Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'REDIFF COM INDIA LTD |
Entity Central Index Key | '0001103783 |
Current Fiscal Year End Date | '--03-31 |
Entity Filer Category | 'Non-accelerated Filer |
Trading Symbol | 'REDF |
Entity Common Stock, Shares Outstanding | 13,795,178 |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2014 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | $17,151,189 | $20,024,483 |
Trade accounts receivable (net of allowances of US$876,300 and US$618,054 as of March 31, 2013 and 2014, respectively) | 3,137,099 | 3,766,743 |
Prepaid expenses and other current assets (See Note 4) | 986,149 | 927,183 |
Total current assets | 21,274,437 | 24,718,409 |
Property, plant and equipment - net (See Note 5) | 3,571,222 | 5,780,172 |
Intangible assets, net (See Note 8) | 0 | 1,922,502 |
Investments, at cost (See Note 6) | 0 | 1,404,987 |
Recoverable taxes | 1,149,031 | 2,978,558 |
Other non-current assets (See Note 9) | 1,458,849 | 1,044,374 |
Total non-current assets | 6,179,102 | 13,130,593 |
Total assets | 27,453,539 | 37,849,002 |
Current liabilities | ' | ' |
Accounts payable and accrued liabilities (See Note 10) | 4,783,412 | 5,453,708 |
Customer advances and unearned revenues | 1,772,273 | 1,509,095 |
Total current liabilities | 6,555,685 | 6,962,803 |
Deferred tax liability (See Note 16) | 0 | 185,982 |
Other non-current liabilities (See Note 11) | 938,999 | 894,258 |
Total non-current liabilities | 938,999 | 1,080,240 |
Total liabilities | 7,494,684 | 8,043,043 |
Commitments and contingencies (See Note 24) | ' | ' |
Shareholders' Equity | ' | ' |
Equity shares: par value - Rs.5, Authorized: 24,000,000 equity shares as of March 31, 2013 and 2014; Issued: 14,810,178 equity shares as of March 31, 2013 and 2014 and outstanding 13,795,178 equity shares as of March 31, 2013 and 2014 | 1,756,726 | 1,756,726 |
Additional paid-in-capital | 132,195,927 | 131,714,364 |
Accumulated other comprehensive loss | -14,389,651 | -11,532,390 |
Accumulated deficit | -95,177,542 | -87,706,136 |
Treasury shares, at cost (See Note 12) (1,015,000 equity shares as of March 31, 2013 and 2014) | -4,426,605 | -4,426,605 |
Total shareholders' equity | 19,958,855 | 29,805,959 |
Total liabilities and shareholders' equity | $27,453,539 | $37,849,002 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for Doubtful Accounts Receivable, Current (in dollars) | $618,054 | $876,300 |
Equity Shares, Par Value (in dollars per share) | $5 | $5 |
Equity Shares, Authorized | 24,000,000 | 24,000,000 |
Equity Shares, Issued | 14,810,178 | 14,810,178 |
Equity Shares, Outstanding | 13,795,178 | 13,795,178 |
Treasury Shares, Equity Shares | 1,015,000 | 1,015,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||||
Revenues | ' | ' | ' | |||
Total revenues | $16,120,797 | $15,658,704 | $19,942,266 | |||
Cost of revenues (excluding depreciation and amortization separately disclosed below) | ' | ' | ' | |||
Total cost of revenues | 10,413,064 | 9,951,884 | 10,774,121 | |||
Operating expenses | ' | ' | ' | |||
Sales and marketing | 3,896,073 | 3,266,790 | 5,341,678 | |||
Product development | 2,287,488 | 2,920,824 | 3,136,778 | |||
Depreciation and amortization | 3,060,269 | 3,664,376 | 3,499,769 | |||
General and administrative | 7,239,847 | 7,615,588 | 7,935,447 | |||
Goodwill Impairment (See Note 7) | 0 | 2,000,000 | 0 | |||
Long-lived assets impairment (See Note 5 and 8) | 1,590,371 | 0 | 0 | |||
Foreign exchange loss (gain), net | -26,003 | 103,744 | 91,926 | |||
Total operating expenses | 18,048,045 | 19,571,322 | 20,005,598 | |||
Operating loss | -12,340,312 | -13,864,502 | -10,837,453 | |||
Other income (expense), net | ' | ' | ' | |||
Interest income | 1,334,610 | 1,952,345 | 2,584,432 | |||
Interest income on income tax refunds | 613,698 | 44,529 | 34,400 | |||
Promissory note impairment (See Note 9) | 0 | -1,100,000 | 0 | |||
Gain on sale of investment (See Note 6) | 2,740,940 | 0 | 0 | |||
Gain on sale of equity method investee | 0 | 1,292,168 | 749,897 | |||
Miscellaneous income | 26,884 | 125,679 | 72,769 | |||
Total other income, net | 4,716,132 | 2,314,721 | 3,441,498 | |||
Loss before income taxes and equity in net loss of equity method investees | -7,624,180 | -11,549,781 | -7,395,955 | |||
Income tax benefit (expense) | 152,774 | 33,248 | -65,555 | |||
Equity in net earnings (loss) of equity method investees | 0 | [1] | 84,310 | [1],[2] | -215,735 | [1] |
Net loss | -7,471,406 | -11,432,223 | -7,677,245 | |||
(Loss) earnings per share - basic (in dollars per share) | ($0.54) | ($0.83) | ($0.56) | |||
(Loss) earnings per share - diluted (in dollars per share) | ($0.54) | ($0.83) | ($0.56) | |||
Weighted average number of equity shares - basic (in shares) | 13,795,178 | 13,795,178 | 13,758,635 | |||
Weighted average number of equity shares - diluted (in shares) | 13,795,178 | 13,795,178 | 13,758,635 | |||
Other comprehensive income (loss) | ' | ' | ' | |||
Foreign currency translation adjustment and total other comprehensive income (loss) | -2,857,261 | -2,254,312 | -5,841,093 | |||
Comprehensive loss attributable to shareholders | -10,328,667 | -13,686,535 | -13,518,338 | |||
India Online Business [Member] | ' | ' | ' | |||
Revenues | ' | ' | ' | |||
Service Revenue | 13,368,042 | 12,527,464 | 16,223,222 | |||
Cost of revenues (excluding depreciation and amortization separately disclosed below) | ' | ' | ' | |||
Cost of service revenue | 8,330,948 | 7,470,935 | 8,241,612 | |||
Us Publishing Business [Member] | ' | ' | ' | |||
Revenues | ' | ' | ' | |||
Service Revenue | 2,752,755 | 3,131,240 | 3,719,044 | |||
Cost of revenues (excluding depreciation and amortization separately disclosed below) | ' | ' | ' | |||
Cost of service revenue | $2,082,116 | $2,480,949 | $2,532,509 | |||
American Depositary Shares [Member] | ' | ' | ' | |||
Other income (expense), net | ' | ' | ' | |||
(Loss) earnings per share - basic (in dollars per share) | ($0.27) | ($0.41) | ($0.28) | |||
(Loss) earnings per share - diluted (in dollars per share) | ($0.27) | ($0.41) | ($0.28) | |||
[1] | Company's share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition. | |||||
[2] | Information provided for the period ended October 8, 2012, relates to Imere Technology Private Limited which was sold as on same date. |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Equity Shares [Member] | Additional Paid In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated deficit [Member] | Treasury Stock [Member] |
Balance at Mar. 31, 2011 | $54,102,191 | $1,735,105 | $128,827,344 | ($3,436,985) | ($68,596,668) | ($4,426,605) |
Balance (in shares) at Mar. 31, 2011 | ' | 14,615,800 | ' | ' | ' | -1,015,000 |
Stock-based compensation | 787,874 | ' | 787,874 | ' | ' | ' |
Net loss | -7,677,245 | ' | ' | ' | -7,677,245 | ' |
Foreign currency translation adjustment | -5,841,093 | ' | ' | -5,841,093 | ' | ' |
Stock option exercised | 1,364,677 | 21,621 | 1,343,056 | ' | ' | ' |
Stock option exercised (in shares) | ' | 194,378 | ' | ' | ' | ' |
Balance at Mar. 31, 2012 | 42,736,404 | 1,756,726 | 130,958,274 | -9,278,078 | -76,273,913 | -4,426,605 |
Balance (in shares) at Mar. 31, 2012 | ' | 14,810,178 | ' | ' | ' | -1,015,000 |
Stock-based compensation | 756,090 | ' | 756,090 | ' | ' | ' |
Net loss | -11,432,223 | ' | ' | ' | -11,432,223 | ' |
Foreign currency translation adjustment | -2,254,312 | ' | ' | -2,254,312 | ' | ' |
Balance at Mar. 31, 2013 | 29,805,959 | 1,756,726 | 131,714,364 | -11,532,390 | -87,706,136 | -4,426,605 |
Balance (in shares) at Mar. 31, 2013 | ' | 14,810,178 | ' | ' | ' | -1,015,000 |
Stock-based compensation | 481,563 | ' | 481,563 | ' | ' | ' |
Net loss | -7,471,406 | ' | ' | ' | -7,471,406 | ' |
Foreign currency translation adjustment | -2,857,261 | ' | ' | -2,857,261 | ' | ' |
Balance at Mar. 31, 2014 | $19,958,855 | $1,756,726 | $132,195,927 | ($14,389,651) | ($95,177,542) | ($4,426,605) |
Balance (in shares) at Mar. 31, 2014 | ' | 14,810,178 | ' | ' | ' | -1,015,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||||
Cash flows from operating activities | ' | ' | ' | |||
Net loss | ($7,471,406) | ($11,432,223) | ($7,677,245) | |||
Adjustments to reconcile net loss to net cash generated from operating activities: | ' | ' | ' | |||
Gain on sale of investment in equity method investee | 0 | -1,292,168 | -749,897 | |||
Goodwill impairment | 0 | 2,000,000 | 0 | |||
Long-lived assets impairment | 1,590,371 | 0 | 0 | |||
Gain on sale of investment | -2,740,940 | 0 | 0 | |||
Equity in net loss (earnings) of equity method investees | 0 | [1] | -84,310 | [1],[2] | 215,735 | [1] |
Depreciation and amortization | 3,060,269 | 3,664,376 | 3,499,769 | |||
Allowances / (write-back) for doubtful trade accounts | 190,493 | -48,580 | 37,700 | |||
Promissory note impairment | 0 | 1,100,000 | 0 | |||
Loss (profit) on sale of property, plant and equipment | -460 | -1,701 | 5,165 | |||
Stock-based compensation expense | 481,563 | 756,090 | 787,874 | |||
Unrealized exchange loss (gain) | 146,784 | 11,808 | 117,952 | |||
Changes in assets and liabilities: | ' | ' | ' | |||
Trade accounts receivable | 116,034 | 2,104,717 | 158,828 | |||
Prepaid expenses and other current assets | 9,215 | 449,452 | 119,836 | |||
Accounts payable, accrued liabilities and other liabilities | -78,956 | 1,156,450 | -1,961,862 | |||
Customer advances and unearned revenues | 377,713 | -621,397 | 688,625 | |||
Recoverable taxes | 1,531,255 | -193,869 | -61,155 | |||
Other non-current assets | -44,772 | -109,196 | -384,871 | |||
Net cash used in operating activities | -2,832,837 | -2,540,551 | -5,203,546 | |||
Cash flows from investing activities | ' | ' | ' | |||
Payments to acquire property, plant and equipment | -1,472,422 | -1,903,229 | -5,379,475 | |||
Purchase of investment | 0 | -104,987 | 0 | |||
Sale of investment in equity method investee | 0 | 1,452,944 | 937,866 | |||
Sale of investment | 3,531,935 | 0 | 0 | |||
Proceeds from sale of property, plant and equipment | 7,735 | 7,594 | 17,986 | |||
Net cash generated from / (used in) investing activities | 2,067,248 | -547,678 | -4,423,623 | |||
Cash flows from financing activities | ' | ' | ' | |||
Proceeds from issue of shares | 0 | 0 | 1,364,677 | |||
Net cash generated from financing activities | 0 | 0 | 1,364,677 | |||
Net decrease in cash and cash equivalents | -765,589 | -3,088,229 | -8,262,492 | |||
Cash and cash equivalents at the beginning of the year | 20,024,483 | 24,545,839 | 36,922,125 | |||
Effect of exchange rate changes on cash and cash equivalents | -2,107,705 | -1,433,127 | -4,113,794 | |||
Cash and cash equivalents at the end of the year | 17,151,189 | 20,024,483 | 24,545,839 | |||
Supplementary cash flow information: | ' | ' | ' | |||
Income taxes paid | 358,587 | 448,393 | 492,682 | |||
Supplementary disclosure of non-cash investing activity: | ' | ' | ' | |||
Payables for purchase of property, plant and equipment | $2,940 | $204,638 | $30,074 | |||
[1] | Company's share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition. | |||||
[2] | Information provided for the period ended October 8, 2012, relates to Imere Technology Private Limited which was sold as on same date. |
Organization_and_Business
Organization and Business | 12 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Nature Of Operations [Text Block] | ' | |
1 | Organization and business | |
Rediff.com India Limited (“Rediff”) was incorporated as a private limited company in India on January 9, 1996 under the Indian Companies Act, 1956 and was converted to a public limited company on May 29, 1998. Rediff’s American Depository Shares (“ADSs”) are listed on the NASDAQ Global Market. | ||
In February 2001, Rediff established Rediff Holdings, Inc. (“RHI”), a Delaware Corporation, as a wholly-owned subsidiary to be a holding company for certain investments in the United States of America. In March 2001, Rediff acquired Value Communication Corporation (“ValuCom”). On February 27, 2001, RHI acquired thinkindia.com, Inc (“thinkindia”), later renamed Rediff.com Inc. On April 27, 2001, RHI acquired India Abroad Publications, Inc. (“India Abroad”), a print and online news company. | ||
On November 26, 2010, Rediff acquired Vubites India Private Limited (“Vubites”) from the Chairman and Managing Director of Rediff (referred to as “the CMD”) and a principal shareholder in Rediff. Vubites enables small and local businesses to advertise on national TV channels within their city to reach their target audiences. | ||
During the fiscal year ended March 31, 2014, Rediff opened a branch office in the United States of America. Its prime objective is to facilitate and expand the online advertising business in USA. | ||
Rediff with its branch and subsidiaries (“the Company”) is in the business of providing online internet based services, focusing on India and the global Indian community. Its websites consists of channels relevant to Indian interests such as cricket, astrology, matchmaker and movies, content on various matters like news and finance, search facilities, a range of community features such as e-mail, chat, messenger, e-commerce, broadband wireless content and mobile value-added services to mobile phone subscribers in India. The Company also enables its customers to insert localized advertisements on national television channels by providing a platform to create an advertisement and prepare a media plan. Additionally, the Company publishes two weekly newspapers, ‘India Abroad’ and ‘India in New York’, in North America. | ||
Significant_accounting_policie
Significant accounting policies | 12 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis Of Presentation And Significant Accounting Policies [Text Block] | ' | ||
2 | Significant accounting policies | ||
(a) | Basis of preparation | ||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||
(b) | Basis of consolidation | ||
The consolidated financial statements include the financial statements of Rediff and its wholly – owned subsidiaries and variable interest entity (VIE) in which the Company is the primary beneficiary. All inter-company accounts and transactions are eliminated on consolidation. | |||
(c) | Investments in equity method investees | ||
Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method. The Company records its share of the results of these companies in the consolidated statement of comprehensive loss as equity in net earnings (loss) of equity method investees. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. Measurement of any impairment loss is based on its excess of the carrying value of the investment over its fair value. | |||
(d) | Use of estimates | ||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities on the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for doubtful trade accounts receivables, impairment of goodwill, property, plant and equipment, intangible and investments, useful lives of property, plant and equipment and intangible assets, valuation of deferred tax assets, stock based compensation and employee benefits. Actual results could differ from those estimates. | |||
(e) | Revenue recognition | ||
India Online business | |||
India Online business includes revenues from advertising, sponsorship and fee based services. Advertisement and sponsorship income is derived from customers who advertise on the Company’s website or from targeted advertisement - direct links from the Company’s website, targeted emails to Rediffmail subscribers and advertising slots to regional advertisers. Fee based services include e-commerce, subscription services and mobile value-added services. E-commerce revenues primarily consist of commission earned on sale of items to customers who shop online while subscription services consist of subscriptions received for using e-mail and other subscriber services. Mobile value-added services include revenues derived from providing value added short messaging services and other related products to mobile phone users. | |||
Revenue from display of advertisement and sponsorship is recognized ratably based on delivery over the contractual period of the advertisement, commencing when the advertisement is placed on the website or broadcast. Revenues are also derived from sponsor buttons placed in specific areas of the Company’s website, which generally provide users with direct links to sponsor websites. These revenues are recognized ratably over the period in which the advertisement is displayed, provided that no significant Company obligations remain and collection of the resulting receivable is probable. Company obligations may include guarantees of a minimum number of impressions, or times, that an advertisement appears in pages viewed by users of the Company’s website. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impression levels are achieved. The Company also earns revenues from the sending of e-mail messages to its users on behalf of advertisers and such revenues are recognized ratably over the contracted period. | |||
E-commerce revenue primarily consists of commission from the sale of books, music, apparel, confectionery, gifts and other items to retail customers who shop at the Company’s online store. Customers directly place orders with vendors through the Company’s website. When an order is placed, the Company informs the vendor through an intranet and also confirms whether payment has already been collected by the Company through credit card/debit card or cheques, or whether the payment is to be made by the customer on cash-on-delivery (“COD”) basis. The vendor then dispatches the products to the customers. The vendor sends a periodic summary of the transactions executed for which the Company has collected payments on its behalf. The Company makes payment to the vendor after deduction of its share of margin, commission and costs. The Company recognizes as revenues the commission earned on these transactions and shipping costs recovered from customers. The Company provides incentives to its customers in the form of coupons and promo codes. These incentives are treated as reductions in revenue and in cases where such incentives exceed the commission amount, the excess is recognized as cost of revenue. Subscription service revenues primarily include income from various paid e-mail and other service products for the Company’s registered user base. Subscription income is deferred and recognized pro rata as fulfilled over the terms of such subscription. | |||
Mobile value-added services (“MVAS”) revenues are derived from providing value added short messaging services (“SMS”), e-mail and other related products to mobile phone users. The Company contracts with third-party mobile phone operators for sharing revenues from these services. Mobile value-added services based revenues are recognized when the service is performed. | |||
US Publishing business | |||
US Publishing business primarily include advertising and sponsorship revenues and consumer subscription revenues earned from the publication of India Abroad, a weekly newspaper distributed primarily in the United States and Canada. It also includes the advertising revenues of Rediff India Abroad, the website catering to the Indian community in the United States. | |||
Advertising revenues are recognized at the time of publication of the related advertisement. Subscription income is deferred and recognized pro rata as fulfilled over the terms of such subscription. | |||
Revenues from banners and sponsorships are recognized over the contractual period of the advertisement, commencing when the advertisement is placed on the website, provided that no significant obligations remain and collection of the resulting receivable is probable. Obligations may include guarantee of a minimum number of impressions, or times that an advertisement appears in pages viewed by users of the Company’s website. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impression levels are achieved. | |||
(f) | Costs and expenses | ||
Costs and expenses have been classified according to their primary functions in the following categories: | |||
Cost of revenues | |||
Cost of revenues primarily include cost of content for the Rediff websites, editorial costs, employee compensation, stock-based compensation, internet communication, data storage, software usage, printing and circulation costs for the India Abroad and India in New York newspapers and fee based services related costs. | |||
Sales and marketing | |||
Sales and marketing expenses primarily include employee compensation for sales and marketing personnel, advertising and promotion expenses, market research costs and stock-based compensation. The costs of advertising are expensed as and when incurred. | |||
Product development | |||
Product development costs primarily include software development expenses, compensation of product development personnel and stock-based compensation. Internal and external costs incurred to develop internal use software during application development stage is capitalized when the Company’s managing director has authorized and committed to funding the development, and it is probable that the software development will be completed and the software will perform the function intended. Upgrades and enhancements are capitalized only when these relate to additional features or result in additional functionality which the existing software is incapable of performing. All costs incurred during the preliminary project and post implementation and operation stages are expensed as incurred. | |||
General and administrative | |||
These costs primarily include employee compensation of administrative and supervisory staff whose time is mainly devoted to strategic and managerial functions, rent, insurance premiums, electricity, telecommunication costs, legal and professional fees, stock-based compensation costs and other general expenses. | |||
(g) | Cash and cash equivalents | ||
The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. | |||
Cash and cash equivalents consist of cash on hand, balances in current accounts, deposits with banks which are unrestricted as to withdrawal and use. | |||
(h) | Property, plant and equipment | ||
Property, plant and equipment are stated at cost less accumulated depreciation. The Company computes depreciation for all property, plant and equipment using the straight-line method so as to expense the costs over the estimated useful lives of assets. The estimated useful lives of assets are as follows: | |||
Furniture and fixtures | 10 years | ||
Computer equipment and software | 1 to 3 years | ||
Office equipment | 3 to 10 years | ||
Vehicles | 8 years | ||
Leasehold improvements | 6 years | ||
Website development costs | 3 to 5 years | ||
Capital work-in-progress is not depreciated until the construction and installation of the asset is complete, and the asset is available for use. | |||
(i) | Website development costs | ||
Costs incurred in the operations stage that provides additional functions or features to the Company’s website are capitalized. The estimated useful life is evaluated for each specific project and ranges from three to five years. Maintenance expenses or costs that do not result in significant new features or functions are expensed as product development costs. | |||
(j) | Investments, at cost | ||
Securities that do not have readily determinable fair market values are recorded at cost, subject to an impairment charge for any other than temporary decline in value. The fair values of these securities are not estimated if there are no events or changes in circumstances that may have a significant effect on the fair value. It is not practicable to estimate the fair value of these securities. | |||
(k) | Business Combination | ||
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. Acquisition related costs are recognized in statement of comprehensive loss as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair value at the acquisition date. | |||
Purchase consideration in excess of the identifiable assets and liabilities is recognized as goodwill. Gain resulting from excess of the acquiree’s identifiable assets and liabilities over the purchase consideration is recognized, after reassessment, in the statement of comprehensive loss. | |||
(l) | Goodwill | ||
Goodwill represents the excess of purchase consideration over the fair values of the aquiree’s identifiable assets acquired and liabilities assumed in a business combination. Goodwill is assessed for impairment on an annual basis on January 1 or earlier when events or circumstances indicate that the carrying amount of goodwill exceeds its implied fair value. | |||
Goodwill impairment assessment is a two-step test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the impairment loss amount, if any. | |||
The Company uses an income-based valuation approach to determine the fair value of the reporting unit by estimating the present value of future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates, anticipated future economic and regulatory conditions and availability of necessary technology. | |||
When required to perform the second step, the Company compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized, not to exceed the goodwill carrying amount. The Company determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of the goodwill. This assignment process is only for purposes of testing goodwill impairment and the Company does not adjust the carrying amounts of the recognized assets and liabilities (other than goodwill, if appropriate) or recognize previously unrecognized intangible assets in the consolidated balance sheet as a result of this assignment process. | |||
(m) | Foreign currency | ||
The accompanying consolidated financial statements have been presented in US dollars as the reporting currency. The functional currency of Rediff is the Indian Rupee (“Rs.” or “Rupee”) while that of its subsidiaries domiciled in the United States is the US dollar and in Canada is the Canadian dollar. Transactions in foreign currency are recorded at the original rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currency are restated using the exchange rates prevailing at the date of the balance sheet. Exchange differences arising on settlement of transactions and restatement of monetary assets and liabilities at the balance sheet date are recognized in the statement of comprehensive loss. | |||
For the purposes of presenting the consolidated financial statements, Rupees have been converted into US dollars for balance sheet accounts using the exchange rate in effect at the balance sheet date, and for revenue and expense accounts using a monthly weighted-average exchange rate. The gains or losses resulting from such translation are reported as other comprehensive income or loss. | |||
(n) | Earnings per share | ||
Basic earnings per share has been computed by dividing the net income (loss) from operations by the weighted average number of equity shares outstanding during the period, including equity share equivalents for ADSs issued. Diluted earnings per share is computed using the weighted average number of equity shares including equity share equivalents for ADSs issued and dilutive potential equity shares outstanding during the period, using the treasury stock method for options, except where the results would be anti-dilutive. Dilutive potential equity shares consist of the incremental equity shares issuable upon the exercise of stock options. The Company also reports earnings (loss) per ADS, where two ADSs represent one equity share. | |||
(o) | Income taxes | ||
Income taxes consist of current income taxes and the change in the deferred tax balances during the year. Deferred tax assets and liabilities are recognized for each entity and taxing jurisdiction for future tax consequences attributable to temporary differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss carry-forwards, measured using the enacted tax rates expected to apply in the years in which such temporary differences are expected to be recovered or settled. The effect of changes in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain. | |||
The Company evaluates each tax positions to determine if it is more likely than not that a tax position is sustainable, based on its technical merits. If a tax position does not meet the more likely than not threshold, a liability is recorded. Additionally, for a position that is determined to, more likely than not, be sustainable, the Company measures the benefit at the highest cumulative probability of greater than 50% of being realized and establish a liability for the remaining portion. | |||
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. Interest income on repayment of income taxes is presented separately in the statement of comprehensive loss as an element of other income (expense), net. | |||
(p) | Impairment or disposal of long-lived assets (excluding goodwill) | ||
The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. The Company subjects such long-lived assets to a test of recoverability based on the undiscounted cash flows expected from use or disposition of such assets. Such events or circumstances would include changes in the market, technological obsolescence and adverse changes in profitability or regulation. If the asset is impaired, the Company recognizes an impairment loss as the difference between the estimated fair values determined using discounted cash flows and the carrying value of the asset. Assets to be disposed of are reported at the lower of the carrying value or the fair value less the cost to sell. | |||
(q) | Intangible assets | ||
Intangible assets consist of customer contracts and intellectual property carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over three and seven years, respectively, that best reflects the economic benefits of the intangible assets. | |||
(r) | Stock-based compensation | ||
The Company measures the cost of services received from employees, associates, retainers and non-employee directors in exchange for share based compensation at the grant date fair value award. The Company recognizes stock-based compensation on a straight line basis over the vesting period. | |||
(s) | Allowances for doubtful trade accounts receivable | ||
The Company establishes an allowance for doubtful accounts on trade accounts receivable after considering the financial condition of the customer, ageing of the accounts receivable, historical experience and the current economic environment. Trade accounts receivable balances are written off against allowances only after all means of collections have been exhausted and potential of recovery is considered remote. | |||
(t) | Employee benefit | ||
Gratuity | |||
The Company provided for gratuity, a defined benefit retirement plan (the Gratuity Plan) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years of service. The defined benefit liability is determined by actuarial valuation, at each balance sheet date, using the projected unit credit method. | |||
Provident fund | |||
Eligible employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and the Company make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee’s salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Company’s contribution to fund the benefits is expensed as incurred. | |||
Compensated absences | |||
The Company provided the compensated absences liability for the amounts to be paid as a result of employee’s rights to compensated absences in the year in which it is earned. | |||
(u) | Comprehensive income (loss) | ||
Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss) and foreign currency translation adjustments. | |||
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended | |
Mar. 31, 2014 | ||
Accounting Changes And Error Corrections [Abstract] | ' | |
Accounting Changes And Error Corrections [Text Block] | ' | |
3 | New Accounting Pronouncements | |
In 2013, the FASB issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. The new standard requires adoption on a prospective basis in the first quarter of 2015, however, early adoption is permitted. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. | ||
In May 2014, the FASB issued accounting standard update on revenue from contracts with customers. This update clarifies the principles for revenue recognition in transactions involving contracts with customers. The guidance will be effective for the interim and annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company has not yet evaluated what impact, if any, the adoption of this guidance may have on our financial condition, results of operations, or disclosures. | ||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | |||||||||
Other Current Assets [Text Block] | ' | |||||||||
4 | Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Prepaid expenses | 616,327 | 513,348 | ||||||||
Supplier advances | 106,143 | 193,871 | ||||||||
Rent deposits | 63,799 | 39,434 | ||||||||
Other advances and deposits | 70,137 | 38,122 | ||||||||
Loans to employees | 70,529 | 48,927 | ||||||||
Amount receivable on sale of investment (See Note 6) | - | 152,447 | ||||||||
Others | 248 | - | ||||||||
Total | 927,183 | 986,149 | ||||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ' | |||||||||
Property Plant And Equipment Disclosure [Text Block] | ' | |||||||||
5 | Property, Plant and Equipment | |||||||||
Property, plant and equipment comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Furniture and fixtures | 473,115 | 367,004 | ||||||||
Computer equipment and software | 25,966,628 | 17,673,543 | ||||||||
Office equipment | 405,394 | 275,013 | ||||||||
Vehicles | 281,016 | 251,362 | ||||||||
Leasehold improvements | 646,925 | 444,467 | ||||||||
Website development costs | 3,452,526 | 4,110,523 | ||||||||
Property, plant and equipment – at cost | 31,225,604 | 23,121,912 | ||||||||
Less: Accumulated depreciation and amortization | -26,344,562 | -20,160,336 | ||||||||
4,881,042 | 2,961,576 | |||||||||
Capital work-in-progress | 899,130 | 609,646 | ||||||||
Property, plant and equipment – net | 5,780,172 | 3,571,222 | ||||||||
In fiscal 2014, the Company has recognized an impairment loss of US$199,621 mainly in respect of computer equipment relating to its subsidiary Vubites (see note 8). Additionally, in fiscal 2014, the Company abandoned an application related project included in ‘Capital work-in-progress’ and as a result impaired an amount of US$39,380. | ||||||||||
In the fiscal years 2012, 2013 and 2014, the Company incurred depreciation and amortization expense of US$3,028,924, US$3,249,417 and US$2,688,989 respectively. | ||||||||||
Investments
Investments | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | |||||||||||||
Equity Method Investments Disclosure [Text Block] | ' | |||||||||||||
6 | Investments | |||||||||||||
Investment, cost method | ||||||||||||||
During the fiscal year ended March 31, 2014, the Company sold its investment in Runa Inc. for a total consideration of US$4,145,927 and recognized a gain of US$2,740,940. An amount of US$613,992 of the total consideration has been held in escrow for certain representations and warranties contained in the sale agreement. These representations and warranties have been assessed as accurate and the fair value of any obligation resulting from these representations and warranties is insignificant. Of the total amount held in escrow US$ 152,447 and US$ 461,545 are recoverable by October, 2014 and April, 2015 respectively. | ||||||||||||||
Investments in equity interest | ||||||||||||||
The Company’s investments in equity method investees interest were as follows: | ||||||||||||||
Percent of | ||||||||||||||
ownership of equity | ||||||||||||||
shares | ||||||||||||||
Tachyon Technology Private Limited (Impaired in fiscal 2011) | 26 | % | ||||||||||||
Imere Technology Private Limited (up to October 8, 2012) | 44 | % | ||||||||||||
Eterno Infotech Private Limited (Up to December 19, 2011) | 43 | % | ||||||||||||
Bigslick Infotech Private Limited (Impaired in fiscal 2010) | 37 | % | ||||||||||||
The following table presents financial information for equity method investees: | ||||||||||||||
For years ended March 31, | ||||||||||||||
2012 | 2013# | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Revenues | 362,280 | 320,005 | — | |||||||||||
Total costs | 700,337 | 72,910 | — | |||||||||||
Profit (loss) from operations | -338,057 | 247,095 | — | |||||||||||
Earnings (loss) attributable to Rediff* | -215,735 | 84,310 | — | |||||||||||
# | Information provided for the period ended October 8, 2012, relates to Imere Technology Private Limited which was sold as on same date. | |||||||||||||
* | Company’s share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition. | |||||||||||||
During the fiscal year ended March 31, 2012, the Company sold its investment in Eterno Infotech Private Limited for a consideration of US$937,866 and recorded a gain of US$749,897 under the heading “Gain on sale of equity method investee” in consolidated statement of comprehensive loss. | ||||||||||||||
During the fiscal year ended March 31, 2013, the Company sold its investment in Imere Technology Private Limited for a consideration of US$1,452,944 and recorded a gain of US$1,292,168 and included as “Gain on sale of equity method investee” in consolidated statement of comprehensive loss. | ||||||||||||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Goodwill Disclosure [Text Block] | ' | |||||||||||||||||||||||||
7 | Goodwill | |||||||||||||||||||||||||
The Company’s goodwill is in respect of its acquisition of India Abroad. The goodwill has been allocated to the US Publishing business, reporting unit. | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the fiscal years ended March 31, 2013 and 2014 were as follows: | ||||||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||
As at beginning of the year | 10,515,168 | 8,515,168 | 2,000,000 | 10,515,168 | 10,515,168 | — | ||||||||||||||||||||
Impairment | — | 2,000,000 | 2,000,000 | — | — | — | ||||||||||||||||||||
As at end of the year | 10,515,168 | 10,515,168 | — | 10,515,168 | 10,515,168 | — | ||||||||||||||||||||
In fiscal year 2013, the Company recognized a goodwill impairment loss of US$2,000,000. The impairment was on account of the weakness in the publishing industry which resulted in reduction of the US publishing business’s projected operating results and estimated future cash flows. The Company used an income-based valuation approach to determine the fair value of the reporting unit by estimating the present value of future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates. | ||||||||||||||||||||||||||
Intangible_assets_net
Intangible assets, net | 12 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Intangible assets, net [Text Block] | ' | |||||||||||||||||
8 | Intangible assets, net | |||||||||||||||||
The following table summarizes the carrying amount of intangible assets: | ||||||||||||||||||
As of March 31, 2013 | ||||||||||||||||||
Gross carrying | Accumulated | Impairment | Net carrying | |||||||||||||||
value | amortization | loss | value | |||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Customer contracts | 13,684 | 10,642 | - | 3,042 | ||||||||||||||
Intellectual property | 2,879,190 | 959,730 | - | 1,919,460 | ||||||||||||||
Total intangible assets, net | 2,892,874 | 970,372 | - | 1,922,502 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||
Gross carrying | Accumulated | Impairment | Net carrying | |||||||||||||||
value | amortization | loss | value | |||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Customer contracts | 12,383 | 12,383 | - | - | ||||||||||||||
Intellectual property | 2,605,644 | 1,254,274 | 1,351,370 | - | ||||||||||||||
Total intangible assets, net | 2,618,027 | 1,266,657 | 1,351,370 | - | ||||||||||||||
Customer contracts and intellectual property are amortized on a straight line basis over a period of three and seven years, respectively. The Company recognized amortization expense of intangible assets of US$470,845, US$414,959 and US$371,280 in fiscal 2012, 2013 and 2014 respectively. | ||||||||||||||||||
The impairment loss relates to the Company’s subsidiary Vubites which enables businesses to advertise locally (targeted advertising in local and specific cities in India) on national television channels. Vubites offers web based tools for small businesses to create low cost advertisement for television broadcast. This business is dependent on effective splicing and sale to local businesses in different cities of broadcasting spots purchased from national television channels. The impairment resulted from similar targeted advertising services now being offered directly by the television channels and on account of aggressive sales and marketing strategy launched by competitors which have provided them with deeper market access. The fair value of the reporting unit is insignificant. | ||||||||||||||||||
Other_noncurrent_assets
Other non-current assets | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | |||||||||
Other Assets Disclosure [Text Block] | ' | |||||||||
9 | Other non-current assets | |||||||||
Other non-current assets comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Prepaid expenses | 187,176 | 177,659 | ||||||||
Rent deposits | 825,055 | 767,616 | ||||||||
Loans to employees | 32,143 | 52,029 | ||||||||
Amount receivable on sale of investment (See Note - 6) | — | 461,545 | ||||||||
Total | 1,044,374 | 1,458,849 | ||||||||
The Company had subscribed to convertible promissory notes (referred to as the “notes”) issued by Examville.com LLC, for total cash consideration of US$1,100,000. During the year ended March 31, 2013, the Company recorded an other than temporary impairment loss of US$1,100,000 because the Company did not expect to recover the carrying amount. | ||||||||||
Accounts_payable_and_accrued_l
Accounts payable and accrued liabilities | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Payables And Accruals [Abstract] | ' | |||||||||
Accounts Payable And Accrued Liabilities Disclosure [Text Block] | ' | |||||||||
10 | Accounts payable and accrued liabilities | |||||||||
Accounts payable and accrued liabilities comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Accounts payable | 1,592,630 | 1,637,008 | ||||||||
Accrued expenses | 2,141,812 | 1,500,002 | ||||||||
Taxes payable | 217,460 | 369,314 | ||||||||
Employee incentive payable | 145,549 | 155,281 | ||||||||
Other employee payables | 1,290,289 | 1,056,857 | ||||||||
Other current liabilities | 65,968 | 64,950 | ||||||||
Total | 5,453,708 | 4,783,412 | ||||||||
Other_noncurrent_liabilities
Other non-current liabilities | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||||
11 | Other non-current liabilities | |||||||||
Other non-current liabilities comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Unearned revenues | 217,021 | 320,977 | ||||||||
Retirement benefits | 479,799 | 466,280 | ||||||||
Other liabilities | 197,438 | 151,742 | ||||||||
Total | 894,258 | 938,999 | ||||||||
Shareholders_equity
Shareholders' equity | 12 Months Ended | |
Mar. 31, 2014 | ||
Equity [Abstract] | ' | |
Treasury Stock [Text Block] | ' | |
12 | Shareholders’ equity | |
Treasury shares | ||
During the fiscal year ended March 31, 2010 the Company formed Rediff.com India Limited Employee Trust (“Trust”). The Trust is controlled and administrated by senior employees of the Company. The Company is the primary beneficiary of the Trust and, accordingly has consolidated the Trust. The Trust acquired 1,015,000 shares for a consideration of US$4,426,605 and reserved these shares for benefit of Company’s employees and directors. | ||
Sales_and_marketing
Sales and marketing | 12 Months Ended | |
Mar. 31, 2014 | ||
Other Income And Expenses [Abstract] | ' | |
Other Income And Other Expense Disclosure [Text Block] | ' | |
13 | Sales and marketing | |
Sales and marketing expense includes advertising cost of US$1,650,747, US$92,135 and US$313,336 for the fiscal years ended March 31, 2012, 2013 and 2014 respectively. | ||
Related_party_transactions
Related party transactions | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Related party transactions [Text Block] | ' | |||||||||
14 | Related party transactions | |||||||||
The Company’s principal related parties are its founder shareholders, directors and companies that the founder shareholders and directors control. The Company enters into transactions with such related parties in the normal course of business. Related party transactions and balances, are as follows: | ||||||||||
Product Development Expenses | ||||||||||
During the fiscal years ended March 31, 2012 and 2013, the Company incurred product development expenses (including amount capitalized) of US$137,490 and US$95,395, respectively, on account of services rendered by Tachyon Technologies Private Ltd, an equity method investee. | ||||||||||
Trade account receivables write off | ||||||||||
During the fiscal year ended March 31, 2013, the Company wrote off US$206,974 trade account receivables from Edelweiss Capital Services Ltd, in which a director of Rediff is shareholder and director, against the recorded allowance. The allowance for trade account receivables was recorded in the year ended March 31, 2012. | ||||||||||
Investment | ||||||||||
During the fiscal year ended March 31, 2013, the Company subscribed to rights issued by Runa Inc. and by means of the exercise of those rights purchased shares in Runa Inc. for US$104,987. A director of the Company is a shareholder and key member of the management personnel of Runa Inc. | ||||||||||
Balances with related parties include: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Accounts payable for product development expense | 14,709 | — | ||||||||
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | |||||||||||||
Retirement Benefits [Text Block] | ' | |||||||||||||
15 | Retirement Benefits | |||||||||||||
Gratuity | ||||||||||||||
The Company provides for gratuity on an actuarial valuation. The Company has an unfunded defined benefit retirement plan covering eligible employees in India. This plan provides for a lump-sum payment to be made to vested employees at retirement, death or termination of employment of an amount equivalent to 15 days basic salary, payable for each completed year of service. These gratuity benefits vest upon an employee’s completion of five years of service. | ||||||||||||||
The following tables set out the amounts recognized in the Company’s consolidated financial statements for the fiscal years ended March 31, 2012, 2013 and 2014. The measurement date used is March 31 of the relevant fiscal year. | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at the beginning of the year | 434,594 | 446,146 | 527,512 | |||||||||||
Actuarial (gain) loss | -10,478 | 14,941 | -60,402 | |||||||||||
Service cost | 78,983 | 75,039 | 75,405 | |||||||||||
Interest cost | 41,987 | 44,025 | 46,086 | |||||||||||
Benefits paid | -39,297 | -26,382 | -27,314 | |||||||||||
Effect of exchange rate changes | -59,643 | -26,257 | -49,781 | |||||||||||
Benefit obligation at the end of the year | 446,146 | 527,512 | 511,506 | |||||||||||
Current – (included in other employee payable) | 36,885 | 47,713 | 45,226 | |||||||||||
Non-current – (included in retirement benefits) | 409,261 | 479,799 | 466,280 | |||||||||||
Accumulated benefit obligation was US$290,852 and US$292,701 as of March 31, 2013 and 2014 respectively. | ||||||||||||||
Net gratuity cost for the years ended March 31, 2012, 2013 and 2014 comprise of the following: | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Service cost | 78,983 | 75,039 | 75,405 | |||||||||||
Interest cost | 41,987 | 44,025 | 46,086 | |||||||||||
Recognized net actuarial (gain) loss | -10,478 | 14,941 | -60,402 | |||||||||||
Net gratuity cost | 110,492 | 134,005 | 61,089 | |||||||||||
The assumptions used in accounting for gratuity in the years ended March 31, 2012, 2013 and 2014 were as follows: | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Discount rate | 9.24 | % | 8.75 | % | 9.6 | % | ||||||||
Rate of increase in compensation | 7 | % | 7 | % | 7 | % | ||||||||
The following benefit payments, which reflect expected future services, as appropriate are expected to be paid | ||||||||||||||
Year ending March 31, | US$ | |||||||||||||
2015 | 45,225 | |||||||||||||
2016 | 45,108 | |||||||||||||
2017 | 140,599 | |||||||||||||
2018 | 55,641 | |||||||||||||
2019 | 73,910 | |||||||||||||
2020-2024 | 528,270 | |||||||||||||
The expected benefits are based on the same assumptions used to measure the Company’s benefit obligation as of March 31, 2014. | ||||||||||||||
Provident Fund | ||||||||||||||
Employees based in India and the Company each, contribute at the rate of 12% of salaries to a provident fund maintained by the Government of India for the benefit of such employees. The provident fund is a defined contribution plan. Accordingly, the Company expenses such contributions as incurred. Amounts contributed by the Company to the provident fund, in aggregate, were US$279,396, US$259,684 and US$228,075 for the years ended March 31, 2012, 2013 and 2014, respectively. | ||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Tax Disclosure [Text Block] | ' | |||||||||||||||
16 | Income Taxes | |||||||||||||||
The components of income before income taxes and equity in net earnings of equity method investees are as follows: | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
– Domestic | -6,422,577 | -7,177,897 | -9,264,032 | |||||||||||||
– Foreign | -973,378 | -4,371,884 | 1,639,852 | |||||||||||||
Loss before income taxes and equity in net loss (earning) of equity method investee | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||
Current income tax expense (benefit) | 65,555 | -33,248 | -152,774 | |||||||||||||
The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax expense reported in the statements of comprehensive loss is as follows: | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
Loss before income taxes and equity in net loss (earning) of equity method investee | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||
Indian statutory income tax rate | 32.445 | % | 32.445 | % | 33.99 | % | ||||||||||
Expected income tax expense (benefit) | -2,399,618 | -3,747,327 | -2,591,459 | |||||||||||||
Tax effect of:– | ||||||||||||||||
Adjustments to reconcile expected income tax expense to reported income tax expense: | ||||||||||||||||
Employee stock-based compensation | 298,428 | 245,313 | 163,683 | |||||||||||||
Valuation allowance recognized during the year | 2,337,757 | 3,060,830 | 1,998,669 | |||||||||||||
Goodwill impairment | — | 648,900 | — | |||||||||||||
Tax in foreign jurisdictions | -52,715 | -142,710 | 262,459 | |||||||||||||
Earnings (loss) of equity method investees | -69,995 | 27,354 | — | |||||||||||||
Others | -48,302 | -125,608 | 13,874 | |||||||||||||
Income tax expense (benefit) | 65,555 | -33,248 | -152,774 | |||||||||||||
The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities are as follows: | ||||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Net operating loss carry forwards | 7,062,788 | 7,262,789 | ||||||||||||||
Depreciation and amortization | 4,358,969 | 5,573,817 | ||||||||||||||
Allowances for doubtful accounts receivables | 343,500 | 218,415 | ||||||||||||||
Employee benefits | 322,573 | 320,564 | ||||||||||||||
Minimum alternate tax credit | 314,764 | 284,859 | ||||||||||||||
Loss of equity method investees | 270,527 | 256,483 | ||||||||||||||
Gross deferred tax assets | 12,673,121 | 13,916,927 | ||||||||||||||
Valuation allowance | -12,673,121 | -13,916,927 | ||||||||||||||
Deferred tax assets | — | — | ||||||||||||||
Deferred tax liability: | ||||||||||||||||
Intangible assets | 185,982 | - | ||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Net Deferred tax liability | 185,982 | - | ||||||||||||||
Movements in valuation allowance: | ||||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Balance as at beginning of the year | 10,783,227 | 12,673,121 | ||||||||||||||
Valuation allowance recognized during the year | 3,060,830 | 1,998,669 | ||||||||||||||
Expired net operating carry forward losses | -811,255 | - | ||||||||||||||
Reduction in deferred tax asset and corresponding valuation allowance pertaining to earlier years | — | -44,777 | ||||||||||||||
Reduction on account of unrecognized tax benefit | 5,010 | 3,020 | ||||||||||||||
Effect of currency translation | -364,691 | -713,106 | ||||||||||||||
Balance as at end of the year | 12,673,121 | 13,916,927 | ||||||||||||||
Rediff’s net operating loss carry forwards aggregating approximately US$11,011,441 as of March 31, 2014 will expire between April 2014 and March 2020. | ||||||||||||||||
As of March 31, 2014, ValuCom has net operating loss carry forwards available to offset future federal taxable income of US$3,033,000, which expire in years 2021 through 2031. | ||||||||||||||||
As of March 31, 2014, Rediff Holdings, Inc. has net operating loss carry forwards of approximately US$4,014,000 for federal income tax purposes, which expire in years 2020 through 2032. | ||||||||||||||||
Rediff’s unabsorbed depreciation of US$15,915,398 can be indefinitely carried forward. | ||||||||||||||||
Realization of the future tax benefits related to the deferred tax asset is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carry forward period. Management has considered these factors and believes that a valuation allowance is required for each of the periods presented. | ||||||||||||||||
Recoverable taxes mainly consist of withholding tax on income from advertising services and interest income, which the Company claimed as refund. | ||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits during the fiscal years ended March 31, 2013 and 2014 is as follows: | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Unrecognized tax benefits balance at beginning of the | 21,224 | 5,481 | ||||||||||||||
year | ||||||||||||||||
Gross decrease for tax positions of prior years | -14,483 | -1,185 | ||||||||||||||
Effect of currency translation | -1,260 | -576 | ||||||||||||||
Unrecognized tax benefits balance at end of the year | 5,481 | 3,720 | ||||||||||||||
The Company’s two major tax jurisdictions are India and the U.S. In India, tax returns from fiscal year 2010 are subject to examination by the direct taxing authority. The assessments for fiscal year 2000 onwards are subject matters of appeals with the direct taxing authorities. The Company’s U.S. federal and state tax returns pertaining to fiscal year 2012 onwards remains subject to examination in accordance with the statute of limitation prescribed by the relevant authorities. | ||||||||||||||||
Segments
Segments | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
17 | Segments | |||||||||||||||||||||||||||||||||||||
The chief operating decision maker’s (Rediff’s Chairman and Managing Director) allocates resources to and assess the performance of the segments of the Company. The chief operating decision maker evaluates segment performance primarily by results of the segment before operating expenses. | ||||||||||||||||||||||||||||||||||||||
The Company has two operating segments, namely, the India Online business and the U.S. Publishing business. | ||||||||||||||||||||||||||||||||||||||
(i) | India Online business primarily includes revenues from advertising and fee-based services. Advertising includes revenues mainly from display and performance based advertising and to a lesser extent from sponsorships. Fee-based services include revenues from online shopping, subscription services and mobile value-added services. | |||||||||||||||||||||||||||||||||||||
(ii) | US Publishing business primarily includes revenues from advertisement on the Rediff India Abroad website and revenues from the print newspapers, India Abroad and India in New York. | |||||||||||||||||||||||||||||||||||||
Following are the segment results and segment assets for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
India | US | Total | India | US | Total | India | US | Total | ||||||||||||||||||||||||||||||
Online | Publishing | Online | Publishing | Online | Publishing | |||||||||||||||||||||||||||||||||
Business | Business | Business | Business | Business | Business | |||||||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | ||||||||||||||||||||||||||||||
Revenues from external customers: | ||||||||||||||||||||||||||||||||||||||
Advertising | 12,517,461 | 3,462,646 | 15,980,107 | 8,485,560 | 2,872,638 | 11,358,198 | 8,161,964 | 2,534,345 | 10,696,309 | |||||||||||||||||||||||||||||
Fee based services | 3,705,761 | 256,398 | 3,962,159 | 4,041,904 | 258,602 | 4,300,506 | 5,206,078 | 218,410 | 5,424,488 | |||||||||||||||||||||||||||||
Total revenues | 16,223,222 | 3,719,044 | 19,942,266 | 12,527,464 | 3,131,240 | 15,658,704 | 13,368,042 | 2,752,755 | 16,120,797 | |||||||||||||||||||||||||||||
Cost of revenues (excluding depreciation and amortization) | 8,241,612 | 2,532,509 | 10,774,121 | 7,470,935 | 2,480,949 | 9,951,884 | 8,330,948 | 2,082,116 | 10,413,064 | |||||||||||||||||||||||||||||
Segment Results | 7,981,610 | 1,186,535 | 9,168,145 | 5,056,529 | 650,291 | 5,706,820 | 5,037,094 | 670,639 | 5,707,733 | |||||||||||||||||||||||||||||
Segment Assets | 44,457,954 | 3,483,912 | 47,941,866 | 35,577,371 | 820,713 | 36,398,084 | 24,960,743 | 2,447,659 | 27,408,402 | |||||||||||||||||||||||||||||
Capital expenditure | 5,375,763 | 33,786 | 5,409,549 | 2,105,552 | 2,315 | 2,107,867 | 1,469,037 | 6,325 | 1,475,362 | |||||||||||||||||||||||||||||
Depreciation/amortization | 3,490,725 | 9,044 | 3,499,769 | 3,651,816 | 12,560 | 3,664,376 | 3,054,173 | 6,096 | 3,060,269 | |||||||||||||||||||||||||||||
The following is a reconciliation of the segment results to (loss) income before income taxes of the Company for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||||||||||||||||||||
Segment result | 9,168,145 | 5,706,820 | 5,707,733 | |||||||||||||||||||||||||||||||||||
Operating expenses (including depreciation and amortization) | -20,005,598 | -19,571,322 | -18,048,045 | |||||||||||||||||||||||||||||||||||
Other income, net | 3,441,498 | 2,314,721 | 4,716,132 | |||||||||||||||||||||||||||||||||||
Net loss before income taxes and equity in net earnings (loss) of equity method investees | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||||||||||||||||||||||||
The following is a reconciliation of the segment assets to the total assets as at March 31, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
As at March 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||||||||||
US$ | US$ | |||||||||||||||||||||||||||||||||||||
India Online business | 35,577,371 | 24,960,743 | ||||||||||||||||||||||||||||||||||||
US Publishing business | 820,713 | 2,447,659 | ||||||||||||||||||||||||||||||||||||
Total segment assets | 36,398,084 | 27,408,402 | ||||||||||||||||||||||||||||||||||||
Investment, at cost | 1,404,987 | — | ||||||||||||||||||||||||||||||||||||
Rediff.com India Employee trust | 45,931 | 45,137 | ||||||||||||||||||||||||||||||||||||
Total assets | 37,849,002 | 27,453,539 | ||||||||||||||||||||||||||||||||||||
Revenues are attributed to individual countries according to the location of the customers. | ||||||||||||||||||||||||||||||||||||||
Revenues derived from external customers are as follows: | ||||||||||||||||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||||||||||||||||||||
United States and Canada | 3,382,387 | 3,030,249 | 3,314,354 | |||||||||||||||||||||||||||||||||||
India | 16,078,008 | 12,241,845 | 12,176,561 | |||||||||||||||||||||||||||||||||||
Rest of the world | 481,871 | 386,610 | 629,882 | |||||||||||||||||||||||||||||||||||
Total revenues | 19,942,266 | 15,658,704 | 16,120,797 | |||||||||||||||||||||||||||||||||||
No single customer accounted for 10 percent or more of the total revenues for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
Long-lived assets by location are as follows: | ||||||||||||||||||||||||||||||||||||||
As of March 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||||||||||
US$ | US$ | |||||||||||||||||||||||||||||||||||||
United States and Canada | 45,063 | 5,912 | ||||||||||||||||||||||||||||||||||||
India | 7,657,611 | 3,565,310 | ||||||||||||||||||||||||||||||||||||
Total | 7,702,674 | 3,571,222 | ||||||||||||||||||||||||||||||||||||
Concentration_of_credit_risk
Concentration of credit risk | 12 Months Ended | |
Mar. 31, 2014 | ||
Risks And Uncertainties [Abstract] | ' | |
Concentration Risk Disclosure [Text Block] | ' | |
18 | Concentration of credit risk | |
Concentrations of credit risk exist when changes in economic or geographic factors affect groups of counter parties whose aggregate credit exposure is material in relation to the Company’s total credit exposure. | ||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. | ||
The Company maintains the majority of its cash in Indian Rupees with reputed banks in India with high quality credit rating. | ||
The Company performs ongoing evaluations to determine customer credit limit, but no collateral is required. In 2013 and 2014, approximately 85% and 89% of our accounts receivable were derived from revenues earned from customers located in India. The majority of the customers outside India are located in the United States. | ||
Stockbased_compensation
Stock-based compensation | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||
Disclosure Of Compensation Related Costs Share Based Payments [Text Block] | ' | |||||||||||||||
19 | Stock-based compensation | |||||||||||||||
2002 Stock Option Plan | ||||||||||||||||
In January 2002 the Company’s Board of Directors approved the 2002 Stock Option Plan (“2002 plan”), which provides for the grant of stock options to the Company’s employees. Unless terminated sooner, a grant under this plan will terminate automatically after expiry of 10 years from the date of issue of such grant. A total of 280,000 of the Company’s equity shares were reserved pursuant to 2002 plan. | ||||||||||||||||
Under the terms of the 2002 plan, the board or a committee or a sub-committee of the board will determine and authorize the grant of options to eligible employees. Such options vest at the rate of 25% on each successive anniversary of the grant date, until fully vested. Each option grant carries with it the right to purchase Company’s one ADS at the exercise price during the exercise period, which expires ten years from the date of grant. The exercise price is determined by the board (or a committee or a sub-committee of the board) and shall be no more than 110% of the fair market value of ADS and no less than 50% of the fair market value of ADS on the date of the grant. | ||||||||||||||||
A summary of option activity under the 2002 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Options (in terms | average | average | intrinsic | |||||||||||||
of shares) | exercise | remaining | value | |||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 16,500 | 17.69 | ||||||||||||||
Expired | 4,750 | 14.76 | ||||||||||||||
Outstanding as at March 31, 2014 | 11,750 | 18.88 | 5.3 | — | ||||||||||||
Exercisable as at March 31, 2014 | 8,000 | 17.38 | 4.3 | — | ||||||||||||
The total grant date fair value of stock options vested during the year ended March 31, 2013 and 2014 were US$78,645and US$123,585. There were no vesting during the year ended March 31, 2012. | ||||||||||||||||
The weighted average grant date fair value of options granted during the year ended March 31, 2012 was US$14.98. There were no options granted during the years ended March 31, 2013 and 2014. The total intrinsic value of the options exercised during the year ended March 31, 2012 was US$912,558. There were no options exercised during the years ended March 31, 2013 and 2014. | ||||||||||||||||
Cash received from option exercises under the 2002 Stock Option Plan for the year ended March 31, 2012 was US$243,234. | ||||||||||||||||
As of March 31, 2014, there was US$29,798 of total unrecognized option cost related to non-vested stock options granted under the plan. That cost is expected to be recognized over a weighted average period of 1.31 years. To the extent the forfeiture rate is different from what we have anticipated stock-based compensation related to these awards will be different from our expectations. | ||||||||||||||||
2004 Stock Option Plan | ||||||||||||||||
In June 2004, the Company’s Board of Directors approved the 2004 Stock Option Plan (“2004 plan”), which provide for the grant of stock options to the Company’s employees. Unless terminated sooner, the grant under this plan will terminate automatically after expiry of 10 years from the date of issue of such grant. A total of 358,000 of the Company’s equity shares were reserved pursuant to 2004 plan. | ||||||||||||||||
Under the terms of the 2004 plan, the board or a committee or a sub-committee of the board will determine and authorize the grant of options to eligible employees. Such options vest at the rate of 25% on each successive anniversary of the grant date, until fully vested. Each option grant carries with it the right to purchase Company’s one ADS at the exercise price during the exercise period, which expires ten years from the date of grant. The exercise price is determined by the board (or a committee or a sub-committee of the board) and shall be no more than 110% of the fair market value of ADS and no less than 50% of the fair market value of ADS on the date of the grant. | ||||||||||||||||
A summary of option activity under the 2004 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
options (in terms | average | average | intrinsic | |||||||||||||
of shares) | exercise | remaining | value | |||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 135,112 | 11.41 | ||||||||||||||
Forfeited | 3,875 | 5.52 | ||||||||||||||
Outstanding as at March 31, 2013 | 131,237 | 11.59 | 2.5 | — | ||||||||||||
Exercisable as at March 31, 2014 | 131,237 | 11.59 | 2.5 | — | ||||||||||||
The total grant date fair value of stock options vested during the year ended March 31, 2012, 2013 and 2014 was US$705,890, US$108,481 and US$53,126, respectively. | ||||||||||||||||
There were no options granted during the years ended March 31, 2012, 2013 and 2014. The total intrinsic value of the options exercised during the year ended March 31, 2012 was US$1,230,857. There were no options exercised during the years ended March 31, 2013 and 2014. | ||||||||||||||||
Cash received from option exercises under the 2004 Stock Option Plan for the year ended March 31, 2012 was US$912,310. | ||||||||||||||||
As of March 31, 2014, there was no non-vested options and hence, no unrecognized option cost related to non-vested stock options granted under the plan. | ||||||||||||||||
2006 Stock Option Plan | ||||||||||||||||
The 2006 Stock Option Plan (“2006 ESOP”) consists of two plans, namely the ADR Linked Employee Stock Option Plan-2006 and Employee Stock Option Plan-2006 which is linked to the shares of the Company. These plans were adopted and approved by the Compensation committee on June 20, 2006 in accordance with the approval granted by shareholders on March 31, 2006. Unless terminated sooner, the grant under this plan will terminate automatically after expiry of 10 years from the date of issue of such grant. A total of 670,000 equity shares were approved for issuance under both the plans. | ||||||||||||||||
Under the terms of the 2006 plans, the board or a committee or a sub-committee of the board will determine and authorize the grant of options to eligible employees. Such options vest at the rate of 20% - 25% on each successive anniversary of the grant date, until fully vested. Each option grant carries with it the right to purchase Company’s one equity share / ADS depending on the plan to which the option relates at the exercise price during the exercise period, which expires ten years from the date of grant. The exercise price for the ADR Linked Employee Stock Option Plan-2006 is determined by the board (or a committee or a sub-committee of the board) and shall be no more than 110% of the fair market value of ADS and no less than 50% of the fair market value of ADS on the date of the grant. The exercise price for the Employee Stock Option Plan-2006 is also determined by the board (or a committee or a sub-committee of the board) and shall not be less than the face value of equity shares. | ||||||||||||||||
A summary of option activity under the 2006 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
options (in | average | average | intrinsic value | |||||||||||||
terms of shares) | exercise | remaining | ||||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 505,813 | 8.5 | ||||||||||||||
Granted | 1,500 | 4.76 | ||||||||||||||
Forfeited | 16,750 | 5.01 | ||||||||||||||
Outstanding as at March 31, 2014 | 490,563 | 8.54 | 4.9 | 794,902 | ||||||||||||
Exercisable as at March 31, 2014 | 442,938 | 8.84 | 4.6 | 693,207 | ||||||||||||
The total grant date fair value of stock options vested during the year ended March 31, 2012, 2013 and 2014 was US$873,798, US$1,542,072 and US$967,248 respectively. | ||||||||||||||||
The weighted-average grant-date fair value of options granted during the year ended March 31, 2012, 2013 and 2014 was US$12.86, US$Nil and US$3.76 for each option, respectively. The total intrinsic value of the options exercised during the year ended March 31, 2012 was US$670,998. There were no stock options exercised during the years ended March 31, 2013 and 2014. | ||||||||||||||||
Cash received from option exercises under the 2006 Stock Option Plan for the year ended March 31, 2012 was US$209,133. | ||||||||||||||||
As of March 31, 2014, there was US$394,481 of total unrecognized option cost related to non-vested stock options granted under the plan. That cost is expected to be recognized over a weighted-average period of1.1 years. To the extent the forfeiture rate is different from what we have anticipated stock-based compensation related to these awards will be different from our expectations. | ||||||||||||||||
The fair value of each option is estimated on the date of grant using the Black-Scholes model with the following assumptions: | ||||||||||||||||
Years ended March 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Dividend yield | 0% | — | 0% | |||||||||||||
Expected term | 5.5 – 7 years | — | 5.5 – 7 years | |||||||||||||
Risk free interest rates | 1.23% – 2.84% | — | 0.71% - 1.14% | |||||||||||||
Expected volatility | 78.36% – 81.98% | — | 81.27% - 86.68% | |||||||||||||
Expected volatilities are based on the historical volatility of the Company’s stock. The expected term of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||
Total stock-based compensation cost recognized under the various employee stock option plans were US$787,874, US$756,090 and US$481,563 for the year ended March 31, 2012, 2013 and 2014 respectively. The compensation cost has been allocated to cost of revenues and operating expenses as follows: | ||||||||||||||||
Year ended March 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
Cost of revenues | 60,224 | 50,151 | 17,425 | |||||||||||||
Sales and marketing | 138,930 | 122,316 | 119,653 | |||||||||||||
Product development | 385,737 | 321,473 | 207,400 | |||||||||||||
General and administrative | 202,983 | 262,150 | 137,085 | |||||||||||||
Earnings_loss_per_share_and_AD
Earnings (loss) per share and ADS | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
20 | Earnings (loss) per share and ADS | ||||||||||||
For the years ended March 31, 2012, 2013 and 2014, the following table sets forth the computation of basic and diluted earnings per share and ADS: | |||||||||||||
Year ended March 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss | US$ | -7,677,245 | US$ | -11,432,223 | US$ | -7,471,406 | |||||||
Weighted average equity shares for basic and diluted earnings (loss) per share | 13,758,635 | 13,795,178 | 13,795,178 | ||||||||||
Earnings /(loss) per share | – basic | -0.558 | -0.828 | -0.542 | |||||||||
– diluted | -0.558 | -0.828 | -0.542 | ||||||||||
Earnings / (loss) per ADS | – basic | -0.279 | -0.414 | -0.271 | |||||||||
– diluted | -0.279 | -0.414 | -0.271 | ||||||||||
Potentially dilutive shares relating to outstanding employee stock option aggregating 324,027, 140,247 and 124,214 as at March 31, 2012, 2013 and 2014, respectively have been excluded from the computation of diluted earnings per share for these periods as their effect was anti-dilutive. | |||||||||||||
Dividends
Dividends | 12 Months Ended | |
Mar. 31, 2014 | ||
Equity [Abstract] | ' | |
Stockholders Equity Note Disclosure [Text Block] | ' | |
21 | Dividends | |
Dividends, if any, will be declared and paid in Indian Rupees. Indian law requires that any dividend be declared out of accumulated distributable profits only after the transfer to a general reserve of a specified percentage of net profit computed in accordance with current regulations. The remittance of dividends outside India is governed by Indian law on foreign exchange and is subject to applicable taxes. | ||
Allowance_for_doubtful_trade_a
Allowance for doubtful trade accounts receivables | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||
Loans Notes Trade And Other Receivables Disclosure [Text Block] | ' | |||||||||||||||||||||
22 | Allowance for doubtful trade accounts receivables | |||||||||||||||||||||
Description | Balance at | Expense / | Bad debts | Effect of | Balance at | |||||||||||||||||
Beginning of | (Reversal) | written off | exchange rate | end | ||||||||||||||||||
year | changes | of year | ||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||||
Fiscal 2014 | 876,300 | 190,493 | -420,018 | -28,721 | 618,054 | |||||||||||||||||
Fiscal 2013 | 3,200,434 | -48,580 | -2,106,011 | -169,543 | 876,300 | |||||||||||||||||
Fiscal 2012 | 4,022,664 | 37,700 | -423,245 | -436,685 | 3,200,434 | |||||||||||||||||
Fair_value_of_financial_instru
Fair value of financial instruments | 12 Months Ended | |
Mar. 31, 2014 | ||
Fair Value Disclosures [Abstract] | ' | |
Fair Value Disclosures [Text Block] | ' | |
23 | Fair value of financial instruments | |
The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued liabilities, approximate their fair values due to the short- term nature of these instruments. | ||
As mentioned in Note 7, the Company’s US publishing business reporting unit was measured at fair value of US$6.35 million on a non-recurring basis, using level 3 — unobservable inputs, for annual goodwill impairment test. Accordingly, the Company recorded an impairment charge of US$2,000,000 on December 31, 2012. | ||
Estimation of fair value of financial instrument relies on management judgment; however there are inherent uncertainties in any estimation technique. Therefore, for substantially all financial instruments, the fair values are not necessarily indicative of all the amounts the Company could have realized in a sales transaction as of March 31, 2014. The estimated fair value amounts as of March 31, 2014 have been measured as of this date, and have not been re-evaluated or updated for purposes of these consolidated financial statements. | ||
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||||||||||||
Commitments And Contingencies Disclosure [Text Block] | ' | |||||||||||||
24 | Commitments and contingencies | |||||||||||||
As of March 31, 2014 and 2013, the Company has commitment for purchase of computer equipment and cost to develop internal use software aggregating US$774,735 and US$675,458, respectively. | ||||||||||||||
Commitment relating to operating leases is as below: | ||||||||||||||
The Company leases office premises and residential apartments for employees under various operating leases. Certain of these arrangements have free or escalating rent payment provisions. The Company recognized rent expense under such arrangements on a straight-line basis. Operating lease expense that has been included in the determination of the net income is as follows: | ||||||||||||||
Years ended March 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Office premises | 778,364 | 726,893 | 700,402 | |||||||||||
Residential apartments for employees | 102,725 | 104,557 | 81,308 | |||||||||||
Total operating lease expense | 881,089 | 831,450 | 781,710 | |||||||||||
The minimum annual lease commitments under the above operating leases that have initial or remaining terms in excess of one year are as follows: | ||||||||||||||
For the year ending March 31, | US$ | |||||||||||||
2015 | 525,791 | |||||||||||||
2016 | 308,732 | |||||||||||||
2017 | 231,058 | |||||||||||||
2018 | 237,989 | |||||||||||||
2019 | 40,753 | |||||||||||||
Litigation and Other Legal Matters | ||||||||||||||
Action Relating to Access to Pornographic Material | ||||||||||||||
On June 21, 2000, Rediff, certain of its current and then directors and others (Ajit Balakrishnan, Arun Nanda, Abhay Havaldar, Sunil Phatarphekar, Charles Robert Kaye and Tony Janz) were named as defendants in a criminal complaint (RCC Complaint Number 76 of 2000) filed by Mr. Abinav Bhatt, who was then a 22 year old student, before the Judicial Magistrate, First Class, Pune, India, alleging commission of an offence, under Section 292 of the IPC for distributing, publicly exhibiting and putting into circulation obscene, pornographic and objectionable material. The RCC Complaint alleged that Rediff, through its website “www.rediff.com”, provided a search facility that enabled Internet users to view pornographic, objectionable and obscene material. On November 27, 2000, the Judicial Magistrate passed an order on the Complaint holding that a prima facie case under Section 292 of the IPC had been made out against Rediff and directed commencement of criminal proceedings against all the defendants. A criminal writ petition was filed in the High Court of Mumbai (Sunil N. Phatarphekar & Ors. v. Abhinav Bhatt and Ors., Mumbai High Court, Criminal Writ Petition No. 1754 of 2000) by the aforementioned defendants, seeking among other relief the setting aside of the order of the Judicial Magistrate. The High Court of Mumbai in its order dated December 20, 2000, while granting ad-interim relief to the petitioners in the Writ Petition, stayed the order of Judicial Magistrate pending final disposal of the Writ Petition. The Writ Petition has been admitted by the High Court of Mumbai. While Rediff believes that the lawsuit is without merit, and that it and its directors have a valid defense to the charges, in the event that it is unsuccessful in its defense, Rediff and its directors may face both criminal penalties and monetary fines or damages. | ||||||||||||||
Under Indian law, any person who publishes or transmits or causes to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished (i) for the first conviction, with imprisonment of up to five years and with a fine of up to Rs.100,000 (approximately US$1,700); and (ii) in the event of a second conviction, with imprisonment of up to ten years and with a fine of up to Rs.200,000 (approximately US$3,400). | ||||||||||||||
Actions Relating to Trademark Infringement | ||||||||||||||
In May, 2008, a complaint was filed by The Board of Control of Cricket in India (“BCCI”) against Sandeep Goyal and Rediff alleging that the depiction of images on the online game known as Indian Fantasy League started by Sandeep Goyal has been violative of the Indian Premier League (“IPL”) trademark. BCCI is seeking (a) a permanent injunction restraining defendants from the use of logo “Indian Fantasy League.com”; (b) shutdown of the website Indianfantasyleague.com; (c) to render the accounts of all profits earned by the said website and damages to the tune of Rs.1.0 million (approximately US$17,000). Rediff has filed its response to BCCI Complaint, and among the defenses Rediff has raised are: (a) it is Sandeep Goyal who has infringed the trademark of IPL and not Rediff.com; (b) Rediff.com only provides the domain hosting and web based email solution services which enables the subscriber to set up and manage their website as per the terms and conditions of Rediff business solutions; (c) subscribers such as Sandeep Goyal are required to abide by and comply with the terms and conditions Rediff imposes on its subscribers which provides that the subscriber shall be solely responsible for producing, electronically uploading and maintaining his website and such subscriber shall ensure that all upload material shall be owned and/or properly licensed by the Subscriber and shall not adversely affect any rights of any third party. Although Rediff believes that it has valid defenses to the charges, if Rediff is unsuccessful after exhausting all legal remedies, we could be subject to monetary fines or damages. | ||||||||||||||
In February, 2006, a complaint was filed by Marksman Pvt. Ltd. against various telecom operators and internet service providers and Rediff.com alleging infringement of copyright of Marksman by way of dissemination of information relating to scores, alerts and updates and or other events happenings via Short Message Service (SMS) Technology on wireless and mobile telephones in respect of One Day International Cricket Matches (“ODIs”) during India’s tour of Pakistan Scheduled in February, 2006. The Company has filed its response and among the defenses raised were: (a) Rediff.com along with other telecom operators and service providers have not infringed the copyrights of Marksman; (b) the information relating to scores, alerts and updates and or other events happening via Short Message Service (SMS) Technology on wireless and mobile telephones in respect of ODIs which was being provided to subscribers was sourced from public domain and as such no exclusivity can be claimed since it falls into public domain. The one judge panel, while dismissing a request for an interim order, has directed the defendants to maintain the accounts of the SMS received during the ODIs. Marksman will have to first amend the suit to seek damages before any claim is made against Rediff.com. In 2006, Marksman has sought to amend the suit prayer to include damages. Although the Company believes that it has valid defenses to the charges, if the Company is unsuccessful after exhausting all legal remedies, the Company could be subject to monetary fines or damages. | ||||||||||||||
Actions Relating to Patent Infringement | ||||||||||||||
In March, 2009 a complaint was filed against Rediff and 12 other defendants by S. Ramkumar, alleging violation of his patent rights in respect of Mobile phones with plurality of SIM cards sold through Rediff’s Shopping website. S. Ramkumar is seeking permanent injunction restraining the defendants, including Rediff, from infringing upon his patent with respect to the Mobile phones with plurality of SIM cards allocated to different communication networks, by manufacturing, marketing, selling and distributing mobile phones having simultaneous use of more than one SIM thereby infringing his products and patented process. S. Ramkumar is also claiming damages in the amount of Rs.1.0 million (approximately US$17,000). Rediff has already filed its response to the court based on the following defenses: (a) it is the vendors, and not Rediff, that sells shopping products on its website and that it has not infringed on any of Ramkumar’s intellectual property rights; (b) Rediff’s Shopping website only provides an online platform that enables customers and sellers to enter into sale/purchase transactions and it is not involved in the sale or purchase of the goods/products listed on its website; and (c) vendors are required to comply with the terms and conditions Rediff imposes on vendors using Rediff Shopping, which include providing Rediff with the description of their products, prices and product images, and which also specifically provide that vendors shall not infringe on third party rights, including third-party intellectual property rights. The case is likely to be taken up for arguments sometime in the future. Though Rediff is arrayed as a defendant, S. Ramkumar’s main grievance is only against the other defendants who are manufacturing, selling and distributing multiple SIM cards in alleged violation of the patent in favor of the S. Ramkumar. However, given the nature of the suit and pleadings there would not be any substantial monetary claim on the Company. | ||||||||||||||
The Company is also subject to other legal proceedings and claims, which have arisen in the ordinary course of its business. Those actions, when ultimately concluded and determined, will not, in the opinion of management, have a material effect on the results of operations, cash flows or the financial position of the Company. | ||||||||||||||
The Company has not recognized any loss accrual for the litigation disputes as the Company believes that it is probable that it would be successful on resolution of the litigation. The maximum total loss relating to these disputes would be approximately US$38,000 excluding any interest and penalties, which amounts cannot be reasonably estimated at this point of time. | ||||||||||||||
Significant_accounting_policie1
Significant accounting policies (Policies) | 12 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis Of Accounting Policy Policy [Text Block] | ' | ||
(a) | Basis of preparation | ||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||
Consolidation Policy [Text Block] | ' | ||
(b) | Basis of consolidation | ||
The consolidated financial statements include the financial statements of Rediff and its wholly – owned subsidiaries and variable interest entity (VIE) in which the Company is the primary beneficiary. All inter-company accounts and transactions are eliminated on consolidation. | |||
Equity Method Investments, Policy [Policy Text Block] | ' | ||
(c) | Investments in equity method investees | ||
Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method. The Company records its share of the results of these companies in the consolidated statement of comprehensive loss as equity in net earnings (loss) of equity method investees. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. Measurement of any impairment loss is based on its excess of the carrying value of the investment over its fair value. | |||
Use of Estimates, Policy [Policy Text Block] | ' | ||
(d) | Use of estimates | ||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities on the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for doubtful trade accounts receivables, impairment of goodwill, property, plant and equipment, intangible and investments, useful lives of property, plant and equipment and intangible assets, valuation of deferred tax assets, stock based compensation and employee benefits. Actual results could differ from those estimates. | |||
Revenue Recognition Policy [Text Block] | ' | ||
(e) | Revenue recognition | ||
India Online business | |||
India Online business includes revenues from advertising, sponsorship and fee based services. Advertisement and sponsorship income is derived from customers who advertise on the Company’s website or from targeted advertisement - direct links from the Company’s website, targeted emails to Rediffmail subscribers and advertising slots to regional advertisers. Fee based services include e-commerce, subscription services and mobile value-added services. E-commerce revenues primarily consist of commission earned on sale of items to customers who shop online while subscription services consist of subscriptions received for using e-mail and other subscriber services. Mobile value-added services include revenues derived from providing value added short messaging services and other related products to mobile phone users. | |||
Revenue from display of advertisement and sponsorship is recognized ratably based on delivery over the contractual period of the advertisement, commencing when the advertisement is placed on the website or broadcast. Revenues are also derived from sponsor buttons placed in specific areas of the Company’s website, which generally provide users with direct links to sponsor websites. These revenues are recognized ratably over the period in which the advertisement is displayed, provided that no significant Company obligations remain and collection of the resulting receivable is probable. Company obligations may include guarantees of a minimum number of impressions, or times, that an advertisement appears in pages viewed by users of the Company’s website. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impression levels are achieved. The Company also earns revenues from the sending of e-mail messages to its users on behalf of advertisers and such revenues are recognized ratably over the contracted period. | |||
E-commerce revenue primarily consists of commission from the sale of books, music, apparel, confectionery, gifts and other items to retail customers who shop at the Company’s online store. Customers directly place orders with vendors through the Company’s website. When an order is placed, the Company informs the vendor through an intranet and also confirms whether payment has already been collected by the Company through credit card/debit card or cheques, or whether the payment is to be made by the customer on cash-on-delivery (“COD”) basis. The vendor then dispatches the products to the customers. The vendor sends a periodic summary of the transactions executed for which the Company has collected payments on its behalf. The Company makes payment to the vendor after deduction of its share of margin, commission and costs. The Company recognizes as revenues the commission earned on these transactions and shipping costs recovered from customers. The Company provides incentives to its customers in the form of coupons and promo codes. These incentives are treated as reductions in revenue and in cases where such incentives exceed the commission amount, the excess is recognized as cost of revenue. Subscription service revenues primarily include income from various paid e-mail and other service products for the Company’s registered user base. Subscription income is deferred and recognized pro rata as fulfilled over the terms of such subscription. | |||
Mobile value-added services (“MVAS”) revenues are derived from providing value added short messaging services (“SMS”), e-mail and other related products to mobile phone users. The Company contracts with third-party mobile phone operators for sharing revenues from these services. Mobile value-added services based revenues are recognized when the service is performed. | |||
US Publishing business | |||
US Publishing business primarily include advertising and sponsorship revenues and consumer subscription revenues earned from the publication of India Abroad, a weekly newspaper distributed primarily in the United States and Canada. It also includes the advertising revenues of Rediff India Abroad, the website catering to the Indian community in the United States. | |||
Advertising revenues are recognized at the time of publication of the related advertisement. Subscription income is deferred and recognized pro rata as fulfilled over the terms of such subscription. | |||
Revenues from banners and sponsorships are recognized over the contractual period of the advertisement, commencing when the advertisement is placed on the website, provided that no significant obligations remain and collection of the resulting receivable is probable. Obligations may include guarantee of a minimum number of impressions, or times that an advertisement appears in pages viewed by users of the Company’s website. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impression levels are achieved. | |||
Cost Of Sales Policy [Text Block] | ' | ||
(f) | Costs and expenses | ||
Costs and expenses have been classified according to their primary functions in the following categories: | |||
Cost of revenues | |||
Cost of revenues primarily include cost of content for the Rediff websites, editorial costs, employee compensation, stock-based compensation, internet communication, data storage, software usage, printing and circulation costs for the India Abroad and India in New York newspapers and fee based services related costs. | |||
Sales and marketing | |||
Sales and marketing expenses primarily include employee compensation for sales and marketing personnel, advertising and promotion expenses, market research costs and stock-based compensation. The costs of advertising are expensed as and when incurred. | |||
Product development | |||
Product development costs primarily include software development expenses, compensation of product development personnel and stock-based compensation. Internal and external costs incurred to develop internal use software during application development stage is capitalized when the Company’s managing director has authorized and committed to funding the development, and it is probable that the software development will be completed and the software will perform the function intended. Upgrades and enhancements are capitalized only when these relate to additional features or result in additional functionality which the existing software is incapable of performing. All costs incurred during the preliminary project and post implementation and operation stages are expensed as incurred. | |||
General and administrative | |||
These costs primarily include employee compensation of administrative and supervisory staff whose time is mainly devoted to strategic and managerial functions, rent, insurance premiums, electricity, telecommunication costs, legal and professional fees, stock-based compensation costs and other general expenses. | |||
Cash And Cash Equivalents Policy [Text Block] | ' | ||
(g) | Cash and cash equivalents | ||
The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. | |||
Cash and cash equivalents consist of cash on hand, balances in current accounts, deposits with banks which are unrestricted as to withdrawal and use. | |||
Property Plant And Equipment Policy [Text Block] | ' | ||
(h) | Property, plant and equipment | ||
Property, plant and equipment are stated at cost less accumulated depreciation. The Company computes depreciation for all property, plant and equipment using the straight-line method so as to expense the costs over the estimated useful lives of assets. The estimated useful lives of assets are as follows: | |||
Furniture and fixtures | 10 years | ||
Computer equipment and software | 1 to 3 years | ||
Office equipment | 3 to 10 years | ||
Vehicles | 8 years | ||
Leasehold improvements | 6 years | ||
Website development costs | 3 to 5 years | ||
Capital work-in-progress is not depreciated until the construction and installation of the asset is complete, and the asset is available for use. | |||
Research Development And Computer Software Policy [Text Block] | ' | ||
(i) | Website development costs | ||
Costs incurred in the operations stage that provides additional functions or features to the Company’s website are capitalized. The estimated useful life is evaluated for each specific project and ranges from three to five years. Maintenance expenses or costs that do not result in significant new features or functions are expensed as product development costs. | |||
Cost Method Investments, Policy [Policy Text Block] | ' | ||
(j) | Investments, at cost | ||
Securities that do not have readily determinable fair market values are recorded at cost, subject to an impairment charge for any other than temporary decline in value. The fair values of these securities are not estimated if there are no events or changes in circumstances that may have a significant effect on the fair value. It is not practicable to estimate the fair value of these securities. | |||
Business Combinations Policy [Policy Text Block] | ' | ||
(k) | Business Combination | ||
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. Acquisition related costs are recognized in statement of comprehensive loss as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair value at the acquisition date. | |||
Purchase consideration in excess of the identifiable assets and liabilities is recognized as goodwill. Gain resulting from excess of the acquiree’s identifiable assets and liabilities over the purchase consideration is recognized, after reassessment, in the statement of comprehensive loss. | |||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||
(l) | Goodwill | ||
Goodwill represents the excess of purchase consideration over the fair values of the aquiree’s identifiable assets acquired and liabilities assumed in a business combination. Goodwill is assessed for impairment on an annual basis on January 1 or earlier when events or circumstances indicate that the carrying amount of goodwill exceeds its implied fair value. | |||
Goodwill impairment assessment is a two-step test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the impairment loss amount, if any. | |||
The Company uses an income-based valuation approach to determine the fair value of the reporting unit by estimating the present value of future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates, anticipated future economic and regulatory conditions and availability of necessary technology. | |||
When required to perform the second step, the Company compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized, not to exceed the goodwill carrying amount. The Company determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of the goodwill. This assignment process is only for purposes of testing goodwill impairment and the Company does not adjust the carrying amounts of the recognized assets and liabilities (other than goodwill, if appropriate) or recognize previously unrecognized intangible assets in the consolidated balance sheet as a result of this assignment process. | |||
Foreign Currency Transactions And Translations Policy [Text Block] | ' | ||
(m) | Foreign currency | ||
The accompanying consolidated financial statements have been presented in US dollars as the reporting currency. The functional currency of Rediff is the Indian Rupee (“Rs.” or “Rupee”) while that of its subsidiaries domiciled in the United States is the US dollar and in Canada is the Canadian dollar. Transactions in foreign currency are recorded at the original rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currency are restated using the exchange rates prevailing at the date of the balance sheet. Exchange differences arising on settlement of transactions and restatement of monetary assets and liabilities at the balance sheet date are recognized in the statement of comprehensive loss. | |||
For the purposes of presenting the consolidated financial statements, Rupees have been converted into US dollars for balance sheet accounts using the exchange rate in effect at the balance sheet date, and for revenue and expense accounts using a monthly weighted-average exchange rate. The gains or losses resulting from such translation are reported as other comprehensive income or loss. | |||
Earnings Per Share Policy [Text Block] | ' | ||
(n) | Earnings per share | ||
Basic earnings per share has been computed by dividing the net income (loss) from operations by the weighted average number of equity shares outstanding during the period, including equity share equivalents for ADSs issued. Diluted earnings per share is computed using the weighted average number of equity shares including equity share equivalents for ADSs issued and dilutive potential equity shares outstanding during the period, using the treasury stock method for options, except where the results would be anti-dilutive. Dilutive potential equity shares consist of the incremental equity shares issuable upon the exercise of stock options. The Company also reports earnings (loss) per ADS, where two ADSs represent one equity share. | |||
Income Tax Policy [Text Block] | ' | ||
(o) | Income taxes | ||
Income taxes consist of current income taxes and the change in the deferred tax balances during the year. Deferred tax assets and liabilities are recognized for each entity and taxing jurisdiction for future tax consequences attributable to temporary differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss carry-forwards, measured using the enacted tax rates expected to apply in the years in which such temporary differences are expected to be recovered or settled. The effect of changes in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain. | |||
The Company evaluates each tax positions to determine if it is more likely than not that a tax position is sustainable, based on its technical merits. If a tax position does not meet the more likely than not threshold, a liability is recorded. Additionally, for a position that is determined to, more likely than not, be sustainable, the Company measures the benefit at the highest cumulative probability of greater than 50% of being realized and establish a liability for the remaining portion. | |||
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. Interest income on repayment of income taxes is presented separately in the statement of comprehensive loss as an element of other income (expense), net. | |||
Impairment Or Disposal Of Long Lived Assets Policy [Text Block] | ' | ||
(p) | Impairment or disposal of long-lived assets (excluding goodwill) | ||
The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. The Company subjects such long-lived assets to a test of recoverability based on the undiscounted cash flows expected from use or disposition of such assets. Such events or circumstances would include changes in the market, technological obsolescence and adverse changes in profitability or regulation. If the asset is impaired, the Company recognizes an impairment loss as the difference between the estimated fair values determined using discounted cash flows and the carrying value of the asset. Assets to be disposed of are reported at the lower of the carrying value or the fair value less the cost to sell. | |||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' | ||
(q) | Intangible assets | ||
Intangible assets consist of customer contracts and intellectual property carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over three and seven years, respectively, that best reflects the economic benefits of the intangible assets. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||
(r) | Stock-based compensation | ||
The Company measures the cost of services received from employees, associates, retainers and non-employee directors in exchange for share based compensation at the grant date fair value award. The Company recognizes stock-based compensation on a straight line basis over the vesting period. | |||
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | ' | ||
(s) | Allowances for doubtful trade accounts receivable | ||
The Company establishes an allowance for doubtful accounts on trade accounts receivable after considering the financial condition of the customer, ageing of the accounts receivable, historical experience and the current economic environment. Trade accounts receivable balances are written off against allowances only after all means of collections have been exhausted and potential of recovery is considered remote. | |||
Pension and Other Postretirement Plans, Policy [Policy Text Block] | ' | ||
(t) | Employee benefit | ||
Gratuity | |||
The Company provided for gratuity, a defined benefit retirement plan (the Gratuity Plan) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years of service. The defined benefit liability is determined by actuarial valuation, at each balance sheet date, using the projected unit credit method. | |||
Provident fund | |||
Eligible employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and the Company make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee’s salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Company’s contribution to fund the benefits is expensed as incurred. | |||
Compensated absences | |||
The Company provided the compensated absences liability for the amounts to be paid as a result of employee’s rights to compensated absences in the year in which it is earned. | |||
Comprehensive Income Policy Policy [Text Block] | ' | ||
(u) | Comprehensive income (loss) | ||
Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss) and foreign currency translation adjustments. | |||
Significant_accounting_policie2
Significant accounting policies (Tables) | 12 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Schedule Of Property Plant And Equipment Estimated Useful Lives Table [Table Text Block] | ' | |
The estimated useful lives of assets are as follows: | ||
Furniture and fixtures | 10 years | |
Computer equipment and software | 1 to 3 years | |
Office equipment | 3 to 10 years | |
Vehicles | 8 years | |
Leasehold improvements | 6 years | |
Website development costs | 3 to 5 years | |
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | |||||||||
Schedule Of Other Current Assets Table [Text Block] | ' | |||||||||
Prepaid expenses and other current assets comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Prepaid expenses | 616,327 | 513,348 | ||||||||
Supplier advances | 106,143 | 193,871 | ||||||||
Rent deposits | 63,799 | 39,434 | ||||||||
Other advances and deposits | 70,137 | 38,122 | ||||||||
Loans to employees | 70,529 | 48,927 | ||||||||
Amount receivable on sale of investment (See Note 6) | - | 152,447 | ||||||||
Others | 248 | - | ||||||||
Total | 927,183 | 986,149 | ||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ' | |||||||||
Property Plant And Equipment [Table Text Block] | ' | |||||||||
Property, plant and equipment comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Furniture and fixtures | 473,115 | 367,004 | ||||||||
Computer equipment and software | 25,966,628 | 17,673,543 | ||||||||
Office equipment | 405,394 | 275,013 | ||||||||
Vehicles | 281,016 | 251,362 | ||||||||
Leasehold improvements | 646,925 | 444,467 | ||||||||
Website development costs | 3,452,526 | 4,110,523 | ||||||||
Property, plant and equipment – at cost | 31,225,604 | 23,121,912 | ||||||||
Less: Accumulated depreciation and amortization | -26,344,562 | -20,160,336 | ||||||||
4,881,042 | 2,961,576 | |||||||||
Capital work-in-progress | 899,130 | 609,646 | ||||||||
Property, plant and equipment – net | 5,780,172 | 3,571,222 | ||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | |||||||||||||
Equity Method Investments [Text Block] | ' | |||||||||||||
The Company’s investments in equity method investees interest were as follows: | ||||||||||||||
Percent of | ||||||||||||||
ownership of equity | ||||||||||||||
shares | ||||||||||||||
Tachyon Technology Private Limited (Impaired in fiscal 2011) | 26 | % | ||||||||||||
Imere Technology Private Limited (up to October 8, 2012) | 44 | % | ||||||||||||
Eterno Infotech Private Limited (Up to December 19, 2011) | 43 | % | ||||||||||||
Bigslick Infotech Private Limited (Impaired in fiscal 2010) | 37 | % | ||||||||||||
Equity Method Investments For Financial Information [Table Text Block] | ' | |||||||||||||
The following table presents financial information for equity method investees: | ||||||||||||||
For years ended March 31, | ||||||||||||||
2012 | 2013# | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Revenues | 362,280 | 320,005 | — | |||||||||||
Total costs | 700,337 | 72,910 | — | |||||||||||
Profit (loss) from operations | -338,057 | 247,095 | — | |||||||||||
Earnings (loss) attributable to Rediff* | -215,735 | 84,310 | — | |||||||||||
# | Information provided for the period ended October 8, 2012, relates to Imere Technology Private Limited which was sold as on same date. | |||||||||||||
* | Company’s share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition. | |||||||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule Of Goodwill [Text Block] | ' | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the fiscal years ended March 31, 2013 and 2014 were as follows: | ||||||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||
As at beginning of the year | 10,515,168 | 8,515,168 | 2,000,000 | 10,515,168 | 10,515,168 | — | ||||||||||||||||||||
Impairment | — | 2,000,000 | 2,000,000 | — | — | — | ||||||||||||||||||||
As at end of the year | 10,515,168 | 10,515,168 | — | 10,515,168 | 10,515,168 | — | ||||||||||||||||||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) | 12 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule Of Finite Lived Intangible Assets Table [Text Block] | ' | |||||||||||||||||
The following table summarizes the carrying amount of intangible assets: | ||||||||||||||||||
As of March 31, 2013 | ||||||||||||||||||
Gross carrying | Accumulated | Impairment | Net carrying | |||||||||||||||
value | amortization | loss | value | |||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Customer contracts | 13,684 | 10,642 | - | 3,042 | ||||||||||||||
Intellectual property | 2,879,190 | 959,730 | - | 1,919,460 | ||||||||||||||
Total intangible assets, net | 2,892,874 | 970,372 | - | 1,922,502 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||
Gross carrying | Accumulated | Impairment | Net carrying | |||||||||||||||
value | amortization | loss | value | |||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Customer contracts | 12,383 | 12,383 | - | - | ||||||||||||||
Intellectual property | 2,605,644 | 1,254,274 | 1,351,370 | - | ||||||||||||||
Total intangible assets, net | 2,618,027 | 1,266,657 | 1,351,370 | - | ||||||||||||||
Other_noncurrent_assets_Tables
Other non-current assets (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | |||||||||
Schedule Of Other Assets Noncurrent [Text Block] | ' | |||||||||
Other non-current assets comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Prepaid expenses | 187,176 | 177,659 | ||||||||
Rent deposits | 825,055 | 767,616 | ||||||||
Loans to employees | 32,143 | 52,029 | ||||||||
Amount receivable on sale of investment (See Note - 6) | — | 461,545 | ||||||||
Total | 1,044,374 | 1,458,849 | ||||||||
Accounts_payable_and_accrued_l1
Accounts payable and accrued liabilities (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Payables And Accruals [Abstract] | ' | |||||||||
Schedule Of Accounts Payable And Accrued Liabilities Table [Text Block] | ' | |||||||||
Accounts payable and accrued liabilities comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Accounts payable | 1,592,630 | 1,637,008 | ||||||||
Accrued expenses | 2,141,812 | 1,500,002 | ||||||||
Taxes payable | 217,460 | 369,314 | ||||||||
Employee incentive payable | 145,549 | 155,281 | ||||||||
Other employee payables | 1,290,289 | 1,056,857 | ||||||||
Other current liabilities | 65,968 | 64,950 | ||||||||
Total | 5,453,708 | 4,783,412 | ||||||||
Other_noncurrent_liabilities_T
Other non-current liabilities (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||||
Other Noncurrent Liabilities Table [Text Block] | ' | |||||||||
Other non-current liabilities comprise: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Unearned revenues | 217,021 | 320,977 | ||||||||
Retirement benefits | 479,799 | 466,280 | ||||||||
Other liabilities | 197,438 | 151,742 | ||||||||
Total | 894,258 | 938,999 | ||||||||
Related_party_transactions_Tab
Related party transactions (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Schedule Of Related Party Transactions Table [Text Block] | ' | |||||||||
Balances with related parties include: | ||||||||||
As of March 31, | ||||||||||
2013 | 2014 | |||||||||
US$ | US$ | |||||||||
Accounts payable for product development expense | 14,709 | — | ||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | |||||||||||||
Schedule Of Accumulated And Projected Benefit Obligations Table [Text Block] | ' | |||||||||||||
The following tables set out the amounts recognized in the Company’s consolidated financial statements for the fiscal years ended March 31, 2012, 2013 and 2014. The measurement date used is March 31 of the relevant fiscal year. | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at the beginning of the year | 434,594 | 446,146 | 527,512 | |||||||||||
Actuarial (gain) loss | -10,478 | 14,941 | -60,402 | |||||||||||
Service cost | 78,983 | 75,039 | 75,405 | |||||||||||
Interest cost | 41,987 | 44,025 | 46,086 | |||||||||||
Benefits paid | -39,297 | -26,382 | -27,314 | |||||||||||
Effect of exchange rate changes | -59,643 | -26,257 | -49,781 | |||||||||||
Benefit obligation at the end of the year | 446,146 | 527,512 | 511,506 | |||||||||||
Current – (included in other employee payable) | 36,885 | 47,713 | 45,226 | |||||||||||
Non-current – (included in retirement benefits) | 409,261 | 479,799 | 466,280 | |||||||||||
Schedule Of Net Benefit Costs Table [Text Block] | ' | |||||||||||||
Net gratuity cost for the years ended March 31, 2012, 2013 and 2014 comprise of the following: | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Service cost | 78,983 | 75,039 | 75,405 | |||||||||||
Interest cost | 41,987 | 44,025 | 46,086 | |||||||||||
Recognized net actuarial (gain) loss | -10,478 | 14,941 | -60,402 | |||||||||||
Net gratuity cost | 110,492 | 134,005 | 61,089 | |||||||||||
Schedule Of Assumptions Used Table [Text Block] | ' | |||||||||||||
The assumptions used in accounting for gratuity in the years ended March 31, 2012, 2013 and 2014 were as follows: | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Discount rate | 9.24 | % | 8.75 | % | 9.6 | % | ||||||||
Rate of increase in compensation | 7 | % | 7 | % | 7 | % | ||||||||
Schedule Of Expected Benefit Payments Table [Text Block] | ' | |||||||||||||
The following benefit payments, which reflect expected future services, as appropriate are expected to be paid | ||||||||||||||
Year ending March 31, | US$ | |||||||||||||
2015 | 45,225 | |||||||||||||
2016 | 45,108 | |||||||||||||
2017 | 140,599 | |||||||||||||
2018 | 55,641 | |||||||||||||
2019 | 73,910 | |||||||||||||
2020-2024 | 528,270 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule Of Income Before Income Tax Domestic And Foreign Table [Text Block] | ' | |||||||||||||||
The components of income before income taxes and equity in net earnings of equity method investees are as follows: | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
– Domestic | -6,422,577 | -7,177,897 | -9,264,032 | |||||||||||||
– Foreign | -973,378 | -4,371,884 | 1,639,852 | |||||||||||||
Loss before income taxes and equity in net loss (earning) of equity method investee | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||
Current income tax expense (benefit) | 65,555 | -33,248 | -152,774 | |||||||||||||
Schedule Of Effective Income Tax Rate Reconciliation Table [Text Block] | ' | |||||||||||||||
The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax expense reported in the statements of comprehensive loss is as follows: | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
Loss before income taxes and equity in net loss (earning) of equity method investee | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||
Indian statutory income tax rate | 32.445 | % | 32.445 | % | 33.99 | % | ||||||||||
Expected income tax expense (benefit) | -2,399,618 | -3,747,327 | -2,591,459 | |||||||||||||
Tax effect of:– | ||||||||||||||||
Adjustments to reconcile expected income tax expense to reported income tax expense: | ||||||||||||||||
Employee stock-based compensation | 298,428 | 245,313 | 163,683 | |||||||||||||
Valuation allowance recognized during the year | 2,337,757 | 3,060,830 | 1,998,669 | |||||||||||||
Goodwill impairment | — | 648,900 | — | |||||||||||||
Tax in foreign jurisdictions | -52,715 | -142,710 | 262,459 | |||||||||||||
Earnings (loss) of equity method investees | -69,995 | 27,354 | — | |||||||||||||
Others | -48,302 | -125,608 | 13,874 | |||||||||||||
Income tax expense (benefit) | 65,555 | -33,248 | -152,774 | |||||||||||||
Schedule Of Deferred Tax Assets And Liabilities Table [Text Block] | ' | |||||||||||||||
The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities are as follows: | ||||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Net operating loss carry forwards | 7,062,788 | 7,262,789 | ||||||||||||||
Depreciation and amortization | 4,358,969 | 5,573,817 | ||||||||||||||
Allowances for doubtful accounts receivables | 343,500 | 218,415 | ||||||||||||||
Employee benefits | 322,573 | 320,564 | ||||||||||||||
Minimum alternate tax credit | 314,764 | 284,859 | ||||||||||||||
Loss of equity method investees | 270,527 | 256,483 | ||||||||||||||
Gross deferred tax assets | 12,673,121 | 13,916,927 | ||||||||||||||
Valuation allowance | -12,673,121 | -13,916,927 | ||||||||||||||
Deferred tax assets | — | — | ||||||||||||||
Deferred tax liability: | ||||||||||||||||
Intangible assets | 185,982 | - | ||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Net Deferred tax liability | 185,982 | - | ||||||||||||||
Summary Of Valuation Allowance [Text Block] | ' | |||||||||||||||
Movements in valuation allowance: | ||||||||||||||||
As of March 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Balance as at beginning of the year | 10,783,227 | 12,673,121 | ||||||||||||||
Valuation allowance recognized during the year | 3,060,830 | 1,998,669 | ||||||||||||||
Expired net operating carry forward losses | -811,255 | - | ||||||||||||||
Reduction in deferred tax asset and corresponding valuation allowance pertaining to earlier years | — | -44,777 | ||||||||||||||
Reduction on account of unrecognized tax benefit | 5,010 | 3,020 | ||||||||||||||
Effect of currency translation | -364,691 | -713,106 | ||||||||||||||
Balance as at end of the year | 12,673,121 | 13,916,927 | ||||||||||||||
Schedule Of Unrecognized Tax Benefits Roll Forward Table [Text Block] | ' | |||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits during the fiscal years ended March 31, 2013 and 2014 is as follows: | ||||||||||||||||
2013 | 2014 | |||||||||||||||
US$ | US$ | |||||||||||||||
Unrecognized tax benefits balance at beginning of the | 21,224 | 5,481 | ||||||||||||||
year | ||||||||||||||||
Gross decrease for tax positions of prior years | -14,483 | -1,185 | ||||||||||||||
Effect of currency translation | -1,260 | -576 | ||||||||||||||
Unrecognized tax benefits balance at end of the year | 5,481 | 3,720 | ||||||||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
Following are the segment results and segment assets for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
India | US | Total | India | US | Total | India | US | Total | ||||||||||||||||||||||||||||||
Online | Publishing | Online | Publishing | Online | Publishing | |||||||||||||||||||||||||||||||||
Business | Business | Business | Business | Business | Business | |||||||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | US$ | ||||||||||||||||||||||||||||||
Revenues from external customers: | ||||||||||||||||||||||||||||||||||||||
Advertising | 12,517,461 | 3,462,646 | 15,980,107 | 8,485,560 | 2,872,638 | 11,358,198 | 8,161,964 | 2,534,345 | 10,696,309 | |||||||||||||||||||||||||||||
Fee based services | 3,705,761 | 256,398 | 3,962,159 | 4,041,904 | 258,602 | 4,300,506 | 5,206,078 | 218,410 | 5,424,488 | |||||||||||||||||||||||||||||
Total revenues | 16,223,222 | 3,719,044 | 19,942,266 | 12,527,464 | 3,131,240 | 15,658,704 | 13,368,042 | 2,752,755 | 16,120,797 | |||||||||||||||||||||||||||||
Cost of revenues (excluding depreciation and amortization) | 8,241,612 | 2,532,509 | 10,774,121 | 7,470,935 | 2,480,949 | 9,951,884 | 8,330,948 | 2,082,116 | 10,413,064 | |||||||||||||||||||||||||||||
Segment Results | 7,981,610 | 1,186,535 | 9,168,145 | 5,056,529 | 650,291 | 5,706,820 | 5,037,094 | 670,639 | 5,707,733 | |||||||||||||||||||||||||||||
Segment Assets | 44,457,954 | 3,483,912 | 47,941,866 | 35,577,371 | 820,713 | 36,398,084 | 24,960,743 | 2,447,659 | 27,408,402 | |||||||||||||||||||||||||||||
Capital expenditure | 5,375,763 | 33,786 | 5,409,549 | 2,105,552 | 2,315 | 2,107,867 | 1,469,037 | 6,325 | 1,475,362 | |||||||||||||||||||||||||||||
Depreciation/amortization | 3,490,725 | 9,044 | 3,499,769 | 3,651,816 | 12,560 | 3,664,376 | 3,054,173 | 6,096 | 3,060,269 | |||||||||||||||||||||||||||||
Reconciliation Of Operating Profit Loss From Segments To Consolidated [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
The following is a reconciliation of the segment results to (loss) income before income taxes of the Company for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||||||||||||||||||||
Segment result | 9,168,145 | 5,706,820 | 5,707,733 | |||||||||||||||||||||||||||||||||||
Operating expenses (including depreciation and amortization) | -20,005,598 | -19,571,322 | -18,048,045 | |||||||||||||||||||||||||||||||||||
Other income, net | 3,441,498 | 2,314,721 | 4,716,132 | |||||||||||||||||||||||||||||||||||
Net loss before income taxes and equity in net earnings (loss) of equity method investees | -7,395,955 | -11,549,781 | -7,624,180 | |||||||||||||||||||||||||||||||||||
Reconciliation Of Assets From Segment To Consolidated [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
The following is a reconciliation of the segment assets to the total assets as at March 31, 2013 and 2014. | ||||||||||||||||||||||||||||||||||||||
As at March 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||||||||||
US$ | US$ | |||||||||||||||||||||||||||||||||||||
India Online business | 35,577,371 | 24,960,743 | ||||||||||||||||||||||||||||||||||||
US Publishing business | 820,713 | 2,447,659 | ||||||||||||||||||||||||||||||||||||
Total segment assets | 36,398,084 | 27,408,402 | ||||||||||||||||||||||||||||||||||||
Investment, at cost | 1,404,987 | — | ||||||||||||||||||||||||||||||||||||
Rediff.com India Employee trust | 45,931 | 45,137 | ||||||||||||||||||||||||||||||||||||
Total assets | 37,849,002 | 27,453,539 | ||||||||||||||||||||||||||||||||||||
Revenue From External Customers By Geographic Areas Table [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
Revenues derived from external customers are as follows: | ||||||||||||||||||||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||||||||||||||||||||
United States and Canada | 3,382,387 | 3,030,249 | 3,314,354 | |||||||||||||||||||||||||||||||||||
India | 16,078,008 | 12,241,845 | 12,176,561 | |||||||||||||||||||||||||||||||||||
Rest of the world | 481,871 | 386,610 | 629,882 | |||||||||||||||||||||||||||||||||||
Total revenues | 19,942,266 | 15,658,704 | 16,120,797 | |||||||||||||||||||||||||||||||||||
Long Lived Assets By Geographic Areas Table [Text Block] | ' | |||||||||||||||||||||||||||||||||||||
Long-lived assets by location are as follows: | ||||||||||||||||||||||||||||||||||||||
As of March 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||||||||||
US$ | US$ | |||||||||||||||||||||||||||||||||||||
United States and Canada | 45,063 | 5,912 | ||||||||||||||||||||||||||||||||||||
India | 7,657,611 | 3,565,310 | ||||||||||||||||||||||||||||||||||||
Total | 7,702,674 | 3,571,222 | ||||||||||||||||||||||||||||||||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value of Options, Black-Scholes Model Assumptions [Table Text Block] | ' | |||||||||||||||
The fair value of each option is estimated on the date of grant using the Black-Scholes model with the following assumptions: | ||||||||||||||||
Years ended March 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Dividend yield | 0% | — | 0% | |||||||||||||
Expected term | 5.5 – 7 years | — | 5.5 – 7 years | |||||||||||||
Risk free interest rates | 1.23% – 2.84% | — | 0.71% - 1.14% | |||||||||||||
Expected volatility | 78.36% – 81.98% | — | 81.27% - 86.68% | |||||||||||||
Compensation Cost Allocated to Cost of Revenues and Operating Expenses[Table Text Block] | ' | |||||||||||||||
The compensation cost has been allocated to cost of revenues and operating expenses as follows: | ||||||||||||||||
Year ended March 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
US$ | US$ | US$ | ||||||||||||||
Cost of revenues | 60,224 | 50,151 | 17,425 | |||||||||||||
Sales and marketing | 138,930 | 122,316 | 119,653 | |||||||||||||
Product development | 385,737 | 321,473 | 207,400 | |||||||||||||
General and administrative | 202,983 | 262,150 | 137,085 | |||||||||||||
Stock Option Plan 2002 | ' | |||||||||||||||
Summary of Option Activity[Table Text Block] | ' | |||||||||||||||
A summary of option activity under the 2002 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Options (in terms | average | average | intrinsic | |||||||||||||
of shares) | exercise | remaining | value | |||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 16,500 | 17.69 | ||||||||||||||
Expired | 4,750 | 14.76 | ||||||||||||||
Outstanding as at March 31, 2014 | 11,750 | 18.88 | 5.3 | — | ||||||||||||
Exercisable as at March 31, 2014 | 8,000 | 17.38 | 4.3 | — | ||||||||||||
Stock Option Plan 2004 | ' | |||||||||||||||
Summary of Option Activity[Table Text Block] | ' | |||||||||||||||
A summary of option activity under the 2004 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
options (in terms | average | average | intrinsic | |||||||||||||
of shares) | exercise | remaining | value | |||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 135,112 | 11.41 | ||||||||||||||
Forfeited | 3,875 | 5.52 | ||||||||||||||
Outstanding as at March 31, 2013 | 131,237 | 11.59 | 2.5 | — | ||||||||||||
Exercisable as at March 31, 2014 | 131,237 | 11.59 | 2.5 | — | ||||||||||||
Stock Option Plan 2006 | ' | |||||||||||||||
Summary of Option Activity[Table Text Block] | ' | |||||||||||||||
A summary of option activity under the 2006 ESOP plan as of March 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
options (in | average | average | intrinsic value | |||||||||||||
terms of shares) | exercise | remaining | ||||||||||||||
price | contractual | |||||||||||||||
term (year) | ||||||||||||||||
US$ | US$ | |||||||||||||||
Outstanding as at April 1, 2013 | 505,813 | 8.5 | ||||||||||||||
Granted | 1,500 | 4.76 | ||||||||||||||
Forfeited | 16,750 | 5.01 | ||||||||||||||
Outstanding as at March 31, 2014 | 490,563 | 8.54 | 4.9 | 794,902 | ||||||||||||
Exercisable as at March 31, 2014 | 442,938 | 8.84 | 4.6 | 693,207 | ||||||||||||
Earnings_loss_per_share_and_AD1
Earnings (loss) per share and ADS (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earnings Per Share and ADS [Table Text Block] | ' | ||||||||||||
For the years ended March 31, 2012, 2013 and 2014, the following table sets forth the computation of basic and diluted earnings per share and ADS: | |||||||||||||
Year ended March 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss | US$ | -7,677,245 | US$ | -11,432,223 | US$ | -7,471,406 | |||||||
Weighted average equity shares for basic and diluted earnings (loss) per share | 13,758,635 | 13,795,178 | 13,795,178 | ||||||||||
Earnings /(loss) per share | – basic | -0.558 | -0.828 | -0.542 | |||||||||
– diluted | -0.558 | -0.828 | -0.542 | ||||||||||
Earnings / (loss) per ADS | – basic | -0.279 | -0.414 | -0.271 | |||||||||
– diluted | -0.279 | -0.414 | -0.271 | ||||||||||
Allowance_for_doubtful_trade_a1
Allowance for doubtful trade accounts receivables (Tables) | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||
Allowance for Doubtful Trade Accounts Receivables [Table Text Block] | ' | |||||||||||||||||||||
Description | Balance at | Expense / | Bad debts | Effect of | Balance at | |||||||||||||||||
Beginning of | (Reversal) | written off | exchange rate | end | ||||||||||||||||||
year | changes | of year | ||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||||
Fiscal 2014 | 876,300 | 190,493 | -420,018 | -28,721 | 618,054 | |||||||||||||||||
Fiscal 2013 | 3,200,434 | -48,580 | -2,106,011 | -169,543 | 876,300 | |||||||||||||||||
Fiscal 2012 | 4,022,664 | 37,700 | -423,245 | -436,685 | 3,200,434 | |||||||||||||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||||||||||||
Operating Lease Expenses Included in Determination of Net Income [Table Text Block] | ' | |||||||||||||
Operating lease expense that has been included in the determination of the net income is as follows: | ||||||||||||||
Years ended March 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
US$ | US$ | US$ | ||||||||||||
Office premises | 778,364 | 726,893 | 700,402 | |||||||||||
Residential apartments for employees | 102,725 | 104,557 | 81,308 | |||||||||||
Total operating lease expense | 881,089 | 831,450 | 781,710 | |||||||||||
Schedule Of Future Minimum Rental Payments For Operating Leases Table [Text Block] | ' | |||||||||||||
The minimum annual lease commitments under the above operating leases that have initial or remaining terms in excess of one year are as follows: | ||||||||||||||
For the year ending March 31, | US$ | |||||||||||||
2015 | 525,791 | |||||||||||||
2016 | 308,732 | |||||||||||||
2017 | 231,058 | |||||||||||||
2018 | 237,989 | |||||||||||||
2019 | 40,753 | |||||||||||||
Significant_accounting_policie3
Significant accounting policies (Details) | 12 Months Ended |
Mar. 31, 2014 | |
Furniture And Fixtures [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '10 years |
Computer Equipment and Software [Member] | Minimum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '1 year |
Computer Equipment and Software [Member] | Maximum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '3 years |
Office Equipment [Member] | Minimum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '3 years |
Office Equipment [Member] | Maximum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '10 years |
Vehicles [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '8 years |
Leasehold Improvements [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '6 years |
Website Development Costs [Member] | Minimum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '3 years |
Website Development Costs [Member] | Maximum [Member] | ' |
Schedule Of Property Plant And Equipment Estimated Useful Lives of Asset [Line Items] | ' |
Property Plant and equipment estimated, useful life | '5 years |
Recovered_Sheet1
Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Significant Accounting Policies [Line Items] | ' | ' |
Cash equivalents maturity period | 'three months or less | ' |
Number of ADS which represent each equity share | 2 | 2 |
Measurement of benefit probability of being realized percentage | 50.00% | ' |
Number of years of service for gratuity benefits to vest | '5 years | ' |
Customer Contracts [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets, amortization period | '3 years | ' |
Intellectual Property [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets, amortization period | '7 years | ' |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Prepaid Expenses and Other Current Assets Lineitem [Line Items] | ' | ' |
Prepaid expenses | $513,348 | $616,327 |
Supplier advances | 193,871 | 106,143 |
Rent deposits | 39,434 | 63,799 |
Other advances and deposits | 38,122 | 70,137 |
Loans to employees | 48,927 | 70,529 |
Amount receivable on sale of investment (See Note 6) | 152,447 | 0 |
Others | 0 | 248 |
Total | $986,149 | $927,183 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | $23,121,912 | $31,225,604 |
Less: Accumulated depreciation and amortization | -20,160,336 | -26,344,562 |
Property Plant And Equipment Excluding Construction In Progress, Total | 2,961,576 | 4,881,042 |
Capital work-in-progress | 609,646 | 899,130 |
Property, plant and equipment-net | 3,571,222 | 5,780,172 |
Furniture And Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | 367,004 | 473,115 |
Computer Equipment And Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | 17,673,543 | 25,966,628 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | 275,013 | 405,394 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | 251,362 | 281,016 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | 444,467 | 646,925 |
Website Development Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment - at cost | $4,110,523 | $3,452,526 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense | $2,688,989 | $3,249,417 | $3,028,924 |
Asset Impairment Charges | 1,590,371 | 0 | 0 |
Impairment of Long-Lived Assets to be Disposed of | 39,380 | ' | ' |
Computer Equipment [Member] | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Asset Impairment Charges | $199,621 | ' | ' |
Investments_Details
Investments (Details) | Mar. 31, 2011 | Oct. 08, 2012 | Dec. 19, 2011 | Mar. 31, 2010 |
Tachyon Technology Private Limited [Member] | Imere Technology Private Limited [Member] | Eterno Infotech Private Limited [Member] | Bigslick Infotech Private Limited [Member] | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Percent of ownership of equity shares | 26.00% | 44.00% | 43.00% | 37.00% |
Investments_Details_1
Investments (Details 1) (USD $) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||||
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | |||
Revenues | $0 | $320,005 | [1] | $362,280 | ||
Total costs | 0 | 72,910 | [1] | 700,337 | ||
Profit (loss) from operations | 0 | 247,095 | [1] | -338,057 | ||
Earnings (loss) attributable to Rediff | $0 | [2] | $84,310 | [1],[2] | ($215,735) | [2] |
[1] | Information provided for the period ended October 8, 2012, relates to Imere Technology Private Limited which was sold as on same date. | |||||
[2] | Company's share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition. |
Investments_Details_Textual
Investments (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Sale of investment in equity method investee | $0 | $1,452,944 | $937,866 |
Gain on sale of investment in equity method investee | 0 | 1,292,168 | 749,897 |
Investment Owned, Restricted, Cost | 4,145,927 | ' | ' |
Gain on Sale of Investments | 2,740,940 | 0 | 0 |
Escrow Deposit | 613,992 | ' | ' |
Amount Recoverable On Sale Of Investments | 461,545 | 0 | ' |
Amount Held In Escrow | $152,447 | ' | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Goodwill [Line Items] | ' | ' | ' |
Goodwill gross | $10,515,168 | $10,515,168 | ' |
Goodwill accumulated impairment | 10,515,168 | 8,515,168 | ' |
Goodwill net | 0 | 2,000,000 | ' |
Goodwill accumulated impairment during the period | $0 | $2,000,000 | $0 |
Intangible_assets_net_Details
Intangible assets, net (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | $2,618,027 | $2,892,874 |
Accumulated amortization | 1,266,657 | 970,372 |
Impairment loss | 1,351,370 | 0 |
Net carrying value | 0 | 1,922,502 |
Customer Contracts [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 12,383 | 13,684 |
Accumulated amortization | 12,383 | 10,642 |
Impairment loss | 0 | 0 |
Net carrying value | 0 | 3,042 |
Intellectual Property [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 2,605,644 | 2,879,190 |
Accumulated amortization | 1,254,274 | 959,730 |
Impairment loss | 1,351,370 | 0 |
Net carrying value | $0 | $1,919,460 |
Intangible_assets_net_Details_
Intangible assets, net (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense of intangible assets | $371,280 | $414,959 | $470,845 |
Customer Contracts [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, amortization period | '3 years | ' | ' |
Intellectual Property [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, amortization period | '7 years | ' | ' |
Other_noncurrent_assets_Detail
Other non-current assets (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Other Assets Noncurrent [Line Items] | ' | ' |
Prepaid expenses | $177,659 | $187,176 |
Rent deposits | 767,616 | 825,055 |
Loans to employees | 52,029 | 32,143 |
Amount receivable on sale of investment (See Note - 6) | 461,545 | 0 |
Total | $1,458,849 | $1,044,374 |
Other_noncurrent_assets_Detail1
Other non-current assets (Details Textual) (USD $) | 12 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2014 | |
Examville.com LLC [Member] | ||
Other Assets Noncurrent [Line Items] | ' | ' |
Promissory notes | ' | $1,100,000 |
Other than temporary impairment loss | $1,100,000 | ' |
Accounts_payable_and_accrued_l2
Accounts payable and accrued liabilities (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Accounts Payable And Accrued Liabilities [Line Items] | ' | ' |
Accounts payable | $1,637,008 | $1,592,630 |
Accrued expenses | 1,500,002 | 2,141,812 |
Taxes payable | 369,314 | 217,460 |
Employee incentive payable | 155,281 | 145,549 |
Other employee payables | 1,056,857 | 1,290,289 |
Other current liabilities | 64,950 | 65,968 |
Total | $4,783,412 | $5,453,708 |
Other_noncurrent_liabilities_D
Other non-current liabilities (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Other Noncurrent Liabilities [Line Items] | ' | ' |
Unearned revenues | $320,977 | $217,021 |
Retirement benefits | 466,280 | 479,799 |
Other liabilities | 151,742 | 197,438 |
Total | $938,999 | $894,258 |
Shareholders_equity_Details_Te
Shareholders' equity (Details Textual) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Shareholders Equity [Line Items] | ' | ' |
Repurchase of equity shares for treasury (in shares) | 1,015,000 | 1,015,000 |
Repurchase of equity shares for treasury | $4,426,605 | $4,426,605 |
Sales_and_marketing_Details_Te
Sales and marketing (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Other Income And Other Expense Disclosure [Line Items] | ' | ' | ' |
Advertising cost | $313,336 | $92,135 | $1,650,747 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable for product development expense | $4,783,412 | $5,453,708 |
Related Party | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable for product development expense | $0 | $14,709 |
Related_party_transactions_Det1
Related party transactions (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Product development expenses | $2,287,488 | $2,920,824 | $3,136,778 |
Trade account receivables write off | 420,018 | 2,106,011 | 423,245 |
Edelweiss Capital Services Ltd [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Trade account receivables write off | ' | 206,974 | ' |
Runa Inc. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Subscription for rights issued | ' | 104,987 | ' |
Equity Method Investee [Member] | Tachyon Technology Private Limited [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Product development expenses | ' | $95,395 | $137,490 |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at the beginning of the year | $527,512 | $446,146 | $434,594 |
Actuarial (gain) loss | -60,402 | 14,941 | -10,478 |
Service cost | 75,405 | 75,039 | 78,983 |
Interest cost | 46,086 | 44,025 | 41,987 |
Benefits paid | -27,314 | -26,382 | -39,297 |
Effect of exchange rate changes | -49,781 | -26,257 | -59,643 |
Benefit obligation at the end of the year | 511,506 | 527,512 | 446,146 |
Current - (included in other employee payable) | 45,226 | 47,713 | 36,885 |
Non-current - (included in retirement benefits) | $466,280 | $479,799 | $409,261 |
Retirement_Benefits_Details_1
Retirement Benefits (Details 1) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $75,405 | $75,039 | $78,983 |
Interest cost | 46,086 | 44,025 | 41,987 |
Recognized net actuarial (gain) loss | -60,402 | 14,941 | -10,478 |
Net gratuity cost | $61,089 | $134,005 | $110,492 |
Retirement_Benefits_Details_2
Retirement Benefits (Details 2) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 9.60% | 8.75% | 9.24% |
Rate of increase in compensation | 7.00% | 7.00% | 7.00% |
Retirement_Benefits_Details_3
Retirement Benefits (Details 3) (USD $) | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | $45,225 |
2016 | 45,108 |
2017 | 140,599 |
2018 | 55,641 |
2019 | 73,910 |
2020-2024 | $528,270 |
Retirement_Benefits_Details_Te
Retirement Benefits (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Term of equivalent salary payable | '15 days | ' | ' |
Number of years of service for gratuity benefits to vest | '5 years | ' | ' |
Accumulated benefit obligation | $292,701 | $290,852 | ' |
Employee contribution percentage | 12.00% | ' | ' |
Employer contribution amount | $228,075 | $259,684 | $279,396 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
- Domestic | ($9,264,032) | ($7,177,897) | ($6,422,577) |
- Foreign | 1,639,852 | -4,371,884 | -973,378 |
Loss before income taxes and equity in net loss (earning) of equity method investee | -7,624,180 | -11,549,781 | -7,395,955 |
Current income tax expense (benefit) | ($152,774) | ($33,248) | $65,555 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Loss before income taxes and equity in net loss (earning) of equity method investee | ($7,624,180) | ($11,549,781) | ($7,395,955) |
Indian statutory income tax rate | 33.99% | 32.45% | 32.45% |
Expected income tax expense (benefit) | -2,591,459 | -3,747,327 | -2,399,618 |
Adjustments to reconcile expected income tax expense to reported income tax expense: | ' | ' | ' |
Employee stock-based compensation | 163,683 | 245,313 | 298,428 |
Valuation allowance recognized during the year | 1,998,669 | 3,060,830 | 2,337,757 |
Goodwill Impairment | 0 | 648,900 | 0 |
Tax in foreign jurisdictions | 262,459 | -142,710 | -52,715 |
Earnings (loss) of equity method investees | 0 | 27,354 | -69,995 |
Others | 13,874 | -125,608 | -48,302 |
Income tax expense (benefit) | ($152,774) | ($33,248) | $65,555 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net operating loss carry forwards | $7,262,789 | $7,062,788 | ' |
Depreciation and amortization | 5,573,817 | 4,358,969 | ' |
Allowances for doubtful accounts receivables | 218,415 | 343,500 | ' |
Employee benefits | 320,564 | 322,573 | ' |
Minimum alternate tax credit | 284,859 | 314,764 | ' |
Loss of equity method investees | 256,483 | 270,527 | ' |
Gross deferred tax assets | 13,916,927 | 12,673,121 | ' |
Valuation allowance | -13,916,927 | -12,673,121 | -10,783,227 |
Deferred tax assets | 0 | 0 | ' |
Deferred tax liability: | ' | ' | ' |
Intangible assets | 0 | 185,982 | ' |
Net Deferred tax liability | $0 | $185,982 | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Balance as at beginning of the year | $12,673,121 | $10,783,227 |
Valuation allowance recognized during the year | 1,998,669 | 3,060,830 |
Expired net operating carry forward losses | 0 | -811,255 |
Reduction in deferred tax asset and corresponding valuation allowance pertaining to earlier years | -44,777 | 0 |
Reduction on account of unrecognized tax benefit | 3,020 | 5,010 |
Effect of currency translation | -713,106 | -364,691 |
Balance as at end of the year | $13,916,927 | $12,673,121 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Unrecognized tax benefits balance at beginning of the year | $5,481 | $21,224 |
Gross decrease for tax positions of prior years | -1,185 | -14,483 |
Effect of currency translation | -576 | -1,260 |
Unrecognized tax benefits balance at end of the year | $3,720 | $5,481 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards | $11,011,441 |
Unabsorbed depreciation | 15,915,398 |
ValuCom [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards | 3,033,000 |
RHI [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards | $4,014,000 |
Minimum [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration date | 30-Apr-14 |
Minimum [Member] | ValuCom [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration year | '2021 |
Minimum [Member] | RHI [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration year | '2020 |
Maximum [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration date | 31-Mar-20 |
Maximum [Member] | ValuCom [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration year | '2031 |
Maximum [Member] | RHI [Member] | Subsidiaries [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Net operating loss carry forwards, expiration year | '2032 |
Segments_Details
Segments (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Revenues from external customers: | ' | ' | ' |
Advertising | $10,696,309 | $11,358,198 | $15,980,107 |
Fee based services | 5,424,488 | 4,300,506 | 3,962,159 |
Total revenues | 16,120,797 | 15,658,704 | 19,942,266 |
Cost of revenues (excluding depreciation and amortization) | 10,413,064 | 9,951,884 | 10,774,121 |
Segment Results | 5,707,733 | 5,706,820 | 9,168,145 |
Segment Assets | 27,408,402 | 36,398,084 | 47,941,866 |
Capital expenditure | 1,475,362 | 2,107,867 | 5,409,549 |
Depreciation/amortization | 3,060,269 | 3,664,376 | 3,499,769 |
Operating Segments | India Online Business | ' | ' | ' |
Revenues from external customers: | ' | ' | ' |
Advertising | 8,161,964 | 8,485,560 | 12,517,461 |
Fee based services | 5,206,078 | 4,041,904 | 3,705,761 |
Total revenues | 13,368,042 | 12,527,464 | 16,223,222 |
Cost of revenues (excluding depreciation and amortization) | 8,330,948 | 7,470,935 | 8,241,612 |
Segment Results | 5,037,094 | 5,056,529 | 7,981,610 |
Segment Assets | 24,960,743 | 35,577,371 | 44,457,954 |
Capital expenditure | 1,469,037 | 2,105,552 | 5,375,763 |
Depreciation/amortization | 3,054,173 | 3,651,816 | 3,490,725 |
Operating Segments | US Publishing Business | ' | ' | ' |
Revenues from external customers: | ' | ' | ' |
Advertising | 2,534,345 | 2,872,638 | 3,462,646 |
Fee based services | 218,410 | 258,602 | 256,398 |
Total revenues | 2,752,755 | 3,131,240 | 3,719,044 |
Cost of revenues (excluding depreciation and amortization) | 2,082,116 | 2,480,949 | 2,532,509 |
Segment Results | 670,639 | 650,291 | 1,186,535 |
Segment Assets | 2,447,659 | 820,713 | 3,483,912 |
Capital expenditure | 6,325 | 2,315 | 33,786 |
Depreciation/amortization | $6,096 | $12,560 | $9,044 |
Segments_Details_1
Segments (Details 1) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Segment result | $5,707,733 | $5,706,820 | $9,168,145 |
Operating expenses (including depreciation and amortization) | -18,048,045 | -19,571,322 | -20,005,598 |
Other income, net | 4,716,132 | 2,314,721 | 3,441,498 |
Loss before income taxes and equity in net loss of equity method investees | ($7,624,180) | ($11,549,781) | ($7,395,955) |
Segments_Details_2
Segments (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' |
Segment reporting assets | $27,408,402 | $36,398,084 | $47,941,866 |
Investment, at cost | 0 | 1,404,987 | ' |
Rediff.com India Employee trust | 45,137 | 45,931 | ' |
Total assets | 27,453,539 | 37,849,002 | ' |
Operating Segments | India Online Business | ' | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' |
Segment reporting assets | 24,960,743 | 35,577,371 | 44,457,954 |
Operating Segments | US Publishing Business | ' | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' |
Segment reporting assets | $2,447,659 | $820,713 | $3,483,912 |
Segments_Details_3
Segments (Details 3) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenues | $16,120,797 | $15,658,704 | $19,942,266 |
Operating Segments | United States and Canada | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenues | 3,314,354 | 3,030,249 | 3,382,387 |
Operating Segments | Rest of the world | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenues | 629,882 | 386,610 | 481,871 |
Operating Segments | INDIA | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenues | $12,176,561 | $12,241,845 | $16,078,008 |
Segments_Details_4
Segments (Details 4) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | $3,571,222 | $7,702,674 |
Operating Segments | United States and Canada | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | 5,912 | 45,063 |
Operating Segments | INDIA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | $3,565,310 | $7,657,611 |
Segments_Details_Textual
Segments (Details Textual) | 12 Months Ended |
Mar. 31, 2014 | |
Revenue, Major Customer [Line Items] | ' |
Number of operating segments | 2 |
Sales [Member] | ' |
Revenue, Major Customer [Line Items] | ' |
Number of customers that accounted for more than 10% of revenue | 0 |
Revenue from single customer, description | 10.00% |
Concentration_of_credit_risk_D
Concentration of credit risk (Details Textual) (Customer Concentration Risk, Accounts Receivable, INDIA) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Customer Concentration Risk | Accounts Receivable | INDIA | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable derived from revenues earned from customers located in India | 89.00% | 85.00% |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Aggregate intrinsic value, Outstanding | $0 |
Stock Option Plan 2002 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of options Outstanding, Beginning Balance | 16,500 |
Number of options, Expired | 4,750 |
Number of options Outstanding, Ending Balance | 11,750 |
Number of Options, Exercisable | 8,000 |
Weighted average exercise price Outstanding, Beginning Balance | $17.69 |
Weighted average exercise price, Expired | $14.76 |
Weighted average exercise price Outstanding, Ending Balance | $18.88 |
Weighted average exercise price, Exercisable | $17.38 |
Weighted average remaining contractual term, Outstanding | '5 years 3 months 18 days |
Weighted average remaining contractual term, Exercisable | '4 years 3 months 18 days |
Aggregate intrinsic value, Outstanding | 0 |
Aggregate intrinsic value, Exercisable | $0 |
Stockbased_compensation_Detail1
Stock-based compensation (Details 1) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Aggregate intrinsic value, Outstanding | $0 |
Stock Option Plan 2004 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of options Outstanding, Beginning Balance | 135,112 |
Number of options, Forfeited | 3,875 |
Number of options Outstanding, Ending Balance | 131,237 |
Number of Options, Exercisable | 131,237 |
Weighted average exercise price Outstanding, Beginning Balance | $11.41 |
Weighted average exercise price, Forfeited | $5.52 |
Weighted average exercise price Outstanding, Ending Balance | $11.59 |
Weighted average exercise price, Exercisable | $11.59 |
Weighted average remaining contractual term, Outstanding | '2 years 6 months |
Weighted average remaining contractual term, Exercisable | '2 years 6 months |
Aggregate intrinsic value, Exercisable | $0 |
Stockbased_compensation_Detail2
Stock-based compensation (Details 2) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Aggregate intrinsic value, Outstanding | $0 |
Stock Option Plan 2006 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of options Outstanding, Beginning Balance | 505,813 |
Number of options, Granted | 1,500 |
Number of options, Forfeited | 16,750 |
Number of options Outstanding, Ending Balance | 490,563 |
Number of Options, Exercisable | 442,938 |
Weighted average exercise price Outstanding, Beginning Balance | $8.50 |
Weighted average exercise prices, Granted | $4.76 |
Weighted average exercise prices, Forfeited | $5.01 |
Weighted average exercise price Outstanding, Ending Balance | $8.54 |
Weighted average exercise prices, Exercisable | $8.84 |
Weighted average remaining contractual term, Outstanding | '4 years 10 months 24 days |
Weighted average remaining contractual term, Exercisable | '4 years 7 months 6 days |
Aggregate intrinsic value, Outstanding | 794,902 |
Aggregate intrinsic value, Exercisable | $693,207 |
Stockbased_compensation_Detail3
Stock-based compensation (Details 3) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term | ' | '0 years | ' |
Risk free interest rates, minimum | 0.71% | ' | 1.23% |
Risk free interest rates, maximum | 1.14% | ' | 2.84% |
Risk free interest rates | ' | 0.00% | ' |
Expected volatility, minimum | 81.27% | ' | 78.36% |
Expected volatility, maximum | 86.68% | ' | 81.98% |
Expected volatility | ' | 0.00% | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term | '5 years 6 months | ' | '5 years 6 months |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term | '7 years | ' | '7 years |
Stockbased_compensation_Detail4
Stock-based compensation (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Cost of revenues | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation cost | $17,425 | $50,151 | $60,224 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation cost | 119,653 | 122,316 | 138,930 |
Product development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation cost | 207,400 | 321,473 | 385,737 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation cost | $137,085 | $262,150 | $202,983 |
Stockbased_compensation_Detail5
Stock-based compensation (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair Value Of options granted | ' | ' | $0 |
Stock-based compensation cost | 481,563 | 756,090 | 787,874 |
Stock Option Plan 2006 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value of options granted | ' | $0 | ' |
Stock Option Plan 2002 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options expiration period | '10 years | ' | ' |
Shares reserved for future issuance | 280,000 | ' | ' |
Share-based payment award vesting percentage On each anniversary | 25.00% | ' | ' |
Fair Value Of options granted | 123,585 | 78,645 | ' |
Weighted average grant date fair value of options granted | ' | ' | $14.98 |
Intrinsic value of options exercised | ' | ' | 912,558 |
Proceed from exercise of options | ' | ' | 243,234 |
Unrecognized option costs | 29,798 | ' | ' |
Weighted average period of recognition for unrecognized option costs | '1 year 3 months 22 days | ' | ' |
Stock Option Plan 2002 [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options, exercise price as percentage of fair market value | 110.00% | ' | ' |
Stock Option Plan 2002 [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options, exercise price as percentage of fair market value | 50.00% | ' | ' |
Stock Option Plan 2004 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options expiration period | '10 years | ' | ' |
Shares reserved for future issuance | 358,000 | ' | ' |
Share-based payment award vesting percentage On each anniversary | 25.00% | ' | ' |
Fair Value Of options granted | 53,126 | 108,481 | 705,890 |
Intrinsic value of options exercised | ' | ' | 1,230,857 |
Proceed from exercise of options | ' | ' | 912,310 |
Stock Option Plan 2004 [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options, exercise price as percentage of fair market value | 110.00% | ' | ' |
Stock Option Plan 2004 [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options, exercise price as percentage of fair market value | 50.00% | ' | ' |
Stock Option Plan 2006 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options expiration period | '10 years | ' | ' |
Shares reserved for future issuance | 670,000 | ' | ' |
Fair Value Of options granted | 967,248 | 1,542,072 | 873,798 |
Weighted average grant date fair value of options granted | $3.76 | ' | $12.86 |
Intrinsic value of options exercised | ' | ' | 670,998 |
Proceed from exercise of options | ' | ' | 209,133 |
Unrecognized option costs | $394,481 | ' | ' |
Weighted average period of recognition for unrecognized option costs | '1 year 1 month 6 days | ' | ' |
Stock Option Plan 2006 [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payment award vesting percentage On each anniversary | 25.00% | ' | ' |
Options, exercise price as percentage of fair market value | 110.00% | ' | ' |
Stock Option Plan 2006 [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payment award vesting percentage On each anniversary | 20.00% | ' | ' |
Options, exercise price as percentage of fair market value | 50.00% | ' | ' |
Earnings_loss_per_share_and_AD2
Earnings (loss) per share and ADS (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Net loss | ($7,471,406) | ($11,432,223) | ($7,677,245) |
Weighted average equity shares for basic and diluted earnings (loss) per share | 13,795,178 | 13,795,178 | 13,758,635 |
Earnings / (loss) per share - basic | ($0.54) | ($0.83) | ($0.56) |
Earnings / (loss) per share - diluted | ($0.54) | ($0.83) | ($0.56) |
Earnings Per ADS- (where 2 ADSs represent 1 equity share) [Member] | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Earnings / (loss) per share - basic | ($0.27) | ($0.41) | ($0.28) |
Earnings / (loss) per share - diluted | ($0.27) | ($0.41) | ($0.28) |
Earnings_loss_per_share_and_AD3
Earnings (loss) per share and ADS (Details textual) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Antidilutive securities excluded from computation of earning per share | 124,214 | 140,247 | 324,027 |
Recovered_Sheet2
Allowance for Doubtful Trade Accounts Receivables (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Receivables [Abstract] | ' | ' | ' |
Balance at Beginning of Period | $876,300 | $3,200,434 | $4,022,664 |
Expense / Reversal | 190,493 | -48,580 | 37,700 |
Bad debts written off | -420,018 | -2,106,011 | -423,245 |
Effect of exchange rate changes | -28,721 | -169,543 | -436,685 |
Balance at end of period | $618,054 | $876,300 | $3,200,434 |
Recovered_Sheet3
Fair Value of Financial Instruments (Details Textual) (USD $) | 12 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | |
Fair Value Inputs Level 3 [Member] | Fair Value Inputs Level 3 [Member] | ||||
Fair Value Measurements Nonrecurring [Member] | Fair Value Measurements Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Fair value of goodwill | ' | ' | ' | ' | $6,350,000 |
Goodwill impairment charge | $0 | $2,000,000 | $0 | $2,000,000 | ' |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease expense | $781,710 | $831,450 | $881,089 |
Office premises [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease expense | 700,402 | 726,893 | 778,364 |
Residential apartments for employees [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease expense | $81,308 | $104,557 | $102,725 |
Commitments_and_contingencies_2
Commitments and contingencies (Details 1) (USD $) | Mar. 31, 2014 |
For the year ended March 31, 2015 | $525,791 |
For the year ended March 31, 2016 | 308,732 |
For the year ended March 31, 2017 | 231,058 |
For the year ended March 31, 2018 | 237,989 |
For the year ended March 31, 2019 | $40,753 |
Commitments_and_contingencies_3
Commitments and contingencies (Details Textual) | 1 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 21, 2000 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2009 | Mar. 31, 2009 | 31-May-08 | 31-May-08 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | Maximum [Member] | Trademark Infringements [Member] | Trademark Infringements [Member] | Patent Infringements [Member] | Patent Infringements [Member] | First conviction [Member] | First conviction [Member] | Second conviction [Member] | Second conviction [Member] | ||
USD ($) | USD ($) | INR | USD ($) | INR | USD ($) | INR | USD ($) | INR | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment for purchase of computer equipment and cost to develop internal use software | ' | $774,735 | $675,458 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Age of plaintiff | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fine if convicted | ' | ' | ' | ' | ' | ' | ' | ' | 1,700 | 100,000 | 3,400 | 200,000 |
Infringement related litigation, claim sought | ' | ' | ' | ' | 17,000 | 1,000,000 | 17,000 | 1,000,000 | ' | ' | ' | ' |
Loss due to other litigation disputes | ' | ' | ' | $38,000 | ' | ' | ' | ' | ' | ' | ' | ' |