Document and Entity Information
Document and Entity Information | 9 Months Ended |
Dec. 31, 2015 | |
Document And Entity Information | |
Entity Registrant Name | DUO WORLD INC |
Entity Central Index Key | 1,635,136 |
Document Type | S1 |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Filer Category | Smaller Reporting Company |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Current Assets | ||||
Cash and cash equivalents | $ 69,583 | $ 10,530 | $ 9,763 | $ 36,366 |
Accounts receivable - trade | 553,957 | 568,768 | 696,485 | |
Prepaid expenses and other current assets | 225,176 | 399,168 | 288,559 | |
Accrued Revenue | 55,258 | 58,210 | 148,571 | |
Total current assets | 903,974 | 1,036,676 | 1,143,378 | |
Non Current Assets | ||||
Property and equipment, net of accumulated depreciation of $ 611,285 and $ 591,782, $631,345 and $637,680,$ 611,285 respectively | 110,640 | 90,637 | 88,010 | |
Intangible assets | 353,423 | 327,542 | 341,651 | |
Deferred taxes | 10,665 | 11,337 | 13,492 | |
Total non current assets | 474,728 | 429,516 | 443,153 | |
Total Assets | 1,378,702 | 1,466,192 | 1,586,531 | |
Current Liabilities | ||||
Accounts payable | 377,241 | 233,875 | $ 361,042 | |
Short Term Borrowings | 165,459 | 164,589 | ||
Payroll, employee benefits, severance | 84,176 | 8,752 | $ 94,092 | |
Due to related parties | 151,263 | 139,387 | $ 196,282 | |
Payable for acquisition | 185,762 | 310,000 | ||
Taxes payable | 36,408 | 68,671 | $ 116,401 | |
Accruals and other payables | 88,676 | 72,586 | 123,561 | |
Deferred revenue | 16,879 | 26,892 | 125,290 | |
Total current liabilities | 1,105,864 | 1,024,752 | 1,016,668 | |
Long Term Liabilities | ||||
Due to related parties | 1,173,732 | 1,232,029 | 1,265,018 | |
Total Long Term liabilities | 1,173,732 | 1,232,029 | 1,265,018 | |
Total liabilities | 2,279,596 | 2,256,781 | 2,281,686 | |
Shareholders' Deficit | ||||
Ordinary shares: $0.001 par value per share; 90,000,000 shares authorized; 34,600,000 shares issued and outstanding, respectively | 38,060 | 34,600 | 397,953 | |
Additional paid in capital | 601,560 | 259,020 | 74,197 | |
Accumulated deficit | (1,649,294) | (1,173,518) | (1,188,485) | |
Accumulated other comprehensive income / (loss) | 103,280 | 84,309 | 21,180 | |
Total shareholders’ equity (deficit) | (900,894) | (790,589) | (695,155) | (800,498) |
Total Liabilities and Shareholders’ Deficit | 1,378,702 | 1,466,192 | $ 1,586,531 | |
Convertible Series A Preferred Shares [Member] | ||||
Shareholders' Deficit | ||||
Convertible series “A” preferred shares: $0.001 par value per share; 10,000,000 shares authorized; 5,000,000 shares issued and outstanding, respectively | $ 5,500 | $ 5,000 | ||
Duo Software (Pvt.) Limited [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | $ 9,763 | 36,366 | ||
Accounts receivable - trade | 696,485 | 642,191 | ||
Prepaid expenses and other current assets | 288,559 | 295,822 | ||
Accrued Revenue | 148,571 | 105,505 | ||
Total current assets | 1,143,378 | 1,079,884 | ||
Non Current Assets | ||||
Property and equipment, net of accumulated depreciation of $ 611,285 and $ 591,782, $631,345 and $637,680,$ 611,285 respectively | 88,010 | 68,013 | ||
Product development cost | 341,651 | 346,123 | ||
Deferred taxes | 13,492 | 6,055 | ||
Total non current assets | 443,153 | 420,191 | ||
Total Assets | 1,586,531 | 1,500,075 | ||
Current Liabilities | ||||
Accounts payable | 361,042 | 337,612 | ||
Payroll, employee benefits, severance | 94,092 | 131,237 | ||
Due to related parties | 196,282 | 185,533 | ||
Taxes payable | 116,401 | 120,815 | ||
Accruals and other payables | 123,561 | 170,369 | ||
Deferred revenue | 125,290 | 74,737 | ||
Total current liabilities | 1,016,668 | 1,020,303 | ||
Long Term Liabilities | ||||
Due to related parties | 1,265,018 | 1,280,270 | ||
Total Long Term liabilities | 1,265,018 | 1,280,270 | ||
Total liabilities | 2,281,686 | 2,300,573 | ||
Shareholders' Deficit | ||||
Share Capital | 397,953 | 397,953 | ||
Additional paid in capital | 74,197 | 74,197 | ||
Accumulated deficit | (1,188,485) | (1,275,109) | ||
Accumulated other comprehensive income / (loss) | 21,180 | 2,461 | ||
Total shareholders’ equity (deficit) | (695,155) | (800,498) | ||
Total Liabilities and Shareholders’ Deficit | $ 1,586,531 | $ 1,500,075 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Property and equipment, net accumulated depreciation | $ 631,345 | $ 637,680 | $ 611,285 | |
Ordinary stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Ordinary stock, shares authorized | 90,000,000 | 90,000,000 | 90,000,000 | |
Ordinary stock, shares issued | 38,060,000 | 34,600,000 | 34,600,000 | |
Ordinary stock, shares outstanding | 38,060,000 | 34,600,000 | 34,600,000 | |
Convertible Series A Preferred Shares [Member] | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | 5,500,000 | 5,000,000 | 5,000,000 | |
Preferred stock, shares outstanding | 5,500,000 | 5,000,000 | 5,000,000 | |
Duo Software (Pvt.) Limited [Member] | ||||
Property and equipment, net accumulated depreciation | $ 611,285 | $ 591,782 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Revenue | $ 351,183 | $ 358,145 | $ 1,019,314 | $ 1,195,889 | $ 1,575,941 | $ 1,330,672 | |
Cost of sales/ revenue (exclusive of depreciation presented below) | (141,355) | (132,820) | (310,866) | (308,058) | (393,171) | (450,347) | |
Gross Income | 209,827 | 225,325 | 708,448 | 887,831 | 1,182,770 | 880,325 | |
Operating Expenses | |||||||
Research and development | 6,866 | 15,768 | 52,169 | 79,183 | 91,443 | 65,017 | |
General and administrative | 156,893 | 317,280 | 807,987 | 522,367 | 664,492 | 273,816 | |
Salaries and benefits | 88,239 | 59,908 | 274,927 | 180,028 | 240,951 | 176,749 | |
Selling and distribution | 13,503 | 7,617 | 28,856 | 35,203 | 27,651 | 61,692 | |
Depreciation | 9,107 | 7,984 | 25,893 | 23,917 | 30,273 | 35,094 | |
Amortization of web site development | $ 200 | $ 430 | $ 937 | $ 1,296 | 1,674 | 1,720 | |
Allowance for bad debts | 25,853 | 141,279 | |||||
Total operating expenses | $ 274,809 | $ 408,987 | $ 1,190,769 | $ 841,994 | 1,082,337 | 755,367 | |
Income / (loss) before other income (expenses) | $ (64,982) | $ (183,662) | $ (482,321) | 45,836 | 100,433 | 124,958 | |
Other income (expenses): | |||||||
Gain / (loss) on disposals | 280 | 271 | $ (26) | ||||
Other income | $ 3,155 | $ 15,669 | $ (9) | 15,671 | 17,452 | ||
Bank charges | $ (834) | $ (673) | (1,759) | $ (1,383) | $ (1,812) | $ (1,936) | |
Debit tax charges | (16) | ||||||
Gain on debt extinguishment | 16,331 | ||||||
Exchange gain / (loss) | $ 11,106 | $ (2,050) | 17,899 | $ (750) | $ (2,698) | (5,948) | |
Interest on loan | (7,980) | (3,582) | (24,274) | (16,219) | (34,823) | (15,407) | |
Total other income and (expenses) | 5,447 | 9,364 | 8,189 | (2,401) | (21,611) | (23,333) | |
Income / (loss) before provision for income taxes: | (59,535) | (174,298) | (474,131) | 43,435 | 78,823 | 101,625 | |
Provision for income taxes | (532) | (1,289) | (1,644) | (3,886) | (3,004) | 1,753 | |
Net Income (Loss) | $ (60,067) | $ (175,587) | $ (475,776) | $ 39,549 | $ 75,819 | $ 103,378 | $ (113,717) |
Basic and Diluted Earnings per Share | $ (0.002) | $ (0.005) | $ (0.013) | $ 0.001 | $ 0.006 | $ 0.008 | |
Basic and Diluted Weighted Average Number of Shares Outstanding | 38,060,000 | 38,060,000 | 37,707,709 | 37,707,709 | 12,863,397 | 12,863,397 | |
Other Comprehensive income (loss): | |||||||
Unrealized foreign currency translation gain (loss) | $ (6,246) | $ 237 | $ 18,971 | $ 7,109 | $ 63,129 | $ 18,720 | |
Net Income (Loss) | (60,067) | (175,587) | (475,776) | 39,549 | 75,819 | 103,378 | (113,717) |
Comprehensive income (loss) | $ (66,313) | $ (175,350) | $ (456,804) | $ 46,657 | $ 138,948 | 122,098 | |
Duo Software (Pvt.) Limited [Member] | |||||||
Revenue | 1,330,672 | 1,059,067 | |||||
Cost of sales/ revenue (exclusive of depreciation presented below) | (450,347) | (491,797) | |||||
Gross Income | 880,325 | 567,270 | |||||
Operating Expenses | |||||||
Research and development | 65,017 | 52,452 | |||||
General and administrative | 273,816 | 432,730 | |||||
Salaries and benefits | 176,749 | 144,338 | |||||
Selling and distribution | 61,692 | 41,398 | |||||
Depreciation | 35,094 | 39,773 | |||||
Amortization of web site development | 1,720 | $ 2,839 | |||||
Allowance for bad debts | 141,279 | ||||||
Total operating expenses | 755,367 | $ 713,530 | |||||
Income / (loss) before other income (expenses) | 124,958 | $ (146,260) | |||||
Other income (expenses): | |||||||
Gain / (loss) on disposals | (26) | ||||||
Bank charges | (1,936) | $ (2,033) | |||||
Debit tax charges | (16) | (2) | |||||
Exchange gain / (loss) | (5,948) | $ 21,800 | |||||
Interest on loan | $ (15,407) | ||||||
Accounts written off | $ 15,248 | ||||||
Total other income and (expenses) | $ (23,333) | 35,013 | |||||
Income / (loss) before provision for income taxes: | 101,625 | (111,247) | |||||
Provision for income taxes | 1,753 | (2,471) | |||||
Net Income (Loss) | 103,378 | (113,717) | |||||
Other Comprehensive income (loss): | |||||||
Unrealized foreign currency translation gain (loss) | 18,720 | (49,501) | |||||
Net Income (Loss) | 103,378 | (113,717) | |||||
Comprehensive income (loss) | $ 122,098 | $ (163,218) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders’ Equity - USD ($) | Duo Software (Pvt.) Limited [Member] | Duo Software Pte Ltd [Member] | Share Capital [Member] | Preferred Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other than Comprehensive Income (Loss)/Income | Total |
Balance at Mar. 31, 2012 | $ 397,953 | $ (1,124,315) | $ 51,962 | $ (674,400) | ||||
Balance, shares at Mar. 31, 2012 | 5,000,000 | 10,000 | ||||||
Net (loss) income | (113,717) | (113,717) | ||||||
Other comprehensive (loss) income | (49,501) | (49,501) | ||||||
Prior year adjustments | (37,078) | (37,078) | ||||||
Imputed interest on long term related party loan | $ 74,197 | 74,197 | ||||||
Balance at Mar. 31, 2013 | 397,953 | 74,197 | (1,275,109) | 2,461 | (800,498) | |||
Balance, shares at Mar. 31, 2013 | 5,000,000 | 10,000 | ||||||
Net (loss) income | 103,378 | 103,378 | ||||||
Other comprehensive (loss) income | 18,720 | 18,720 | ||||||
Prior year adjustments | (16,753) | (16,753) | ||||||
Balance at Mar. 31, 2014 | 397,953 | 74,197 | (1,188,485) | 21,180 | (695,155) | |||
Balance, shares at Mar. 31, 2014 | 5,000,000 | 10,000 | ||||||
Net (loss) income | 75,819 | 75,819 | ||||||
Other comprehensive (loss) income | 63,129 | 63,129 | ||||||
Prior year adjustments | (58,540) | (58,540) | ||||||
Common Stock sold | (397,953) | (380,577) | (778,530) | |||||
Stock Subscribed | 34,600 | $ 5,000 | 565,400 | 605,000 | ||||
Dividend distribution | (2,312) | (2,312) | ||||||
Balance at Mar. 31, 2015 | $ 34,600 | $ 5,000 | $ 259,020 | $ (1,173,518) | $ 84,309 | (790,589) | ||
Balance, shares at Mar. 31, 2015 | 34,600,000 | 5,000,000 | ||||||
Net (loss) income | (475,776) | |||||||
Balance at Dec. 31, 2015 | $ (900,894) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Operating activities: | |||||
Net income (loss) before provision for income taxes | $ (474,131) | $ 43,435 | $ 78,823 | $ 101,625 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||
Depreciation | $ 23,917 | $ 25,213 | 31,948 | 36,814 | |
Allowance for bad debts | 25,853 | 141,279 | |||
Loss on disposals | (271) | 26 | |||
Interest on related party loan | 13,969 | 15,407 | |||
Product development cost written off | $ 139,323 | $ 154,693 | 200,972 | 234,139 | |
Prior year adjustments | (58,540) | (16,753) | $ (37,078) | ||
Changes in assets and liabilities: | |||||
Accounts receivable - trade | 14,811 | (21,224) | 101,864 | (195,573) | |
Prepayments | 173,992 | $ (58,571) | (20,248) | (35,803) | |
Accrued revenue | 2,952 | ||||
Accounts payable | 143,366 | $ 207,054 | (127,167) | 23,430 | |
Payroll, employee benefits, severance | 75,424 | $ (23,547) | (85,340) | $ (37,145) | |
Short term overdraft - Pan Asia Bank | 870 | 164,589 | |||
Due to relates parties | 11,876 | $ 236,245 | (56,895) | $ 10,749 | |
Taxes payable | (50,734) | $ (2,661) | |||
Payable for acquisition | (124,238) | 310,000 | 310,000 | ||
Accruals and other payables | 16,090 | (165,892) | (149,374) | $ 3,746 | |
Deferred taxes | (33,235) | $ (65,223) | 2,155 | (7,437) | |
Deferred revenue | (10,013) | ||||
Net cash provided by operating activities | (38,997) | $ 642,182 | 381,604 | 271,843 | |
Investing activities: | |||||
Acquisition of property and equipment | (43,920) | (26,259) | (38,308) | (59,294) | |
Sale proceeds on disposal of property and equipment | 4,004 | 229 | |||
Intangible asset | (189,174) | (143,118) | (190,210) | (239,770) | |
Net cash used in investing activities | (233,094) | (169,377) | (224,514) | $ (298,835) | |
Financing activities: | |||||
Long term - Due to related parties | (58,297) | (17,416) | (46,958) | ||
Common Stock | 3,460 | (364,353) | (363,353) | ||
Preferred Stock | 500 | 5,000 | 5,000 | ||
Additional Paid in Capital | 342,540 | (64,177) | 184,823 | ||
Dividend paid | (2,312) | ||||
Net cash provided by (used in) financing activities | 288,203 | (440,946) | (222,800) | ||
Effect of exchange rate changes on cash | 42,941 | 35,597 | 66,477 | $ 389 | |
Net increase (decrease) in cash | 59,053 | 67,456 | 767 | (26,604) | |
Cash, beginning of year | 10,530 | 9,763 | 9,763 | 36,366 | |
Cash, end of year | $ 69,583 | 77,219 | 10,530 | 9,763 | 36,366 |
Duo Software (Pvt.) Limited [Member] | |||||
Operating activities: | |||||
Net income (loss) before provision for income taxes | 101,625 | (111,247) | |||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||
Depreciation | 36,814 | $ 42,612 | |||
Allowance for bad debts | $ 141,279 | ||||
Accounts written off | $ (15,248) | ||||
Loss on disposals | $ 26 | ||||
Interest on related party loan | 15,407 | ||||
Product development cost written off | 234,139 | $ 327,298 | |||
Prior year adjustments | (16,753) | (37,078) | |||
Changes in assets and liabilities: | |||||
Accounts receivable - trade | (195,573) | (40,197) | |||
Prepayments | (35,803) | (108,245) | |||
Accounts payable | 23,430 | 49,515 | |||
Payroll, employee benefits, severance | (37,145) | (50,259) | |||
Due to relates parties | 10,749 | 74,873 | |||
Taxes payable | (2,661) | 21,488 | |||
Accruals and other payables | 3,745 | 137,342 | |||
Deferred taxes | (7,437) | 284 | |||
Net cash provided by operating activities | 271,842 | 291,138 | |||
Investing activities: | |||||
Acquisition of property and equipment | (59,294) | $ (14,301) | |||
Sale proceeds on disposal of property and equipment | 229 | ||||
Product development | (239,770) | $ (260,332) | |||
Net cash used in investing activities | $ (298,835) | $ (274,633) | |||
Financing activities: | |||||
Long term - Due to related parties | |||||
Net cash provided by (used in) financing activities | |||||
Effect of exchange rate changes on cash | $ 389 | $ (47,238) | |||
Net increase (decrease) in cash | (26,604) | (30,733) | |||
Cash, beginning of year | $ 9,763 | $ 9,763 | 36,366 | 67,098 | |
Cash, end of year | $ 9,763 | 36,366 | |||
Supplemental disclosure of cash flow information: | |||||
Imputed interest recognized in additional paid in capital | $ 74,197 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as Successor or Duo) a private company, was organized under the laws of the state of Nevada on September 19, 2014. Duo Software (Pvt.) Limited (hereinafter referred to as DSSL or Predecessor), a Sri Lanka based company, was incorporated on 22nd September 2004, in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited (hereinafter referred to as DSS or Predecessor), a Singapore based company, was incorporated on 5th June 2007 in the Republic of Singapore as a limited liability company. DSS also includes its wholly owned subsidiary, Duo Software India (Private) Limited (India) which was incorporated on 30th August 2007, under the laws of India. On November 12, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). See Note 4. Duo (Successor) is a holding company that conducts operations through its wholly owned subsidiaries DSSL and DSS (Predecessors) in Sri Lanka, Singapore and India. The consolidated entity is referred to as the Company. The Company, having its development center in Colombo, has been in the space of developing products and services for the subscription-based industry. The Companys application (Duo Subscribe & Duo Contact) runs on its core platform Duo World and is a provider of solutions for its customers for Customer Life Cycle Management, Subscriber Management, Customer Care, Billing and Contact Center Management. | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as Successor or Duo) a private company, was organized under the laws of the state of Nevada on September 19, 2014.Duo Software (Pvt.) Limited (hereinafter referred to as DSSL or Predecessor), a Sri Lanka based company, was incorporated on 22nd September 2004, in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited (hereinafter referred to as DSS or Predecessor), a Singapore based company, was incorporated on 5th June 2007 in the Republic of Singapore as a limited liability company. DSS also includes its wholly-owned subsidiary, Duo Software India (Private) Limited (India) which was incorporated on 30th August 2007, under the laws of India. On November 12, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). See Note 4. Duo (Successor) is a holding company that conducts operations through its wholly owned subsidiaries DSSL and DSS (Predecessors) in Sri Lanka, Singapore and India. The consolidated entity is referred to as the Company. The Company, having its development center in Colombo, has been in the space of developing products and services for the subscription based industry. The Companys application (Duo Subscribe & Duo Contact) runs on its core platform Duo World and is a provider of solutions for its customers for Customer Life Cycle Management, Subscriber Management, Customer Care, Billing and Contact Center Management. | |
Duo Software (Pvt.) Limited [Member] | |||
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo Software (Pvt.) Limited (hereinafter referred to as Duo), a Sri Lanka based company, was incorporated on 22nd September 2004, in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited(hereinafter referred to as Related Entity), a Singapore based company, was incorporated on 5th June 2007 in the Republic of Singapore as a limited liability company. The related entity also includes its wholly-owned subsidiary, Duo Software India (Private) Limited (India) which was incorporated on 30th August 2007, under the laws of India. Duo and its related entity have a common sole shareholder and it conductsits operations primarily in Sri Lankaand also hasits presence in Singapore and India through the related entity. The combined entity is referred to as the Company. The Company, having its development center in Colombo, has been in the space of developing products and services for the subscription based industry. The Companys application (Duo Subscribe & Duo Contact) runs on its core platform Duo World and is a provider of solutions for its customers for Customer Life Cycle Management, Subscriber Management, Customer Care, Billing and Contact Center Management. |
Basis of Presentation
Basis of Presentation | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Basis of Presentation | Note 2 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and disclosures necessary for a comprehensive presentation of consolidated financial position, results of operations, or cash flows. It is managements opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair consolidated financial statements presentation. The unaudited interim consolidated financial statements should be read in conjunction with the Companys Annual Report, which contains the audited consolidated financial statements and notes thereto, together with the Managements Discussion and Analysis, for the year ended March 31, 2015. The interim results for the period ended December 31, 2015 are not necessarily indicative of results for the full fiscal year. | Note 2 - Basis of Presentation The Company has prepared the accompanying consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP).All amounts in the consolidated financial statements are stated in U.S. dollars. | |
Duo Software (Pvt.) Limited [Member] | |||
Basis of Presentation | Note 2 - Basis of Presentation The Company has prepared the accompanying combined financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP).All amounts in the combined financial statements are stated in U.S. dollars. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Significant Accounting Policies | Note 3 - Summary of Significant Accounting Policies Basis of Consolidation Duo World Inc. is the parent company of its 100% subsidiaries Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS). Duo Software Pte. Limited is the parent company of its 100% subsidiary Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-confirming events. Accordingly, the actual results could differ from those estimates. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. Risks and Uncertainties The Companys operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Companys sales are primarily to the companies located in Sri Lanka, Singapore Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies understated contract terms. Provisions A provision is recognized when the company has present obligations because of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and have strong policies and procedures for the collection receivables from its clients. However, there are inevitably occasions when the receivables due to the company, cannot be collected and therefore has to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is therefore made against the outstanding receivable to reflect that component that may not become collectable. The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Provision Trade receivables outstanding: Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2015 and March 31, 2015, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Companys foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders deficit as accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income / (loss) as other income (expense). Fixed assets Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 5 years Website development 5 years Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Revenue Recognition, Deferred& Accrued Revenue The Company recognizes revenue from the sales of software licenses and related services in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally, when all of the following criteria are met: ● Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. ● Delivery has occurred or services have been performed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. The Company uses written evidence of customer acceptance to verify delivery or completion of any performance terms. ● The sellers price to the buyer is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customers payment history, economic conditions in the customers industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. The Company typically licenses its products on a per server, per user basis with the price per customer varying based on the selection of the products licensed, the number of site installations and the number of authorized users. Currently, Duo is offering two major products from which it generates its revenue they are Duo Contact & Duo Subscribe. In the case of Duo Contact, Duo offers license to use software to its clients under an agreement. Invoices are raised monthly over the term of agreement. Then it recognizes revenue monthly over the term of the underlying arrangement. In the case of Duo Subscribe, Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis as defined in the agreement. Then it recognizes revenue based on stage of completion basis. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Companys software products. Maintenance fees are bundled with license fees in the initial licensing period and charged separately for renewals of annual maintenance in subsequent years. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the three and nine months ended December 31, 2015 and 2014, the Company received only cash as consideration for sale of licenses and related services rendered. At December 31, 2015 and March 31, 2015, the Company had following concentrations of accounts receivables with customers: Customer December 31, 2015 March 31, 2015 Megamedia 35.99 % 39.34 % Digicable 23.95 % 28.61 % Hutchison 2.51 % 5.83 % Dish Media 4.48 % 3.82 % Mediatama 1.68 % 3.69 % Fastway 5.61 % 3.48 % Technosat 3.00 % 2.89 % DEN Networks 2.06 % 2.66 % Topas 4.37 % 2.64 % PT Global 4.31 % 1.84 % Other misc. receivables 12.04 % 5.20 % 100.00 % 100.00 % For the three months ended December 31, 2015 and 2014, the Company had following concentrations of revenues with customers: Customer December 31, 2015 December 31, 2014 Megamedia 31.89 % 22.07 % DEN Networks 26.38 % 22.18 % Hutchison 13.66 % 13.81 % Topas TV 7.86 % 1.60 % Mediatama 4.70 % 9.98 % Dish Media 6.20 % 5.98 % HelloCorp 3.35 % 3.50 % Medianet 1.49 % - DigiCable - 11.78 % Other misc. customers 4.46 % 9.10 % 100.00 % 100.00 % Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - Cost of Revenue Cost of revenue mainly includes product implementation costs related to the products offered by Duo. These costs include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses. The aggregate cost related to the software licenses implementations including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Companys development and technical support staff, contractors fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within Intangibles assets in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the three months ending on December 31, 2015 and 2014, product research and development cost of $78,592 and $49,191 respectively, was capitalized as Intangible assets. Advertising Costs The Company expenses advertising costs as incurred. The amount expensed during the three months ended December 31, 2015 and 2014 was $587 and $596, respectively and is included in selling and distribution expense in the accompanying consolidated statements of operations. Comprehensive Income (Loss) The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income (loss) from April 1, 2014 through December 31, 2014 and from April 1, 2015 through December 31, 2015, includes only foreign currency translation gains (losses), and is presented in the Companys consolidated statements of comprehensive income (loss). Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on December 31, 2015 and March 31, 2014 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2014 $ 21,180 Translation rate gain 63,129 Balance, March 31, 2015 $ 84,309 Translation rate gain 18,971 Balance, December 31, 2015 $ 103,280 Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of December 31, 2015 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Companys financial position or results of operations. | Note 3 - Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated Financial Statements include the accounts and transactions of DSSL and DSS (Predecessors) and Duo (Successor).Duo World Inc. is the parent company of its 100% subsidiaries Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS). Duo Software Pte. Limited is the parent company of its 100% subsidiary Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. Year end Fiscal year of the Company begins on April 1 and ends on March 31. Use of Estimates The preparation of consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non confirming events. Accordingly, the actual results could differ from those estimates. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. Risks and Uncertainties The Companys operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Companys sales are primarily to the companies located in Sri Lanka, Singapore Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies understated contract terms. Provisions A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and have strong policies and procedures for the collection receivables from its clients. However, there are inevitably occasions when the receivables due to the company, cannot be collected and therefore has to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is therefore made against the outstanding receivable to reflect that component that may not become collectable. The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Provision Trade receivables outstanding: Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of March 31, 2015 and 2014, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Companys foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders deficit as accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income /(loss) as other income (expense). Fixed assets Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 5 years Website development 5 years Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Revenue Recognition, Deferred& Accrued Revenue The Company recognizes revenue from the sales of software licenses and related services in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally when all of the following criteria are met: ● Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. ● Delivery has occurred or services have been performed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. The Company uses written evidence of customer acceptance to verify delivery or completion of any performance terms. ● The sellers price to the buyer is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customers payment history, economic conditions in the customers industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. The Company typically licenses its products on a per server, per user basis with the price per customer varying based on the selection of the products licensed, the number of site installations and the number of authorized users. Currently, Duo is offering two major products from which it generates its revenue they are Duo Contact & Duo Subscribe. In the case of Duo Contact, Duo offers license to use software to its clients under an agreement. Invoices are raised monthly over the term of agreement. Then it recognizes revenue monthly over the term of the underlying arrangement. In the case of Duo Subscribe, Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis as defined in the agreement. Then it recognizes revenue on the basis of stage of completion basis. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Companys software products. Maintenance fees are bundled with license fees in the initial licensing period and charged separately for renewals of annual maintenance in subsequent years. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the years ended March 31, 2015 and 2014, the Company received only cash as consideration for sale of licenses and related services rendered. At March 31, 2015 and 2014, the Company had following concentrations of accounts receivables with customers: Customer 31-Mar-15 31-Mar-14 Megamedia 39.34 % 36.73 % Digicable 28.61 % 8.74 % Hutchison 5.83 % 4.74 % Dish Media 3.82 % 2.86 % Mediatama 3.69 % 12.11 % Fastway 3.48 % 8.00 % Technosat 2.89 % 3.01 % DEN Networks 2.66 % 14.36 % Topas 2.64 % 0.00 % Pentavision 1.84 % 3.53 % Other 11 receivables 5.20 % 5.91 % 100.00 % 100.00 % For the years ended March 31, 2015 and 2014, the Company had following concentrations of revenues with customers: Customer March 31, 2015 March 31, 2014 Megamedia 29.49 % 23.46 % DEN Networks 21.31 % 19.23 % Hutchison 12.53 % 14.10 % Mediatama 5.50 % 11.01 % Digicable 6.91 % 10.20 % Dish Media 8.61 % 5.27 % HelloCorp 3.14 % 3.51 % Fastway (DSI) 0.00 % 2.24 % Topas TV 1.90 % 0.00 % Other Misc. customers 10.62 % 10.99 % 100.00 % 100.00 % Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - Cost of Revenue Cost of revenue mainly includes product implementation costs related to the products offered by Duo. These costs include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses. The aggregate cost related to the software licenses implementations including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Companys development and technical support staff, contractors fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within Intangibles assets in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the years ending on March 31, 2015 and 2014, product research and development cost of $190,210 and $239,770, respectively, was capitalized as Intangible assets. Advertising Costs The Company expenses advertising costs as incurred. The amount expensed during the years ended March 31, 2015 and 2014 was $6,750 and $30,098, respectively and is included in selling and distribution expense in the accompanying consolidated statements of operations. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2013 through March 31, 2015, includes only foreign currency translation gains (losses), and is presented in the Companys consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the years ending on March 31, 2015 and 2014 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2013 $ (2,461 ) Translation rate gain (loss) 18,720 Balance, March 31, 2014 21,180 Translation rate gain (loss) 63,129 Balance, March 31, 2015 $ 84,309 Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of March 31, 2015 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Companys financial position or results of operations. | |
Duo Software (Pvt.) Limited [Member] | |||
Summary of Significant Accounting Policies | Note 3 - Summary of Significant Accounting Policies Basis of Combination The accompanyingcombined financial statements include the combined accounts of Duo Software (Pvt.) Limited and its related entity (Duo Software Pte. Limited) .The Company has elected to present combined financial statements because both combined entities are under common ownership by a sole shareholder and subsequent the balance sheet date, both entities entered into a reverse merger with a newly formed US entity called Duo World Inc. All significant affiliate and intercompany accounts and transactions have been eliminated. Year end Fiscal year of the Company begins on April 1 and ends on March 31. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities ,disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.Making estimates requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non confirming events. Accordingly, the actual results could differ from those estimates. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. Risks and Uncertainties The Companys operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements or the emergence of competitive products with new capabilities or technologies could adversely affect operating results. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Companys sales are primarily to the companies located in Sri Lanka, Singapore, Indonesia and India. The Company performs ongoing credit evaluations of our customers, the risk with respect to trade receivables is further mitigated with the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies under the stated contract terms. Provisions A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and have strong policies and procedures for the collection of receivables from its clients. However, there are inevitably occasions when the receivables are due to the company, cannot be collected and therefore has to be written off as bad debts.While the debt collection process is being pursued, an assessment is made of the likelihood of receivables being collectable. A provision is therefore made against the outstanding receivable to reflect that component that may not become collectable. The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Provision Trade receivables outstanding: Over24 months 100 % Over18 months 50 % Over15 months 25 % Over12 months 10 % Over9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of March 31, 2014 and 2013, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Companys foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders deficit as accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income / (loss) as other income (expense). Fixed assets Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the combined financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 5 years Website development 5 years Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be presented separately in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Revenue Recognition, Deferred& Accrued Revenue The Company recognizes revenue from the sales of software licenses and related services in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally when all of the following criteria are met: ● Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. ● Delivery has occurred or services have been performed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. The Company uses written evidence of customer acceptance to verify delivery or completion of any performance terms. ● The sellers price to the buyer is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customers payment history, economic conditions in the customers industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. The Company typically licenses its products on a per server, per user basis with the price per customer varying based on the selection of the products licensed, the number of site installations and the number of authorized users. Currently, Duo is offering two major products from which it generates its revenue which are Duo Contact & Duo Subscribe.In the case of Duo Contact, Duo offers license to use software to its clients under an agreement. Invoices are raised monthly over the term of agreement. Then it recognizes revenue monthly over the term of the underlying arrangement.In the case of Duo Subscribe, Duo sells its software license alongwith software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis as defined in the agreement. Then it recognizes revenue on the basis of stage ofcompletion basis. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Companys software products. Maintenance fees are bundled with license fees in the initial licensing period and charged separately for renewals of annual maintenance in subsequent years. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the years ended March 31, 2014 and 2013, the Company received only cash as consideration for sale of licenses and related services rendered. At March 31, 2014 and 2013, the Company had following concentrations of accounts receivables with customers: Customer 31-Mar-14 31-Mar-13 Megamedia 36.73 % 12.30 % DEN Networks 14.36 % 6.50 % Mediatama 12.11 % 9.55 % Digicable 8.74 % 4.56 % Fastway 8.00 % 6.24 % Hutchison 4.74 % 2.56 % Pentavision 3.53 % 3.00 % Technosat 3.01 % 1.57 % Dish Media 2.86 % 25.42 % Infinity 0.00 % 17.26 % Other 14 receivables 5.91 % 11.04 % 100.00 % 100.00 % For the years ended March 31, 2014 and 2013, the Company had following concentrations of revenues with customers: Customer March 31, 2014 March 31, 2013 Megamedia 23.46 % 9.67 % DEN Networks 19.23 % 16.13 % Hutchison 14.10 % 18.48 % Mediatama 11.01 % 4.12 % Digicable 10.20 % 8.94 % Dish Media 5.27 % 18.99 % HelloCorp 3.51 % 5.18 % Fastway (DSI) 2.24 % 7.38 % Other 19 customers 10.99 % 11.10 % 100.00 % 100.00 % Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - Cost of Revenue Cost of revenue mainly includes product implementation costs related to the products offered by Duo. These costs include the cost of personnel to conduct implementations, customer support, consulting, and other personnel-related expenses.The aggregate cost related to the software licenses implementations including support, consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Companys development and technical support staff, contractors fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within Intangibles assets in the accompanying combined balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the years ending on March 31, 2014 and 2013, Company capitalized product development $239,770 and $260,332 respectively. Advertising Costs The Company expenses advertising costs as incurred. The amount expensed during the years ended March 31, 2014 and 2013 was $30,098 and $6,204, respectively and is included in selling and distribution expense in the accompanying combined statements of operations. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements.Comprehensive incomefrom April 1, 2012 through March 31, 2014, includes only foreign currency translation gains (losses), and is presented in the Companys combined statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the years ending on March 31, 2014 and 2013 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2012 $ 51,962 Translation rate gain (loss) (49,501 ) Balance, March 31, 2013 2,461 Translation rate gain (loss) 18,720 Balance, March 31, 2014 $ 21,180 Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of March 31, 2014 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on the Companys financial position or results of operations. |
Reverse Recapitalization
Reverse Recapitalization | 9 Months Ended |
Dec. 31, 2015 | |
Reverse Recapitalization | |
Reverse Recapitalization | Note 4 Reverse Recapitalization Duo (Successor) merged with DSSL (Predecessors) on December 3rd, 2014, and merged with DSS (Predecessors) on November 12 th In the recapitalization, Duo issued 28,000,000 shares of common stock, 5,000,000 series A preferred shares and $310,000 in cash in exchange for all of DSSLs 5,000,000 issued and outstanding shares of common stock. Duo also issued 2,000,000 shares of common stock in exchange for all of DSSs 10,000 issued and outstanding shares of common stock. The transaction resulted in DSSLs shareholder and DSSs shareholder acquiring approximately 100% control. The transaction also required a recapitalization of DSSL and DSS. Since DSSL and DSS acquired a controlling voting interest, they were deemed the accounting acquirer, while Duo was deemed the legal acquirer. The historical financial statements of the Company are those of combined financial statements of DSSL & DSS and of the consolidated entities from the date of recapitalization and subsequent. Since the transaction is considered a reverse recapitalization, the presentation of pro-forma financial information was not required. All share and per share amounts have been retroactively restated to the earliest periods presented to reflect the transaction. |
Accounts Receivables
Accounts Receivables | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accounts Receivables | Note 4 Accounts Receivables The following is a summary of accounts receivable as at December 31, 2015 and March 31, 2015; 12/31/2015 3/31/2015 Accounts receivable Trade $ 655,387 $ 677,911 Less: Provision for doubtful debts (101,431 ) (109,143 ) $ 553,957 $ 568,768 | Note 5 Accounts Receivable The following is a summary of accounts receivable as at March 31, 2015 and 2014; 3/31/2015 3/31/2014 Accounts receivable - Trade $ 677,911 $ 838,693 Less: Provision for doubtful debts (109,143 ) (142,208 ) $ 568,768 $ 696,485 | |
Duo Software (Pvt.) Limited [Member] | |||
Accounts Receivables | Note 4 Accounts Receivable The following is a summary of accounts receivable as at March 31, 2014 and 2013; 03/31/2014 03/31/2013 Accounts receivable Trade $ 838,693 $ 642,191 Less: Provision for doubtful debts (142,208 ) - $ 696,485 $ 642,191 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Prepaid Expenses and Other Current Assets | Note 5 Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets as at December 31, 2015 and March 31, 2015; 12/31/2015 3/31/2015 Security deposits $ 23,800 $ 23,793 WHT receivable 185,576 175,692 Staff loan and advances 1,162 1,857 Travel advance 1,202 1,004 Supplier advance 867 12,193 ESC receivable 2,400 2,582 Insurance prepayment 2,255 1,097 Solicitor current account - 174,261 Other receivables 7,914 6,689 $ 225,176 $ 399,168 Solicitor current account includes cash held by the Companys attorney on behalf of Duo in respect of proceeds received from first Private Placement Memorandum investors. During the quarter ended June 30, 2015, this entire amount held by the attorney was received in the Company bank account. | Note 6 Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets as at the years ending on March 31, 2015 and 2014; 3/31/2015 3/31/2014 Security deposits $ 23,793 $ 23,680 WHT receivable 175,692 237,722 Staff loan and advances 1,857 1,477 Travel advance 1,004 13,022 Supplier advance 12,193 - ESC receivable 2,582 7,494 Insurance prepayment 1,097 978 Solicitor current account 174,261 - Other receivables 6,689 4,186 $ 399,168 $ 288,559 Solicitor current account includes cash held by the Companys attorney on behalf of Duo in respect of proceeds received from first Private Placement Memorandum investors. Subsequent to the year end, this entire amount held by the attorney was received in the Company bank account on May 14, 2015. | |
Duo Software (Pvt.) Limited [Member] | |||
Prepaid Expenses and Other Current Assets | Note 5 Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets as at March 31, 2014 and 2013; 03/31/2014 03/31/2013 Security deposits $ 23,680 $ 20,171 WHT receivable 237,722 225,362 Staff loan and advances 1,477 3,468 Travel advance 13,022 14,683 Supplier advance - 13,974 ESC receivable 7,494 8,938 Prepayment - 6,135 Insurance prepayment 978 1,102 Other receivables 4,186 1,989 $ 288,559 $ 295,822 |
Property and Equipment
Property and Equipment | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property and Equipment | Note 6 Property and Equipment Following table illustrates net book value of Property and equipment as at December 31, 2015 and March 31, 2015; 12/31/2015 03/31/2015 Office equipment $ 19,893 $ 21,405 Furniture & fittings 220,071 211,411 Computer equipment (Data Processing Equipment) 480,380 484,769 Improvements to lease hold assets 2,002 2,154 Website Development 7,971 8,577 730,317 728,317 Accumulated depreciation and amortization (619,677 ) (637,680 ) Net fixed assets $ 110,640 $ 90,637 Depreciation and amortization expense for the nine months ended December 31, 2015 and 2014 was $26,830 and $25,213 respectively. | Note 7 Property and equipment Following table illustrates net book value of Property and equipment as at March 31, 2015 and 2014: 03/31/2015 03/31/2014 Office equipment $ 21,405 $ 21,600 Furniture & fittings 211,411 207,074 Computer equipment (Data Processing Equipment) 484,769 459,792 Improvements to lease hold assets 2,154 2,174 Website Development 8,577 8,655 728,317 699,295 Accumulated depreciation and amortization (637,680 ) (611,285 ) Net fixed assets $ 90,637 $ 88,010 Depreciation and amortization expense for the years ended March 31, 2015 and 2014 was $31,948 and $36,814 respectively. | |
Duo Software (Pvt.) Limited [Member] | |||
Property and Equipment | Note 6 Property and Equipment Following table illustrates net book value of fixed assets as at March 31, 2014 and 2013: 03/31/2014 03/31/2013 Office equipment $ 21,600 $ 22,250 Furniture & fittings 207,074 201,013 Computer equipment (Data Processing Equipment) 459,792 425,378 Improvements to lease hold assets 2,174 2,239 Website Development 8,655 8,915 699,295 659,795 Accumulated depreciation and amortization (611,285 ) (591,782 ) Net fixed assets $ 88,010 $ 68,013 Depreciation and amortization expense for the years ended March 31, 2014 and 2013 was $36,814 and $42,612 respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Intangible Assets | Note 7 Intangible Assets Intangible assets comprise of capitalization of certain costs pertaining to products development which meets the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at December 31, 2015 and March 31, 2015: 12/31/2015 3/31/2015 Opening Balance $ 327,542 $ 341,651 Add: Costs capitalized during the period 189,174 190,210 Less: Amount written off (139,323 ) (200,972 ) Translational loss (23,970 ) (3,348 ) Net intangible assets $ 353,423 $ 327,542 | Note 8 Intangible assets Intangible assets comprises of capitalization of certain costs pertaining to products development which meets the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at March 31, 2015 and 2014: 3/31/2015 3/31/2014 Opening Balance $ 341,651 $ 346,123 Add: Costs capitalized during the year 190,210 239,770 Less: Amount Written -off (200,972 ) (234,139 ) Translational gain (3,348 ) (10,104 ) Net Intangible Assets $ 327,542 $ 341,651 | |
Duo Software (Pvt.) Limited [Member] | |||
Intangible Assets | Note 7 Intangible assets Intangible assets comprises of capitalization of certain costs pertaining to products development which meets the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at March 31, 2015 and 2014: 3/31/2014 3/31/2013 Opening Balance $ 346,123 $ 408,167 Add: Costs capitalized during the year 239,770 260,332 Less: Amount Written -off (234,139 ) (327,298 ) Translational gain (10,104 ) 4,922 Net Intangible Assets $ 341,651 $ 346,123 |
Short Term Borrowings
Short Term Borrowings | 9 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Mar. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Short Term Borrowings | Note 8 Short Term Borrowings Following is a summary of short-term borrowings as at December 31, 2015 and March 31, 2015; 12/31/2015 03/31/2015 Yenom (Pvt.) Limited $ - $ 124,607 PAN Asia Bank Short term overdraft 163,485 39,982 Commercial Bank 1,974 - $ 165,459 $ 164,589 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 9.7% per annum. | Note 9 Short term borrowings Following is a summary of short term borrowings as at March 31, 2015 and 2014; 03/31/2015 03/31/2014 Yenom (Pvt.) Limited $ 124,607 $ - PAN Asia Bank Short term overdraft 39,982 - $ 164,589 $ - Short term loan obtained from Yenom Private Limited contains an interest rate of 6% per annum and bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 9.7% per annum. |
Due to Related Parties
Due to Related Parties | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Due to Related Parties | Note 9 Due to Related Parties Due to Related Parties Short Term From time to time, the Company receives advances from related parties such as officers, directors or principal shareholders in the normal course of business. Loans and advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying consolidated financial statements. As of December 31, 2015 and March 31, 2015, the Company owed shareholders and directors $151,263 and $139,387 respectively. Following is a summary of short term due to related parties as at December 31, 2015 and March 31, 2015; 12/31/2015 03/31/2015 Due to Director for expenses paid on behalf of the company $ 43,466 $ 33,449 Shareholder 107,798 18,555 Due to a related party Trade - 13,240 Due to a related party - Non Trade - 74,143 $ 151,263 $ 139,387 Due to Related Parties Long Term Balances outstanding to related parties for more than 12 months are presented under long-term liabilities in the accompanying consolidated financial statements. As of December 31, 2015 and March 31, 2015, the Company owed shareholders and directors $1,173,732 and $1,232,029 respectively. Following is a summary of long term due to related parties as at December 31, 2015 and March 31, 2015; 12/31/2015 03/31/2015 Director loan - bearing no interest $ 728,145 $ 783,511 Shareholder 445,587 448,518 $ 1,173,732 $ 1,232,029 Loan from Shareholder represents interest free loan at amortized cost, which matures in 2018, and notional interest 3% on cost of capital. | Note 10 Due to Related Parties Due to Related Parties Short term From time to time, the Company receives advances from related parties such as officers, directors or principal shareholders in the normal course of business. Loans and advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying consolidated financial statements. As of March 31, 2015 and 2014, the Company owed shareholders and directors $139,387 and $196,282 respectively. Following is a summary of short term due to related parties as at the years ending on March 31, 2015 and 2014; 03/31/2015 03/31/2014 Due to Director for expenses paid on behalf of the company $ 33,449 $ 88,599 Shareholder 18,555 12,333 Due to a related party Trade 13,240 14,447 Due to a related party - Non Trade 74,143 80,903 $ 139,387 $ 196,282 Due to Related Parties Long term Balances outstanding to related parties for more than 12 months are presented under long term liabilities in the accompanying consolidated financial statements. As of March 31, 2015 and 2014, the Company owed shareholders and directors $1,232,029 and $1,265,018 respectively. Following is a summary of long term due to related parties as at the years ending on March 31, 2015 and 2014; 03/31/2015 03/31/2014 Director loan - bearing no interest $ 783,511 $ 790,650 Shareholder 448,518 474,368 $ 1,232,029 $ 1,265,018 Loan from Shareholder represents interest free loan at amortized cost which matures in 2018 and notional interest 3% on cost of capital. | |
Duo Software (Pvt.) Limited [Member] | |||
Due to Related Parties | Note 8 Due to Related Parties Due to Related Parties Short term From time to time, the Company receives advances from related parties such as officers, directors or principal shareholders in the normal course of business. Loans and advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying combined financial statements. As of March 31, 2014 and 2013, the Company owed shareholders and directors $196,282 and $185,533 respectively. Following is a summary of short term due to related parties as at March 31, 2014 and 2013; 03/31/2014 03/31/2013 Due to Director for expenses paid on behalf of the company $ 88,599 $ 64,845 Shareholder 12,333 1,919 Due to a related party Trade 14,447 10,543 Due to a related party - Non Trade 80,903 108,226 $ 196,282 $ 185,533 Due to Related Parties Long term Balances outstanding to related parties for more than 12 months are presented under long term liabilities in the accompanying combined financial statements. As of March 31, 2014 and 2013, the Company owed shareholders and directors $1,265,018 and $1,280,270 respectively. Following is a summary of long term due to related parties as at March 31, 2014 and 2013; 03/31/2014 03/31/2013 Director loan - bearing no interest $ 790,650 $ 814,421 Shareholder 474,368 465,849 $ 1,265,018 $ 1,280,270 Loan from Shareholder represents interest free loan at amortized cost which matures in 2018 and notional interest 3% on cost of capital. |
Taxes Payables
Taxes Payables | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Taxes Payables | Note 10 Taxes Payables The taxes payable comprises of below items as at December 31, 2015 and March 31, 2015; 31/12/2015 31/03/2015 VAT payable $ 2,221 $ 2,390 NBT Payable 8,961 9,642 Stamp Duty Payable 48 42 PAYE 25,178 56,366 Tax payable - 231 $ 36,408 $ 68,671 | Note 11 Taxes Payables The taxes payable comprises of below items as at March 31, 2015 and 2014; 31/03/2015 31/03/2014 VAT payable $ 2,390 $ 43,507 NBT Payable 9,642 9,824 Stamp Duty Payable 42 35 PAYE 56,366 61,608 Tax payable 231 1,427 $ 68,671 $ 116,401 | |
Duo Software (Pvt.) Limited [Member] | |||
Taxes Payables | Note 9 Taxes Payables The taxes payable comprises of below items as at March 31, 2014 and 2013; 31/03/2014 31/03/2013 VAT payable $ 43,507 $ 44,815 NBT Payable 9,824 10,143 Stamp Duty Payable 35 31 PAYE 61,608 65,699 Tax payable 1,427 127 $ 116,401 $ 120,815 |
Accruals and Other Payables
Accruals and Other Payables | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accruals and Other Payables | Note 11 Accruals and Other Payables The following is a summary of accruals and other payables as at December 31, 2015 and March 31, 2015; 12/31/2015 03/31/2015 Accruals $ 5,406 $ 4,263 Dividend payable 1,934 2,081 Other payables 81,336 66,242 $ 88,676 $ 72,586 | Note 12 Accruals and Other Payables The following is a summary of accruals and other payables as at the years ending on March 31, 2015 and 2014; 03/31/2015 03/31/2014 Audit fee payable $ 4,263 $ 574 Rent payable - 234 Payable for expenses - 2,219 Professional fee payable - 103,972 Dividend payable 2,081 - Other payables 66,242 16,562 $ 72,586 $ 123,561 | |
Duo Software (Pvt.) Limited [Member] | |||
Accruals and Other Payables | Note 10 Accruals and Other Payables The following is a summary of accruals and other payables as at March 31, 2014 and 2013; 03/31/2014 03/31/2013 Audit fee payable $ 574 $ 550 Rent payable 234 1,506 Payable for expenses 2,219 2,028 Professional fee payable 103,972 158,047 Other payables 16,562 8,238 $ 123,561 $ 170,369 |
General and Administrative Expe
General and Administrative Expenses | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
General and Administrative Expenses | Note 12 General and Administrative Expenses The following is the summery of general and administrative expenses for the three months ending on December 31, 2015 and 2014; 12/31/2015 12/31/2014 Directors remuneration $ 26,724 $ 10,260 EPF 9,938 6,045 ETF 2,483 1,511 Bonus 24,188 16,456 Vehicle allowance 13,471 7,616 Staff welfare 13,450 11,109 Penalties / Late payment charges 2,926 12,346 Office rent 15,796 17,912 Electricity charges 4,273 5,263 Office maintenance 3,558 4,088 Telephone charges 2,646 3,316 Travelling expense 5,954 1,449 Printing and stationery 750 440 Office expenses 530 361 Computer maintenance 5,272 327 Internet charges 2,957 1,518 Courier and postage 189 708 Security charges 915 918 Insurance expense 444 374 Professional fees 1,633 207,699 Gratuity - 1,140 Secretarial fees 80 228 Un-claimable VAT input/ Irrecoverable tax 9,969 57 Software Rentals 5,171 4,641 Other professional services 1,819 1,365 Website design and maintenance 1,007 - Transfer agent fees 750 - Other expenses - 134 $ 156,893 $ 317,280 | Note 13 General and Administrative Expenses The following is the summery of general and administrative expenses for the years ending on March 31, 2015 and 2014; 31/03/2015 31/03/2014 Directors remuneration $ 39,960 $ 41,040 EPF 23,923 16,217 ETF 5,981 4,054 Bonus 16,023 - Vehicle allowance 29,394 15,134 Staff welfare 18,745 11,706 Penalties / Late payment charges 38,888 17,939 Office rent 65,803 49,813 Electricity charges 21,702 23,441 Office maintenance 16,948 16,179 Telephone charges 13,530 11,931 TDS expense - 11,511 Travelling expense 4,097 4,976 Legal fees - 489 Audit fees 4,771 3,679 Printing and stationery 1,620 3,441 Office expenses 1,770 2,071 Computer maintenance 16,422 2,566 Internet charges 7,665 2,293 Courier and postage 1,525 1,923 Security charges 3,496 3,371 NBT expense 91 381 Training and development 509 261 Insurance expense 1,482 1,549 Professional fees 220,607 14,770 Accounts written off 1,429 1,175 Gratuity 22,459 2,565 Secretarial fees 2,281 1,699 Unclaimable VAT input/ Irrecoverable tax 51,916 6,309 Software Rentals 16,928 - Stamp duty expense 3,437 - Other professional services 10,088 - Other expenses 902 1,339 $ 664,492 $ 273,822 | |
Duo Software (Pvt.) Limited [Member] | |||
General and Administrative Expenses | Note 11 General and Administrative Expenses The following is the summery of general and administrative expenses for the years ending on March 31, 2014 and 2013; 31/03/2014 31/03/2013 Directors remuneration $ 41,040 $ 36,735 EPF 16,217 12,204 ETF 4,054 3,051 Vehicle allowance 15,134 6,365 Staff welfare 11,706 7,570 Penalties / Late payment charges 17,939 24,704 Office rent 49,813 40,056 Electricity charges 23,441 22,586 Office maintenance 16,179 13,779 Telephone charges 11,931 9,792 TDS expense 11,511 26,006 Travelling expense 4,976 5,357 Legal fees 489 442 Audit fees 3,679 3,792 Printing and stationery 3,441 1,482 Office expenses 2,071 1,624 Computer maintenance 2,566 2,440 Internet charges 2,293 2,282 Courier and postage 1,923 1,256 Security charges 3,371 2,984 NBT expense 381 - Training and development 261 - Insurance expense 1,549 663 Professional fees 14,770 166,987 Accounts written off 1,175 17,451 Gratuity 2,565 - Secretarial fees 1,699 - Unclaimable VAT input 6,309 22,924 Other expenses 1,329 198 $ 273,816 $ 432,730 |
Selling and Distribution Expens
Selling and Distribution Expenses | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Selling and Distribution Expenses | Note 13 Selling and Distribution Expenses The following is the summery of selling and distribution expenses the three months ending on December 31, 2015 and 2014; 12/31/2015 12/31/2014 Marketing Expenses $ 9,169 $ 4,513 Advertisement expenses 587 596 Vehicle hire charges 1,632 2,508 Foreign Travel 960 - Vehicle running expense 1020 - Visa expenses 135 - $ 13,503 $ 7,617 | Note 14 Selling and Distribution Expenses The following is the summery of selling and distribution expenses for the years ending on March 31, 2015 and 2014; 31/03/2015 31/03/2014 Marketing Expenses $ 4,395 $ 29,756 Vehicle hire charges 14,874 21,888 Foreign Travel 5,398 8,072 Advertisement 2,356 342 Visa expenses 222 390 Vehicle running expenses - 661 Business promotion expense 406 583 $ 27,651 $ 61,692 | |
Duo Software (Pvt.) Limited [Member] | |||
Selling and Distribution Expenses | Note 12 Selling and Distribution Expenses The following is the summery of selling and distribution expenses for the years ending on March 31, 2014 and 2013; 31/03/2014 31/03/2013 Marketing Expenses $ 29,756 $ 5,849 Vehicle hire charges 21,888 26,386 Foreign Travel 8,072 8,154 Advertisement 342 356 Visa expenses 390 487 Vehicle running expenses 661 118 Business promotion expense 583 48 $ 61,692 $ 41,398 |
Income Taxes
Income Taxes | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes | Note 15 Income Taxes Income Tax expense consist of the following; 31/03/2015 31/03/2014 Current Taxes Nevada $ Nil $ Nil Sri Lanka -1,485 -5,157 Singapore -1,519 6,910 Total Income Tax Expense $ -3,004 $ 1,753 The income tax provision differs from the amount of tax determined by applying the federal statutory rate on account of the following items; Brought forward losses Unabsorbed Depreciation Interest on TDS The Components of deferred tax assets and Liabilities are as follows; 31/03/2015 31/03/2014 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation $ 12,862 $ 15,283 Less: Valuation allowance 1,525 1,790 Total Deferred tax asset (non-current) $ 11,337 $ 13,492 Total Deferred tax liability Nil Nil Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As of March 31, 2015 and 2014, based upon the levels of historical taxable income and the limited experience of the Company, the Company believes that it is more-likely-than-not that it will not be able to realize the benefits of some or all of these deductible differences. Accordingly, a valuation allowance of approximately $1,525 and $1,790 has been provided in the accompanying financial statements as of March 31, 2015 and 2014, respectively. Since Duo does not have any undistributed earnings, the Company has not recorded a deferred tax liability associated with the foreign earnings as of March 31, 2015 and 2014. However to deferred tax asset has been recorded associated with Unabsorbed Business Losses and Depreciation The Company is not subject to any foreign income taxes for the years ended March 31, 2015 and 2014. The Company may be subject to examination by the Internal Revenue Service (IRS) and state taxing authorities for 2015 and 2014 tax years. | |
Duo Software (Pvt.) Limited [Member] | ||
Income Taxes | Note 13 Income Taxes Income Tax expense from continuing operations consist of the following; Current Taxes 31/03/2014 31/03/2013 Sri Lanka $ (5,157 ) $ - Singapore 6,910 (2,471 ) Total Income Tax Expense $ 1,753 $ (2,471 ) The income tax provision differs from the amount of tax determined by applying the federal statutory rate on account of following items; Brought forward losses Unabsorbed Depreciation The Components of deferred tax assets and Liabilities are as follows; 31/03/2014 31/03/2013 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation $ 15,283 $ 6,859 Less: Valuation allowance 1,790 804 Total Deferred tax asset (non-current) $ 13,492 $ 6,055 Total Deferred tax liability Nil Nil Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As of March 31, 2014 and 2013, based upon the levels of historical taxable income and the limited experience of the Company, the Company believes that it is more-likely-than-not that it will not be able to realize the benefits of some or all of these deductible differences. Accordingly, a valuation allowance of approximately $1,790 and $ 804 has been provided in the accompanying financial statements as of March 31, 2014 and 2013, respectively. Since Duo does not have any undistributed earnings, the Company has not recorded a deferred tax liability associated with the foreign earnings as of March 31, 2014 and 2013. However to deferred tax asset has been recorded associated with Unabsorbed Business Losses and Depreciation. The Company is not subject to any foreign income taxes for the years ended March 31, 2014 and 2013. The Company may be subject to examination by the Internal Revenue Service (IRS) and state taxing authorities for 2014 and 2013 tax years. |
Equity
Equity | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Equity | Note 14 - Equity (A) Common Stock As at December 31, 2015, the Company had 90,000,000 authorized common shares having a par value of $0.001. The ordinary shares are designated with the following rights: ● Voting rights: ● Right to elect board of directors: ● Right to share income and assets: During the nine months ended December 31, 2015, the Company issued 3,460,000 shares of restricted common stock at $0.10 per share to Global Equity Partners PLC for services received as per the consultancy agreement. (B) Preferred Stock As at December 31, 2015, the Company had 10,000,000 authorized series A preferred shares having a par value of $0.001 per share. The preferred shares are designated with the following conversion rights: ● One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. During the nine months ended December 31, 2015, the Company issued 500,000 shares of series A preferred stock at par to Global Equity Partners PLC for services received as per the consultancy agreement. | Note 16 - Equity (A) Common Stock As at March 31, 2015, the Company has 90,000,000 authorized common shares having a par value of $0.001.The ordinary shares have been designated with the following rights: ● Voting rights: ● Right to elect board of directors: ● Right to share income and assets: During the year ended March 31, 2015, the Company issued following common shares: Date Type Shares Valuation 11/12/2014 Stock issued to shareholder of Duo Software (Pvt.) Limited 28,000,000 $ 140,000 11/12/2014 Stock issued to shareholder of Duo Software Pte Limited 2,000,000 $ 10,000 11/15/2014 Stock issued for services 3,600,000 $ 180,000 2/6/2015 Stock issued to PPM-1 investor 240,000 $ 60,000 2/6/2015 Stock issued to PPM-1 investor 200,000 $ 50,000 2/10/2015 Stock issued to PPM-1 investor 40,000 $ 10,000 2/11/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/13/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/19/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/24/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/25/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/25/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 2/26/2015 Stock issued to PPM-1 investor 40,000 $ 10,000 2/27/2015 Stock issued to PPM-1 investor 100,000 $ 25,000 2/27/2015 Stock issued to PPM-1 investor 50,000 $ 12,500 2/27/2015 Stock issued to PPM-1 investor 20,000 $ 5,000 3/2/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 3/23/2015 Stock issued to PPM-1 investor 200,000 $ 50,000 3/23/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 3/23/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 3/23/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 3/23/2015 Stock issued to PPM-1 investor 10,000 $ 2,500 Total 34,600,000 $ 577,500 (B) Preferred Stock As at March 31, 2015, the Company has 10,000,000 authorized series A preferred shares having a par value of $0.001 per share. The Company issued 5,000,000 series A preferred shares at $0.005 per share to the shareholder of Duo Software (Pvt.) Limited as part of the purchase agreement dated November 12, 2014 between Duo World Inc. and Duo Software (Pvt.) Limited. The preferred shares have been designated with the following conversion rights: ● One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. | |
Duo Software (Pvt.) Limited [Member] | |||
Equity | Note 14 - Equity Share Capital As at March 31, 2014, the combined share capital includesDuos common stock comprising fully paid-up, issued and outstanding 5,000,000 (2013: 5,000,000) common shares having a par value of $390,000 (2013: $390,000) and related entitys common stock comprising fully paid-up, issued and outstanding 10,000 (2013: 10,000) common shares having a par value of $7,953 (2013: $7,953). Additional Paid in Capital The additional paid in capital relates to recognition of imputed interest on long term related party loan during the year ended March 31, 2013. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments and Contingencies | Note 15 - Commitments and Contingencies The Company consults with legal counsel on matters related to litigation and other experts both within and outside the Company with respect to matters in the ordinary course of business. The Company does not have any contingent liabilities in respect of legal claims arising in the ordinary course of business. Duo entered into a lease commitment on September 18, 2013 for its Sri Lanka office amounting to $153,564 with Happy Building Management Company for a period of 3 years. Duo entered into another lease commitment for its Indian office amounting to $1,226 on April 1, 2015 with Regus Office Center Services Pvt. Limited for a period of 1 year. Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 09/23/2011 Performance Bond for BOC Tender $ 10,582 10/31/2011 Advance payment Bond for BOC Tender 2,116 10/09/2012 Guarantee for CEB 352 05/15/2013 Guarantee for Lanka Clear 2,224 08/10/2015 Guarantee for LOLC 1,691 07/31/2014 Guarantee for SLT 599 $ 17,564 The company has not provided any guarantees other than those mentioned above. | Note17-Commitments and Contingencies The Company consults with legal counsel on matters related to litigation and other experts both within and outside the Company with respect to matters in the ordinary course of business. The Company does not have any contingent liabilities in respect of legal claims arising in the ordinary course of business. Duo entered into a lease commitment for its Sri Lanka office amounting to $165,240 with Happy Building Management Company for a period of 3 years. Duo entered into another lease commitment for its Indian office amounting to $1,304 on April 1, 2015 with Regus Office Center Services Pvt. Limited for a period of 1 year. Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 09/23/2011 Performance Bond for BOC Tender $ 11,387 10/31/2011 Advance payment Bond for BOC Tender 2,277 10/09/2012 Guarantee for CEB 379 05/15/2013 Guarantee for Lanka Clear 2,392 06/18/2013 Guarantee for Mortgage Bank 152 07/31/2014 Guarantee for SLT 644 $ 17,231 | |
Duo Software (Pvt.) Limited [Member] | |||
Commitments and Contingencies | Note15-Commitments and Contingencies The Company consults with legal counsel on matters related to litigation and other experts both within and outside the Company with respect to matters in the ordinary course of business. The Company does not have any contingent liabilities in respect of legal claims arising in the ordinary course of business. Duo entered into a lease commitment for its Sri Lanka office amounting to $55,080 on April 1, 2014 with Happy Building Management Company for a period of 1 year. Duo entered into another lease commitment for its Indian office amounting to $1,361 on April 1, 2014 with Regus Office Center Services Pvt. Limited for a period of 1 year. Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 09/23/2011 Performance Bond for BOC Tender $ 11,490 10/31/2011 Advance payment Bond for BOC Tender 2,298 10/09/2012 Guarantee for CEB 383 05/15/2013 Guarantee for Lanka Clear 2,414 06/18/2013 Guarantee for Mortgage Bank 153 $ 16,738 |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Subsequent Events | Note 16- Subsequent Events Board of directors decided to raise equity by way of a second private placement (PPM) for its expansion in the United States. No subsequent events were identified as of April 21, 2016 other than those disclosed above. | Note 18- Subsequent Events On April28, 2015, the Company issued 3,460,000 shares of restricted common stock at $0.10 per share to Global Equity Partners PLC for services received as per the consultancy agreement. Board of directors decided to raise equity by way of a second private placement (PPM) for its expansion in the United States. No subsequent events were identified as of 7 th | |
Duo Software (Pvt.) Limited [Member] | |||
Subsequent Events | Note 16- Subsequent Events Ordinary shares totaling 1,944,500 of Duo Software (Pvt.) Ltd., held by NiranjanCanagasooryam were transferred to Mr. MuhunthanCanagasooryam during June 2014. The board decided to incorporate a separate entity in the US (Duo World Inc.) for the purposes of expanding business operations to the continent and also to list its shares on the NASDAQ.Duo WorldInc did not have any material operations as on November 12, 2014 (date of reverse acquisition) and a 100% voting control and management control was transferred to the owners of Duo Software Sri Lanka and Duo Software Singapore.In the recapitalization, Duo World issued 28,000,000 shares of common stock at a price of $0.005 per share amounting to $140,000 and 5,000,000 series A shares of preferred stock at a price of $0.005 per share amounting to $25,000 in exchange for all of Duo Software Sri Lankas 5,000,000 issued and outstanding shares of common stock. The Company also issued 2,000,000 shares of common stock at a price of $0.005 per share amounting to $10,000 in exchange for all of Duo Software Singapores 10,000 issued and outstanding shares of common stock. Duo Software (Pvt) Ltd., signed an agreement during September 2014, with the state run telecommunication organization (Sri Lanka Telecom), the largest fixed line and broadband operator in Sri Lanka to jointly provide hosted solutions using the platform (DuoWorld) developed by the company on a joint revenue share basis. The management approved the prototype of the new application, DuoDigin (a reporting and monitoring tool) and commenced development of this tool after the balance sheet date. No subsequent events were identified as of 7 th |
General
General | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
General | Note 17 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. | Note 19 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. | |
Duo Software (Pvt.) Limited [Member] | |||
General | Note 17 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. |