Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | DUO WORLD INC | |
Entity Central Index Key | 1,635,136 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 38,567,467 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 28,875 | $ 91,106 |
Accounts receivable - trade | 666,748 | 512,685 |
Prepaid expenses and other current assets | 262,868 | 249,745 |
Accrued Revenue | 738 | 31,154 |
Total Current Assets | 959,229 | 884,690 |
Non-Current Assets | ||
Property and equipment, net of accumulated depreciation of $667,937 and $626,292, respectively | 62,563 | 105,790 |
Intangible assets | 501,467 | 382,352 |
Deferred taxes | 17,999 | 18,070 |
Total Non-Current Assets | 582,029 | 506,212 |
Total Assets | 1,541,258 | 1,390,902 |
Current Liabilities | ||
Accounts Payable | 266,873 | 377,376 |
Payroll, employee benefits, severance | 197,474 | 121,395 |
Short Term Borrowings | 354,323 | 227,578 |
Due to related parties | 181,616 | 163,738 |
Payable for acquisition | 185,762 | 185,762 |
Taxes payable | 57,400 | 38,978 |
Accruals and other payables | 82,580 | 83,441 |
Deferred revenue | 5,762 | 9,954 |
Total Current liabilities | 1,331,790 | 1,208,222 |
Long Term Liabilities | ||
Due to related parties | 1,206,221 | 1,194,668 |
Total Long Term liabilities | 1,206,221 | 1,194,668 |
Total liabilities | 2,538,011 | 2,402,890 |
Commitments and contingencies (Note 16) | ||
Shareholders' Deficit | ||
Ordinary shares: $0.001 par value per share; 90,000,000 shares authorized; 38,567,467 and 38,060,000 shares issued and outstanding, respectively | 38,567 | 38,060 |
Additional Paid in Capital | 907,456 | 601,560 |
Accumulated deficit | (2,040,109) | (1,733,937) |
Accumulated other comprehensive income | 91,833 | 76,829 |
Total shareholders' deficit | (996,753) | (1,011,988) |
Total Liabilities and Shareholders' Deficit | 1,541,258 | 1,390,902 |
Series A Preferred Stock [Member] | ||
Shareholders' Deficit | ||
Convertible series ""A"" preferred shares: $0.001 par value per share; 10,000,000 shares authorized; 5,500,000 and 5,500,000 shares issued and outstanding, respectively | $ 5,500 | $ 5,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Accumulated depreciation, property and equipment | $ 667,937 | $ 626,292 |
Ordinary stock, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 90,000,000 | 90,000,000 |
Ordinary stock, shares issued | 38,567,467 | 38,060,000 |
Ordinary stock, shares outstanding | 38,567,467 | 38,060,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 5,500,000 | 5,500,000 |
Preferred stock, shares outstanding | 5,500,000 | 5,500,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 312,390 | $ 351,781 | $ 641,117 | $ 668,131 |
Cost of revenue (exclusive of depreciation presented below) | (66,095) | (100,198) | (142,324) | (169,510) |
Gross Income | 246,295 | 251,582 | 498,793 | 498,621 |
Operating Expenses | ||||
Research and Development | 12,615 | 14,550 | 19,626 | 45,303 |
General and Administrative | 128,714 | 160,313 | 514,226 | 651,094 |
Salaries and casual wages | 113,360 | 92,227 | 208,860 | 186,688 |
Selling and distribution | 3,317 | 8,488 | 6,631 | 15,352 |
Depreciation | 8,701 | 9,160 | 48,424 | 16,786 |
Amortization of Web Site Development | 480 | 330 | 1,226 | 737 |
Allowance for bad debts | 44,820 | 44,820 | ||
Total operating expenses | 312,007 | 285,068 | 843,813 | 915,960 |
Loss before other income (expenses) | (65,712) | (33,486) | (345,020) | (417,339) |
Other income (expenses): | ||||
Interest expense | (5,484) | (8,288) | (10,476) | (16,294) |
Gain on debt extinguishment | 13,247 | |||
Other income | 21 | 27 | 245 | 47 |
Bank charges | (524) | (525) | (1,728) | (1,052) |
Exchange gain / (loss) | 6,008 | 8,886 | 8,660 | 6,794 |
Total other income and (expenses) | 21 | 101 | (3,299) | 2,743 |
Loss before provision for income taxes: | (65,691) | (33,385) | (348,319) | (414,596) |
Provision for income taxes | (548) | (1,112) | ||
Net loss | $ (65,691) | $ (33,934) | $ (348,319) | $ (415,708) |
Basic and Diluted Loss per Share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Basic and Diluted Weighted Average Number of Shares Outstanding | 38,567,467 | 38,060,000 | 38,498,096 | 37,530,601 |
Comprehensive Income (Loss): | ||||
Unrealized foreign currency translation gain | $ 5,577 | $ 38,279 | $ 15,004 | $ 25,217 |
Net loss | (65,691) | (33,934) | (348,319) | (415,708) |
Comprehensive Income (Loss) | $ (60,114) | $ 4,345 | $ (333,314) | $ (390,492) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Loss before provision for income taxes | $ (348,319) | $ (414,596) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation | 49,650 | 17,523 |
Allowance for bad debts | 44,820 | |
Interest on loan | 6,678 | |
Previous period adjustments | 42,146 | |
Stock issued as payment for accrued interest | 15,000 | |
Stock issued for services | 223,600 | |
Product development cost written off | 70,067 | 89,589 |
Changes in assets and liabilities: | ||
Accounts receivable - trade | (198,883) | (18,978) |
Prepayments | 17,293 | 189,322 |
Deferred taxes | 603 | |
Accounts Payable | (110,503) | 69,134 |
Payroll, employee benefits, severance | 76,079 | 39,748 |
Short term overdraft | 126,745 | 14,399 |
Due to relates parties | 17,878 | 6,420 |
Payable for acquisition | (124,238) | |
Taxes payable | 18,422 | (14,455) |
Accruals and other payables | (5,053) | (3,454) |
Net cash provided by / (used in) operating activities | 38,942 | (142,304) |
Investing activities: | ||
Acquisition of Property and Equipment | (9,357) | (43,214) |
Intangible assets | (196,595) | (116,131) |
Net cash used in investing activities | (205,952) | (159,345) |
Financing activities: | ||
Long term - Due to related parties | (56,594) | |
Common Stock | 142,001 | 3,460 |
Preferred Stock | 500 | |
Additional Paid in Capital | (74,197) | 342,540 |
Net cash provided by financing activities | 67,804 | 289,906 |
Effect of exchange rate changes on cash | 36,975 | 45,583 |
Net (decrease) / increase in cash | (62,231) | 33,839 |
Cash, beginning of period | 91,106 | 10,530 |
Cash, end of period | $ 28,875 | $ 44,369 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as Successor or Duo) a private company, was organized under the laws of the state of Nevada on September 19, 2014. Duo Software (Pvt.) Limited (hereinafter referred to as DSSL or Predecessor), a Sri Lanka based company, was incorporated on 22nd September 2004, in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited (hereinafter referred to as DSS or Predecessor), a Singapore based company, was incorporated on 5th June 2007 in the Republic of Singapore as a limited liability company. DSS also includes its wholly owned subsidiary, Duo Software India (Private) Limited (India) which was incorporated on 30th August 2007, under the laws of India. On November 12, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). Duo (Successor) is a holding company that conducts operations through its wholly owned subsidiaries DSSL and DSS (Predecessors) in Sri Lanka, Singapore and India. The consolidated entity is referred to as the Company. The Company, having its development center in Colombo, has been in the space of developing products and services for the subscription-based industry. The Companys application (Duo Subscribe, Duo Contact, Digin, Facetone and SmoothFlow) run on its core platform DuoWorld and is a provider of solutions in the space of Customer Life Cycle Management, Subscriber Billing, Data analytics and Work Flow. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and disclosures necessary for a comprehensive presentation of consolidated financial position, results of operations, or cash flows. It is managements opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair consolidated financial statements presentation. The unaudited interim consolidated financial statements should be read in conjunction with the Companys Annual Report, which contains the audited consolidated financial statements and notes thereto, together with the Managements Discussion and Analysis, for the year ended March 31, 2016. The interim results for the period ended September 30, 2016 are not necessarily indicative of results for the full fiscal year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 - Summary of Significant Accounting Policies Basis of Consolidation Duo World Inc. is the parent company of its 100% subsidiaries Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte Limited (DSS). Duo Software Pte Limited is the parent company of its 100% subsidiary Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-confirming events. Accordingly, the actual results could differ from those estimates. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. Risks and Uncertainties The Companys operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Companys sales are primarily to the companies located in Sri Lanka, Singapore, Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies understated contract terms. Provisions A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and have strong policies and procedures for the collection receivables from its clients. However, there are inevitably occasions when the receivables due to the company, cannot be collected and therefore has to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is therefore made against the outstanding receivable to reflect that component that may not become collectable. The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of September 30, 2016 and March 31, 2016, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Companys foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders deficit as accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income / (loss) as other income (expense). Fixed assets Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years For the financial year ending March 31, 2016, the useful life of Computer Equipment and Website development were assumed to be 5 years. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs related to the sale, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value maybe based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Revenue Recognition, Deferred& Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally, when all of the following criteria are met: ● Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. ● Delivery has occurred or services have been performed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. The Company uses written evidence of customer acceptance to verify delivery or completion of any performance terms. ● The sellers price to the buyer is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customers payment history, economic conditions in the customers industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. The Company typically licenses its products on a per server, per user basis with the price per customer varying based on the selection of the products licensed, the number of site installations and the number of authorized users. Currently, Duo is offering two major products from which it generates its revenue they are Duo Contact & Duo Subscribe. In the case of Duo Contact, Duo offers license to use software to its clients under an agreement. Invoices are raised monthly over the term of agreement, and it recognizes revenue monthly over the term of the underlying arrangement. In the case of Duo Subscribe, Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis as defined in the agreement. Revenue recognition is based on stage of completion basis. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Companys software products. Maintenance fees are bundled with license fees in the initial licensing period and charged separately for renewals of annual maintenance in subsequent years. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the quarters ended September 30, 2016 and 2015, the Company received only cash as consideration for sale of licenses and related services rendered. For the six months ended September 30, 2016 and September 30, 2015, the Company had following concentrations of revenue with customers: Customer September 30, 2016 September 30, 2015 Megamedia 37.00 % 32.40 % DEN Networks 25.41 % 26.54 % Hutchison 13.09 % 13.54 % Topaz TV 7.94 % - HelloCorp 3.28 % 3.68 % BOC 2.88 % - Mediatama 2.04 % 8.61 % Dish Media 1.05 % 6.13 % Singer Sri Lanka 0.80 % 0.76 % DFCC Vardana 0.25 % 1.44 % Medianet - 2.62 % Other misc. customers 6.27 % 4.27 % 100 % 100 % Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - Cost of Revenue Cost of revenue mainly includes purchases, product implementation costs, amortization of product development, Developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Companys development and technical support staff, contractors fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within Intangibles assets in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the quarters ending on September 30, 2016 and 2015, product research and development cost of $105,803 and $65,600, respectively, was capitalized as Intangible assets. Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the three months ended September 30, 2016 and 2015. Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2013 through September 30, 2016, includes only foreign currency translation gains (losses), and is presented in the Companys consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on September 30, 2016 and March 31, 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2016 $ 76,829 Translation rate gain during the period 9,427 Balance, June 30, 2016 $ 86,256 Translation rate gain during the period 5,577 Balance, September 30, 2016 $ 91,833 Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of September 30, 2016 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Companys financial position or results of operations. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Note 4 Accounts Receivable Following is a summary of accounts receivable as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Accounts receivable Trade $ 872,810 $ 674,823 Less: Provision for doubtful debts (206,062 ) (162,138 ) $ 666,748 $ 512,685 At September 30, 2016 and March 31, 2016, the Company had following concentrations of accounts receivable with customers: Customer September 30, 2016 March 31, 2016 Megamedia 51.65 % 28.92 % Digicable 10.19 % 23.68 % DEN Networks 16.59 % 11.97 % Dish Media 6.50 % 5.55 % Topas 5.25 % 1.62 % MediaNet 2.38 % 3.54 % Mediatama 1.52 % 1.86 % Hutchison 1.24 % 2.45 % Fastway - 5.54 % Pentavision - 4.51 % Technosat - 3.15 % Other Misc. receivables 4.70 % 7.22 % 100 % 100 % |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 5 Prepaid Expenses and Other Current Assets Following is a summary of prepaid expenses and other current assets as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Security deposits $ 23,537 $ 24,132 WHT receivable 202,689 205,632 Staff loan and advances 518 1,052 Travel advance 163 - Supplier advance 7,147 1,786 ESC receivable 6,044 6,131 Insurance prepayment 402 1,632 Prepayments 472 1,526 Other receivables 21,896 7,854 $ 262,868 $ 249,745 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6 Property and Equipment Following table illustrates net book value of property and equipment as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Office equipment $ 19,519 $ 19,802 Furniture & fittings 217,371 220,526 Computer equipment (Data Processing Equipment) 477,417 479,273 Improvements to lease hold assets 1,965 1,993 Website Development 14,228 10,487 730,500 732,082 Less: Accumulated depreciation and amortization (667,937 ) (626,292 ) Net fixed assets $ 62,563 $ 105,790 Depreciation and amortization expense for the six months ended September 30, 2016 and 2015 was $49,650 and $17,523 respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7 Intangible Assets Intangible assets comprise of capitalization of certain costs pertaining to product development, which meet the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at September 30, 2016 and March 31, 2016: September 30, 2016 March 31, 2016 Opening Balance $ 382,352 $ 327,542 Add: Costs capitalized during the period 196,595 276,197 Less: Amount written off during the period (70,067 ) (202,311 ) Translational loss (7,413 ) (19,076 ) Net Intangible Assets $ 501,467 $ 382,352 |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Note 8 Short-term Borrowings Following is a summary of short-term borrowings as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Yenom (Pvt.) Limited $ - $ 13,636 PAN Asia Bank Short term overdraft 212,624 213,804 Commercial Bank 3,444 138 Other Borrowings 138,255 - $ 354,323 $ 227,578 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 9.61% per annum up to $ 101,846 and 11.35% per annum up to $ 207,383. |
Due to Related Parties
Due to Related Parties | 6 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Due to Related Parties | Note 9 Due to Related Parties Due to Related Parties Short term From time to time, the Company receives advances from related parties such as officers, directors or principal shareholders in the normal course of business. Loans and advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying consolidated financial statements. As of September 30, 2016 and March 31, 2016, the Company owed directors $181,616 and $163,738 respectively. Due to Related Parties Long term Balances outstanding to related parties for more than 12 months are presented under long-term liabilities in the accompanying consolidated financial statements. Related party loan in the Balance sheet of Duo software Pte. Ltd was recognized at cost as of September 30, 2016, and at amortized cost as of March 31, 2016. As of September 30, 2016 and March 31, 2016, the Company owed directors $1,206,221 and $1,194,668 respectively. |
Taxes Payable
Taxes Payable | 6 Months Ended |
Sep. 30, 2016 | |
Taxes Payable [Abstract] | |
Taxes Payable | Note 10 Taxes Payable The taxes payable comprise of items listed below as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Stamp Duty Payable $ 54 $ 51 PAYE 51,783 33,718 Tax payable 5,563 5,209 $ 57,400 $ 38,978 |
Accruals and Other Payables
Accruals and Other Payables | 6 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accruals and Other Payables | Note 11 Accruals and Other Payables Following is a summary of accruals and other payables as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Audit fee payable $ - $ 4,715 Accrued expenses 7,028 7,860 Other payables 75,552 70,866 $ 82,580 $ 83,441 |
Cost of Revenue
Cost of Revenue | 6 Months Ended |
Sep. 30, 2016 | |
Cost of Revenue [Abstract] | |
Cost of Revenue | Note 12 Cost of Revenue Following is the summary of cost of revenue for the six months ending September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Purchases $ 19,696 $ 52,680 Implementation and onsite support cost 22,904 6,522 Product development cost written off 69,996 89,857 Consultancy, contract basis employee cost 19,007 12,895 Developer support and implementation 10,721 7,556 $ 142,324 $ 169,510 |
General and Administrative Expe
General and Administrative Expenses | 6 Months Ended |
Sep. 30, 2016 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses | Note 13 General and Administrative Expenses Following is the summary of general and administrative expenses for the six months ending September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Directors remuneration $ 52,741 $ 55,806 EPF 23,607 21,165 ETF 5,902 5,292 Bonus 24,961 15,410 Vehicle allowance 28,614 25,329 Staff welfare 8,748 7,026 Penalties / Late payment charges 2,951 2,092 Office rent 35,892 32,653 Electricity charges 8,214 10,596 Office maintenance 8,164 12,088 Telephone charges 6,793 7,119 Travelling expense 1,718 29,056 Printing and stationery 886 1,301 Office expenses 1,252 1,115 Computer maintenance 3,697 10,313 Internet charges 6,634 5,214 Courier and postage 418 276 Security charges 1,696 2,026 Training and development 130 288 Insurance expense 1,172 771 Professional fees 25,372 1,380 Secretarial fees 411 24 Un-claimable VAT input/ Irrecoverable tax 23,249 19,248 Software Rentals 12,993 10,931 Other professional services 219,650 350,327 Audit fee 2,564 20,000 Transfer agent fees 1,235 1,710 Filling fee and subscription 2,756 - Stamp duty expenses 451 - Legal fee 1,005 - Gratuity - 2,538 Other expenses 350 - $ 514,226 $ 651,094 |
Selling and Distribution Expens
Selling and Distribution Expenses | 6 Months Ended |
Sep. 30, 2016 | |
Selling and Marketing Expense [Abstract] | |
Selling and Distribution Expenses | Note 14 Selling and Distribution Expenses Following is the summary of selling and distribution expenses for the six months ending on September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Marketing Expenses $ 570 $ 9,568 Vehicle hire charges 3,221 3,408 Vehicle running expense 2,416 700 Foreign Travel 424 1,400 Advertisement - 194 Visa expenses - 82 $ 6,631 $ 15,352 |
Equity
Equity | 6 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | Note 15 - Equity (A) Common Stock As at September 30, 2016, the Company had 90,000,000 authorized common shares having a par value of $0.001. The ordinary shares are designated with the following rights: ● Voting rights: ● Right to elect board of directors: ● Right to share income and assets: During the six months ended September 30, 2016, the Company issued following common shares: Date Type No. of Shares Valuation 04/22/2016 Stock issued to PPM-2 investor 188,000 $ 141,000 04/22/2016 Stock issued to PPM-2 investor 13,334 10,001 04/27/2016 Stock issued for services 46,133 34,600 04/27/2016 Stock issued for services 240,000 180,000 04/27/2016 Stock issued as payment for accrued interest 20,000 15,000 507,467 $ 380,600 (B) Preferred Stock As at September 30, 2016, the Company had 10,000,000 authorized series A preferred shares having a par value of $0.001 per share. The preferred shares are designated with the following conversion rights: ● One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. During the six months ended September 30, 2016, the Company has not issued any new preferred shares. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16 - Commitments and Contingencies The Company consults with legal counsel on matters related to litigation and other experts both within and outside the Company with respect to matters in the ordinary course of business. The Company does not have any contingent liabilities in respect of legal claims arising in the ordinary course of business. Duo entered into a lease commitment for its Sri Lanka office amounting to $186,645 with Happy Building Management Company for a period of 3 years in 2016. Duo entered into another lease commitment for its Indian office amounting to $1,224 on April 1, 2016 with Regus Office Center Services Pvt. Limited for a period of 1 year. Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 10,383 10/31/2011 Advance payment Bond for BOC Tender 2,076 5/15/2013 Guarantee for Lanka Clear 2,182 10/9/2012 Guarantee for CEB 346 7/31/2014 Guarantee for SLT 587 8/10/2015 Guarantee for LOLC 1,659 $ 17,233 The company has not provided any guarantees other than those mentioned above. |
General
General | 6 Months Ended |
Sep. 30, 2016 | |
General | |
General | Note 17 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation Duo World Inc. is the parent company of its 100% subsidiaries Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte Limited (DSS). Duo Software Pte Limited is the parent company of its 100% subsidiary Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-confirming events. Accordingly, the actual results could differ from those estimates. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. |
Risks and Uncertainties | Risks and Uncertainties The Companys operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Companys sales are primarily to the companies located in Sri Lanka, Singapore, Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies understated contract terms. |
Provisions | Provisions A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. |
Accounts Receivable and Provision for Doubtful Accounts | Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and have strong policies and procedures for the collection receivables from its clients. However, there are inevitably occasions when the receivables due to the company, cannot be collected and therefore has to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is therefore made against the outstanding receivable to reflect that component that may not become collectable. The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of September 30, 2016 and March 31, 2016, there were no cash equivalents. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of the Companys foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders deficit as accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income / (loss) as other income (expense). |
Fixed Assets | Fixed assets Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years For the financial year ending March 31, 2016, the useful life of Computer Equipment and Website development were assumed to be 5 years. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs related to the sale, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value maybe based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. |
Revenue Recognition, Deferred & Accrued Revenue | Revenue Recognition, Deferred& Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services in accordance with ASC Topic 605, Revenue Recognition. ASC Topic 605 sets forth guidance as to when revenue is realized or realizable and earned, which is generally, when all of the following criteria are met: ● Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. ● Delivery has occurred or services have been performed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. The Company uses written evidence of customer acceptance to verify delivery or completion of any performance terms. ● The sellers price to the buyer is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customers payment history, economic conditions in the customers industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. The Company typically licenses its products on a per server, per user basis with the price per customer varying based on the selection of the products licensed, the number of site installations and the number of authorized users. Currently, Duo is offering two major products from which it generates its revenue they are Duo Contact & Duo Subscribe. In the case of Duo Contact, Duo offers license to use software to its clients under an agreement. Invoices are raised monthly over the term of agreement, and it recognizes revenue monthly over the term of the underlying arrangement. In the case of Duo Subscribe, Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis as defined in the agreement. Revenue recognition is based on stage of completion basis. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Companys software products. Maintenance fees are bundled with license fees in the initial licensing period and charged separately for renewals of annual maintenance in subsequent years. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the quarters ended September 30, 2016 and 2015, the Company received only cash as consideration for sale of licenses and related services rendered. For the six months ended September 30, 2016 and September 30, 2015, the Company had following concentrations of revenue with customers: Customer September 30, 2016 September 30, 2015 Megamedia 37.00 % 32.40 % DEN Networks 25.41 % 26.54 % Hutchison 13.09 % 13.54 % Topaz TV 7.94 % - HelloCorp 3.28 % 3.68 % BOC 2.88 % - Mediatama 2.04 % 8.61 % Dish Media 1.05 % 6.13 % Singer Sri Lanka 0.80 % 0.76 % DFCC Vardana 0.25 % 1.44 % Medianet - 2.62 % Other misc. customers 6.27 % 4.27 % 100 % 100 % Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - |
Cost of Revenue | Cost of Revenue Cost of revenue mainly includes purchases, product implementation costs, amortization of product development, Developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. |
Product Research and Development | Product research and development Product research and development expenses consist primarily of salary and benefits for the Companys development and technical support staff, contractors fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within Intangibles assets in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the quarters ending on September 30, 2016 and 2015, product research and development cost of $105,803 and $65,600, respectively, was capitalized as Intangible assets. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the three months ended September 30, 2016 and 2015. |
Comprehensive Income | Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2013 through September 30, 2016, includes only foreign currency translation gains (losses), and is presented in the Companys consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on September 30, 2016 and March 31, 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2016 $ 76,829 Translation rate gain during the period 9,427 Balance, June 30, 2016 $ 86,256 Translation rate gain during the period 5,577 Balance, September 30, 2016 $ 91,833 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has reviewed accounting pronouncements that were issued as of September 30, 2016 and believes that these pronouncements are not applicable to the Company, or that they will not have a material impact on the Companys financial position or results of operations. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Provision for Doubtful Debts Based on Period Outstanding | The company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Schedule of Estimated Useful Lives of Fixed Assets | Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years |
Schedule of Concentrations of Revenue | For the six months ended September 30, 2016 and September 30, 2015, the Company had following concentrations of revenue with customers: Customer September 30, 2016 September 30, 2015 Megamedia 37.00 % 32.40 % DEN Networks 25.41 % 26.54 % Hutchison 13.09 % 13.54 % Topaz TV 7.94 % - HelloCorp 3.28 % 3.68 % BOC 2.88 % - Mediatama 2.04 % 8.61 % Dish Media 1.05 % 6.13 % Singer Sri Lanka 0.80 % 0.76 % DFCC Vardana 0.25 % 1.44 % Medianet - 2.62 % Other misc. customers 6.27 % 4.27 % 100 % 100 % |
Schedule of Accumulated Other Comprehensive Income (loss) | Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on September 30, 2016 and March 31, 2016 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2016 $ 76,829 Translation rate gain during the period 9,427 Balance, June 30, 2016 $ 86,256 Translation rate gain during the period 5,577 Balance, September 30, 2016 $ 91,833 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivables | Following is a summary of accounts receivable as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Accounts receivable Trade $ 872,810 $ 674,823 Less: Provision for doubtful debts (206,062 ) (162,138 ) $ 666,748 $ 512,685 |
Schedule of Concentrations of Accounts Receivable | At September 30, 2016 and March 31, 2016, the Company had following concentrations of accounts receivable with customers: Customer September 30, 2016 March 31, 2016 Megamedia 51.65 % 28.92 % Digicable 10.19 % 23.68 % DEN Networks 16.59 % 11.97 % Dish Media 6.50 % 5.55 % Topas 5.25 % 1.62 % MediaNet 2.38 % 3.54 % Mediatama 1.52 % 1.86 % Hutchison 1.24 % 2.45 % Fastway - 5.54 % Pentavision - 4.51 % Technosat - 3.15 % Other Misc. receivables 4.70 % 7.22 % 100 % 100 % |
Prepaid Expenses and Other Cu26
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Following is a summary of prepaid expenses and other current assets as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Security deposits $ 23,537 $ 24,132 WHT receivable 202,689 205,632 Staff loan and advances 518 1,052 Travel advance 163 - Supplier advance 7,147 1,786 ESC receivable 6,044 6,131 Insurance prepayment 402 1,632 Prepayments 472 1,526 Other receivables 21,896 7,854 $ 262,868 $ 249,745 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Following table illustrates net book value of property and equipment as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Office equipment $ 19,519 $ 19,802 Furniture & fittings 217,371 220,526 Computer equipment (Data Processing Equipment) 477,417 479,273 Improvements to lease hold assets 1,965 1,993 Website Development 14,228 10,487 730,500 732,082 Less: Accumulated depreciation and amortization (667,937 ) (626,292 ) Net fixed assets $ 62,563 $ 105,790 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Following table illustrates the movement in intangible assets as at September 30, 2016 and March 31, 2016: September 30, 2016 March 31, 2016 Opening Balance $ 382,352 $ 327,542 Add: Costs capitalized during the period 196,595 276,197 Less: Amount written off during the period (70,067 ) (202,311 ) Translational loss (7,413 ) (19,076 ) Net Intangible Assets $ 501,467 $ 382,352 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Short-term Borrowings | Following is a summary of short-term borrowings as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Yenom (Pvt.) Limited $ - $ 13,636 PAN Asia Bank Short term overdraft 212,624 213,804 Commercial Bank 3,444 138 Other Borrowings 138,255 - $ 354,323 $ 227,578 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | The taxes payable comprise of items listed below as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Stamp Duty Payable $ 54 $ 51 PAYE 51,783 33,718 Tax payable 5,563 5,209 $ 57,400 $ 38,978 |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accruals and Other Payables | Following is a summary of accruals and other payables as at September 30, 2016 and March 31, 2016; September 30, 2016 March 31, 2016 Audit fee payable $ - $ 4,715 Accrued expenses 7,028 7,860 Other payables 75,552 70,866 $ 82,580 $ 83,441 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Cost of Revenue [Abstract] | |
Summary of Cost of Revenue | Following is the summary of cost of revenue for the six months ending September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Purchases $ 19,696 $ 52,680 Implementation and onsite support cost 22,904 6,522 Product development cost written off 69,996 89,857 Consultancy, contract basis employee cost 19,007 12,895 Developer support and implementation 10,721 7,556 $ 142,324 $ 169,510 |
General and Administrative Ex33
General and Administrative Expenses (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
General and Administrative Expense [Abstract] | |
Schedule of General and Administrative Expenses | Following is the summary of general and administrative expenses for the six months ending September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Directors remuneration $ 52,741 $ 55,806 EPF 23,607 21,165 ETF 5,902 5,292 Bonus 24,961 15,410 Vehicle allowance 28,614 25,329 Staff welfare 8,748 7,026 Penalties / Late payment charges 2,951 2,092 Office rent 35,892 32,653 Electricity charges 8,214 10,596 Office maintenance 8,164 12,088 Telephone charges 6,793 7,119 Travelling expense 1,718 29,056 Printing and stationery 886 1,301 Office expenses 1,252 1,115 Computer maintenance 3,697 10,313 Internet charges 6,634 5,214 Courier and postage 418 276 Security charges 1,696 2,026 Training and development 130 288 Insurance expense 1,172 771 Professional fees 25,372 1,380 Secretarial fees 411 24 Un-claimable VAT input/ Irrecoverable tax 23,249 19,248 Software Rentals 12,993 10,931 Other professional services 219,650 350,327 Audit fee 2,564 20,000 Transfer agent fees 1,235 1,710 Filling fee and subscription 2,756 - Stamp duty expenses 451 - Legal fee 1,005 - Gratuity - 2,538 Other expenses 350 - $ 514,226 $ 651,094 |
Selling and Distribution Expe34
Selling and Distribution Expenses (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Selling and Marketing Expense [Abstract] | |
Schedule of Selling and Distribution Expenses | Following is the summary of selling and distribution expenses for the six months ending on September 30, 2016 and 2015; September 30, 2016 September 30, 2015 Marketing Expenses $ 570 $ 9,568 Vehicle hire charges 3,221 3,408 Vehicle running expense 2,416 700 Foreign Travel 424 1,400 Advertisement - 194 Visa expenses - 82 $ 6,631 $ 15,352 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Common Shares Issued | During the six months ended September 30, 2016, the Company issued following common shares: Date Type No. of Shares Valuation 04/22/2016 Stock issued to PPM-2 investor 188,000 $ 141,000 04/22/2016 Stock issued to PPM-2 investor 13,334 10,001 04/27/2016 Stock issued for services 46,133 34,600 04/27/2016 Stock issued for services 240,000 180,000 04/27/2016 Stock issued as payment for accrued interest 20,000 15,000 507,467 $ 380,600 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantee Provided by Existed Company | Guarantee provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 10,383 10/31/2011 Advance payment Bond for BOC Tender 2,076 5/15/2013 Guarantee for Lanka Clear 2,182 10/9/2012 Guarantee for CEB 346 7/31/2014 Guarantee for SLT 587 8/10/2015 Guarantee for LOLC 1,659 $ 17,233 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Cash equivalents | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | ||
Deferred revenue | $ 5,762 | 9,954 | |
Unbilled receivables | 738 | $ 31,154 | |
Product research and development cost | 105,803 | $ 65,600 | |
Advertising Expense | |||
Computer Equipment and Website Development [Member] | |||
Estimated useful life | 5 years | ||
Maximum [Member] | |||
Estimated useful life | 15 years | ||
Duo Software (Pvt.) Limited and Duo Software Pte Limited [Member] | |||
Ownership interest | 100.00% | ||
Duo Software India (Private) Limited [Member] | |||
Ownership interest | 100.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Provision For Doubtful Debts Based on Period Outstanding (Details) - Trade Receivables Outstanding [Member] | 6 Months Ended |
Sep. 30, 2016 | |
Over 24 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 100.00% |
Over 18 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 50.00% |
Over 15 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 25.00% |
Over 12 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 10.00% |
Over 9 months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 5.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Schedule of Estimated Useful lives of Fixed assets (Details) | 6 Months Ended |
Sep. 30, 2016 | |
Furniture & Fittings [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Improvements to Lease Hold Assets [Member] | |
Estimated useful Lives of property and equipment, description | Lease term |
Office Equipment [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Computer Equipment (Data Processing Equipment) [Member] | |
Estimated useful Lives of property and equipment | 3 years |
Website Development [Member] | |
Estimated useful Lives of property and equipment | 4 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Schedule of Concentrations of Revenue (Details) - Revenue [Member] | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Concentrations of revenue percentage | 100.00% | 100.00% |
Megamedia [Member] | ||
Concentrations of revenue percentage | 37.00% | 32.40% |
DEN Networks [Member] | ||
Concentrations of revenue percentage | 25.41% | 26.54% |
Hutchison [Member] | ||
Concentrations of revenue percentage | 13.09% | 13.54% |
Topaz TV [Member] | ||
Concentrations of revenue percentage | 7.94% | |
HelloCorp [Member] | ||
Concentrations of revenue percentage | 3.28% | 3.68% |
BOC [Member] | ||
Concentrations of revenue percentage | 2.88% | |
Mediatama [Member] | ||
Concentrations of revenue percentage | 2.04% | 8.61% |
Dish Media [Member] | ||
Concentrations of revenue percentage | 1.05% | 6.13% |
Singer Sri Lanka [Member] | ||
Concentrations of revenue percentage | 0.80% | 0.76% |
DFCC Vardana [Member] | ||
Concentrations of revenue percentage | 0.25% | 1.44% |
MediaNet [Member] | ||
Concentrations of revenue percentage | 2.62% | |
Other misc. customers [Member] | ||
Concentrations of revenue percentage | 6.27% | 4.27% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | |||||
Foreign Currency Translation gains (losses),beginning | $ 86,256 | $ 76,829 | $ 76,829 | ||
Translation rate gain during the period | 5,577 | 9,427 | $ 38,279 | 15,004 | $ 25,217 |
Foreign Currency Translation gains (losses),ending | $ 91,833 | $ 86,256 | $ 91,833 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable - Trade | $ 872,810 | $ 674,823 |
Less: Provision for doubtful debts | (206,062) | (162,138) |
Accounts receivable | $ 666,748 | $ 512,685 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Concentrations of Accounts Receivable (Details) - Accounts Receivable [Member] | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Concentrations of accounts receivable | 100.00% | 100.00% |
Megamedia [Member] | ||
Concentrations of accounts receivable | 51.65% | 28.92% |
Digicable [Member] | ||
Concentrations of accounts receivable | 10.19% | 23.68% |
DEN Networks [Member] | ||
Concentrations of accounts receivable | 16.59% | 11.97% |
Dish Media [Member] | ||
Concentrations of accounts receivable | 6.50% | 5.55% |
Topas [Member] | ||
Concentrations of accounts receivable | 5.25% | 1.62% |
MediaNet [Member] | ||
Concentrations of accounts receivable | 2.38% | 3.54% |
Mediatama [Member] | ||
Concentrations of accounts receivable | 1.52% | 1.86% |
Hutchison [Member] | ||
Concentrations of accounts receivable | 1.24% | 2.45% |
Fastway [Member] | ||
Concentrations of accounts receivable | 5.54% | |
Pentavision [Member] | ||
Concentrations of accounts receivable | 4.51% | |
Technosat [Member] | ||
Concentrations of accounts receivable | 3.15% | |
Other misc. receivables [Member] | ||
Concentrations of accounts receivable | 4.70% | 7.22% |
Prepaid Expenses and Other Cu44
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Security deposits | $ 23,537 | $ 24,132 |
WHT receivable | 202,689 | 205,632 |
Staff loan and advances | 518 | 1,052 |
Travel advance | 163 | |
Supplier advance | 7,147 | 1,786 |
ESC receivable | 6,044 | 6,131 |
Insurance prepayment | 402 | 1,632 |
Prepayments | 472 | 1,526 |
Other receivables | 21,896 | 7,854 |
Prepaid expenses and other current assets | $ 262,868 | $ 249,745 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 49,650 | $ 17,523 |
Property and Equipment - Schedu
Property and Equipment - Schedule of property and Equipment (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Property and equipment gross | $ 730,500 | $ 732,082 |
Less: Accumulated depreciation and amortization | (667,937) | (626,292) |
Net fixed assets | 62,563 | 105,790 |
Office Equipment [Member] | ||
Property and equipment gross | 19,519 | 19,802 |
Furniture & Fittings [Member] | ||
Property and equipment gross | 217,371 | 220,526 |
Computer Equipment (Data Processing Equipment) [Member] | ||
Property and equipment gross | 477,417 | 479,273 |
Improvements to Lease Hold Assets [Member] | ||
Property and equipment gross | 1,965 | 1,993 |
Website Development [Member] | ||
Property and equipment gross | $ 14,228 | $ 10,487 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Aseets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Net Intangible Assets Opening Balance | $ 382,352 | $ 327,542 |
Add: Costs capitalized during the period | 196,595 | 276,197 |
Less: Amount written -off during the period | (70,067) | (202,311) |
Translational loss | (7,413) | (19,076) |
Net Intangible Assets Ending Balance | $ 501,467 | $ 382,352 |
Short-term Borrowings (Details
Short-term Borrowings (Details Narrative) - Pan Asia Banking Corporation PLC [Member] - Maximum [Member] | Sep. 30, 2016USD ($) |
Interest Rate of 9.61% Per Annum [Member] | |
Bank overdrafts | $ 101,846 |
Bank overdraft facility interest rate | 9.61% |
Interest Rate of 11.35% Per Annum [Member] | |
Bank overdrafts | $ 207,383 |
Bank overdraft facility interest rate | 11.35% |
Short-term Borrowings - Summary
Short-term Borrowings - Summary of Short term Borrowings (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Short Term Borrowings | $ 354,323 | $ 227,578 |
Yenom (Pvt.) Limited [Member] | ||
Short Term Borrowings | 13,636 | |
PAN Asia Bank - Short term overdraft [Member] | ||
Short Term Borrowings | 212,624 | 213,804 |
Commercial Bank [Member] | ||
Short Term Borrowings | 3,444 | 138 |
Other Borrowings [Member] | ||
Short Term Borrowings | $ 138,255 |
Due to Related Parties (Details
Due to Related Parties (Details Narrative) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Related Party Transactions [Abstract] | ||
Due to related parties short term | $ 181,616 | $ 163,738 |
Due to related parties long term | $ 1,206,221 | $ 1,194,668 |
Taxes Payable - Schedule of Tax
Taxes Payable - Schedule of Taxes Payable (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Taxes payable | $ 57,400 | $ 38,978 |
Stamp Duty Payable [Member] | ||
Taxes payable | 54 | 51 |
PAYE [Member] | ||
Taxes payable | 51,783 | 33,718 |
Tax Payable [Member] | ||
Taxes payable | $ 5,563 | $ 5,209 |
Accruals and Other Payables - S
Accruals and Other Payables - Schedule of Accruals and Other Payables (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Payables and Accruals [Abstract] | ||
Audit fee payable | $ 4,715 | |
Accrued expenses | 7,028 | 7,860 |
Other payables | 75,552 | 70,866 |
Accruals and other payables | $ 82,580 | $ 83,441 |
Cost of Revenue - Summary of Co
Cost of Revenue - Summary of Cost of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of Revenue [Abstract] | ||||
Purchases | $ 19,696 | $ 52,680 | ||
Implementation and onsite support cost | 22,904 | 6,522 | ||
Product development cost written off | 69,996 | 89,857 | ||
Consultancy, contract basis employee cost | 19,007 | 12,895 | ||
Developer support and implementation | 10,721 | 7,556 | ||
Cost of revenue | $ 66,095 | $ 100,198 | $ 142,324 | $ 169,510 |
General and Administrative Ex54
General and Administrative Expenses - Schedule of General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Software Rentals | $ 10,721 | $ 7,556 | ||
General and Administrative Expenses | $ 128,714 | $ 160,313 | 514,226 | 651,094 |
General and Administrative Expense [Member] | ||||
Directors remuneration | 52,741 | 55,806 | ||
EPF | 23,607 | 21,165 | ||
ETF | 5,902 | 5,292 | ||
Bonus | 24,961 | 15,410 | ||
Vehicle allowance | 28,614 | 25,329 | ||
Staff welfare | 8,748 | 7,026 | ||
Penalties / Late payment charges | 2,951 | 2,092 | ||
Office rent | 35,892 | 32,653 | ||
Electricity charges | 8,214 | 10,596 | ||
Office maintenance | 8,164 | 12,088 | ||
Telephone charges | 6,793 | 7,119 | ||
Travelling expense | 1,718 | 29,056 | ||
Printing and stationery | 886 | 1,301 | ||
Office expenses | 1,252 | 1,115 | ||
Computer maintenance | 3,697 | 10,313 | ||
Internet charges | 6,634 | 5,214 | ||
Courier and postage | 418 | 276 | ||
Security charges | 1,696 | 2,026 | ||
Training and development | 130 | 288 | ||
Insurance expense | 1,172 | 771 | ||
Professional fees | 25,372 | 1,380 | ||
Secretarial fees | 411 | 24 | ||
Un-claimable VAT input/ Irrecoverable tax | 23,249 | 19,248 | ||
Software Rentals | 12,993 | 10,931 | ||
Other professional services | 219,650 | 350,327 | ||
Audit fee | 2,564 | 20,000 | ||
Transfer agent fees | 1,235 | 1,710 | ||
Filling fee and subscription | 2,756 | |||
Stamp duty expenses | 451 | |||
Legal fee | 1,005 | |||
Gratuity | 2,538 | |||
Other expenses | 350 | |||
General and Administrative Expenses | $ 514,226 | $ 651,094 |
Selling and Distribution Expe55
Selling and Distribution Expenses - Schedule of Selling and Distribution Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Advertisement | ||||
Selling and distribution expenses | $ 3,317 | $ 8,488 | 6,631 | 15,352 |
Selling and Distribution Expenses [Member] | ||||
Marketing Expenses | 570 | 9,568 | ||
Vehicle hire charges | 3,221 | 3,408 | ||
Vehicle running expense | 2,416 | 700 | ||
Foreign Travel | 424 | 1,400 | ||
Advertisement | 194 | |||
Visa expenses | 82 | |||
Selling and distribution expenses | $ 6,631 | $ 15,352 |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | 6 Months Ended | |
Sep. 30, 2016 | Mar. 31, 2016 | |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock conversion description | One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. | |
Number of preferred shares converted into common shares | 10 | |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Equity - Schedule of Common Sha
Equity - Schedule of Common Shares Issued (Details) | 6 Months Ended |
Sep. 30, 2016USD ($)shares | |
Number of common stock issued, shares | shares | 507,467 |
Number of common stock issued | $ | $ 380,600 |
04/22/2016 [Member] | Stock Issued to PPM-2 Investor [Member] | |
Number of common stock issued, shares | shares | 188,000 |
Number of common stock issued | $ | $ 141,000 |
04/22/2016 [Member] | Stock Issued to PPM-2 Investor [Member] | |
Number of common stock issued, shares | shares | 13,334 |
Number of common stock issued | $ | $ 10,001 |
04/27/2016 [Member] | Stock Issued for Services [Member] | |
Number of common stock issued, shares | shares | 46,133 |
Number of common stock issued | $ | $ 34,600 |
04/27/2016 [Member] | Stock Issued for Services [Member] | |
Number of common stock issued, shares | shares | 240,000 |
Number of common stock issued | $ | $ 180,000 |
04/27/2016 [Member] | Stock Issued as Payment for Accrued Interest [Member] | |
Number of common stock issued, shares | shares | 20,000 |
Number of common stock issued | $ | $ 15,000 |
Commitments and Contingencies58
Commitments and Contingencies (Details Narrative) - Happy Building Management [Member] - USD ($) | Apr. 02, 2016 | Sep. 30, 2016 |
Sri Lanka Office [Member] | ||
Lease commitment amount | $ 186,645 | |
Lease term | 3 years | |
Indian Office [Member] | ||
Lease commitment amount | $ 1,224 | |
Lease term | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Guarantee Provided by Existed Company (Details) - USD ($) | Aug. 10, 2015 | Jul. 31, 2014 | May 15, 2013 | Oct. 09, 2012 | Oct. 31, 2011 | Sep. 23, 2011 | Sep. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Guarantee Description | Guarantee for LOLC | Guarantee for SLT | Guarantee for Lanka Clear | Guarantee for CEB | Advance payment Bond for BOC Tender | Performance Bond for BOC Tender | |
Guarantee Amount | $ 1,659 | $ 587 | $ 2,182 | $ 346 | $ 2,076 | $ 10,383 | $ 17,233 |