See accompanying Notes to Condensed Consolidated Financial Statements below in this report and the Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017.
See accompanying Notes to Condensed Consolidated Financial Statements below in this report and Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017.
See accompanying Notes to Condensed Consolidated Financial Statements below in this report and the Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017.
See accompanying Notes to Consolidated Financial Statements below in this report and Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 –
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a)
Overview of India Globalization Capital, Inc. (“IGC”)
India Globalization Capital, Inc. (“IGC” or the “Company”), was incorporated in April 2005 under the laws of the state of Maryland, and through its subsidiaries in the USA, India, Hong Kong and Malaysia, is engaged in two major business segments -
The first is a legacy infrastructure business consisting of heavy equipment rental, trading infrastructure related commodities, and real estate management. The second is development of cannabis-based combination therapies
with a pipeline of products, including lead candidate, Hyalolex, designed to improve the lives of patients battling Alzheimer’s disease, Parkinson’s disease, chronic pain, post-traumatic stress disorder, and eating disorders and a long-term focus on developing blockchain technologies to solve critical issues facing the Cannabis industry.
b)
Changes in subsidiaries
IGC closed its Hong Kong based direct subsidiary IGC Clean Tech, and our India based subsidiary Techni Bharathi Private Limited (“TBL”), in the quarter ended December 31, 2017, beneficially incorporated as its Hong Kong based subsidiary IGC Enterprise that is involved in trading. TBL paid a premium of $745 for the 100% beneficial ownership.
c) Basis of presentation and use of estimates
The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. In preparing the financial statements management is required to make estimates and assumptions that could affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. The significant accounting policies adopted by the Company, in respect of these consolidated financial statements, are set out in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and respective notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The consolidated financial statements include the accounts of the Company and all its subsidiaries that are more than 50% owned and controlled. The Company consolidates the subsidiaries into its consolidated financial statements. Transactions between the Company and its subsidiaries have been eliminated in the consolidated financial statements.
d) Presentation of
functional currencies
In the quarter ended December 31, 2017, in addition to the US, IGC operates in India, Hong Kong and Malaysia and a substantial portion of the Company’s sales are denominated in USD, INR, and RM. As a result, changes in the relative values of the U.S. dollar and INR or the RM affect revenues and profits as the results are translated into U.S. dollars in the consolidated and pro forma financial statements. The accompanying financial statements are reported in U.S. dollars. The INR and the RM are the functional currencies for the Company. The translation of the functional currencies into U.S. dollars is performed for assets and liabilities using the exchange rates in effect at the balance sheet date and for revenues, costs and expenses using average exchange rates prevailing during the reporting periods. Adjustments resulting from the translation of functional currency financial statements to reporting currency are accumulated and reported as other comprehensive income/(loss), a separate component of shareholders’ equity.
e) Consolidation
The Company’s current fiscal year ends on March 31, 2018. Unless the context requires otherwise, all references in this report to “IGC,” “we,” “our” and “us” refer to India Globalization Capital, Inc., together with its subsidiaries, as listed and described in its Annual Report on Form 10-K filed with the SEC on July 14, 2017. We exclude our investments and minority non-controlling interests, and any information provided by them is not incorporated by reference in this report, and you should not consider it a part of this report. Our filings are available on www.sec.gov. The information contained on our website, www.igcinc.us, is not incorporated by reference in this report, and you should not consider it a part of this report.
NOTE 2 – INTENTIONALLY LEFT BLANK
NOTE 3 – ACCOUNTS RECEIVABLE
Accounts receivable, net of allowances, amounted to $1,155,229 and $752,926 as of December 31, 2017 and March 31, 2017, respectively. The accounts receivable net of reserves for the quarter ended December 31, 2017 come primarily from construction management, rental of heavy construction equipment and trading in commodities.
NOTE 4 – OTHER CURRENT AND NON-CURRENT ASSETS
Prepaid expenses and other current assets consist of the following:
|
|
As of
December 31, 2017
|
|
|
As of
March 31, 2017
|
|
Prepaid /preliminary expenses
|
|
$
|
-
|
|
|
$
|
6,750
|
|
Advance to suppliers, others & services
|
|
|
355,490
|
|
|
|
352,850
|
|
Security/statutory advances
|
|
|
17,320
|
|
|
|
14,216
|
|
Prepaid and accrued interest
|
|
|
1,459
|
|
|
|
1,436
|
|
Deposit and other current assets
|
|
|
5,516
|
|
|
|
35,156
|
|
Total
|
|
$
|
379,785
|
|
|
$
|
410,408
|
|
Other non-current assets consist of the following:
|
|
As of
December 31, 2017
|
|
|
As of
March 31, 2017
|
|
Statutory/Other advances
|
|
$
|
521,631
|
|
|
$
|
539,720
|
|
Product formulation
|
|
|
299,282
|
|
|
|
-
|
|
Total
|
|
$
|
820,913
|
|
|
$
|
539,720
|
|
On May 21, 2012, TBL entered into an agreement with Weave & Weave for the purchase of land. TBL gave Weave and Wave an advance of $383,832. As of the date of this filing, the parties are in the process of negotiating a settlement that includes the purchase and sale of land as well as the refund of the advance given by TBL. Product Formulation is the capitalized part of expenses related to the formulation of products. The products including, Hyalolex, our lead product for patients suffering from Alzheimer’s are all non-FDA approved products. These products do not require FDA approval for sale in dispensaries.
NOTE 5 – INTANGIBLE ASSETS AND GOODWILL
The movement in intangible assets and goodwill is given below.
|
|
As of
December 31, 2017
|
|
|
As of
March 31, 2017
|
|
Intangible assets at the beginning of the period
|
|
$
|
-
|
|
|
$
|
113,321
|
|
Amortization
|
|
|
-
|
|
|
|
(113,321
|
)
|
Patent filings and rights
|
|
|
124,272
|
|
|
|
-
|
|
Total Intangible assets
|
|
$
|
124,272
|
|
|
$
|
-
|
|
Goodwill of Cabaran Ultima Sdn Bhd
|
|
|
198,169
|
|
|
|
198,169
|
|
Total Goodwill
|
|
$
|
198,169
|
|
|
|
198,169
|
|
The value of goodwill for the two periods shown is $198,169 and is associated with the acquisition of Cabaran Ultima. The capitalized patent expenses are direct expenses, legal, filing fees etc., associated with filing patents in North America, Europe and Canada.
NOTE 6 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
Category
|
|
Useful Life (years)
|
|
|
As of
December 31, 2017
|
|
|
As of
March 31, 2017
|
|
Building (flat)
|
|
|
25
|
|
|
$
|
245,035
|
|
|
$
|
241,181
|
|
Plant and machinery
|
|
|
20
|
|
|
|
1,737,381
|
|
|
|
1,710,055
|
|
Computer equipment
|
|
|
3
|
|
|
|
160,643
|
|
|
|
157,349
|
|
Office equipment
|
|
|
5
|
|
|
|
121,372
|
|
|
|
119,528
|
|
Furniture and fixtures
|
|
|
5
|
|
|
|
72,167
|
|
|
|
70,368
|
|
Vehicles
|
|
|
5
|
|
|
|
296,288
|
|
|
|
292,764
|
|
Assets under construction
|
|
|
N/A
|
|
|
|
969,573
|
|
|
|
957,880
|
|
Total
|
|
|
|
|
|
$
|
3,602,459
|
|
|
$
|
3,549,125
|
|
Less: Accumulated depreciation
|
|
|
|
|
|
$
|
(2,651,108
|
)
|
|
$
|
(2,595,189
|
)
|
Net Assets
|
|
|
|
|
|
$
|
951,351
|
|
|
$
|
953,936
|
|
Depreciation expense for the nine months ended December 31, 2017 and 2016 was $15,297 and $391,617 respectively. Capital work-in-progress represents the cost of property and equipment not put to use before the balance sheet date.
NOTE 7 – INVESTMENTS – OTHERS
Investments - others for each of the periods ended December 30, 2017 and March 31, 2017, consisted of the following:
|
|
As of
December 31, 2017
|
|
|
As of
March 31, 2017
|
|
Investment in equity shares of unlisted company & associates
|
|
$
|
67,912
|
|
|
$
|
63,392
|
|
Investment in affiliate
|
|
|
773,111
|
|
|
|
773,111
|
|
Investment in land
|
|
|
5,174,611
|
|
|
|
5,174,611
|
|
Total
|
|
$
|
6,015,634
|
|
|
$
|
6,011,114
|
|
Pursuant to the December 18, 2014 Purchase Agreement with Apogee, we issued 1,200,000 common shares of IGC valued at $888,000 for the purchase of 24.9% ownership interest in Midtown Partners & Co., LLC. The Purchase Agreement expired on June 30, 2015, and the Company is pursuing its rights under the terms of the Purchase Agreement to recover certain damages. Value of investment in our books is $773,111 as on December 31, 2017.
NOTE 8 –
Intentionally left blank.
NOTE 9 – OTHER CURRENT AND NON-CURRENT LIABILITIES
Other current liabilities consist of the following:
|
|
As of
December 31, 2017
|
|
|
As
of March 31, 2017
|
|
Statutory payables
|
|
$
|
16,344
|
|
|
$
|
15,203
|
|
Employee related liabilities
|
|
|
457,757
|
|
|
|
676,511
|
|
Total
|
|
$
|
474,101
|
|
|
$
|
691,714
|
|
For the quarter ended December 31, 2017, there were no other non-current liabilities.
NOTE 10 – RELATED PARTY TRANSACTIONS
As of December 31, 2017, the Company has (i) a balance of $98,185 due and payable to our CEO inclusive of certain unpaid salaries from previous years and (ii) a secured loan at zero interest from spouse of our CEO in the amount of $244,412.
We pay an affiliate of our CEO $4,500 per month for office space and certain general and administrative services rendered in Maryland. In addition, we pay another affiliate of our CEO $6,100 per month for office and facilities in Washington State. We believe, based on rents and fees for similar services in the Washington, D.C. metropolitan area, and Washington State that the fee charged by the affiliates are at least as favorable as we could have obtained from an unaffiliated third party and these payments are not considered, or meant to be compensation to our CEO. The rental agreement for the Maryland location is on a month-to-month basis and may be terminated by our Board of Directors of the Company at any time without notice. The rental agreement for Washington State facilities expired on December 31, 2017, and it was renewed in January 2018 by mutual consent for 1 more year. During the quarter ended December 31, 2017, the total rent paid to one of the affiliates for the office space (and services) in Maryland was $13,500. $36,600 is payable to one of the affiliates for the rental of the facilities in Washington State.
As on December 31, 2017, an amount of $82,147 is due to RGF Cabaran’s director.
For December 31, 2017 there was no loan balance due to the Director of Cabaran.
Loans by Related Parties:
We have a secured working capital loan that has a loan balance of $195,061 as of December 31, 2017 and $97,500 as of March 31, 2017 from affiliates of our CEO, at an annual interest rate of zero percent, due February 23, 2022. There is no prepayment penalty. The assets of the Company secure the loan.
Loans to Related Parties:
On April 30, 2015, FYE 2016, we loaned Apogee Financial Services, the majority owner of Midtown Partners, $70,000 as working capital for Midtown partners. The loan is outstanding as of December 31, 2017.
NOTE 11 – NOTES PAYABLE AND LOANS – OTHERS
The Company has an unsecured Note Payable to Bricoleur Partners, L.P. in the amount of $1,800,000 (“2012 Security”). Up to July 2014, the Company was making monthly payments of 17,100 shares of common stock. Starting on August 2014, the Company started making a monthly payment of 23,489 shares of common stock. Starting August 1, 2016, the Company started making a monthly payment of 30,000 shares. The Company has never made a cash interest payment to Bricoleur on the Note. The parties have agreed that the Company will make a payment (shown on our P&L under interest payment and not tax deductible to the Company) of 30,000 shares of common stock for each month the loan remains unpaid, regardless of the trading price of the stock. The arrangement allows the Company and Bricoleur to pursue permanent conversion of the principal to common stock, or repayment of the principal using common stock. At the 2017 annual meeting of the shareholders the Company asked the shareholders to vote on allowing the Company to deliver up to an additional 2 million shares of our common stock as repayment of principal. The vote on the amendment remains outstanding. During the quarter ended December 31, 2017, the Company issued a total of 90,000 shares valued at $48,000 to this debt holder, which constitutes non-tax-deductible payments for the Company.
As of December 31, 2017, the Company has seven loans categorized as Loans Others totaling $737,097 at an average annual interest rate of 10%, as follows: Loan 1: We have a loan for $62,726, due on April 25, 2018 bearing 10% annual interest rate. This loan is from one of our Advisors and former director. There is no prepayment penalty. Loan 2: We have a secured loan from an individual for $100,000, at an annual interest rate of 24%, due February 23, 2022. There is no prepayment penalty. The assets of the Company secure the loan. Loan 3: We have a secured loan from an individual for $50,000, at an annual interest rate of 15%, due February 23, 2022. There is no prepayment penalty. The assets of the Company secure the loan. Loan 4: We have a secured loan of $75,000 from an affiliate of our CEO, at an annual interest rate of 15%, due February 23, 2022. There is no prepayment penalty. The assets of the Company secure the loan. Loan 5: We have a secured loan that has a balance as of December 31, 2017 of $195,061 from an affiliate of our CEO, at an annual interest rate of zero percent, due February 23, 2022. There is no prepayment penalty. The assets of the Company secure the loan. Loan 6: Secured loan from the spouse of our CEO, in the amount of $244,411. There is no prepayment penalty. The assets of the Company secure the loan. Loan 7: We have a working capital loan that has a loan balance as of December 31, 2017 of $9,899 from a relative of our CEO, at an annual interest rate of zero percent.
NOTE 12 – COMMITMENTS AND CONTINGENCY
No significant contingencies or commitments were made or existed during the three months ended December 31, 2017.
NOTE 13 – COMMON STOCK
Our common stock trades on the NYSE AMERICAN under the symbol “IGC” with CUSIP number 45408X308, $0.0001 par value (“Common Stock”). This security is also available for trading on the Borse Frankfurt, Stuttgart, and Berlin Exchanges (ticker symbol: IGS1). The Common stock of the Company is also available for trading on the Borse Frankfurt, Borse Berlin, and Borse Stuttgart (XETRA2) exchanges in Germany. The Warrants and Units now trade on the OTC Markets. We have redeemable Warrants (CUSIP number 45408X118 expiring on March 6, 2019) to purchase Common Stock (ticker symbol: IGC.WT) and Units consisting of one share of Common Stock and two redeemable warrants to purchase Common Stock that are not listed. The Unit holders are requested to contact the Company to get their existing Units separated into Common Stock and Warrants.
As on December 31, 2017, there are 11,656,668 outstanding public warrants to purchase 1,165, 667 shares of our common stock at an exercise price of $50.00 a share, expiring on March 6, 2019 and 831,768 private warrants to buy 83,176 shares of common stock at an exercise price of $9.0 that expired on December 8, 2017.
During the quarter ended December 31, 2017, the Company issued 90,000 penalty shares valued at $48,000 to Bricoleur Partners, L.P. for the outstanding $1,800,000 promissory note (“2012 Security”).
On May 20, 2016, IGC entered into an At-The-Market Agency Agreement (“ATM Agreement”) with IFS Securities, Inc. (dba Brinson Patrick, a division of IFS Securities, Inc.), as sales agent (“Brinson Patrick” or the “Agent”). Under this ATM agreement in the December quarter, 23,201 shares of IGC Common Stock, valued at $8,018, settled. This ATM agreement was terminated on September 30, 2017.
The Company entered into a new ATM agreement with The Benchmark Company and Joseph Gunnar as sales agents. During the quarter ended December 31, 2017, the Company sold 1,381,317 shares of Common Stock valuated at $1,610,190 under this ATM agreement.
Under the December 18, 2014 Purchase Agreement with Apogee, we issued 1,200,000 common shares of IGC valued at $888,000 for the purchase of 24.9% ownership interest in Midtown Partners & Co., LLC. Pending downward adjustments, subject to certain balance sheet items of MTP, a total of 500,000 shares of IGC common stock have been held back. Pending the resolution of these balance sheet items, the shares that have been held back may be cancelled. The agreement had a deadline of June 30, 2015, for Apogee and Midtown Partners to obtain the requisite approvals from FINRA. Apogee did not file for approval on time, and consequently pursuant to the terms of the Agreement, there are several penalties that will apply, including the cancellation of 700,000 shares of IGC stock and a penalty of $125,000 owed by Apogee to us. We are not seeking to consummate the acquisition of the remaining interest in Midtown Partners at this time.
The Company has granted (1) to its advisors and employees options to purchase a total of 650,000 shares of common stock at exercise prices ranging from $0.10 to $0.60 are calculated with volatility 119%, interest rate 0.77% and expiration of 5 years, all of which are outstanding and exercisable as of December 31, 2017; and (2) 100,000 shares to acquire the exclusive right to the license of the U.S. patent filing entitled “THC as a Potential Therapeutic Agent for Alzheimer’s Disease” by the University of South Florida. Further, pursuant to IGC’s employee stock option plan and during the quarter ended December 31, 2017, IGC granted 1,455,000 shares to its directors and its employees with minimum vesting period of one year. As of December 31, 2017, IGC has 29,499,790 shares of Common Stock issued and outstanding.
NOTE 14 – STOCK-BASED COMPENSATION
On April 1, 2009, the Company adopted ASC 718, “Compensation-Stock Compensation” (previously referred to as SFAS No. 123 (revised 2004),
Share Based Payment)
. ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. As of December 31, 2017, under the 2008 Omnibus Plan, 4,374,899 shares of common stock have been awarded. As of December 31, 2017, there are 650,000 stock options available to IGC’s advisors and employees. No shares of common stock under the 2008 ESOP plan are available for future grants of options or stock awards. In addition, in the quarter ended December 31, 2017 the shareholders approved 1,900,000 shares of common stock for award, at the discretion of the Board, as a special grant to employees, directors, advisors, and consultants. IGC granted 1,455,000 shares, out of the total approved by the shareholders, to its directors and its employees with minimum vesting period of one year.
NOTE 15 – SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses were $507,332 for the three months ended December 31, 2017 as compared to $322,891 for the three months ended December 31, 2016. Selling, general and administrative expenses include compensation expenses to management, legal and professional expenses, investor-relations expenses, acquisition related expenses and travel expenses.
NOTE 16 – IMPAIRMENT
None during fiscal quarter ended December 31, 2017.
NOTE 17 – INTEREST AND OTHER INCOME
Interest and other income for the three-month periods ended December 31, 2017 and 2016 amounted to $1,090 and $359,104, respectively, and included income received from the supply of skilled operators for the heavy equipment rental business and from the rent of the apartment belonging to TBL, which is in Kochi, India.
NOTE 18 – RECONCILIATION OF EPS
In accordance with ASC Topic 280 – "Earnings Per Share", the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive.
Potential common stock consists of the incremental common stock issuable upon the exercise of common stock options and warrants (using the if-converted method). The computation of basic loss per share for the period ended December 31, 2017 excludes potentially dilutive securities of
1,815,667
shares underlying share purchase options and
warrants
,
and 29,768 shares from the conversion of outstanding units
because their inclusion would be antidilutive.
The historical weighted average per share for our shares through December 31, 2017, was applied using the treasury method of calculating the fully diluted shares. The weighted average number of shares outstanding as of December 31, 2017 and 2016 used for the computation of basic earnings per share (“EPS”) is 28,169,292 and 27,446,095, respectively. Due to the loss incurred during the three-month period ended December 31, 2017, all the potential equity shares are anti-dilutive and accordingly, the fully diluted EPS is equal to the basic EPS.
NOTE 19 – INCOME TAXES
The Company adopted ASC 740, Accounting for Uncertainty in Income Taxes. In assessing the recoverability of its 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 the deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. The management considers historical and projected future taxable income, and tax planning strategies in making this assessment.
The Company’s effective tax rate was 0% for both the quarters ended December 31, 2017 and 2016. The Company has US deferred tax assets, which have been offset by valuation allowance because of historical and expected losses. As the Company reverses its losses and becomes profitable, we will reassess the likelihood of recovering a portion or all of the deferred tax assets.
The Company recorded an income tax gain/expense of $0 resulting from operational results of its foreign entities for both three-month periods ended December 31, 2017 and 2016. As of December 31, 2017, and 2016, there was no significant liability for income tax associated with unrecognized tax benefits. As of December 31, 2017, IGC could not use its net operating losses.
NOTE 20 – SEGMENT INFORMATION
Accounting pronouncements establish standards for the manner in which public companies report information about operating segments in annual and interim financial statements. Operating segments are components of an enterprise that have distinct financial information available and evaluated regularly by the chief operating decision-maker (“CODM”) to decide how to allocate resources and evaluate performance. The Company’s CODM is considered to be the Company’s chief executive officer (“CEO”). The CEO reviews financial information presented on an entity level basis for purposes of making operating decisions and assessing financial performance. The Company has determined that it operates as two operating and reportable segments: Pharmaceutical, and Legacy. Therefore, the Company has commenced reporting two segments.
Our legacy infrastructure business (“Legacy”, “Legacy Business””) that consists of trading, real-estate management, and heavy equipment leasing is one operating and reportable segment. The other is the pharmaceutical segment that did not have revenue for the quarter ended December 31, 2017.
The following provides information required by ASC 280-10-50-38. Entity-Wide Information.
1) The table below shows revenue reported by product and service:
|
|
Three
months ended
December 31,
|
|
|
Nine months ended
December 31,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Pharmaceutical Business
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Operating income/(Loss)
|
|
|
(422,706
|
)
|
|
|
(243,917
|
)
|
|
|
(957,870
|
)
|
|
|
(711,950
|
)
|
Net Profit/(Loss)
|
|
|
(483,054
|
)
|
|
|
(285,592
|
)
|
|
|
(1,103,372
|
)
|
|
|
(838,774
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
762,009
|
|
|
$
|
249,801
|
|
|
$
|
1,050,582
|
|
|
$
|
487,364
|
|
Operating income/(Loss)
|
|
|
(50,668
|
)
|
|
|
(142,195
|
)
|
|
|
(117,251
|
)
|
|
|
(607,339
|
)
|
Net profit/(Loss)
|
|
|
(49,527
|
)
|
|
|
174,031
|
|
|
|
(107,619
|
)
|
|
|
(270,827
|
)
|
2(a) The following table presents revenue by geographic area as determined by where the customer is serviced:
|
|
Three
months ended
December 31,
|
|
|
Nine months ended
December 31,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
India
|
|
$
|
149,310
|
|
|
$
|
(15,886
|
)
|
|
$
|
382,580
|
|
|
$
|
103,132
|
|
Hong Kong
|
|
|
585,884
|
|
|
|
213,117
|
|
|
|
585,884
|
|
|
|
213,117
|
|
Malaysia
|
|
|
26,815
|
|
|
|
52,570
|
|
|
|
82,118
|
|
|
|
171,115
|
|
Total
|
|
$
|
762,009
|
|
|
$
|
249,801
|
|
|
$
|
1,050,582
|
|
|
$
|
487,364
|
|
In 2016 December Quarter, revenue of Techni Bharti Private Limited (IGC’s India- based subsidiary) is re-classified as other income.
2(b) The following table presents long-lived assets by geographic area:
|
|
As of December, 30
|
|
|
|
2017
|
|
|
2016
|
|
India
|
|
$
|
5,771,338
|
|
|
$
|
5,790,817
|
|
USA
|
|
|
2,090,978
|
|
|
|
3,334,509
|
|
Malaysia
|
|
|
248,023
|
|
|
|
207,427
|
|
Total
|
|
$
|
8,110,339
|
|
|
$
|
9,332,753
|
|
2(c)
The table below shows nine-month revenue reported by product and service for the period ended December 31, 2017:
Product & Service
|
|
Amount
|
|
|
% on total revenues
|
|
|
|
|
|
|
|
|
Trading
|
|
$
|
874,099
|
|
|
|
83
|
%
|
Real Estate
|
|
$
|
82,118
|
|
|
|
8
|
%
|
Rental
|
|
$
|
94,365
|
|
|
|
9
|
%
|
TOTAL
|
|
$
|
1,050,582
|
|
|
|
100
|
%
|
NOTE 21 – CERTAIN AGED RECEIVABLES
The receivable and other assets as of December 31, 2017 and March 31, 2017, include certain aged receivables in the amount of $437,571. The aged receivables are due from the Cochin International Airport. Cochin International Airport is partially owned by the State Government of Kerala. The receivables have been due for periods in excess of one year as of December 31, 2017. These receivables are included in accounts receivable and have been classified as current because the arbitration process has concluded, and ruling was given in our favor. The Company continues to carry the full value of the receivables without interest and without any impairment, because the Company believes that there is minimal risk that this organization will become insolvent and unable to make payment.
NOTE 22 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of the Company’s current assets and current liabilities approximate their carrying value because of their short-term nature. Such financial instruments are classified as current and are expected to be liquidated within the next twelve months.