Note C - Inventories

6 Months Ended

Sep. 30, 2019

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 average cost method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the average cost method. All inventories are valued at the lower of cost or net realizable value. At

September 30, 2019,

tubular finished goods inventory was written down

$955,605

to lower the carrying value to net realizable value.

A summary of inventory values by product group follows:

	September 30, 2019		March 31, 2019
Prime Coil Inventory	$	17,206,839	$	26,240,439
Non-Standard Coil Inventory		2,603,190		2,078,008
Tubular Raw Material		4,380,136		4,418,750
Tubular Finished Goods		11,902,798		16,324,889
	$	36,092,963	$	49,062,086

Tubular raw material inventory consists of hot-rolled steel coils that the Company will manufacture into pipe. Tubular finished goods inventory consists of pipe the Company has manufactured and new mill reject pipe that the Company purchases from U.S. Steel Tubular Products, Inc.