Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 26, 2017 | Sep. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | DUO WORLD INC | ||
Entity Central Index Key | 1,635,136 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 38,567,467 | ||
Trading Symbol | DUUO | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 25,084 | $ 91,106 |
Accounts receivable - trade | 621,670 | 512,685 |
Prepaid expenses and other current assets | 257,376 | 249,745 |
Accrued Revenue | 70,174 | 31,154 |
Total Current Assets | 974,304 | 884,690 |
Non-Current Assets | ||
Property and equipment, net of accumulated depreciation of $248,326 and $626,292 respectively | 48,087 | 105,790 |
Intangible asset | 580,899 | 382,352 |
Deferred taxes | 30,864 | 18,070 |
Total Non-Current Assets | 659,850 | 506,212 |
Total Assets | 1,634,154 | 1,390,902 |
Current Liabilities | ||
Accounts payable | 307,616 | 377,376 |
Short term borrowings | 473,838 | 227,578 |
Payroll, employee benefits, severance | 284,285 | 121,395 |
Due to related parties | 361,785 | 163,738 |
Payable for acquisition | 185,762 | 185,762 |
Taxes payable | 82,669 | 38,978 |
Accruals and other payables | 169,746 | 83,441 |
Deferred revenue | 16,420 | 9,954 |
Total Current liabilities | 1,882,121 | 1,208,222 |
Long Term Liabilities | ||
Due to related parties | 1,168,866 | 1,194,668 |
Total Long Term liabilities | 1,168,866 | 1,194,668 |
Total liabilities | 3,050,987 | 2,402,890 |
Commitments and contingencies (Note 18) | ||
Shareholders' Deficit | ||
Ordinary shares: $0.001 par value per share; 90,000,000 shares authorized; 38,567,467 and 38,060,000 shares issued and outstanding, respectively | 38,567 | 38,060 |
Additional Paid in Capital | 907,456 | 601,560 |
Accumulated deficit | (2,481,117) | (1,733,937) |
Accumulated other comprehensive income | 112,761 | 76,829 |
Total shareholders' deficit | (1,416,833) | (1,011,988) |
Total Liabilities and Shareholders' Deficit | 1,634,154 | 1,390,902 |
Series A Preferred Stock [Member] | ||
Shareholders' Deficit | ||
Convertible series "A" preferred shares: $0.001 par value per share; 10,000,000 shares authorized; 5,500,000 and 5,500,000 shares issued and outstanding, respectively | $ 5,500 | $ 5,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Accumulated depreciation, property and equipment | $ 248,326 | $ 626,292 |
Ordinary stock, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 90,000,000 | 90,000,000 |
Ordinary stock, shares issued | 38,567,467 | 38,060,000 |
Ordinary stock, shares outstanding | 38,567,467 | 38,060,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 5,500,000 | 5,500,000 |
Preferred stock, shares outstanding | 5,500,000 | 5,500,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 1,116,324 | $ 1,394,172 |
Cost of sales (exclusive of depreciation presented below) | (344,927) | (322,199) |
Gross income | 771,397 | 1,071,973 |
Operating Expenses | ||
Research and development | 40,201 | 142,782 |
General and administrative | 929,726 | 982,547 |
Salaries and benefits | 398,431 | 377,356 |
Selling and distribution | 15,720 | 43,560 |
Depreciation | 60,478 | 36,220 |
Amortization of web site development | 2,039 | 1,139 |
Allowance for bad debts | 133,525 | 62,865 |
Total operating expenses | 1,580,120 | 1,646,470 |
Loss before other income (expenses) | (808,723) | (574,497) |
Other income (expenses): | ||
Gain / (Loss) on disposals | 93 | |
Other income | 440 | 599 |
Bank charges | (4,580) | (2,963) |
Debit tax charges | (84) | |
Exchange gain / (loss) | 40,643 | 41,737 |
Interest expenses | (29,133) | (35,323) |
Total other income | 7,463 | 3,966 |
Loss before provision for income taxes | (801,260) | (570,530) |
Provision for income taxes | 11,934 | 10,575 |
Net loss | $ (789,326) | $ (559,955) |
Basic and Diluted Loss per Share | $ (0.02) | $ (0.01) |
Basic and Diluted Weighted Average Number of Shares Outstanding | 38,528,359 | 37,794,575 |
Comprehensive Income / (Loss): | ||
Gain / (loss) on foreign currency translation | $ 35,932 | $ (7,480) |
Net loss | (789,326) | (559,955) |
Comprehensive Loss | $ (753,394) | $ (567,435) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Deficit - USD ($) | Common Share Capital [Member] | Preferred Share Capital [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
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 | ||||
Stock issued for services | $ 3,460 | $ 500 | 342,540 | 346,500 | ||
Stock issued for services, shares | 3,460,000 | 500,000 | ||||
Net loss | (559,955) | (559,955) | ||||
Prior year adjustments | (464) | (464) | ||||
Other comprehensive income (loss) | (7,480) | (7,480) | ||||
Balance at Mar. 31, 2016 | $ 38,060 | $ 5,500 | 601,560 | (1,733,937) | 76,829 | (1,011,988) |
Balance, shares at Mar. 31, 2016 | 38,060,000 | 5,500,000 | ||||
Stock issued for services | $ 286 | 214,314 | 214,600 | |||
Stock issued for services, shares | 286,133 | |||||
Net loss | (789,326) | (789,326) | ||||
Prior year adjustments | (74,197) | 42,146 | (32,051) | |||
Other comprehensive income (loss) | 35,932 | 35,932 | ||||
Stock issued to PPM investors | $ 201 | 150,799 | $ 151,001 | |||
Stock issued to PPM investors, shares | 201,334 | 507,467 | ||||
Stock issued as payment for accrued interest | $ 20 | 14,980 | $ 15,000 | |||
Stock issued as payment for accrued interest, shares | 20,000 | |||||
Balance at Mar. 31, 2017 | $ 38,567 | $ 5,500 | $ 907,456 | $ (2,481,117) | $ 112,761 | $ (1,416,833) |
Balance, shares at Mar. 31, 2017 | 38,567,467 | 5,500,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Loss before provision for income taxes | $ (801,260) | $ (570,530) |
Adjustments to reconcile net loss before provision for income taxes to cash provided by operating activities: | ||
Depreciation | 62,517 | 37,359 |
Allowance for bad debts | 133,525 | 62,865 |
Interest on related party loan | 13,261 | |
Product development cost written off | 147,326 | 202,311 |
Stock issued for services | 214,600 | 346,500 |
Stock issued as payment for accrued interest | 15,000 | |
Prior year adjustments | (32,051) | (464) |
Changes in assets and liabilities: | ||
Accounts receivable - trade | (242,513) | (6,782) |
Prepayments, accrued revenue and other current assets | (46,649) | 176,479 |
Accounts Payable | (69,760) | 143,501 |
Payroll, employee benefits, severance | 162,890 | 112,643 |
Short term overdraft - Pan Asia Bank | 246,260 | 62,989 |
Due to relates parties | 198,047 | 24,351 |
Payable for acquisition | (124,238) | |
Taxes payable | 55,625 | (19,118) |
Accruals and other payables | 92,771 | (6,083) |
Deferred taxes | (12,794) | (6,733) |
Net cash provided by operating activities | 123,535 | 448,311 |
Cash Flows used in investing activities: | ||
Acquisition of Property and Equipment | (10,133) | (58,291) |
Sale proceeds of disposal of Property and Equipment | 92 | |
Intangible asset | (365,216) | (276,197) |
Net cash used in investing activities | (375,257) | (334,488) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock to PPM investors | 151,001 | |
Net cash provided by / (used by) financing activities | 151,001 | |
Net (decrease) / increase in cash | (100,723) | 113,823 |
Effect of exchange rate changes on cash | 34,701 | (33,247) |
Cash, beginning of year | 91,106 | 10,530 |
Cash, end of year | 25,084 | 91,106 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 29,132 | 20,310 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common shares issued for services | 214,600 | 346,000 |
Preferred shares issued for services | 500 | |
Accrued interest converted into common shares | $ 15,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as “Successor” or “Duo”) a reporting company since September 26, 2016, 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 December 03, 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 Company’s application (“Duo Subscribe”, “Duo Contact”, “Digin”, “Facetone”, “CloudCharge” and “SmoothFlow”) provide solutions in the space of Data Analytics, Customer Life Cycle Management, Subscriber Billing and Work Flow. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 - Basis of Presentation The Company has prepared the accompanying consolidated financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All amounts in the consolidated financial statements are stated in U.S. dollars. We have recast certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows. Going Concern The Group has incurred a net loss of $789,326 and $559,955 during the financial years ended March 31, 2017 and 2016 respectively, As at March 31, 2017 and March 31, 2016, the Group’s current liabilities exceeded current assets by $907,817and $323,532 and Shareholders deficit as at March 31, 2017 and 2016 has been $1,416,833 and $1,011,988. The Group has outstanding statutory dues towards Employee provident fund and employee trust fund as at that date of $269,781 and $114,631. The financial statements of the Group have been prepared on a going concern. The Group has operating losses as mentioned in the above paragraph. However, the same were incurred as one-time expenditure incurred for incorporation and listing of the company. The Company has operating cash inflows of $123,535 and $448,311 respectively during the year ended March 31, 2017 and March 31, 2016. March 31, 2017 March 31, 2016 March 31, 2015 Net profit/ (loss) (789,326 ) (559,955 ) 75,819 Cost incurred for Duo World 375,612 411,862 505,750 Net profit/ (loss) excluding Duo World Expenses (413,714 ) (148,093 ) 581,569 Further, the Company has entered into contracts with the clients for the products launched during the year 2016-17 and it is confident that the projects shall generate sufficient revenue to offset the operating losses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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. Use of Estimates and Assumptions 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 and assumptions 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 and assumptions. 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 Company’s 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 Company’s 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, have 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: Trade receivables outstanding: Provision 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, 2017 and 2016, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Company’s 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). Property and Equipment 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) 3 years Website development 4 years For the financial year ending March 31, 2016, the useful life of Computer Equipment and Website development were assumed to be 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 sale 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 seller’s 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 Customer’s payment history, economic conditions in the customer’s 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 three products from which it generates its revenue they are “Duo Contact”, “Duo Subscribe” and “Facetone”. 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” and “Facetone”, 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 Company’s 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, 2017 and 2016, the Company received only cash as consideration for sale of licenses and related services rendered. For the years ended March 31, 2017 and 2016, the Company had following concentrations of revenues with customers: Customer March 31, 2017 March 31, 2016 Megamedia 35.72 % 32.96 % DEN Networks 33.74 % 27.12 % Hutchison 7.45 % 14.36 % Topas TV 7.23 % 2.08 % Mediatama 2.95 % 5.83 % Sri Lanka Telecom 1.50 % 0.55 % Dish Media 0.60 % 6.24 % HelloCorp 2.22 % 3.63 % Bank of Ceylon 1.64 % 0.00 % Other Misc. customers 6.95 % 7.23 % 100.00 % 100.00 % For the years ended March 31, 2017 and 2016, the company had following sales by products: Product 31-Mar-17 31-Mar-16 Duo Subscriber $ 928,905 $ 1,122,959 Duo Contact 159,393 260,573 Software hosting and reselling 16,771 10,640 Facetone 11,255 - $ 1,116,324 $ 1,394,172 Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - Cost of Revenue Cost of revenue mainly includes purchases, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software 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 Company’s 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 upon 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, 2017 and 2016, product research and development cost of $365,216 and $276,197, respectively, were capitalized as “Intangible assets”. Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the years ended March 31, 2017 and 2016. 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, 2015 through March 31, 2017, includes only foreign currency translation gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the years ending on March 31, 2017 and 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2015 $ 84,309 Translation rate gain (loss) (7,480 ) Balance, March 31, 2016 76,829 Translation rate gain (loss) 35,932 Balance, March 31, 2017 $ 112,761 Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of March 31, 2017 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Company’s financial position or results of operations. |
Reverse Recapitalization
Reverse Recapitalization | 12 Months Ended |
Mar. 31, 2017 | |
Reverse Recapitalization | |
Reverse Recapitalization | Note 4 – Reverse Recapitalization Duo (Successor) merged with DSSL (Predecessors) on December 3, 2014, and merged with DSS (Predecessors) on December 3, 2014 (Predecessors), and DSSL and DSS became the surviving corporations, in a transaction treated as a reverse recapitalization. Duo did not have any material operations and majority-voting control was transferred to DSSL. 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 DSSL’s 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 DSS’s 10,000 issued and outstanding shares of common stock. The transaction resulted in DSSL’s shareholder and DSS’s 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 Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Note 5 – Accounts Receivable Following is a summary of accounts receivable as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Accounts receivable – Trade $ 754,783 $ 674,823 Less: Provision for doubtful debts (133,113 ) (162,138 ) $ 621,670 $ 512,685 At March 31, 2017 and 2016, the Company had following concentrations of accounts receivables with customers: Customer March 31, 2017 March 31, 2016 Megamedia 63.68 % 28.92 % DEN Networks 15.99 % 11.97 % Topas 7.24 % 1.62 % Dish Media 5.88 % 5.55 % Sri Lanka Telecom 1.42 % 0.66 % Mediatama 1.29 % 1.86 % MediaNet 1.14 % 3.54 % Digicable 0.00 % 23.68 % Fastway 0.00 % 5.54 % Technosat 0.00 % 3.15 % Pentavision 0.00 % 4.51 % Other 10 receivables 3.36 % 9.00 % 100 % 100 % |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6 – Prepaid Expenses and Other Current Assets Following is a summary of prepaid expenses and other current assets as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Security deposits $ 29,621 $ 24,132 WHT receivable 201,362 205,632 Staff loan and advances 100 1,052 Travel advance 295 - Supplier advance 4,398 1,786 ESC receivable 5,826 6,131 Insurance prepayment 1,435 1,632 Prepayments 10,580 1,526 Other receivables 3,759 7,854 $ 257,376 $ 249,745 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7– Property and Equipment Following table illustrates net book value of property and equipment as at March 31, 2017 and 2016: March 31, 2017 March 31, 2016 Office equipment $ 9,465 $ 19,802 Furniture & fittings 139,377 220,526 Computer equipment (Data Processing Equipment) 131,909 479,273 Improvements to lease hold assets 1,894 1,993 Website Development 13,768 10,488 296,413 732,082 Accumulated depreciation and amortization (248,326 ) (626,292 ) Net fixed assets $ 48,087 $ 105,790 Depreciation and amortization expense for the years ended March 31, 2017 and 2016 was $62,517 and $37,359 respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 – 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 March 31, 2017 and 2016: March 31, 2017 March 31, 2016 Opening Balance $ 382,352 $ 327,542 Add: Costs capitalized during the year 365,216 276,197 Less: Amount Written-off (147,326 ) (202,311 ) Translational gain (19,343 ) (19,076 ) Net Intangible Assets $ 580,899 $ 382,352 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Note 9 – Short-term borrowings Following is a summary of short-term borrowings as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 PAN Asia Bank – Short term overdraft $ 460,088 $ 213,804 Prosperous Capital 8,997 - Commercial bank credit card 4,753 - Yenom (Pvt.) Limited - 13,636 HSBC – Short term overdraft - 138 $ 473,838 $ 227,578 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 9.61% per annum up to $ 101,846 and 11.35% per annum up to $ 207,383. |
Due to Related Parties
Due to Related Parties | 12 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Due to Related Parties | 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 management, 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, 2017 and 2016, the Company owed directors $361,785 and $163,738 respectively. 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. Related party loan in the Balance Sheet of Duo Software Pte. Ltd was recognized at cost as of March 31, 2017, and at amortized cost as of March 31, 2016. As of March 31, 2017 and 2016, the Company owed directors $1,168,866 and $1,194,668 respectively. |
Taxes Payables
Taxes Payables | 12 Months Ended |
Mar. 31, 2017 | |
Taxes Payable [Abstract] | |
Taxes Payables | Note 11 – Taxes Payables The taxes payable comprise of items listed below as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 PAYE $ 73,611 $ 33,718 VAT payable 14 - Stamp Duty Payable 48 51 Tax payable 8,996 5,209 $ 82,669 $ 38,978 |
Accruals and Other Payables
Accruals and Other Payables | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accruals and Other Payables | Note 12 – Accruals and Other Payables Following is a summary of accruals and other payables as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Audit fee payable $ 20,906 $ 4,715 Accruals 81,696 7,860 Other payables 67,144 70,866 $ 169,746 $ 83,441 |
Cost of Revenue
Cost of Revenue | 12 Months Ended |
Mar. 31, 2017 | |
Cost of Revenue [Abstract] | |
Cost of Revenue | Note 13 – Cost of Revenue Following is the summary of cost of revenue for the years ending March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Purchases $ 41,959 $ 48,993 Implementation and onsite support cost 42,406 28,239 Product development cost written off 147,326 202,311 Consultancy, contract basis employee cost 19,950 12,204 Developer support and implementation 87,546 25,561 Cost of services 5,740 4,891 $ 344,927 $ 322,199 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Mar. 31, 2017 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses | Note 14 – General and Administrative Expenses Following is the summary of general and administrative expenses for the years ending March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Directors remuneration $ 108,827 $ 113,302 EPF 46,317 42,797 ETF 11,579 10,698 Bonus 24,701 41,063 Vehicle allowance 54,393 54,325 Staff welfare 24,572 25,081 Penalties / Late payment charges 5,105 6,421 Office rent 76,725 65,889 Electricity charges 15,959 20,543 Office maintenance 18,046 20,156 Telephone charges 12,177 13,073 Travelling expense 3,640 38,263 Legal fees 499 946 Audit fees 45,120 5,235 Printing and stationery 1,855 2,873 Office expenses 2,383 3,432 Computer maintenance 5,757 22,187 Internet charges 13,449 11,831 Courier and postage 678 750 Security charges 3,688 3,886 Training and development 169 425 Insurance expense 2,264 1,882 Professional fees 21,990 405,836 Gratuity 29,684 2,613 Secretarial fees 10,288 649 Irrecoverable Tax 46,631 34,012 Software Rentals 25,099 21,625 Other professional services 233,762 9,164 Consulting fee 78,500 - Fee and Subscription 2,695 - Government taxes 199 - Stamp Duty expense 1,403 - Other expenses 1,572 3,580 $ 929,726 $ 982,547 |
Selling and Distribution Expens
Selling and Distribution Expenses | 12 Months Ended |
Mar. 31, 2017 | |
Selling and Marketing Expense [Abstract] | |
Selling and Distribution Expenses | Note 15 – Selling and Distribution Expenses Following is the summery of selling and distribution expenses for the years ending March 31, 2017 and 2016 March 31, 2017 March 31, 2016 Marketing Expenses $ 1,662 $ 29,553 Vehicle hire charges 6,384 6,919 Foreign Travel 2,432 3,786 Visa expenses 251 347 Vehicle running expenses 4,788 2,955 Gift and donations 203 - $ 15,720 $ 43,560 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 – Income Taxes Income Tax expense consist of the following; March 31, 2017 March 31, 2016 Current Taxes Nevada $ - $ - Sri Lanka - - Singapore 11,934 10,575 Total Income Tax Expense $ 11,934 $ 10,575 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 The Components of deferred tax assets and Liabilities are as follows; March 31, 2017 March 31, 2016 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation 36,165 21,173 Less: Valuation allowance 5,301 3,103 Total deferred tax asset (non-current) 30,864 18,070 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, 2017 and 2016, 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 $5,301 and $3,103 has been provided in the accompanying financial statements as of March 31, 2017 and 2016, 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, 2017 and 2016. 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, 2017 and 2016. The Company may be subject to examination by the Internal Revenue Service (“IRS”) and state taxing authorities for 2017 and 2016 tax years. |
Equity
Equity | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | Note 17 - Equity (A) Common Stock As at March 31, 2017, 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, 2017, the Company issued following common shares: Date Type No. of Shares Valuation 04/22/2016 Stock issued to PPM-2 investor 188,000 $ 141,000 04/22/2016 Stock issued to PPM-2 investor 13,334 10,001 04/27/2016 Stock issued for services 46,133 34,600 04/27/2016 Stock issued for services 240,000 180,000 04/27/2016 Stock issued as payment for accrued interest 20,000 15,000 507,467 $ 380,600 (B) Preferred Stock As at March 31, 2017, the Company has 10,000,000 authorized series “A” preferred shares having a par value of $0.001 per share. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18 - 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 $119,952 with Happy Building Management Company for a period of 3 years. Duo entered in to another lease commitment for its Indian office amounting to $ 1,259 on April 1, 2017 with Regus Office Center Services (Pvt) Limited for a period of 1 year. Guarantees provided by the company existed on the balance sheet date are as follows: Date Description Amount 09/23/2011 Performance Bond for BOC Tender $ 10,009 05/15/2013 Guarantee for Lanka Clear 2,103 07/31/2014 Guarantee for SLT 566 10/08/2015 Guarantee for LOLC 1,599 $ 14,277 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19 - Subsequent Events Duo World Inc. has been approved for trading under the symbol “DUUO” on April 26, 2017 in OTC markets. |
General
General | 12 Months Ended |
Mar. 31, 2017 | |
General | |
General | Note 20 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | 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. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions 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 and assumptions 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 and assumptions. 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 | Risks and Uncertainties The Company’s 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 | 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 Company’s 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 | 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 | 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, have 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: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Cash Equivalents | 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, 2017 and 2016, there were no cash equivalents. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of the Company’s 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). |
Property and Equipment | Property and Equipment 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) 3 years Website development 4 years For the financial year ending March 31, 2016, the useful life of Computer Equipment and Website development were assumed to be 5 years. |
Impairment of Long-lived Assets | 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 | 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 | Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale 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 seller’s 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 Customer’s payment history, economic conditions in the customer’s 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 three products from which it generates its revenue they are “Duo Contact”, “Duo Subscribe” and “Facetone”. 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” and “Facetone”, 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 Company’s 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, 2017 and 2016, the Company received only cash as consideration for sale of licenses and related services rendered. For the years ended March 31, 2017 and 2016, the Company had following concentrations of revenues with customers: Customer March 31, 2017 March 31, 2016 Megamedia 35.72 % 32.96 % DEN Networks 33.74 % 27.12 % Hutchison 7.45 % 14.36 % Topas TV 7.23 % 2.08 % Mediatama 2.95 % 5.83 % Sri Lanka Telecom 1.50 % 0.55 % Dish Media 0.60 % 6.24 % HelloCorp 2.22 % 3.63 % Bank of Ceylon 1.64 % 0.00 % Other Misc. customers 6.95 % 7.23 % 100.00 % 100.00 % For the years ended March 31, 2017 and 2016, the company had following sales by products: Product 31-Mar-17 31-Mar-16 Duo Subscriber $ 928,905 $ 1,122,959 Duo Contact 159,393 260,573 Software hosting and reselling 16,771 10,640 Facetone 11,255 - $ 1,116,324 $ 1,394,172 Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - |
Cost of Revenue | Cost of Revenue Cost of revenue mainly includes purchases, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software 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 Product research and development expenses consist primarily of salary and benefits for the Company’s 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 upon 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, 2017 and 2016, product research and development cost of $365,216 and $276,197, respectively, were capitalized as “Intangible assets”. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the years ended March 31, 2017 and 2016. |
Income Taxes | 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 | 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, 2015 through March 31, 2017, includes only foreign currency translation gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the years ending on March 31, 2017 and 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2015 $ 84,309 Translation rate gain (loss) (7,480 ) Balance, March 31, 2016 76,829 Translation rate gain (loss) 35,932 Balance, March 31, 2017 $ 112,761 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of March 31, 2017 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Company’s financial position or results of operations. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Operating Activities | March 31, 2017 March 31, 2016 March 31, 2015 Net profit/ (loss) (789,326 ) (559,955 ) 75,819 Cost incurred for Duo World 375,612 411,862 505,750 Net profit/ (loss) excluding Duo World Expenses (413,714 ) (148,093 ) 581,569 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Provision for Doubtful Debts Based on Period Outstanding | The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Schedule of Estimated Useful Lives of Fixed Assets | 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) 3 years Website development 4 years |
Schedule of Concentrations of Revenue | For the years ended March 31, 2017 and 2016, the Company had following concentrations of revenues with customers: Customer March 31, 2017 March 31, 2016 Megamedia 35.72 % 32.96 % DEN Networks 33.74 % 27.12 % Hutchison 7.45 % 14.36 % Topas TV 7.23 % 2.08 % Mediatama 2.95 % 5.83 % Sri Lanka Telecom 1.50 % 0.55 % Dish Media 0.60 % 6.24 % HelloCorp 2.22 % 3.63 % Bank of Ceylon 1.64 % 0.00 % Other Misc. customers 6.95 % 7.23 % 100.00 % 100.00 % |
Schedule of Sales by Products | For the years ended March 31, 2017 and 2016, the company had following sales by products: Product 31-Mar-17 31-Mar-16 Duo Subscriber $ 928,905 $ 1,122,959 Duo Contact 159,393 260,573 Software hosting and reselling 16,771 10,640 Facetone 11,255 - $ 1,116,324 $ 1,394,172 |
Schedule of Accumulated Other Comprehensive Income (loss) | Changes in Accumulated Other Comprehensive Income (Loss) by Component during the years ending on March 31, 2017 and 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2015 $ 84,309 Translation rate gain (loss) (7,480 ) Balance, March 31, 2016 76,829 Translation rate gain (loss) 35,932 Balance, March 31, 2017 $ 112,761 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivables | Following is a summary of accounts receivable as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Accounts receivable – Trade $ 754,783 $ 674,823 Less: Provision for doubtful debts (133,113 ) (162,138 ) $ 621,670 $ 512,685 |
Schedule of Concentrations of Accounts Receivable | At March 31, 2017 and 2016, the Company had following concentrations of accounts receivables with customers: Customer March 31, 2017 March 31, 2016 Megamedia 63.68 % 28.92 % DEN Networks 15.99 % 11.97 % Topas 7.24 % 1.62 % Dish Media 5.88 % 5.55 % Sri Lanka Telecom 1.42 % 0.66 % Mediatama 1.29 % 1.86 % MediaNet 1.14 % 3.54 % Digicable 0.00 % 23.68 % Fastway 0.00 % 5.54 % Technosat 0.00 % 3.15 % Pentavision 0.00 % 4.51 % Other 10 receivables 3.36 % 9.00 % 100 % 100 % |
Prepaid Expenses and Other Cu31
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Following is a summary of prepaid expenses and other current assets as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Security deposits $ 29,621 $ 24,132 WHT receivable 201,362 205,632 Staff loan and advances 100 1,052 Travel advance 295 - Supplier advance 4,398 1,786 ESC receivable 5,826 6,131 Insurance prepayment 1,435 1,632 Prepayments 10,580 1,526 Other receivables 3,759 7,854 $ 257,376 $ 249,745 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Following table illustrates net book value of property and equipment as at March 31, 2017 and 2016: March 31, 2017 March 31, 2016 Office equipment $ 9,465 $ 19,802 Furniture & fittings 139,377 220,526 Computer equipment (Data Processing Equipment) 131,909 479,273 Improvements to lease hold assets 1,894 1,993 Website Development 13,768 10,488 296,413 732,082 Accumulated depreciation and amortization (248,326 ) (626,292 ) Net fixed assets $ 48,087 $ 105,790 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Following table illustrates the movement in intangible assets as at March 31, 2017 and 2016: March 31, 2017 March 31, 2016 Opening Balance $ 382,352 $ 327,542 Add: Costs capitalized during the year 365,216 276,197 Less: Amount Written-off (147,326 ) (202,311 ) Translational gain (19,343 ) (19,076 ) Net Intangible Assets $ 580,899 $ 382,352 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Short-term Borrowings | Following is a summary of short-term borrowings as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 PAN Asia Bank – Short term overdraft $ 460,088 $ 213,804 Prosperous Capital 8,997 - Commercial bank credit card 4,753 - Yenom (Pvt.) Limited - 13,636 HSBC – Short term overdraft - 138 $ 473,838 $ 227,578 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | The taxes payable comprise of items listed below as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 PAYE $ 73,611 $ 33,718 VAT payable 14 - Stamp Duty Payable 48 51 Tax payable 8,996 5,209 $ 82,669 $ 38,978 |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accruals and Other Payables | Following is a summary of accruals and other payables as at March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Audit fee payable $ 20,906 $ 4,715 Accruals 81,696 7,860 Other payables 67,144 70,866 $ 169,746 $ 83,441 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Cost of Revenue [Abstract] | |
Summary of Cost of Revenue | Following is the summary of cost of revenue for the years ending March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Purchases $ 41,959 $ 48,993 Implementation and onsite support cost 42,406 28,239 Product development cost written off 147,326 202,311 Consultancy, contract basis employee cost 19,950 12,204 Developer support and implementation 87,546 25,561 Cost of services 5,740 4,891 $ 344,927 $ 322,199 |
General and Administrative Ex38
General and Administrative Expenses (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
General and Administrative Expense [Abstract] | |
Schedule of General and Administrative Expenses | Following is the summary of general and administrative expenses for the years ending March 31, 2017 and 2016; March 31, 2017 March 31, 2016 Directors remuneration $ 108,827 $ 113,302 EPF 46,317 42,797 ETF 11,579 10,698 Bonus 24,701 41,063 Vehicle allowance 54,393 54,325 Staff welfare 24,572 25,081 Penalties / Late payment charges 5,105 6,421 Office rent 76,725 65,889 Electricity charges 15,959 20,543 Office maintenance 18,046 20,156 Telephone charges 12,177 13,073 Travelling expense 3,640 38,263 Legal fees 499 946 Audit fees 45,120 5,235 Printing and stationery 1,855 2,873 Office expenses 2,383 3,432 Computer maintenance 5,757 22,187 Internet charges 13,449 11,831 Courier and postage 678 750 Security charges 3,688 3,886 Training and development 169 425 Insurance expense 2,264 1,882 Professional fees 21,990 405,836 Gratuity 29,684 2,613 Secretarial fees 10,288 649 Irrecoverable Tax 46,631 34,012 Software Rentals 25,099 21,625 Other professional services 233,762 9,164 Consulting fee 78,500 - Fee and Subscription 2,695 - Government taxes 199 - Stamp Duty expense 1,403 - Other expenses 1,572 3,580 $ 929,726 $ 982,547 |
Selling and Distribution Expe39
Selling and Distribution Expenses (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Selling and Marketing Expense [Abstract] | |
Schedule of Selling and Distribution Expenses | Following is the summery of selling and distribution expenses for the years ending March 31, 2017 and 2016 March 31, 2017 March 31, 2016 Marketing Expenses $ 1,662 $ 29,553 Vehicle hire charges 6,384 6,919 Foreign Travel 2,432 3,786 Visa expenses 251 347 Vehicle running expenses 4,788 2,955 Gift and donations 203 - $ 15,720 $ 43,560 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income Tax expense consist of the following; March 31, 2017 March 31, 2016 Current Taxes Nevada $ - $ - Sri Lanka - - Singapore 11,934 10,575 Total Income Tax Expense $ 11,934 $ 10,575 |
Schedule of Deferred Tax Assets and Liabilities | The Components of deferred tax assets and Liabilities are as follows; March 31, 2017 March 31, 2016 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation 36,165 21,173 Less: Valuation allowance 5,301 3,103 Total deferred tax asset (non-current) 30,864 18,070 Total deferred tax liability Nil Nil |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Common Shares Issued | During the year ended March 31, 2017, the Company issued following common shares: Date Type No. of Shares Valuation 04/22/2016 Stock issued to PPM-2 investor 188,000 $ 141,000 04/22/2016 Stock issued to PPM-2 investor 13,334 10,001 04/27/2016 Stock issued for services 46,133 34,600 04/27/2016 Stock issued for services 240,000 180,000 04/27/2016 Stock issued as payment for accrued interest 20,000 15,000 507,467 $ 380,600 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantee Provided by Existed Company | Guarantees provided by the company existed on the balance sheet date are as follows: Date Description Amount 09/23/2011 Performance Bond for BOC Tender $ 10,009 05/15/2013 Guarantee for Lanka Clear 2,103 07/31/2014 Guarantee for SLT 566 10/08/2015 Guarantee for LOLC 1,599 $ 14,277 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ 789,326 | $ 559,955 | $ (75,819) |
Current liabilities exceeded current assets | 907,817 | 323,532 | |
Shareholders' deficit | 1,416,833 | 1,011,988 | $ 790,589 |
Employee provident fund | 269,781 | ||
Employee trust fund | 114,631 | ||
Net cash provided by operating activities | $ 123,535 | $ 448,311 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Operating Activities (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net profit/ (loss) | $ (789,326) | $ (559,955) | $ 75,819 |
Cost incurred for Duo World | 375,612 | 411,862 | 505,750 |
Net profit/ (loss) excluding Duo World Expenses | $ (413,714) | $ (148,093) | $ 581,569 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash equivalents | ||
Property, plant and equipment, depreciation methods | straight-line method | |
Deferred revenue | $ 16,420 | 9,954 |
Unbilled receivables | 70,174 | 31,154 |
Product research and development cost | 365,216 | 276,197 |
Advertising expense | ||
Computer Equipment and Website Development [Member] | ||
Estimated useful life | 5 years | |
Maximum [Member] | ||
Estimated useful life | 15 years | |
Duo Software (Pvt.) Limited and Duo Software Pte Limited [Member] | ||
Ownership interest | 100.00% | |
Duo Software India (Private) Limited [Member] | ||
Ownership interest | 100.00% |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Schedule of Provision For Doubtful Debts Based on Period Outstanding (Details) - Trade Receivables Outstanding [Member] | 12 Months Ended |
Mar. 31, 2017 | |
Over 24 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 100.00% |
Over 18 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 50.00% |
Over 15 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 25.00% |
Over 12 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 10.00% |
Over 9 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 5.00% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Schedule of Estimated Useful lives of Fixed assets (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Furniture & Fittings [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Improvements to Lease Hold Assets [Member] | |
Estimated useful Lives of property and equipment, description | Lease term |
Office Equipment [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Computer Equipment (Data Processing Equipment) [Member] | |
Estimated useful Lives of property and equipment | 3 years |
Website Development [Member] | |
Estimated useful Lives of property and equipment | 4 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Schedule of Concentrations of Revenue (Details) - Revenue [Member] | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Concentrations of revenue percentage | 100.00% | 100.00% |
Megamedia [Member] | ||
Concentrations of revenue percentage | 35.72% | 32.96% |
DEN Networks [Member] | ||
Concentrations of revenue percentage | 33.74% | 27.12% |
Hutchison [Member] | ||
Concentrations of revenue percentage | 7.45% | 14.36% |
Topas TV [Member] | ||
Concentrations of revenue percentage | 7.23% | 2.08% |
Mediatama [Member] | ||
Concentrations of revenue percentage | 2.95% | 5.83% |
Sri Lanka Telecom [Member] | ||
Concentrations of revenue percentage | 1.50% | 0.55% |
Dish Media [Member] | ||
Concentrations of revenue percentage | 0.60% | 6.24% |
HelloCorp [Member] | ||
Concentrations of revenue percentage | 2.22% | 3.63% |
Bank of Ceylon [Member] | ||
Concentrations of revenue percentage | 1.64% | 0.00% |
Other misc. customers [Member] | ||
Concentrations of revenue percentage | 6.95% | 7.23% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Sales by Products (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | $ 1,116,324 | $ 1,394,172 |
Duo Subscriber [Member] | ||
Revenue | 928,905 | 1,122,959 |
Duo Contact [Member] | ||
Revenue | 159,393 | 260,573 |
Software Hosting and Reselling [Member] | ||
Revenue | 16,771 | 10,640 |
Facetone [Member] | ||
Revenue | $ 11,255 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounting Policies [Abstract] | ||
Foreign Currency Translation gains (losses),beginning | $ 76,829 | $ 84,309 |
Translation rate gain (loss) | 35,932 | (7,480) |
Foreign Currency Translation gains (losses),ending | $ 112,761 | $ 76,829 |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details Narrative) - USD ($) | Dec. 03, 2014 | Mar. 31, 2017 | Mar. 31, 2016 |
Number of stock issued during period, shares | 507,467 | ||
Number of stock issued during period | $ 151,001 | ||
Common stock, shares issued | 38,567,467 | 38,060,000 | |
Common stock, shares outstanding | 38,567,467 | 38,060,000 | |
Duo Software (Pvt.) Limited (DSSL) [Member] | |||
Number of stock issued during period | $ 310,000 | ||
Common stock, shares issued | 5,000,000 | ||
Common stock, shares outstanding | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Series A Preferred Stock [Member] | |||
Number of stock issued during period, shares | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 28,000,000 | ||
Duo Software Pte Limited (DSS) [Member] | |||
Common stock, shares issued | 10,000 | ||
Common stock, shares outstanding | 10,000 | ||
Duo Software Pte Limited (DSS) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 2,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte Limited (DSS) [Member] | |||
Shareholder acquisition, percent | 100.00% |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable - Trade | $ 754,783 | $ 674,823 |
Less: Provision for doubtful debts | (133,113) | (162,138) |
Accounts receivable | $ 621,670 | $ 512,685 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Concentrations of Accounts Receivable (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Concentrations of accounts receivable | 100.00% | 100.00% |
Megamedia [Member] | ||
Concentrations of accounts receivable | 63.68% | 28.92% |
DEN Networks [Member] | ||
Concentrations of accounts receivable | 15.99% | 11.97% |
Topas [Member] | ||
Concentrations of accounts receivable | 7.24% | 1.62% |
Dish Media [Member] | ||
Concentrations of accounts receivable | 5.88% | 5.55% |
Sri Lanka Telecom [Member] | ||
Concentrations of accounts receivable | 1.42% | 0.66% |
Mediatama [Member] | ||
Concentrations of accounts receivable | 1.29% | 1.86% |
MediaNet [Member] | ||
Concentrations of accounts receivable | 1.14% | 3.54% |
Digicable [Member] | ||
Concentrations of accounts receivable | 0.00% | 23.68% |
Fastway [Member] | ||
Concentrations of accounts receivable | 0.00% | 5.54% |
Technosat [Member] | ||
Concentrations of accounts receivable | 0.00% | 3.15% |
Pentavision [Member] | ||
Concentrations of accounts receivable | 0.00% | 4.51% |
Other 10 Receivables [Member] | ||
Concentrations of accounts receivable | 3.36% | 9.00% |
Prepaid Expenses and Other Cu54
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Security deposits | $ 29,621 | $ 24,132 |
WHT receivable | 201,362 | 205,632 |
Staff loan and advances | 100 | 1,052 |
Travel advance | 295 | |
Supplier advance | 4,398 | 1,786 |
ESC receivable | 5,826 | 6,131 |
Insurance prepayment | 1,435 | 1,632 |
Prepayments | 10,580 | 1,526 |
Other receivables | 3,759 | 7,854 |
Prepaid expenses and other current assets | $ 257,376 | $ 249,745 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 62,517 | $ 37,359 |
Property and Equipment - Schedu
Property and Equipment - Schedule of property and Equipment (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Property and equipment gross | $ 296,413 | $ 732,082 |
Less: Accumulated depreciation and amortization | (248,326) | (626,292) |
Net fixed assets | 48,087 | 105,790 |
Office Equipment [Member] | ||
Property and equipment gross | 9,465 | 19,802 |
Furniture & Fittings [Member] | ||
Property and equipment gross | 139,377 | 220,526 |
Computer Equipment (Data Processing Equipment) [Member] | ||
Property and equipment gross | 131,909 | 479,273 |
Improvements to Lease Hold Assets [Member] | ||
Property and equipment gross | 1,894 | 1,993 |
Website Development [Member] | ||
Property and equipment gross | $ 13,768 | $ 10,488 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Aseets (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Opening Balance | $ 382,352 | $ 327,542 |
Add: Costs capitalized during the period | 365,216 | 276,197 |
Less: Amount written -off | (147,326) | (202,311) |
Translational loss | (19,343) | (19,076) |
Net Intangible Assets | $ 580,899 | $ 382,352 |
Short-term Borrowings (Details
Short-term Borrowings (Details Narrative) - Pan Asia Banking Corporation PLC [Member] - Maximum [Member] | Mar. 31, 2017USD ($) |
Interest Rate of 9.61% Per Annum [Member] | |
Bank overdrafts | $ 101,846 |
Bank overdraft facility interest rate | 9.61% |
Interest Rate of 11.35% Per Annum [Member] | |
Bank overdrafts | $ 207,383 |
Bank overdraft facility interest rate | 11.35% |
Short-term Borrowings - Summary
Short-term Borrowings - Summary of Short term Borrowings (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Short Term Borrowings | $ 473,838 | $ 227,578 |
PAN Asia Bank - Short term overdraft [Member] | ||
Short Term Borrowings | 460,088 | 213,804 |
Prosperous Capital [Member] | ||
Short Term Borrowings | 8,997 | |
Commercial Bank Credit Card [Member] | ||
Short Term Borrowings | 4,753 | |
Yenom (Pvt.) Limited [Member] | ||
Short Term Borrowings | 13,636 | |
HSBC - Short term overdraft [Member] | ||
Short Term Borrowings | $ 138 |
Due to Related Parties (Details
Due to Related Parties (Details Narrative) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Related Party Transactions [Abstract] | ||
Due to related parties short term | $ 361,785 | $ 163,738 |
Due to related parties long term | $ 1,168,866 | $ 1,194,668 |
Taxes Payables - Schedule of Ta
Taxes Payables - Schedule of Taxes Payable (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Taxes payable | $ 82,669 | $ 38,978 |
PAYE [Member] | ||
Taxes payable | 73,611 | 33,718 |
VAT Payable [Member] | ||
Taxes payable | 14 | |
Stamp Duty Payable [Member] | ||
Taxes payable | 48 | 51 |
Tax Payable [Member] | ||
Taxes payable | $ 8,996 | $ 5,209 |
Accruals and Other Payables - S
Accruals and Other Payables - Schedule of Accruals and Other Payables (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Payables and Accruals [Abstract] | ||
Audit fee payable | $ 20,906 | $ 4,715 |
Accruals | 81,696 | 7,860 |
Other payables | 67,144 | 70,866 |
Accruals and other payables | $ 169,746 | $ 83,441 |
Cost of Revenue - Summary of Co
Cost of Revenue - Summary of Cost of Revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cost of Revenue [Abstract] | ||
Purchases | $ 41,959 | $ 48,993 |
Implementation and onsite support cost | 42,406 | 28,239 |
Product development cost written off | 147,326 | 202,311 |
Consultancy, contract basis employee cost | 19,950 | 12,204 |
Developer support and implementation | 87,546 | 25,561 |
Cost of services | 5,740 | 4,891 |
Cost of revenue | $ 344,927 | $ 322,199 |
General and Administrative Ex64
General and Administrative Expenses - Schedule of General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Software Rentals | $ 87,546 | $ 25,561 |
General and Administrative Expenses | 929,726 | 982,547 |
General and Administrative Expense [Member] | ||
Directors remuneration | 108,827 | 113,302 |
EPF | 46,317 | 42,797 |
ETF | 11,579 | 10,698 |
Bonus | 24,701 | 41,063 |
Vehicle allowance | 54,393 | 54,325 |
Staff welfare | 24,572 | 25,081 |
Penalties / Late payment charges | 5,105 | 6,421 |
Office rent | 76,725 | 65,889 |
Electricity charges | 15,959 | 20,543 |
Office maintenance | 18,046 | 20,156 |
Telephone charges | 12,177 | 13,073 |
Travelling expense | 3,640 | 38,263 |
Legal fees | 499 | 946 |
Audit fees | 45,120 | 5,235 |
Printing and stationery | 1,855 | 2,873 |
Office expenses | 2,383 | 3,432 |
Computer maintenance | 5,757 | 22,187 |
Internet charges | 13,449 | 11,831 |
Courier and postage | 678 | 750 |
Security charges | 3,688 | 3,886 |
Training and development | 169 | 425 |
Insurance expense | 2,264 | 1,882 |
Professional fees | 21,990 | 405,836 |
Gratuity | 29,684 | 2,613 |
Secretarial fees | 10,288 | 649 |
Irrecoverable Tax | 46,631 | 34,012 |
Software Rentals | 25,099 | 21,625 |
Other professional services | 233,762 | 9,164 |
Consulting fee | 78,500 | |
Fee and Subscription | 2,695 | |
Government taxes | 199 | |
Stamp Duty expense | 1,403 | |
Other expenses | 1,572 | 3,580 |
General and Administrative Expenses | $ 929,726 | $ 982,547 |
Selling and Distribution Expe65
Selling and Distribution Expenses - Schedule of Selling and Distribution Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Selling and distribution expenses | $ 15,720 | $ 43,560 |
Selling and Distribution Expenses [Member] | ||
Marketing Expenses | 1,662 | 29,553 |
Vehicle hire charges | 6,384 | 6,919 |
Foreign Travel | 2,432 | 3,786 |
Visa expenses | 251 | 347 |
Vehicle running expense | 4,788 | 2,955 |
Gift and donations | 203 | |
Selling and distribution expenses | $ 15,720 | $ 43,560 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred tax valuation allowance | $ 5,301 | $ 3,103 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Total Income Tax Expense | $ 11,934 | $ 10,575 |
Current Taxes Nevada [Member] | ||
Total Income Tax Expense | ||
Sri Lanka [Member] | ||
Total Income Tax Expense | ||
Singapore [Member] | ||
Total Income Tax Expense | $ 11,934 | $ 10,575 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Carry forward Losses and Unabsorbed Depreciation | $ 36,165 | $ 21,173 |
Less: Valuation allowance | 5,301 | 3,103 |
Total deferred tax asset (non-current) | 30,864 | 18,070 |
Total deferred tax liability |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock conversion description | One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. | |
Number of preferred shares converted into common shares | 10 | |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Equity - Schedule of Common Sha
Equity - Schedule of Common Shares Issued (Details) | 12 Months Ended |
Mar. 31, 2017USD ($)shares | |
Number of common stock issued, shares | shares | 507,467 |
Number of common stock issued | $ | $ 151,001 |
04/22/2016 [Member] | Stock Issued to PPM-2 Investor [Member] | |
Number of common stock issued, shares | shares | 188,000 |
Number of common stock issued | $ | $ 141,000 |
04/22/2016 [Member] | Stock Issued to PPM-2 Investor [Member] | |
Number of common stock issued, shares | shares | 13,334 |
Number of common stock issued | $ | $ 10,001 |
04/27/2016 [Member] | Stock Issued for Services [Member] | |
Number of common stock issued, shares | shares | 46,133 |
Number of common stock issued | $ | $ 34,600 |
04/27/2016 [Member] | Stock Issued for Services [Member] | |
Number of common stock issued, shares | shares | 240,000 |
Number of common stock issued | $ | $ 180,000 |
04/27/2016 [Member] | Stock Issued as Payment for Accrued Interest [Member] | |
Number of common stock issued, shares | shares | 20,000 |
Number of common stock issued | $ | $ 15,000 |
Commitments and Contingencies71
Commitments and Contingencies (Details Narrative) - Happy Building Management [Member] | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Sri Lanka Office [Member] | |
Lease commitment amount | $ 119,952 |
Lease term | 3 years |
Indian Office [Member] | April 1, 2017 [Member] | |
Lease commitment amount | $ 1,259 |
Lease term | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Guarantee Provided by Existed Company (Details) - USD ($) | Oct. 08, 2015 | Jul. 31, 2014 | May 15, 2013 | Sep. 23, 2011 | Mar. 31, 2017 | Aug. 10, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Guarantee Description | Guarantee for LOLC | Guarantee for SLT | Guarantee for Lanka Clear | Performance Bond for BOC Tender | ||
Guarantee Amount | $ 566 | $ 2,103 | $ 10,009 | $ 14,277 | $ 1,599 |