Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Aug. 20, 2018 | |
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 | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 65,738,320 | |
Trading Symbol | DUUO | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 7,779 | $ 25,798 |
Accounts receivable - trade | 301,670 | 369,232 |
Prepaid expenses and other current assets | 94,331 | 523,000 |
Accrued Revenue | 122,561 | 148,714 |
Total Current Assets | 526,341 | 1,066,744 |
Non-Current Assets | ||
Property and equipment, net of accumulated depreciation of $252,383 and $255,654 respectively | 40,611 | 43,494 |
Intangible assets | 766,491 | 732,939 |
Total Non-Current Assets | 807,102 | 776,433 |
Total Assets | 1,333,443 | 1,843,177 |
Current Liabilities | ||
Accounts payable | 391,422 | 367,620 |
Short term borrowings | 663,561 | 690,139 |
Payroll, employee benefits, severance | 557,392 | 458,717 |
Due to related parties | 563,219 | 524,955 |
Payable for acquisition | 185,762 | 185,762 |
Taxes payable | 132,098 | 126,716 |
Accruals and other payables | 156,206 | 131,550 |
Lease creditors | 13,454 | 9,696 |
Deferred revenue | 14,073 | |
Total Current Liabilities | 2,677,187 | 2,495,155 |
Long Term Liabilities | ||
Due to related parties | 1,344,464 | 1,348,193 |
Lease creditors | 7,169 | 10,129 |
Employee Benefit Obligation | 148,478 | 154,032 |
Total Long Term liabilities | 1,500,111 | 1,512,354 |
Total Liabilities | 4,177,298 | 4,007,509 |
Commitments and contingencies (Note 16) | ||
Shareholders' Deficit | ||
Ordinary shares: $0.001 par value per share; 400,000,000 shares authorized; 65,738,320 and 52,590,654 shares issued and outstanding, respectively | 65,738 | 52,591 |
Convertible series A preferred shares: $0.001 par value per share; 10,000,000 shares authorized; 5,000,000 and 5,000,000 shares issued and outstanding, respectively | 5,000 | 5,000 |
Additional paid in capital | 11,539,358 | 5,767,533 |
Accumulated deficit | (14,562,711) | (8,059,437) |
Accumulated other comprehensive income | 108,760 | 69,981 |
Total Shareholders' Deficit | (2,843,855) | (2,164,332) |
Total Liabilities and Shareholders' Deficit | $ 1,333,443 | $ 1,843,177 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property and equipment | $ 252,383 | $ 255,654 |
Ordinary stock, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 400,000,000 | 400,000,000 |
Ordinary stock, shares issued | 65,738,320 | 52,590,654 |
Ordinary stock, shares outstanding | 65,738,320 | 52,590,654 |
Convertible series "A" preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible series "A" preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible series "A" preferred stock, shares issued | 5,000,000 | 5,000,000 |
Convertible series "A" preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 149,203 | $ 210,812 |
Cost of sales (exclusive of depreciation presented below) | (61,820) | (86,750) |
Gross income | 87,383 | 124,062 |
Operating Expenses | ||
General and administrative expenses | 119,112 | 148,569 |
Salaries and benefits | 70,338 | 84,251 |
Professional services- Investment advisory | 438,598 | |
Selling and distribution expenses | 2,684 | 3,055 |
Depreciation | 6,937 | 7,091 |
Amortization of web site development | 446 | 381 |
Allowance for bad debts | 100,562 | 30,601 |
Total operating expenses | 738,677 | 273,948 |
Loss from operations | (651,294) | (149,886) |
Other income (expenses): | ||
Gain / (Loss) on disposals | 32 | |
Other income | 266 | 602 |
Bank charges | (730) | (994) |
Exchange gain / (loss) | (4,085) | 6,225 |
Interest expense | (53,939) | (17,851) |
Total other expenses | (58,488) | (11,986) |
Loss before provision for income taxes | (709,782) | (161,872) |
Provision for income taxes | ||
Net loss | $ (709,782) | $ (161,872) |
Net loss per common share - basic and diluted | $ (0.01) | $ 0 |
Basic and Diluted Weighted Average Number of Common Shares Outstanding | 56,780,570 | 38,567,467 |
Comprehensive Income / (Loss): | ||
(Loss) / gain on foreign currency translation | $ 38,779 | $ (5,962) |
Net loss | (709,782) | (161,872) |
Comprehensive Loss | $ (671,003) | $ (167,834) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Loss before provision for income taxes | $ (709,782) | $ (161,872) |
Adjustments to reconcile loss before provision for income taxes to cash provided by / (used in) operating activities: | ||
Depreciation | 7,383 | 7,472 |
Allowance for bad debts | 100,562 | 30,601 |
Gain on disposals of property and equipment | (32) | |
Product development cost written off | 19,536 | 27,384 |
Stock issued for services | 51,800 | |
Prior year adjustments | 4,465 | |
Changes in assets and liabilities: | ||
Accounts receivable - trade | (33,000) | (113,385) |
Prepayments | 428,669 | 41,587 |
Accounts Payable | 23,802 | 44,272 |
Short term borrowing | (26,578) | (14,503) |
Payroll, employee benefits, severance | 98,675 | 29,763 |
Due to relates parties | 38,264 | 151,105 |
Taxes payable | 5,382 | 4,009 |
Accruals and other payables | 52,695 | (12,010) |
Employee benefit obligation | (5,554) | |
Deferred taxes | 53 | |
Net cash provided by / (used in) operating activities | 4,519 | 86,244 |
Cash Flows used in investing activities: | ||
Acquisition of Property and Equipment | (945) | |
Sale proceeds of disposal of Property and Equipment | 29 | 282 |
Intangible assets | (67,102) | (65,426) |
Net cash used in investing activities | (68,018) | (65,144) |
Cash flows from financing activities: | ||
Net cash provided by financing activities | ||
Net increase / (decrease) in cash | (63,499) | 21,100 |
Effect of exchange rate changes on cash | 45,480 | (752) |
Cash, beginning of period | 25,798 | 25,084 |
Cash, end of period | 7,779 | 45,432 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 22,837 | 16,276 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common shares issued for services received | 51,800 | |
Common shares issued as a Dividend payment | $ 5,784,973 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as “Successor” or “Duo”) a reporting company since September 26, 2016, was organized under the laws of the state of Nevada on September 19, 2014. Duo Software (Pvt.) Limited (hereinafter referred to as “DSSL” or “Predecessor”), a Sri Lanka based company, was incorporated on September 22, 2004, in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited (hereinafter referred to as “DSS” or “Predecessor”), a Singapore based company, was incorporated on June 5, 2007 in the Republic of Singapore as a limited liability company. DSS also includes its wholly-owned subsidiary, Duo Software India (Private) Limited (India), which was incorporated on August 30, 2007, under the laws of India. On December 3, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). See Note 4 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 - Basis of Presentation The Company has prepared the accompanying consolidated financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All amounts in the consolidated financial statements are stated in U.S. dollars. We have recast certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. As reflected in the accompanying consolidated financial statements, the Company had a net loss of $708,549 and $161,872 for the three months ended June 30, 2018 and 2017, respectively; net cash provided by operations of $4,507 and $86,244 for the three months ended June 30, 2018 and 2017, respectively; working capital deficit of $2,150,846 and $1,428,411 as of June 30, 2018 and March 31, 2018, respectively; outstanding statutory dues towards employee provident fund and employee trust fund of $410,089 and $388,630 as of June 30, 2018 and March 31, 2018, respectively; and a stockholders’ deficit of $2,842,610 and $2,164,332 as of June 30, 2018 and March 31, 2018, respectively. Operating losses during the three months ended June 30, 2018 were mainly due to a one-time expenditure incurred for general financial advisory and investment banking services, on account of the agreement signed with Maxim Group LLC on July 3, 2017. Furthermore, the Company has entered into contracts with the clients for the products launched during the fiscal year 2017-18 and our management is confident that these projects shall generate sufficient revenues to offset the operating losses in the recent future. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 - Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated Financial Statements include the accounts and transactions of DSSL and DSS (Predecessors) and Duo (Successor). Duo World, Inc. is the parent company of its 100% subsidiaries, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS). Duo Software Pte. Limited is the parent company of its 100% subsidiary, Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates and assumptions requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-confirming events. Accordingly, the actual results could differ from those estimates and assumptions. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. Risks and Uncertainties The Company’s operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Company’s sales are primarily to the companies located in Sri Lanka, Singapore, Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies under stated contract terms. Provisions A provision is recognized when the Company has present obligations because of past events. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimates can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and has strong policies and procedures for the collection of receivables from its clients. However, there are inevitably occasions when the receivables due to the Company cannot be collected and, therefore, have to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is, therefore, made against the outstanding receivable to reflect that component that may not become collectable. The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2018 and March 31, 2018, there were no cash equivalents. Foreign Currency Translation The functional currencies of the Company’s foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders’ deficit as “accumulated other comprehensive income (loss).” Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income /(loss) as other income (expense). Property and Equipment Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost bases, which approximates their fair values because of the short-term nature of these instruments. Post Retirement Benefit Plan The Company has gratuity as it post-employment plan for all the eligible employees. The recognition for the gratuity plan is as below: The expected post-retirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The accumulated post-retirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company’s revenue recognition policy follows guidance from Accounting Standards Codification(“ASC”) 606, Revenue from contracts with customers. Revenue is recognized when the Company transfers promised goods and services to the customer and in the amount that reflects the consideration to which the Company expected to be entitled in exchange for those goods and services. The following five steps are applied in recognizing revenue from contracts: ● Identify the contract, or contract with the customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when or as the Company satisfies a performance obligation. The 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 products from which it generates its revenue they are “Duo Subscribe” and “Facetone.” Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis, as defined in the agreement and recognizes revenue after satisfying the performance obligations. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Company’s software products. Initial Annual Maintenance fees are bundled with license fees in the initial licensing period and recognized when the performance obligation of license fee is met. However, subsequent renewals of annual maintenance are charged separately for renewals. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the three months ended June 30, 2018 and 2017, the Company received only cash as consideration for sale of licenses and related services rendered. For the three months ended June 30, 2018 and 2017, the Company had the following concentrations of revenues with customers: Customer June 30, 2018 June 30, 2017 DEN Networks 51.33 % 51.88 % LOLC 26.17 % 0.00 % Mediatama 8.37 % 1.58 % Meghbela 3.74 % 2.90 % Topas TV 2.58 % 7.52 % Sri Lanka Telecom 2.29 % 1.29 % Commercial Bank 1.04 % 12.21 % Bank of Ceylon 1.07 % 8.49 % Development services 0.00 % 7.26 % Other misc. customers 3.41 % 6.87 % 100.00 % 100.00 % For the years ended June 30, 2018 and 2017, the Company had the following sales by products: Product June 30, 2018 June 30, 2017 Duo Subscriber $ 82,480 $ 138,342 Facetone 60,648 54,445 Software hosting and reselling 6,075 2,719 Development Services - 15,306 $ 149,203 $ 210,812 Significant Judgments The Company’s contract with customers includes multiple software products and services to deliver and in most of the contracts, the price of the separately identifiable features are stated separately. In the event the price of the multiple product and services are not mentioned in the agreement, the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The Company determines standalone selling price for performance obligations based on overall pricing strategies, which consider the market in which the Company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contracts with customers deferred revenue and accrued revenue/ unbilled accounts receivables recognized by the Company. Revenue under Software Implementation contracts are invoiced on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and the customer signs the user acceptance test (UAT). The Company invoices software license fees and royalty fees at the end of the period according to the customer agreement and accrued revenue/unbilled revenue recognized for the relevant period. The maintenance fee is invoiced beginning of the period and the Company recognizes as deferred revenue in the financial statements. The Company recognized $46,324 in revenue as at June 30, 2018 from the contract with LOLC as the performance obligations are completed in this year, and has a contract balance of $133,061 from the same customer as at June 30, 2018. The Company is waiting for the customer confirmation to deliver the balance of product and services. Refer to Note- 5 for “Accounts receivables and Provision for doubtful debts” Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at June 30, 2018. Cost of Revenue Cost of Revenue mainly includes purchases, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations, including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Company’s development and technical support staff, contractors’ fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally upon the completion of a working prototype that has no critical bugs and is a release candidate, development costs are capitalized until the product is ready for general release and are classified within “Intangibles assets” in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products’ current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the three months ended June 30, 2018 and 2017, product research and development cost of $67,102 and $$65,426, respectively, were capitalized as “Intangible assets.” Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the three months ended June 30, 2018 and 2017. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2015 through March 31, 2018, includes only foreign currency translation gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on June 30, 2018 and March 31, 2018, were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 38,779 Balance, June 30, 2018 $ 108,760 Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, September 2017 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10 and ASU 2016-12, ASU 2017-13 and ASU 2017-14, respectively (collectively, Topic 606). Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Topic 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates will be required within the revenue recognition process than are required under current GAAP (Accounting Standards Codification 605). Topic 606 is effective for the Company’s annual and interim reporting periods beginning January 1, 2018 (“effective date”). The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company adopted the new standard effective January 1, 2018 using the modified retrospective method. The Company has adopted implementation of ASC 606 with effect from April 1, 2018 as a result of it $0.21 million impact which was provided as at March 31, 2018 has been reversed. |
Reverse Recapitalization
Reverse Recapitalization | 3 Months Ended |
Jun. 30, 2018 | |
Reverse Recapitalization | |
Reverse Recapitalization | Note 4 – Reverse Recapitalization Duo (Successor) merged with DSSL (Predecessors) on December 3, 2014, and merged with DSS (Predecessors) on December 3, 2014 (Predecessors), and DSSL and DSS became the surviving corporations, in a transaction treated as a reverse recapitalization. Duo did not have any material operations and majority-voting control was transferred to DSSL. In the recapitalization, Duo issued 28,000,000 shares of common stock, 5,000,000 series “A” preferred shares and $310,000 in cash in exchange for all of DSSL’s 5,000,000 issued and outstanding shares of common stock. Duo also issued 2,000,000 shares of common stock in exchange for all of DSS’s 10,000 issued and outstanding shares of common stock. The transaction resulted in DSSL’s shareholder and DSS’s shareholder acquiring approximately 100% control. The transaction also required a recapitalization of DSSL and DSS. Since DSSL and DSS acquired a controlling voting interest, they were deemed the accounting acquirer, while Duo was deemed the legal acquirer. The historical financial statements of the Company are those of combined financial statements of DSSL & DSS and of the consolidated entities from the date of recapitalization and subsequent. Since the transaction is considered a reverse recapitalization, the presentation of pro-forma financial information was not required. All share and per share amounts have been retroactively restated to the earliest periods presented to reflect the transaction. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Note 5 – Accounts Receivable The following is a summary of accounts receivable as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Accounts receivable – Trade $ 606,818 $ 576,775 Less: Provision for doubtful debts (305,148 ) (207,543 ) $ 301,670 $ 369,232 As at June 30, 2018 and March 31, 2018, the Company had the following concentrations of accounts receivables with customers: Customer June 30, 2018 March 31, 2018 Megamedia 39.47 % 56.37 % Topas 17.73 % 14.83 % Commercial Bank 8.95 % 7.85 % LOLC 7.75 % 0.00 % DEN Networks 5.81 % 1.86 % Development Services 5.52 % 5.04 % Bank of Ceylon 5.24 % 4.61 % Meghbela 3.88 % 2.05 % Other receivables 5.63 % 7.39 % 100.00 % 100.00 % |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6 – Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Security deposits $ 67,441 $ 67,348 ESC receivable 9,378 5,688 OTCQB Annual Fee 9,000 - Prepayments 490 1,370 Supplier advance 134 136 Prepayment for other professional services - 438,598 Insurance prepayment - 1,160 Other receivables 7,888 8,700 $ 94,331 $ 523,000 During the year ended March 31, 2018, the Company has written off WHT receivables of $189,121 as the recoverability of the WHT asset is uncertain. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7– Property and Equipment The following table illustrates net book value of property and equipment as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Office equipment $ 2,015 $ 2,054 Furniture & fittings 136,136 138,752 Computer equipment (Data Processing Equipment) 119,595 122,443 Improvements to lease hold assets 20,821 21,221 Website Development 14,427 14,678 292,994 299,148 Accumulated depreciation and amortization (252,383 ) (255,654 ) Net fixed assets $ 40,611 $ 43,494 Depreciation and amortization expense for the three months ended June 30, 2018 and 2017 was $7,383 and $7,472, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 – Intangible assets Intangible assets are comprised of capitalization of certain costs pertaining to product development, which meets the criteria as set forth above under Note 3. The following table illustrates the movement in intangible assets as at June 30, 2018 and March 31, 2018: June 30, 2018 March 31, 2018 Opening Balance $ 732,939 $ 580,899 Add: Costs capitalized during the year 67,102 277,812 Less: Amount Written-off (19,536 ) (113,363 ) Translational gain (14,014 ) (12,409 ) Net Intangible Assets $ 766,491 $ 732,939 |
Short-term Borrowings
Short-term Borrowings | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Note 9 – Short-term borrowings The following is a summary of short-term borrowings as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 PAN Asia Bank – Short term overdraft $ 441,623 $ 440,609 PAN Asia Bank – Loan 134,914 162,636 Commercial bank 62,202 53,571 Senkadagala Finance 24,822 33,323 $ 663,561 $ 690,139 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 15.25% per annum up to $ 235,244 and 15.86% per annum up to $425,821. |
Due to Related Parties
Due to Related Parties | 3 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Due to Related Parties | Note 10 – Due to Related Parties Due to Related Parties – Short term From time to time, the Company receives advances from related parties such as management, directors or principal shareholders in the normal course of business. Loans and advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying consolidated financial statements. As of June 30, 2018 and March 31, 2018, the Company owed directors $563,219 and $524,955, 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. As of June 30, 2018 and March 31, 2018, the Company owed directors $1,344,464 and $1,348,193, respectively. |
Taxes Payables
Taxes Payables | 3 Months Ended |
Jun. 30, 2018 | |
Taxes Payable [Abstract] | |
Taxes Payables | Note 11 – Taxes Payable The taxes payable is comprised of items listed below as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 PAYE $ 127,295 $ 117,805 Stamp Duty Payable 29 34 Tax payable 4,774 8,877 $ 132,098 $ 126,716 |
Accruals and Other Payables
Accruals and Other Payables | 3 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accruals and Other Payables | Note 12 – Accruals and Other Payables The following is a summary of accruals and other payables as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Audit fee payable $ 17,005 $ 22,260 Accruals 17,215 29,128 Other payables 117,224 78,745 Accrued interest 4,762 1,417 $ 156,206 $ 131,550 |
Cost of Revenue
Cost of Revenue | 3 Months Ended |
Jun. 30, 2018 | |
Cost of Revenue [Abstract] | |
Cost of Revenue | Note 13 – Cost of Revenue The following is the summary of cost of revenue for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Purchases $ 9,613 $ 11,252 Implementation cost 9,986 9,202 Product development cost written off 19,536 27,384 Consultancy, contract basis employee cost - 6,825 Support services 20,519 17,206 Other external Services 25 3,250 Cost of development services 2,141 11,631 $ 61,820 $ 86,750 |
General and Administrative Expe
General and Administrative Expenses | 3 Months Ended |
Jun. 30, 2018 | |
General And Administrative Expenses | |
General and Administrative Expenses | Note 14 – General and Administrative Expenses The following is the summary of general and administrative expenses for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Directors remuneration $ 37,067 $ 38,123 EPF 8,902 11,078 ETF 2,226 2,769 Vehicle allowance 9,196 9,457 Office rent 14,256 18,701 Electricity charges 3,201 3,796 Office maintenance 3,032 2,987 Telephone charges 2,347 2,573 Audit fees 2,643 3,178 Staff welfare 1,955 3,907 Computer maintenance 1,446 1,726 Professional fees 1,290 5,010 Legal Fee 4,500 1,500 Internet charges 2,989 3,309 Irrecoverable tax 8,678 10,087 Software Rentals 4,469 7,526 Other professional services 2,373 2,244 OTC market Fees 3,000 - Transfer agent fees 2,175 450 Gratuity - 3,640 Printing and stationery 154 266 Office expenses 358 551 Courier and postage 238 84 Security charges 500 1,005 Insurance expense - 525 Travelling expense 560 776 Secretarial fees 169 186 Consulting Fee - 8,550 Penalties / Late payment charges 814 - Filling fee and subscription 395 2,860 Stamp duty expenses 6 493 Other expenses 173 1,212 $ 119,112 $ 148,569 |
Selling and Distribution Expens
Selling and Distribution Expenses | 3 Months Ended |
Jun. 30, 2018 | |
Selling And Distribution Expenses | |
Selling and Distribution Expenses | Note 15 – Selling and Distribution Expenses The following is the summery of selling and distribution expenses for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Vehicle hire charges $ 1,517 $ 1,560 Vehicle running expense 1,138 1,170 Travel expenses 29 - Marketing expenses - 325 $ 2,684 $ 3,055 |
Equity
Equity | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | Note 17 - Equity (A) Common Stock As at June 30, 2018, the Company had 400,000,000 authorized common shares having a par value of $0. 001. The ordinary shares have been designated with the following rights: ● Voting rights: ● Right to elect board of directors: ● Right to share income and assets: During the three months ended June 30, 2018, the Company issued following common shares: Date Type No. of Shares Valuation 06/30/2017 Stock issued as a Dividend payment 13,147,666 $ 5,784,973 $ 5,784,973 (B) Preferred Stock As at June 30, 2018, the Company had 10,000,000 authorized series “A” preferred shares having a par value of $0.001 per share. The preferred shares have been designated with the following conversion rights: ● One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18 - Commitments and Contingencies The Company consults with legal counsel on matters related to litigation and other experts both within and outside the Company with respect to matters in the ordinary course of business. The Company does not have any contingent liabilities in respect of legal claims arising in the ordinary course of business. Duo entered into a lease commitment for its Sri Lanka office amounting to $114,890 with Happy Building Management Company for a period of 3 years. Duo entered in to another lease commitment for its Indian office amounting to $1,189 on April 1, 2018 with Regus Office Center Services Pvt Limited for a period of 1 year. Guarantees provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 9,587 5/15/2013 Guarantee for Lanka Clear 2,014 7/31/2014 Guarantee for SLT 543 8/10/2015 Guarantee for LOLC 1,532 1/25/2018 Security deposit- Senkadagala Finance 47,871 5/23/2018 Rent deposit for Delhi apartment 1,480 $ 63,027 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19 - Subsequent Events On July 27, 2018, Duo World, Inc. filed an Amendment to its Certificate of Designation of its Series A Preferred Stock with the Secretary of State of Nevada. This amendment reduced the number of shares of Series A Preferred Stock from 10,000,000 to 5,000,000 and returned 5,000,000 treasury shares of Series A Preferred Stock to the status of authorized, but unissued, Preferred Stock, par value $0.001 per share. |
General
General | 3 Months Ended |
Jun. 30, 2018 | |
General | |
General | Note 20 - General Figures have been rounded off to the nearest dollar and the comparative figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated Financial Statements include the accounts and transactions of DSSL and DSS (Predecessors) and Duo (Successor). Duo World, Inc. is the parent company of its 100% subsidiaries, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS). Duo Software Pte. Limited is the parent company of its 100% subsidiary, Duo Software India (Private) Limited (India). All significant inter-company accounts and transactions have been eliminated in consolidation. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Making estimates and assumptions requires management to exercise significant judgment. It is least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-confirming events. Accordingly, the actual results could differ from those estimates and assumptions. The most significant estimates relate to the timing and amounts of revenue recognition, the recognition and disclosure of contingent liabilities and the collectability of accounts receivable. |
Risks and Uncertainties | Risks and Uncertainties The Company’s operations are subject to significant risk and uncertainties including financial, operational, competition and potential risk of business failure. Product revenues are concentrated in the application software industry, which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect operating results. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various high quality financial institutions and we monitor the credit ratings of those institutions. The Company’s sales are primarily to the companies located in Sri Lanka, Singapore, Indonesia and India. The Company performs ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. Accounts receivable are due principally from the companies under stated contract terms. |
Provisions | Provisions A provision is recognized when the Company has present obligations because of past events. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimates can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. |
Accounts Receivable and Provision for Doubtful Accounts | Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and has strong policies and procedures for the collection of receivables from its clients. However, there are inevitably occasions when the receivables due to the Company cannot be collected and, therefore, have to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is, therefore, made against the outstanding receivable to reflect that component that may not become collectable. The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2018 and March 31, 2018, there were no cash equivalents. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of the Company’s foreign subsidiaries are their local currencies. For financial reporting purposes, these currencies have been translated into United States Dollars ($) and/or USD as the reporting currency. All assets and liabilities denominated in foreign functional currencies are translated into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are translated at historical rates. Revenues, costs and expenses in foreign functional currencies are translated at the average rate of exchange during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders’ deficit as “accumulated other comprehensive income (loss).” Gains and losses resulting from foreign currency transactions are included in the statement of operations and comprehensive income /(loss) as other income (expense). |
Property and Equipment | Property and Equipment Fixed assets (including leasehold improvements) are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets. The estimated salvage value is considered as NIL. Amortization of leasehold improvements is computed utilizing the straight-line method over the estimated benefit period of the related assets, which may not exceed 15 years, or the lease term, if shorter. Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. In case of sale or disposal of an asset, the cost and related accumulated depreciation are removed from the consolidated financial statements. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost bases, which approximates their fair values because of the short-term nature of these instruments. |
Post Retirement Benefit Plan | Post Retirement Benefit Plan The Company has gratuity as it post-employment plan for all the eligible employees. The recognition for the gratuity plan is as below: The expected post-retirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The accumulated post-retirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. |
Revenue Recognition, Deferred & Accrued Revenue | Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company’s revenue recognition policy follows guidance from Accounting Standards Codification(“ASC”) 606, Revenue from contracts with customers. Revenue is recognized when the Company transfers promised goods and services to the customer and in the amount that reflects the consideration to which the Company expected to be entitled in exchange for those goods and services. The following five steps are applied in recognizing revenue from contracts: ● Identify the contract, or contract with the customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when or as the Company satisfies a performance obligation. The 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 products from which it generates its revenue they are “Duo Subscribe” and “Facetone.” Duo sells its software license along with software implementation and annual maintenance services under an agreement with various clients. The Company raises invoice on key milestone basis, as defined in the agreement and recognizes revenue after satisfying the performance obligations. Revenues from consulting and training services are typically recognized as the services are performed. The Company offers annual maintenance programs on its licenses that provide for technical support and updates to the Company’s software products. Initial Annual Maintenance fees are bundled with license fees in the initial licensing period and recognized when the performance obligation of license fee is met. However, subsequent renewals of annual maintenance are charged separately for renewals. Fair value for maintenance is based upon either renewal rates stated in the contracts or separate sales of renewals to customers. Revenue is recognized ratably, or daily, over the term of the maintenance period, which is typically one year. For the three months ended June 30, 2018 and 2017, the Company received only cash as consideration for sale of licenses and related services rendered. For the three months ended June 30, 2018 and 2017, the Company had the following concentrations of revenues with customers: Customer June 30, 2018 June 30, 2017 DEN Networks 51.33 % 51.88 % LOLC 26.17 % 0.00 % Mediatama 8.37 % 1.58 % Meghbela 3.74 % 2.90 % Topas TV 2.58 % 7.52 % Sri Lanka Telecom 2.29 % 1.29 % Commercial Bank 1.04 % 12.21 % Bank of Ceylon 1.07 % 8.49 % Development services 0.00 % 7.26 % Other misc. customers 3.41 % 6.87 % 100.00 % 100.00 % For the years ended June 30, 2018 and 2017, the Company had the following sales by products: Product June 30, 2018 June 30, 2017 Duo Subscriber $ 82,480 $ 138,342 Facetone 60,648 54,445 Software hosting and reselling 6,075 2,719 Development Services - 15,306 $ 149,203 $ 210,812 Significant Judgments The Company’s contract with customers includes multiple software products and services to deliver and in most of the contracts, the price of the separately identifiable features are stated separately. In the event the price of the multiple product and services are not mentioned in the agreement, the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The Company determines standalone selling price for performance obligations based on overall pricing strategies, which consider the market in which the Company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contracts with customers deferred revenue and accrued revenue/ unbilled accounts receivables recognized by the Company. Revenue under Software Implementation contracts are invoiced on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and the customer signs the user acceptance test (UAT). The Company invoices software license fees and royalty fees at the end of the period according to the customer agreement and accrued revenue/unbilled revenue recognized for the relevant period. The maintenance fee is invoiced beginning of the period and the Company recognizes as deferred revenue in the financial statements. The Company recognized $46,324 in revenue as at June 30, 2018 from the contract with LOLC as the performance obligations are completed in this year, and has a contract balance of $133,061 from the same customer as at June 30, 2018. The Company is waiting for the customer confirmation to deliver the balance of product and services. Refer to Note- 5 for “Accounts receivables and Provision for doubtful debts” Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at June 30, 2018. |
Cost of Revenue | Cost of Revenue Cost of Revenue mainly includes purchases, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations, including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. |
Product Research and Development | Product research and development Product research and development expenses consist primarily of salary and benefits for the Company’s development and technical support staff, contractors’ fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally upon the completion of a working prototype that has no critical bugs and is a release candidate, development costs are capitalized until the product is ready for general release and are classified within “Intangibles assets” in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products’ current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the three months ended June 30, 2018 and 2017, product research and development cost of $67,102 and $$65,426, respectively, were 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 June 30, 2018 and 2017. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Comprehensive Income | Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2015 through March 31, 2018, includes only foreign currency translation gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on June 30, 2018 and March 31, 2018, were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 38,779 Balance, June 30, 2018 $ 108,760 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, September 2017 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10 and ASU 2016-12, ASU 2017-13 and ASU 2017-14, respectively (collectively, Topic 606). Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Topic 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates will be required within the revenue recognition process than are required under current GAAP (Accounting Standards Codification 605). Topic 606 is effective for the Company’s annual and interim reporting periods beginning January 1, 2018 (“effective date”). The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company adopted the new standard effective January 1, 2018 using the modified retrospective method. The Company has adopted implementation of ASC 606 with effect from April 1, 2018 as a result of it $0.21 million impact which was provided as at March 31, 2018 has been reversed. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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 three months ended June 30, 2018 and 2017, the Company had the following concentrations of revenues with customers: Customer June 30, 2018 June 30, 2017 DEN Networks 51.33 % 51.88 % LOLC 26.17 % 0.00 % Mediatama 8.37 % 1.58 % Meghbela 3.74 % 2.90 % Topas TV 2.58 % 7.52 % Sri Lanka Telecom 2.29 % 1.29 % Commercial Bank 1.04 % 12.21 % Bank of Ceylon 1.07 % 8.49 % Development services 0.00 % 7.26 % Other misc. customers 3.41 % 6.87 % 100.00 % 100.00 % |
Schedule of Sales by Products | For the years ended June 30, 2018 and 2017, the Company had the following sales by products: Product June 30, 2018 June 30, 2017 Duo Subscriber $ 82,480 $ 138,342 Facetone 60,648 54,445 Software hosting and reselling 6,075 2,719 Development Services - 15,306 $ 149,203 $ 210,812 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) by Component during the periods ending on June 30, 2018 and March 31, 2018, were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2017 $ 112,761 Translation rate gain (loss) (42,780 ) Balance, March 31, 2018 $ 69,981 Translation rate gain (loss) 38,779 Balance, June 30, 2018 $ 108,760 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivables | The following is a summary of accounts receivable as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Accounts receivable – Trade $ 606,818 $ 576,775 Less: Provision for doubtful debts (305,148 ) (207,543 ) $ 301,670 $ 369,232 |
Schedule of Concentrations of Accounts Receivable | As at June 30, 2018 and March 31, 2018, the Company had the following concentrations of accounts receivables with customers: Customer June 30, 2018 March 31, 2018 Megamedia 39.47 % 56.37 % Topas 17.73 % 14.83 % Commercial Bank 8.95 % 7.85 % LOLC 7.75 % 0.00 % DEN Networks 5.81 % 1.86 % Development Services 5.52 % 5.04 % Bank of Ceylon 5.24 % 4.61 % Meghbela 3.88 % 2.05 % Other receivables 5.63 % 7.39 % 100.00 % 100.00 % |
Prepaid Expenses and Other Cu28
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | The following is a summary of prepaid expenses and other current assets as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Security deposits $ 67,441 $ 67,348 ESC receivable 9,378 5,688 OTCQB Annual Fee 9,000 - Prepayments 490 1,370 Supplier advance 134 136 Prepayment for other professional services - 438,598 Insurance prepayment - 1,160 Other receivables 7,888 8,700 $ 94,331 $ 523,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following table illustrates net book value of property and equipment as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Office equipment $ 2,015 $ 2,054 Furniture & fittings 136,136 138,752 Computer equipment (Data Processing Equipment) 119,595 122,443 Improvements to lease hold assets 20,821 21,221 Website Development 14,427 14,678 292,994 299,148 Accumulated depreciation and amortization (252,383 ) (255,654 ) Net fixed assets $ 40,611 $ 43,494 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table illustrates the movement in intangible assets as at June 30, 2018 and March 31, 2018: June 30, 2018 March 31, 2018 Opening Balance $ 732,939 $ 580,899 Add: Costs capitalized during the year 67,102 277,812 Less: Amount Written-off (19,536 ) (113,363 ) Translational gain (14,014 ) (12,409 ) Net Intangible Assets $ 766,491 $ 732,939 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Short-term Borrowings | The following is a summary of short-term borrowings as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 PAN Asia Bank – Short term overdraft $ 441,623 $ 440,609 PAN Asia Bank – Loan 134,914 162,636 Commercial bank 62,202 53,571 Senkadagala Finance 24,822 33,323 $ 663,561 $ 690,139 |
Taxes Payables (Tables)
Taxes Payables (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | The taxes payable is comprised of items listed below as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 PAYE $ 127,295 $ 117,805 Stamp Duty Payable 29 34 Tax payable 4,774 8,877 $ 132,098 $ 126,716 |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accruals and Other Payables | The following is a summary of accruals and other payables as at June 30, 2018 and March 31, 2018; June 30, 2018 March 31, 2018 Audit fee payable $ 17,005 $ 22,260 Accruals 17,215 29,128 Other payables 117,224 78,745 Accrued interest 4,762 1,417 $ 156,206 $ 131,550 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Cost of Revenue [Abstract] | |
Summary of Cost of Revenue | The following is the summary of cost of revenue for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Purchases $ 9,613 $ 11,252 Implementation cost 9,986 9,202 Product development cost written off 19,536 27,384 Consultancy, contract basis employee cost - 6,825 Support services 20,519 17,206 Other external Services 25 3,250 Cost of development services 2,141 11,631 $ 61,820 $ 86,750 |
General and Administrative Ex35
General and Administrative Expenses (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
General And Administrative Expenses | |
Schedule of General and Administrative Expenses | The following is the summary of general and administrative expenses for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Directors remuneration $ 37,067 $ 38,123 EPF 8,902 11,078 ETF 2,226 2,769 Vehicle allowance 9,196 9,457 Office rent 14,256 18,701 Electricity charges 3,201 3,796 Office maintenance 3,032 2,987 Telephone charges 2,347 2,573 Audit fees 2,643 3,178 Staff welfare 1,955 3,907 Computer maintenance 1,446 1,726 Professional fees 1,290 5,010 Legal Fee 4,500 1,500 Internet charges 2,989 3,309 Irrecoverable tax 8,678 10,087 Software Rentals 4,469 7,526 Other professional services 2,373 2,244 OTC market Fees 3,000 - Transfer agent fees 2,175 450 Gratuity - 3,640 Printing and stationery 154 266 Office expenses 358 551 Courier and postage 238 84 Security charges 500 1,005 Insurance expense - 525 Travelling expense 560 776 Secretarial fees 169 186 Consulting Fee - 8,550 Penalties / Late payment charges 814 - Filling fee and subscription 395 2,860 Stamp duty expenses 6 493 Other expenses 173 1,212 $ 119,112 $ 148,569 |
Selling and Distribution Expe36
Selling and Distribution Expenses (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Selling And Distribution Expenses | |
Schedule of Selling and Distribution Expenses | The following is the summery of selling and distribution expenses for the three months ending June 30, 2018 and 2017; June 30, 2018 June 30, 2017 Vehicle hire charges $ 1,517 $ 1,560 Vehicle running expense 1,138 1,170 Travel expenses 29 - Marketing expenses - 325 $ 2,684 $ 3,055 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Common Shares Issued | During the three months ended June 30, 2018, the Company issued following common shares: Date Type No. of Shares Valuation 06/30/2017 Stock issued as a Dividend payment 13,147,666 $ 5,784,973 $ 5,784,973 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantee Provided by Existed Company | Guarantees provided by the company existed on the balance sheet date are as follows: Date Description Amount 9/23/2011 Performance Bond for BOC Tender $ 9,587 5/15/2013 Guarantee for Lanka Clear 2,014 7/31/2014 Guarantee for SLT 543 8/10/2015 Guarantee for LOLC 1,532 1/25/2018 Security deposit- Senkadagala Finance 47,871 5/23/2018 Rent deposit for Delhi apartment 1,480 $ 63,027 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ 709,782 | $ 161,872 | |
Net cash provided by operating activities | 4,519 | $ 86,244 | |
Working capital deficit | 2,150,846 | $ 1,428,411 | |
Employee provident fund and employee trust fund | 410,089 | 388,630 | |
Stockholders' deficit | $ (2,843,855) | $ (2,164,332) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Cash equivalents | |||
Property, plant and equipment, depreciation methods | Straight-line method | ||
Estimated useful life | 15 years | ||
Revenue recognized from contract with customer | $ 149,203 | $ 210,812 | |
Deferred revenue | 14,074 | ||
Unbilled receivables | 122,561 | 148,714 | |
Product research and development cost | 67,102 | 65,426 | |
Advertising expense | |||
Changes in accumulated deficit | $ 210,000 | ||
LOLC [Member] | |||
Revenue recognized from contract with customer | 46,324 | ||
Contract balance | $ 133,061 | ||
Duo Software India (Private) Limited [Member] | |||
Ownership interest | 100.00% | ||
Duo Software (Pvt.) Limited and Duo Software Pte Limited [Member] | |||
Ownership interest | 100.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Provision for Doubtful Debts Based On Period Outstanding (Details) - Trade Receivables Outstanding [Member] | 3 Months Ended |
Jun. 30, 2018 | |
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 Accoun42
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Fixed Assets (Details) | 3 Months Ended |
Jun. 30, 2018 | |
Estimated useful Lives of property and equipment | 15 years |
Furniture & Fittings [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Improvements to Lease Hold Assets [Member] | |
Estimated useful Lives of property and equipment, description | Lease term |
Office Equipment [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Computer Equipment (Data Processing Equipment) [Member] | |
Estimated useful Lives of property and equipment | 3 years |
Website Development [Member] | |
Estimated useful Lives of property and equipment | 4 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Schedule of Concentrations of Revenue (Details) - Revenue [Member] | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Concentrations of revenue percentage | 100.00% | 100.00% |
DEN Networks [Member] | ||
Concentrations of revenue percentage | 51.33% | 51.88% |
LOLC [Member] | ||
Concentrations of revenue percentage | 26.17% | 0.00% |
Mediatama [Member] | ||
Concentrations of revenue percentage | 8.37% | 1.58% |
Meghbela [Member] | ||
Concentrations of revenue percentage | 3.74% | 2.90% |
Topas TV [Member] | ||
Concentrations of revenue percentage | 2.58% | 7.52% |
Sri Lanka Telecom [Member] | ||
Concentrations of revenue percentage | 2.29% | 1.29% |
Commercial Bank [Member] | ||
Concentrations of revenue percentage | 1.04% | 12.21% |
Bank of Ceylon [Member] | ||
Concentrations of revenue percentage | 1.07% | 8.49% |
Development Services [Member] | ||
Concentrations of revenue percentage | 0.00% | 7.26% |
Other Misc. customers [Member] | ||
Concentrations of revenue percentage | 3.41% | 6.87% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Schedule of Sales by Products (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 149,203 | $ 210,812 |
Duo Subscriber [Member] | ||
Revenue | 82,480 | 138,342 |
FaceTone [Member] | ||
Revenue | 60,648 | 54,445 |
Software Hosting and Reselling [Member] | ||
Revenue | 6,075 | 2,719 |
Development Services [Member] | ||
Revenue | $ 15,306 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | |||
Foreign Currency Translation gains (losses),beginning | $ 69,981 | $ 112,761 | $ 112,761 |
Translation rate gain (loss) | 38,779 | $ (5,962) | (42,780) |
Foreign Currency Translation gains (losses),ending | $ 108,760 | $ 69,981 |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details Narrative) - USD ($) | Dec. 03, 2014 | Jun. 30, 2018 | Mar. 31, 2018 |
Common stock, shares issued | 65,738,320 | 52,590,654 | |
Common stock, shares outstanding | 65,738,320 | 52,590,654 | |
Duo Software (Pvt.) Limited (DSSL) [Member] | |||
Cash consideration on exchange of DSSL's | $ 310,000 | ||
Common stock, shares issued | 5,000,000 | ||
Common stock, shares outstanding | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Series A Preferred Stock [Member] | |||
Number of stock issued during period, shares | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 28,000,000 | ||
Duo Software Pte Limited (DSS) [Member] | |||
Common stock, shares issued | 10,000 | ||
Common stock, shares outstanding | 10,000 | ||
Duo Software Pte Limited (DSS) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 2,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte Limited (DSS) [Member] | |||
Shareholder acquisition, percent | 100.00% |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivables (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable - Trade | $ 606,818 | $ 576,775 |
Less: Provision for doubtful debts | (305,148) | (207,543) |
Accounts receivable | $ 301,670 | $ 369,232 |
Accounts Receivable - Schedul48
Accounts Receivable - Schedule of Concentrations of Accounts Receivable (Details) - Accounts Receivable [Member] | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Mar. 31, 2018 | |
Concentrations of accounts receivable | 100.00% | 100.00% |
Megamedia [Member] | ||
Concentrations of accounts receivable | 39.47% | 56.37% |
Topas [Member] | ||
Concentrations of accounts receivable | 17.73% | 14.83% |
Commercial Bank [Member] | ||
Concentrations of accounts receivable | 8.95% | 7.85% |
LOLC [Member] | ||
Concentrations of accounts receivable | 7.75% | 0.00% |
DEN Networks [Member] | ||
Concentrations of accounts receivable | 5.81% | 1.86% |
Development Services [Member] | ||
Concentrations of accounts receivable | 5.52% | 5.04% |
Bank of Ceylon [Member] | ||
Concentrations of accounts receivable | 5.24% | 4.61% |
Meghbela [Member] | ||
Concentrations of accounts receivable | 3.88% | 2.05% |
Other Receivables [Member] | ||
Concentrations of accounts receivable | 5.63% | 7.39% |
Prepaid Expenses and Other Cu49
Prepaid Expenses and Other Current Assets (Details Narrative) | Mar. 31, 2018USD ($) |
Prepaid Expense and Other Assets, Current [Abstract] | |
Written off Withholding Tax receivables | $ 189,121 |
Prepaid Expenses and Other Cu50
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Security deposits | $ 67,441 | $ 67,348 |
ESC receivable | 9,378 | 5,688 |
OTCQB Annual Fee | 9,000 | |
Prepayments | 490 | 1,370 |
Supplier advance | 134 | 136 |
Prepayment for other professional services | 438,598 | |
Insurance prepayment | 1,160 | |
Other receivables | 7,888 | 8,700 |
Prepaid expenses and other current assets | $ 94,331 | $ 523,000 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 7,383 | $ 7,472 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Fixed assets gross | $ 292,994 | $ 299,148 |
Accumulated depreciation and amortization | (252,383) | (255,654) |
Net fixed assets | 40,611 | 43,494 |
Office Equipment [Member] | ||
Fixed assets gross | 2,015 | 2,054 |
Furniture & Fittings [Member] | ||
Fixed assets gross | 136,136 | 138,752 |
Computer Equipment (Data Processing Equipment) [Member] | ||
Fixed assets gross | 119,595 | 122,443 |
Improvements to Lease Hold Assets [Member] | ||
Fixed assets gross | 20,821 | 21,221 |
Website Development [Member] | ||
Fixed assets gross | $ 14,427 | $ 14,678 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Opening Balance | $ 732,939 | $ 580,899 |
Add: Costs capitalized during the period | 67,102 | 277,812 |
Less: Amount Written -off | (19,536) | (113,363) |
Translational gain | (14,014) | (12,409) |
Net Intangible Assets | $ 766,491 | $ 732,939 |
Short-term Borrowings (Details
Short-term Borrowings (Details Narrative) - Pan Asia Banking Corporation PLC [Member] - Maximum [Member] | Jun. 30, 2018USD ($) |
Interest Rate of 15.25% Per Annum [Member] | |
Bank overdraft facility interest rate | 15.25% |
Bank overdrafts | $ 235,244 |
Interest Rate of 15.86% Per Annum [Member] | |
Bank overdraft facility interest rate | 15.86% |
Bank overdrafts | $ 425,821 |
Short-term Borrowings - Summary
Short-term Borrowings - Summary of Short-term Borrowings (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Short Term Borrowings | $ 663,561 | $ 690,139 |
PAN Asia Bank - Short Term Overdraft [Member] | ||
Short Term Borrowings | 441,623 | 440,609 |
PAN Asia Bank - Loan [Member] | ||
Short Term Borrowings | 134,914 | 162,636 |
Commercial Bank [Member] | ||
Short Term Borrowings | 62,202 | 53,571 |
Senkadagala Finance [Member] | ||
Short Term Borrowings | $ 24,822 | $ 33,323 |
Due to Related Parties (Details
Due to Related Parties (Details Narrative) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Related Party Transactions [Abstract] | ||
Due to related parties, short term | $ 563,219 | $ 524,955 |
Due to related parties, long term | $ 1,344,464 | $ 1,348,193 |
Taxes Payables - Schedule of Ta
Taxes Payables - Schedule of Taxes Payable (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Taxes payable | $ 132,098 | $ 126,716 |
PAYE [Member] | ||
Taxes payable | 127,295 | 117,805 |
Stamp Duty Payable [Member] | ||
Taxes payable | 29 | 34 |
Tax Payable [Member] | ||
Taxes payable | $ 4,774 | $ 8,877 |
Accruals and Other Payables - S
Accruals and Other Payables - Schedule of Accruals and Other Payables (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Payables and Accruals [Abstract] | ||
Audit fee payable | $ 17,005 | $ 22,260 |
Accruals | 17,215 | 29,128 |
Other payables | 117,224 | 78,745 |
Accrued interest | 4,762 | 1,417 |
Accruals and other payables | $ 156,206 | $ 131,550 |
Cost of Revenue - Summary of Co
Cost of Revenue - Summary of Cost of Revenue (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cost of Revenue [Abstract] | ||
Purchases | $ 9,613 | $ 11,252 |
Implementation cost | 9,986 | 9,202 |
Product development cost written off | 19,536 | 27,384 |
Consultancy, contract basis employee cost | 6,825 | |
Support services | 20,519 | 17,206 |
Other external Services | 25 | 3,250 |
Cost of development services | 2,141 | 11,631 |
Cost of revenue | $ 61,820 | $ 86,750 |
General and Administrative Ex60
General and Administrative Expenses - Schedule of General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
General And Administrative Expenses | ||
Directors remuneration | $ 37,067 | $ 38,123 |
EPF | 8,902 | 11,078 |
ETF | 2,226 | 2,769 |
Vehicle allowance | 9,196 | 9,457 |
Office rent | 14,256 | 18,701 |
Electricity charges | 3,201 | 3,796 |
Office maintenance | 3,032 | 2,987 |
Telephone charges | 2,347 | 2,573 |
Audit fees | 2,643 | 3,178 |
Staff welfare | 1,955 | 3,907 |
Computer maintenance | 1,446 | 1,726 |
Professional fees | 1,290 | 5,010 |
Legal Fee | 4,500 | 1,500 |
Internet charges | 2,989 | 3,309 |
Irrecoverable tax | 8,678 | 10,087 |
Software Rentals | 4,469 | 7,526 |
Other professional services | 2,373 | 2,244 |
OTC market Fees | 3,000 | |
Transfer agent fees | 2,175 | 450 |
Gratuity | 3,640 | |
Printing and stationery | 154 | 266 |
Office expenses | 358 | 551 |
Courier and postage | 238 | 84 |
Security charges | 500 | 1,005 |
Insurance expense | 525 | |
Travelling expense | 560 | 776 |
Secretarial fees | 169 | 186 |
Consulting Fee | 8,550 | |
Penalties / Late payment charges | 814 | |
Filling fee and subscription | 395 | 2,860 |
Stamp duty expenses | 6 | 493 |
Other expenses | 173 | 1,212 |
General and administrative expenses | $ 119,112 | $ 148,569 |
Selling and Distribution Expe61
Selling and Distribution Expenses - Schedule of Selling and Distribution Expenses (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Selling And Distribution Expenses | ||
Vehicle hire charges | $ 1,517 | $ 1,560 |
Vehicle running expense | 1,138 | 1,170 |
Marketing Expenses | 29 | |
Travel expenses | 325 | |
Selling and distribution expenses | $ 2,684 | $ 3,055 |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Series "A" preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series "A" preferred stock, par value | $ 0.001 | $ 0.001 |
Number of preferred shares converted into common shares | 10 | |
Preferred stock conversion description | One preferred share will convert into ten (10) common shares no earlier than 24 months and 1 day after the issuance. |
Equity - Schedule of Common Sha
Equity - Schedule of Common Shares Issued (Details) | 3 Months Ended |
Jun. 30, 2018USD ($)shares | |
Value of common stock issued | $ 5,784,973 |
06/30/2017 [Member] | Stock Issued as a Dividend Payment [Member] | |
Number of common stock issued, shares | shares | 13,147,666 |
Value of common stock issued | $ 5,784,973 |
Commitments and Contingencies64
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Lease commitment amount | $ 14,256 | $ 18,701 |
Sri Lanka Office [Member] | Happy Building Management [Member] | ||
Lease commitment amount | $ 114,890 | |
Lease term | 3 years | |
Indian Office [Member] | Regus Office Center Services Pvt. Limited [Member] | April 1, 2018 [Member] | ||
Lease commitment amount | $ 1,189 | |
Lease term | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Guarantee Provided by Existed Company (Details) - USD ($) | May 23, 2018 | Jan. 25, 2018 | Aug. 10, 2015 | Jul. 31, 2014 | May 15, 2013 | Sep. 23, 2011 | Jun. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Guarantee Description | Rent deposit for Delhi apartment | Security deposit- Senkadagala Finance | Guarantee for LOLC | Guarantee for SLT | Guarantee for Lanka Clear | Performance Bond for BOC Tender | |
Guarantee Amount | $ 1,480 | $ 47,871 | $ 1,532 | $ 543 | $ 2,014 | $ 9,587 | $ 63,027 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - $ / shares | Jul. 27, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Number of preferred stock authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Series A Preferred Stock [Member] | Subsequent Event [Member] | |||
Number of preferred stock authorized | 10,000,000 | ||
Reduction in preferred stock | 5,000,000 | ||
Treasury shares, authorized | 5,000,000 | ||
Preferred stock, par value | $ 0.001 |