Quarterly report pursuant to Section 13 or 15(d)

Sales, Contract Assets and Contract Liabilities

v3.20.4
Sales, Contract Assets and Contract Liabilities
9 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [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 unique to customers’ requirements. However, the Company’s performance obligations can generally be identified as:


Specified service works

  Certified design and engineering works

  Acceptance of delivered equipment to customers

  Acceptance of commissioned equipment

For the three and nine months ended December 31, 2020, and 2019, the Company’s recognized sales revenues in proportion to performance obligations as noted below:


    Three months
Ended
December 31,
2020
$
    Three months
Ended
December 31,
2019
$
 
             
Specified service works     397,572       -  
Certified design and engineering works     -       9,779,337  
Acceptance of delivered equipment to customers     1,994,601       19,273,700  
Acceptance of commissioned equipment     1,922,166       8,468,912  
Concentrated solar power contracts     344,127       -  
                 
Total     4,658,466       37,521,949  

    Nine months
Ended
December 31,
2020
$
    Nine months
Ended
December 31,
2019
$
 
             
Specified service works     817,618       381,338  
Certified design and engineering works     3,575,629       21,517,289  
Acceptance of delivered equipment to customers     21,498,217       69,697,153  
Acceptance of commissioned equipment     15,754,070       13,428,948  
Concentrated solar power contracts     483,358       -  
                 
Total     42,128,892       105,024,728  

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, 2019     12,237,825               (18,850,487 )
                         
Customer receipts and receivables     -       -       (134,841,354 )
Sales recognized in earnings     -       130,138,574       130,138,574  
Payments under contracts     90,932,669       -       -  
Costs recognized in earnings     (78,566,155 )     (78,556,155 )     -  
                         
Balance, March 31, 2020     24,604,339               (23,553,267 )
                         
Customer receipts and receivables     -       -       (35,018,290 )
Sales recognized in earnings     -       42,128,892       42,128,892  
Payments and accruals under contracts*     18,700,600       -       -  
Costs recognized in earnings     (25,515,248 )     (25,515,248 )     -  
                         
Balance, December 31, 2020     17,789,691               (16,442,665 )

* Payments and accruals under contracts include $7,433,663 presented as receivables which is subject to the fulfilment of future performance obligations.