-in,

first

-out (“LIFO”) method to the average cost method. The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all prior periods presented in all sections of this annual report. The Company believes the average cost method is preferable as it more closely resembles the physical flow of our inventory, it better matches revenues with expenses and it aligns with how we internally manage our business. As a result of the retrospective application of the change in accounting principle, certain financial statement line items in the Company’s consolidated balance sheet as of

March 31, 2018,

its consolidated statement of operations for the year ended

March 31, 2018

and its consolidated statement of cash flows for the year ended

March 31, 2018

were adjusted as presented in the table below. In addition, retained earnings as of

April 1, 2017

increased

$4,346,437

as a result of the change in accounting principle.

	As Originally Reported			Effect of Change			As Adjusted
Consolidated Statement of Operations, Fiscal Year Ended March 31, 2018
Cost of goods sold		112,905,381			(1,697,294	)		111,208,087
Income tax provision		1,307,890			522,597			1,830,487
Net earnings		2,759,404			1,174,697			3,934,101

Net earnings per share:
Basic		0.39			0.17			0.56
Diluted		0.39			0.17			0.56

Consolidated Statement of Cash Flows, Fiscal Year Ended March 31, 2018
Net earnings		2,759,404			1,174,697			3,934,101
Change in inventories		(3,120,782	)		(1,697,294	)		(4,818,076	)
Change in deferred income taxes		1,269,148			108,483			1,377,631
Change in income taxes payable		-			414,114			414,114

Consolidated Balance Sheet, as of March 31, 2018
Inventories		38,039,332			7,290,102			45,329,434
Deferred income tax liability		103,198			1,768,968			1,872,166
Retained earnings		31,190,246			5,521,134			36,711,380

The following table shows the effect of the change in accounting principle from LIFO to average cost on the results of operations for the fiscal year ended

March 31, 2019:

	As Computed Under LIFO		As Computed Under Average Cost		Effect of Change
Consolidated Statement of Operations, Fiscal Year Ended March 31, 2019
Earnings before income taxes		5,706,951		6,823,945		1,116,994
Income tax provision		1,451,937		1,724,021		272,084
Net earnings		4,255,014		5,099,924		844,910

Net earnings per share:
Basic		0.61		0.73		0.12
Diluted		0.61		0.73		0.12