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Contract Assets
 12 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
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:

 

   2024   2023 
   As of March 31, 
   2024   2023 
   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   5,960,812    2,453,088 
Retainage included in contract assets due to being conditional on something other than solely passage of time   977,931    793,481 
Less: allowance for credit loss   (99,646)   (25,021)
Contract assets, net   6,839,097    3,221,548 
           
Contract assets, current   6,098,497    3,150,729 
Contract assets, non-current   740,600    70,819 

 

The movement of revenue recognized in excess of amounts paid or payable (excluding retainage) before net of allowance for credit loss is as follows:

 

   2024   2023 
   As of March 31, 
   2024   2023 
   USD   USD 
         
Balance at beginning of the year   2,453,088    389,927 
Increase as a result of total work completed during the period   27,572,692    21,868,220 
Decrease as a result of total amount billed out   (24,064,968)   (19,805,059)
Balance at end of the year   5,960,812    2,453,088 

 

The movement of retainage before net of allowance for credit loss is as follows:

 

   2024   2023 
   As of March 31, 
   2024   2023 
   USD   USD 
         
Balance at beginning of the year   793,481    390,214 
Increase as a result of changes in progress of ongoing projects   431,521    476,030 
Reclassified to accounts receivable as payment becomes unconditional   (247,071)   (72,763)
Balance at end of the year   977,931    793,481