Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 29, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | DUO WORLD INC | ||
Entity Central Index Key | 0001635136 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issue | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,056,680 | ||
Entity Common Stock, Shares Outstanding | 67,754,296 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 21,571 | $ 50,703 |
Accounts receivable - trade | 135,872 | 304,221 |
Prepaid expenses and other current assets | 24,723 | 30,537 |
Accrued revenue | 1,076 | 17,886 |
Total Current Assets | 183,242 | 403,347 |
Non Current Assets | ||
Property and equipment, net of accumulated depreciation of $220,918 and $226,487 respectively | 8,974 | 15,915 |
Intangible assets, net | 428,070 | 644,586 |
Lease right to use asset | 10,330 | |
Total Non Current Assets | 437,044 | 670,831 |
Total Assets | 620,286 | 1,074,178 |
Current Liabilities | ||
Accounts payable | 541,766 | 530,872 |
Payroll, employee benefits, severance | 530,394 | 577,513 |
Short term borrowings | 430,993 | 461,950 |
Due to related parties | 1,063,397 | 921,728 |
Payable for acquisition | 185,762 | 185,762 |
Taxes payable | 165,924 | 163,049 |
Accruals and other payables | 88,380 | 68,800 |
Lease creditors | 2,697 | |
Deferred revenue | 2,898 | 55,684 |
Total Current liabilities | 3,009,514 | 2,968,055 |
Long Term Liabilities | ||
Due to related parties | 1,345,915 | 1,349,675 |
Employee benefit obligation | 30,039 | 73,111 |
Long term loan | 13,916 | |
Operating lease | 10,333 | |
Total Long Term liabilities | 1,389,870 | 1,433,119 |
Total liabilities | 4,399,384 | 4,401,174 |
Commitments and contingencies (Note 18) | ||
Shareholders' Deficit | ||
Ordinary shares: $0.001 par value per share; 400,000,000 shares authorized; 67,754,296 and 67,754,296 shares issued and outstanding, respectively | 67,754 | 67,754 |
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 | 11,641,336 | 11,641,336 |
Accumulated deficit | (16,041,727) | (15,508,871) |
Accumulated other comprehensive income | 548,539 | 467,785 |
Total shareholders' deficit | (3,779,098) | (3,326,996) |
Total Liabilities and Shareholders' Deficit | $ 620,286 | $ 1,074,178 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, property and equipment | $ 220,918 | $ 226,487 |
Ordinary stock, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 400,000,000 | 400,000,000 |
Ordinary stock, shares issued | 67,754,296 | 67,754,296 |
Ordinary stock, shares outstanding | 67,754,296 | 67,754,296 |
Convertible series "A" preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible series "A" preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible series "A" preferred stock, shares issued | 5,000,000 | 5,000,000 |
Convertible series "A" preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 346,478 | $ 771,905 |
Cost of revenue (exclusive of depreciation presented below) | (285,805) | (255,387) |
Gross Income | 60,673 | 516,518 |
Operating Expenses | ||
General and administrative | 275,057 | 378,561 |
Salaries and casual wages | 70,813 | 124,979 |
Selling and distribution | 4,884 | 7,673 |
Depreciation | 3,108 | 15,863 |
Amortization of web site development | 3,342 | 2,067 |
Allowance for bad debts | 34,192 | 30,039 |
Total operating expenses | 391,396 | 559,182 |
Loss from operations | (330,723) | (42,664) |
Other income (expenses): | ||
Interest expense | (162,903) | (189,026) |
Gain on disposals of property and equipment | 575 | |
Other income | 9,137 | 5,377 |
Bank charges | (2,401) | (3,781) |
Exchange (loss) / gain | (11,515) | (89,544) |
Total other income (expenses) | (167,682) | (276,398) |
Loss before provision for income taxes: | (498,405) | (319,062) |
Tax Expense : | ||
Provision for income taxes | ||
Foreign taxes - withheld | (34,451) | (54,268) |
Net loss | $ (532,856) | $ (373,330) |
Basic and Diluted Loss per Share | $ 0 | $ 0 |
Basic and Diluted Weighted Average Number of Shares Outstanding | 117,754,296 | 116,737,903 |
Comprehensive Income (Loss): | ||
Unrealized foreign currency translation (loss) gain | $ 80,754 | $ 201,550 |
Net loss | (532,856) | (373,330) |
Comprehensive loss | $ (452,101) | $ (171,780) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Deficit - USD ($) | Common Share Capital [Member] | Preferred Share Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2019 | $ 65,754 | $ 5,000 | $ 11,543,336 | $ (15,163,357) | $ 266,235 | $ (3,283,032) |
Balance, shares at Mar. 31, 2019 | 65,754,296 | 5,000,000 | ||||
Stock issued | $ 2,000 | 98,000 | 100,000 | |||
Stock issued, shares | 2,000,000 | |||||
Net loss | (373,330) | (373,330) | ||||
Other comprehensive income | 201,550 | 201,550 | ||||
Prior period adjustments | 27,819 | 27,819 | ||||
Adjustment on operating lease | (2) | (2) | ||||
Balance at Mar. 31, 2020 | $ 67,754 | $ 5,000 | 11,641,336 | (15,508,871) | 467,785 | (3,326,996) |
Balance, shares at Mar. 31, 2020 | 67,754,296 | 5,000,000 | ||||
Net loss | (532,856) | (532,856) | ||||
Other comprehensive income | 80,754 | 80,754 | ||||
Balance at Mar. 31, 2021 | $ 67,754 | $ 5,000 | $ 11,641,336 | $ (16,041,727) | $ 548,539 | $ (3,779,098) |
Balance, shares at Mar. 31, 2021 | 67,754,296 | 5,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Loss before provision for income taxes | $ (532,856) | $ (373,330) |
Adjustments to reconcile loss before provision for income taxes to cash provided by operating activities: | ||
Depreciation and amortization | 6,450 | 17,930 |
Bad debts | 34,192 | 30,039 |
Gain on disposals of property and equipment | (575) | |
Previous period adjustments | 27,819 | |
Product development cost written off | 206,433 | 95,990 |
Changes in assets and liabilities: | ||
Accounts receivable - trade | 134,156 | (209,215) |
Prepayments | 22,624 | 136,710 |
Accounts Payable | 10,895 | 41,790 |
Payroll, employee benefits, severance | (47,119) | (59,124) |
Short term overdraft | (30,958) | (69,725) |
Due to related parties | 141,669 | 96,737 |
Taxes payable | 2,875 | 5,879 |
Lease Creditor | (2,697) | (8,224) |
Retirement Benefit | (43,072) | (31,589) |
Accruals and other payables | (33,205) | 45,814 |
Net cash provided by operating activities | (130,613) | (251,924) |
Investing activities: | ||
Acquisition of property and equipment | (11,459) | |
Sale proceeds of disposal of property and equipment | 1,989 | |
Intangible assets | (12,657) | (43,897) |
Net cash used in investing activities | (12,657) | (53,368) |
Financing activities: | ||
Proceeds from issuance of common Stock | 100,000 | |
Long term loan | 13,916 | |
Net cash provided by financing activities | 13,916 | 100,000 |
Effect of exchange rate changes on cash | 100,222 | 253,297 |
Net decrease in cash | (29,132) | 48,005 |
Cash, beginning of period | 50,703 | 2,698 |
Cash, end of period | 21,571 | 50,703 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 56,057 | 80,111 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common shares issued for services |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Duo World Inc. (hereinafter referred to as “Successor” or “Duo”), a reporting company since September 26, 2016, was organized under the laws of the state of Nevada on September 19, 2014. Duo Software (Pvt.) Limited (hereinafter referred to as “DSSL” or “Predecessor”), a company based in Sri Lanka, was incorporated on September 22, 2004 in the Democratic Socialist Republic of Sri Lanka, as a limited liability company. Duo Software (Pte.) Limited (hereinafter referred to as “DSS” or “Predecessor”), a Singapore based company, was incorporated on June 5, 2007 in the Republic of Singapore as a limited liability company. DSS also includes its wholly-owned subsidiary, Duo Software India (Private) Limited (India), which was incorporated on August 30, 2007, under the laws of India. The financial statements of Duo Software India (Private) Limited prepared under realization concept and the management has a plan to wind up the Company and application is made to strike off. On December 3, 2014, Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte. Limited (DSS) executed a reverse recapitalization with Duo World Inc. (Duo). See Note 4 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Mar. 31, 2021 | |
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 to continue as a going concern. As reflected in the accompanying consolidated financial statements, the Company had a net loss of $532,856 and $373,330 for the year ended March 31, 2021 and 2020, respectively; net cash provided by operations of $(130,613) and $(251,924) for the year ended March 31, 2021 and 2020, respectively; working capital deficit of $2,826,272 and $2,564,709 as of March 31, 2021 and March 31, 2020, respectively; outstanding statutory dues towards employee provident fund and employee trust fund of $373,142 and $409,413 as of March 31, 2021 and March 31, 2020, respectively; and a stockholders´ deficit of $3,779,098 and $3,326,996 as of March 31, 2021 and March 31, 2020, respectively. The Company has its plan to increase the revenue from its cloud products and recover the current losses. And also, the Company has evaluated its costs and reduced none core expenses. Staff costs, rent costs, office expenses were reduced as a result. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
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 event and when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and has strong policies and procedures for the collection of receivables from its clients. However, there are inevitably occasions when the receivables due to the Company cannot be collected and, therefore, have to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is, therefore, made against the outstanding receivable to reflect that component that may not become collectable. The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of March 31, 2021 and March 31, 2020, 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 converted into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are converted at historical rates. Revenues, costs and expenses in foreign functional currencies are converted at the average rate of exchange during the period. Conversion adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders’ deficit as “accumulated other comprehensive income (loss).” Gains and losses resulting from foreign currency 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 and the profit or loss arising from the sale shall be recognized. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Post Retirement Benefit Plan The Company has gratuity as it post employment plan for all the eligible employees. The recognition for the gratuity plan is as below: The expected postretirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The accumulated postretirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the Company expected to be entitled in exchange for those goods and services. The following five steps are followed in recognizing revenue from contracts: ● Identify the contract(s) with a customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract and; ● Recognize revenue when or as the company satisfies a performance obligation. The consideration for the transaction [performance obligation(s)] is determined as per the agreement, contract or invoice for the services and products. Duo Subscribe Duo Subscribe is a solution for Subscriber Management and Billing. With over a decade of experience in developing applications for these sectors and having vast amount of domain knowledge on how these sectors operate, Duo Subscribe is eminently capable of meeting the complex and rigorous demands of businesses around the world. Facetone ‘Facetone’ is a communication and collaboration platform, which provides users the capability of operating and running a high performance contact center operation efficiently while saving cost and maximizing revenue opportunities. In-built Facetone CRM feature provides the opportunity for contact centers to deliver a superior customer experience and build a better relationship by linking customers and data in real time. Smoothflow Smoothflow automates customer engagements, including building ChatBots, VoiceBots and IoTBots to deliver an Omni channel customer service experience. The product uses the power of artificial intelligence to keep improving the conversational flow and user experience. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on premise software Enterprise software solutions Cloud services AMC Services For the period ended March 31, 2021 and 2020, the Company received only cash as consideration for sale of licenses and related services and not in kind. For the years ended March 31, 2021 and 2020, the Company had following concentrations of revenues with customers: Customer March 31, 2021 March 31, 2020 A 74.04 % 69.05 % B 8.56 % 2.14 % C 6.52 % 16.66 % D 4.74 % 5.79 % E 3.78 % 2.10 % Other Misc. customers 2.36 % 4.26 % 100.00 % 100.00 % For the years ended March 31, 2021 and 2020, the Company had following sales by products: Product March 31, 2021 March 31, 2020 Duo Subscriber $ 286,216 $ 558,169 Facetone 44,115 191,233 Software hosting and reselling 16,147 19,974 Smoothflow - 2,529 $ 346,478 $ 771,905 During the year three customers terminated their contracts with the Company, and the revenue loss from the termination expected to be 82%. 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 products and services are not mentioned in the agreement, the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The Company determines standalone selling price for performance obligations based on overall pricing strategies, which consider market in which the company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contract with customers, deferred revenue and accrued revenue/ unbilled accounts receivables are recognized by the Company. We record a receivable when revenue is recognized prior to invoicing and receipt of payments, or deferred revenue when the revenue is recognized subsequent to invoicing. Revenue under Software Implementation contracts are invoiced on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and customer signs the user acceptance test (UAT). The Company invoices software license fee and royalty fee at the end of the period according to the customer agreement and accrued revenue/ unbilled revenue is recognized for the relevant period. The initial annual maintenance fee is bundled with the initial license fee and is invoiced at beginning of the period and the Company recognizes as deferred revenue in the financial statements and is ratably recognized over a period of service. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Refer Note- 5 for “Accounts receivables and Provision for doubtful debts” Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s executive reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. Deferred Revenue - Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at March 31, 2021. Cost of Revenue Cost of revenue mainly includes cost for server space, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations, including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. Product research and development Product research and development expenses consist primarily of salary and benefits for the Company’s development and technical support staff, contractors’ fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally upon the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within “Intangibles assets” in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products’ current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the year ended March 31, 2021 and 2020, product research and development cost of $12,657 and $43,897, respectively, were capitalized as “Intangible assets.” Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the period ended March 31, 2021 and 2020. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets and liabilities are not recognized in the current financials due to recurring tax losses and the uncertainty of the realization of the tax allowances. Withholding taxes deducted from the source of income from foreign operations are debited to profit and loss account due to non-refundable status. Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2015 through March 31, 2021, includes only foreign currency conversion gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the period ending on March 31, 2021 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2019 $ 266,235 Translation rate gain (loss) 201,550 Balance, March 31, 2020 $ 467,785 Translation rate gain (loss) 80,754 Balance, March 31, 2021 $ 548,539 Leases Lessor There are no significant changes in recognizing the Lessor under ASC 842 compared to the previous model. Changes were made to the accounting guidance of lessor and lessee, and the key aspects of the introduced model is to align the recognition criteria with new revenue recognition standard ASC 606. Under the new guidance, contract consideration is allocated to its lease components and non-lease components (such as maintenance). For the Company as a lessor, non-lease components of the contract will be accounted under ASC Topic 606, Revenue from Contracts with Customers, unless the Company elects a lessor practical expedient to not separate the non-lease components from the associated lease component. The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. To elect the practical expedient, the timing and pattern of transfer of the lease and non-lease components must be the same and the lease component must meet the criteria to be classified as an operating lease. If these criteria’s are met, the single component can be accounted either ASC 842 or ASC 606, depending on the predominant component(s). The lessor practical expedient to not separate non-lease components from the associated component must be elected for all existing and new leases. As lessor, the Company expects that post-adoption substantially all existing leases will have no change in the timing of revenue recognition until their expiration or termination. The Company expects to elect the lessor’s practical expedient to not separate non-lease components such as maintenance from the associated lease for all existing and new leases and to account for the combined component as a single lease component. The timing of revenue recognition is expected to be the same for the majority of the Company’s new leases as compared to similar existing leases; however, certain categories of new leases could have different revenue recognition patterns as compared to similar existing leases. For the leases that are accounted as operating leases, income is recognized on a straight-line basis over the term of the lease contract. Generally, when a lease is more than 180 days delinquent (where more than three monthly payments are owed), the lease is classified as being on nonaccrual and the Company has to stops recognizing leasing income on that date. Payments received from leases in nonaccrual status generally reduce the lease receivable. Leases on nonaccrual status remain classified as such until there is sustained payment performance that, in the Company’s judgment, would indicate that all contractual amounts will be collected in full. Lessee The Company adopted ASU 2016-02 effective April 1, 2019 using the modified retrospective approach. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. In connection with the adoption, the Company will elect to utilize the modified retrospective presentation whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, the Company will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company will adopt a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without considering the deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Newly issued ASUs not listed below are expected to have no impact on the Company’s consolidated financial position and results of operations, because either the ASU is not applicable, or the impact is expected to be immaterial. The Company has reviewed the recent accounting pronouncements and believes that they will not have material impact on the Company’s financial position and results of operations. Not yet adopted Disclosures: Collaborative Arrangement Intangibles-Goodwill and Other-Internal-Use Software : |
Reverse Recapitalization
Reverse Recapitalization | 12 Months Ended |
Mar. 31, 2021 | |
Reverse Recapitalization | |
Reverse Recapitalization | Note 4 – Reverse Recapitalization Duo (Successor) merged with DSSL (Predecessors) on December 3, 2014, and merged with DSS (Predecessors) on December 3, 2014 (Predecessors), and DSSL and DSS became the surviving corporations, in a transaction treated as a reverse recapitalization. Duo did not have any material operations and majority-voting control was transferred to DSSL. In the recapitalization, Duo issued 28,000,000 shares of common stock, 5,000,000 series “A” preferred shares and $310,000 in cash in exchange for all of DSSL’s 5,000,000 issued and outstanding shares of common stock. Duo also issued 2,000,000 shares of common stock in exchange for all of DSS’s 10,000 issued and outstanding shares of common stock. The transaction resulted in DSSL’s shareholder and DSS’s shareholder acquiring approximately 100% control. The transaction also required a recapitalization of DSSL and DSS. Since DSSL and DSS acquired a controlling voting interest, they were deemed the accounting acquirer, while Duo was deemed the legal acquirer. The historical financial statements of the Company are those of combined financial statements of DSSL and DSS and of the consolidated entities from the date of recapitalization and subsequent. Since the transaction is considered a reverse recapitalization, the presentation of pro-forma financial information was not required. All share and per share amounts have been retroactively restated to the earliest periods presented to reflect the transaction. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | Note 5 – Accounts Receivable Following is a summary of accounts receivable as at March 31, 2021 and March 31, 2020: March 31, 2021 March 31, 2020 Accounts receivable – Trade $ 213,452 $ 355,512 Less: Provision for doubtful debts (77,580 ) (51,291 ) $ 135,872 $ 304,221 At March 31, 2021 and March 31, 2020, the Company had following concentrations of accounts receivable with customers: Customer March 31, 2021 March 31, 2020 A 89.64 % 50.25 % B 3.46 % 5.44 % C 3.02 % 1.67 % D 0.00 % 37.54 % E 0.00 % 2.66 % Other receivables 3.88 % 2.44 % 100.00 % 100.00 % |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6 – Prepaid Expenses and Other Current Assets Following is a summary of prepaid expenses and other current assets as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Security deposits $ 17,509 $ 18,758 Supplier advance 5,411 5,416 Prepayments 1,646 614 ESC receivable - 4,666 Prepayment for other professional services - 1,083 Other receivables 157 - $ 24,723 $ 30,537 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7 – Property and Equipment Following table illustrates net book value of property and equipment as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Office equipment $ 1,597 $ 1,685 Furniture & fittings 107,177 113,046 Computer equipment (data processing equipment) 81,749 86,226 Improvements to lease hold assets 16,506 17,410 Website development 22,862 24,035 229,891 242,402 Accumulated depreciation and amortization (220,918 ) -226,487 Net fixed assets $ 8,974 $ 15,915 Depreciation and amortization expense for period ended March 31, 2021 and 2020 was $6,450 and $17,930, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 – Intangible Assets Intangible assets comprise of capitalization of certain costs pertaining to product development, which meet the criteria as set forth above under Note 3. Following table illustrates the movement in intangible assets as at March 31, 2020 and March 31, 2019: March 31, 2021 March 31, 2020 Opening balance $ 644,586 $ 746,158 Add: Costs capitalized during the year 12,657 43,897 Less: Amount written-off (206,433 ) (95,990 ) Translational gain/ (loss) (22,740 ) (49,479 ) Net Intangible Assets $ 428,070 $ 644,586 As at March 31, 2021 intangible assets of $129,337 was written off, as the management decided to discontinue the product Digin. |
Short Term Borrowings
Short Term Borrowings | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | Note 9 – Short Term Borrowings Following is a summary of short-term borrowings as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 PAN Asia Bank – short term overdraft $ 372,291 $ 398,361 PAN Asia Bank – loan 56,214 59,292 Commercial Bank 2,488 4,297 $ 430,993 $ 461,950 Bank overdraft facility, obtained from Pan Asia Banking Corporation PLC, contains an interest rate of 9% per annum for $106,265, 11.25% per annum for $110,819 and 12.75% per annum for $149,782 and 28% for above 366,866. |
Due to Related Parties
Due to Related Parties | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Due to Related Parties | Note 10 – Due to Related Parties Due to Related Parties – Short term From time to time, the Company receives advances from related parties such as officers, directors or principal shareholders in the normal course of business. Advances received from related parties are unsecured and non-interest bearing. Balances outstanding to these persons for less than 12 months are presented under current liabilities in the accompanying consolidated financial statements. As of March 31, 2021, and March 31, 2020 the Company owed directors $1,063,397 and $921,728, respectively. Due to Related Parties – Long term Loans outstanding to related parties for more than 12 months are presented under long-term liabilities in the accompanying consolidated financial statements. As of March 31, 2021 and March 31, 2020, the Company owed directors $1,345,915 and $1,349,675, respectively. |
Taxes Payables
Taxes Payables | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Taxes Payables | Note 11 – Taxes Payable Taxes payable are comprised of items listed below as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 PAYE $ 162,546 $ 159,483 WHT payable 3,373 3,557 Stamp duty payable 5 9 $ 165,924 $ 163,049 |
Accruals and Other Payables
Accruals and Other Payables | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accruals and Other Payables | Note 12 – Accruals and Other Payables Following is a summary of accruals and other payables as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Accruals $ 60,242 $ 43,826 Other payables 17,000 18,015 Accrued interest 8,763 5,209 Audit fee payable 2,375 1,750 $ 88,380 $ 68,800 |
Cost of Revenue
Cost of Revenue | 12 Months Ended |
Mar. 31, 2021 | |
Cost of Revenue [Abstract] | |
Cost of Revenue | Note 13 – Cost of Revenue Following is the summary of cost of revenue for the period ending March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Product development cost written off $ 206,433 $ 95,990 Developer support and implementation 53,381 78,927 Purchases 13,864 15,050 Implementation and onsite support cost 9,095 58,935 Consultancy, contract basis employee cost 1,524 5,514 Cost of services 1,508 971 $ 285,805 $ 255,387 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Mar. 31, 2021 | |
General And Administrative Expenses | |
General and Administrative Expenses | Note 14 – General and Administrative Expenses Following is the summary of general and administrative expenses for the period ending March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Directors remuneration 120,055 129,323 Audit fees 25,583 25,809 Consulting fee 16,971 21,113 OTC market fees 12,998 11,917 Other professional services 12,599 5,971 Penalties / late payment charges 12,560 14,530 Secretarial fees 9,859 701 Lease expense 9,738 17,503 Legal fees 9,000 18,192 Vehicle allowance 8,940 14,727 Gratuity 8,800 7,223 EPF 7,974 9,089 Internet charges 4,563 7,844 Telephone charges 4,037 5,830 ETF 1,994 2,272 Professional fees 1,830 14,958 Office rent 1,630 2,242 Electricity charges 1,204 4,962 Fee and subscription 861 1,670 Office maintenance 817 3,945 Software rentals 798 809 Other expenses 678 2,113 Computer maintenance 370 1,183 Stamp duty expense 342 40 Public relations 329 658 Staff welfare 231 3,063 Courier and postage 204 586 Printing and stationery 92 315 Impairment allowance on receivables - 25,034 Accounts write- off - 13,705 Investor facilitator fee - 9,994 Irrecoverable Tax - 1,150 Insurance expense - 90 275,057 378,561 |
Selling and Distribution Expens
Selling and Distribution Expenses | 12 Months Ended |
Mar. 31, 2021 | |
Selling And Distribution Expenses | |
Selling and Distribution Expenses | Note 15 – Selling and Distribution Expenses Following is the summary of selling and distribution expenses for the period ending on March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Vehicle hire charges $ 4,270 $ 5,292 Vehicle running expenses 533 1,922 Marketing expenses 81 459 $ 4,884 $ 7,673 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 – Income Taxes Income Tax expense consists of the following: March 31, 2021 March 31, 2020 Current taxes Nevada $ - $ - Sri Lanka- taxes withheld 34,451 54,268 Singapore - - Total Income tax expense $ 34,451 $ 54,268 The income tax provision differs from the amount of tax determined by applying the federal statutory rate on account of the following items; ● Brought forward losses ● Unabsorbed depreciation The components of deferred tax assets and liabilities are as follows: March 31, 2021 March 31, 2020 Deferred tax asset arising from tax effect of : Carry forward losses and unabsorbed depreciation - - Less: Valuation allowance - - Total deferred tax asset (non-current) - - Total deferred tax liability Nil Nil Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Since Duo does not have any undistributed earnings, the Company has not recorded a deferred tax liability associated with the foreign earnings as of March 31, 2021 and 2020. The Company is not subject to any foreign income taxes for the years ended March 31, 2021 and 2020. The Company may be subject to examination by the Internal Revenue Service (“IRS”) and state taxing authorities for 2021 and 2022 tax years. |
Equity
Equity | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | Note 17 – Equity (A) Common Stock As at March 31, 2021, the Company had 400,000,000 authorized common shares having a par value of $0. 001. The common shares have been designated with the following rights: ● Voting rights: ● Right to elect board of directors: ● Right to share income and assets: (B) Preferred Stock As at March 31, 2021, 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. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 18 – Leases The Company’s short-term leases primarily consist of office spaces with the lease term less than or equal to 12 months. The total short- term lease expenses and cash paid for the year ended March 31, 2021 and March 31, 2020 are $1,630 and $2,242, respectively. The Company has no operating leases as at March 31, 2021. As per ASC 842, the Company has created a right of use lease asset of $ 10,330 and right of use liability of $ 10,333 as at March 31, 2020. The following costs are related to the operating lease of the Company for the year ended March 31, 2020: March 31, 2021 March 31, 2020 Components of total lease cost: Operating lease expense - 17,503 Total lease cost - 17,503 Cash Flows The following cash flow information is related to the operating lease of the Company for the year ended March 31, 2020: March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases - 17,503 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 19 - 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. Guarantee provided by the Company existed on the balance sheet date are as follows: Date Description Amount 7/31/2014 Guarantee for SLT $ 430 8/10/2015 Guarantee for LOLC 1,214 7/18/2018 Guarantee for Amana bank 482 9/10/2018 Guarantee for ICTA 1,518 10/9/2018 Rent deposit for office space 8,349 10/9/2019 Guarantee for BOC 1,847 10/14/2019 Security deposit for CEB 759 10/21/2019 Security deposit for CEB 304 11/18/2020 Guarantee for HDFC bank 127 $ 15,030 The Company has not provided any guarantees other than those mentioned above. |
General
General | 12 Months Ended |
Mar. 31, 2021 | |
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 Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
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 event and when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. |
Accounts Receivable and Provision for Doubtful Accounts | Accounts Receivable and Provision for Doubtful Accounts The Company recognizes accounts receivable in connection with the products sold and services provided and has strong policies and procedures for the collection of receivables from its clients. However, there are inevitably occasions when the receivables due to the Company cannot be collected and, therefore, have to be written off as bad debts. While the debt collection process is being pursued, an assessment is made of the likelihood of the receivable being collectable. A provision is, therefore, made against the outstanding receivable to reflect that component that may not become collectable. The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of March 31, 2021 and March 31, 2020, 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 converted into U.S. dollars at the closing exchange rate on the balance sheet date and equity balances are converted at historical rates. Revenues, costs and expenses in foreign functional currencies are converted at the average rate of exchange during the period. Conversion adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders’ deficit as “accumulated other comprehensive income (loss).” Gains and losses resulting from foreign currency 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 and the profit or loss arising from the sale shall be recognized. Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. |
Post Retirement Benefit Plan | Post Retirement Benefit Plan The Company has gratuity as it post employment plan for all the eligible employees. The recognition for the gratuity plan is as below: The expected postretirement benefit obligation (“EPBO”) is the actuarial present value (“APV”) as of a specific date of the benefits expected to be paid to the employee, beneficiaries, and covered dependents. Measurement of the EPBO is based on the following: 1. Expected amount and timing of future benefits 2. Expected future costs 3. Extent of cost sharing The EPBO includes an assumed salary progression for a pay-related plan. Future compensation levels represent the best estimate after considering the individual employees involved, general price levels, seniority, productivity, promotions, indirect effects, and the like. The accumulated postretirement benefit obligation (“APBO”) is the APV as of a specific date of all future benefits attributable to service by an employee to that date. It represents the portion of the EPBO earned to date. After full eligibility is attained, the APBO equals the EPBO. The APBO also includes an assumed salary progression for a pay-related plan. |
Revenue Recognition, Deferred & Accrued Revenue | Revenue Recognition, Deferred & Accrued Revenue The Company recognizes revenue from the sale of software licenses and related services. The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the Company expected to be entitled in exchange for those goods and services. The following five steps are followed in recognizing revenue from contracts: ● Identify the contract(s) with a customer; ● Identify the performance obligation of the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract and; ● Recognize revenue when or as the company satisfies a performance obligation. The consideration for the transaction [performance obligation(s)] is determined as per the agreement, contract or invoice for the services and products. Duo Subscribe Duo Subscribe is a solution for Subscriber Management and Billing. With over a decade of experience in developing applications for these sectors and having vast amount of domain knowledge on how these sectors operate, Duo Subscribe is eminently capable of meeting the complex and rigorous demands of businesses around the world. Facetone ‘Facetone’ is a communication and collaboration platform, which provides users the capability of operating and running a high performance contact center operation efficiently while saving cost and maximizing revenue opportunities. In-built Facetone CRM feature provides the opportunity for contact centers to deliver a superior customer experience and build a better relationship by linking customers and data in real time. Smoothflow Smoothflow automates customer engagements, including building ChatBots, VoiceBots and IoTBots to deliver an Omni channel customer service experience. The product uses the power of artificial intelligence to keep improving the conversational flow and user experience. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on premise software Enterprise software solutions Cloud services AMC Services For the period ended March 31, 2021 and 2020, the Company received only cash as consideration for sale of licenses and related services and not in kind. For the years ended March 31, 2021 and 2020, the Company had following concentrations of revenues with customers: Customer March 31, 2021 March 31, 2020 A 74.04 % 69.05 % B 8.56 % 2.14 % C 6.52 % 16.66 % D 4.74 % 5.79 % E 3.78 % 2.10 % Other Misc. customers 2.36 % 4.26 % 100.00 % 100.00 % For the years ended March 31, 2021 and 2020, the Company had following sales by products: Product March 31, 2021 March 31, 2020 Duo Subscriber $ 286,216 $ 558,169 Facetone 44,115 191,233 Software hosting and reselling 16,147 19,974 Smoothflow - 2,529 $ 346,478 $ 771,905 During the year three customers terminated their contracts with the Company, and the revenue loss from the termination expected to be 82%. |
Significant Judgments | 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 products and services are not mentioned in the agreement, the Company allocates transaction price estimating the standalone selling price of the promised products and the services. The determination of standalone selling price for each performance obligation requires judgments. The Company determines standalone selling price for performance obligations based on overall pricing strategies, which consider market in which the company operates, historical data analysis, number of users of the product or services, size of the customer and the market price of the hardware used. |
Contract Balances | Contract Balances When the timing of revenue recognition differs from the timing of invoicing for contract with customers, deferred revenue and accrued revenue/ unbilled accounts receivables are recognized by the Company. We record a receivable when revenue is recognized prior to invoicing and receipt of payments, or deferred revenue when the revenue is recognized subsequent to invoicing. Revenue under Software Implementation contracts are invoiced on stages of completion as stipulated in the agreement and the revenue recognized when the performance obligations are met and customer signs the user acceptance test (UAT). The Company invoices software license fee and royalty fee at the end of the period according to the customer agreement and accrued revenue/ unbilled revenue is recognized for the relevant period. The initial annual maintenance fee is bundled with the initial license fee and is invoiced at beginning of the period and the Company recognizes as deferred revenue in the financial statements and is ratably recognized over a period of service. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Refer Note- 5 for “Accounts receivables and Provision for doubtful debts” |
Segment Information | Segment Information The Company has determined that its Chief Executive Officer is its Chief Operating Decision Maker. The Company’s executive reviews financial information presented on a consolidated basis for the purposes of assessing the performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. |
Deferred Revenue | Deferred Revenue - |
Accrued Revenue/Unbilled Accounts Receivable | Accrued Revenue/Unbilled Accounts Receivable - The Company had no contract liabilities and asset recognized for cost to fulfill a requirement of a customer as at March 31, 2021. |
Cost of Revenue | Cost of Revenue Cost of revenue mainly includes cost for server space, product implementation costs, amortization of product development, developer support and implementation, and consultancy fees related to the products offered by Duo. The aggregate cost related to the software implementations, including support and consulting services pertaining to the revenue recognized during the reporting period, is recognized as Cost of Revenue. |
Product Research and Development | Product research and development Product research and development expenses consist primarily of salary and benefits for the Company’s development and technical support staff, contractors’ fees and other costs associated with the enhancements of existing products and services and development of new products and services. Costs incurred for software development prior to technological feasibility are expensed as product research and development costs in the period incurred. Once the point of technological feasibility is reached, which is generally upon the completion of a working prototype that has no critical bugs and is a release candidate; development costs are capitalized until the product is ready for general release and are classified within “Intangibles assets” in the accompanying consolidated balance sheets. The Company amortizes capitalized software development costs using the greater of the ratio of the products’ current gross revenues to the total of current gross revenues and expected gross revenues or on a straight-line basis over the estimated economic life of the related product, which is typically four years. During the year ended March 31, 2021 and 2020, product research and development cost of $12,657 and $43,897, respectively, were capitalized as “Intangible assets.” |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. No advertising expenses were incurred during the period ended March 31, 2021 and 2020. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets and liabilities are not recognized in the current financials due to recurring tax losses and the uncertainty of the realization of the tax allowances. Withholding taxes deducted from the source of income from foreign operations are debited to profit and loss account due to non-refundable status. |
Comprehensive Income | Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income from April 1, 2015 through March 31, 2021, includes only foreign currency conversion gains (losses), and is presented in the Company’s consolidated statements of comprehensive income. Changes in Accumulated Other Comprehensive Income (Loss) by Component during the period ending on March 31, 2021 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2019 $ 266,235 Translation rate gain (loss) 201,550 Balance, March 31, 2020 $ 467,785 Translation rate gain (loss) 80,754 Balance, March 31, 2021 $ 548,539 |
Leases | Leases Lessor There are no significant changes in recognizing the Lessor under ASC 842 compared to the previous model. Changes were made to the accounting guidance of lessor and lessee, and the key aspects of the introduced model is to align the recognition criteria with new revenue recognition standard ASC 606. Under the new guidance, contract consideration is allocated to its lease components and non-lease components (such as maintenance). For the Company as a lessor, non-lease components of the contract will be accounted under ASC Topic 606, Revenue from Contracts with Customers, unless the Company elects a lessor practical expedient to not separate the non-lease components from the associated lease component. The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. To elect the practical expedient, the timing and pattern of transfer of the lease and non-lease components must be the same and the lease component must meet the criteria to be classified as an operating lease. If these criteria’s are met, the single component can be accounted either ASC 842 or ASC 606, depending on the predominant component(s). The lessor practical expedient to not separate non-lease components from the associated component must be elected for all existing and new leases. As lessor, the Company expects that post-adoption substantially all existing leases will have no change in the timing of revenue recognition until their expiration or termination. The Company expects to elect the lessor’s practical expedient to not separate non-lease components such as maintenance from the associated lease for all existing and new leases and to account for the combined component as a single lease component. The timing of revenue recognition is expected to be the same for the majority of the Company’s new leases as compared to similar existing leases; however, certain categories of new leases could have different revenue recognition patterns as compared to similar existing leases. For the leases that are accounted as operating leases, income is recognized on a straight-line basis over the term of the lease contract. Generally, when a lease is more than 180 days delinquent (where more than three monthly payments are owed), the lease is classified as being on nonaccrual and the Company has to stops recognizing leasing income on that date. Payments received from leases in nonaccrual status generally reduce the lease receivable. Leases on nonaccrual status remain classified as such until there is sustained payment performance that, in the Company’s judgment, would indicate that all contractual amounts will be collected in full. Lessee The Company adopted ASU 2016-02 effective April 1, 2019 using the modified retrospective approach. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. In connection with the adoption, the Company will elect to utilize the modified retrospective presentation whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, the Company will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company will adopt a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without considering the deferred payment terms, such as rent holidays, that defer the commencement date of required payments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Newly issued ASUs not listed below are expected to have no impact on the Company’s consolidated financial position and results of operations, because either the ASU is not applicable, or the impact is expected to be immaterial. The Company has reviewed the recent accounting pronouncements and believes that they will not have material impact on the Company’s financial position and results of operations. Not yet adopted Disclosures: Collaborative Arrangement Intangibles-Goodwill and Other-Internal-Use Software : |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Provision for Doubtful Debts Based on Period Outstanding | The Company is in the practice of provisioning for doubtful debts based on the period outstanding as per the following: Trade receivables outstanding: Provision Over 24 months 100 % Over 18 months 50 % Over 15 months 25 % Over 12 months 10 % Over 9 months 5 % |
Schedule of Estimated Useful Lives of Fixed Assets | Useful lives of the fixed assets are as follows: Furniture & Fittings 5 years Improvements to lease hold assets Lease term Office equipment 5 years Computer equipment (Data Processing Equipment) 3 years Website development 4 years |
Schedule of Concentrations of Revenue | For the years ended March 31, 2021 and 2020, the Company had following concentrations of revenues with customers: Customer March 31, 2021 March 31, 2020 A 74.04 % 69.05 % B 8.56 % 2.14 % C 6.52 % 16.66 % D 4.74 % 5.79 % E 3.78 % 2.10 % Other Misc. customers 2.36 % 4.26 % 100.00 % 100.00 % |
Schedule of Sales by Products | For the years ended March 31, 2021 and 2020, the Company had following sales by products: Product March 31, 2021 March 31, 2020 Duo Subscriber $ 286,216 $ 558,169 Facetone 44,115 191,233 Software hosting and reselling 16,147 19,974 Smoothflow - 2,529 $ 346,478 $ 771,905 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) by Component during the period ending on March 31, 2021 were as follows: Foreign Currency Translation gains (losses) Balance, March 31, 2019 $ 266,235 Translation rate gain (loss) 201,550 Balance, March 31, 2020 $ 467,785 Translation rate gain (loss) 80,754 Balance, March 31, 2021 $ 548,539 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivables | Following is a summary of accounts receivable as at March 31, 2021 and March 31, 2020: March 31, 2021 March 31, 2020 Accounts receivable – Trade $ 213,452 $ 355,512 Less: Provision for doubtful debts (77,580 ) (51,291 ) $ 135,872 $ 304,221 |
Schedule of Concentrations of Accounts Receivables | At March 31, 2021 and March 31, 2020, the Company had following concentrations of accounts receivable with customers: Customer March 31, 2021 March 31, 2020 A 89.64 % 50.25 % B 3.46 % 5.44 % C 3.02 % 1.67 % D 0.00 % 37.54 % E 0.00 % 2.66 % Other receivables 3.88 % 2.44 % 100.00 % 100.00 % |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Following is a summary of prepaid expenses and other current assets as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Security deposits $ 17,509 $ 18,758 Supplier advance 5,411 5,416 Prepayments 1,646 614 ESC receivable - 4,666 Prepayment for other professional services - 1,083 Other receivables 157 - $ 24,723 $ 30,537 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Following table illustrates net book value of property and equipment as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Office equipment $ 1,597 $ 1,685 Furniture & fittings 107,177 113,046 Computer equipment (data processing equipment) 81,749 86,226 Improvements to lease hold assets 16,506 17,410 Website development 22,862 24,035 229,891 242,402 Accumulated depreciation and amortization (220,918 ) -226,487 Net fixed assets $ 8,974 $ 15,915 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Following table illustrates the movement in intangible assets as at March 31, 2020 and March 31, 2019: March 31, 2021 March 31, 2020 Opening balance $ 644,586 $ 746,158 Add: Costs capitalized during the year 12,657 43,897 Less: Amount written-off (206,433 ) (95,990 ) Translational gain/ (loss) (22,740 ) (49,479 ) Net Intangible Assets $ 428,070 $ 644,586 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Short-term Borrowings | Following is a summary of short-term borrowings as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 PAN Asia Bank – short term overdraft $ 372,291 $ 398,361 PAN Asia Bank – loan 56,214 59,292 Commercial Bank 2,488 4,297 $ 430,993 $ 461,950 |
Taxes Payables (Tables)
Taxes Payables (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Taxes Payables | Taxes payable are comprised of items listed below as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 PAYE $ 162,546 $ 159,483 WHT payable 3,373 3,557 Stamp duty payable 5 9 $ 165,924 $ 163,049 |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accruals and Other Payables | Following is a summary of accruals and other payables as at March 31, 2021 and March 31, 2020; March 31, 2021 March 31, 2020 Accruals $ 60,242 $ 43,826 Other payables 17,000 18,015 Accrued interest 8,763 5,209 Audit fee payable 2,375 1,750 $ 88,380 $ 68,800 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Cost of Revenue [Abstract] | |
Summary of Cost of Revenue | Following is the summary of cost of revenue for the period ending March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Product development cost written off $ 206,433 $ 95,990 Developer support and implementation 53,381 78,927 Purchases 13,864 15,050 Implementation and onsite support cost 9,095 58,935 Consultancy, contract basis employee cost 1,524 5,514 Cost of services 1,508 971 $ 285,805 $ 255,387 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
General And Administrative Expenses | |
Schedule of General and Administrative Expenses | Following is the summary of general and administrative expenses for the period ending March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Directors remuneration 120,055 129,323 Audit fees 25,583 25,809 Consulting fee 16,971 21,113 OTC market fees 12,998 11,917 Other professional services 12,599 5,971 Penalties / late payment charges 12,560 14,530 Secretarial fees 9,859 701 Lease expense 9,738 17,503 Legal fees 9,000 18,192 Vehicle allowance 8,940 14,727 Gratuity 8,800 7,223 EPF 7,974 9,089 Internet charges 4,563 7,844 Telephone charges 4,037 5,830 ETF 1,994 2,272 Professional fees 1,830 14,958 Office rent 1,630 2,242 Electricity charges 1,204 4,962 Fee and subscription 861 1,670 Office maintenance 817 3,945 Software rentals 798 809 Other expenses 678 2,113 Computer maintenance 370 1,183 Stamp duty expense 342 40 Public relations 329 658 Staff welfare 231 3,063 Courier and postage 204 586 Printing and stationery 92 315 Impairment allowance on receivables - 25,034 Accounts write- off - 13,705 Investor facilitator fee - 9,994 Irrecoverable Tax - 1,150 Insurance expense - 90 275,057 378,561 |
Selling and Distribution Expe_2
Selling and Distribution Expenses (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Selling And Distribution Expenses | |
Schedule of Selling and Distribution Expenses | Following is the summary of selling and distribution expenses for the period ending on March 31, 2021 and 2020; March 31, 2021 March 31, 2020 Vehicle hire charges $ 4,270 $ 5,292 Vehicle running expenses 533 1,922 Marketing expenses 81 459 $ 4,884 $ 7,673 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income Tax expense consists of the following: March 31, 2021 March 31, 2020 Current taxes Nevada $ - $ - Sri Lanka- taxes withheld 34,451 54,268 Singapore - - Total Income tax expense $ 34,451 $ 54,268 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: March 31, 2021 March 31, 2020 Deferred tax asset arising from tax effect of : Carry forward losses and unabsorbed depreciation - - Less: Valuation allowance - - Total deferred tax asset (non-current) - - Total deferred tax liability Nil Nil |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following costs are related to the operating lease of the Company for the year ended March 31, 2020: March 31, 2021 March 31, 2020 Components of total lease cost: Operating lease expense - 17,503 Total lease cost - 17,503 |
Schedule of Cash Flow Information is Related to Operating Lease | The following cash flow information is related to the operating lease of the Company for the year ended March 31, 2020: March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases - 17,503 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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 7/31/2014 Guarantee for SLT $ 430 8/10/2015 Guarantee for LOLC 1,214 7/18/2018 Guarantee for Amana bank 482 9/10/2018 Guarantee for ICTA 1,518 10/9/2018 Rent deposit for office space 8,349 10/9/2019 Guarantee for BOC 1,847 10/14/2019 Security deposit for CEB 759 10/21/2019 Security deposit for CEB 304 11/18/2020 Guarantee for HDFC bank 127 $ 15,030 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ (532,856) | $ (373,330) | |
Net cash provided by operations | (130,613) | (251,924) | |
Working capital | (2,826,272) | (2,564,709) | |
Employee provident fund and employee trust fund | 373,142 | 409,413 | |
Stockholders' deficit | $ 3,779,098 | $ 3,326,996 | $ 3,283,032 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash equivalents | ||
Property, plant and equipment, depreciation methods | Straight-line method | |
Estimated useful life | 15 years | |
Deferred revenue | $ 2,898 | 55,684 |
Unbilled/accrued revenues | 1,076 | 17,886 |
Product research and development cost | 12,657 | 43,897 |
Advertising expense | ||
Revenue [Member] | Customer Concentration Risk [Member] | ||
Concentrations of revenue percentage | 100.00% | 100.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentrations of revenue percentage | 82.00% | |
Duo Software (Pvt.) Limited and Duo Software Pte Limited [Member] | ||
Ownership interest | 100.00% | |
Duo Software India (Private) Limited [Member] | ||
Ownership interest | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Provision for Doubtful Debts Based on Period Outstanding (Details) - Trade Receivables Outstanding [Member] | 12 Months Ended |
Mar. 31, 2021 | |
Over 24 Months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 100.00% |
Over 18 Months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 50.00% |
Over 15 Months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 25.00% |
Over 12 Months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 10.00% |
Over 9 Months [Member] | |
Provisioning for trade receivables outstanding percentage over period | 5.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Fixed Assets (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Estimated useful Lives of property and equipment | 15 years |
Furniture & Fittings [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Improvements to Lease Hold Assets [Member] | |
Estimated useful Lives of property and equipment, description | Lease term |
Office Equipment [Member] | |
Estimated useful Lives of property and equipment | 5 years |
Computer Equipment (Data Processing Equipment) [Member] | |
Estimated useful Lives of property and equipment | 3 years |
Website Development [Member] | |
Estimated useful Lives of property and equipment | 4 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Concentrations of Revenue (Details) - Revenue [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Concentrations of revenue percentage | 100.00% | 100.00% |
Customer A [Member] | ||
Concentrations of revenue percentage | 74.04% | 69.05% |
Customer B [Member] | ||
Concentrations of revenue percentage | 8.56% | 2.14% |
Customer C [Member] | ||
Concentrations of revenue percentage | 6.52% | 16.66% |
Customer D [Member] | ||
Concentrations of revenue percentage | 4.74% | 5.79% |
Customer E [Member] | ||
Concentrations of revenue percentage | 3.78% | 2.10% |
Other Misc. Customers [Member] | ||
Concentrations of revenue percentage | 2.36% | 4.26% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Sales by Products (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 346,478 | $ 771,905 |
Duo Subscribe [Member] | ||
Revenue | 286,216 | 558,169 |
Facetone [Member] | ||
Revenue | 44,115 | 191,233 |
Software Hosting and Reselling [Member] | ||
Revenue | 16,147 | 19,974 |
Smooth Flow [Member] | ||
Revenue | $ 2,529 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Foreign Currency Translation Gains (losses), beginning | $ 467,785 | $ 266,235 |
Translation rate gain (loss) | 80,754 | 201,550 |
Foreign Currency Translation Gains (losses), ending | $ 548,539 | $ 467,785 |
Reverse Recapitalization (Detai
Reverse Recapitalization (Details Narrative) - USD ($) | Dec. 03, 2014 | Mar. 31, 2020 | Mar. 31, 2021 |
Cash consideration on exchange of DSSL's | $ 100,000 | ||
Common stock, shares issued | 67,754,296 | 67,754,296 | |
Common stock, shares outstanding | 67,754,296 | 67,754,296 | |
Common Stock [Member] | |||
Number of stock issued during period, shares | 2,000,000 | ||
Cash consideration on exchange of DSSL's | $ 2,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | |||
Cash consideration on exchange of DSSL's | $ 310,000 | ||
Common stock, shares issued | 5,000,000 | ||
Common stock, shares outstanding | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Series A Preferred Stock [Member] | |||
Number of stock issued during period, shares | 5,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 28,000,000 | ||
Duo Software Pte Limited (DSS) [Member] | |||
Common stock, shares issued | 10,000 | ||
Common stock, shares outstanding | 10,000 | ||
Duo Software Pte Limited (DSS) [Member] | Common Stock [Member] | |||
Number of stock issued during period, shares | 2,000,000 | ||
Duo Software (Pvt.) Limited (DSSL) and Duo Software Pte Limited (DSS) [Member] | |||
Shareholder acquisition, percent | 100.00% |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivables (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable - Trade | $ 213,452 | $ 355,512 |
Less: Provision for doubtful debts | (77,580) | (51,291) |
Accounts receivable | $ 135,872 | $ 304,221 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Concentrations of Accounts Receivables (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Concentrations of accounts receivable | 100.00% | 100.00% |
Customer A [Member] | ||
Concentrations of accounts receivable | 89.64% | 50.25% |
Customer B [Member] | ||
Concentrations of accounts receivable | 3.46% | 5.44% |
Customer C [Member] | ||
Concentrations of accounts receivable | 3.02% | 1.67% |
Customer D [Member] | ||
Concentrations of accounts receivable | 0.00% | 37.54% |
Customer E [Member] | ||
Concentrations of accounts receivable | 0.00% | 2.66% |
Other Receivables [Member] | ||
Concentrations of accounts receivable | 3.88% | 2.44% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Security deposits | $ 17,509 | $ 18,758 |
Supplier advance | 5,411 | 5,416 |
Prepayments | 1,646 | 614 |
ESC receivable | 4,666 | |
Prepayment for other professional services | 1,083 | |
Other receivables | 157 | |
Prepaid expenses and other current assets | $ 24,723 | $ 30,537 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 6,450 | $ 17,930 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Fixed assets gross | $ 229,891 | $ 242,402 |
Accumulated depreciation and amortization | (220,918) | (226,487) |
Net fixed assets | 8,974 | 15,915 |
Office Equipment [Member] | ||
Fixed assets gross | 1,597 | 1,685 |
Furniture & Fittings [Member] | ||
Fixed assets gross | 107,177 | 113,046 |
Computer Equipment (Data Processing Equipment) [Member] | ||
Fixed assets gross | 81,749 | 86,226 |
Improvements to Lease Hold Assets [Member] | ||
Fixed assets gross | 16,506 | 17,410 |
Website Development [Member] | ||
Fixed assets gross | $ 22,862 | $ 24,035 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, written off | $ 129,337 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 644,586 | $ 746,158 |
Add: Costs capitalized during the year | 12,657 | 43,897 |
Less: Amount written-off | (206,433) | (95,990) |
Translational gain/ (loss) | (22,740) | (49,479) |
Net Intangible Assets | $ 428,070 | $ 644,586 |
Short-term Borrowings (Details
Short-term Borrowings (Details Narrative) - Pan Asia Banking Corporation PLC [Member] | Mar. 31, 2021USD ($) |
Interest Rate of 9% Per Annum [Member] | |
Bank overdraft facility interest rate | 9.00% |
Bank overdrafts | $ 106,265 |
Interest Rate of 11.25% Per Annum [Member] | |
Bank overdraft facility interest rate | 11.25% |
Bank overdrafts | $ 110,819 |
Interest Rate of 12.75% Per Annum [Member] | |
Bank overdraft facility interest rate | 12.75% |
Bank overdrafts | $ 149,782 |
Interest Rate of 28% for Above [Member] | |
Bank overdraft facility interest rate | 28.00% |
Bank overdrafts | $ 366,866 |
Short-term Borrowings - Summary
Short-term Borrowings - Summary of Short-term Borrowings (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Short-Term Borrowings | $ 430,993 | $ 461,950 |
PAN Asia Bank - Short Term Overdraft [Member] | ||
Short-Term Borrowings | 372,291 | 398,361 |
PAN Asia Bank - Loan [Member] | ||
Short-Term Borrowings | 56,214 | 59,292 |
Commercial Bank [Member] | ||
Short-Term Borrowings | $ 2,488 | $ 4,297 |
Due to Related Parties (Details
Due to Related Parties (Details Narrative) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Related Party Transactions [Abstract] | ||
Due to related parties, short term | $ 1,063,397 | $ 921,728 |
Due to related parties, long term | $ 1,345,915 | $ 1,349,675 |
Taxes Payables - Schedule of Ta
Taxes Payables - Schedule of Taxes Payables (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Taxes payable | $ 165,924 | $ 163,049 |
PAYE [Member] | ||
Taxes payable | 162,546 | 159,483 |
WHT Payable [Member] | ||
Taxes payable | 3,373 | 3,557 |
Stamp Duty Payable [Member] | ||
Taxes payable | $ 5 | $ 9 |
Accruals and Other Payables - S
Accruals and Other Payables - Schedule of Accruals and Other Payables (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accruals | $ 60,242 | $ 43,826 |
Other payables | 17,000 | 18,015 |
Accrued interest | 8,763 | 5,209 |
Audit fee payable | 2,375 | 1,750 |
Accruals and other payables | $ 88,380 | $ 68,800 |
Cost of Revenue - Summary of Co
Cost of Revenue - Summary of Cost of Revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cost of Revenue [Abstract] | ||
Product development cost written off | $ 206,433 | $ 95,990 |
Developer support and implementation | 53,381 | 78,927 |
Purchases | 13,864 | 15,050 |
Implementation and onsite support cost | 9,095 | 58,935 |
Consultancy, contract basis employee cost | 1,524 | 5,514 |
Cost of services | 1,508 | 971 |
Cost of revenue | $ 285,805 | $ 255,387 |
General and Administrative Ex_3
General and Administrative Expenses - Schedule of General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
General And Administrative Expenses | ||
Directors remuneration | $ 120,055 | $ 129,323 |
Audit fees | 25,583 | 25,809 |
Consulting fee | 16,971 | 21,113 |
OTC market fees | 12,998 | 11,917 |
Other professional services | 12,599 | 5,971 |
Penalties / late payment charges | 12,560 | 14,530 |
Secretarial fees | 9,859 | 701 |
Lease expense | 9,738 | 17,503 |
Legal fees | 9,000 | 18,192 |
Vehicle allowance | 8,940 | 14,727 |
Gratuity | 8,800 | 7,223 |
EPF | 7,974 | 9,089 |
Internet charges | 4,563 | 7,844 |
Telephone charges | 4,037 | 5,830 |
ETF | 1,994 | 2,272 |
Professional fees | 1,830 | 14,958 |
Office rent | 1,630 | 2,242 |
Electricity charges | 1,204 | 4,962 |
Fee and subscription | 861 | 1,670 |
Office maintenance | 817 | 3,945 |
Software rentals | 798 | 809 |
Other expenses | 678 | 2,113 |
Computer maintenance | 370 | 1,183 |
Stamp duty expense | 342 | 40 |
Public relations | 329 | 658 |
Staff welfare | 231 | 3,063 |
Courier and postage | 204 | 586 |
Printing and stationery | 92 | 315 |
Impairment allowance on receivables | 25,034 | |
Accounts write- off | 13,705 | |
Investor facilitator fee | 9,994 | |
Irrecoverable Tax | 1,150 | |
Insurance expense | 90 | |
General and administrative expenses | $ 275,057 | $ 378,561 |
Selling and Distribution Expe_3
Selling and Distribution Expenses - Schedule of Selling and Distribution Expenses (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Selling And Distribution Expenses | ||
Vehicle hire charges | $ 4,270 | $ 5,292 |
Vehicle running expenses | 533 | 1,922 |
Marketing expenses | 81 | 459 |
Selling and distribution expenses | $ 4,884 | $ 7,673 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total Income tax expense | $ 34,451 | $ 54,268 |
Singapore [Member] | ||
Total Income tax expense | ||
Current Taxes Nevada [Member] | ||
Total Income tax expense | ||
Sri Lanka- Taxes Withheld [Member] | ||
Total Income tax expense | $ 34,451 | $ 54,268 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset arising from tax effect of : Carry forward losses and unabsorbed depreciation | ||
Less: Valuation allowance | ||
Total deferred tax asset (non-current) | ||
Total deferred tax liability |
Equity (Details Narrative)
Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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. |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Short- term lease expenses | $ 1,630 | $ 2,242 |
Right of use lease asset | 10,330 | |
Right of use liability | $ 10,333 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Components of total lease cost: Operating lease expense | $ 17,503 | |
Total lease cost | $ 17,503 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information is Related to Operating Lease (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 17,503 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Guarantee Provided by Existed Company (Details) - USD ($) | Nov. 18, 2020 | Oct. 21, 2019 | Oct. 14, 2019 | Oct. 09, 2019 | Oct. 09, 2018 | Sep. 10, 2018 | Jul. 18, 2018 | Aug. 10, 2015 | Jul. 31, 2014 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Guarantee Description | Guarantee for HDFC bank | Security deposit for CEB | Security deposit for CEB | Guarantee for BOC | Rent deposit for office space | Guarantee for ICTA | Guarantee for Amana bank | Guarantee for LOLC | Guarantee for SLT | |
Guarantee Amount | $ 127 | $ 304 | $ 759 | $ 1,847 | $ 8,349 | $ 1,518 | $ 482 | $ 1,214 | $ 430 | $ 15,030 |