Customer Deposits

9 Months Ended

Jan. 31, 2012

Customer Deposits [Abstract]

Other Liabilities Disclosure [Text Block]

Customer Deposits

Torotel currently has one contract for the potted coil assembly that provides for milestone payments by the customer prior to the commencement of product deliveries. These payments are used to procure raw materials and to maintain a 500-piece finished goods buffer as requested by the customer.  These milestone payments are applied as discounts to invoices ratably over the course of the contract as invoices are paid. In accordance with our revenue recognition policy, Torotel recognizes revenue on this contract upon shipment of the product.  The remaining liability associated with the milestone payments as of dates shown  is summarized as follows:

	January 31, 2012		April 30, 2011
2011 contract	$	354,000	$	826,000
	$	354,000	$	826,000

This net amount is reflected as Customer Deposits under current liabilities in the accompanying consolidated condensed balance sheets.