| Contract Assets |
4.
Contract Assets
Projects
with performance obligations recognized over time that have revenue recognized to date in excess of cumulative billings are reported
on the Company’s consolidated balance sheets as “Contract assets”. Contract retentions, included in contract assets,
represent amounts withheld by clients, in accordance with underlying contract terms, until certain conditions are met or the project
is completed. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses
are determined. Contract assets that have billing terms with unconditional rights to be billed beyond one year are classified as non-current
assets.
Contract
assets consisted of the following as of March 31:
Schedule of Contract Assets
| | |
| | |
| |
| | |
As
of March 31, | |
| | |
2026 | | |
2025 | |
| | |
USD | | |
USD | |
| | |
| | |
| |
| Contract assets: | |
| | | |
| | |
| Revenue recognized in excess of
amounts paid or payable (contract receivable) to the Company on uncompleted contracts (contract asset) excluding retainage | |
| 707,969 | | |
| 5,494,391 | |
| Retainage included in contract assets due to
being conditional on something other than solely passage of time | |
| 1,284,159 | | |
| 2,096,843 | |
| Less: allowance for credit
loss | |
| (301,010 | ) | |
| (650,759 | ) |
| Contract assets, net | |
| 1,691,118 | | |
| 6,940,475 | |
| | |
| | | |
| | |
| Contract assets, current | |
| 1,691,118 | | |
| 5,304,061 | |
| Contract assets,
non-current | |
| - | | |
| 1,636,414 | |
The
movement of revenue recognized in excess of amounts paid or payable (excluding retainage) before net of allowance for credit loss is
as follows:
Schedule of Movement of Revenue Recognized in Excess of Amounts Payable
| | |
| | |
| |
| | |
As
of March 31, | |
| | |
2026 | | |
2025 | |
| | |
USD | | |
USD | |
| | |
| | |
| |
| Balance at beginning of the year | |
| 5,494,391 | | |
| 5,960,812 | |
| Increase as a result of total work completed
during the year | |
| 11,018,290 | | |
| 33,851,041 | |
| Decrease as a result of
total amount billed out | |
| (15,804,712 | ) | |
| (34,317,462 | ) |
| Balance at end of the
year | |
| 707,969 | | |
| 5,494,391 | |
The
movement of retainage before net of allowance for credit loss is as follows:
Schedule of Movement of Retainage Before Net of Allowance for Credit Loss
| | |
| | |
| |
| | |
As
of March 31, | |
| | |
2026 | | |
2025 | |
| | |
USD | | |
USD | |
| | |
| | |
| |
| Balance at beginning of the year | |
| 2,096,843 | | |
| 977,931 | |
| Increase as a result of changes in progress
of ongoing projects | |
| 191,944 | | |
| 1,145,165 | |
| Reclassified to accounts
receivable as payment becomes unconditional | |
| (1,004,628 | ) | |
| (26,253 | ) |
| Balance at end of the
year | |
| 1,284,159 | | |
| 2,096,843 | |
The
movement of allowance for loss accounts are as follows:
Schedule of
Movement of Allowance for Loss Account
| | |
| | |
| |
| | |
As
of March 31, | |
| | |
2026 | | |
2025 | |
| | |
USD | | |
USD | |
| | |
| | |
| |
| Balance at beginning of the year | |
| 650,759 | | |
| 99,646 | |
| (Reversal) addition during
the year | |
| (349,749 | ) | |
| 551,113 | |
| Balance at end of the
year | |
| 301,010 | | |
| 650,759 | |
|