Intangible assets, net

12 Months Ended

Mar. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

8.	Intangible assets, net

The following table summarizes the carrying amount of intangible assets:

	As of March 31, 2014
	Gross carrying		Accumulated		Impairment		Net carrying
	value		amortization		loss		value
	US$		US$		US$		US$
Customer contracts		12,383		12,383		-		-
Intellectual property		2,605,644		1,254,274		1,351,370		-
Total intangible assets, net		2,618,027		1,266,657		1,351,370		-

Customer contracts and intellectual property are amortized on a straight line basis over a period of three and seven years, respectively. The Company recognized amortization expense of intangible assets of US$414,959 and US$371,280 in fiscal 2013 and 2014, respectively.

The impairment loss relates to the Company’s subsidiary Vubites which enables businesses to advertise locally (targeted advertising in local and specific cities in India) on national television channels. Vubites offers web based tools for small businesses to create low cost advertisement for television broadcast. This business is dependent on effective splicing and sale to local businesses in different cities of broadcasting spots purchased from national television channels. The impairment resulted from similar targeted advertising services now being offered directly by the television channels and on account of aggressive sales and marketing strategy launched by competitors which have provided them with deeper market access. The fair value of the reporting unit is insignificant.