Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Aug. 13, 2019 | Sep. 29, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | DUO WORLD INC | ||
Entity Central Index Key | 0001635136 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 49,303,740 | ||
Entity Common Stock, Shares Outstanding | 65,754,296 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 2,698 | $ 25,798 |
Accounts receivable - trade | 125,044 | 369,232 |
Prepaid expenses and other current assets | 82,282 | 523,000 |
Accrued revenue | 102,851 | 148,714 |
Total Current Assets | 312,875 | 1,066,744 |
Non Current Assets | ||
Property and equipment, net of accumulated depreciation of $226,882 and $255,654 respectively | 23,513 | 43,494 |
Intangible assets, net | 746,158 | 732,939 |
Total Non Current Assets | 769,671 | 776,433 |
Total Assets | 1,082,546 | 1,843,177 |
Current Liabilities | ||
Accounts payable | 489,082 | 367,620 |
Payroll, employee benefits, severance | 636,637 | 458,717 |
Short term borrowings | 531,675 | 690,139 |
Due to related parties | 824,991 | 524,955 |
Payable for acquisition | 185,762 | 185,762 |
Taxes payable | 157,171 | 126,716 |
Accruals and other payables | 71,675 | 131,550 |
Lease creditors | 10,921 | 9,696 |
Deferred revenue | 6,995 | |
Total Current liabilities | 2,914,909 | 2,495,155 |
Long Term Liabilities | ||
Due to related parties | 1,345,968 | 1,348,193 |
Lease creditors | 10,129 | |
Employee benefit obligation | 104,700 | 154,032 |
Total Long Term liabilities | 1,450,668 | 1,512,354 |
Total liabilities | 4,365,577 | 4,007,509 |
Commitments and contingencies (Note 18) | ||
Shareholders' Deficit | ||
Ordinary shares: $0.001 par value per share; 400,000,000 shares authorized; 65,754,296 and 52,590,654 shares issued and outstanding, respectively | 65,754 | 52,591 |
Convertible series "A" preferred shares: $0.001 par value per share; 10,000,000 shares authorized; 5,000,000 and 5,000,000 shares issued and outstanding, respectively | 5,000 | 5,000 |
Additional paid in capital | 11,543,336 | 5,767,533 |
Accumulated deficit | (15,163,357) | (8,059,437) |
Accumulated other comprehensive income | 266,235 | 69,981 |
Total shareholders' deficit | (3,283,032) | (2,164,332) |
Total Liabilities and Shareholders' Deficit | $ 1,082,546 | $ 1,843,177 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property and equipment | $ 226,882 | $ 255,654 |
Ordinary stock, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 400,000,000 | 400,000,000 |
Ordinary stock, shares issued | 65,754,296 | 52,590,654 |
Ordinary stock, shares outstanding | 65,754,296 | 52,590,654 |
Convertible series "A" preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible series "A" preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible series "A" preferred stock, shares issued | 5,000,000 | 5,000,000 |
Convertible series "A" preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 637,730 | $ 791,876 |
Cost of revenue (exclusive of depreciation presented below) | (242,025) | (311,292) |
Gross Income | 395,705 | 480,584 |
Operating Expenses | ||
General and administrative | 372,318 | 514,095 |
Salaries and casual wages | 237,166 | 391,569 |
Stock based compensation | 3,010,410 | |
Selling and distribution | 29,643 | 13,268 |
Professional services - investment advisory | 442,909 | 1,352,113 |
Depreciation | 21,568 | 30,962 |
Amortization of web site development | 1,792 | 358 |
Allowance for bad debts | 334,005 | 230,821 |
Employee benefit obligation | 152,719 | |
Total operating expenses | 1,439,401 | 5,696,315 |
Loss from operations | (1,043,696) | (5,215,731) |
Other income (expenses): | ||
Interest expense | (224,810) | (89,044) |
Gain on disposals of property and equipment | 13 | 128 |
Other income | 30,614 | 64 |
Bank charges | (3,094) | (4,288) |
Exchange (loss) / gain | (33,721) | 616 |
Total other income (expenses) | (230,997) | (92,524) |
Loss before provision for income taxes: | (1,274,693) | (5,308,255) |
Tax Expense : | ||
Provision for income taxes | ||
Foreign taxes - withheld | (44,254) | (265,565) |
Net loss | $ (1,318,947) | $ (5,573,819) |
Basic and Diluted Loss per Share | $ (0.01) | $ (0.01) |
Basic and Diluted Weighted Average Number of Shares Outstanding | 113,506,375 | 91,595,863 |
Comprehensive Income (Loss): | ||
Unrealized foreign currency translation (loss) gain | $ 196,255 | $ (42,780) |
Net loss | (1,318,947) | (5,573,819) |
Comprehensive loss | $ (1,122,692) | $ (5,616,599) |
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] | Other Comprehensive Income [Member] | Total |
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 | ||||
Stock issued for services | $ 2,549 | 1,856,141 | 1,858,690 | |||
Stock issued for services, shares | 2,549,187 | |||||
Stock issued to employees under ESOP plan | $ 6,474 | 3,003,936 | 3,010,410 | |||
Stock issued to employees under ESOP plan, shares | 6,474,000 | |||||
Conversion of preferred stock to common stock | $ 5,000 | $ (500) | (4,500) | |||
Conversion of preferred stock to common stock, shares | 5,000,000 | (500,000) | ||||
Other comprehensive income/loss | (42,780) | (42,780) | ||||
Net loss | (5,573,819) | (5,573,819) | ||||
Balance at Mar. 31, 2018 | $ 52,591 | $ 5,000 | 5,767,533 | (8,059,437) | 69,981 | (2,164,332) |
Balance, shares at Mar. 31, 2018 | 52,590,654 | 5,000,000 | ||||
Stock issued for services | $ 16 | 3,978 | 3,994 | |||
Stock issued for services, shares | 15,975 | |||||
Stock dividend issued | $ 13,148 | 5,771,826 | (5,784,973) | |||
Stock dividend issued, shares | 13,147,667 | |||||
Other comprehensive income/loss | 196,255 | 196,255 | ||||
Net loss | (1,318,947) | (1,318,947) | ||||
Balance at Mar. 31, 2019 | $ 65,754 | $ 5,000 | $ 11,543,336 | $ (15,163,357) | $ 266,235 | $ (3,283,032) |
Balance, shares at Mar. 31, 2019 | 65,754,296 | 5,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Loss before provision for income taxes | $ (1,318,947) | $ (5,573,819) |
Adjustments to reconcile loss before provision for income taxes to cash provided by operating activities: | ||
Depreciation and amortization | 23,360 | 31,320 |
Bad debts | 334,005 | 230,821 |
Gain on disposals of property and equipment | (13) | (128) |
Previous period adjustments | 3,994 | |
Stock issued to employees under ESOP plan | 3,010,410 | |
Stock issued for services | 1,858,690 | |
Product development cost written off | 74,024 | 113,363 |
Changes in assets and liabilities: | ||
Accounts receivable - trade | (89,817) | 21,617 |
Prepayments | 486,581 | (344,165) |
Accounts payable | 121,462 | 60,004 |
Payroll, employee benefits, severance | 177,920 | 174,431 |
Short term overdraft | (158,464) | 216,302 |
Due to related parties | 300,037 | 163,170 |
Taxes payable | 30,455 | 44,048 |
Lease creditor | (8,904) | 19,825 |
Retirement benefit | (49,332) | 154,032 |
Accruals and other payables | (52,881) | (54,616) |
Taxes Paid | 30,864 | |
Net cash provided by operating activities | (126,494) | 156,297 |
Investing activities: | ||
Acquisition of property and equipment | (3,862) | (28,426) |
Sale proceeds of disposal of property and equipment | 443 | |
Intangible assets | (171,416) | (277,812) |
Net cash used in investing activities | (175,278) | (305,795) |
Financing activities: | ||
Long term - due to related parties | 179,327 | |
Net cash provided by financing activities | 179,327 | |
Effect of exchange rate changes on cash | 278,672 | (29,115) |
Net decrease in cash | (23,100) | 29,829 |
Cash, beginning of period | 25,798 | 25,084 |
Cash, end of period | 2,698 | 25,798 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 160,483 | 85,682 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common shares issued for services | $ 3,994 | $ 1,858,690 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Mar. 31, 2019 | |
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 company based in Sri Lanka, was incorporated on September 22, 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 June 5, 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 August 30, 2007, under the laws of India. On December 3, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). See Note 4 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 - Basis of Presentation The accompanying consolidated financial statements have been prepared 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 Company has incurred a net loss of $1,318,947 and $5,573,819 during the fiscal years ended March 31, 2019 and 2018 respectively. As at March 31, 2019 and March 31, 2018, the Company’s current liabilities exceeded current assets by $2,602,035 and $1,428,411 and Shareholders deficit as at March 31, 2019 and 2018 has been $3,283,032 and $2,164,332. The Company has outstanding statutory dues towards Employee provident fund and employee trust fund as at March 31, 2019 and 2018 $423,354 and $388,630 respectively. The financial statements of the Company have been prepared on a going concern. The Company has incurred losses as mentioned in the above paragraph. However, the same net loss for the year ended March 31, 2019 reduced by $4,254,873 when compared to the year ended March 31, 2018. Further, the Company has entered into contracts with the clients for the products Smooth flow launched during the year 2018-19 and it is confident that the products shall generate sufficient revenue to offset the operating losses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
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, and when 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 has strong policies and procedures for the collection of 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, 2019 and March 31, 2018, 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 converted into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are converted into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are converted at historical rates. Revenues, costs and expenses in foreign functional currencies are converted at the average rate of exchange during the period. Conversion 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 conversion 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 and the profit or loss arising from the sale shall be recognized. 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 During the year, $17,655 assets have been disposed off and the cost and depreciation related to such assets have been removed from the block of 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 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. Post Retirement Benefit Plan The Company has gratuity as it post employment plan for all the eligible employees. The recognition for the gratuity plan is as below:- The expected postretirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The Accumulated postretirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the company expected to be entitled in exchange for those goods and services. The following five steps are followed in recognizing revenue from contracts: ● Identify the contract(s) with a customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract and; ● Recognize revenue when or as the company satisfies a performance obligation. The consideration for the transaction [performance obligation(s)] is determined as per the agreement, contract or invoice for the services and products. Duo Subscribe Duo Subscribe is a solution for Subscriber Management and Billing. With over a decade of experience in developing applications for these sectors and having vast amount of domain knowledge on how these sector operate, Duo Subscribe is eminently capable of meeting the complex and rigorous demands of businesses around the world. Facetone ‘Facetone’ is a communication and collaboration platform, which provides users the capability of operating and running a high performance contact center operation efficiently while saving cost and maximizing revenue opportunities. In-built FaceTone CRM feature provides the opportunity for contact centers to deliver a superior customer experience and build a better relationship by linking customers and data in real time. Smoothflow Smoothflow automates customer engagements, including building ChatBots, VoiceBots and IoTBots to deliver an Omni channel customer service experience. The product uses the power of artificial intelligence to keep improving the conversational flow and user experience. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on premise Software– The company sells a perpetual nonexclusive license to the customer and enables the customer to install and use the software and its documentation. Price per customer varies based on the selection of the products licensed, the number of site installations and the number of authorized users. The products offered on this basis are “Duo Subscribe” and “Facetone-enterprise.” The company charge an Implementation fee on key milestone basis for on premise customers upon completion of performance obligation Enterprise Software Solutions– Company distributes its software product ‘Facetone- hosted version” with third party telecommunication companies. It’s a revenue model where the Tele-communication provider hosts DUO’s software applications and makes them available to its customers over the Internet for a monthly subscription fee. Company charge telecommunication provider a monthly license fee calculated according to number of licenses sold. Cloud Services- Company sells its product Smoothflow as a “SAAS” product (Software-as-a-Service) and services are provided on a monthly subscription model. AMC Services- The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Company’s software products. Initial annual maintenance fees are bundled with license fees in the initial licensing period and recognized when the performance obligation of license fee is met. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. Hardware products- Hardware product means a combination of computer equipment, electronics and the applicable operating system. The company provide hardware with software products to the customer if it is a requirement as per the software license agreement. The company changes hardware cost with the initial implementation and license fee. For the period ended March 31, 2019 and 2018, the Company received only cash as consideration for sale of licenses and related services and not in kind. For the years ended March 31, 2019 and 2018, the Company had following concentrations of revenues with customers: Customer March 31, 2019 March 31, 2018 A 65.17 % 46.48 % B 11.64 % 9.95 % C 6.72 % 3.82 % D 3.62 % 1.85 % E 3.28 % 3.06 % F 2.96 % 2.32 % G 0.00 % 10.27 % H 0.32 % 8.06 % I 1.50 % 6.33 % J 0.38 % 3.47 % Other Misc. customers 4.41 % 4.39 % 100.00 % 100.00 % For the years ended March 31, 2019 and 2018, the company had following sales by products: Product March 31, 2019 March 31, 2018 Duo Subscriber $ 512,082 $ 487,356 Facetone 103,359 203,739 Software hosting and reselling 20,853 19,288 Smoothflow 1,253 - Development and other Services 183 81,493 $ 637,730 $ 791,876 Significant Judgments The Company’s contract with customers includes multiple Software products and services to deliver and in the most of the contract the price of the separately identifiable features are stated separately. In the event the price of the multiple product and services are not mentioned in the agreement the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The company determines standalone selling price for performance obligations based on overall pricing strategies, which consider market in which the company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contract with customers deferred revenue and accrued revenue/ unbilled accounts receivables are recognized by the Company. We record a receivable when revenue is recognized prior to invoicing and receipt of payments, or deferred revenue when the revenue is recognized subsequent to invoicing. Revenue under Software Implementation contracts are invoice on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and customer sign the user acceptance test (UAT). The company invoices software license fee and royalty fee at the end of the period according to the customer agreement and accrued revenue/ unbilled revenue is recognize for the relevant period. The initial annual maintenance fee is bundled with the initial license fee and is invoiced at beginning of the period and The Company recognizes as deferred revenue in the financial statements and is ratably recognized over a period of service. The Company recognized $74,224 revenue as at March 31, 2019 from the contract with LOLC as the performance obligations are completed in this year, and has a contract balance of $97,675 from the same customer as at March 31, 2019. Company is waiting for the customer confirmation to deliver the balance product and services. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Refer Note- 5 for “Accounts receivables and Provision for doubtful debts” Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s executive reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at March 31, 2019. Cost of Revenue Cost of revenue mainly includes cost for server space, 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 year ended March 31, 2019 and 2018, product research and development cost of $171,416 and $277,812, respectively, were capitalized as “Intangible assets.” Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the period ended March 31, 2019 and 2018. 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. Deferred tax assets and liabilities are not recognized in the current financials due to recurring tax losses and the uncertainty of the realization of the tax allowances. Withholding taxes deducted from the source of income from foreign operations are debited to profit and loss account due to non-refundable status. 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, 2019, includes only foreign currency conversion 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 period ending on March 31, 2019 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 196,255 Balance, March 31, 2019 $ 266,235 Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, September 2017 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10 and ASU 2016-12, ASU 2017-13 and ASU 2017-14, respectively (collectively, Topic 606). Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Topic 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates will be required within the revenue recognition process than are required under current GAAP (Accounting Standards Codification 605). Topic 606 is effective for the Company’s annual and interim reporting periods beginning April 1, 2018 (“effective date”). The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. The Company has adopted implementation of ASC 606 with effect from April 1, 2018 and as a result of it $19,455 impact which was provided as at March 31, 2018 has been reversed. |
Reverse Recapitalization
Reverse Recapitalization | 12 Months Ended |
Mar. 31, 2019 | |
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 and 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, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | Note 5 – Accounts Receivable Following is a summary of accounts receivable as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Accounts receivable – Trade $ 148,933 $ 576,775 Less: Provision for doubtful debts (23,889 ) (207,543 ) $ 125,044 $ 369,232 At March 31, 2019 and March 31, 2018, the Company had following concentrations of accounts receivable with customers: Customer March 31, 2019 March 31, 2018 A 27.98 % 1.86 % B 25.80 % 5.04 % C 16.83 % 0.00 % D 10.23 % 7.85 % E 6.43 % 3.39 % F 6.32 % 4.61 % G 2.48 % 1.91 % H 0.00 % 14.83 % I 0.00 % 56.37 % Other receivables 3.94 % 4.14 % 100.00 % 100.00 % |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Security deposits $ 56,878 $ 67,348 ESC receivable 11,126 5,688 Supplier advance 8,108 136 Prepayments 577 1,370 Prepayment for other professional services - 438,598 Insurance prepayment - 1,160 Travel advance 28 - Other receivables 5,565 8,700 $ 82,282 $ 523,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Office equipment $ 1,812 $ 2,054 Furniture & fittings 123,678 138,752 Computer equipment (Data Processing Equipment) 91,814 122,443 Improvements to lease hold assets 18,729 21,221 Website Development 14,362 14,678 250,395 299,148 Accumulated depreciation and amortization (226,882) (255,654) Net fixed assets $ 23,513 $ 43,494 Depreciation and amortization expense for period ended March 31, 2019 and 2018 was $23,360 and $31,320 respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 – Intangible Assets Intangible assets comprise of capitalization of certain costs pertaining to product development, which meet the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at March 31, 2019 and March 31, 2018: March 31, 2019 March 31, 2018 Opening Balance $ 732,939 $ 580,899 Add: Costs capitalized during the year 171,416 277,812 Less: Amount written-off (74,024 ) (113,363 ) Translational gain/ (loss) (84,173 ) (12,409 ) Net Intangible Assets $ 746,158 $ 732,939 |
Short Term Borrowings
Short Term Borrowings | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | Note 9 – Short Term Borrowings Following is a summary of short-term borrowings as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 PAN Asia Bank – Short term overdraft $ 471,350 $ 440,609 Commercial Bank 45,950 53,571 Senkadagala Finance 14,375 33,323 PAN Asia Bank – Loan - 162,636 $ 531,675 $ 690,139 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an average interest rate of 15.55% per annum. |
Due to Related Parties
Due to Related Parties | 12 Months Ended |
Mar. 31, 2019 | |
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 officers, directors or principal shareholders in the normal course of business. 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, 2019, and March 31, 2018, the Company owed directors $824,991 and $524,955, respectively. Due to Related Parties – Long term Loan 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, 2019 and March 31, 2018, the Company owed directors $1,345,968 and $1, 348,193 respectively. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Mar. 31, 2019 | |
Taxes Payable [Abstract] | |
Taxes Payable | Note 11 – Taxes Payable Taxes payable comprised of items listed below as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 PAYE $ 143,766 $ 117,805 Stamp duty payable 17 34 Tax payable 11,261 8,877 WHT payable 2,127 - $ 157,171 $ 126,716 |
Accruals and Other Payables
Accruals and Other Payables | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Audit fee payable $ 1,770 $ 22,260 Accruals 49,114 29,128 Other payables 17,700 78,745 Accrued interest 3,090 1,417 $ 71,675 $ 131,550 |
Cost of Revenue
Cost of Revenue | 12 Months Ended |
Mar. 31, 2019 | |
Cost of Revenue [Abstract] | |
Cost of Revenue | Note 13 – Cost of Revenue Following is the summary of cost of revenue for the period ending March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Purchases $ 24,636 $ 50,517 Implementation and onsite support cost 53,465 27,303 Product development cost written off 74,024 113,363 Consultancy, contract basis employee cost 2,828 6,773 Developer support and implementation 78,923 68,235 Development services 2,372 37,706 Cost of services 5,777 7,395 $ 242,025 $ 311,292 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Mar. 31, 2019 | |
General And Administrative Expenses | |
General and Administrative Expenses | Note 14 – General and Administrative Expenses Following is the summary of general and administrative expenses for the period ending March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Directors remuneration $ 138,235 $ 151,317 EPF 9,715 10,635 ETF 2,429 2,659 Vehicle allowance 28,441 37,539 Office rent 40,808 66,649 Audit fees 25,730 30,001 Legal fees 18,418 18,675 Professional fees 15,714 12,567 Office maintenance 12,758 11,482 OTC market fees 12,000 5,000 Internet charges 11,706 12,644 Electricity charges 9,283 14,110 Software Rentals 7,182 24,907 Staff welfare 7,131 10,832 Telephone charges 6,835 8,506 Consulting fee 3,535 51,300 Irrecoverable Tax 297 19 Travelling expense - 3,630 Printing and stationery 650 1,141 Office expenses - 2,732 Computer maintenance 1,978 4,565 Courier and postage 676 968 Security charges 1,138 2,815 Insurance expense - 1,611 Gratuity 4,187 7,369 Secretarial fees 724 730 Other professional services 4,789 7,443 Fee and Subscription 1,790 3,025 Stamp Duty expense 203 1,245 Public relations 1,056 3,362 Event coordination expenses - 2,580 Penalties / Late payment charges 2,528 1,273 Accounts write-off 2,071 - Other expenses 309 765 $ 372,318 $ 514,095 |
Selling and Distribution Expens
Selling and Distribution Expenses | 12 Months Ended |
Mar. 31, 2019 | |
Selling And Distribution Expenses | |
Selling and Distribution Expenses | Note 15 – Selling and Distribution Expenses Following is the summary of selling and distribution expenses for the period ending on March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Marketing Expenses $ 18,432 $ 1,224 Vehicle hire charges 5,657 6,192 Vehicle running expenses 5,555 4,644 Foreign Travel - 102 Gift and donations - 1,106 $ 29,643 $ 13,268 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 – Income Taxes Income Tax expense consists of the following; March 31, 2019 March 31, 2018 Current Taxes Nevada $ - $ - Sri Lanka- Taxes withheld 44,254 265,565 Singapore - - Total Income Tax Expense $ 44,254 $ 265,565 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, 2019 March 31, 2018 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation - - Less: Valuation allowance - - Total deferred tax asset (non-current) - - 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, 2018 Company reversed differed tax asset considering the continuous tax losses incurred in the subsidiary company and it is uncertain that the tax asset will be realized. 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, 2019 and 2018. 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, 2019 and 2018. The Company may be subject to examination by the Internal Revenue Service (“IRS”) and state taxing authorities for 2019 and 2018 tax years. |
Equity
Equity | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 17 – Equity (A) Common Stock As at March 31, 2019, the Company has 400,000,000 authorized common shares having a par value of $0. 001. The common 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, 2019, the Company issued the following common shares: Date Type No. of Shares Valuation 06/01/2018 Stock issued as a Dividend payment 13,147,667 $ 5,784,973 02/28/2019 Stock issued for services 15,975 3,994 $ 5,788,967 (B) Preferred Stock As at March 31, 2019, the Company had 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, 2019 | |
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 $37,894 with Ms. Praveena Sujeevan on November 1, 2018 for a period of 2 years. Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 8,624 5/15/2013 Guarantee for Lanka Clear 1,812 7/31/2014 Guarantee for SLT 488 8/10/2015 Guarantee for LOLC 1,378 5/23/2018 Rent deposit for Delhi apartment 1,331 7/17/2018 Security deposit- Senkadagala Finance 28,708 7/18/2018 Guarantee for Amana bank 547 9/10/2018 Guarantee for ICTA 1,722 10/9/2018 Rent deposit for office space 9,474 $ 54,084 The company has not provided any guarantees other than those mentioned above. |
General
General | 12 Months Ended |
Mar. 31, 2019 | |
General | |
General | 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
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, and when 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 has strong policies and procedures for the collection of 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, 2019 and March 31, 2018, 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 converted into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are converted into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are converted at historical rates. Revenues, costs and expenses in foreign functional currencies are converted at the average rate of exchange during the period. Conversion 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 conversion 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 and the profit or loss arising from the sale shall be recognized. 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 During the year, $17,655 assets have been disposed off and the cost and depreciation related to such assets have been removed from the block of assets. |
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. |
Post Retirement Benefit Plan | Post Retirement Benefit Plan The Company has gratuity as it post employment plan for all the eligible employees. The recognition for the gratuity plan is as below:- The expected postretirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The Accumulated postretirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. |
Revenue Recognition, Deferred & Accrued Revenue | Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the company expected to be entitled in exchange for those goods and services. The following five steps are followed in recognizing revenue from contracts: ● Identify the contract(s) with a customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract and; ● Recognize revenue when or as the company satisfies a performance obligation. The consideration for the transaction [performance obligation(s)] is determined as per the agreement, contract or invoice for the services and products. Duo Subscribe Duo Subscribe is a solution for Subscriber Management and Billing. With over a decade of experience in developing applications for these sectors and having vast amount of domain knowledge on how these sector operate, Duo Subscribe is eminently capable of meeting the complex and rigorous demands of businesses around the world. Facetone ‘Facetone’ is a communication and collaboration platform, which provides users the capability of operating and running a high performance contact center operation efficiently while saving cost and maximizing revenue opportunities. In-built FaceTone CRM feature provides the opportunity for contact centers to deliver a superior customer experience and build a better relationship by linking customers and data in real time. Smoothflow Smoothflow automates customer engagements, including building ChatBots, VoiceBots and IoTBots to deliver an Omni channel customer service experience. The product uses the power of artificial intelligence to keep improving the conversational flow and user experience. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on premise Software– The company sells a perpetual nonexclusive license to the customer and enables the customer to install and use the software and its documentation. Price per customer varies based on the selection of the products licensed, the number of site installations and the number of authorized users. The products offered on this basis are “Duo Subscribe” and “Facetone-enterprise.” The company charge an Implementation fee on key milestone basis for on premise customers upon completion of performance obligation Enterprise Software Solutions– Company distributes its software product ‘Facetone- hosted version” with third party telecommunication companies. It’s a revenue model where the Tele-communication provider hosts DUO’s software applications and makes them available to its customers over the Internet for a monthly subscription fee. Company charge telecommunication provider a monthly license fee calculated according to number of licenses sold. Cloud Services- Company sells its product Smoothflow as a “SAAS” product (Software-as-a-Service) and services are provided on a monthly subscription model. AMC Services- The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Company’s software products. Initial annual maintenance fees are bundled with license fees in the initial licensing period and recognized when the performance obligation of license fee is met. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. Hardware products- Hardware product means a combination of computer equipment, electronics and the applicable operating system. The company provide hardware with software products to the customer if it is a requirement as per the software license agreement. The company changes hardware cost with the initial implementation and license fee. For the period ended March 31, 2019 and 2018, the Company received only cash as consideration for sale of licenses and related services and not in kind. For the years ended March 31, 2019 and 2018, the Company had following concentrations of revenues with customers: Customer March 31, 2019 March 31, 2018 A 65.17 % 46.48 % B 11.64 % 9.95 % C 6.72 % 3.82 % D 3.62 % 1.85 % E 3.28 % 3.06 % F 2.96 % 2.32 % G 0.00 % 10.27 % H 0.32 % 8.06 % I 1.50 % 6.33 % J 0.38 % 3.47 % Other Misc. customers 4.41 % 4.39 % 100.00 % 100.00 % For the years ended March 31, 2019 and 2018, the company had following sales by products: Product March 31, 2019 March 31, 2018 Duo Subscriber $ 512,082 $ 487,356 Facetone 103,359 203,739 Software hosting and reselling 20,853 19,288 Smoothflow 1,253 - Development and other Services 183 81,493 $ 637,730 $ 791,876 Significant Judgments The Company’s contract with customers includes multiple Software products and services to deliver and in the most of the contract the price of the separately identifiable features are stated separately. In the event the price of the multiple product and services are not mentioned in the agreement the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The company determines standalone selling price for performance obligations based on overall pricing strategies, which consider market in which the company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contract with customers deferred revenue and accrued revenue/ unbilled accounts receivables are recognized by the Company. We record a receivable when revenue is recognized prior to invoicing and receipt of payments, or deferred revenue when the revenue is recognized subsequent to invoicing. Revenue under Software Implementation contracts are invoiced on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and customer sign the user acceptance test (UAT). The company invoices software license fee and royalty fee at the end of the period according to the customer agreement and accrued revenue/ unbilled revenue is recognize for the relevant period. The initial annual maintenance fee is bundled with the initial license fee and is invoiced at beginning of the period and The Company recognizes as deferred revenue in the financial statements and is ratably recognized over a period of service. The Company recognized $74,224 revenue as at March 31, 2019 from the contract with LOLC as the performance obligations are completed in this year, and has a contract balance of $97,675 from the same customer as at March 31, 2019. Company is waiting for the customer confirmation to deliver the balance product and services. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Refer Note- 5 for “Accounts receivables and Provision for doubtful debts” Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s executive reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at March 31, 2019. |
Cost of Revenue | Cost of Revenue Cost of revenue mainly includes cost for server space, 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 year ended March 31, 2019 and 2018, product research and development cost of $171,416 and $277,812, respectively, were capitalized as “Intangible assets.” |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the period ended March 31, 2019 and 2018. |
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. Deferred tax assets and liabilities are not recognized in the current financials due to recurring tax losses and the uncertainty of the realization of the tax allowances. Withholding taxes deducted from the source of income from foreign operations are debited to profit and loss account due to non-refundable status. |
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, 2019, includes only foreign currency conversion 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 period ending on March 31, 2019 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 196,255 Balance, March 31, 2019 $ 266,235 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, September 2017 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10 and ASU 2016-12, ASU 2017-13 and ASU 2017-14, respectively (collectively, Topic 606). Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Topic 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates will be required within the revenue recognition process than are required under current GAAP (Accounting Standards Codification 605). Topic 606 is effective for the Company’s annual and interim reporting periods beginning April 1, 2018 (“effective date”). The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. The Company has adopted implementation of ASC 606 with effect from April 1, 2018 and as a result of it $19,455 impact which was provided as at March 31, 2018 has been reversed. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018, the Company had following concentrations of revenues with customers: Customer March 31, 2019 March 31, 2018 A 65.17 % 46.48 % B 11.64 % 9.95 % C 6.72 % 3.82 % D 3.62 % 1.85 % E 3.28 % 3.06 % F 2.96 % 2.32 % G 0.00 % 10.27 % H 0.32 % 8.06 % I 1.50 % 6.33 % J 0.38 % 3.47 % Other Misc. customers 4.41 % 4.39 % 100.00 % 100.00 % |
Schedule of Sales by Products | For the years ended March 31, 2019 and 2018, the company had following sales by products: Product March 31, 2019 March 31, 2018 Duo Subscriber $ 512,082 $ 487,356 Facetone 103,359 203,739 Software hosting and reselling 20,853 19,288 Smoothflow 1,253 - Development and other Services 183 81,493 $ 637,730 $ 791,876 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) by Component during the period ending on March 31, 2019 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 196,255 Balance, March 31, 2019 $ 266,235 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivables | Following is a summary of accounts receivable as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Accounts receivable – Trade $ 148,933 $ 576,775 Less: Provision for doubtful debts (23,889 ) (207,543 ) $ 125,044 $ 369,232 |
Schedule of Concentrations of Accounts Receivable | At March 31, 2019 and March 31, 2018, the Company had following concentrations of accounts receivable with customers: Customer March 31, 2019 March 31, 2018 A 27.98 % 1.86 % B 25.80 % 5.04 % C 16.83 % 0.00 % D 10.23 % 7.85 % E 6.43 % 3.39 % F 6.32 % 4.61 % G 2.48 % 1.91 % H 0.00 % 14.83 % I 0.00 % 56.37 % Other receivables 3.94 % 4.14 % 100.00 % 100.00 % |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Security deposits $ 56,878 $ 67,348 ESC receivable 11,126 5,688 Supplier advance 8,108 136 Prepayments 577 1,370 Prepayment for other professional services - 438,598 Insurance prepayment - 1,160 Travel advance 28 - Other receivables 5,565 8,700 $ 82,282 $ 523,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Following table illustrates net book value of property and equipment as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Office equipment $ 1,812 $ 2,054 Furniture & fittings 123,678 138,752 Computer equipment (Data Processing Equipment) 91,814 122,443 Improvements to lease hold assets 18,729 21,221 Website Development 14,362 14,678 250,395 299,148 Accumulated depreciation and amortization (226,882) (255,654) Net fixed assets $ 23,513 $ 43,494 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Following table illustrates the movement in intangible assets as at March 31, 2019 and March 31, 2018: March 31, 2019 March 31, 2018 Opening Balance $ 732,939 $ 580,899 Add: Costs capitalized during the year 171,416 277,812 Less: Amount written-off (74,024 ) (113,363 ) Translational gain/ (loss) (84,173 ) (12,409 ) Net Intangible Assets $ 746,158 $ 732,939 |
Short Term Borrowings (Tables)
Short Term Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | Following is a summary of short-term borrowings as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 PAN Asia Bank – Short term overdraft $ 471,350 $ 440,609 Commercial Bank 45,950 53,571 Senkadagala Finance 14,375 33,323 PAN Asia Bank – Loan - 162,636 $ 531,675 $ 690,139 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | Taxes payable comprised of items listed below as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 PAYE $ 143,766 $ 117,805 Stamp duty payable 17 34 Tax payable 11,261 8,877 WHT payable 2,127 - $ 157,171 $ 126,716 |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accruals and Other Payables | Following is a summary of accruals and other payables as at March 31, 2019 and March 31, 2018; March 31, 2019 March 31, 2018 Audit fee payable $ 1,770 $ 22,260 Accruals 49,114 29,128 Other payables 17,700 78,745 Accrued interest 3,090 1,417 $ 71,675 $ 131,550 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Cost of Revenue [Abstract] | |
Summary of Cost of Revenue | Following is the summary of cost of revenue for the period ending March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Purchases $ 24,636 $ 50,517 Implementation and onsite support cost 53,465 27,303 Product development cost written off 74,024 113,363 Consultancy, contract basis employee cost 2,828 6,773 Developer support and implementation 78,923 68,235 Development services 2,372 37,706 Cost of services 5,777 7,395 $ 242,025 $ 311,292 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
General And Administrative Expenses | |
Schedule of General and Administrative Expenses | Following is the summary of general and administrative expenses for the period ending March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Directors remuneration $ 138,235 $ 151,317 EPF 9,715 10,635 ETF 2,429 2,659 Vehicle allowance 28,441 37,539 Office rent 40,808 66,649 Audit fees 25,730 30,001 Legal fees 18,418 18,675 Professional fees 15,714 12,567 Office maintenance 12,758 11,482 OTC market fees 12,000 5,000 Internet charges 11,706 12,644 Electricity charges 9,283 14,110 Software Rentals 7,182 24,907 Staff welfare 7,131 10,832 Telephone charges 6,835 8,506 Consulting fee 3,535 51,300 Irrecoverable Tax 297 19 Travelling expense - 3,630 Printing and stationery 650 1,141 Office expenses - 2,732 Computer maintenance 1,978 4,565 Courier and postage 676 968 Security charges 1,138 2,815 Insurance expense - 1,611 Gratuity 4,187 7,369 Secretarial fees 724 730 Other professional services 4,789 7,443 Fee and Subscription 1,790 3,025 Stamp Duty expense 203 1,245 Public relations 1,056 3,362 Event coordination expenses - 2,580 Penalties / Late payment charges 2,528 1,273 Accounts write-off 2,071 - Other expenses 309 765 $ 372,318 $ 514,095 |
Selling and Distribution Expe_2
Selling and Distribution Expenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Selling And Distribution Expenses | |
Schedule of Selling and Distribution Expenses | Following is the summary of selling and distribution expenses for the period ending on March 31, 2019 and 2018; March 31, 2019 March 31, 2018 Marketing Expenses $ 18,432 $ 1,224 Vehicle hire charges 5,657 6,192 Vehicle running expenses 5,555 4,644 Foreign Travel - 102 Gift and donations - 1,106 $ 29,643 $ 13,268 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income Tax expense consists of the following; March 31, 2019 March 31, 2018 Current Taxes Nevada $ - $ - Sri Lanka- Taxes withheld 44,254 265,565 Singapore - - Total Income Tax Expense $ 44,254 $ 265,565 |
Schedule of Deferred Tax Assets and Liabilities | The Components of deferred tax assets and Liabilities are as follows; March 31, 2019 March 31, 2018 Deferred tax asset arising from tax effect of : Carry forward Losses and Unabsorbed Depreciation - - Less: Valuation allowance - - Total deferred tax asset (non-current) - - Total deferred tax liability Nil Nil |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Shares Issued | During the year ended March 31, 2019, the Company issued the following common shares: Date Type No. of Shares Valuation 06/01/2018 Stock issued as a Dividend payment 13,147,667 $ 5,784,973 02/28/2019 Stock issued for services 15,975 3,994 $ 5,788,967 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantee Provided by Existed Company | Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 8,624 5/15/2013 Guarantee for Lanka Clear 1,812 7/31/2014 Guarantee for SLT 488 8/10/2015 Guarantee for LOLC 1,378 5/23/2018 Rent deposit for Delhi apartment 1,331 7/17/2018 Security deposit- Senkadagala Finance 28,708 7/18/2018 Guarantee for Amana bank 547 9/10/2018 Guarantee for ICTA 1,722 10/9/2018 Rent deposit for office space 9,474 $ 54,084 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ 1,318,947 | $ 5,573,819 | |
Working capital deficit | 2,602,035 | 1,428,411 | |
Stockholders' deficit | 3,283,032 | 2,164,332 | $ 1,416,833 |
Employee provident fund and employee trust fund | 423,354 | $ 388,630 | |
Reduction in net loss | $ 4,254,873 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |
Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($) | |
Cash equivalents | ||
Property, plant and equipment, depreciation methods | Straight-line method | |
Estimated useful life | 15 years | |
Disposal of assets | $ 17,655 | |
Revenue from a contract with customer | 74,224 | |
Contract balance | $ 97,675 | |
Number of reportable segments | Segment | 1 | |
Deferred revenue | $ 6,995 | |
Unbilled receivables | 102,851 | 148,714 |
Product research and development cost | 171,416 | 277,812 |
Advertising expense | ||
Changes in accumulated deficit | $ 19,455 | |
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 Accoun_5
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, 2019 | |
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 Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Fixed Assets (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Estimated useful Lives of property and equipment | 15 years |
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 Accoun_7
Summary of Significant Accounting Policies - Schedule of Concentrations of Revenue (Details) - Revenue [Member] | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Concentrations of revenue percentage | 100.00% | 100.00% |
Customer A [Member] | ||
Concentrations of revenue percentage | 65.17% | 46.48% |
Customer B [Member] | ||
Concentrations of revenue percentage | 11.64% | 9.95% |
Customer C [Member] | ||
Concentrations of revenue percentage | 6.72% | 3.82% |
Customer D [Member] | ||
Concentrations of revenue percentage | 3.62% | 1.85% |
Customer E [Member] | ||
Concentrations of revenue percentage | 3.28% | 3.06% |
Customer F [Member] | ||
Concentrations of revenue percentage | 2.96% | 2.32% |
Customer G [Member] | ||
Concentrations of revenue percentage | 0.00% | 10.27% |
Customer H [Member] | ||
Concentrations of revenue percentage | 0.32% | 8.06% |
Customer I [Member] | ||
Concentrations of revenue percentage | 1.50% | 6.33% |
Customer J [Member] | ||
Concentrations of revenue percentage | 0.38% | 3.47% |
Other Misc. Customers [Member] | ||
Concentrations of revenue percentage | 4.41% | 4.39% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Sales by Products (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | $ 637,730 | $ 791,876 |
Duo Subscriber [Member] | ||
Revenue | 512,082 | 487,356 |
Facetone [Member] | ||
Revenue | 103,359 | 203,739 |
Software Hosting and Reselling [Member] | ||
Revenue | 20,853 | 19,288 |
Smoothflow [Member] | ||
Revenue | 1,253 | |
Development and Other Services [Member] | ||
Revenue | $ 183 | $ 81,493 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Foreign Currency Translation gains (losses), beginning | $ 69,981 | $ 112,761 |
Translation rate gain (loss) | 196,255 | (42,780) |
Foreign Currency Translation gains (losses), ending | $ 266,235 | $ 69,981 |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details Narrative) - USD ($) | Dec. 03, 2014 | Mar. 31, 2019 | Mar. 31, 2018 |
Cash consideration on exchange of DSSL's | $ 5,788,967 | ||
Common stock, shares issued | 65,754,296 | 52,590,654 | |
Common stock, shares outstanding | 65,754,296 | 52,590,654 | |
Duo Software (Pvt.) Limited (DSSL) [Member] | |||
Cash consideration on exchange of DSSL's | $ 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 - Schedule
Accounts Receivable - Schedule of Accounts Receivables (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable - Trade | $ 148,933 | $ 576,775 |
Less: Provision for doubtful debts | (23,889) | (207,543) |
Accounts receivable | $ 125,044 | $ 369,232 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Concentrations of Accounts Receivable (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Concentrations of accounts receivable | 100.00% | 100.00% |
Customer A [Member] | ||
Concentrations of accounts receivable | 27.98% | 1.86% |
Customer B [Member] | ||
Concentrations of accounts receivable | 25.80% | 5.04% |
Customer C [Member] | ||
Concentrations of accounts receivable | 16.83% | 0.00% |
Customer D [Member] | ||
Concentrations of accounts receivable | 10.23% | 7.85% |
Customer E [Member] | ||
Concentrations of accounts receivable | 6.43% | 3.39% |
Customer F [Member] | ||
Concentrations of accounts receivable | 6.32% | 4.61% |
Customer G [Member] | ||
Concentrations of accounts receivable | 2.48% | 1.91% |
Customer H [Member] | ||
Concentrations of accounts receivable | 0.00% | 14.83% |
Customer I [Member] | ||
Concentrations of accounts receivable | 0.00% | 56.37% |
Other Receivables [Member] | ||
Concentrations of accounts receivable | 3.94% | 4.14% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Security deposits | $ 56,878 | $ 67,348 |
ESC receivable | 11,126 | 5,688 |
Supplier advance | 8,108 | 136 |
Prepayments | 577 | 1,370 |
Prepayment for other professional services | 438,598 | |
Insurance prepayment | 1,160 | |
Travel advance | 28 | |
Other receivables | 5,565 | 8,700 |
Prepaid expenses and other current assets | $ 82,282 | $ 523,000 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 23,360 | $ 31,320 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Fixed assets gross | $ 250,395 | $ 299,148 |
Accumulated depreciation and amortization | (226,882) | (255,654) |
Net fixed assets | 23,513 | 43,494 |
Office Equipment [Member] | ||
Fixed assets gross | 1,812 | 2,054 |
Furniture & Fittings [Member] | ||
Fixed assets gross | 123,678 | 138,752 |
Computer Equipment (Data Processing Equipment) [Member] | ||
Fixed assets gross | 91,814 | 122,443 |
Improvements to Lease Hold Assets [Member] | ||
Fixed assets gross | 18,729 | 21,221 |
Website Development [Member] | ||
Fixed assets gross | $ 14,362 | $ 14,678 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Opening Balance | $ 732,939 | $ 580,899 |
Add: Costs capitalized during the year | 171,416 | 277,812 |
Less: Amount written-off | (74,024) | (113,363) |
Translational gain/ (loss) | (84,173) | (12,409) |
Net Intangible Assets | $ 746,158 | $ 732,939 |
Short Term Borrowings (Details
Short Term Borrowings (Details Narrative) | Mar. 31, 2019 |
Pan Asia Banking Corporation PLC [Member] | |
Bank overdraft facility interest rate | 15.55% |
Short Term Borrowings - Summary
Short Term Borrowings - Summary of Short-Term Borrowings (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Short Term Borrowings | $ 531,675 | $ 690,139 |
PAN Asia Bank - Short Term Overdraft [Member] | ||
Short Term Borrowings | 471,350 | 440,609 |
Commercial Bank [Member] | ||
Short Term Borrowings | 45,950 | 53,571 |
Senkadagala Finance [Member] | ||
Short Term Borrowings | 14,375 | 33,323 |
PAN Asia Bank - Loan [Member] | ||
Short Term Borrowings | $ 162,636 |
Due to Related Parties (Details
Due to Related Parties (Details Narrative) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Related Party Transactions [Abstract] | ||
Due to related parties, short term | $ 824,991 | $ 524,955 |
Due to related parties, long term | $ 1,345,968 | $ 1,348,193 |
Taxes Payable - Schedule of Tax
Taxes Payable - Schedule of Taxes Payable (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Taxes payable | $ 157,171 | $ 126,716 |
PAYE [Member] | ||
Taxes payable | 143,766 | 117,805 |
Stamp Duty Payable [Member] | ||
Taxes payable | 17 | 34 |
Tax Payable [Member] | ||
Taxes payable | 11,261 | 8,877 |
WHT Payable [Member] | ||
Taxes payable | $ 2,127 |
Accruals and Other Payables - S
Accruals and Other Payables - Schedule of Accruals and Other Payables (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Payables and Accruals [Abstract] | ||
Audit fee payable | $ 1,770 | $ 22,260 |
Accruals | 49,114 | 29,128 |
Other payables | 17,700 | 78,745 |
Accrued interest | 3,090 | 1,417 |
Accruals and other payables | $ 71,675 | $ 131,550 |
Cost of Revenue - Summary of Co
Cost of Revenue - Summary of Cost of Revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cost of Revenue [Abstract] | ||
Purchases | $ 24,636 | $ 50,517 |
Implementation and onsite support cost | 53,465 | 27,303 |
Product development cost written off | 74,024 | 113,363 |
Consultancy, contract basis employee cost | 2,828 | 6,773 |
Developer support and implementation | 78,923 | 68,235 |
Development services | 2,372 | 37,706 |
Cost of services | 5,777 | 7,395 |
Cost of revenue | $ 242,025 | $ 311,292 |
General and Administrative Ex_3
General and Administrative Expenses - Schedule of General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
General And Administrative Expenses | ||
Directors remuneration | $ 138,235 | $ 151,317 |
EPF | 9,715 | 10,635 |
ETF | 2,429 | 2,659 |
Vehicle allowance | 28,441 | 37,539 |
Office rent | 40,808 | 66,649 |
Audit fees | 25,730 | 30,001 |
Legal fees | 18,418 | 18,675 |
Professional fees | 15,714 | 12,567 |
Office maintenance | 12,758 | 11,482 |
OTC market fees | 12,000 | 5,000 |
Internet charges | 11,706 | 12,644 |
Electricity charges | 9,283 | 14,110 |
Software Rentals | 7,182 | 24,907 |
Staff welfare | 7,131 | 10,832 |
Telephone charges | 6,835 | 8,506 |
Consulting fee | 3,535 | 51,300 |
Irrecoverable Tax | 297 | 19 |
Travelling expense | 3,630 | |
Printing and stationery | 650 | 1,141 |
Office expenses | 2,732 | |
Computer maintenance | 1,978 | 4,565 |
Courier and postage | 676 | 968 |
Security charges | 1,138 | 2,815 |
Insurance expense | 1,611 | |
Gratuity | 4,187 | 7,369 |
Secretarial fees | 724 | 730 |
Other professional services | 4,789 | 7,443 |
Fee and Subscription | 1,790 | 3,025 |
Stamp Duty expense | 203 | 1,245 |
Public relations | 1,056 | 3,362 |
Event coordination expenses | 2,580 | |
Penalties / Late payment charges | 2,528 | 1,273 |
Accounts write-off | 2,071 | |
Other expenses | 309 | 765 |
General and administrative expenses | $ 372,318 | $ 514,095 |
Selling and Distribution Expe_3
Selling and Distribution Expenses - Schedule of Selling and Distribution Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Selling And Distribution Expenses | ||
Marketing expenses | $ 18,432 | $ 1,224 |
Vehicle hire charges | 5,657 | 6,192 |
Vehicle running expenses | 5,555 | 4,644 |
Foreign Travel | 102 | |
Gift and donations | 1,106 | |
Selling and distribution expenses | $ 29,643 | $ 13,268 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total Income Tax Expense | ||
Current Taxes Nevada [Member] | ||
Total Income Tax Expense | ||
Sri Lanka- Taxes Withheld [Member] | ||
Total Income Tax Expense | 44,254 | 265,565 |
Singapore [Member] | ||
Total Income Tax Expense |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset arising from tax effect of : | ||
Less: Valuation allowance | ||
Total deferred tax asset (non-current) | ||
Total deferred tax liability |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Series "A" preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series "A" preferred stock, par value | $ 0.001 | $ 0.001 |
Number of preferred shares converted into common shares | 10 | |
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 |
Equity - Schedule of Common Sha
Equity - Schedule of Common Shares Issued (Details) | 12 Months Ended |
Mar. 31, 2019USD ($)shares | |
Value of common stock issued | $ 5,788,967 |
06/01/2018 [Member] | Stock Issued as a Dividend Payment [Member] | |
Number of common stock issued, shares | shares | 13,147,667 |
Value of common stock issued | $ 5,784,973 |
02/28/2019 [Member] | Stock Issued For Services[Member] | |
Number of common stock issued, shares | shares | 15,975 |
Value of common stock issued | $ 3,994 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | Nov. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Lease commitment amount | $ 40,808 | $ 66,649 | |
Sri Lanka Office [Member] | Ms. Praveena Sujeevan [Member] | |||
Lease commitment amount | $ 37,894 | ||
Lease term | 2 years |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Guarantee Provided by Existed Company (Details) - USD ($) | Oct. 09, 2018 | Sep. 10, 2018 | Jul. 18, 2018 | Jul. 17, 2018 | May 23, 2018 | Aug. 10, 2015 | Jul. 31, 2014 | May 15, 2013 | Sep. 23, 2011 | Mar. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Guarantee Description | Rent deposit for office space | Guarantee for ICTA | Guarantee for Amana bank | Security deposit- Senkadagala Finance | Rent deposit for Delhi apartment | Guarantee for LOLC | Guarantee for SLT | Guarantee for Lanka Clear | Performance Bond for BOC Tender | |
Guarantee Amount | $ 9,474 | $ 1,722 | $ 547 | $ 28,708 | $ 1,331 | $ 1,378 | $ 488 | $ 1,812 | $ 8,624 | $ 54,084 |