10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2013

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-53223

GBS ENTERPRISES INCORPORATED

 (Exact name of registrant as specified in its charter)

Nevada	27-3755055
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
585 Molly Lane Woodstock, GA	30189
(Address of principal executive offices)	(Zip Code)

 (404) 891-1711

(Registrant’s telephone number, including area code)

With a copy to:

Philip Magri, Esq.

The Magri Law Firm, PLLC

11 Broadway, Suite 615

New York, NY 10004

T: (646) 502-5900

F: (646) 826-9200

pmagri@magrilaw.com

www.MagriLaw.com

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨ Nox

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange ct. (Check one):

Large accelerated filer¨	Accelerated filer¨
Non-accelerated filer¨ (Do not check if a smaller reporting company)	Smaller reporting companyx

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes¨ No x

APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. As of August 15, 2013, there were 30,812,624 shares of common stock, par value $0.001 per share, of the Registrant issued and outstanding.

	TABLE OF CONTENTS
		Page No:
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65

2

EXPLANATORY NOTE

GBS Enterprises Incorporated, a Nevada corporation (the “Company”), is filing this Amendment No. 1 (this “Amendment No. 1”) to its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013 (the “Form 10-Q”), originally filed with the Securities and Exchange Commission on June 13, 2013 (the “Original Filing Date”), for the following purposes:

1.	To restate the financial statements for the quarter ended March 31, 2013 due to an error in the calculation of weighted shares resulting in erroneous earnings per share (EPS).
2.	To reformat the Statement of Operations as the “Statement of Operations and Consolidated Income/Loss” in accordance with ASC 220-10-45-1A
3.	To add the disclosure required by ASC 250-10-50-7 and ASC 250-10-50-8 to Note 4 to the financial statements.
4.	To revise the warrant table included under Note 22 of the financial statements..
5.	To furnish the Interactive Data File with detailed note tagging as Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the financial statements and related notes in the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).
6.	Correction of Note 24.

This Amendment speaks as of the Original Filing Date, does not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way, except as stated above, disclosures made in the Form 10-Q. No other changes have been made to the Form 10-Q.

Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the certifications required pursuant to the rules promulgated under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, which were included as exhibits to the Form 10-Q have been amended, restated and re-executed as of the date of this Amendment No. 1 and are included as Exhibits 31 and 32 hereto.

3

PART I - FINANCIAL INFORMATION

Item 1.          Financial Statements 

GBS Enterprises Incorporated

Interim Consolidated Financial Statements

March 31, 2013

(Unaudited)

4

GBS Enterprises Incorporated

Interim Consolidated Balance Sheets

March 31, 2013 (Unaudited and Restated) and December 31, 2012 (Audited and Restated)

	Restated			Restated
	March 31,			December 31,
	2013			2012
	$			$
Assets
Current Assets
Cash and cash equivalents - Note 6		738,369			1,154,602
Accounts Receivable - Note 7		3,205,807			4,143,448
Prepaid expenses - Note 8		214,435			84,304
Other  receivables current - Note 9		1,019,080			676,976
Assets held for sale		0			384,862
Total current assets		5,177,691			6,444,192
Non-Current Assets
Assets held for sale		0			1,846,645
Property, plant and equipment - Note  10		317,771			332,839
Other non-current receivables - Note 11		1,154			428,422
Deferred tax assets		1,104,222			1,132,103
Goodwill - Note 12		31,260,500			34,254,881
Software - Note 13		10,947,781			12,207,031
Other assets - Note 14		160,340			156,379
Total non-current assets		43,791,768			50,358,300
Total assets		48,969,459			56,802,492
Liabilities and stockholders' equity
Current liabilities
Notes payable - Note 15		260,421			2,313,572
Liabilities to banks - Note 16		9,293			6,774
Accounts payables and accrued liabilities - Note 17		3,662,133			6,241,733
Deferred income - Note 18		8,852,860			6,099,570
Other short term liabilities - Note 19		800,740			860,032
Due to related parties - Note 20		276,542			2,115,869
Liabilities held for sale		0			589,634
Total current liabilities		13,861,989			18,227,184
Non - Current liabilities
Liabilities to banks - Note 21		2,563,260			3,716,102
Retirement benefit obligation		160,874			165,876
Liabilities held for sale		0			159,898
Total non-current liabilities		2,724,134			4,041,876
Total liabilities		16,586,123			22,269,060
Stockholders' equity
Capital stock - Note 22
Authorized:
75,000,000 common shares of $.001 par value each
25,000,000 preferred shares of $.001 par value each
Issued and outstanding:
30,812,624   shares of common stock
(29,461,664  shares of common stock at December 31, 2012)		30,813			29,462
Additional paid in capital		50,055,132			49,691,195
Subscription Receivable		50,000			-
Accumulated deficit		(20,308,707	)		(18,974,582	)
Other comprehensive income		112,249			442,841
		29,939,487			31,188,916
Noncontrolling interest in subsidiaries		2,443,849			3,344,516
Total stockholders' equity		32,383,336			34,533,432
Total stockholders' equity and liabilities		48,969,459			56,802,492

Subsequent events - Note 26

5

GBS Enterprises Incorporated

Interim Consolidated Statements of Operations and Comprehensive Income/(Loss)

For the three months ended March 31, 2013 and March 31, 2012

(Unaudited and Restated) 

	Restated			Restated
	March 31,			March 31,
	2013			2012
	$			$
Revenues - Note 23
Products		4,373,010			5,593,365
Services		851,369			1,358,684
		5,224,379			6,952,049
Cost of goods sold
Products		857,275			1,916,624
Services		2,244,423			2,256,550
		3,101,698			4,173,174
Gross profit		2,122,681			2,778,875
Operating expenses
Selling expenses		2,371,530			4,178,185
Administrative expenses		1,500,042			1,473,647
General expenses		229,147			227,372
		4,100,719			5,879,204
Operating income (loss)		(1,978,038	)		(3,100,329	)
Other Income (expense) - Note 25
Other Income (expense)		173,479			14,501
Interest income		341			1,299
Interest expense		(177,036	)		(49,409	)
		(3,216	)		(33,609	)
Income (loss) before income taxes		(1,981,254	)		(3,133,938	)
Income tax (income) expense		(72,960	)		(659,341	)
Income (loss) before extraordinary items, discontinued operations		(1,908,294	)		(2,474,597	)
Discontinued operations - IDC		0			110,653
Discontinued operations - SD Holdings		0			67,005
Net income (loss) before extraordinary items		(1,908,294	)		(2,296,939	)
Extraordinary items (value adjustment on goodwill)		0			0
Net income (loss)		(1,908,294	)		(2,296,939	)
Net Loss Attributable to noncontrolling Interest		(574,169	)		(719,778	)
Net income (loss) attributable to stockholders		(1,334,125	)		(1,577,161	)
Net earnings (loss) per share, basic and diluted	$	(0.0447	)	$	(0.0578	)
Weighted average number of common stock  outstanding, basic and diluted		29,816,782			27,267,449
Statement of Comprehensive Income (Loss)
Net Income (Loss)		(1,908,294	)		(2,296,939	)
Foreign currency Translation Adjustment		(659,864	)		(255,818	)
Comprehensive income (loss)		(2,568,158	)		(2,552,757	)
Less: Net Income (Loss) attributable to noncontrolling interest		(574,169	)		(719,778	)
Less: Other Comprehensive Income (Loss) attributable to noncontrolling interest		(329,272	)		(127,653	)
Total Comprehensive income (loss) attributed to stockholders		(1,664,717	)		(1,705,326	)

6

GBS Enterprises Incorporated

Interim Consolidated Statements of Operations

For the three months ended March 31, 2013 and March 31, 2012

(Unaudited and Restated)

	Restated			Restated
	March 31, 2013			March 31, 2012
	$			$
Cash flow from operating activties
Net loss / net income		(1,908,294	)		(2,296,939	)
Adjustments
Deferred income taxes		27,881			(670,268	)
Depreciation and amortization		1,561,952			1,654,957
Consulting expense		70,000			-
Interest Expense		195,288			-
Losses from equity investment		-			(17,701	)
Loss on Sale of Assets		-
Minority interest losses		(900,667	)		(719,778	)
Changes in operating assets and liabilities
Accounts receivable and other assets		2,692,952			(2,622,458	)
Retirement benefit obligation		(5,002	)		(91,545	)
Inventories		-			(114,832	)
Accounts payable and other liabilities		(635,135	)		2,586,263
Net cash provided (used) by operating activities		1,098,975			(2,292,301	)
Net cash provided (used) by discontinued		-			177,658
Cash flow from investing activties
Sale of intangible assets		(2,756,006	)		(931,427	)
Purchase of property, plant and equipment		(31,639	)		(358,704	)
Write-down goodwill and intangibles		2,994,381			-
Proceeds from Sale of Subsidiaries		3,577,195			-
Increase in Financial assets		(427,267	)		1,548,234
Net cash provided (used) in investing activities		3,356,663			258,103
Cash flow from financing activties
Net borrowings - banks		(1,150,322	)		414,915
Other borrowings		(2,053,151	)		(1,381,821	)
Forgiveness of Debt		10,659			-
Capital paid-in		150,000			576,942
Loans from related party		(1,839,327	)		379,968
Net cash provided (used) in financing activities		(4,882,141	)		(9,996	)
Effect of exchange rate changes on cash		10,270			(34,414	)
Net increase (decrease) in cash		(416,233	)		(1,900,950	)
Cash and cash equivalents - Beginning of the quarter		1,154,602			3,142,308
Cash and cash equivalents - End of Quarter		738,369			1,241,358

7

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 1 COMPANY AND BACKROUND

GBS Enterprises Incorporated, a Nevada corporation, through its subsidiaries, is a global provider of technology solutions for businesses and government agencies. We focus on developing and delivering solutions that help our customers to gain value and reduce cost in the development, deployment and management of the applications used in the course of conducting their business (“business applications”). We do this by building software and providing services that aid in:

£ Information Technology (“IT”) systems analysis, planning and management;

£ Automating business processes;

£ Optimizing system and application performance;

£ Ensuring the security and compliance of systems, applications and processes; and

£ Migrating and integrating systems, applications and processes.

Our customers include corporate and government IT departments, solutions integrators (“SIs”) and independent software vendors (“ISVs”). Our corporate customers are from a variety of industries, including insurance, financial services, pharmaceuticals, healthcare, manufacturing, logistics, and education. The install-base of our software products spans more than 5,000,000 users in 38 countries on four continents. We principally market and sell our products and services directly in the United States, Canada, United Kingdom, Germany, Austria, Switzerland, the Nordics and India; and indirectly through local distributors and resellers representing Australia, South America and regionally in Europe.

Our software and services are designed to mainly serve organizations that have investments in IBM’s Lotus® Notes and Domino platform. The IBM Lotus® Notes and Domino platform is both a system for enterprise email as well as an application platform, meaning that it can be used as both an email system and an environment in which business applications can be deployed and used. This platform was originally brought to market by Lotus Development Corp. in 1989, and was subsequently acquired by IBM in 1995. According to Radiate, in 2011, IBM Lotus Domino will have a worldwide installed base of 189 million mailboxes. Currently, the installed base for On-Premises IBM Lotus Domino mailboxes represents the majority of worldwide IBM Lotus Domino mailboxes, accounting for 87% of worldwide IBM Lotus Domino mailboxes. By 2015, this percentage is expected to decrease to 80%, as hosted email grows in popularity. (The Radiate Group Inc., April 2011, “IBM Lotus Notes/Domino Market Analysis, 2011-2015“)

8

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

We, through our subsidiaries, have executed our strategy to acquire companies, which have developed software and specialized services for the Lotus Notes and Domino market. This growth by acquisition strategy has resulted in less competition for our software products; a large concentration of highly skilled employees with unique expertise in the area of Lotus Notes and Domino; staff and physical offices on three continents providing greater access to a global market; significant market awareness and greater market share amongst organizations that use Lotus Notes and Domino; and a comprehensive portfolio of solutions specific to the needs and requirements of organizations which use Lotus Notes and Domino.

While our products and services remain in use and demand, over the last several years, the market itself has been undergoing a paradigm shift. New technologies, especially in the areas of Cloud Computing and Mobile applications, have grown in popularity due to the potential cost savings and operational efficiencies they can offer. As organizations make investments in these new technologies, they are faced with highly complex and costly projects to migrate (“migration”) or replace their existing systems that don’t operate in the cloud or on mobile devices (“modernization”) – this includes their existing email and business applications that run on Lotus Notes and Domino.

To that end, we have acquired and developed technologies that help organizations reduce the time, cost, resources and risks associated with these highly complex migration and modernization projects.

General Corporate History

We were incorporated in Nevada on March 20, 2007 as SWAV Enterprises Ltd. (“SWAV”). SWAV was an importer and wholesaler of Chinese manufactured goods.

On April 26, 2010, SWAV purchased certain technology assets of Lotus Holdings Ltd. (“Lotus”) in exchange for 2,265,240 shares of SWAV common stock. Also on April 26, 2010, Lotus (on behalf of the SPPEF Members as discussed below) purchased an aggregate of 11,984,770 of the outstanding shares of common stock from the selling shareholders of SWAV for an aggregate of $370,000. As a result of the two sets of transactions, Lotus owned an aggregate of 14,250,010 shares of common stock of SWAV, representing approximately 95.0% of the 15,000,000 shares of SWAV common stock outstanding on April 26, 2010.

9

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

On September 6, 2010, SWAV’s name was changed to GBS Enterprises Incorporated. On October 14, 2010, the Company’s trading symbol on the OTC Bulletin Board was changed from SWAV to GBSX.

About Lotus Holdings, Ltd.

Lotus is a holding company which was formed under the laws of Gibraltar for the purpose of financing merger and acquisition projects, specifically in the niche market of small or microcap companies listed on the Frankfurt Stock Exchange with complex shareholder structures and whose stock is trading below one Euro (€1.00) per share.

SPPEFs

Lotus typically finances its merger and acquisition projects through the use of Special Purpose Private Equity Funds (“SPPEFs”). Typically, SPPEFs are funded by a company’s major shareholders (the “Major Shareholders”) seeking to raise capital for projects and who fund at least 50% of the SPPEF, with the remaining portion being provided through the investment community and network of investors in Lotus. Each SPPEF is co-managed by a representative of the company’s Major Shareholders (the “Representative Secretary”) and an attorney appointed by Lotus (the “Lotus Representative”).

On February 25, 2010, a group of shareholders (the “GROUP Major Shareholders”) of GROUP Business Software AG, a German public company trading on the Frankfurt Stock Exchange under the symbol “INW” (“GROUP”), engaged Lotus to provide financial consulting and advisory services, on a non-exclusive basis, for the primary task of establishing a SPPEF. On March 12, 2010, the GROUP Major Shareholders and Lotus established and funded a SPPEF with $1,400,000, consisting of $1,000,000 from the GROUP Major Shareholders and $400,000 from a Lotus investor (collectively, the “SPPEF Members”).

In early April 2010, the SPPEF Members decided to acquire SWAV. As disclosed above, on April 26, 2010, Lotus, on behalf of the SPPEF Members, acquired an aggregate of 11,984,770 shares of SWAV common stock from the selling shareholders of SWAV for an aggregate purchase price of $370,000. The 11,984,770 shares of SWAV common stock represented approximately 79.9% of the 15,000,000 outstanding shares of SWAV common stock on April 26, 2010. Upon the consummation of the acquisition, the then executive officers and directors of SWAV resigned and Mr. Joerg Ott, the Chief Executive Officer of GROUP and a GROUP Major Shareholder, was appointed the Chief Executive Officer of SWAV and sole member of SWAV’s Board of Directors.

10

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Transactions following the acquisition

On November 1, 2010, the Company repurchased an aggregate of 3,043,985 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for the 3,043,985 shares of the Company’s common stock, the Company issued to Lotus a Secured Demand Note, dated November 1, 2010 (the “First Demand Note”), for the principal amount of $300,000 bearing interest at the rate of 5% per annum. The First Demand Note was repaid in September 2011.

Effective December 30, 2010, pursuant to securities purchase agreements between the Company and six GROUP Major Shareholders, the Company purchased an aggregate of 7,115,500 shares of GROUP common stock from the six GROUP Major Shareholders in consideration for an aggregate for 3,043,985 shares of the Company’s common stock (the “December Transaction”). As a result the Company owned approximately 28.2% of the outstanding common stock of GROUP.

Reverse Merger

After the December Transaction was completed, the additional GROUP Major Shareholders accepted the share swap offer from the Company and effectuated a reverse merger of GROUP and the Company. To effectuate the reverse merger, on January 5, 2011, the Company repurchased from Lotus an aggregate of 2,361,426 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for these 2,361,426 shares, the Company issued to Lotus a Secured Demand Note, dated January 5, 2011 (the “Second Demand Note”), for the principal amount of $200,000 bearing interest at the rate of 5% per annum. The Second Demand Note was repaid in November 2011.

Effective January 6, 2011, pursuant to securities purchase agreements between the Company and the remaining GROUP Major Shareholders, the Company purchased an aggregate of 5,525,735 shares of GROUP common stock from the remaining GROUP Major Shareholders in consideration for an aggregate of 2,361,426 shares of the Company’s common stock (the “January Transaction”). The 5,525,735 GROUP shares represented approximately 21.9% of the outstanding shares of common stock of GROUP. As a result of the December Transaction and January Transaction, the Company purchased an aggregate of 12,641,235 shares of GROUP from the GROUP Major Shareholders in consideration for an aggregate of 5,405,411 shares of the Company’s common stock, resulting in the Company owning approximately 50.1% of the outstanding common stock of GROUP and effectuating a reverse merger of the Company and GROUP whereby GROUP became the accounting acquirer.

11

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Additional Acquisition

On February 27, 2012, the Company acquired an additional 883,765 shares of common stock of GROUP from GAVF LLC for an average purchase price of $.070 per share, or approximately $619,000, after an outstanding loan of GROUP was converted into an aggregate of 1,750,000 shares of GROUP common stock, thereby increasing GROUP’s outstanding common stock to 26,982,000 shares. By acquiring the new shares, the Company increased its ownership of GROUP common stock to an aggregate of 13,525,000 shares, representing approximately 50.1% of the outstanding common stock of GROUP.

Acquisition/Dissolution of Subsidiary Companies

Pavone AG

Effective April 1, 2011, the Company acquired 100% of the outstanding common shares of Pavone AG, a German corporation, for $350,000 in cash and 1,000,000 shares of its common stock. The fair value of the common stock was determined to be $4.90 per share, representing the market value at the end of trading on the date of the acquisition. The total value of the investment, including the assumption of $ 583,991 in debt was $5,843,991. Pavone’s extensive workflow software for Lotus Notes and Domino along with their large customer base is well suited to GBS Enterprises portfolio strategy. The acquisition of Pavone complements GBS's majority ownership in GROUP and the Company believes that it further strengthens their leading industry position on the IBM Lotus Platforms and expands their cloud computing technology offerings beyond the IBM Lotus market. Pavone currently has offices in Germany and the UK. They have over 2,500 customers and over 150,000 users worldwide.

GroupWare, Inc.

Effective June 1, 2011, the Company acquired 100% of the outstanding common shares of GroupWare, Inc., a Florida corporation (“GroupWare”). As consideration the Company paid $250,000 and issued 250,000 shares of its common stock. The fair value of the common stock was determined to be $4.34 per share, representing the market value at the end of trading on the date of the acquisition. The total value of the investment, including the assumption of $ 694,617 in debt was $ 2,029,617. Upon the consummation of the acquisition, the management and board of GroupWare resigned and Joerg Ott, the Company’s Chief Executive Officer and sole director, was appointed as the Chief Executive Officer and sole director of GroupWare. GroupWare is based in Lubeck, Germany with offices in St. Petersburg, Florida. GroupWare's ePDF server delivers centralized, network-wide PDF solutions for messaging, workflow, document, content and data management. The Company believes that the acquisition strengthens the GBS Modernizing/Migrating offering, which helps bring IBM Lotus Notes client applications to the web, by substituting traditional printing methods provided by the Notes client with simple-to-use print-to-PDF capabilities in the browser.

12

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

IDC Global, Inc.

On July 25, 2011, the Company acquired 100% of the issued and outstanding shares of common stock of IDC Global, Inc., a Delaware corporation. Pursuant to the acquisition agreement, dated July 15, 2011, the Company agreed to issue the shareholders an aggregate of 800,000 shares of common stock and made a cash payment of $750,000. The agreement required an additional payment to the management shareholders of 80,000 shares of common stock and signing bonuses to personnel of $35,000. The Company also agreed to reimburse IDC up to $25,000 for incurred accounting and legal fees related to the transaction. The fair value of the common stock was determined to be $3.70 per share, representing the market value at the end of trading on the date of the agreement. The total value of the investment, including $883,005 of debt assumption, was $4,066,000. IDC was a privately held company that provides nationwide network and data center services. IDC delivers customized, high availability technology solutions for WAN, Wireless Services, Co-location & Hosting, Managed Services, and Network Security. IDC Global includes two Data Center facilities located in the downtown Chicago area and Colocation facilities in three other Data Centers in New York, London, England and Frankfurt, Germany. IDC provides internet infrastructure Services (IaaS) to the business community helping customers make the transition from large, static and expensive on-premise computing to dynamic, flexible and cost-effective off-premise computing. IDC is helping customers make the transition from large, static and expensive on-premise computing to dynamic, flexible and cost-effective off-premise computing.

Due to the Company’s perceived increase in the demand for Modernization, Mobility and Optimization offerings, the Company made a strategic decision in 2012 to focus on its core offerings in the IBM Notes and Domino market and to divest its non-core businesses, including IDC.

On February 1, 2013, GBS entered into a Stock Purchase Agreement, dated February 1, 2013 (the “Agreement”), with IDC Global, Inc., a Delaware corporation and a wholly-owned subsidiary of GBS (“IDC”), and Global Telecom & Technology Americas, Inc., a Virginia corporation (“GTT). Pursuant to the Stock Purchase Agreement, we sold 100% of the issued and outstanding capital stock of IDC to GTT for an aggregate purchase price of $4,600,000 (the “Purchase Price”), subject to certain holdback provisions amounting to $1.093 million as described more fully in the Stock Purchase Agreement. The Purchase Price is also subject to adjustment on a dollar-for-dollar basis for adjustments the Net Working Capital (defined as Current Assets minus Current Liabilities) of IDC by GTT within 90 days of closing.

13

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

SD Holdings, Ltd.

On September 27, 2011, the Company entered into an acquisition agreement with SD Holdings, Ltd. (“SYN”), a Mauritius corporation, and the shareholders of SYN owning 100% of issued and outstanding shares of SYN. SYN owns 100% of all issued and outstanding shares of Synaptris, Inc., a California corporation (“Synaptris”), and 100% of all issued and outstanding shares of Synaptris Decisions Private Limited, a company formed in India (“Synaptris India”). Pursuant to the acquisition agreement, the Company purchased one hundred percent (100%) of the issued and outstanding shares of SYN (“SYN Shares”) effective November 1, 2011 in consideration for $525,529 and agreed to issue 700,000 shares of common stock, subject to adjustment. Actual shares issued were 612,874. The fair value of the common stock was determined to be $2.05 per share, representing the market value at the end of trading on the date of the agreement.

On April 1, 2012, the Company sold SYN, Synaptris and Synaptris India for $1,877,232 to Lotus Holding, Ltd. in an effort to restructure the Company’s multilevel subsidiary - structure derived from the historical mergers and acquisitions, and to reduce overhead and administrative costs.

GBS India Private Limited

Pursuant to an existing transfer agreement, effective July, 1, 2012, the Company entered into a purchase agreement with SYN for $1,877,232, which transferred all assets, including intellectual property rights, and liabilities of the IntelliPRINT and FewClix product lines, customer contracts and certain employees for operations in a new subsidiary, GBS India Private Limited, an incorporated entity formed under the Indian Companies Act 1956 (“GBS India”). A royalty fee in the amount of approximately $350,000 has been agreed upon for the benefit the Company. Additionally a profit based fee of up to $700,000 may be earned based on license and revenue recognized from the sold IntelliVIEW and IntelliVIEW NXT products.

On August 1, 2012, the Company acquired 100% of the outstanding shares of capital stock of GBS India. We anticipate GBS India’s presence in India to accelerate our plan to expand our product development team particularly for our strategic offerings in India.

14

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Pavone AG/Groupware AG

On July 6, 2012 and August 9, 2012 wholly-owned subsidiaries Pavone AG and Groupware AG, respectively, were merged into Pavone GmbH. The mergers were consummated solely for administrative purposes. Pavone GmbH is a wholly-owned subsidiary of the Company.

Pavone, Ltd.

The Company serves the UK market with GROUP’s subsidiary GBS, Ltd. Therefore, subsidiary Pavone, Ltd, as being a shell company, was dissolved on July 8, 2012.

EbVokus, GmbH.

On October 1, 2012, GROUP Business Software AG sold all of the software and operational  assets (constituting substantially all of the assets) of its wholly-owned subsidiary, ebVokus GmbH, along with the associated maintenance and project agreements to a non-affiliated third party for a purchase price of approximately $459,000, approximately $258,000 (200,000 Euros: 1 EUR = $1.29 USD on October 1, 2012) was paid at closing and the remaining $201,000 was paid on February 15, 2013 (150,000 Euro: 1EUR = $1.35 USD on February 15, 2013).

B.E.R.S. AD

On November 23, 2012 GROUP Business Software AG sold its entire participation (50%) in B.E.R.S AD for a total of 25,000 BGN.

Note 2 INTERIM REPORTING

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. They do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, they include all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. These interim financial statements follow the same accounting policies and methods of their application as the Company’s audited financial statements. All adjustments are of a normal recurring nature.

15

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that can be expected for the year ending December 31, 2013.

Note 3 ACCOUNTING POLICIES

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, the more significant of which are as follows:

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segment Reporting

The Financial Accounting Standards Board (“FASB”) authoritative guidance regarding segment reporting establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company has determined that it operates in only one segment – the development and maintenance of computer software programs and support products.

Comprehensive Income (Loss)

The Company adopted the FASB Codification topic (“ASC”) 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Company’s other comprehensive income represents foreign currency translation adjustments and small net actuarial losses on pension plans.

16

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Net Income per Common Share

ASC 260, “Earnings per share”, requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. Accordingly, although the diluted weighted average number of common stock outstanding is disclosed on the statements of operation, the calculated net loss per share is the same for both the basic and diluted as both are based on the basic weighted average of common stock outstanding. There were no adjustments required to net income for the period presented in the computation of diluted earnings per share.

Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts and other receivable, financial assets, notes payable, liabilities to banks, accounts payable, accrued liabilities and other liabilities, due to related parties and retirement benefit obligations. Financial assets and liabilities are measured upon first recognition and reviewed at the financial statement date. Changes in fair value are recognized through profit and loss. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

Currency Risk

We use the US dollar as our reporting currency. The functional currencies of our significant foreign subsidiaries are the local currency, which includes the Euro, the British Pound, the Indian Rupee, and the Bulgarian Lev. Accordingly, some assets and liabilities are incurred in those currencies and we are subject to foreign currency risks.

Fair Value Measurements

The Company follows ASC 820, “Fair Value Measurements and Disclosures”, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

17

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Inventories

Pursuant to ASC 330 (Inventories), inventories held for sale are recognized under inventories. Inventories were measured at the lower of cost or market. Cost is determined on a first-in-first out basis, without any overhead component.

Goodwill and other Intangible Assets

Intangible assets predominately comprise goodwill, acquired software and capitalized software development services. Intangible assets acquired in exchange for payment are reflected at acquisition costs. If the development costs can be capitalized per ASC 985-20-25, these are reflected as ascribable personnel and overhead costs.

Company created software can be intended for sale to third parties or used by the Company itself. If the conditions for capitalization are not met, the expenses are recorded with their effect on profit in the year in which they were incurred.

The Company amortizes intangible assets with a limited useful life to the estimated residual book value in accordance with ASC regulations. In addition, in special circumstances according to ASC 350-30, a recoverability test is performed and, if applicable, unscheduled amortization is considered.

The useful life of acquired software is between three and five years and three years for Company created software.

18

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Intangible assets obtained as part of an acquisition which do not meet the criteria for a separate entry are identified as goodwill. Goodwill is reviewed once a year during an impairment test, whereby the appraised fair value of the invested capital of the reporting unit, is compared with the carrying (book) value of its invested capital amount (including goodwill.) Use value is generally applied in order to determine the recoverability of goodwill and intangible assets with an indefinite useful life. The projected financial plan prepared by the management serves as the basis for this determination of use value and the planning assumptions are each adjusted for the current state of knowledge. Reasonable assumptions regarding macroeconomic trends and historical developments are taken into account in making these adjustments. Future estimated cash flows are determined based on the expected growth rates of the markets in question.

If the carrying amount of the reporting unit exceeds the appraised fair value, the impairment based on use value measures the amount of loss, if any, and an unscheduled amortization expense is recorded. If the appraised value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired.

Property, Plant and Equipment

Property, plant and equipment are valued at acquisition or manufacturing costs reduced by scheduled and, if necessary, unscheduled depreciation. Fixed assets are depreciated on a straight-line basis, prorated over their expected useful life. Scheduled depreciation for property, plant and equipment is based on useful lives of 3 to 10 years. Leasehold Improvements are depreciated up to 40 years.

If fixed assets are sold, retired or scrapped, the profit or loss arising from the difference between the net sales proceeds and the residual book value are included under other operating earnings and expenses.

Impairment or Disposal of Long-Lived Assets

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC topic, 360.10. This guidance requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its’ expected cash flows or appraised value In this instance, the asset is considered to be impaired and is written down to fair value.

Revenue Recognition

Sources of Revenues:

19

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

License revenues

Our license revenues consist of revenues earned from the licensing of our software products. These products are generally licensed on a perpetual basis. Pricing models have generally been based either upon the physical infrastructure, such as the number of physical desktop computers or servers, on which our software runs or on a per user basis. License revenues are recognized when the elements of revenue recognition for the licensed software are complete, generally upon electronic shipment of the software and the software key to provide full access to all functionalities for our customers. In general, our invoices reflect license, service and maintenance components. In the case of multi element contracts, the revenues allocated to the software license in most cases represent the residual amount of the contract after the fair value of the other elements has been determined. Certain products of our software offering are licensed on a subscription basis.

Software maintenance revenues

Software maintenance revenues are recognized ratably on a pro-rata basis over the range of the contract period. Our contract periods typically range from one to five years. Vendor-specific objective evidence (“VSOE”) of fair value for software maintenance services is established by the rates charged in stand-alone sales of software maintenance contracts or the stated renewal rate for software maintenance. Customers who are party to software maintenance agreements with us are entitled to receive support, product updates and upgrades on a when-and-if-available basis.

Professional services revenues

Professional services include pre-project consulting, software design, customization, project management, implementation and training. Professional services are not considered essential to the functionality of our products, as these services do not alter the product capabilities and may be performed by our customers or by other vendors. Professional services engagements performed for a fixed fee, for which we are able to make reasonably dependable estimates of progress toward completion, are recognized on a proportional performance basis based on hours incurred and estimated hours of completion. Professional services engagements that are on a time and materials basis are recognized based on hours incurred. Revenues on all other professional services engagements are recognized upon completion. Our professional services may be sold with software products or on a stand-alone basis. Vendor Specific Objective Evidence (VSOE) of fair value for professional services is based upon the standard rates we charge for such services when sold separately.

20

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Foreign Currency Translation

The functional currency of the Company is US dollars. For financial reporting purposes, the financial statements of the subsidiary companies whose functional currency is other than US dollars were translated into US dollars using the current rate method. Assets and liabilities were translated at the exchange rates at the balance sheet dates, revenue and expenses were translated at the average exchange rates and stockholders’ equity was translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity.

Other Provisions

According to FASB ASC 450 “Contingencies”, provisions are made whenever there is a current obligation to third parties resulting from a past event which is likely in the future to lead to an outflow of resources and of which the amount can be reliably estimated. Provisions not already resulting in an outflow of resources in the following year are recognized at their discounted settlement amount on the financial statement date. The discount taken is based on market interest rates. The settlement amount also includes the expected cost increases. Provisions are not set off against contribution claims. If the amended estimate leads to a reduction of the obligatory amount, the provision is proportionally reversed and the earnings are recognized in other operating earnings.

Deferred Taxes

Income taxes are provided in accordance with FASB Codification topic 740, “Accounting for Income Taxes”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss-carry forwards.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that, that some portion or all of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.

Recent Accounting Pronouncements

In July 2012, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. With the objective of reducing the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-loved asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more-likely-than-not threshold is defined as having the likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed beginning April 1, 2013. Adoption of this new standard is not expected to have significant impact to the Company’s financial statement.

21

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Off - Balance Sheet Arrangements

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

Principles of Consolidation and Reverse Acquisition

As previously disclosed, the Company has exchanged a total of 5,405,411 shares of common stock in exchange for 50.1% of the outstanding common shares of GROUP. Although the Company was the legal acquirer, the transaction was accounted for as a recapitalization of GROUP in the form of a reverse merger, whereby GROUP becomes the accounting acquirer and is deemed to have retroactively adopted the capital structure of the Corporation. Accordingly, the accompanying consolidated financial statements reflect the historical consolidated financial statements of GROUP for periods presented prior to January 6, 2011. All costs associated with the reverse merger transaction were expensed as incurred. Those expenses totaled approximately $300,000 and were included in professional fees in administrative expenses.

The Company has based its financial reporting for the consolidation with GROUP in accordance with the FASB ASC 805-40 as it relates to reverse acquisitions. Goodwill has been measured as the excess of the fair value of the consideration effectively transferred by the Company, the acquiree, for financial reporting purposes, over the net amount of the Company’s recognized identifiable assets and liabilities.

We have recorded the acquired assets and liabilities of Group Business Software Enterprises, Inc. on the acquisition date of January 6, 2011, at their fair value and the operations of Group Business Software Enterprises, Inc. have been included in the consolidated financial statements since the acquisition date.

The assets and liabilities of GROUP, the acquirer for financial reporting purposes, are measured and recognized in the consolidated financial statements at their precombination carrying amounts in accordance with ASC 805-40-45-2(a). Therefore, the non-controlling interest reflects the non-controlling shareholders’ proportionate interest in the pre-combination carrying amounts of GROUP’s net assets even though the non-controlling interests in other acquisitions are measured at their fair values at the acquisition date.

22

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 4 CHANGE IN ACCOUNTING POLICIES

Fiscal reporting

Effective September 19, 2012, the Company changed its fiscal year end from March 31 to December 31. Prior to this change, the company’s subsidiaries, with the exception of SD Holdings, had fiscal year ends of December 31 and in reporting its financial statements, the Company, through the use of Regulation S-X Rule 3A-02 (“the 93 day rule”), consolidated those subsidiaries without any adjustments for timing differences in the period ends. This application was in error. With the change in year end, the Company retroactively adjusted previously released financial statements to reflect this change beginning December 31, 2010. Accordingly, the financial statements for the year ended December 31, 2012 and 2011, include the accounts of all consolidated companies for the same twelve month period beginning January 1, 2012 and 2011 respectively. The Balance Sheets as at December 31, 2012 and December 31, 2011 have also been adjusted to include the accounts of all consolidated companies as of those dates.

In accordance with ASC 250, effects of this restatement to the respective statements are shown below:

	For the three months ended
	Restated			Originally Filed
	March 31, 2013			March 31, 2013			Difference
	$			$			$
Assets
Current Assets
Cash and cash equivalents		738,369			738,369			0
Accounts receivable		3,205,807			3,205,807			0
Prepaid expenses		214,435			214,435			0
Other receivables		1,019,080			1,019,080			0
Total current assets		5,177,691			5,177,691			0
Equity investments in related parties								0
Property, plant and equipment		317,771			317,771			0
other non-current receivables		1,154			1,154			0
Deferred tax assets		1,104,222			1,104,222			0
Goodwill		31,260,500			31,260,500			0
Software		10,947,781			10,947,781			0
Other assets		160,340			160,340			0
Total non-current assets		43,791,768			43,791,768			0
Total assets		48,969,459			48,969,459			0
Liabilities and shareholders' equity
Current liabilities
Notes payable		260,421			260,421			0
Liabilities to banks		9,293			9,293			0
Accounts payable and accrued liabilities		3,662,133			3,662,133			0
Other liabilities		800,740			800,740			0
Deferred income		8,852,860			8,852,860			0
Due to related parties		276,542			276,542			0
Total current liabilities		13,861,989			13,861,989			0
Liabilities to banks		2,563,260			2,563,260			0
Deferred tax liabilities		0			0			0
Retirement benefit obligation		160,874			160,874			0
Other liabilities		0			0			0
Total non-current liabilities		2,724,134			2,724,134			0
Total liabilities		16,586,123			16,586,123			0
Shareholders' equity
Capital Stock
Authorized:
75,000,000 common shares and
25,000,000 preferred shares each with a
par value of $.001
Issued and outstanding
30,812,624 common shares
		30,813			30,813			0
Additional paid in capital		50,055,132			50,055,132			0
Subscription Receivable		50,000			50,000
Accumulated deficit		(20,308,707	)		(20,308,707	)		0
Other comprehensive income		112,249			112,249			0
Total shareholders' equity		29,939,487			29,939,487			0
Noncontrolling interest in subsidiaries		2,443,849			2,443,849			0
Total equity and liabilities		48,969,459			48,969,459			0

23

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

	For the three months ended
	Restated			Originally Filed
	March 31, 2013			March 31, 2013			Difference
	$			$			$
Net sales		5,224,379			5,224,379			0
Cost of goods sold		3,101,698			3,101,698			0
Gross profit		2,122,681			2,122,681			0
Operating expenses
Selling expenses		2,371,530			2,371,530			0
Administrative expenses		1,500,042			1,500,042			0
General expenses		229,147			229,147			0
		4,100,719			4,100,719			0
Operating income		(1,978,038	)		(1,978,038	)		0
Other Income (expense)
Other Income (expense)		173,479			173,479			0
Interest income		341			341			0
Interest expense		(177,036	)		(177,036	)		0
		(3,216	)		(3,216	)		0
Income (loss) before income taxes		(1,981,254	)		(1,981,254	)		0
Income tax (income) expense		(72,960	)		(72,960	)		0
Net income (loss)		(1,908,294	)		(1,908,294	)		0
Net income (loss) attributable to non controlling interest		(574,169	)		(574,169	)		0
Net income (loss) attributable to shareholders		(1,334,125	)		(1,334,125	)		0
Other comprehensive income (loss)		(659,864	)		(659,864	)		0
Net income (loss) and comprehensive income (loss) attributed to shareholders		(1,664,717	)		(1,664,717	)		0
Basic and diluted income (loss) per share		(0.0447	)		(0.509	)		.464
Weighted average number of shares outstanding		29,816,782			24,847,525			4,969,257

24

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

	For the three months ended
	Restated			Originally Filed
	March 31, 2013			March 31, 2013			Difference
	$			$			$
Cash flow from operating activities
Net loss / net income		(1,908,294	)		(1,908,294	)		0
Adjustments
Deferred income taxes		27,881			27,881			0
Depreciation and amortization		1,561,952			1,561,952			0
Consulting Expense		70,000			70,000			0
Interest Expense		195,288			195,288			0
Minority interest losses		(900,667	)		(900,667	)		0
Changes in operating assets and liabilities
Accounts receivable and other assets		2,692,952			2,692,952			0
Retirement benefit obligation		(5,002	)		(5,002	)		0
Inventories		0			0
Accounts payable and other liabilities		(635,135	)		(635,135	)		0
Net cash provided by operating activities		1,098,975			1,098,975			0
Cash flow from investing activities
Purchase (sale) of intangible assets		(2,756,007	)		(2,756,007	)		0
Purchase of property, plant and equipment		(31,639	)		(31,639	)		0
Sale (Purchase) of subsidiaries		3,577,195			3,577,195			0
Write-down goodwill and intangibles		2,994,381			2,994,381			0
Purchase of financial assets		(427,267	)		(427,267	)		0
Net cash used in investing activities		3,356,663			3,356,663			0
Cash flow from financing activities
Net borrowings - banks		(1,150,322	)		(1,150,322	)		0
other borrowings		(2,053,151	)		(2,053,151	)		0
Forgiveness of Debt		10,659			10,659
Capital paid-in		150,000			150,000
Loans from related parties		(1,839,327	)		(1,839,327	)
Net cash used in financing activities		(4,882,141	)		(4,882,141	)		0
Effect of exchange rate changes on cash		10,270			10,270			0
Net increase in cash		(416,233	)		(416,233	)		0
Cash and cash equivalents - Beginning of the period		1,154,602			1,154,602			0
Cash and cash equivalents - End of period		738,369			738,369			0

Explanation of Differences:

Weighted Average Shares/ Earnings per Share

The 3/31/13 financials were restated due to an error in the calculation of weighted shares resulting in erroneous earnings per share.

Note 5 SUBSIDIARY COMPANIES 

The subsidiaries listed below were included in the basis of consolidation (KUSD = 1,000’s of US Dollars):

		Stockholders'								Profit
		Equity			Percentage of					of the				Date
		as of			Subscribed Capital					consolidated				of the
	Headquarters	03/31/13 KUSD			KUSD		in %			quarter KUSD			Ownership	First Consolidation
GROUP Business Software (UK) Ltd.	Manchester		(1,330	)		23		50.1	%		(77	)	I	12/31/2005
GROUP Business Software Corp.	Woodstock		(12,962	)		1		50.1	%		(634	)	I	12/31/2005
Permessa Corporation	Waltham		(5	)		0		50.1	%		0		I	9/22/2010
Relavis Corporation	Woodstock		(819	)		2		50.1	%		(10	)	I	1/8/2007
GROUP Business Software AG	Eisenach		12,516			36,107		50,1	%		(102	)	I	6/1/2011
Pavone GmbH	Boeblingen		(1,165	)		47		100	%		22		D	1/4/2011
Groupware Inc.	Woodstock		(482	)		1		100	%		0		D	1/6/2011
GBS India	Chennai		93			14		100.	%		(9	)	D	9/30/2012

D - Direct Subsidiary

I - Indirect Subsidiary

Indirect Subsidiaries are owned 50.1% through GROUP Business Software AG

25

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 6 CASH AND CASH EQUIVALENTS

As of the financial statement date, the Company’s cash and cash equivalents totaled 738 KUSD (December 31, 2012 restated year end: 1,155 KUSD). Included in that amount are cash equivalents of 3 KUSD (December 31, 2012 restated year end: 3 KUSD).

Note 7 ACCOUNTS RECEIVABLE

As of the financial statement date, Accounts Receivable was 3,206 KUSD (December 31, 2012 restated year end: 4,143 KUSD). Receivables are generally measured at their nominal value and taking into account all foreseeable risks. Probable default risks are handled with specific allowances for bad debts. With regard to the trade receivables which are neither impaired nor delinquent, there are no indications as of the financial statement date that the debtors will not meet their payment obligations.

Note 8 PREPAID EXPENSES

Prepaid expenses in the amount of 214 KUSD were primarily recorded for prepaid rent, insurance and advance on technological collaboration events (December 31, 2012 restated year end: 84 KUSD).

Note 9 OTHER RECEIVABLES - CURRENT

Other Receivables as of the financial statement date were 1,019 KUSD (December 31, 2012 restated year end: 677 KUSD). The largest individual item under other receivables represents receivables from the sale of IDC Global (517 KUSD), a recoverable receivable from a previous insolvency (439 KUSD). Also included are tax assets (37 KUSD) and other prepaid costs (26 KUSD).

26

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 10 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are measured at cost less scheduled straight-line depreciation. Depreciation of the computer hardware listed as office equipment is distributed over a period of three to five years. The depreciation period for other office equipment is three to ten years. Office furnishings are depreciated over a period of eight to ten years. Leasehold Improvements are depreciated up to 40 years.

Property, Plant and Equipment kUSD	Development of the cost			Development of accumulated depreciation			Balance
Restated 12/31/2012		7,206.5			6,873.7			332.8
Additions		23			14
Disposals		(36	)		(6	)
Currency differences		9			3
Reclassifications		0			0
Updated 03/31/2013		7,202.5			6,884.7			317.8

Note 11 OTHER RECEIVABLES NON-CURRENT

The major components of the Non-current Receivables include the following:

OTHER RECEIVABLES NON-CURRENT
	KUSD		KUSD Restated
	3/31/2013		12/31/2012
Cooperative shares		1		1
Intercompany Loan Values during the quarter		0		0
Other long term receivables		0		427
Balance		1		428

27

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 12 GOODWILL

Goodwill derives from the following business acquisitions:

March 31, 2013	Date of first Consolidation	1/1/2013		Additions		Adjustments			Written off as impaired		3/31/2013
GROUP Business Software AG	01/06/11		18,425.6		-		-			-		18,425.6
GROUP Business Software (UK) Ltd.	12/31/05		2,765.1		-		-			-		2,765.1
Permessa Corporation	09/22/11		2,387.4		-		-			-		2,387.4
Pavone GmbH	01/04/11		5,950.5		-		-			-		5,950.5
IDC Global Inc.	07/25/10		2,994.4		-		(2,994	)		-		-
GBS India	8/1/2012		1,731.9		-		-			-		1,731.9
			34,254.9		-		(2,994.4	)		-		31,260.5

	Date of
	first								Written off
December 31, 2012	Consolidation	1/1/2012		Additions		Adjustments			as impaired		12/31/2012
GROUP Business Software AG	1/6/2011		20,194.4		618.6		(2,387.4	)		-		18,425.6
GROUP Business Software Corp	12/31/2005		2,177.5		-		-			2,177.5		-
GROUP Business Software (UK) Ltd.	12/31/2005		2,765.1		-		-			-		2,765.1
evVokus Software GmbH	10/1/2005		443.6		-		(443.60	)		-		-
Permessa Corporation	20110-09-22		2,387.4		-		-			-		2,387.4
Pavone GmbH	1/4/2011		5,950.5		-		-			-		5,950.5
IDC Global Inc.	7/25/2010		2,994.4		-		-			-		2,994.4
SD Holdings	2011-09.27		2,213.1		-		(2,213.1	)		-		-
GBS India	8/1/2012		-		1,731.9		-			-		1,731.9
			39,126.0		2,350.5		(5,044.1	)		2,177.5		34,254.9

Note 13 SOFTWARE

Development costs

The costs of developing new software products and updating products already marketed by the Company are generally recognized as expenses in the period in which they arise. Provided they meet the conditions for capitalization as per FASB ASC 985-20-25, they are capitalized. Capitalized development costs can be attributed to the defined products. These products are technically realizable and there is a target market for them.

The development costs arising in the reporting period result from the personnel costs attributed to the development work as well as overhead costs, provided that these are related to the development work and do not represent general administrative costs. The ascribable overhead costs are directly recognized.

Capitalized development costs are generally amortized over a period of three years starting with the date of marketability of the new products or major releases.

28

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Concessions, Industrial Property Rights, Licenses

The intangible financial assets carried in this item are licenses acquired in exchange for payment.

These financial assets are measured at acquisition cost less scheduled straight-line amortization. The assets added in the scope of the cost price allocation of the business divisions acquired this year.

The useful life spans were based uniformly throughout the Company according to those used by the parent company. Scheduled amortization is performed over a period from three to ten years.

The useful life of the domain “gbs.com”, was estimated as unlimited. This is because no other legal, contractual or other factors exist which would limit its useful life. It is not systematically amortized, but rather annually. Should there exist signs indicating towards impairment it is tested for recoverability and, if necessary, written down to the amount which could be obtained for it if sold.

Amortization of concessions, industrial property and similar rights and assets, as well as licenses to such rights and assets are presented in the profit and loss statement under "Depreciation and Amortization."

Concessions and licenses kUSD	Development of the cost			Development of accumulated depreciation		Balance
Restated 12/31/2012		33038.7			20,831.7		12,207.0
Additions		120			98		22
Disposals		(1,420	)		122		(1,298	)
Currency differences		143			126		17
Reclassifications		0			0		0
Updated 03/31/2013		31,881.7			21,177.7		10,948.0

Note 14 OTHER ASSETS

The balance of this account of 160 KUSD primarily includes rent and other security deposits (December 31, 2012 restated year end: 156 KUSD).

29

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 15 NOTES PAYABLE

As described more fully in Note 22, a breakdown of the Notes Payable of $260,421 at March 31, 2013 (December 31, 2012 restated year end: $2,313,572) is as follows:

	Loan			Accrued
		$		$		$
	7/5/2012		250,000		10,421		260,421
	10/26/2012		1,000,000		36,165		1,036,165
	11/30/2012		500,000		8,493		508,493
	11/30/2012		500,000		8,493		508,493
Balance at December 31, 2012			2,250,000		63,572		2,313,572
Accrued Interest converted into shares					36,165
Payments made through March 31, 2013			2,000,000		16,986		2,053,151
Balance at March 31, 2013			250,000		10,421		260,421

Note 16 LIABILITIES TO BANKS – CURRENT

Included in this account is an operating line of credit of 5 KUSD (December 31, 2012 year end: 5 KUSD) bearing interest at a 3.25% daily periodic rate with a credit limit of 100 KUSD. Also included are checks in transit as of the financial statement date (4 KUSD).

Note 17 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Trade payables

As of the financial statement date, trade accounts payable amounted to 1,677 KUSD (December 31, 2012 restated year end: 3,274 KUSD). Trade payables are carried at their repayment amount and all have a residual term of up to one year.

30

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Other Accrual

Other provisions are created as of the financial statement date in an amount necessary according to a reasonable commercial appraisal, to cover future payment obligations, perceivable risks and uncertain liabilities of the Company. Amounts deemed to be most likely to occur, in careful assessment, are accrued.

USD	Status									Currency		Status
	12/31/2012		Utilization			Dissolution		Increase		Differences		3/31/2013
Tax provision		57		(57	)		0		55		0		55
Salary		861		(861	)		24		434		16		426
Vacation		315		(303	)		30		258		12		253
Workers Compensation Insurance Association		25		(21	)		0		25		1		30
Compensation Levy for Non-Employment of Severely Handicapped Persons		19		(16	)		0		17		0		21
Outstanding Invoices		1,059		(1,056	)		60		489		22		454
Annual Financial Statement Costs		128		(186	)		0		180		4		126
Other Provisions		446		(221	)		0		118		6		349
Warranties		96		(16	)		0		6		41		127
Gesture of Goodwill		0		0			0		0		0		0
Provision for Legal Costs		73		(4	)		0				5		74
Severance		70		(70	)		0		70		0		70
Total		3,149		(2,811	)		114		1654		107		1,985

Provisions for salaries of 426 KUSD (December 31, 2012 restated year end: 861 KUSD) include the provisions created for the variable salaries of the sales staff for the sales objectives reached in this business period.

Vacation provisions of 253 KUSD (December 31, 2012 restated year end: 315 KUSD) include the obligations of GROUP’s companies to their employees for remaining vacation claims from the reporting period. The amount of the provision is calculated on the gross salary of the individual employee plus the employer contribution to social security/Medicare and based on the unused vacation days as of the financial statement date.

For liabilities not yet settled, a provision totaling 454 KUSD (December 31, 2012 restated year end: 1059 KUSD) was created.

Other Provisions of 349 KUSD (December 31, 2012 restated year end: 446 KUSD) include miscellaneous provisions.

Expenses for the audit of the Company and preparation of the annual consolidated financial statements were recognized at 126 KUSD (December 31, 2012 restated year end: 128 KUSD).

31

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

A provision for anticipated legal consulting of 74 KUSD was recorded (December 31, 2012 restated year end: 73 KUSD).

For warranty claims, a provision of 127 KUSD (December 31, 2012 restated year end: 96 KUSD) was created determined by service income.

Note18 DEFERRED INCOME

Accruals for future periods leading to realization of sales after the financial statement date are reported under deferred income. The deferred income items listed as of the financial statement date in the amount of 8,853 KUSD (December 31, 2012 restated year end: 6,100 KUSD) primarily include maintenance income collected in advance for the period after the end of the financial statement date. They are amortized on a straight-line basis over their respective contract terms.

Note 19 OTHER SHORT TERM LIABILITIES

Other short-term liabilities of 801 KUSD (December 31, 2012 restated year end: 860 KUSD) includes the following obligations and payments currently due:

Other Short-Term Liabilities	3/31/2013
	KUSD
Purchase Assets Permessa		538
Tax Liabilities/Credits		(57	)
Purchase Archiving Software		320
Other Liabilities		0
		801

Note 20 DUE TO RELATED PARTIES

Related parties basically refer to the Board of Directors, Supervisory Board, stockholders and associated companies.

32

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Business transactions between the companies and its subsidiaries which are also considered to be related companies were eliminated through the consolidation and are not reflected within these footnotes to the consolidated statements.

Remuneration of the management occupying key positions in the Corporation subject to disclosure includes the remuneration of the Board of Directors and that of the Supervisory Board.

			12/31/2012
	3/31/2013 KUSD		Restated KUSD
Accounts payable and accruals
Green Mind Ventures		0		72.0
Vitamin-B Venture Gmbh		0		493.6
Board of Directors fees and expenses		224.5		110.4
Notes payable – see below		52.0		1,391.8
Due to associated company		0		48.1
		276.5		2,115.9

	Date of Loan		Principal		Interest Accrued		Total		Due Date
			$		$		$
Total		7/5/2012		50,000		2,084		52,084		1/5/2013

33

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 21 LIABILITIES TO BANKS – NON-CURRENT

Liabilities to banks as of the financial statement date was 2,563 KUSD (December 31, 2012 restated year end: 3,716 KUSD) represent bank obligations of GROUP AG with Baden-Württembergische Bank with a credit line totaling approx. 3,844 KUSD (3,000 KEUR) and are collateralized by a silent blanket agreement for GROUP AG’s trade receivables. The loan is provided with approx. 2,563 KUSD (2,000 KEUR) as an asset backed security and with 1,281 KUSD (1,000 KEUR) as a credit line backed up with the accounts receivables of GROUP AG. The term of the loan runs until June 30, 2014. The Company has curtailed the risk of changing interest rates existing with regard to liabilities to banks due to variable interest rate agreements by obtaining a fixed interest rate for half of its credit line. Accordingly, approx. 1,922 KUSD (1,500 KEUR) is bearing interest at prime plus 1.5% and approx. 1,922 KUSD (1,500 KEUR) is fixed at 3.5%

Note 22 COMMON STOCK

The Company has authorized capital of 75,000,000 shares of common stock and 25,000,000 shares of “blank check” preferred stock, each with a par value of $0.001. No class of preferred stock has been designated or issued. As of March 31, 2013, there were shares 30,812,624 of common stock outstanding. At the time of the Reverse Merger of the Company by GROUP on January 6, 2011, there were 16,500,000 shares of common stock of the Company outstanding and, as the Reverse Merger was accounted for as a recapitalization and applied retroactively, this balance is recorded as the balance outstanding since inception.

Transactions occurring in 2011

· In March 2011, the Company consummated a private placement offering (the “Private Placement”) of an aggregate of 6,044,000 Units at a purchase price of $1.25 per Unit, for gross proceeds of $7,555,000.  Each Unit was comprised of one share of Common Stock and one three-year Warrant to purchase one share of Common Stock at an exercise price of $1.50 per share (“Private Placement Warrant”). The net proceeds of this offering were $6,878,950. As disclosed in Note 1, the Company issued 1,742,874 shares of common stock for the purchase of Pavone AG., GroupWare, Inc. and SD Holdings Ltd.

· In December, 2011, certain investors exercised their private purchase warrants at $1.50 per share and bought 2,020,000 shares of common stock for net proceeds of $3,024,970 after legal fees.

34

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Transactions occurring in 2012

· In March, 2012 another investor exercised their private purchase warrant and bought 5,000 shares of common stock for net proceeds of $7,500.

· Also in March, 2012, as a result of purchasing warrants at nominal value, wherein each warrant allowed the holder to purchase one common share at $0.50 for a period of three years, certain investors exercised those warrants and bought 900,000 shares of common stock for net proceeds of $450,000.

· On April 16, 2012, the Company sold 120,000 Units to Joerg Ott, the then Chief Executive Officer and Chairman of the Board of Directors of the Company, for a price of $1.50 per Unit, for a total purchase price of $180,000. Each Unit consisted of one share of Common Stock of the Company and one warrant to purchase one share of Common Stock of the Company from the date of issuance until the third anniversary date of the date of issuance for $1.50 per share. The Company sold the Units and underlying securities to Mr. Ott in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On April 28, 2012, $632,500 in notes payable were converted at $1.15 per unit into 550,000 units with each unit consisting of one common share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the Note pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On April 30, 2012, $460,000 in notes payable to Lotus Holdings Ltd. (“Lotus Holdings”) were converted at $1.15 per unit into 400,000 units, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the Lotus Note pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· Also on April 30, 2012, $172,500 in debt to a company owned by Joerg Ott, the then Chief Executive Officer and Chairman of the Board of Directors of the Company, were converted at $1.15 per unit into 150,000 units, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the debt pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

35

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

· On May 10, 2012, the Company sold 30,000 Units to Markus R. Ernst, the Chief Financial Officer of the Company, for a purchase price of $1.50 per unit, for a total purchase price of $45,000. Each unit consists of one share of common stock of the Company and one warrant, allowing the holder to purchase one share of common stock of the Company from the date of issuance until the third anniversary date of the date of issuance for $1.50 per share. The Company sold the units and underlying securities to Mr. Ernst in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On May 15, 2012, the Company issued 150,000 unregistered shares of common stock to Kjell Jahn, the former selling stockholder of GroupWare, AG, a Florida corporation purchased by the Company in June 2011. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with Mohammad A. Shihadah, a member of the Board. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to Mr. Shihadah for the principal amount of $50,000, bearing interest at a rate of 8% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised, Mr. Shihadah would receive a 3-year warrant to purchase shares at 50,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement Mr. Shihadah was issued a 3-year warrant to purchase shares at 50,000 shares of common stock at $1.00 per share.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with K Group Ltd. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to K Group Ltd. for the principal amount of $250,000, bearing interest at a rate of 8.5% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

36

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised, K Group Ltd. would receive a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement K Group was issued a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with Vitamin B Venture GmbH. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to Vitamin B Venture GmbH for the principal amount of $252,500, bearing interest at a rate of 8.5% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised Vitamin B Venture GmbH would receive a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement Vitamin B Venture GmbH was issued a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

· On August 13, 2012, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with John A. Moore, a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated October 26, 2012 (the “Note”), to Mr. Moore for the principal amount of $1,000,000, bearing interest at a rate of 20% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note, without any penalty for prepayment. To secure the obligations of the Company under the Note, the Company granted Mr. Moore a secured priority security interest in the Company’s Accounts Receivable and its subsidiaries located in the United States of America, as more fully described in the full text of the document.

37

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

In connection with the execution of the Loan Agreement, on October 26, 2012, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.35 until the third anniversary date of the date of issuance. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities and Exchange Act of 1933, as amended, pursuant to Section 4(2) thereof.

In connection with the Loan Agreement, on February 22, 2013, the Company and Mr. Moore amended the Note pursuant to which Mr. Moore agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 450,960 shares of Common Stock to Mr. Moore. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On October 26, 2012, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Stephen D. Baksa, a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated October 26, 2012 (the “Note”), to Mr. Baksa for the principal amount of $1,000,000, bearing interest at a rate of 20% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note, without any penalty for prepayment. To secure the obligations of the Company under the Note, the Company granted the Baksa a first priority security interest in all of the Company’s right, title and interest in and to the shares of IDC Global, Inc. then owned by the Company. The Note contains customary provisions upon an Event of Default, as more fully described in the full text of the document.

38

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

In connection with the execution of the Loan Agreement, on October 26, 2012, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 500,000 shares of common stock at an exercise price of $0.20 until the third anniversary date of the date of issuance. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities and Exchange Act of 1933, as amended, pursuant to Section 4(2) thereof. On February 12, 2013, Mr. Baksa exercised the right to purchase 500,000 shares of common stock at the exercise price of $0.20.

In connection with the Loan Agreement, on February 22, 2013, the Company and Mr. Baksa amended the Note pursuant to which Mr. Baksa agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 200,000 shares of Common Stock to Mr. Baksa. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities

Transactions occurring in 2013

· As stated above, on February 12, 2013, and in connection with the above October 26, 2012 Loan Agreement the Company issued an aggregate of 500,000 restricted shares of Common Stock to Board Member, Stephen Baksa pursuant to exercise of a common stock purchase warrant issued on October 26, 2012 and exercisable for $0.20 per share. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On February 12, 2013, the Company sold an aggregate of 250,000 restricted shares of Common Stock to an Accredited Investor (as that term is defined the Securities Act) pursuant to exercise of a common stock purchase warrant issued on November 30, 2012 and exercisable for $0.20 per share. The Company issues the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

As of March 31, 2013, these shares had not yet been issued and remain as Subscriptions Receivable.

39

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

· As stated above, on February 22, 2013 and in connection with the above August 13, 2012 Loan Agreement, the Company and Board Member, John Moore amended the Note pursuant to which Mr. Moore agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 450,960 shares of Common Stock to Mr. Moore. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· As stated above, on February 22, 2013, and in connection with the above October 26, 2012 Loan Agreement, the Company and Board Member Stephen Baksa amended the Note pursuant to which Mr. Baksa agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 200,000 shares of Common Stock to Mr. Baksa. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 20, 2013, the Company issued an aggregate of 450,950 restricted shares of Common Stock to Board Member, John Moore pursuant to a February 22, 2013 amendment to a Secured Promissory Note Agreement entered into on August 13, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 27, 2013, the Company issued an aggregate of 200,000 restricted shares of Common Stock to Board Member, Stephen Baksa pursuant to a February 22, 2013 amendment to a Secured Promissory Note Agreement entered into on October 26, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 27, 2013, the Company issued 200,000 restricted shares of Common Stock to a third party non-affiliated consultant in consideration for consulting services rendered by the consultant to the Company. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

40

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Other changes in common stock are disclosed in Note 26, Supplementary Cash Flow Disclosures.

Options

The Company has not issued any options, so that none are outstanding as of March 31, 2013..

Warrants

The Company has issued warrants in four different manners. In each instance, the warrant allows the holder to purchase a common share within a three year period from issuance at a specific price per share. In the first instance, warrants have been issued as part of a private placement offering wherein the investor purchases a common share, and a warrant. The fair value of those warrants has been determined (and is shown below) by utilizing the residual method, whereby the current market value of the stock is deducted from the unit price and the remainder is allocated to the warrant. The valuation of the warrants issued is for disclosure purposes only and has no impact to the financial statements. A description of those warrants has been described above under common shares.

The second manner in which warrants are issues is in respect to financing by way of the issuance of notes payable or the conversion of debt into shares. In these instances, the fair value of the warrant has been determined using the effective interest rate method whereby the note is discounted when the interest rate is less than other similar notes and discount is allocated to the warrant and credited to additional paid in capital. The corresponding charge to discount is then amortized over the life of the note. Where there is no difference in interest terms, no value is attributable to the warrant.

The Company has also sold warrants at nominal value to certain investors. In this instance the fair value of the warrants has been determined using a Black-Scholes option pricing model with volatility, equity value and interest rate inputs noted below. The valuation of the warrants issued is for disclosure purposes only and has no impact to the financial statements.

Lastly, the Company has issued warrants to outside consultants in payments for services. The warrants are issued as “cashless” warrants and have been valued using a Black-Scholes option pricing model with volatility, equity value and interest rate inputs noted below.. The fair value of warrants issued for financing are determined for disclosure purposes as there is no impact to the financial statements. The fair value for other services, namely legal, and consulting have been recorded in the financial statements with a charge to the corresponding expense account and a credit to additional paid in capital.

41

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Black Scholes assumptions for warrants issued were as follows:

For the period ending December 31, 2012 -		December 31, 2011
Volatility -	120.6 – 134.3%	77.1%
Risk free interest rate -	0.34% - 0.51%	1.19%
Expected life -	3 years	3 years
Dividend rate -	Nil	Nil

The following share purchase warrant transactions have not been disclosed elsewhere.

On April 1, 2011, the former CFO was issued 100,000 share purchase warrants, which gave him the option of purchasing 100,000 shares of common stock for a period of 3 years at a price of $1.50 per common share. The value of this issuance, using the Black Scholes pricing model was determined to $34,000 and this amount was recorded as a consulting expense.

In March, 2012, the Company issued an aggregate of 2,020,000 warrants to five “accredited investors” pursuant to Section 4(2) of the Securities Act. Each investor warrant is exercisable for the three-year period commencing from the date of issuance for $0.50 per share of Common Stock and has the same terms as the Private Placement Warrants. As noted above investors immediately exercised warrants and purchased 900,000 shares of common stock for $450,000.On March 27, 2012, the Company issued an aggregate of 250,000 warrants to 3 outside consultants pursuant to Section 4(2) of the Securities Act. Each warrant is exercisable for the three-year period commencing from the date of issuance for $1.10 per share of Common Stock and has the same terms as the Private Placement Warrants. The value of this issuance, using the Black Scholes pricing model was determined to $270,208 and this amount was recorded as a professional expense.

42

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

In December, 2012, The Company issued 16,875 warrants to an outside consultant pursuant to Section 4(2) of the Securities Act. Each warrant is exercisable for the three-year period commencing from the date of issuance for $0.21 per share of Common Stock and has the same terms as the Private Placement Warrants. The value of this issuance, using the Black Scholes pricing model was determined to $2,624 and this amount was recorded as a consulting expense.

	# of shares									Fair value							Balance
	allowed to			Issue		Expiry		Strike		at							End of
	purchase			Date		Date		Price		Issuance			Issued		Exercised		Period
	#							$		$			#		#		#
Opening - Jan 1, 2011		2,000,000			10/1/2010		6/1/2013		4.00		-			-		-		2,000,000
Issued for financing services					3/11/2011		3/11/2014		1.50		-			707,280		-		707,280
Issued for financing services					3/28/2011		3/28/2014		1.50		-			15,000		-		15,000
Sold with share units					3/31/2011		3/31/2014		1.50		-			6,044,000		2,020,000		4,024,000
Issued for consulting services					4/1/2011		4/1/2014		1.50		34,000	(1)		100,000		-		100,000
Closing - Dec 31, 2011														6,866,280		2,020,000		6,846,280
Opening - Jan 1, 2012		6,846,280														5,000		6,841,280
Amended		(2,000,000	)		10/1/2010		6/1/2013		4.00		-			-		-		-
Reissued		2,000,000			6/1/2012		6/1/2015		1.00		556,785			-		-		-
Issued for legal services					3/31/2012		3/31/2012		1.10		270,208	(2)		250,000		-		250,000
Issued for nominal value					3/28/2012		3/28/2015		0.50		2,457,662			2,020,000		900,000		1,120,000
Sold with share units					4/16/2012		4/16/2015		1.50		90,000			120,000		-		120,000
Issued with debt conversion					4/28/2012		4/28/2015		1.75		-			550,000		-		550,000
Issued with debt conversion					4/30/2012		4/30/2015		1.75		-			500,000		-		500,000
Sold with share units					5/10/2012		5/10/2015		1.50		25,800			30,000		-		30,000
Issued with debt					7/5/2012		7/5/2012		0.50		26,500			550,000		-		550,000
Issued with debt					8/13/2012		8/13/2015		0.35		-			100,000		-		100,000
Issued with debt					10/26/2012		10/29/2015		0.20		-			500,000		500,000		-
Issued with debt					11/30/2012		11/30/2015		0.20		-			500,000		250,000		250,000
Issued for consulting services					12/21/2012		12/21/2015		0.21		2,624	(1)		16,875		-		16,875
Closing - Dec 31, 2012														5,136,875		1,655,000		10,328,155
Opening - Jan 1, 2013		10,328,155																10,328,155
Transfer (3/11/2011)		739,000			2/6/2013		3/11/2014		1.50		-			-		-		739,000
Closing - Mar 31, 2013														5,136,875		1,655,000		11,067,155

(1) recorded as consulting expense

(2) recorded as legal expense

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Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 23 REVENUE ALLOCATION

Gross revenue may be broken down by the following products for the three months ended March 31, 2013 are as follows:

Sales Revenues	3/31/2013
	KUSD
Licenses		871
Maintenance		2,688
Partner Contribution		0
Service		851
Third-Party Products		685
LND Third-Party Products		129
Others		0
		5,224

Revenues by geographical area for the three months ended March 31, 2013 are as follows:

Sales Revenues	3/31/2013
by geographic area	KUSD
US		1,027
Germany		3,973
United Kingdom		224
Others		0
		5,224

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Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Long-lived assets by geographical area, which primarily include property plant and equipment, are as follows:

Long-lived assets	3/31/2013
by geographic area	KUSD
US		126
Germany		188
United Kingdom		4
Others		0
		318

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Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

Note 24 OTHER INCOME/EXPENSE

At the financial statement date, Other expense was 3 KUSD (December 31, 2012 restated year end: Other Expense 33 KUSD).

Note 25 SUPPLEMENTAL CASH FLOW DISCLOSURES

The significant non-cash transactions through March 31, 2013 were as follows:

· On April 1, 2011, the Company acquired Pavone AG, for 350 KUSD, assumption of $583,991 debt and 1,000,000 shares of its common stock.

· On June 1, 2011, the Company acquired GroupWare, Inc., for 250 KUSD, assumption of $694,617 debt and 250,000 shares of its common stock.

· On July 25, 2011, the Company acquired IDC Global, Inc. for 750 KUSD, $ 883,005 assumption of debt, 25 (KUSD) reimbursement for accounting and legal fees, 35 KUSD signing bonuses and 880,000 shares of common stock.

· On September 27, 2011, the Company acquired SD Holdings Ltd for $525,529 and issued 612,874 shares of Common Stock.

· On February 27, 2012, an outstanding debt of GROUP was converted into an aggregate of 1,750,000 shares of GROUP common stock, increasing GROUP’s total outstanding common stock to 26,982,000 shares. As a result of the foregoing increase in the number of total outstanding shares of GROUP common stock, the Company increased its ownership of GROUP common stock to an aggregate of 13,525,000 shares, representing approximately 50.1% of the outstanding common stock of GROUP, by purchasing the 883,765 shares of GROUP common stock from GAVF LLC for an average purchase price of $0.70 per share.

· On March 31, 2012, warrants were issued in lieu of consulting services and the fair value, based on the Black Scholes method, was determined to be $ 270,208 and recorded as Additional Paid-In Capital.

· On April 28, 2012, $ 632,500 in notes payable to RealRisk Ventures, LL were converted into 550,000 shares of common stock and into 550,000 warrants with each warrant allowing the holder to purchase one common share at $1.75 for a period of 3 years.On April 30, 2012, $ 460,000 in notes payable to Lotus Holdings Ltd. were converted into 400,000 shares of common stock and 400,000 warrants, with each warrant allowing the holder to purchase one common share at $1.75 for a period of 3 years.

· On April 30, 2012 $ 172,500 of accounts payable due to Vitamin B Venture, GmbH was converted into 150,000 shares of common stock in satisfaction of a converted note to Kjell Jahn.

46

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

· On July 5, 2012, promissory notes for $552,500 were issued at 8.5% and had a conversion feature. Similar notes without the conversion were issued at 20%. Therefore, it was determined that the conversion feature had a value which was calculated by discounting the note as if the cost of capital was 20% and based on the due date set forth of 6 months. The calculated value was classified as discounted debt and amortized over the life of the promissory notes resulting in additional Interest expense and a credit to Additional Paid-In Capital for $26,700.

· On December 21, 2012, warrants were issued in lieu of consulting services and the fair value, based on the Black Scholes method, was determined to be $ 2,624 and recorded as Additional Paid-In Capital.

· On March 1, 2013, $700,000 of Notes Payable and Accounts Payable due to Vitamin VbV GmbH was dissolved as payment against a Loan Payable from Group AG.

· On March 20, 2013, 450,960 shares were issued at a rate of .30/share on conversion of accrued interest due on a Note Payable to John Moore.

· On March 27, 2013, 200,000 shares were issued at a rate of .30/share on conversion of accrued interest due on a Note Payable to Stephen Baksa.

· On March 27, 2013, 200,000 shares were issued in lieu of services and the fair value, based on the Black Scholes, method was determined to be $ 70,000 and recorded as Additional Paid-In Capital.

Note 26 SUBSEQUENT EVENTS

· Group Live N.V. operating under the laws of the Netherlands and a 100% subsidiary of Group Business Software AG declared its end of business May 31, 2012, registered in the commercial register June 22, 2012. Following the local procedures the Company has been dissolved from the register as per April 5, 2013, registered April 16, 2013. Each of the directors of the Company, including all five disinterested directors with respect to the transaction, has approved each of the transaction agreements discussed above and the transactions contemplated thereby.

· On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Stephen D. Baksa (the “Lender’), a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated April 26, 2013 (the “Note”), to Mr. Baksa for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.

47

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(2) thereof.

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.

§ The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.

· On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Vitamin B Venture GmbH (the “Lender”), an entity of which Joerg Ott, the Company’s Chairman, has voting and dispositive control. Pursuant to the Loan Agreement, the Company issued to the Lender a secured promissory note, dated October 26, 2012 (the “Note”), for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to be paid to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.

48

Notes to the Interim Financial Statements

March 31, 2013

GBS Enterprises Incorporated

Unaudited and Restated

· In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act pursuant to Section 4(2) thereof.

· In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.

· The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Note Regarding Forward-Looking Statements

The following discussion and analysis should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in the Quarterly Report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the “Risk Factors,” “Cautionary Notice Regarding Forward-Looking Statements” and “Description of Business” sections in the Company’s latest Annual Report on Form 10-K and subsequent filings. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “predict,” and similar expressions to identify forward-looking statements. Although we believe the expectations expressed in these forward-looking statements are based on reasonable assumptions within the bounds of our knowledge of our business, our actual results could differ materially from those discussed in these statements. We undertake no obligation to update publicly any forward-looking statements for any reason even if new information becomes available or other events occur in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations, and prospects.

OVERVIEW

GBS Enterprises Incorporated, a Nevada corporation (the “Company,” “GBS,” “GBSX,” “we,” “us,” “our” or similar expressions), conducts its primary business through its 50.1% owned subsidiary, GROUP Business Software AG (“GROUP”), a German-based public-company whose stock trades on the Frankfurt Exchange under the stock symbol INW. GROUP’s software and consulting business is focused on serving IBM’s Lotus Notes and Domino market. GROUP caters primarily to mid-market and enterprise-size organizations with over 3,500 customers in thirty-eight countries spanning four continents, representing more than 5,000,000 active users of its products. GROUP’s customers include Abbot, Ernst & Young, Deutsche Bank, Bayer, HBSC, Merck and Toyota. GROUP provides IBM Lotus Notes/Domino Application and Transformation technology. Headquartered in Eisenach, Germany, GROUP has offices throughout Europe and North America. The Company maintains a website at www.gbsx.us. GROUP maintains a website at www.gbs.com. The information contained in the Company’s and GROUP’s websites is not incorporated by reference herein.

Products and Services

GBS has consolidated the fragmented Lotus Software market through the acquisition of companies with complementary product, technology or services offerings. GBS has continuously developed its software and service business to service and support GBS’s expanding Lotus customer base.

Historically, GROUP has achieved growth by acquiring companies with complimentary operations and leveraging GROUP’s expertise to turnaround and integrate these companies. Key success factors for this strategy are: enhanced portfolio, positioning GROUP as the ‘one-stop-shop’ for Lotus applications and services, expanded customer support, fast code migration, and cloud enablement/XPages conversion of acquired applications.

Going forward, the Company may focus on potential acquisition targets in the following areas of software and services: Applications and Application Modernizations, Professional Services, Hosting/Outsourcing Services, Administration and IT services, and XPages expertise.

Messaging and Business Applications Software & Solutions

GBS Messaging and Business Application Software & Solutions product lines include software and advisory services for email and Instant Messaging (IM) Management, Security, Compliance, Archiving and Productivity, CRM Applications, Governance, Risk & Compliance (GRC) Management software, Workflow and Business Process Management software, ePDF Archiving & Document Management.

GBS develops, sells and installs well-known business process and management software suites based on Lotus Notes / Domino and IBM Portal technology, mainly for major international companies and medium-sized customers.

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Through GBS’s comprehensive messaging software product lines and associated services, Lotus Notes, Microsoft Exchange or SMTP-based-email customers, as well as Lotus Sametime, customers are able to provide their users with a secure, efficient and centrally administered use of e-mail and IM while maintaining control over their compliance with current legal requirements and corporate guidelines.

Consulting Services

GBS develops, sells and orchestrates customer-specific Lotus Domino strategy and consulting services, such as CIO and IT department leader Strategic Advisory Services, Managed Services, Outsourcing, Administration, Assessments and Implementations, Performance Improvements, Custom Application Development, Governance and Security, Technical Support, and Training, as well as Email Migration Services.

Based on GBS’s unique concentration of industry talent and expertise, mainly in the areas inside and around IBM Lotus Notes/Domino, inside and around corporate messaging (IBM, Microsoft, SMTP) and inside and around IT environmental and application assessment, analysis and reporting, commercial and governmental customers, as well as Software Integrators (SI) and channel partners, are able to rely on the company’s strategic and tactical advisory services for evaluating, planning, staffing and execution of related customer projects. GBS Consulting Services’ global teams of consultants use modern project management techniques, proprietary methodologies and GBS accelerator technologies to complete client projects on time and with reduced risk.

We believe that our focus on recruiting and retaining top Lotus expertise positions our team to offer leading-edge Lotus Notes / Domino subject matter knowledge to our customers. GBS consultants have an average of over 12 years’ experience each in Lotus Notes/Domino and its related products and are routinely asked to present at IBM Lotus events including Lotusphere (Connect), an annual conference hosted by IBM Lotus Software.

As a Premier IBM Business Partner, GBS is one of the few partners that can sell and support licenses for all five IBM software brands: Lotus, WebSphere, Rational, Tivoli, and DB2.

Market Trends

As IT departments face continuous budget reductions and constant pressure for higher performance and efficiency, CIOs are focusing on modern technologies to support their need for increased scalability, flexibility and lower costs. GBS has identified this demand as a strategic growth opportunity for the company and has placed a significant focus on expanding its Modernizing/Migrating technology, which will assist client companies as they move to scale and adapt while remaining cost conscious.

GBS Lotus Application Modernization and Migration

GBS Lotus Application Modernization and Migration activities are focused on the IBM Lotus / Domino applications market and the offering spans from expert services and accelerator technologies to modernized, web enabled (also named “cloud” or “cloud computing”) and migrated Lotus applications; and thus ultimately to take the Lotus applications from legacy to the future. The foundation of the Modernizing/Migrating Suite Software offering is GBS’s significant R&D investment in a set of methodologies and key technology accelerators to automate the conversion of traditional Notes based client-server applications, into the IBM XPages framework which enables Domino applications to be run and accessed via the Lotus client, a web browser or on a mobile device. The patent-pended software that underpins Modernizing/Migrating was developed by GBS with assistance and guidance from IBM’s Software Group to ensure alignment with future releases of the IBM Lotus / Domino and XPages technology.

Revenue Model

GBS generates its revenue from the sale of internally created software, third-party developed software and the delivery of related services, including IT systems planning, administration, support, hosting, implementation and integration.

Strategy and Focus Areas

Based on current market demands for modern, Cloud-based and mobile-device capable business applications, we have acquired and developed a set of unique technologies that help organizations reduce the time, cost, resources and risks associated with modernizing or migrating their existing applications.

We generate revenue from subscription and usage fees and related services, including support and strategic consulting services. The subscription period is typically based on a yearly or multi-year contract with our customers. Another sector of our strategic portfolio is a suite of tools and methodologies we have developed to rapidly convert Lotus Notes applications into web and modern mobile applications. This portfolio includes a set of powerful analysis tools known as Insights that identify all of the Lotus Notes applications within an organization and provide metrics about the uses and users of those applications. Because of the nature of Lotus Notes and Domino, the applications within a customer environment tend to be highly distributed and number in the thousands. For many organizations, this fact alone makes it extremely difficult to plan for projects that involve modernizing these applications for use in a browser and on mobile devices or migrating them to another platform. Our technologies help them to dramatically reduce the cost, risk, time and resources associated with these highly complex projects.

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We generate revenue with our analysis tools by charging a fee for the use of our technology and for the associated cost of the services to produce a report and set of recommendations for the customer. Additional revenues come from consulting services that result from helping our customers implement those recommendations. For use of our conversion tools, referred to as Modernizing/Migrating, we charge a flat fee for the conversion and additional hourly rates to perform additional supporting development or testing as needed.

We also believe there is a significant revenue opportunity in licensing these tools to a network of global partners who also have existing presence and expertise in the Lotus Notes and Domino market. We have established partner agreements for the use of the analysis and conversion tools with partners in several countries and directly with IBM.

Sale of IDC Global, Inc.

On February 1, 2013, GBS entered into a Stock Purchase Agreement, dated February 1, 2013 (the “Agreement”), with IDC Global, Inc., a Delaware corporation and a wholly-owned subsidiary of GBS (“IDC”), and Global Telecom & Technology Americas, Inc., a Virginia corporation (“GTT). Pursuant to the Stock Purchase Agreement, we sold 100% of the issued and outstanding capital stock of IDC to GTT for an aggregate purchase price of $4,600,000 (the “Purchase Price”), subject to certain holdback provisions amounting to $1.093 million as described more fully in the Stock Purchase Agreement. The Purchase Price is also subject to adjustment on a dollar-for-dollar basis for adjustments the Net Working Capital (defined as Current Assets minus Current Liabilities) of IDC by GTT within 90 days of closing.

We had acquired IDC on July 25, 2011 for 880,000 shares of GBS common stock and $785,000. The fair value of the GBS common stock was determined to be $3.50 per share, representing the market value at the end of trading on the date of the Stock Purchase Agreement. The total value of the investment, including $883,005 of debt assumption, was $4,066,000. Due to the Company’s perceived increase in the demand for Modernization, Mobility and Optimization offerings, the Company made a strategic decision in 2012 to focus on its core offerings in the IBM Notes and Domino market and to divest its non-core businesses, including IDC.

General Corporate History

The Company was originally incorporated in the state of Nevada on March 20, 2007 as SWAV Enterprises Ltd. (“SWAV”). SWAV was in a different industry and had a different management team and Board of Directors.

On April 26, 2010, SWAV purchased certain technology assets of Lotus Holdings Ltd. (“Lotus”) in consideration for 2,265,240 shares of SWAV common stock. Also on April 26, 2010, Lotus (on behalf of the SPPEF Members as discussed below) purchased an aggregate of 11,984,770 of the outstanding shares of SWAV common stock from certain selling shareholders of SWAV for an aggregate purchase price of $370,000. As a result of these two sets of transactions, Lotus acquired an aggregate of 14,250,010 shares of SWAV common stock which constituted approximately 95.0% of the 15,000,000 outstanding shares of SWAV common stock on April 26, 2010.

Upon the consummation of the April 26, 2010 acquisition, the then executive officers and directors of SWAV resigned and Mr. Joerg Ott, the Chief Executive Officer of GROUP and a GROUP Major Shareholder, was appointed the Chief Executive Officer of SWAV and sole member of SWAV’s Board of Directors. Mr. Ott currently serves as the Chairman of the Board of Directors of GBSX and the Chief Executive Officer of GROUP.

On September 6, 2010, SWAV’s name was changed to GBS Enterprises Incorporated. On October 14, 2010, the Company’s trading symbol on the OTC Bulletin Board was changed from SWAV to GBSX.

About Lotus Holdings, Ltd.

Lotus is a holding company which was formed under the laws of Gibraltar for the purpose of financing merger and acquisition projects, specifically in the niche market of small or microcap companies listed on the Frankfurt Stock Exchange with complex shareholder structures and whose stock is trading below one Euro (€1.00) per share. 

SPPEFs

Lotus typically finances its merger and acquisition projects through the use of Special Purpose Private Equity Funds (“SPPEFs”). Typically, SPPEFs are funded by a company’s major shareholders (the “Major Shareholders”) seeking to raise capital for projects and who fund at least 50% of the SPPEF, with the remaining portion being provided through the investment community and network of investors in Lotus. Each SPPEF is co-managed by a representative of the Major Shareholders (the “Representative Secretary”) and an attorney appointed by Lotus (the “Lotus Representative”).

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On February 25, 2010, a group of shareholders (the “GROUP Major Shareholders”) of GROUP Software AG, a German public company trading on the Frankfurt Stock Exchange under the symbol “INW” (“GROUP”), engaged Lotus to provide financial consulting and advisory services, on a non-exclusive basis, for the primary task of establishing a SPPEF. On March 12, 2010, the GROUP Major Shareholders and Lotus established and funded a SPPEF with $1,400,000, consisting of $1,000,000 from the GROUP Major Shareholders and $400,000 from a Lotus investor (collectively, the “SPPEF Members”).

In early April 2010, the SPPEF Members decided to acquire SWAV. As disclosed above, on April 26, 2010, Lotus, on behalf of the SPPEF Members, acquired an aggregate of 11,984,770 shares of SWAV common stock from the selling shareholders of SWAV for an aggregate purchase price of $370,000. The 11,984,770 shares of SWAV common stock shares represented approximately 79.9% of the 15,000,000 outstanding shares of SWAV common stock on April 26, 2010.

Transactions following the April 26, 2010 Transaction

On November 1, 2010, the Company repurchased an aggregate of 3,043,985 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for these 3,043,985 shares, the Company issued to Lotus a Secured Demand Note, dated November 1, 2010 (the “First Demand Note”), for the principal amount of $300,000, bearing interest at the rate of 5% per annum. The First Demand Note was repaid in September 2011.

Effective December 30, 2010, pursuant to securities purchase agreements between the Company and six GROUP Major Shareholders, the Company purchased an aggregate of 7,115,500 shares of GROUP common stock from the six GROUP Major Shareholders in consideration for the 3,043,985 shares of GBS common stock (the “December 2010 Transaction”). As a result, the Company owned approximately 28.2% of the outstanding common stock of GROUP.

Reverse Merger

After the December 2010 Transaction was completed, the additional GROUP Major Shareholders decided to accept the share swap offer from the Company and to effectuate a reverse merger of GROUP and the Company. To effectuate the reverse merger, on January 5, 2011, the Company repurchased from Lotus an aggregate of 2,361,426 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for these 2,361,426 shares, the Company issued to Lotus a Secured Demand Note, dated January 5, 2011 (the “Second Demand Note”), for the principal amount of $200,000, bearing interest at the rate of 5% per annum. The Second Demand Note was repaid in November 2011.

Effective January 6, 2011, pursuant to securities purchase agreements between the Company and the remaining GROUP Major Shareholders, the Company purchased an aggregate of 5,525,735 shares of GROUP common stock from the remaining GROUP Major Shareholders in consideration for the 2,361,426 shares of GBS common stock (the “January 2011 Transaction”). These 5,525,735 GROUP shares represented approximately 21.9% of the outstanding shares of common stock of GROUP. As a result of the December 2010 Transaction and January 2011 Transaction, the Company had acquired an aggregate of 12,641,235 shares of GROUP common stock from the GROUP Major Shareholders in consideration for an aggregate of 5,405,411 shares of GBS common stock, resulting in GBS owning approximately 50.1% of the outstanding GROUP common stock and effectuating a reverse merger of the Company and GROUP whereby GROUP became the accounting acquirer.

Additional GROUP Acquisition

On February 27, 2012, we acquired an additional 883,765 shares of GROUP common stock for $619,000 in order to maintain our 50.1% majority ownership of GROUP due to an increase in the outstanding common stock of GROUP.

Executive Offices

Our principal executive office is located at 585 Molly Lane, Woodstock, Georgia 30189 and our telephone number is (404) 891-1711. GROUP’s executive offices are located at Hospitalstrasse 6, 99817 Eisenach, Germany. We maintain a website at www.gbsx.us. GROUP maintains a website at www.gbs.com. The information contained in the Company’s and GROUP’s websites is not incorporated by reference herein. 

Results of Operations

Assets:

Total Assets decreased from $56,802,492 at December 31, 2012 to $ 48,969,459 at March 31, 2013.  Total Assets consists of Total Current Assets and Total Non-Current Assets.

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Total Current Assets

At March 31, 2013, Total Current Assets were $5,177,691 as compared to $6,444,192 at December 31, 2012. Total Current Assets consist of: Cash and Cash Equivalents, Accounts Receivable, Prepaid Expenses, Other Receivables-current and Assets Held for Sale.

n Cash and Cash Equivalents decreased from $1,154,602 at December 31, 2012 to $738,369 at March 31, 2013 as a result of our investments in strategic technology areas such as application migration and modernization, cloud technology, the associated costs necessary to build and implement the go- to- market strategy and losses in operations.

n Accounts Receivable decreased from $4,143,448 at December 31, 2012 to $3,205,807 at March 31, 2013 due to increased collections during the reporting period. 

n Prepaid Expenses increased from $84,304 at December 31, 2012 to $214,435 at March 31, 2013 from prepaid rent, insurance and advances on technological events.

n Other Receivables-current increased from $676,976 at December 31, 2012 to $1,019,080 at March 31, 2013 and consisted of receivables from the sale of IDC Global, Inc. of approximately $517,000, a receivable from a previous insolvency of approximately $439,000, tax assets of approximately $37,000 and prepaid costs of approximately $26,000.

n Assets Held for Sale decreased from $384,862 at December 31, 2012 to $Nil at March 31, 2013 as a result of the sale of IDC Global, Inc.

Total Non-Current Assets

At March 31, 2013, Total Non-Current Assets were $43,791,768 as compared to $50,358,300 at December 31, 2012.  Total Non-Current Assets consist of: Property Plant and Equipment, Other Receivables noncurrent, Deferred Tax Assets, Goodwill, Software, Other Assets and Assets Held for Sale.

n Net Property (plant and equipment) decreased from $332,839 at December 31, 2012 to $317,771 at March 31, 2013.

n Other Receivables noncurrent decreased from $428,422 at December 31, 2012 to $1,154 at March 31, 2013 and consisted of cooperative shares.

n Deferred Tax Assets decreased from $1,132,103 at December 31, 2012 to $1,104,222 at March 31, 2013 and consisted of Deferred Tax Assets derived from financial assets and losses carried forward.

n Goodwill decreased from $34,254,881 at December 31, 2012 to $31,260,500 at March 31, 2013.The decreased in goodwill of $ 2,994,381 resulted from the sale of the subsidiary IDC Global, Inc. during the quarter.

n Software decreased from $12,207,031 at December 31, 2012 to $10,947,781 at March 31, 2013, as a result of the quarterly re-calculation of capitalized development costs, product rights and license for our expert business software, legacy business software and strategic business software all in the developmental or improvement stage.

n Other Assets increased from $156,379 at December 31, 2012 to $160,340 at March 31, 2013. This category includes rent and other security deposits.

n Assets Held for Sale decreased from $1,846,645 at December 31, 2012 to $Nil at March 31, 2013 as a result of the sale of IDC Global.

Liabilities

Total Liabilities decreased from $22,269,060 at December 31, 2012 to $16,586,123 at March 31, 2013.  Total Liabilities consists of Total Current Liabilities and Total Non-Current Liabilities.

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Total Current Liabilities

At March 31, 2013, Total Current Liabilities were $13,861,989, compared to $18,227,184 at December 31, 2012.  Total Current Liabilities consist of Notes Payable, Liabilities to Banks, Accounts Payable and Accrued Liabilities, Deferred Income, Other Liabilities, Amounts Due to Related Parties and Liabilities Held for Sale.

n Notes Payable decreased from $2,313,572 at December 31, 2012 to $260,421 at March 31, 2013 based on repayments of short terms loans during the quarter.

n Liabilities to Banks increased from $6,774 at December 31, 2012 to $9,293 at March 31, 2013 and included a line of credit and cash in transit.

n Accounts Payable and Accrued Liabilities decreased from $6,241,733 at December 31, 2012 to $3,662,133 at March 31, 2013. The decrease was due to the reduction of trade payables by approximately $1,367,000 and a decrease in accrued liabilities of approximately $1,213,000 by repayment and as a result of the sale of subsidiary IDC Global.

n Deferred Income increased from $6,099,570 at December 31, 2012 to $8,852,860 at March 31, 2013, and consists mainly of maintenance income collected in advance of the contractual maintenance period.

n Other Liabilities of $860,032 at December 31, 2012 decreased to $800,740 at March 31, 2013 and includes $320,000 due for purchased software, $538,000 for purchased companies (Permessa) and tax credits of ($57,000).

n Amounts Due to Related Parties decreased from $2,115,869 at December 31, 2012 to $276,542 at March 31, 2013 as a result of payments to related parties during the quarter.

n Liabilities Held for Sale decreased from $589,634 at December 31, 2012 to $Nil at March 31, 2013 as a result of the sale of IDC Global, Inc.

Total Non-Current Liabilities

At March 31, 2013, our Total Non-Current Liabilities were $2,724,134, compared to $4,041,876 at December 31, 2012.  Total Non-Current Liabilities consist of Liabilities to Banks, Retirement Benefit Obligation, and Liabilities Held for Sale.

n Liabilities to Banks decreased from $3,716,102 at December 31, 2012 to $2,563,260 at March 31, 2013 as a result of partial payments, and included a long-term business loan/line of credit due to the Baden-Württembergische Bank, Stuttgart, Germany.

n Retirement Benefit Obligation decreased from $165,876 at December 31, 2012 to $160,874 at March 31, 2013.

n Liabilities Held for Sale decreased from $159,898 at December 31, 2012 to $Nil at March 31, 2013 as a result of the sale of IDC Global, Inc. in February 2013.

Three Months Ended March 31, 2013 Compared to the Three Months Ended March 31, 2012

Revenues

For the three months ended March 31, 2013, our total revenue decreased to $5,224,379 from $6,952,049 for the three months ended March 31, 2012, a decline of $1,727,670 or 24.85%.  The Company generates revenue from two divisions. The Product division of Revenues includes revenue generated from the sale of Licenses, Maintenance, Third-Party Products, and Other revenues. The Service division includes revenue generated from services rendered.

The Product division decreased to $4,373,010 for the three months ended March 31, 2013 from $5,593,365 for the three months ended March 31, 2012, a decline of $1,220,354 or 21.82%. The primary factors contributing to the decline were decreases in License revenues of $317,876, Third Party Product revenues of $914,196 and Other revenues of $22,154 combined with an increase in Maintenance revenue of $33,872 for the three months ended March 31, 2013 compared to the three months ended March 31, 2012. The decrease in License sales was equally split between the European (-$158,097) and the North American operations (-$159,779) of the Company. This is mainly as a result of economic conditions causing an increase in the sales cycles, whereby strategic customers are giving greater consideration towards the modernization/migration of their current application platform. While such an investment decision might affect the core business of the Company and a decrease in License sales, it also ideally creates potential service engagements for our migration/modernization offerings.

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Service revenue decreased from $1,358,684 for the three months ended March 31, 2012 to $851,369 for the three months ended March 31, 2013, a decline of $507,315 or 37.34%. Primarily as a result of the sale of subsidiaries and the strategic reorganization allowing for an intensified focus around servicing the modernization, mobilizing and migration market.

Cost of Goods Sold

For the three months ended March 31, 2013, total Cost of Goods Sold decreased to $3,101,698 from $4,173,174 for the three months ended March 31, 2012, a cost reduction of $1,071,476 or 25.68%.  

The Company’s Cost of Goods Sold is segmented into two divisions. The first are costs related to the Product division of revenue which includes the total cost of materials. The second are the costs related to the Service division of revenue which includes; other operating expenses, depreciation & amortization expense, and personnel expenses.

Within the Costs of Goods Sold related to the Product division the Company was able to achieve a $1,059,349 or 55.27% reduction from $1,916,624 for the three months ended March 31, 2012 to $ 857,275 for the three months ended March 31, 2013. The primary factors contributing to the Company’s lower Costs of Goods Sold related to the Product division of revenues was a reduction of $118,372 in product material costs and a reduction of $940,977 in third party product material costs, for the three months ended March 31, 2013 compared to the three months ended March 31, 2012.

Within the Costs of Goods Sold related to the Service division, the Company was able to achieve a small reduction of $12,127 or 0.54%, in the total costs of services from $2,256,550 for the three months ended March 31, 2012 to $2,244,423 for the three months ended March 31, 2013. The primary factor contributing to the Company’s reduction in the costs of services was a reduction in personnel costs, depreciation and amortization costs. It should be noted that additional personnel costs relating to Services are included in Selling Expenses and these were also reduced from the quarter ending March 31, 2012 as indicated below.

Operating Expenses

The Company’s total operating expense consist of three segments; selling, administrative and general expenses. For the three months ended March 31, 2013, total operating expenses decreased $1,778,485 or 30.25% to $4,100,719 from $5,879,204 for the three months ended March 31, 2012.  

For the three months ended March 31, 2013, Selling Expenses decreased to $2,371,530 from $4,178,185 for the three months ended March 31, 2012.  This was primarily due to decreases in cost of materials of $208,654, personnel expense of $1,062,307 and in other selling expense of $535,694.

For the three months ended March 31, 2013, administrative expense increased by $26,395 or 1.79% to $1,500,042 from $1,473,647 for the three months ended March 31, 2012. This was primarily due to reductions in personnel costs of $163,054, being offset by an increase in other administrative expense of $189,449 related to the Company’s sale of subsidiary companies and the increased compliance costs associated with restructuring.

For the three months ended March 31, 2013, General Expenses slightly increased to $229,147 from $227,372 for the three months ended March 31, 2012.

Other Income (Expense)

For the three months ended March 31, 2013, Other Expense of $3,216 decreased from Other Expense of $33,609 for the three months ended March 31, 2012. This change is primarily due to an increase in Other Income of $158,978 and a net decrease in Interest Expense of $127,627 for the three months ended March 31, 2013 compared to the three months ended March 31, 2012.

Liquidity & Capital Resources

As March 31, 2013, the Company had $738,369 in cash and cash equivalents, compared to $1,154,602 at December 31, 2012.

The Company's cash flow depends on the timely and successful market entry of its strategic offerings. The dependency accounts for revenue generated from direct customers engagements, as well as for revenue generated through the partner channel network.

Especially for strategic offerings for paradigm shifting technologies, management's budget plan is based on a series of assumptions regarding market acceptance, readiness and pricing. While management's assumptions are based on market research and customer surveys, assumptions bear the risk of being incorrect and may result in a delay in customer projects and consequently a delay or a reduction in related invoicing. In case these delays have an impact on the Company's liquidity and therefore its ability to support its operations with the necessary cash flow, the Company depends on its ability to generate cash flow from other resources, such as debt financing from related or independent resources or as equity financing from existing shareholders or through the stock market.

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During the entire fiscal year 2012 and for the first three months of 2013, the Company was in constant contact with internal and external sources for financing. These sources provided necessary funds to support the working capital needs of the Company; mainly to finance the Company’s strategic offerings.  There can be no assurances, however, that the Company will be able to obtain additional funds from these or any other sources or that such funds will be sufficient to permit the Company to implement its intended business strategy. In the event the Company is not able to generate additional funds, management will postpone any strategic investment until the financing will be sufficient. However, management believes as a result of the assets purchased to date, in accordance with the above-mentioned statement, the Company will be able to provide sufficient cash flow to support its standard operations for the next 9 months.

From time to time, the Company has issued promissory notes to fund its operations. As of March 31, 2013, the Company had an aggregate of $260,421 of indebtedness, including principal and accrued interest, outstanding resulting from a promissory note issued to K Group, Ltd. on July 5, 2012, bearing interest at the rate of 8.5% and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Notes.

During the period ended March 31, 2013, we raised capital by consummating the following transactions:

n On February 1, 2013, we sold 100% of our ownership in IDC Global, Inc. for net proceeds of $ 3,577,195 including cash received balanced against forgiven debt.

n On February 12, 2013, we issued an aggregate of 500,000 restricted shares of Common Stock to a Board Member pursuant to exercise of a common stock purchase warrant issued on October 26, 2012 and exercisable for $0.20 per share, for total proceeds of $100,000.

n On February 12, 2013, the Company issued an aggregate of 250,000 restricted shares of Common Stock to an Accredited Investor (as that term is defined the Securities Act) pursuant to exercise of a common stock purchase warrant issued on November 30, 2012 and exercisable for $0.20 per share, for total proceeds of $50,000...

In the future, the Company may supplement its liquidity to fund its operations or implement its business strategy through the sale of equity or debt securities or through short or long term loans. However, there can be no assurances that the Company will be successful in consummating any such financings on favorable terms, if at all.

Cash Flows

	Three Months Ended March 31, 2013			Three Months Ended March 31, 2012
Net cash provided (used in) Operating Activities	$	1,098,975		$	(2,292,301	)
Net cash provided (used) by Discontinued	$	-		$	177,658
Net cash provided (used in) Investing Activities	$	3,356,663		$	258,103
Net cash provided (used in) Financing Activities	$	(4,882,141	)	$	(9,996	)
Effect of exchange rate changes on cash	$	10,270		$	(34,414	)
Net increase (decrease) in cash and cash equivalents during the period	$	(416,233	)	$	(1,900,950	)
Cash and cash equivalents, beginning of period	$	1,154,602		$	3,142,308
Cash and cash equivalents, end of period	$	738,369		$	1,241,358

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Net Cash provided by operating activities for the three month period ended March 31, 2013 was $1,098,975 compared to net cash used in operating activities of $2,292,301 for the three month period ended March 31, 2012 increasing by approximately $3,400,000. This change is primarily due to an increased cash provided by Accounts Receivable and Other Assets of approximately $5,300,000, Inventories of approximately $115,000, Deferred Tax Assets of approximately $700,000, coupled with a reductions in Interest and Consulting expenses of approximately $265,000 and a reduced Net Income Loss of approximately $400,000. Offset by increased cash used by Accounts Payable and Other Liabilities of approximately $ 3,200,000 and increased Minority Interest losses of $180,000.

Net cash provided in investing activities during the three month period ended March 31, 2013 was $3,697,525, compared to cash provided by investing activities in the comparative period ended March 31, 2012 of $258,103 increasing by approximately $3,400,000. The increase was provided primarily by proceeds from the sale of IDC Global in February 2013.

Net cash used in financing activities during the three month period ended March 31, 2013 was $4,882,141, compared to net cash used in financing activities in the comparative period ended March 31, 2012 of $9,996 increasing by approximately $ 4,900,000 for the three month period ended March 31, 2013.This change was primarily due to reductions in net borrowings from banks, related party loans, and other borrowings.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.   The areas where critical estimates were made that have significant importance to the financial statements are as follows:

  i.        Allowance for doubtful accounts. The company provides for potential bad debts on an account-by-account basis. Bad debts have not been significant and our allowance has been accurate. Non-trade receivables are also scrutinized and allowed for based on expected recovery.

  ii.      Allocation of the price paid when acquiring subsidiaries.  When the Company acquires subsidiary companies an allocation of the purchase is required.  The allocation is based on management’s analysis of the value of the net assets, and is based on estimated future cash flows that each component will produce.  Such components might include software, customer lists and other intangible assets that are not readily determinable.  The allocation has a significant impact on the future earnings of the Company as certain assets, customer lists for example, must be amortized and charged to operations over time, while other assets, notably goodwill, does not.

  iii.    Impairment testing on intangibles and goodwill.  As noted in more detail below, these areas involve numerous estimates as to expected cash flows, expected rates of return and other factors that are difficult to determine and are often out of the Company’s direct control.  

   iv.    Valuation of deferred tax credits.  The Company provides an allowance for tax recoveries arising from the application of losses carried forward.  An allowance is provided where management has determined that it is less than likely that the loss will be applied and income taxes recovered.

Comprehensive Income (Loss)

The Company adopted FASB Codification topic (“ASC”) 220, Reporting Comprehensive Income, which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Company’s other comprehensive income represents foreign currency translation adjustments and small net actuarial losses on pension plans.

Net Income per Common Share

FASB Codification topic (“ASC”) 260, Earnings per share, requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. Accordingly, although the diluted weighted average number of common stock outstanding is disclosed on the statements of operation, the calculated net loss per share is the same for bother basic and diluted as both are based on the basic weighted average of common stock outstanding. There were no adjustments required to net income for the period presented in the computation of diluted earnings per share.

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Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts receivable, financial assets, notes payable, liabilities to banks, accounts payable and accrued liabilities and other liabilities.  As of the financial statement date, the Company does not hold any derivate financial instruments. Financial assets and liabilities are measured upon first recognition and reviewed at the financial statement date.  Changes in fair value are recognized through profit and loss.  Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

Currency Risk

We use the US dollar as our reporting currency.  The functional currencies of our significant foreign subsidiaries are the local currency, which includes the Euro, the British pound, and the Indian rupee.  Accordingly, some assets and liabilities are incurred in those currencies and we are subject to foreign currency risks.

Fair Value Measurements

The Company follows FASB Codification topic (ASC”) 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

The Company has adopted (“ASC”) 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Inventories

Pursuant to ASC 330 (Inventories), inventories held for sale are recognized under inventories. Inventories were measured at the lower of cost or market. Cost is determined on a first-in-first out basis, without any overhead component.

Goodwill and other Intangible Assets

Intangible assets predominately include goodwill, acquired software and capitalized software development. Intangible assets acquired in exchange for payment are reflected at acquisition costs. If the development costs can be capitalized per ASC 985-20-25, these are reflected as ascribable personnel and overhead costs.

Company created software can be intended for sale to third parties or used by the Company itself. If the conditions for capitalization are not met, the expenses are recorded with their effect on profit in the year in which they were incurred.

The Company amortizes intangible assets with a limited useful life to the estimated residual book value in accordance with ASC regulations. In addition, in special circumstances according to ASC 350-30, a recoverability test is performed and, if applicable, unscheduled amortization is considered.

The useful life of acquired software is between three and five years and three years for Company-designed software.

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Intangible assets obtained as part of an acquisition which do not meet the criteria for a separate entry are identified as goodwill. Goodwill is reviewed once a year during an impairment test, whereby the appraised fair value of the invested capital of the reporting unit, is compared with the carrying (book) value of its invested capital amount (including goodwill.) Use value is generally applied in order to determine the recoverability of goodwill and intangible assets with an indefinite useful life. The projected financial plan prepared by the management serves as the basis for this determination of use value and the planning assumptions are each adjusted for the current state of knowledge. Reasonable assumptions regarding macroeconomic trends and historical developments are taken into account in making these adjustments. Future estimated cash flows are determined based on the expected growth rates of the markets in question.

If the carrying amount of the reporting unit exceeds the appraised fair value, the impairment based on use value measures the amount of loss, if any, and an unscheduled amortization expense is recorded. If the appraised value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired.

Property, Plant and Equipment

Property, plant and equipment are valued at acquisition or manufacturing costs, reduced by scheduled and, if necessary, unscheduled depreciation. Fixed assets are depreciated on a straight-line basis, prorated over their expected useful life. Scheduled depreciation is mainly based on useful lives of 3 to 10 years. Leasehold improvements are depreciated up to 40 years.

If fixed assets are sold, retired or scrapped, the profit or loss arising from the difference between the net sales proceeds and the residual book value are included under other operating earnings and expenses.

Impairment or Disposal of Long-Lived Assets

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC topic, 360.10. This guidance requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its’ expected cash flows or appraised value In this instance, the asset is considered to be impaired and is written down to fair value.

Revenue Recognition

License Revenues

Our license revenues consist of revenues earned from the licensing of our software products. These products are generally licensed on a perpetual basis. Pricing models have generally been based either upon the physical infrastructure, such as the number of physical desktop computers or servers, on which our software runs or on a per user basis. License revenues are recognized when the elements of revenue recognition for the licensed software are complete, generally upon electronic shipment of the software and the software key to provide full access to all functionalities for our customers. In general our invoices reflect license, service and maintenance components. In the case of multi element contracts, the revenues allocated to the software license in most cases represent the residual amount of the contract after the fair value of the other elements has been determined. Certain products of our software offering are licensed on a subscription basis.

Software Maintenance Revenues

Software maintenance revenues are recognized ratably on a pro-rata basis over the range of the contract period. Our contract periods typically range from one to five years. Vendor-specific objective evidence (“VSOE”) of fair value for software maintenance services is established by the rates charged in stand-alone sales of software maintenance contracts or the stated renewal rate for software maintenance. Customers who are party to software maintenance agreements with us are entitled to receive support, product updates and upgrades on a when-and-if-available basis.

Professional Services Revenues

Professional services include pre-project consulting, software design, customization, project management, implementation and training. Professional services are not considered essential to the functionality of our products, as these services do not alter the product capabilities and may be performed by our customers or by other vendors. Professional services engagements performed for a fixed fee, for which we are able to make reasonably dependable estimates of progress toward completion, are recognized on a proportional performance basis based on hours incurred and estimated hours of completion. Professional services engagements that are on a time and materials basis are recognized based on hours incurred. Revenues on all other professional services engagements are recognized upon completion. Our professional services may be sold with software products or on a stand-alone basis. Vendor Specific Objective Evidence (VSOE) of fair value for professional services is based upon the standard rates we charge for such services when sold separately.

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Foreign Currency Translation

The functional currency of the Company is US dollars. For financial reporting purposes, the financial statements of GROUP were translated into US dollars. Assets and liabilities were translated at the exchange rates at the balance sheet dates and revenue and expenses were translated at the average exchange rates and stockholders’ equity was translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity.

Other Provisions

According to FASB ASC 450 Contingencies, provisions are made whenever there is a current obligation to third parties resulting from a past event which is likely in the future to lead to an outflow of resources and of which the amount can be reliably estimated. Provisions not already resulting in an outflow of resources in the following year are recognized at their discounted settlement amount on the financial statement date. The discount taken is based on market interest rates. The settlement amount also includes the expected cost increases. Provisions are not set off against contribution claims. If the amended estimate leads to a reduction of the obligatory amount, the provision is proportionally reversed and the earnings are recognized in other operating earnings.

Deferred Taxes

Income taxes are provided in accordance with FASB Codification topic 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss-carry forwards.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that, some portion or all of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.

Recent Accounting Pronouncements

In July 2012, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. With the objective of reducing the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-loved asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more-likely-than-not threshold is defined as having the likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed beginning April 1, 2013. Adoption of this new standard is not expected to have significant impact to the Company’s financial statement.

Principles of Consolidation and Reverse Acquisition

As previously disclosed, the Company originally exchanged a total of 5,405,411 shares of common stock in exchange for 50.1% of the outstanding common shares of GROUP (and retained its 50.1% shareholding by acquiring an additional 883,765 shares of GROUP on February 27, 2012). Although the Company was the legal acquirer, the transaction was accounted for as a recapitalization of GROUP in the form of a reverse merger, whereby GROUP became the accounting acquirer and was deemed to have retroactively adopted the capital structure of the Corporation. Accordingly, the accompanying consolidated financial statements reflect the historical consolidated financial statements of GROUP for all periods presented, and do not include the historical financial statements of the Company. All costs associated with the reverse merger transaction were expensed as incurred. Those expenses totaled approximately $300,000 and were included in professional fees in administrative expenses.

The Company has based its financial reporting for the consolidation with GROUP in accordance with FASB Accounting Standard Codification (ASC) 805-40 as it relates to reverse acquisitions. Goodwill has been measured as the excess of the fair value of the consideration effectively transferred by the Company, the acquiree, for financial reporting purposes, over the net amount of the Company’s recognized identifiable assets and liabilities.

We have recorded the acquired assets and liabilities of GBSX on the acquisition date of January 6, 2011, at their fair value and the operations of GBSX have been included in the consolidated financial statements since the acquisition date.

The assets and liabilities of GROUP, the acquirer for financial reporting purposes, are measured and recognized in the consolidated financial statements at their precombination carrying amounts in accordance with ASC 805-40-45-2(a). Therefore, in a reverse acquisition, the non-controlling interest reflects the non-controlling shareholders’ proportionate interest in the pre-combination carrying amounts of GROUP’s net assets even though the non-controlling interests in other acquisitions are measured at their fair values at the acquisition date.

 .

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OFF-BALANCE SHEET ARRANGEMENTS

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

N/A

Item 4.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of March 31, 2013, our management, with the participation of our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial and accounting officer), evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2013, our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

During the quarter ended March 31, 2013, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II-OTHER INFORMATION

Item 1. Legal Proceedings.

None

Item 1A. Risk Factors.

The disclosure required under this item is not required to be reported by small reporting companies; as such term is defined by Item 503(e) of Regulation S-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On February 12, 2013, the Company issued an aggregate of 500,000 restricted shares of Common Stock to a Board Member pursuant to exercise of a common stock purchase warrant issued on October 26, 2012 and exercisable for $0.20 per share. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

On February 12, 2013, the Company issued an aggregate of 250,000 restricted shares of Common Stock to an Accredited Investor (as that term is defined the Securities Act) pursuant to exercise of a common stock purchase warrant issued on November 30, 2012 and exercisable for $0.20 per share. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

On March 20, 2013, the Company issued an aggregate of 450,950 restricted shares of Common Stock to a Board Member pursuant to a February 22, 2013 amendment to a Secured Promissory Note Agreement entered into on August 13, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

On March 27, 2013, the Company issued an aggregate of 200,000 restricted shares of Common Stock to a Board Member pursuant to a February 26, 2013 amendment to a Secured Promissory Note Agreement entered into on October 26, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

62

On March 27, 2013, the Company issued 200,000 restricted shares of Common Stock to a third party non-affiliated consultant in consideration for consulting services rendered by the consultant to the Company. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

Item 3. Defaults Upon Senior Securities.

None

Item 5. Other Information.

Subsequent Events

· Group Live N.V. operating under the laws of the Netherlands and a 100% subsidiary of GROUP declared its end of business May 31, 2012, registered in the commercial register June 22, 2012. Following the local procedures the Company has been dissolved from the register as per April 5, 2013, registered April 16, 2013.Each of the directors of the Company, including all five disinterested directors with respect to the transaction, has approved each of the transaction agreements discussed above and the transactions contemplated thereby.

· On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Stephen D. Baksa (the “Lender’), a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated April 26, 2013 (the “Note”), to Mr. Baksa for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.
 

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(2) thereof.

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.

§ The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.

· On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Vitamin B Venture GmbH (the “Lender”), an entity of which Joerg Ott, the Company’s Chairman  and Chief Executive Officer, has voting and dispositive control. Pursuant to the Loan Agreement, the Company issued to the Lender a secured promissory note, dated October 26, 2012 (the “Note”), for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to be paid to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.

63

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act pursuant to Section 4(2) thereof.

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.

§ The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.

Item 6. Exhibits.

Exhibit
No.	Description
10.1(1)	Stock Purchase Agreement, dated February 1, 2013, by and among IDC Global, Inc., GBS Enterprises Incorporated and Global Telecom & Technology Americas, Inc.
31.1*	Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Executive Officer
31.2*	Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Financial and Accounting Officer
32.1*	Section 1350 Certification of Principal Executive Officer
32.2*	Section 1350 Certification of Principal Financial and Accounting Officer
101.INS (2)	XBRL Instance Document
101.SCH (2)	XBRL Taxonomy Extension Schema Document
101.CAL (2)	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB (2)	XBRL Taxonomy Extension Labels Linkbase Document
101.DEF (2)	XBRL Taxonomy Extension Definition Linkbase Document
101.PRE (2)	XBRL Taxonomy Extension Presentation Linkbase Document

*Filed herewith.

(1) Filed as an Exhibit to the Form 10-Q filed on June 13, 2013 and incorporated by reference herein.  

(2) Furnished herewith. Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Exchange Act of 1934 and otherwise are not subject to liability.

64

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GBS ENTERPRISES INCORPORATED
Date: August 15, 2013	By:	/s/ Joerg Ott
	Joerg Ott
	Chief Executive Officer
	(Principal Executive Officer)
Date: August 15, 2013	By:	/s/ Markus R. Ernst
	Markus R. Ernst
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

65

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 18 U.S.C. SS 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joerg Ott, certify that:

1. I have reviewed this Form 10-Q/A  (Amendment No. 1) for the fiscal quarter ended March 31, 2013 of GBS Enterprises Incorporated, a Nevada corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 15, 2013

/s/ Joerg Ott

Joerg Ott

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 18 U.S.C. SS 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Markus R. Ernst, certify that:

1. I have reviewed this Form 10-Q/A (Amendment No. 1)  for the fiscal quarter ended March 31, 2013 of GBS Enterprises Incorporated, a Nevada corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 15, 2013

/s/ Markus R. Ernst

Markus R. Ernst

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Joerg Ott, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)  the quarterly report on Form 10-Q/A (Amendment No. 1) of GBS Enterprises Incorporated for the fiscal quarter ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)  the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of GBS Enterprises Incorporated.

Date: August 15, 2013	/s/ Joerg Ott
	Joerg Ott
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Markus R. Ernst, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 , that:

(1)  the quarterly report on Form 10-Q/A (Amendment No. 1) of GBS Enterprises Incorporated for the fiscal quarter ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)  the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of GBS Enterprises Incorporated.

Date: August 15, 2013	/s/ Markus R. Ernst
	Markus R. Ernst
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

XML

Sales Revenue by Product (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues [Line Items]
Revenues	$ 5,224,379	$ 6,952,049
Licenses
Revenues [Line Items]
Revenues	871,000
Maintenance
Revenues [Line Items]
Revenues	2,688,000
Partner Contribution
Revenues [Line Items]
Revenues	0
Service
Revenues [Line Items]
Revenues	851,000
Third-Party Products
Revenues [Line Items]
Revenues	685,000
LND Third-Party Products
Revenues [Line Items]
Revenues	129,000
Others
Revenues [Line Items]
Revenues	$ 0

XML

Long-Lived Assets by Geographic Area (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Segment Reporting, Asset Reconciling Item [Line Items]
Property, plant and equipment - Note 10	$ 317,771	$ 332,839
US
Segment Reporting, Asset Reconciling Item [Line Items]
Property, plant and equipment - Note 10	126,000
Germany
Segment Reporting, Asset Reconciling Item [Line Items]
Property, plant and equipment - Note 10	188,000
United Kingdom
Segment Reporting, Asset Reconciling Item [Line Items]
Property, plant and equipment - Note 10	4,000
Other
Segment Reporting, Asset Reconciling Item [Line Items]
Property, plant and equipment - Note 10	$ 0

XML

GOODWILL

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

Note 12 GOODWILL

Goodwill derives from the following business acquisitions:

	Date of
	first							Written off
March 31, 2013	Consolidation	1/1/2013		Additions		Adjustments		as impaired		3/31/2013
GROUP Business Software AG	01/06/11		18,425.6		-		-		-		18,425.6
GROUP Business Software (UK) Ltd.	12/31/05		2,765.1		-		-		-		2,765.1
Permessa Corporation	09/22/11		2,387.4		-		-		-		2,387.4
Pavone GmbH	01/04/11		5,950.5		-		-		-		5,950.5
IDC Global Inc.	07/25/10		2,994.4		-		(2,994)		-		-
GBS India	8/1/2012		1,731.9		-		-		-		1,731.9
			34,254.9		-		(2,994.4)		-		31,260.5

	Date of
	first							Written off
December 31, 2012	Consolidation	1/1/2012		Additions		Adjustments		as impaired		12/31/2012
GROUP Business Software AG	1/6/2011		20,194.4		618.6		(2,387.4)		-		18,425.6
GROUP Business Software Corp	12/31/2005		2,177.5		-		-		2,177.5		-
GROUP Business Software (UK) Ltd.	12/31/2005		2,765.1		-		-		-		2,765.1
evVokus Software GmbH	10/1/2005		443.6		-		(443.60)		-		-
Permessa Corporation	20110-09-22		2,387.4		-		-		-		2,387.4
Pavone GmbH	1/4/2011		5,950.5		-		-		-		5,950.5
IDC Global Inc.	7/25/2010		2,994.4		-		-		-		2,994.4
SD Holdings	2011-09.27		2,213.1		-		(2,213.1)		-		-
GBS India	8/1/2012		-		1,731.9		-		-		1,731.9
			39,126.0		2,350.5		(5,044.1)		2,177.5		34,254.9

XML

Accounts Receivable - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Accounts and Other Receivables [Line Items]
Accounts receivable net	$ 3,206	$ 4,143

XML

Interim Consolidated Statements of Operations and Comprehensive Income/(Loss) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues - Note 23
Products	$ 4,373,010	$ 5,593,365
Services	851,369	1,358,684
Revenues	5,224,379	6,952,049
Cost of goods sold
Products	857,275	1,916,624
Services	2,244,423	2,256,550
Cost of Goods and Services Sold, Total	3,101,698	4,173,174
Gross profit	2,122,681	2,778,875
Operating expenses
Selling expenses	2,371,530	4,178,185
Administrative expenses	1,500,042	1,473,647
General expenses	229,147	227,372
Operating Expenses, Total	4,100,719	5,879,204
Operating income (loss)	(1,978,038)	(3,100,329)
Other Income (expense) - Note 25
Other Income (expense)	173,479	14,501
Interest income	341	1,299
Interest expense	(177,036)	(49,409)
Nonoperating Income (Expense), Total	(3,216)	(33,609)
Income (loss) before income taxes	(1,981,254)	(3,133,938)
Income tax (income) expense	(72,960)	(659,341)
Income (loss) before extraordinary items, discontinued operations	(1,908,294)	(2,474,597)
Net income (loss) before extraordinary items	(1,908,294)	(2,296,939)
Extraordinary items (value adjustment on goodwill)	0	0
Net income (loss)	(1,908,294)	(2,296,939)
Net Loss Attributable to noncontrolling Interest	(574,169)	(719,778)
Net income (loss) attributable to stockholders	(1,334,125)	(1,577,161)
Net earnings (loss) per share, basic and diluted	$ (0.0447)	$ (0.0578)
Weighted average number of common stock outstanding, basic and diluted	29,816,782	27,267,449
Statement of Comprehensive Income (Loss)
Net Income (Loss)	(1,908,294)	(2,296,939)
Foreign currency Translation Adjustment	(659,864)	(255,818)
Comprehensive income (loss)	(2,568,158)	(2,552,757)
Net Loss Attributable to noncontrolling Interest	(574,169)	(719,778)
Less: Other Comprehensive Income (Loss) attributable to noncontrolling interest	(329,272)	(127,653)
Total Comprehensive income (loss) attributed to stockholders	(1,664,717)	(1,705,326)
IDC
Other Income (expense) - Note 25
Discontinued operations	0	110,653
SD Holdings
Other Income (expense) - Note 25
Discontinued operations	$ 0	$ 67,005

XML

SUBSIDIARY COMPANIES

3 Months Ended

Mar. 31, 2013

Subsidiary Companies [Abstract]

SUBSIDIARY COMPANIES

Note 5       SUBSIDIARY COMPANIES

The subsidiaries listed below were included in the basis of consolidation (KUSD = 1,000’s of US Dollars):

		Stockholders'							Profit
		Equity							of the			Date
		as of		Percentage of					Consolidated			of the
		03/31/13		Subscribed Capital					quarter			First
	Headquarters	KUSD		KUSD		in %			KUSD		Ownership	Consolidation
GROUP Business Software (UK) Ltd.	Manchester		(1,330)		23		50.1	%		(77)	I	12/31/2005
GROUP Business Software Corp.	Woodstock		(12,962)		1		50.1	%		(634)	I	12/31/2005
Permessa Corporation	Waltham		(5)		0		50.1	%		0	I	9/22/2010
Relavis Corporation	Woodstock		(819)		2		50.1	%		(10)	I	1/8/2007
GROUP Business Software AG	Eisenach		12,516		36,107		50,1	%		(102)	I	6/1/2011
Pavone GmbH	Boeblingen		(1,165)		47		100	%		22	D	1/4/2011
Groupware Inc.	Woodstock		(482)		1		100	%		0	D	1/6/2011
GBS India	Chennai		93		14		100.	%		(9)	D	9/30/2012

D - Direct Subsidiary

I -   Indirect Subsidiary

Indirect Subsidiaries are owned 50.1% through GROUP Business Software AG

XML

OTHER SHORT TERM LIABILITIES

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

OTHER SHORT TERM LIABILITIES

Note 19          OTHER SHORT TERM   LIABILITIES

Other short-term liabilities of 801 KUSD (December 31, 2012 restated year end: 860 KUSD) includes the following obligations and payments currently due:

Other Short-Term Liabilities	3/31/2013
	KUSD
Purchase Assets Permessa		538
Tax Liabilities/Credits		(57)
Purchase Archiving Software		320
Other Liabilities		0
		801

XML

Deferred Income - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Deferred revenue	$ 8,853	$ 6,100

XML

Property Plant and Equipment - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2013
Minimum
Property, Plant and Equipment [Line Items]
Depreciation period	3 years
Maximum
Property, Plant and Equipment [Line Items]
Depreciation period	10 years
Computer hardware | Minimum
Property, Plant and Equipment [Line Items]
Depreciation period	3 years
Computer hardware | Maximum
Property, Plant and Equipment [Line Items]
Depreciation period	5 years
Other office equipment | Minimum
Property, Plant and Equipment [Line Items]
Depreciation period	3 years
Other office equipment | Maximum
Property, Plant and Equipment [Line Items]
Depreciation period	10 years
Office furnishings | Minimum
Property, Plant and Equipment [Line Items]
Depreciation period	8 years
Office furnishings | Maximum
Property, Plant and Equipment [Line Items]
Depreciation period	10 years
Leasehold Improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciation period	8 years
Leasehold Improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciation period	40 years

XML

SOFTWARE

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

SOFTWARE

Note 13 SOFTWARE

Development costs

The costs of developing new software products and updating products already marketed by the Company are generally recognized as expenses in the period in which they arise. Provided they meet the conditions for capitalization as per FASB ASC 985-20-25, they are capitalized. Capitalized development costs can be attributed to the defined products. These products are technically realizable and there is a target market for them.

The development costs arising in the reporting period result from the personnel costs attributed to the development work as well as overhead costs, provided that these are related to the development work and do not represent general administrative costs. The ascribable overhead costs are directly recognized.

Capitalized development costs are generally amortized over a period of three years starting with the date of marketability of the new products or major releases.

Concessions, Industrial Property Rights, Licenses

The intangible financial assets carried in this item are licenses acquired in exchange for payment.

These financial assets are measured at acquisition cost less scheduled straight-line amortization. The assets added in the scope of the cost price allocation of the business divisions acquired this year.

The useful life spans were based uniformly throughout the Company according to those used by the parent company. Scheduled amortization is performed over a period from three to ten years.

The useful life of the domain “gbs.com”, was estimated as unlimited. This is because no other legal, contractual or other factors exist which would limit its useful life. It is not systematically amortized, but rather annually. Should there exist signs indicating towards impairment it is tested for recoverability and, if necessary, written down to the amount which could be obtained for it if sold.

Amortization of concessions, industrial property and similar rights and assets, as well as licenses to such rights and assets are presented in the profit and loss statement under "Depreciation and Amortization."

Concessions and licenses kUSD	Development of the cost		Development of accumulated depreciation		Balance
Restated 12/31/2012		33038.7		20,831.7		12,207.0
Additions		120		98		22
Disposals		(1,420)		122		(1,298)
Currency differences		143		126		17
Reclassifications		0		0		0
Updated 03/31/2013		31,881.7		21,177.7		10,948.0

XML

Effects of Restatement of Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Disclosure Change In Accounting Policies [Line Items]
Capital Stock, authorized common shares	75,000,000	75,000,000
Capital Stock, common shares par value	$ 0.001	$ 0.001
Capital Stock, authorized preferred shares	25,000,000	25,000,000
Capital Stock, preferred shares par value	$ 0.001	$ 0.001
Issued common stock	30,812,624	29,461,664
Outstanding common stock	30,812,624	29,461,664
Scenario, Previously Reported
Disclosure Change In Accounting Policies [Line Items]
Capital Stock, authorized common shares	75,000,000
Capital Stock, common shares par value	$ 0.001
Capital Stock, authorized preferred shares	25,000,000
Capital Stock, preferred shares par value	$ 0.001
Issued common stock	30,812,624
Outstanding common stock	30,812,624
Restatement Adjustment
Disclosure Change In Accounting Policies [Line Items]
Capital Stock, authorized common shares	75,000,000
Capital Stock, common shares par value	$ 0.001
Capital Stock, authorized preferred shares	25,000,000
Capital Stock, preferred shares par value	$ 0.001
Issued common stock	30,812,624
Outstanding common stock	30,812,624

XML

Supplemental Cash Flow Disclosures - Additional Information (Detail) (USD $)	1 Months Ended	0 Months Ended	1 Months Ended					12 Months Ended						1 Months Ended					1 Months Ended			0 Months Ended	1 Months Ended			0 Months Ended	1 Months Ended
	Apr. 29, 2013	Mar. 02, 2013	Mar. 27, 2013	Apr. 30, 2012	Mar. 27, 2012	Mar. 31, 2012	Apr. 01, 2011	Dec. 31, 2012	Mar. 31, 2013	Dec. 21, 2012	Oct. 26, 2012	Jan. 05, 2011	Nov. 01, 2010	Apr. 28, 2012 RealRisk Ventures, LLC	Apr. 30, 2012 Lotus Holdings Ltd	Mar. 27, 2013 Stephen D. Baksa	Feb. 22, 2013 Stephen D. Baksa	Oct. 26, 2012 Stephen D. Baksa	Mar. 20, 2013 Moore	Feb. 22, 2013 Moore	Aug. 13, 2012 Moore	Jul. 05, 2012 Promissory Notes	Apr. 30, 2012 Vitamin B Venture Gmbh	Apr. 01, 2011 Pavone AG	Jul. 25, 2011 IDC Global Inc.	Jun. 01, 2011 GroupWare, Inc.	Nov. 01, 2011 SD Holdings	Sep. 27, 2011 SD Holdings	Feb. 27, 2012 GROUP Business Software AG
Supplemental Cash Flow Information [Line Items]
Business acquisition net assets acquired																								$ 350,000	$ 750,000	$ 250,000		$ 525,529
Business acquisition, debt assumed																								583,991	883,005	694,617
Business acquisition, shares of common stock issued																								1,000,000	880,000	250,000	612,874	612,874
Business acquisition, acquisition cost																									25,000
Signing bonuses to personnel																									35,000
Debt converted into shares				150,000										550,000	400,000	200,000			450,960				150,000						1,750,000
Common stock outstanding								29,461,664	30,812,624																				26,982,000
Aggregate number of common shares acquired in business acquisition																													13,525,000
Percentage of ownership																													50.10%
Business acquisition additional Common Stock purchased																													883,765
Average purchase price						$ 0.50																							$ 0.70
Amount of notes payable being converted		700,000		172,500										632,500	460,000							552,500	172,500
Warrant Issued To Purchase Common Stock	100,000													550,000	400,000
Exercise price of warrants	0.25			1.75	1.10		1.50	0.21			0.35			1.75	1.75
Common stock warrant exercise period				3 years	3 years	3 years	3 years	3 years						3 years	3 years
Additional paid in capital			$ 70,000			$ 270,208				$ 2,624												$ 26,700
Debt conversion, converted instrument, rate																						8.50%
Debt instrument, interest rate, stated percentage									3.25%			5.00%	5.00%					20.00%			20.00%	20.00%
Conversion rate of conventable promissory note into shares of common stock				$ 1.15										$ 1.15	$ 1.15	$ 0.30	$ 0.30		$ 0.30	$ 0.30	$ 0.30
Stock issued during period, shares, issued for services			200,000

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Property Plant and Equipment (Detail) (USD $)			3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Property Plant and Equipment
Segment Depreciation and Amortization [Line Items]
Beginning Balance, Development of the cost			$ 7,206,500
Additions, Development of the cost			23,000
Disposals, Development of the cost			(36,000)
Currency differences, Development of the cost			9,000
Reclassifications, Development of the cost			0
Ending Balance, Development of the cost			7,202,500
Beginning Balance, Development of accumulated depreciation			6,873,700
Additions, Development of accumulated depreciation			14,000
Disposals, Development of accumulated depreciation			(6,000)
Currency differences, Development of accumulated depreciation			3,000
Reclassifications, Development of accumulated depreciation			0
Ending Balance, Development of accumulated depreciation			6,884,700
Beginning Balance	$ 317,771	$ 332,839

XML

SOFTWARE (Tables)

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Software Development

Amortization of concessions, industrial property and similar rights and assets, as well as licenses to such rights and assets are presented in the profit and loss statement under "Depreciation and Amortization."

Concessions and licenses kUSD	Development of the cost		Development of accumulated depreciation		Balance
Restated 12/31/2012		33038.7		20,831.7		12,207.0
Additions		120		98		22
Disposals		(1,420)		122		(1,298)
Currency differences		143		126		17
Reclassifications		0		0		0
Updated 03/31/2013		31,881.7		21,177.7		10,948.0

XML

COMMON STOCK

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note [Abstract]

COMMON STOCK

Note 22 COMMON STOCK

The Company has authorized capital of 75,000,000 shares of common stock and 25,000,000 shares of “blank check” preferred stock, each with a par value of $0.001. No class of preferred stock has been designated or issued. As of March 31, 2013, there were shares 30,812,624 of common stock outstanding. At the time of the Reverse Merger of the Company by GROUP on January 6, 2011, there were 16,500,000 shares of common stock of the Company outstanding and, as the Reverse Merger was accounted for as a recapitalization and applied retroactively, this balance is recorded as the balance outstanding since inception.

Transactions occurring in 2011

· In March 2011, the Company consummated a private placement offering (the “Private Placement”) of an aggregate of 6,044,000 Units at a purchase price of $1.25 per Unit, for gross proceeds of $7,555,000.  Each Unit was comprised of one share of Common Stock and one three-year Warrant to purchase one share of Common Stock at an exercise price of $1.50 per share (“Private Placement Warrant”). The net proceeds of this offering were $6,878,950. As disclosed in Note 1, the Company issued 1,742,874 shares of common stock for the purchase of Pavone AG., GroupWare, Inc. and SD Holdings Ltd.

· In December, 2011, certain investors exercised their private purchase warrants at $1.50 per share and bought 2,020,000 shares of common stock for net proceeds of $3,024,970 after legal fees.

 Transactions occurring in 2012

· In March, 2012 another investor exercised their private purchase warrant and bought 5,000 shares of common stock for net proceeds of $7,500.

· Also in March, 2012, as a result of purchasing warrants at nominal value, wherein each warrant allowed the holder to purchase one common share at $0.50 for a period of three years, certain investors exercised those warrants and bought 900,000 shares of common stock for net proceeds of $450,000.

· On April 16, 2012, the Company sold 120,000 Units to Joerg Ott, the then Chief Executive Officer and Chairman of the Board of Directors of the Company, for a price of $1.50 per Unit, for a total purchase price of $180,000. Each Unit consisted of one share of Common Stock of the Company and one warrant to purchase one share of Common Stock of the Company from the date of issuance until the third anniversary date of the date of issuance for $1.50 per share. The Company sold the Units and underlying securities to Mr. Ott in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On April 28, 2012, $632,500 in notes payable were converted at $1.15 per unit into 550,000 units with each unit consisting of one common share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the Note pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On April 30, 2012, $460,000 in notes payable to Lotus Holdings Ltd. (“Lotus Holdings”) were converted at $1.15 per unit into 400,000 units, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the Lotus Note pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· Also on April 30, 2012, $172,500 in debt to a company owned by Joerg Ott, the then Chief Executive Officer and Chairman of the Board of Directors of the Company, were converted at $1.15 per unit into 150,000 units, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to purchase one common share at $1.75 for a period of three years. The Company issued the debt pursuant to Section 4(2) under the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On May 10, 2012, the Company sold 30,000 Units to Markus R. Ernst, the Chief Financial Officer of the Company, for a purchase price of $1.50 per unit, for a total purchase price of $45,000. Each unit consists of one share of common stock of the Company and one warrant, allowing the holder to purchase one share of common stock of the Company from the date of issuance until the third anniversary date of the date of issuance for $1.50 per share. The Company sold the units and underlying securities to Mr. Ernst in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On May 15, 2012, the Company issued 150,000 unregistered shares of common stock to Kjell Jahn, the former selling stockholder of GroupWare, AG, a Florida corporation purchased by the Company in June 2011. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with Mohammad A. Shihadah, a member of the Board. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to Mr. Shihadah for the principal amount of $50,000, bearing interest at a rate of 8% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised, Mr. Shihadah would receive a 3-year warrant to purchase shares at 50,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement Mr. Shihadah was issued a 3-year warrant to purchase shares at 50,000 shares of common stock at $1.00 per share.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with K Group Ltd. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to K Group Ltd. for the principal amount of $250,000, bearing interest at a rate of 8.5% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised, K Group Ltd. would receive a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement K Group was issued a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

· On July 5, 2012, the Company entered into a convertible promissory note agreement (the “Loan Agreement”) with Vitamin B Venture GmbH. Pursuant to the Loan Agreement, the Company issued a convertible promissory note, dated July 5, 2012 (the “Note”), to Vitamin B Venture GmbH for the principal amount of $252,500, bearing interest at a rate of 8.5% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note.

The Note was convertible in full at $0.50 per share into common stock of the Company if this conversion was exercised on or before September 30, 2012. If not exercised Vitamin B Venture GmbH would receive a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

The conversion was not exercised by September 30, 2012, therefore, as per the terms of the Loan Agreement Vitamin B Venture GmbH was issued a 3-year warrant to purchase shares at 250,000 shares of common stock at $1.00 per share.

· On August 13, 2012, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with John A. Moore, a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated October 26, 2012 (the “Note”), to Mr. Moore for the principal amount of $1,000,000, bearing interest at a rate of 20% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note, without any penalty for prepayment. To secure the obligations of the Company under the Note, the Company granted Mr. Moore a secured priority security interest in the Company’s Accounts Receivable and its subsidiaries located in the United States of America, as more fully described in the full text of the document.

In connection with the execution of the Loan Agreement, on October 26, 2012, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.35 until the third anniversary date of the date of issuance. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities and Exchange Act of 1933, as amended, pursuant to Section 4(2) thereof.

In connection with the Loan Agreement, on February 22, 2013, the Company and Mr. Moore amended the Note pursuant to which Mr. Moore agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 450,960 shares of Common Stock to Mr. Moore. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On October 26, 2012, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Stephen D. Baksa, a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated October 26, 2012 (the “Note”), to Mr. Baksa for the principal amount of $1,000,000, bearing interest at a rate of 20% per year and maturing on the earlier of the first anniversary date of the date of issuance or such other time as described in more detail in the Note, without any penalty for prepayment. To secure the obligations of the Company under the Note, the Company granted the Baksa a first priority security interest in all of the Company’s right, title and interest in and to the shares of IDC Global, Inc. then owned by the Company. The Note contains customary provisions upon an Event of Default, as more fully described in the full text of the document.

In connection with the execution of the Loan Agreement, on October 26, 2012, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 500,000 shares of common stock at an exercise price of $0.20 until the third anniversary date of the date of issuance. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities and Exchange Act of 1933, as amended, pursuant to Section 4(2) thereof. On February 12, 2013, Mr. Baksa exercised the right to purchase 500,000 shares of common stock at the exercise price of $0.20.

In connection with the Loan Agreement, on February 22, 2013, the Company and Mr. Baksa amended the Note pursuant to which Mr. Baksa agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 200,000 shares of Common Stock to Mr. Baksa. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities

Transactions occurring in 2013

· As stated above, on February 12, 2013, and in connection with the above October 26, 2012 Loan Agreement the Company issued an aggregate of 500,000 restricted shares of Common Stock to Board Member, Stephen Baksa pursuant to exercise of a common stock purchase warrant issued on October 26, 2012 and exercisable for $0.20 per share. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On February 12, 2013, the Company sold an aggregate of 250,000 restricted shares of Common Stock to an Accredited Investor (as that term is defined the Securities Act) pursuant to exercise of a common stock purchase warrant issued on November 30, 2012 and exercisable for $0.20 per share. The Company issues the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

As of March 31, 2013, these shares had not yet been issued and remain as Subscriptions Receivable.

· As stated above, on February 22, 2013 and in connection with the above August 13, 2012 Loan Agreement, the Company and Board Member, John Moore amended the Note pursuant to which Mr. Moore agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 450,960 shares of Common Stock to Mr. Moore. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· As stated above, on February 22, 2013, and in connection with the above October 26, 2012 Loan Agreement, the Company and Board Member Stephen Baksa amended the Note pursuant to which Mr. Baksa agreed to convert the interest due under the Note into shares of GBSX common stock at a rate of $0.30 per share. Pursuant to the amendment, the Company issued 200,000 shares of Common Stock to Mr. Baksa. The Company issued the shares in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 20, 2013, the Company issued an aggregate of 450,950 restricted shares of Common Stock to Board Member, John Moore pursuant to a February 22, 2013 amendment to a Secured Promissory Note Agreement entered into on August 13, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 27, 2013, the Company issued an aggregate of 200,000 restricted shares of Common Stock to Board Member, Stephen Baksa pursuant to a February 22, 2013 amendment to a Secured Promissory Note Agreement entered into on October 26, 2012 between the Company and the Board Member. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

· On March 27, 2013, the Company issued 200,000 restricted shares of Common Stock to a third party non-affiliated consultant in consideration for consulting services rendered by the consultant to the Company. The Company issued the securities in reliance on Section 4(2) of the Securities Act due to the fact that the issuance was isolated and did not involve a public offering of securities.

Other changes in common stock are disclosed in Note 26, Supplementary Cash Flow Disclosures.

Options

The Company has not issued any options, so that none are outstanding as of March 31, 2013.

Warrants

The Company has issued warrants in four different manners. In each instance, the warrant allows the holder to purchase a common share within a three year period from issuance at a specific price per share. In the first instance, warrants have been issued as part of a private placement offering wherein the investor purchases a common share, and a warrant. The fair value of those warrants has been determined (and is shown below) by utilizing the residual method, whereby the current market value of the stock is deducted from the unit price and the remainder is allocated to the warrant. The valuation of the warrants issued is for disclosure purposes only and has no impact to the financial statements. A description of those warrants has been described above under common shares. 

The second manner in which warrants are issues is in respect to financing by way of the issuance of notes payable or the conversion of debt into shares. In these instances, the fair value of the warrant has been determined using the effective interest rate method whereby the note is discounted when the interest rate is less than other similar notes and discount is allocated to the warrant and credited to additional paid in capital. The corresponding charge to discount is then amortized over the life of the note. Where there is no difference in interest terms, no value is attributable to the warrant.

The Company has also sold warrants at nominal value to certain investors. In this instance the fair value of the warrants has been determined using a Black-Scholes option pricing model with volatility, equity value and interest rate inputs noted below. The valuation of the warrants issued is for disclosure purposes only and has no impact to the financial statements.

Lastly, the Company has issued warrants to outside consultants in payments for services. The warrants are issued as “cashless” warrants and have been valued using a Black-Scholes option pricing model with volatility, equity value and interest rate inputs noted below.. The fair value of warrants issued for financing are determined for disclosure purposes as there is no impact to the financial statements. The fair value for other services, namely legal, and consulting have been recorded in the financial statements with a charge to the corresponding expense account and a credit to additional paid in capital.

Black Scholes assumptions for warrants issued were as follows:

For the period ending December 31, 2012 -		December 31, 2011
Volatility -	120.6 – 134.3%	77.1%
Risk free interest rate -	0.34% - 0.51%	1.19%
Expected life -	3 years	3 years
Dividend rate -	Nil	Nil

The following share purchase warrant transactions have not been disclosed elsewhere.

On April 1, 2011, the former CFO was issued 100,000 share purchase warrants, which gave him the option of purchasing 100,000 shares of common stock for a period of 3 years at a price of $1.50 per common share. The value of this issuance, using the Black Scholes pricing model was determined to $34,000 and this amount was recorded as a consulting expense.

In March, 2012, the Company issued an aggregate of 2,020,000 warrants to five “accredited investors” pursuant to Section 4(2) of the Securities Act. Each investor warrant is exercisable for the three-year period commencing from the date of issuance for $0.50 per share of Common Stock and has the same terms as the Private Placement Warrants. As noted above investors immediately exercised warrants and purchased 900,000 shares of common stock for $450,000. On March 27, 2012, the Company issued an aggregate of 250,000 warrants to 3 outside consultants pursuant to Section 4(2) of the Securities Act. Each warrant is exercisable for the three-year period commencing from the date of issuance for $1.10 per share of Common Stock and has the same terms as the Private Placement Warrants. The value of this issuance, using the Black Scholes pricing model was determined to $270,208 and this amount was recorded as a professional expense.

In December, 2012, The Company issued 16,875 warrants to an outside consultant pursuant to Section 4(2) of the Securities Act. Each warrant is exercisable for the three-year period commencing from the date of issuance for $0.21 per share of Common Stock and has the same terms as the Private Placement Warrants. The value of this issuance, using the Black Scholes pricing model was determined to $2,624 and this amount was recorded as a consulting expense.

	# of shares						Fair value							Balance
	allowed to				Strike		at							End of
	purchase		Issue	Expiry	Price		Issuance			Issued		Exercised		Period
	#		Date	Date	$		$			#		#		#
Opening - Jan 1, 2011		2,000,000	10/1/2010	6/1/2013		4.00		-			-		-		2,000,000
Issued for financing services			3/11/2011	3/11/2014		1.50		-			707,280		-		707,280
Issued for financing services			3/28/2011	3/28/2014		1.50		-			15,000		-		15,000
Sold with share units			3/31/2011	3/31/2014		1.50		-			6,044,000		2,020,000		4,024,000
Issued for consulting services			4/1/2011	4/1/2014		1.50		34,000	(1)		100,000		-		100,000
Closing - Dec 31, 2011											6,866,280		2,020,000		6,846,280
Opening - Jan 1, 2012		6,846,280											5,000		6,841,280
Amended		(2,000,000)	10/1/2010	6/1/2013		4.00		-			-		-		-
Reissued		2,000,000	6/1/2012	6/1/2015		1.00		556,785			-		-		-
Issued for legal services			3/31/2012	3/31/2012		1.10		270,208	(2)		250,000		-		250,000
Issued for nominal value			3/28/2012	3/28/2015		0.50		2,457,662			2,020,000		900,000		1,120,000
Sold with share units			4/16/2012	4/16/2015		1.50		90,000			120,000		-		120,000
Issued with debt conversion			4/28/2012	4/28/2015		1.75		-			550,000		-		550,000
Issued with debt conversion			4/30/2012	4/30/2015		1.75		-			500,000		-		500,000
Sold with share units			5/10/2012	5/10/2015		1.50		25,800			30,000		-		30,000
Issued with debt			7/5/2012	7/5/2012		0.50		26,500			550,000		-		550,000
Issued with debt			8/13/2012	8/13/2015		0.35		-			100,000		-		100,000
Issued with debt			10/26/2012	10/29/2015		0.20		-			500,000		500,000		-
Issued with debt			11/30/2012	11/30/2015		0.20		-			500,000		250,000		250,000
Issued for consulting services			12/21/2012	12/21/2015		0.21		2,624	(1)		16,875		-		16,875
Closing - Dec 31, 2012											5,136,875		1,655,000		10,328,155
Opening - Jan 1, 2013		10,328,155													10,328,155
Transfer (3/11/2011)		739,000	2/6/2013	3/11/2014		1.50		-			-		-		739,000
Closing - Mar 31, 2013											5,136,875		1,655,000		11,067,155

(1) recorded as consulting expense

(2) recorded as legal expense

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LIABILITIES TO BANKS - NON-CURRENT

3 Months Ended

Mar. 31, 2013

Liabilities, Noncurrent [Abstract]

LIABILITIES TO BANKS - NON-CURRENT

Note 21           LIABILITIES TO BANKS – NON-CURRENT

Liabilities to banks as of the financial statement date was 2,563 KUSD (December 31, 2012 restated year end: 3,716 KUSD) represent bank obligations of GROUP AG with Baden-Württembergische Bank with a credit line totaling approx. 3,844 KUSD (3,000 KEUR) and are collateralized by a silent blanket agreement for GROUP AG’s trade receivables. The loan is provided with approx. 2,563 KUSD (2,000 KEUR) as an asset backed security and with 1,281 KUSD (1,000 KEUR) as a credit line backed up with the accounts receivables of GROUP AG. The term of the loan runs until June 30, 2014. The Company has curtailed the risk of changing interest rates existing with regard to liabilities to banks due to variable interest rate agreements by obtaining a fixed interest rate for half of its credit line. Accordingly, approx. 1,922 KUSD (1,500 KEUR) is bearing interest at prime plus 1.5% and approx. 1,922 KUSD (1,500 KEUR) is fixed at 3.5%

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Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended		3 Months Ended			3 Months Ended
	Mar. 31, 2013	Aug. 01, 2012	Mar. 31, 2013 General and Administrative Expense Professional Fees	Mar. 31, 2013 GROUP Business Software AG	Jan. 06, 2011 GROUP Business Software AG	Mar. 31, 2013 Software Development	Mar. 31, 2013 Minimum	Mar. 31, 2013 Minimum Leasehold Improvements	Mar. 31, 2013 Minimum Acquired software	Mar. 31, 2013 Maximum	Mar. 31, 2013 Maximum Leasehold Improvements	Mar. 31, 2013 Maximum Acquired software
Summary Of Significant Accounting Policies [Line Items]
Number of segments	1
Acquired software useful life									3 years			5 years
Company-designed software useful life						3 years
Property plant and equipment useful life							3 years	8 years		10 years	40 years
Software maintenance revenues recognized contract period							1 year			5 years
Exchange of shares of common stock				5,405,411
Reserve Merger Transaction			$ 300,000
Business acquisition, percentage of interests acquired		100.00%		50.10%	50.10%

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SUBSIDIARY COMPANIES (Tables)

3 Months Ended

Mar. 31, 2013

Subsidiary Companies [Abstract]

Subsidiaries Included in Basis of Consolidation

The subsidiaries listed below were included in the basis of consolidation (KUSD = 1,000’s of US Dollars):

		Stockholders'							Profit
		Equity							of the			Date
		as of		Percentage of					Consolidated			of the
		03/31/13		Subscribed Capital					quarter			First
	Headquarters	KUSD		KUSD		in %			KUSD		Ownership	Consolidation
GROUP Business Software (UK) Ltd.	Manchester		(1,330)		23		50.1	%		(77)	I	12/31/2005
GROUP Business Software Corp.	Woodstock		(12,962)		1		50.1	%		(634)	I	12/31/2005
Permessa Corporation	Waltham		(5)		0		50.1	%		0	I	9/22/2010
Relavis Corporation	Woodstock		(819)		2		50.1	%		(10)	I	1/8/2007
GROUP Business Software AG	Eisenach		12,516		36,107		50,1	%		(102)	I	6/1/2011
Pavone GmbH	Boeblingen		(1,165)		47		100	%		22	D	1/4/2011
Groupware Inc.	Woodstock		(482)		1		100	%		0	D	1/6/2011
GBS India	Chennai		93		14		100.	%		(9)	D	9/30/2012

D - Direct Subsidiary

I -   Indirect Subsidiary

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2013

Payables and Accruals [Abstract]

Other Accrual

Other provisions are created as of the financial statement date in an amount necessary according to a reasonable commercial appraisal, to cover future payment obligations, perceivable risks and uncertain liabilities of the Company. Amounts deemed to be most likely to occur, in careful assessment, are accrued.

	Status								Currency		Status
USD	12/31/2012		Utilization		Dissolution		Increase		Differences		3/31/2013
Tax provision		57		(57)		0		55		0		55
Salary		861		(861)		24		434		16		426
Vacation		315		(303)		30		258		12		253
Workers Compensation Insurance Association		25		(21)		0		25		1		30
Compensation Levy for Non-Employment of Severely Handicapped Persons		19		(16)		0		17		0		21
Outstanding Invoices		1,059		(1,056)		60		489		22		454
Annual Financial Statement Costs		128		(186)		0		180		4		126
Other Provisions		446		(221)		0		118		6		349
Warranties		96		(16)		0		6		41		127
Gesture of Goodwill		0		0		0		0		0		0
Provision for Legal Costs		73		(4)		0				5		74
Severance		70		(70)		0		70		0		70
Total		3,149		(2,811)		114		1654		107		1,985

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Effects of Restatement of Operations and Comprehensive Income/(Loss) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Disclosure Change In Accounting Policies [Line Items]
Net sales	$ 5,224,379	$ 6,952,049
Cost of goods sold	3,101,698	4,173,174
Gross profit	2,122,681	2,778,875
Operating expenses
Selling expenses	2,371,530	4,178,185
Administrative expenses	1,500,042	1,473,647
General expenses	229,147	227,372
Operating Expenses, Total	4,100,719	5,879,204
Operating income	(1,978,038)	(3,100,329)
Other Income (expense)
Other Income (expense)	173,479	14,501
Interest income	341	1,299
Interest expense	(177,036)	(49,409)
Nonoperating Income (Expense), Total	(3,216)	(33,609)
Income (loss) before income taxes	(1,981,254)	(3,133,938)
Income tax (income) expense	(72,960)	(659,341)
Net income (loss)	(1,908,294)	(2,296,939)
Net income (loss) attributable to non controlling interest	(574,169)	(719,778)
Net income (loss) attributable to shareholders	(1,334,125)	(1,577,161)
Foreign currency Translation Adjustment	(659,864)	(255,818)
Net income (loss) and comprehensive income (loss) attributed to shareholders	(1,664,717)	(1,705,326)
Basic and diluted income (loss) per share	$ (0.0447)	$ (0.0578)
Weighted average number of shares outstanding	29,816,782	27,267,449
Scenario, Previously Reported
Disclosure Change In Accounting Policies [Line Items]
Net sales	5,224,379
Cost of goods sold	3,101,698
Gross profit	2,122,681
Operating expenses
Selling expenses	2,371,530
Administrative expenses	1,500,042
General expenses	229,147
Operating Expenses, Total	4,100,719
Operating income	(1,978,038)
Other Income (expense)
Other Income (expense)	173,479
Interest income	341
Interest expense	(177,036)
Nonoperating Income (Expense), Total	(3,216)
Income (loss) before income taxes	(1,981,254)
Income tax (income) expense	(72,960)
Net income (loss)	(1,908,294)
Net income (loss) attributable to non controlling interest	(574,169)
Net income (loss) attributable to shareholders	(1,334,125)
Foreign currency Translation Adjustment	(659,864)
Net income (loss) and comprehensive income (loss) attributed to shareholders	(1,664,717)
Basic and diluted income (loss) per share	$ (0.509)
Weighted average number of shares outstanding	24,847,525
Restatement Adjustment
Disclosure Change In Accounting Policies [Line Items]
Net sales	0
Cost of goods sold	0
Gross profit	0
Operating expenses
Selling expenses	0
Administrative expenses	0
General expenses	0
Operating Expenses, Total	0
Operating income	0
Other Income (expense)
Other Income (expense)	0
Interest income	0
Interest expense	0
Nonoperating Income (Expense), Total	0
Income (loss) before income taxes	0
Income tax (income) expense	0
Net income (loss)	0
Net income (loss) attributable to non controlling interest	0
Net income (loss) attributable to shareholders	0
Foreign currency Translation Adjustment	0
Net income (loss) and comprehensive income (loss) attributed to shareholders	$ 0
Basic and diluted income (loss) per share	$ 0.464
Weighted average number of shares outstanding	4,969,257

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Note 26 SUBSEQUENT EVENTS

⋅ Group Live N.V. operating under the laws of the Netherlands and a 100% subsidiary of Group Business Software AG declared its end of business May 31, 2012, registered in the commercial register June 22, 2012. Following the local procedures the Company has been dissolved from the register as per April 5, 2013, registered April 16, 2013.Each of the directors of the Company, including all five disinterested directors with respect to the transaction, has approved each of the transaction agreements discussed above and the transactions contemplated thereby.

⋅ On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Stephen D. Baksa (the “Lender’), a member of the Board. Pursuant to the Loan Agreement, the Company issued a secured promissory note, dated April 26, 2013 (the “Note”), to Mr. Baksa for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.

§ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(2) thereof.

§	In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.
§	The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.
·	On April 26, 2013, the Company entered into a note purchase and security agreement (the “Loan Agreement”) with Vitamin B Venture GmbH (the “Lender”), an entity of which Joerg Ott, the Company’s Chairman, has voting and dispositive control. Pursuant to the Loan Agreement, the Company issued to the Lender a secured promissory note, dated October 26, 2012 (the “Note”), for the principal amount of $200,000, bearing interest at a rate of 2% per month and maturing on June 30, 2013 or such other time as described in more detail in the Note, without any penalty for prepayment. This Note is secured by fifty percent (50%) of certain financial holdbacks to be paid to the Company pursuant to the Stock Purchase Agreement, dated February 1, 2013, by and among the Company, IDC Global, Inc. and Global Telecom & Technology Americas, Inc.

⋅ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from May 1, 2013 until April 30, 2016. The Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act pursuant to Section 4(2) thereof.

⋅ In connection with the execution of the Loan Agreement, on April 29, 2013, the Company issued the Lender a conditional common stock purchase warrant (the “Conditional Warrant”) which is exercisable in the event that Note is not paid in full by June 30, 2013, pursuant to which the Lender is entitled to purchase 100,000 shares of common stock at an exercise price of $0.25 from July 1, 2013 until June 30, 2016 as described more fully in the Note. The Conditional Warrant was issued in a private transaction between the Company and the Lender and was exempt from registration under the Securities Act, pursuant to Section 4(2) thereof.

⋅ The Company intends on expediently paying off the amounts loaned in connection with the above referenced Loan Agreement. If needed, the Company will aggressively re-negotiate the terms of the Loan Agreement with the Lender.

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Liabilities to Banks-Current - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Jan. 05, 2011	Nov. 01, 2010
Line Of Credit Facility [Line Items]
Line of credit maximum borrowing capacity	$ 100
Checks in transit	4
Line of credit interest rate	3.25%		5.00%	5.00%
Line of Credit, Current	$ 5	$ 5

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Liabilities to Banks – Non-Current - Additional Information (Detail)				3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 EUR (€)	Dec. 31, 2012 USD ($)	Mar. 31, 2013 Loans	Mar. 31, 2013 Asset-backed Securities USD ($)	Dec. 31, 2012 Asset-backed Securities EUR (€)	Mar. 31, 2013 Credit Line Backed USD ($)	Dec. 31, 2012 Credit Line Backed EUR (€)	Mar. 31, 2013 Varible Rate Of Debt USD ($)	Mar. 31, 2013 Varible Rate Of Debt EUR (€)	Mar. 31, 2013 Banks Fixed Rate EUR (€)
Long Term Debt Maturities Repayments Of Principal [Line Items]
Line of credit facility, amount outstanding	$ 2,563		$ 3,716		$ 2,563	€ 2,000	$ 1,281	€ 1,000
Line of credit facility, current borrowing capacity	4,000	3,000									2,000
Debt instrument, maturity date				Jun. 30, 2014
Debt instrument, basis spread on variable rate									1.50%	1.50%
Long-term debt, percentage bearing variable interest, amount									$ 1,922	€ 1,500
Line of credit, fixed interest rate											3.50%

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Breakdown of Notes Payable (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Short-term Debt [Line Items]
Principal	$ 250,000	$ 2,250,000
Interest Accrued	10,421	63,572
Total	260,421	2,313,572
Accrued Interest converted into shares	36,165
Payments for principal of notes payable	2,000,000
Payments for interest	16,986
Repayments of notes payable total	2,053,151
Notes Payable One
Short-term Debt [Line Items]
Date of Loan	Jul. 05, 2012
Principal	250,000
Interest Accrued	10,421
Total	260,421
Notes Payable Two
Short-term Debt [Line Items]
Date of Loan	Oct. 26, 2012
Principal	1,000,000
Interest Accrued	36,165
Total	1,036,165
Notes Payable Three
Short-term Debt [Line Items]
Date of Loan	Nov. 30, 2012
Principal	500,000
Interest Accrued	8,493
Total	508,493
Notes Payable Four
Short-term Debt [Line Items]
Date of Loan	Nov. 30, 2012
Principal	500,000
Interest Accrued	8,493
Total	$ 508,493

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COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note [Abstract]

Assumptions for Warrants Issued

Black Scholes assumptions for warrants issued were as follows:

For the period ending December 31, 2012 -		December 31, 2011
Volatility -	120.6 – 134.3%	77.1%
Risk free interest rate -	0.34% - 0.51%	1.19%
Expected life -	3 years	3 years
Dividend rate -	Nil	Nil

Summary of Warrants Issued

The value of this issuance, using the Black Scholes pricing model was determined to $2,624 and this amount was recorded as a consulting expense.

	# of shares						Fair value							Balance
	allowed to				Strike		at							End of
	purchase		Issue	Expiry	Price		Issuance			Issued		Exercised		Period
	#		Date	Date	$		$			#		#		#
Opening - Jan 1, 2011		2,000,000	10/1/2010	6/1/2013		4.00		-			-		-		2,000,000
Issued for financing services			3/11/2011	3/11/2014		1.50		-			707,280		-		707,280
Issued for financing services			3/28/2011	3/28/2014		1.50		-			15,000		-		15,000
Sold with share units			3/31/2011	3/31/2014		1.50		-			6,044,000		2,020,000		4,024,000
Issued for consulting services			4/1/2011	4/1/2014		1.50		34,000	(1)		100,000		-		100,000
Closing - Dec 31, 2011											6,866,280		2,020,000		6,846,280
Opening - Jan 1, 2012		6,846,280											5,000		6,841,280
Amended		(2,000,000)	10/1/2010	6/1/2013		4.00		-			-		-		-
Reissued		2,000,000	6/1/2012	6/1/2015		1.00		556,785			-		-		-
Issued for legal services			3/31/2012	3/31/2012		1.10		270,208	(2)		250,000		-		250,000
Issued for nominal value			3/28/2012	3/28/2015		0.50		2,457,662			2,020,000		900,000		1,120,000
Sold with share units			4/16/2012	4/16/2015		1.50		90,000			120,000		-		120,000
Issued with debt conversion			4/28/2012	4/28/2015		1.75		-			550,000		-		550,000
Issued with debt conversion			4/30/2012	4/30/2015		1.75		-			500,000		-		500,000
Sold with share units			5/10/2012	5/10/2015		1.50		25,800			30,000		-		30,000
Issued with debt			7/5/2012	7/5/2012		0.50		26,500			550,000		-		550,000
Issued with debt			8/13/2012	8/13/2015		0.35		-			100,000		-		100,000
Issued with debt			10/26/2012	10/29/2015		0.20		-			500,000		500,000		-
Issued with debt			11/30/2012	11/30/2015		0.20		-			500,000		250,000		250,000
Issued for consulting services			12/21/2012	12/21/2015		0.21		2,624	(1)		16,875		-		16,875
Closing - Dec 31, 2012											5,136,875		1,655,000		10,328,155
Opening - Jan 1, 2013		10,328,155													10,328,155
Transfer (3/11/2011)		739,000	2/6/2013	3/11/2014		1.50		-			-		-		739,000
Closing - Mar 31, 2013											5,136,875		1,655,000		11,067,155

(1) recorded as consulting expense

(2) recorded as legal expense

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Other Short-Term Liabilities Summarize (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Short-term Debt [Line Items]
Other Liabilities	$ 800,740	$ 860,032
Other Liabilities
Short-term Debt [Line Items]
Other Liabilities	0
Purchase Assets Permessa
Short-term Debt [Line Items]
Other Liabilities	538,000
Tax Liabilities/Credits
Short-term Debt [Line Items]
Other Liabilities	(57,000)
Purchase Archiving Software
Short-term Debt [Line Items]
Other Liabilities	$ 320,000

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DUE TO RELATED PARTIES

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

DUE TO RELATED PARTIES

Note 20           DUE TO RELATED PARTIES

Related parties basically refer to the Board of Directors, Supervisory Board, stockholders and associated companies.

Business transactions between the companies and its subsidiaries which are also considered to be related companies were eliminated through the consolidation and are not reflected within these footnotes to the consolidated statements.

Remuneration of the management occupying key positions in the Corporation subject to disclosure includes the remuneration of the Board of Directors and that of the Supervisory Board.

	3/31/2013		12/31/2012 Restated
	KUSD		KUSD
Accounts payable and accruals
Green Mind Ventures		0		72.0
Vitamin-B Venture Gmbh		0		493.6
Board of Directors fees and expenses		224.5		110.4
Notes payable – see below		52.0		1,391.8
Due to associated company		0		48.1
		276.5		2,115.9

	Date of Loan	Principal		Interest Accrued		Total		Due Date
		$		$		$
Total	7/5/2012		50,000		2,084		52,084	1/5/2013

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COMPANY AND BACKGROUND

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPANY AND BACKROUND

Note 1      COMPANY AND BACKROUND

GBS Enterprises Incorporated, a Nevada corporation, through its subsidiaries, is a global provider of technology solutions for businesses and government agencies. We focus on developing and delivering solutions that help our customers to gain value and reduce cost in the development, deployment and management of the applications used in the course of conducting their business (“business applications”). We do this by building software and providing services that aid in:

¨ Information Technology (“IT”) systems analysis, planning and management;

¨ Automating business processes;

¨ Optimizing system and application performance;

¨ Ensuring the security and compliance of systems, applications and processes; and

¨ Migrating and integrating systems, applications and processes.

Our customers include corporate and government IT departments, solutions integrators (“SIs”) and independent software vendors (“ISVs”). Our corporate customers are from a variety of industries, including insurance, financial services, pharmaceuticals, healthcare, manufacturing, logistics, and education. The install-base of our software products spans more than 5,000,000 users in 38 countries on four continents. We principally market and sell our products and services directly in the United States, Canada, United Kingdom, Germany, Austria, Switzerland, the Nordics and India; and indirectly through local distributors and resellers representing Australia, South America and regionally in Europe.

Our software and services are designed to mainly serve organizations that have investments in IBM’s Lotus® Notes and Domino platform. The IBM Lotus® Notes and Domino platform is both a system for enterprise email as well as an application platform, meaning that it can be used as both an email system and an environment in which business applications can be deployed and used. This platform was originally brought to market by Lotus Development Corp. in 1989, and was subsequently acquired by IBM in 1995. According to Radiate, in 2011, IBM Lotus Domino will have a worldwide installed base of 189 million mailboxes. Currently, the installed base for On-Premises IBM Lotus Domino mailboxes represents the majority of worldwide IBM Lotus Domino mailboxes, accounting for 87% of worldwide IBM Lotus Domino mailboxes. By 2015, this percentage is expected to decrease to 80%, as hosted email grows in popularity. (The Radiate Group Inc., April 2011, “IBM Lotus Notes/Domino Market Analysis, 2011-2015“)

We, through our subsidiaries, have executed our strategy to acquire companies, which have developed software and specialized services for the Lotus Notes and Domino market. This growth by acquisition strategy has resulted in less competition for our software products; a large concentration of highly skilled employees with unique expertise in the area of Lotus Notes and Domino; staff and physical offices on three continents providing greater access to a global market; significant market awareness and greater market share amongst organizations that use Lotus Notes and Domino; and a comprehensive portfolio of solutions specific to the needs and requirements of organizations which use Lotus Notes and Domino.

While our products and services remain in use and demand, over the last several years, the market itself has been undergoing a paradigm shift. New technologies, especially in the areas of Cloud Computing and Mobile applications, have grown in popularity due to the potential cost savings and operational efficiencies they can offer. As organizations make investments in these new technologies, they are faced with highly complex and costly projects to migrate (“migration”) or replace their existing systems that don’t operate in the cloud or on mobile devices (“modernization”) – this includes their existing email and business applications that run on Lotus Notes and Domino.

To that end, we have acquired and developed technologies that help organizations reduce the time, cost, resources and risks associated with these highly complex migration and modernization projects.

General Corporate History

We were incorporated in Nevada on March 20, 2007 as SWAV Enterprises Ltd. (“SWAV”). SWAV was an importer and wholesaler of Chinese manufactured goods.

On April 26, 2010, SWAV purchased certain technology assets of Lotus Holdings Ltd. (“Lotus”) in exchange for 2,265,240 shares of SWAV common stock. Also on April 26, 2010, Lotus (on behalf of the SPPEF Members as discussed below) purchased an aggregate of 11,984,770 of the outstanding shares of common stock from the selling shareholders of SWAV for an aggregate of $370,000. As a result of the two sets of transactions, Lotus owned an aggregate of 14,250,010 shares of common stock of SWAV, representing approximately 95.0% of the 15,000,000 shares of SWAV common stock outstanding on April 26, 2010.

On September 6, 2010, SWAV’s name was changed to GBS Enterprises Incorporated. On October 14, 2010, the Company’s trading symbol on the OTC Bulletin Board was changed from SWAV to GBSX.

About Lotus Holdings, Ltd.

Lotus is a holding company which was formed under the laws of Gibraltar for the purpose of financing merger and acquisition projects, specifically in the niche market of small or microcap companies listed on the Frankfurt Stock Exchange with complex shareholder structures and whose stock is trading below one Euro (€1.00) per share.

SPPEFs

Lotus typically finances its merger and acquisition projects through the use of Special Purpose Private Equity Funds (“SPPEFs”). Typically, SPPEFs are funded by a company’s major shareholders (the “Major Shareholders”) seeking to raise capital for projects and who fund at least 50% of the SPPEF, with the remaining portion being provided through the investment community and network of investors in Lotus. Each SPPEF is co-managed by a representative of the company’s Major Shareholders (the “Representative Secretary”) and an attorney appointed by Lotus (the “Lotus Representative”).

On February 25, 2010, a group of shareholders (the “GROUP Major Shareholders”) of GROUP Business Software AG, a German public company trading on the Frankfurt Stock Exchange under the symbol “INW” (“GROUP”), engaged Lotus to provide financial consulting and advisory services, on a non-exclusive basis, for the primary task of establishing a SPPEF. On March 12, 2010, the GROUP Major Shareholders and Lotus established and funded a SPPEF with $1,400,000, consisting of $1,000,000 from the GROUP Major Shareholders and $400,000 from a Lotus investor (collectively, the “SPPEF Members”).

In early April 2010, the SPPEF Members decided to acquire SWAV. As disclosed above, on April 26, 2010, Lotus, on behalf of the SPPEF Members, acquired an aggregate of 11,984,770 shares of SWAV common stock from the selling shareholders of SWAV for an aggregate purchase price of $370,000. The 11,984,770 shares of SWAV common stock represented approximately 79.9% of the 15,000,000 outstanding shares of SWAV common stock on April 26, 2010. Upon the consummation of the acquisition, the then executive officers and directors of SWAV resigned and Mr. Joerg Ott, the Chief Executive Officer of GROUP and a GROUP Major Shareholder, was appointed the Chief Executive Officer of SWAV and sole member of SWAV’s Board of Directors.

Transactions following the acquisition

On November 1, 2010, the Company repurchased an aggregate of 3,043,985 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for the 3,043,985 shares of the Company’s common stock, the Company issued to Lotus a Secured Demand Note, dated November 1, 2010 (the “First Demand Note”), for the principal amount of $300,000 bearing interest at the rate of 5% per annum. The First Demand Note was repaid in September 2011.

Effective December 30, 2010, pursuant to securities purchase agreements between the Company and six GROUP Major Shareholders, the Company purchased an aggregate of 7,115,500 shares of GROUP common stock from the six GROUP Major Shareholders in consideration for an aggregate for 3,043,985 shares of the Company’s common stock (the “December Transaction”). As a result the Company owned approximately 28.2% of the outstanding common stock of GROUP.

Reverse Merger

After the December Transaction was completed, the additional GROUP Major Shareholders accepted the share swap offer from the Company and effectuated a reverse merger of GROUP and the Company. To effectuate the reverse merger, on January 5, 2011, the Company repurchased from Lotus an aggregate of 2,361,426 of the 11,984,770 shares of the Company’s common stock originally purchased by Lotus on April 26, 2010. In consideration for these 2,361,426 shares, the Company issued to Lotus a Secured Demand Note, dated January 5, 2011 (the “Second Demand Note”), for the principal amount of $200,000 bearing interest at the rate of 5% per annum. The Second Demand Note was repaid in November 2011.

Effective January 6, 2011, pursuant to securities purchase agreements between the Company and the remaining GROUP Major Shareholders, the Company purchased an aggregate of 5,525,735 shares of GROUP common stock from the remaining GROUP Major Shareholders in consideration for an aggregate of 2,361,426 shares of the Company’s common stock (the “January Transaction”). The 5,525,735 GROUP shares represented approximately 21.9% of the outstanding shares of common stock of GROUP. As a result of the December Transaction and January Transaction, the Company purchased an aggregate of 12,641,235 shares of GROUP from the GROUP Major Shareholders in consideration for an aggregate of 5,405,411 shares of the Company’s common stock, resulting in the Company owning approximately 50.1% of the outstanding common stock of GROUP and effectuating a reverse merger of the Company and GROUP whereby GROUP became the accounting acquirer.

Additional Acquisition

On February 27, 2012, the Company acquired an additional 883,765 shares of common stock of GROUP from GAVF LLC for an average purchase price of $.070 per share, or approximately $619,000, after an outstanding loan of GROUP was converted into an aggregate of 1,750,000 shares of GROUP common stock, thereby increasing GROUP’s outstanding common stock to 26,982,000 shares. By acquiring the new shares, the Company increased its ownership of GROUP common stock to an aggregate of 13,525,000 shares, representing approximately 50.1% of the outstanding common stock of GROUP.

Acquisition/Dissolution of Subsidiary Companies

Pavone AG

Effective April 1, 2011, the Company acquired 100% of the outstanding common shares of Pavone AG, a German corporation, for $350,000 in cash and 1,000,000 shares of its common stock. The fair value of the common stock was determined to be $4.90 per share, representing the market value at the end of trading on the date of the acquisition. The total value of the investment, including the assumption of $ 583,991 in debt was $5,843,991. Pavone’s extensive workflow software for Lotus Notes and Domino along with their large customer base is well suited to GBS Enterprises portfolio strategy. The acquisition of Pavone complements GBS's majority ownership in GROUP and the Company believes that it further strengthens their leading industry position on the IBM Lotus Platforms and expands their cloud computing technology offerings beyond the IBM Lotus market. Pavone currently has offices in Germany and the UK. They have over 2,500 customers and over 150,000 users worldwide.

GroupWare, Inc.

Effective June 1, 2011, the Company acquired 100% of the outstanding common shares of GroupWare, Inc., a Florida corporation (“GroupWare”). As consideration the Company paid $250,000 and issued 250,000 shares of its common stock. The fair value of the common stock was determined to be $4.34 per share, representing the market value at the end of trading on the date of the acquisition. The total value of the investment, including the assumption of $ 694,617 in debt was $ 2,029,617. Upon the consummation of the acquisition, the management and board of GroupWare resigned and Joerg Ott, the Company’s Chief Executive Officer and sole director, was appointed as the Chief Executive Officer and sole director of GroupWare. GroupWare is based in Lubeck, Germany with offices in St. Petersburg, Florida. GroupWare's ePDF server delivers centralized, network-wide PDF solutions for messaging, workflow, document, content and data management. The Company believes that the acquisition strengthens the GBS Modernizing/Migrating offering, which helps bring IBM Lotus Notes client applications to the web, by substituting traditional printing methods provided by the Notes client with simple-to-use print-to-PDF capabilities in the browser.

IDC Global, Inc.

On July 25, 2011, the Company acquired 100% of the issued and outstanding shares of common stock of IDC Global, Inc., a Delaware corporation. Pursuant to the acquisition agreement, dated July 15, 2011, the Company agreed to issue the shareholders an aggregate of 800,000 shares of common stock and made a cash payment of $750,000. The agreement required an additional payment to the management shareholders of 80,000 shares of common stock and signing bonuses to personnel of $35,000. The Company also agreed to reimburse IDC up to $25,000 for incurred accounting and legal fees related to the transaction. The fair value of the common stock was determined to be $3.70 per share, representing the market value at the end of trading on the date of the agreement. The total value of the investment, including $883,005 of debt assumption, was $4,066,000. IDC was a privately held company that provides nationwide network and data center services. IDC delivers customized, high availability technology solutions for WAN, Wireless Services, Co-location & Hosting, Managed Services, and Network Security. IDC Global includes two Data Center facilities located in the downtown Chicago area and Colocation facilities in three other Data Centers in New York, London, England and Frankfurt, Germany. IDC provides internet infrastructure Services (IaaS) to the business community helping customers make the transition from large, static and expensive on-premise computing to dynamic, flexible and cost-effective off-premise computing. IDC is helping customers make the transition from large, static and expensive on-premise computing to dynamic, flexible and cost-effective off-premise computing.

Due to the Company’s perceived increase in the demand for Modernization, Mobility and Optimization offerings, the Company made a strategic decision in 2012 to focus on its core offerings in the IBM Notes and Domino market and to divest its non-core businesses, including IDC. 

On February 1, 2013, GBS entered into a Stock Purchase Agreement, dated February 1, 2013 (the “Agreement”), with IDC Global, Inc., a Delaware corporation and a wholly-owned subsidiary of GBS (“IDC”), and Global Telecom & Technology Americas, Inc., a Virginia corporation (“GTT). Pursuant to the Stock Purchase Agreement, we sold 100% of the issued and outstanding capital stock of IDC to GTT for an aggregate purchase price of $4,600,000 (the “Purchase Price”), subject to certain holdback provisions amounting to $1.093 million as described more fully in the Stock Purchase Agreement. The Purchase Price is also subject to adjustment on a dollar-for-dollar basis for adjustments the Net Working Capital (defined as Current Assets minus Current Liabilities) of IDC by GTT within 90 days of closing. 

SD Holdings, Ltd.

On September 27, 2011, the Company entered into an acquisition agreement with SD Holdings, Ltd. (“SYN”), a Mauritius corporation, and the shareholders of SYN owning 100% of issued and outstanding shares of SYN. SYN owns 100% of all issued and outstanding shares of Synaptris, Inc., a California corporation (“Synaptris”), and 100% of all issued and outstanding shares of Synaptris Decisions Private Limited, a company formed in India (“Synaptris India”). Pursuant to the acquisition agreement, the Company purchased one hundred percent (100%) of the issued and outstanding shares of SYN (“SYN Shares”) effective November 1, 2011 in consideration for $525,529 and agreed to issue 700,000 shares of common stock, subject to adjustment. Actual shares issued were 612,874. The fair value of the common stock was determined to be $2.05 per share, representing the market value at the end of trading on the date of the agreement.

On April 1, 2012, the Company sold SYN, Synaptris and Synaptris India for $1,877,232 to Lotus Holding, Ltd. in an effort to restructure the Company’s multilevel subsidiary - structure derived from the historical mergers and acquisitions, and to reduce overhead and administrative costs.

GBS India Private Limited

Pursuant to an existing transfer agreement, effective July, 1, 2012, the Company entered into a purchase agreement with SYN for $1,877,232, which transferred all assets, including intellectual property rights, and liabilities of the IntelliPRINT and FewClix product lines, customer contracts and certain employees for operations in a new subsidiary, GBS India Private Limited, an incorporated entity formed under the Indian Companies Act 1956 (“GBS India”). A royalty fee in the amount of approximately $350,000 has been agreed upon for the benefit the Company. Additionally a profit based fee of up to $700,000 may be earned based on license and revenue recognized from the sold IntelliVIEW and IntelliVIEW NXT products.

On August 1, 2012, the Company acquired 100% of the outstanding shares of capital stock of GBS India. We anticipate GBS India’s presence in India to accelerate our plan to expand our product development team particularly for our strategic offerings in India.

Pavone AG/Groupware AG

On July 6, 2012 and August 9, 2012 wholly-owned subsidiaries Pavone AG and Groupware AG, respectively, were merged into Pavone GmbH. The mergers were consummated solely for administrative purposes. Pavone GmbH is a wholly-owned subsidiary of the Company.

Pavone, Ltd.

The Company serves the UK market with GROUP’s subsidiary GBS, Ltd. Therefore, subsidiary Pavone, Ltd, as being a shell company, was dissolved on July 8, 2012.

EbVokus, GmbH.

On October 1, 2012, GROUP Business Software AG sold all of the software and operational assets (constituting substantially all of the assets) of its wholly-owned subsidiary, ebVokus GmbH, along with the associated maintenance and project agreements to a non-affiliated third party for a purchase price of approximately $459,000, approximately $258,000 (200,000 Euros: 1 EUR = $1.29 USD on October 1, 2012) was paid at closing and the remaining $201,000 was paid on February 15, 2013 (150,000 Euro: 1EUR = $1.35 USD on February 15, 2013).

B.E.R.S. AD

On November 23, 2012 GROUP Business Software AG sold its entire participation (50%) in B.E.R.S AD for a total of 25,000 BGN.

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ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

ACCOUNTING POLICIES

Note 3       ACCOUNTING POLICIES

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, the more significant of which are as follows:

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segment Reporting

The Financial Accounting Standards Board (“FASB”) authoritative guidance regarding segment reporting establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company has determined that it operates in only one segment – the development and maintenance of computer software programs and support products.

Comprehensive Income (Loss)

The Company adopted the FASB Codification topic (“ASC”) 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Company’s other comprehensive income represents foreign currency translation adjustments and small net actuarial losses on pension plans.

Net Income per Common Share

ASC 260, “Earnings per share”, requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. Accordingly, although the diluted weighted average number of common stock outstanding is disclosed on the statements of operation, the calculated net loss per share is the same for both the basic and diluted as both are based on the basic weighted average of common stock outstanding. There were no adjustments required to net income for the period presented in the computation of diluted earnings per share.

Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts and other receivable, financial assets, notes payable, liabilities to banks, accounts payable, accrued liabilities and other liabilities, due to related parties and retirement benefit obligations. Financial assets and liabilities are measured upon first recognition and reviewed at the financial statement date. Changes in fair value are recognized through profit and loss. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

Currency Risk

We use the US dollar as our reporting currency. The functional currencies of our significant foreign subsidiaries are the local currency, which includes the Euro, the British Pound, the Indian Rupee, and the Bulgarian Lev. Accordingly, some assets and liabilities are incurred in those currencies and we are subject to foreign currency risks.

Fair Value Measurements

The Company follows ASC 820, “Fair Value Measurements and Disclosures”, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Inventories

Pursuant to ASC 330 (Inventories), inventories held for sale are recognized under inventories. Inventories were measured at the lower of cost or market. Cost is determined on a first-in-first out basis, without any overhead component.

Goodwill and other Intangible Assets

Intangible assets predominately comprise goodwill, acquired software and capitalized software development services. Intangible assets acquired in exchange for payment are reflected at acquisition costs. If the development costs can be capitalized per ASC 985-20-25, these are reflected as ascribable personnel and overhead costs.

Company created software can be intended for sale to third parties or used by the Company itself. If the conditions for capitalization are not met, the expenses are recorded with their effect on profit in the year in which they were incurred.

The Company amortizes intangible assets with a limited useful life to the estimated residual book value in accordance with ASC regulations. In addition, in special circumstances according to ASC 350-30, a recoverability test is performed and, if applicable, unscheduled amortization is considered.

The useful life of acquired software is between three and five years and three years for Company created software.

Intangible assets obtained as part of an acquisition which do not meet the criteria for a separate entry are identified as goodwill. Goodwill is reviewed once a year during an impairment test, whereby the appraised fair value of the invested capital of the reporting unit, is compared with the carrying (book) value of its invested capital amount (including goodwill.) Use value is generally applied in order to determine the recoverability of goodwill and intangible assets with an indefinite useful life. The projected financial plan prepared by the management serves as the basis for this determination of use value and the planning assumptions are each adjusted for the current state of knowledge. Reasonable assumptions regarding macroeconomic trends and historical developments are taken into account in making these adjustments. Future estimated cash flows are determined based on the expected growth rates of the markets in question.

If the carrying amount of the reporting unit exceeds the appraised fair value, the impairment based on use value measures the amount of loss, if any, and an unscheduled amortization expense is recorded. If the appraised value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired.

Property, Plant and Equipment

Property, plant and equipment are valued at acquisition or manufacturing costs reduced by scheduled and, if necessary, unscheduled depreciation. Fixed assets are depreciated on a straight-line basis, prorated over their expected useful life. Scheduled depreciation for property, plant and equipment is based on useful lives of 3 to 10 years. Leasehold Improvements are depreciated up to 40 years.

If fixed assets are sold, retired or scrapped, the profit or loss arising from the difference between the net sales proceeds and the residual book value are included under other operating earnings and expenses.

Impairment or Disposal of Long-Lived Assets

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC topic, 360.10. This guidance requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its’ expected cash flows or appraised value In this instance, the asset is considered to be impaired and is written down to fair value.

Revenue Recognition

Sources of Revenues:

License revenues

Our license revenues consist of revenues earned from the licensing of our software products. These products are generally licensed on a perpetual basis. Pricing models have generally been based either upon the physical infrastructure, such as the number of physical desktop computers or servers, on which our software runs or on a per user basis. License revenues are recognized when the elements of revenue recognition for the licensed software are complete, generally upon electronic shipment of the software and the software key to provide full access to all functionalities for our customers. In general, our invoices reflect license, service and maintenance components. In the case of multi element contracts, the revenues allocated to the software license in most cases represent the residual amount of the contract after the fair value of the other elements has been determined. Certain products of our software offering are licensed on a subscription basis.

Software maintenance revenues

Software maintenance revenues are recognized ratably on a pro-rata basis over the range of the contract period. Our contract periods typically range from one to five years. Vendor-specific objective evidence (“VSOE”) of fair value for software maintenance services is established by the rates charged in stand-alone sales of software maintenance contracts or the stated renewal rate for software maintenance. Customers who are party to software maintenance agreements with us are entitled to receive support, product updates and upgrades on a when-and-if-available basis.

Professional services revenues

Professional services include pre-project consulting, software design, customization, project management, implementation and training. Professional services are not considered essential to the functionality of our products, as these services do not alter the product capabilities and may be performed by our customers or by other vendors. Professional services engagements performed for a fixed fee, for which we are able to make reasonably dependable estimates of progress toward completion, are recognized on a proportional performance basis based on hours incurred and estimated hours of completion. Professional services engagements that are on a time and materials basis are recognized based on hours incurred. Revenues on all other professional services engagements are recognized upon completion. Our professional services may be sold with software products or on a stand-alone basis. Vendor Specific Objective Evidence (VSOE) of fair value for professional services is based upon the standard rates we charge for such services when sold separately.

Foreign Currency Translation

The functional currency of the Company is US dollars. For financial reporting purposes, the financial statements of the subsidiary companies whose functional currency is other than US dollars were translated into US dollars using the current rate method. Assets and liabilities were translated at the exchange rates at the balance sheet dates, revenue and expenses were translated at the average exchange rates and stockholders’ equity was translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity.

Other Provisions

According to FASB ASC 450 “Contingencies”, provisions are made whenever there is a current obligation to third parties resulting from a past event which is likely in the future to lead to an outflow of resources and of which the amount can be reliably estimated. Provisions not already resulting in an outflow of resources in the following year are recognized at their discounted settlement amount on the financial statement date. The discount taken is based on market interest rates. The settlement amount also includes the expected cost increases. Provisions are not set off against contribution claims. If the amended estimate leads to a reduction of the obligatory amount, the provision is proportionally reversed and the earnings are recognized in other operating earnings.

Deferred Taxes

Income taxes are provided in accordance with FASB Codification topic 740, “Accounting for Income Taxes”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss-carry forwards.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that, that some portion or all of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.

Recent Accounting Pronouncements

In July 2012, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. With the objective of reducing the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-loved asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more-likely-than-not threshold is defined as having the likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed beginning April 1, 2013. Adoption of this new standard is not expected to have significant impact to the Company’s financial statement.

Off - Balance Sheet Arrangements

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

Principles of Consolidation and Reverse Acquisition

As previously disclosed, the Company has exchanged a total of 5,405,411 shares of common stock in exchange for 50.1% of the outstanding common shares of GROUP. Although the Company was the legal acquirer, the transaction was accounted for as a recapitalization of GROUP in the form of a reverse merger, whereby GROUP becomes the accounting acquirer and is deemed to have retroactively adopted the capital structure of the Corporation. Accordingly, the accompanying consolidated financial statements reflect the historical consolidated financial statements of GROUP for periods presented prior to January 6, 2011. All costs associated with the reverse merger transaction were expensed as incurred. Those expenses totaled approximately $300,000 and were included in professional fees in administrative expenses.

The Company has based its financial reporting for the consolidation with GROUP in accordance with the FASB ASC 805-40 as it relates to reverse acquisitions. Goodwill has been measured as the excess of the fair value of the consideration effectively transferred by the Company, the acquiree, for financial reporting purposes, over the net amount of the Company’s recognized identifiable assets and liabilities.

We have recorded the acquired assets and liabilities of Group Business Software Enterprises, Inc. on the acquisition date of January 6, 2011, at their fair value and the operations of Group Business Software Enterprises, Inc. have been included in the consolidated financial statements since the acquisition date.

The assets and liabilities of GROUP, the acquirer for financial reporting purposes, are measured and recognized in the consolidated financial statements at their precombination carrying amounts in accordance with ASC 805-40-45-2(a). Therefore, the non-controlling interest reflects the non-controlling shareholders’ proportionate interest in the pre-combination carrying amounts of GROUP’s net assets even though the non-controlling interests in other acquisitions are measured at their fair values at the acquisition date.

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CASH AND CASH EQUIVALENTS

3 Months Ended

Mar. 31, 2013

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENTS

Note 6       CASH AND CASH EQUIVALENTS

As of the financial statement date, the Company’s cash and cash equivalents totaled 738 KUSD (December 31, 2012 restated year end: 1,155 KUSD). Included in that amount are cash equivalents of 3 KUSD (December 31, 2012 restated year end: 3 KUSD).

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Common Stock - Additional Information (Detail)	1 Months Ended	0 Months Ended	1 Months Ended						12 Months Ended				1 Months Ended	12 Months Ended			1 Months Ended			0 Months Ended			1 Months Ended			1 Months Ended	0 Months Ended		1 Months Ended		3 Months Ended			1 Months Ended	0 Months Ended	1 Months Ended
	Apr. 29, 2013	Mar. 02, 2013 USD ($)	Oct. 26, 2012	Apr. 30, 2012 USD ($)	Mar. 27, 2012 USD ($)	Mar. 31, 2012 USD ($)	Apr. 01, 2011 USD ($)	Apr. 26, 2010	Dec. 31, 2012 USD ($)	Mar. 31, 2013 USD ($)	Jan. 05, 2011	Nov. 01, 2010	Mar. 31, 2012 Common Stock USD ($)	Dec. 31, 2011 Common Stock USD ($)	Dec. 31, 2012 Common Stock	Mar. 31, 2011 Common Stock	Mar. 27, 2013 Third Party Non-Affiliated Consultant	Oct. 26, 2012 Loan Agreement	Apr. 16, 2012 Chief Executive Officer and Board of Directors USD ($)	Jul. 05, 2012 Shihadah USD ($)	Jul. 05, 2012 K Group Ltd USD ($)	Jul. 05, 2012 Vitamin B Venture USD ($)	Mar. 20, 2013 Moore USD ($)	Feb. 22, 2013 Moore USD ($)	Aug. 13, 2012 Moore USD ($)	Mar. 20, 2013 Moore Amendment To Secured Promissory Note Agreement	Feb. 12, 2013 Accredited Investor	Jul. 05, 2012 Promissory Notes USD ($)	Apr. 28, 2012 RealRisk Ventures, LLC USD ($)	Apr. 30, 2012 Lotus Holdings Ltd USD ($)	Mar. 31, 2013 Lotus Holdings Ltd EUR (€)	May 15, 2012 Stockholder of GroupWare, AG	May 10, 2012 Chief Financial Officer USD ($)	Mar. 27, 2013 Stephen D. Baksa USD ($)	Feb. 12, 2013 Stephen D. Baksa USD ($)	Feb. 22, 2013 Stephen D. Baksa USD ($)	Oct. 26, 2012 Stephen D. Baksa USD ($)	Mar. 27, 2013 Stephen D. Baksa Amendment To Secured Promissory Note Agreement	Mar. 31, 2011 Private Placement USD ($)	Jan. 06, 2011 Reverse Merger
Components Of Common Stock [Line Items]
Common Stock, shares authorized									75,000,000	75,000,000
Preferred stock, shares authorized									25,000,000	25,000,000
Common stock par value									$ 0.001	$ 0.001
Preferred stock par value									$ 0.001	$ 0.001
Issued common stock									29,461,664	30,812,624						1,742,874								450,960	450,960
Outstanding common stock									29,461,664	30,812,624																														16,500,000
Gross proceed from issuance of common stock and warrant													$ 7,500	$ 3,024,970																									$ 7,555,000
Shares issued for new issues, shares								11,984,770																															6,044,000
Warrant issued			100,000			2,020,000												500,000
Shares issued, price per share																				$ 1.00	$ 1.00	$ 1.00													$ 0.20				$ 1.25
Common stock warrant exercise period				3 years	3 years	3 years	3 years		3 years											3 years	3 years	3 years							3 years	3 years									3 years
Net proceed from issuance of common stock and warrant																																							6,878,950
Shares of common stock issued upon exercise of warrant						900,000	100,000
Common stock shares exercised during period																																			500,000
Gross proceeds from exercise of warrants						450,000
Common stock average trading price																															€ 1.00
Units sold																			120,000														30,000
Common stock warrant, redemption price per share																																	$ 1.50
Purchase price per Unit																			$ 1.50
Total units, purchase price																			180,000														45,000
Amount of notes payable being converted		700,000		172,500																								552,500	632,500	460,000
Shares issued in conversion of notes payable				150,000																			450,960						550,000	400,000				200,000
Conversion rate of conventable promissory note into shares of common stock				$ 1.15																$ 0.50	$ 0.50	$ 0.50	$ 0.30	$ 0.30	$ 0.30				$ 1.15	$ 1.15				$ 0.30		$ 0.30
Issuance of unregistered shares of common stock																																150,000
Issued					250,000										16,875
Number of accredited investors						5
Exercise price of warrants	0.25		0.35	1.75	1.10		1.50		0.21					1.50				0.20	1.50								0.20		1.75	1.75			1.50						1.50
Sale of stock, number of shares issued in transaction													5,000	2,020,000
Fair value of issuance					270,208		34,000		2,624
Purchase price per share						$ 0.50							$ 0.50
Promissory note aggregate principal amount																				$ 50,000	$ 250,000	$ 252,500			$ 1,000,000												$ 1,000,000
Debt instrument, interest rate, stated percentage										3.25%	5.00%	5.00%								8.00%	8.50%	8.50%			20.00%			20.00%									20.00%
Warrant issued to purchase common stock	100,000																			50,000	250,000	250,000							550,000	400,000
Stock issued during period, shares, conversion of units																																				200,000	200,000
Issuance of restricted shares of common stock																	200,000									450,950	250,000											200,000

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CHANGE IN ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2013

Change In Accounting Policies [Abstract]

CHANGE IN ACCOUNTING POLICIES

Note 4       CHANGE IN ACCOUNTING POLICIES

Fiscal reporting

Effective September 19, 2012, the Company changed its fiscal year end from March 31 to December 31. Prior to this change, the company’s subsidiaries, with the exception of SD Holdings, had fiscal year ends of December 31 and in reporting its financial statements, the Company, through the use of Regulation S-X Rule 3A-02 (“the 93 day rule”), consolidated those subsidiaries without any adjustments for timing differences in the period ends. This application was in error. With the change in year end, the Company retroactively adjusted previously released financial statements to reflect this change beginning December 31, 2010. Accordingly, the financial statements for the year ended December 31, 2012 and 2011, include the accounts of all consolidated companies for the same twelve month period beginning January 1, 2012 and 2011 respectively. The Balance Sheets as at December 31, 2012 and December 31, 2011 have also been adjusted to include the accounts of all consolidated companies as of those dates.

In accordance with ASC 250, effects of this restatement to the respective statements are shown below:

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Assets
Current Assets
Cash and cash equivalents		738,369		738,369		0
Accounts receivable		3,205,807		3,205,807		0
Prepaid expenses		214,435		214,435		0
Other receivables		1,019,080		1,019,080		0
Total current assets		5,177,691		5,177,691		0
Equity investments in related parties						0
Property, plant and equipment		317,771		317,771		0
other non-current receivables		1,154		1,154		0
Deferred tax assets		1,104,222		1,104,222		0
Goodwill		31,260,500		31,260,500		0
Software		10,947,781		10,947,781		0
Other assets		160,340		160,340		0
Total non-current assets		43,791,768		43,791,768		0
Total assets		48,969,459		48,969,459		0
Liabilities and shareholders' equity
Current liabilities
Notes payable		260,421		260,421		0
Liabilities to banks		9,293		9,293		0
Accounts payable and accrued liabilities		3,662,133		3,662,133		0
Other liabilities		800,740		800,740		0
Deferred income		8,852,860		8,852,860		0
Due to related parties		276,542		276,542		0
Total current liabilities		13,861,989		13,861,989		0
Liabilities to banks		2,563,260		2,563,260		0
Deferred tax liabilities		0		0		0
Retirement benefit obligation		160,874		160,874		0
Other liabilities		0		0		0
Total non-current liabilities		2,724,134		2,724,134		0
Total liabilities		16,586,123		16,586,123		0
Shareholders' equity
Capital Stock
Authorized:
75,000,000 common shares and 25,000,000 preferred shares each with a par value of $.001
Issued and outstanding
30,812,624 common shares
		30,813		30,813		0
Additional paid in capital		50,055,132		50,055,132		0
Subscription Receivable		50,000		50,000
Accumulated deficit		(20,308,707)		(20,308,707)		0
Other comprehensive income		112,249		112,249		0
Total shareholders' equity		29,939,487		29,939,487		0
Noncontrolling interest in subsidiaries		2,443,849		2,443,849		0
Total equity and liabilities		48,969,459		48,969,459		0

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Net sales		5,224,379		5,224,379		0
Cost of goods sold		3,101,698		3,101,698		0
Gross profit		2,122,681		2,122,681		0
Operating expenses
Selling expenses		2,371,530		2,371,530		0
Administrative expenses		1,500,042		1,500,042		0
General expenses		229,147		229,147		0
		4,100,719		4,100,719		0
Operating income		(1,978,038)		(1,978,038)		0
Other Income (expense)
Other Income (expense)		173,479		173,479		0
Interest income		341		341		0
Interest expense		(177,036)		(177,036)		0
		(3,216)		(3,216)		0
Income (loss) before income taxes		(1,981,254)		(1,981,254)		0
Income tax (income) expense		(72,960)		(72,960)		0
Net income (loss)		(1,908,294)		(1,908,294)		0
Net income (loss) attributable to non controlling interest		(574,169)		(574,169)		0
Net income (loss) attributable to shareholders		(1,334,125)		(1,334,125)		0
Other comprehensive income (loss)		(659,864)		(659,864)		0
Net income (loss) and comprehensive income (loss) attributed to shareholders		(1,664,717)		(1,664,717)		0
Basic and diluted income (loss) per share		(0.0447)		(0.509)		0.464
Weighted average number of shares outstanding		29,816,782		24,847,525		4,969,257

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Cash flow from operating activities
Net loss / net income		(1,908,294)		(1,908,294)		0
Adjustments
Deferred income taxes		27,881		27,881		0
Depreciation and amortization		1,561,952		1,561,952		0
Consulting Expense		70,000		70,000		0
Interest Expense		195,288		195,288		0
Minority interest losses		(900,667)		(900,667)		0
Changes in operating assets and liabilities
Accounts receivable and other assets		2,692,952		2,692,952		0
Retirement benefit obligation		(5,002)		(5,002)		0
Inventories		0		0
Accounts payable and other liabilities		(635,135)		(635,135)		0
Net cash provided by operating activities		1,098,975		1,098,975		0
Cash flow from investing activities
Purchase (sale) of intangible assets		(2,756,007)		(2,756,007)		0
Purchase of property, plant and equipment		(31,639)		(31,639)		0
Sale (Purchase) of subsidiaries		3,577,195		3,577,195		0
Write-down goodwill and intangibles		2,994,381		2,994,381		0
Purchase of financial assets		(427,267)		(427,267)		0
Net cash used in investing activities		3,356,663		3,356,663		0
Cash flow from financing activities
Net borrowings - banks		(1,150,322)		(1,150,322)		0
other borrowings		(2,053,151)		(2,053,151)		0
Forgiveness of Debt		10,659		10,659
Capital paid-in		150,000		150,000
Loans from related parties		(1,839,327)		(1,839,327)
Net cash used in financing activities		(4,882,141)		(4,882,141)		0
Effect of exchange rate changes on cash		10,270		10,270		0
Net increase in cash		(416,233)		(416,233)		0
Cash and cash equivalents - Beginning of the period		1,154,602		1,154,602		0
Cash and cash equivalents - End of period		738,369		738,369		0

Explanation of Differences:

Weighted Average Shares/ Earnings per Share

The 3/31/13 financials were restated due to an error in the calculation of weighted shares resulting in erroneous earnings per share.

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OTHER SHORT TERM LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Other Current Term Liabilities

Other short-term liabilities of 801 KUSD (December 31, 2012 restated year end: 860 KUSD) includes the following obligations and payments currently due:

Other Short-Term Liabilities	3/31/2013
	KUSD
Purchase Assets Permessa		538
Tax Liabilities/Credits		(57)
Purchase Archiving Software		320
Other Liabilities		0
		801

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REVENUE ALLOCATION

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

REVENUE ALLOCATION

Note 23 REVENUE ALLOCATION

Gross revenue may be broken down by the following products for the three months ended March 31, 2013 are as follows:

	3/31/2013
Sales Revenues	KUSD
Licenses		871
Maintenance		2,688
Partner Contribution		0
Service		851
Third-Party Products		685
LND Third-Party Products		129
Others		0
		5,224

Revenues by geographical area for the three months ended March 31, 2013 are as follows:

Sales Revenues	3/31/2013
by geographic area	KUSD
US		1,027
Germany		3,973
United Kingdom		224
Others		0
		5,224

Long-lived assets by geographical area, which primarily include property plant and equipment, are as follows:

Long-lived assets	3/31/2013
by geographic area	KUSD
US		126
Germany		188
United Kingdom		4
Others		0
		318

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ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Critical Accounting Policies and Estimates

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segment Reporting

Segment Reporting

The Financial Accounting Standards Board (“FASB”) authoritative guidance regarding segment reporting establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company has determined that it operates in only one segment – the development and maintenance of computer software programs and support products.

Comprehensive Income (Loss)

Comprehensive Income (Loss)

The Company adopted the FASB Codification topic (“ASC”) 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Company’s other comprehensive income represents foreign currency translation adjustments and small net actuarial losses on pension plans.

Net Income per Common Share

Net Income per Common Share

ASC 260, “Earnings per share”, requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. Accordingly, although the diluted weighted average number of common stock outstanding is disclosed on the statements of operation, the calculated net loss per share is the same for both the basic and diluted as both are based on the basic weighted average of common stock outstanding. There were no adjustments required to net income for the period presented in the computation of diluted earnings per share.

Financial Instruments

Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts and other receivable, financial assets, notes payable, liabilities to banks, accounts payable, accrued liabilities and other liabilities, due to related parties and retirement benefit obligations. Financial assets and liabilities are measured upon first recognition and reviewed at the financial statement date. Changes in fair value are recognized through profit and loss. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

Currency Risk

Currency Risk

We use the US dollar as our reporting currency. The functional currencies of our significant foreign subsidiaries are the local currency, which includes the Euro, the British Pound, the Indian Rupee, and the Bulgarian Lev. Accordingly, some assets and liabilities are incurred in those currencies and we are subject to foreign currency risks.

Fair Value Measurements

Fair Value Measurements

The Company follows ASC 820, “Fair Value Measurements and Disclosures”, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Cash and Cash Equivalents

Cash and cash equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Inventories

Inventories

Pursuant to ASC 330 (Inventories), inventories held for sale are recognized under inventories. Inventories were measured at the lower of cost or market. Cost is determined on a first-in-first out basis, without any overhead component.

Goodwill and other Intangible Assets

Goodwill and other Intangible Assets

Intangible assets predominately comprise goodwill, acquired software and capitalized software development services. Intangible assets acquired in exchange for payment are reflected at acquisition costs. If the development costs can be capitalized per ASC 985-20-25, these are reflected as ascribable personnel and overhead costs.

Company created software can be intended for sale to third parties or used by the Company itself. If the conditions for capitalization are not met, the expenses are recorded with their effect on profit in the year in which they were incurred.

The Company amortizes intangible assets with a limited useful life to the estimated residual book value in accordance with ASC regulations. In addition, in special circumstances according to ASC 350-30, a recoverability test is performed and, if applicable, unscheduled amortization is considered.

The useful life of acquired software is between three and five years and three years for Company created software.

Intangible assets obtained as part of an acquisition which do not meet the criteria for a separate entry are identified as goodwill. Goodwill is reviewed once a year during an impairment test, whereby the appraised fair value of the invested capital of the reporting unit, is compared with the carrying (book) value of its invested capital amount (including goodwill.) Use value is generally applied in order to determine the recoverability of goodwill and intangible assets with an indefinite useful life. The projected financial plan prepared by the management serves as the basis for this determination of use value and the planning assumptions are each adjusted for the current state of knowledge. Reasonable assumptions regarding macroeconomic trends and historical developments are taken into account in making these adjustments. Future estimated cash flows are determined based on the expected growth rates of the markets in question.

If the carrying amount of the reporting unit exceeds the appraised fair value, the impairment based on use value measures the amount of loss, if any, and an unscheduled amortization expense is recorded. If the appraised value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are valued at acquisition or manufacturing costs reduced by scheduled and, if necessary, unscheduled depreciation. Fixed assets are depreciated on a straight-line basis, prorated over their expected useful life. Scheduled depreciation for property, plant and equipment is based on useful lives of 3 to 10 years. Leasehold Improvements are depreciated up to 40 years.

If fixed assets are sold, retired or scrapped, the profit or loss arising from the difference between the net sales proceeds and the residual book value are included under other operating earnings and expenses.

Impairment or Disposal of Long-Lived Assets

Impairment or Disposal of Long-Lived Assets

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC topic, 360.10. This guidance requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its’ expected cash flows or appraised value In this instance, the asset is considered to be impaired and is written down to fair value.

Revenue Recognition

Revenue Recognition

Sources of Revenues:

License revenues

Our license revenues consist of revenues earned from the licensing of our software products. These products are generally licensed on a perpetual basis. Pricing models have generally been based either upon the physical infrastructure, such as the number of physical desktop computers or servers, on which our software runs or on a per user basis. License revenues are recognized when the elements of revenue recognition for the licensed software are complete, generally upon electronic shipment of the software and the software key to provide full access to all functionalities for our customers. In general, our invoices reflect license, service and maintenance components. In the case of multi element contracts, the revenues allocated to the software license in most cases represent the residual amount of the contract after the fair value of the other elements has been determined. Certain products of our software offering are licensed on a subscription basis.

Software maintenance revenues

Software maintenance revenues are recognized ratably on a pro-rata basis over the range of the contract period. Our contract periods typically range from one to five years. Vendor-specific objective evidence (“VSOE”) of fair value for software maintenance services is established by the rates charged in stand-alone sales of software maintenance contracts or the stated renewal rate for software maintenance. Customers who are party to software maintenance agreements with us are entitled to receive support, product updates and upgrades on a when-and-if-available basis.

Professional services revenues

Professional services include pre-project consulting, software design, customization, project management, implementation and training. Professional services are not considered essential to the functionality of our products, as these services do not alter the product capabilities and may be performed by our customers or by other vendors. Professional services engagements performed for a fixed fee, for which we are able to make reasonably dependable estimates of progress toward completion, are recognized on a proportional performance basis based on hours incurred and estimated hours of completion. Professional services engagements that are on a time and materials basis are recognized based on hours incurred. Revenues on all other professional services engagements are recognized upon completion. Our professional services may be sold with software products or on a stand-alone basis. Vendor Specific Objective Evidence (VSOE) of fair value for professional services is based upon the standard rates we charge for such services when sold separately.

Foreign currency translation

Foreign Currency Translation

The functional currency of the Company is US dollars. For financial reporting purposes, the financial statements of the subsidiary companies whose functional currency is other than US dollars were translated into US dollars using the current rate method. Assets and liabilities were translated at the exchange rates at the balance sheet dates, revenue and expenses were translated at the average exchange rates and stockholders’ equity was translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity.

Other Provisions

Other Provisions

According to FASB ASC 450 “Contingencies”, provisions are made whenever there is a current obligation to third parties resulting from a past event which is likely in the future to lead to an outflow of resources and of which the amount can be reliably estimated. Provisions not already resulting in an outflow of resources in the following year are recognized at their discounted settlement amount on the financial statement date. The discount taken is based on market interest rates. The settlement amount also includes the expected cost increases. Provisions are not set off against contribution claims. If the amended estimate leads to a reduction of the obligatory amount, the provision is proportionally reversed and the earnings are recognized in other operating earnings.

Deferred Taxes

Deferred Taxes

Income taxes are provided in accordance with FASB Codification topic 740, “Accounting for Income Taxes”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss-carry forwards.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that, that some portion or all of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In July 2012, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. With the objective of reducing the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-loved asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more-likely-than-not threshold is defined as having the likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed beginning April 1, 2013. Adoption of this new standard is not expected to have significant impact to the Company’s financial statement.

Off - Balance Sheet Arrangements

Off - Balance Sheet Arrangements

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

Principles of Consolidation and Reverse Merger

Principles of Consolidation and Reverse Acquisition

As previously disclosed, the Company has exchanged a total of 5,405,411 shares of common stock in exchange for 50.1% of the outstanding common shares of GROUP. Although the Company was the legal acquirer, the transaction was accounted for as a recapitalization of GROUP in the form of a reverse merger, whereby GROUP becomes the accounting acquirer and is deemed to have retroactively adopted the capital structure of the Corporation. Accordingly, the accompanying consolidated financial statements reflect the historical consolidated financial statements of GROUP for periods presented prior to January 6, 2011. All costs associated with the reverse merger transaction were expensed as incurred. Those expenses totaled approximately $300,000 and were included in professional fees in administrative expenses.

The Company has based its financial reporting for the consolidation with GROUP in accordance with the FASB ASC 805-40 as it relates to reverse acquisitions. Goodwill has been measured as the excess of the fair value of the consideration effectively transferred by the Company, the acquiree, for financial reporting purposes, over the net amount of the Company’s recognized identifiable assets and liabilities.

We have recorded the acquired assets and liabilities of Group Business Software Enterprises, Inc. on the acquisition date of January 6, 2011, at their fair value and the operations of Group Business Software Enterprises, Inc. have been included in the consolidated financial statements since the acquisition date.

The assets and liabilities of GROUP, the acquirer for financial reporting purposes, are measured and recognized in the consolidated financial statements at their precombination carrying amounts in accordance with ASC 805-40-45-2(a). Therefore, the non-controlling interest reflects the non-controlling shareholders’ proportionate interest in the pre-combination carrying amounts of GROUP’s net assets even though the non-controlling interests in other acquisitions are measured at their fair values at the acquisition date.

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Breakdown of Notes Payable in Other Liabilities (Detail) (USD $)			3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Notes payable Related Party
Short-term Debt [Line Items]
Date of Loan			Jul. 05, 2012
Principal	$ 250,000	$ 2,250,000	$ 50,000
Interest Accrued	10,421	63,572	2,084
Total	$ 260,421	$ 2,313,572	$ 52,084
Due Date			Jan. 05, 2013

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GOODWILL (Tables)

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Arising from Business Acquisitions

Goodwill derives from the following business acquisitions:

	Date of
	first							Written off
March 31, 2013	Consolidation	1/1/2013		Additions		Adjustments		as impaired		3/31/2013
GROUP Business Software AG	01/06/11		18,425.6		-		-		-		18,425.6
GROUP Business Software (UK) Ltd.	12/31/05		2,765.1		-		-		-		2,765.1
Permessa Corporation	09/22/11		2,387.4		-		-		-		2,387.4
Pavone GmbH	01/04/11		5,950.5		-		-		-		5,950.5
IDC Global Inc.	07/25/10		2,994.4		-		(2,994)		-		-
GBS India	8/1/2012		1,731.9		-		-		-		1,731.9
			34,254.9		-		(2,994.4)		-		31,260.5

	Date of
	first							Written off
December 31, 2012	Consolidation	1/1/2012		Additions		Adjustments		as impaired		12/31/2012
GROUP Business Software AG	1/6/2011		20,194.4		618.6		(2,387.4)		-		18,425.6
GROUP Business Software Corp	12/31/2005		2,177.5		-		-		2,177.5		-
GROUP Business Software (UK) Ltd.	12/31/2005		2,765.1		-		-		-		2,765.1
evVokus Software GmbH	10/1/2005		443.6		-		(443.60)		-		-
Permessa Corporation	20110-09-22		2,387.4		-		-		-		2,387.4
Pavone GmbH	1/4/2011		5,950.5		-		-		-		5,950.5
IDC Global Inc.	7/25/2010		2,994.4		-		-		-		2,994.4
SD Holdings	2011-09.27		2,213.1		-		(2,213.1)		-		-
GBS India	8/1/2012		-		1,731.9		-		-		1,731.9
			39,126.0		2,350.5		(5,044.1)		2,177.5		34,254.9

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Summary of Due to Related Parties (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Summary Of Due To Related Parties [Line Items]
Notes Payable, Related Parties, Current	$ 52,000	$ 1,391,800
Due to Other Related Parties, Classified, Current	0	48,100
Due to Related Parties	276,500	2,115,900
Green Mind Ventures
Summary Of Due To Related Parties [Line Items]
Accounts Payable, Related Parties	0	72,000
Vitamin B Venture Gmbh
Summary Of Due To Related Parties [Line Items]
Accounts Payable, Related Parties	0	493,600
Board Of Directors Fees and Expenses
Summary Of Due To Related Parties [Line Items]
Accounts Payable, Related Parties	$ 224,500	$ 110,400

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Other Receivables - Current - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables	$ 1,019,080	$ 676,976
Insolvency amount	439,000
Tax assets	37,000
IDC Global, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables	517,000
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables	$ 26,000

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Effects of Restatement of Cash Flow (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flow from operating activities
Net loss / net income	$ (1,908,294)	$ (2,296,939)
Adjustments
Deferred income taxes	27,881	(670,268)
Depreciation and amortization	1,561,952	1,654,957
Consulting Expense	70,000	0
Interest Expense	195,288	0
Minority interest losses	(900,667)	(719,778)
Changes in operating assets and liabilities
Accounts receivable and other assets	2,692,952	(2,622,458)
Retirement benefit obligation	(5,002)	(91,545)
Inventories	0	114,832
Accounts payable and other liabilities	(635,135)	2,586,263
Net cash provided by operating activities	1,098,975	(2,292,301)
Cash flow from investing activities
Purchase (sale) of intangible assets	(2,756,006)	(931,427)
Purchase of property, plant and equipment	(31,639)	(358,704)
Sale (Purchase) of subsidiaries	3,577,195	0
Write-down goodwill and intangibles	2,994,381	0
Increase in Financial assets	(427,267)	1,548,234
Net cash used in investing activities	3,356,663	258,103
Cash flow from financing activities
Net borrowings - banks	(1,150,322)	414,915
other borrowings	(2,053,151)	(1,381,821)
Forgiveness of Debt	10,659	0
Capital paid-in	150,000	576,942
Loans from related parties	(1,839,327)	379,968
Net cash used in financing activities	(4,882,141)	(9,996)
Effect of exchange rate changes on cash	10,270	(34,414)
Net increase in cash	(416,233)	(1,900,950)
Cash and cash equivalents - Beginning of the quarter	1,154,602	3,142,308
Cash and cash equivalents - End of Quarter	738,369	1,241,358
Scenario, Previously Reported
Cash flow from operating activities
Net loss / net income	(1,908,294)
Adjustments
Deferred income taxes	27,881
Depreciation and amortization	1,561,952
Consulting Expense	70,000
Interest Expense	195,288
Minority interest losses	(900,667)
Changes in operating assets and liabilities
Accounts receivable and other assets	2,692,952
Retirement benefit obligation	(5,002)
Inventories	0
Accounts payable and other liabilities	(635,135)
Net cash provided by operating activities	1,098,975
Cash flow from investing activities
Purchase (sale) of intangible assets	(2,756,007)
Purchase of property, plant and equipment	(31,639)
Sale (Purchase) of subsidiaries	3,577,195
Write-down goodwill and intangibles	2,994,381
Increase in Financial assets	(427,267)
Net cash used in investing activities	3,356,663
Cash flow from financing activities
Net borrowings - banks	(1,150,322)
other borrowings	(2,053,151)
Forgiveness of Debt	10,659
Capital paid-in	150,000
Loans from related parties	(1,839,327)
Net cash used in financing activities	(4,882,141)
Effect of exchange rate changes on cash	10,270
Net increase in cash	(416,233)
Cash and cash equivalents - Beginning of the quarter	1,154,602
Cash and cash equivalents - End of Quarter	738,369
Restatement Adjustment
Cash flow from operating activities
Net loss / net income	0
Adjustments
Deferred income taxes	0
Depreciation and amortization	0
Consulting Expense	0
Interest Expense	0
Minority interest losses	0
Changes in operating assets and liabilities
Accounts receivable and other assets	0
Retirement benefit obligation	0
Accounts payable and other liabilities	0
Net cash provided by operating activities	0
Cash flow from investing activities
Purchase (sale) of intangible assets	0
Purchase of property, plant and equipment	0
Sale (Purchase) of subsidiaries	0
Write-down goodwill and intangibles	0
Increase in Financial assets	0
Net cash used in investing activities	0
Cash flow from financing activities
Net borrowings - banks	0
other borrowings	0
Net cash used in financing activities	0
Effect of exchange rate changes on cash	0
Net increase in cash	0
Cash and cash equivalents - Beginning of the quarter	0
Cash and cash equivalents - End of Quarter	$ 0

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Company and Background - Additional Information (Detail)	0 Months Ended	1 Months Ended	0 Months Ended		1 Months Ended	0 Months Ended		1 Months Ended		3 Months Ended					12 Months Ended	1 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended	1 Months Ended			0 Months Ended	1 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended			12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended		1 Months Ended	0 Months Ended		1 Months Ended		0 Months Ended		1 Months Ended
	Feb. 15, 2013 EUR (€)	Nov. 23, 2012 BGN	Oct. 02, 2012 USD ($)	Oct. 02, 2012 EUR (€)	Apr. 30, 2012	Jan. 05, 2011 USD ($)	Mar. 12, 2010 USD ($)	Nov. 01, 2010 USD ($)	Apr. 26, 2010 USD ($)	Mar. 31, 2013	Dec. 31, 2012	Aug. 01, 2012	Mar. 31, 2012 USD ($)	Jul. 25, 2011 USD ($)	Dec. 31, 2012 IBM Lotus Domino	Apr. 26, 2010 Special Purpose Private Equity Funds	Mar. 31, 2013 Special Purpose Private Equity Funds Minimum	Oct. 02, 2012 2015 Subsequent Event USD ($)	Mar. 31, 2013 2015 Subsequent Event IBM Lotus Domino	Jun. 06, 2011 GROUP Business Software AG USD ($)	Feb. 27, 2012 GROUP Business Software AG USD ($)	Mar. 12, 2010 GROUP Business Software AG USD ($)	Dec. 31, 2010 GROUP Business Software AG USD ($)	May 31, 2012 GROUP Business Software AG	Jan. 06, 2011 GROUP Business Software AG	Mar. 12, 2010 Lotus Holdings Ltd USD ($)	Apr. 30, 2012 Lotus Holdings Ltd	Mar. 31, 2013 Lotus Holdings Ltd EUR (€)	Jun. 06, 2011 Group Common Stock USD ($)	Apr. 30, 2012 SD Holdings USD ($)	Nov. 01, 2011 SD Holdings USD ($)	Sep. 27, 2011 SD Holdings	Dec. 31, 2012 SD Holdings	Jul. 25, 2011 IDC Global Inc. USD ($)	Mar. 31, 2013 IDC Global Inc.	Dec. 31, 2012 IDC Global Inc.	Feb. 02, 2013 IDC Global Inc. USD ($)	Jul. 25, 2011 IDC Global Inc. Management shareholders	Jun. 01, 2011 GroupWare, Inc. USD ($)	Mar. 31, 2013 GroupWare, Inc.	Apr. 30, 2011 Pavone AG	Apr. 01, 2011 Pavone AG USD ($)	Jul. 01, 2012 GBS India Private Limited USD ($)	Feb. 02, 2013 Global Telecom & Technology Americas, Inc USD ($)	Apr. 26, 2010 SWAV Enterprises Ltd USD ($)
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of customers										5,000,000
Shares issued for purchase of assets																																													2,265,240
Shares issued for new issues, shares									11,984,770																																				11,984,770
Shares issued for new issues, values									$ 370,000																																				$ 370,000
Shares of common stock owned																																													14,250,010
Business acquisition, percentage of interests acquired												100.00%									50.10%			100.00%	50.10%									100.00%					100.00%	100.00%		100.00%		100.00%
Common stock outstanding										30,812,624	29,461,664										26,982,000																								15,000,000
Stock trading price																												€ 1.00
Percentage of SPPEF																	50.00%
Contribution to special purpose private equity funds							1,400,000															1,000,000				400,000
Acquisition of interest by Lotus on behalf of SPPEF																79.90%
Repurchase of share acquired by Lotus						2,361,426		3,043,985
Issuance date of secured notes						Jan. 05, 2011		Nov. 01, 2010
Principal amount secured noted for repurchase of common stock						200,000		300,000
Aggregate Share purchase																				12,641,235			7,115,500						5,525,735
Aggregate Consideration																				5,405,411			3,043,985						2,361,426
Equity method investment, ownership percentage																							28.20%
Outstanding shares acquired, percent																				21.90%
Business acquisition additional Common Stock purchased																					883,765																	80,000
Debt converted into shares					150,000																1,750,000						400,000
Aggregate number of common shares acquired in business acquisition																					13,525,000
Purchase price per share													$ 0.50								$ 0.070
Share purchase price																					619,000
Business acquisition, cash paid																															525,529			750,000					250,000			350,000		4,600,000
Business acquisition, shares of common stock issued																															612,874	612,874		880,000				800,000	250,000			1,000,000
Fair value common stock																															$ 2.05			$ 3.70					$ 4.34			$ 4.90
Business acquisition, debt assumed																																		883,005					694,617			583,991
Business acquisition, total acquisition price																																		4,066,000					2,029,617			5,843,991
Numbers of users worldwide																																									150,000
Acquisition agreement date																																Sep. 27, 2011	Sep. 27, 2011	Jul. 25, 2011	Jul. 25, 2010	Jul. 25, 2010
Bonus to personnel on acquisition agreement																																		35,000
Legal fees related to transaction of acquisition																																		25,000
Business acquisition, contingent consideration, shares issuable																															700,000
Sale of business for restructuring of subsidiary		25,000																												1,877,232													1,877,232
World wide installed based mailbox capacity															189,000,000
Percentage market shares															87.00%				80.00%
Royalty Expense																																											350,000
Additional profit based fees																																											700,000
Purchase price of software and operational assets			459,000
Paid for software and operational assets	150,000		258,000	200,000														201,000
Foreign currency exchange rate			1 EUR = $1.29 USD	1 EUR = $1.29 USD														1EUR = $1.35 USD
Debt instrument, interest rate, stated percentage						5.00%		5.00%		3.25%
Percentage of common stock outstanding																																													95.00%
Percentage of sold of entire participation		50.00%
Subject to certain holdback provisions amount														$ 25,000																							$ 1,093,000

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Interim Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Capital Stock, authorized common shares	75,000,000	75,000,000
Capital Stock, common shares par value	$ 0.001	$ 0.001
Capital Stock, authorized preferred shares	25,000,000	25,000,000
Capital Stock, preferred shares par value	$ 0.001	$ 0.001
Issued common stock	30,812,624	29,461,664
Outstanding common stock	30,812,624	29,461,664

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OTHER RECEIVABLES - CURRENT

3 Months Ended

Mar. 31, 2013

Other Receivables - Current [Abstract]

OTHER RECEIVABLES - CURRENT

Note 9       OTHER RECEIVABLES - CURRENT

Other Receivables as of the financial statement date were 1,019 KUSD (December 31, 2012 restated year end: 677 KUSD). The largest individual item under other receivables represents receivables from the sale of IDC Global (517 KUSD), a recoverable receivable from a previous insolvency (439 KUSD). Also included are tax assets (37 KUSD) and other prepaid costs (26 KUSD).

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Interim Consolidated Statements of Cash Flow (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flow from operating activties
Net loss / net income	$ (1,908,294)	$ (2,296,939)
Adjustments
Deferred income taxes	27,881	(670,268)
Depreciation and amortization	1,561,952	1,654,957
Consulting expense	70,000	0
Interest Expense	195,288	0
Losses from equity investment	0	(17,701)
Loss on Sale of Assets	0
Minority interest losses	(900,667)	(719,778)
Changes in operating assets and liabilities
Accounts receivable and other assets	2,692,952	(2,622,458)
Retirement benefit obligation	(5,002)	(91,545)
Inventories	0	(114,832)
Accounts payable and other liabilities	(635,135)	2,586,263
Net cash provided (used) by operating activities	1,098,975	(2,292,301)
Net cash provided (used) by discontinued	0	177,658
Cash flow from investing activties
Sale of intangible assets	(2,756,006)	(931,427)
Purchase of property, plant and equipment	(31,639)	(358,704)
Write-down goodwill and intangibles	2,994,381	0
Proceeds from Sale of Subsidiaries	3,577,195	0
Increase in Financial assets	(427,267)	1,548,234
Net cash provided (used) in investing activities	3,356,663	258,103
Cash flow from financing activties
Net borrowings - banks	(1,150,322)	414,915
Other borrowings	(2,053,151)	(1,381,821)
Forgiveness of Debt	10,659	0
Capital paid-in	150,000	576,942
Loans from related party	(1,839,327)	379,968
Net cash provided (used) in financing activities	(4,882,141)	(9,996)
Effect of exchange rate changes on cash	10,270	(34,414)
Net increase (decrease) in cash	(416,233)	(1,900,950)
Cash and cash equivalents - Beginning of the quarter	1,154,602	3,142,308
Cash and cash equivalents - End of Quarter	$ 738,369	$ 1,241,358

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Major components of Non-current Receivables (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Other Assets Non Current [Line Items]
Cooperative shares	$ 1	$ 1
Intercompany Loan Values during the quarter	0	0
Other long term receivables	0	427
Balance	$ 1	$ 428

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Interim Consolidated Balance Sheets (USD $)	Mar. 31, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents - Note 6	$ 738,369	$ 1,154,602
Accounts Receivable - Note 7	3,205,807	4,143,448
Prepaid expenses - Note 8	214,435	84,304
Other receivables current - Note 9	1,019,080	676,976
Assets held for sale	0	384,862
Total current assets	5,177,691	6,444,192
Non-Current Assets
Assets held for sale	0	1,846,645
Property, plant and equipment - Note 10	317,771	332,839
Other non-current receivables - Note 11	1,154	428,422
Deferred tax assets	1,104,222	1,132,103
Goodwill - Note 12	31,260,500	34,254,881
Software - Note 13	10,947,781	12,207,031
Other assets - Note 14	160,340	156,379
Total non-current assets	43,791,768	50,358,300
Total assets	48,969,459	56,802,492
Current liabilities
Notes payable - Note 15	260,421	2,313,572
Liabilities to banks - Note 16	9,293	6,774
Accounts payables and accrued liabilities - Note 17	3,662,133	6,241,733
Deferred income - Note 18	8,852,860	6,099,570
Other short term liabilities - Note 19	800,740	860,032
Due to related parties - Note 20	276,542	2,115,869
Liabilities held for sale	0	589,634
Total current liabilities	13,861,989	18,227,184
Non - Current liabilities
Liabilities to banks - Note 21	2,563,260	3,716,102
Retirement benefit obligation	160,874	165,876
Liabilities held for sale	0	159,898
Total non-current liabilities	2,724,134	4,041,876
Total liabilities	16,586,123	22,269,060
Capital stock - Note 22 Authorized: 75,000,000 common shares of $.001 par value each 25,000,000 preferred shares of $.001 par value each
Issued and outstanding: 30,812,624 shares of common stock (29,461,664 shares of common stock at December 31, 2012)	30,813	29,462
Additional paid in capital	50,055,132	49,691,195
Subscription Receivable	50,000	0
Accumulated deficit	(20,308,707)	(18,974,582)
Other comprehensive income	112,249	442,841
Stockholders equity	29,939,487	31,188,916
Noncontrolling interest in subsidiaries	2,443,849	3,344,516
Total stockholders' equity	32,383,336	34,533,432
Total stockholders' equity and liabilities	$ 48,969,459	$ 56,802,492

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Listed Subsidiary's Basis of Consolidation (Detail) (USD $)	3 Months Ended				3 Months Ended						3 Months Ended			3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Aug. 01, 2012	Mar. 31, 2013 GROUP Business Software (UK) Ltd.	Mar. 31, 2013 GROUP Business Software Corp	Mar. 31, 2013 Permessa Corporation	Mar. 31, 2013 Relavis Corporation	Mar. 31, 2013 GROUP Business Software AG	Jan. 06, 2011 GROUP Business Software AG	Mar. 31, 2013 Pavone GmbH	Mar. 31, 2013 GroupWare, Inc.	Jun. 01, 2011 GroupWare, Inc.	Mar. 31, 2013 GBS India	Apr. 01, 2011 Pavone AG	Jul. 25, 2011 IDC Global Inc.
Subsidiary or Equity Method Investee [Line Items]
Country Region					Manchester	Woodstock	Waltham	Woodstock	Eisenach		Boeblingen	Woodstock		Chennai
Stockholders' Equity	$ 29,939,487		$ 31,188,916		$ (1,330,000)	$ (12,962,000)	$ (5,000)	$ (819,000)	$ 12,516,000		$ (1,165,000)	$ (482,000)		$ 93,000
Subscribed Capital					23,000	1,000	0	2,000	36,107,000		47,000	1,000		14,000
Percentage of Subscribed Capital				100.00%	50.10%	50.10%	50.10%	50.10%	50.10%	50.10%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Profit of the consolidated quarter	$ (1,908,294)	$ (2,296,939)			$ (77,000)	$ (634,000)	$ 0	$ (10,000)	$ (102,000)		$ 22,000	$ 0		$ (9,000)
Ownership Type					Indirect Subsidiary	Indirect Subsidiary	Indirect Subsidiary	Indirect Subsidiary	Indirect Subsidiary		Direct Subsidiary	Direct Subsidiary		Direct Subsidiary
Date of the First Consolidation					Dec. 31, 2005	Dec. 31, 2005	Sep. 22, 2010	Jan. 08, 2007	Jun. 01, 2011		Jan. 04, 2011	Jan. 06, 2011		Sep. 30, 2012

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Other Income/Expense - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Component of Other Income, Nonoperating [Line Items]
Other Income	$ 3	$ 33

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Using Black Scholes Pricing Model (Detail) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012		Dec. 31, 2011
Class of Stock [Line Items]
Balance end of period opening balance	10,328,155	6,846,280		2,000,000
Balance end of period opening balance				6,841,280
Warrants issued for financial services1				707,280
Warrants issued for financial services2				15,000
Warrants amended		0
Warrants reissued		0
Warrants issued for legal services		250,000
Warrants issued for nominal value		1,120,000
Warrants sold with share units1		120,000		4,024,000
Warrants issued with debt conversion1		550,000
Warrants issued with debt conversion2		500,000
Warrants sold with share units2		30,000
Warrants issued with debt1		550,000
Warrants issued with debt2		100,000
Warrants issued with debt3		0
Warrants issued with debt4		250,000
Warrants issued for consulting services		16,875		100,000
Transfer (3/11/2011)	739,000
Balance end of period closing balance	11,067,155	10,328,155		6,846,280
Warrants, Fair value at Issuance				$ 0
Fair value of warrants issued for financing services1				0
Fair value of warrants issued for financing services2				0
Fair value of warrants amended		0
Fair value of warrantsr reissued		556,785
Fair value of warrants issued for legal services		270,208	[1]
Fair value of warrants issued for nominal value		2,457,662
Fair value of warrants sold with share units1		90,000		0
Fair value of warrants issued with debt conversion1		0
Fair value of warrants issued with debt conversion2		0
Fair value of warrants sold with share units2		25,800
Fair value of warrants issued with debt1		26,500
Fair value of warrants issued with debt2		0
Fair value of warrants issued with debt3		0
Fair value of warrants issued with debt4		0
Fair value of warrants issued for consulting services		2,624	[2]	34,000	[2]
Fair value of warrants issued with transfer	$ 0
Warrants issue date				Oct. 01, 2010
Warrants issue date For financial services1				Mar. 11, 2011
Warrants issue date for financial services2				Mar. 28, 2011
Warrants amended date		Oct. 01, 2010
Warrants reissued date		Jun. 01, 2012
Warrants issue date for legal services		Mar. 31, 2012
Warrants issue date for nominal value		Mar. 28, 2012
Warrants sold date for share units1		Apr. 16, 2012		Mar. 31, 2011
Warrants issue date for debt conversion1		Apr. 28, 2012
Warrants issue date for debt conversion2		Apr. 30, 2012
Warrants sold date for share units2		May 10, 2012
Warrants issue date for debt1		Jul. 05, 2012
Warrants issue date for debt2		Aug. 13, 2012
Warrants issue date for debt3		Oct. 26, 2012
Warrants issue date for debt4		Nov. 30, 2012
Warrants issue date for transfer	Feb. 06, 2013
Warrants issue date for consulting services		Dec. 21, 2012		Apr. 01, 2011
Warrants expiration date				Jun. 01, 2013
Warrants expiration date For financial services1				Mar. 11, 2014
Warrants expiration date for financial services2				Mar. 28, 2014
Warrants expiration date amended		Jun. 01, 2013
Warrants reissued expiration date		Jun. 01, 2015
Warrants expiration date for legal services		Mar. 31, 2012
Warrants expiration date for nominal value		Mar. 28, 2015
Warrants expiration date for share units1		Apr. 16, 2015		Mar. 31, 2014
Warrants expiration date for debt conversion1		Apr. 28, 2015
Warrants expiration date for debt conversion2		Apr. 30, 2015
Warrants expiration date for share units2		May 10, 2015
Warrants expiration date for debt1		Jul. 05, 2012
Warrants expiration date for debt2		Aug. 13, 2015
Warrants expiration date for debt3		Oct. 29, 2015
Warrants expiration date for debt4		Nov. 30, 2015
Warrants expiration date for consulting services		Dec. 21, 2015		Apr. 01, 2014
Warrants expiration date for transfer	Mar. 11, 2014
Warrant strike price				$ 4.00
Warrant strike price for financial services1				$ 1.50
Warrant strike price for financial services2				$ 1.50
Warrant strike price for amended		$ 4.00
Warrant strike price for reissued		$ 1.00
Warrant strike price for legal services		$ 1.10
Warrant strike price for nominal value		$ 0.50
Warrant strike price for share units1		$ 1.50		$ 1.50
Warrant strike price for debt conversion1		$ 1.75
Warrant strike price for debt conversion2		$ 1.75
Warrant strike price for share units2		$ 1.50
Warrant strike price for debt1		$ 0.50
Warrant strike price for debt2		$ 0.35
Warrant strike price for debt3		$ 0.20
Warrant strike price for debt4		$ 0.20
Warrant strike price for consulting services		$ 0.21		$ 1.50
Warrant strike price for transfer	$ 1.50
Common shares amended allowed to purchase		(2,000,000)
Common shares reissued allowed to purchase		2,000,000
Issued
Class of Stock [Line Items]
Balance end of period opening balance	5,136,875	6,866,280		0
Warrants issued for financial services1				707,280
Warrants issued for financial services2				15,000
Warrants amended		0
Warrants reissued		0
Warrants issued for legal services		250,000
Warrants issued for nominal value		2,020,000
Warrants sold with share units1		120,000		6,044,000
Warrants issued with debt conversion1		550,000
Warrants issued with debt conversion2		500,000
Warrants sold with share units2		30,000
Warrants issued with debt1		550,000
Warrants issued with debt2		100,000
Warrants issued with debt3		500,000
Warrants issued with debt4		500,000
Warrants issued for consulting services		16,875		100,000
Transfer (3/11/2011)	0
Balance end of period closing balance	5,136,875	5,136,875		6,866,280
Exercised
Class of Stock [Line Items]
Balance end of period opening balance	1,655,000	5,000		0
Warrants issued for financial services1				0
Warrants issued for financial services2				0
Warrants amended		0
Warrants reissued		0
Warrants issued for legal services		0
Warrants issued for nominal value		900,000
Warrants sold with share units1		0		2,020,000
Warrants issued with debt conversion1		0
Warrants issued with debt conversion2		0
Warrants sold with share units2		0
Warrants issued with debt1		0
Warrants issued with debt2		0
Warrants issued with debt3		500,000
Warrants issued with debt4		250,000
Warrants issued for consulting services		0		0
Transfer (3/11/2011)	0
Balance end of period closing balance	1,655,000	1,655,000		5,000

[1] recorded as legal expense

[2] recorded as consulting expense

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OTHER INCOME/EXPENSE

3 Months Ended

Mar. 31, 2013

Other Income and Expenses [Abstract]

OTHER INCOME/EXPENSE

Note 24 OTHER INCOME/EXPENSE

At the financial statement date, Other expense was 3 KUSD (December 31, 2012 restated year end: Other Expense 33 KUSD).

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DEFERRED INCOME

3 Months Ended

Mar. 31, 2013

Deferred Revenue Disclosure [Abstract]

DEFERRED INCOME

Note18          DEFERRED INCOME

Accruals for future periods leading to realization of sales after the financial statement date are reported under deferred income. The deferred income items listed as of the financial statement date in the amount of 8,853 KUSD (December 31, 2012 restated year end: 6,100 KUSD) primarily include maintenance income collected in advance for the period after the end of the financial statement date. They are amortized on a straight-line basis over their respective contract terms.

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REVENUE ALLOCATION (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Gross Revenue Broken Down By Products

Gross revenue may be broken down by the following products for the three months ended March 31, 2013 are as follows:

	3/31/2013
Sales Revenues	KUSD
Licenses		871
Maintenance		2,688
Partner Contribution		0
Service		851
Third-Party Products		685
LND Third-Party Products		129
Others		0
		5,224

Revenues by Geographic Area

Revenues by geographical area for the three months ended March 31, 2013 are as follows:

Sales Revenues	3/31/2013
by geographic area	KUSD
US		1,027
Germany		3,973
United Kingdom		224
Others		0
		5,224

Long-lived Assets By Geographic Area

Long-lived assets by geographical area, which primarily include property plant and equipment, are as follows:

Long-lived assets	3/31/2013
by geographic area	KUSD
US		126
Germany		188
United Kingdom		4
Others		0
		318

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Revenues by Geographic Area (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 5,224,379	$ 6,952,049
US
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,027,000
Germany
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	3,973,000
United Kingdom
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	224,000
Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 0

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Prepaid Expenses - Additional Information (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Prepaid And Other Current Assets [Line Items]
Prepaid expenses	$ 214,435	$ 84,304

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Accounts Payable and Accrued Liabilities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Accounts Payable and Accrued Liabilities [Line Items]
Trade account payable carrying amount	$ 1,677	$ 3,274
Trade payable repayment term	1 year
Provision for salaries	426	861
Provision on vacation obligation	253	315
Provision on settlement liabilities	454	1,059
Other provisions accrued	1,985	3,149
Liabilities on financial cost	126	128
Provision for legal consulting	74	73
Warranty claims	127	96
Other Provisions
Accounts Payable and Accrued Liabilities [Line Items]
Other provisions accrued	$ 349	$ 446

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NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Schedule of Debt

As described more fully in Note 22, a breakdown of the Notes Payable of $ 260,421 at March 31, 2013 (December 31, 2012 restated year end: $2,313,572) is as follows:

	Loan		Accrued
		$	$	$
	7/5/2012	250,000	10,421	260,421
	10/26/2012	1,000,000	36,165	1,036,165
	11/30/2012	500,000	8,493	508,493
	11/30/2012	500,000	8,493	508,493
Balance at December 31, 2012		2,250,000	63,572	2,313,572
Accrued Interest converted into shares			36,165
Payments made through March 31, 2013		2,000,000	16,986	2,053,151
Balance at March 31, 2013		250,000	10,421	260,421

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PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

Property Plant and Equipment Cost and Accumulated Depreciation

The depreciation period for other office equipment is three to ten years. Office furnishings are depreciated over a period of eight to ten years. Leasehold Improvements are depreciated up to 40 years.

Property, Plant and Equipment kUSD	Development of the cost		Development of accumulated depreciation		Balance
Restated 12/31/2012		7,206.5		6,873.7		332.8
Additions		23		14
Disposals		(36)		(6)
Currency differences		9		3
Reclassifications		0		0
Updated 03/31/2013		7,202.5		6,884.7		317.8

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OTHER RECEIVABLES NON-CURRENT (Tables)

3 Months Ended

Mar. 31, 2013

Other Assets, Noncurrent [Abstract]

Long Term Investments

The major components of the Non-current Receivables include the following:

OTHER RECEIVABLES NON-CURRENT	KUSD		KUSD Restated
	3/31/2013		12/31/2012
Cooperative shares		1		1
Intercompany Loan Values during the quarter		0		0
Other long term receivables		0		427
Balance		1		428

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PREPAID EXPENSES

3 Months Ended

Mar. 31, 2013

Prepaid Expenses [Abstract]

PREPAID EXPENSES

Note 8       PREPAID EXPENSES

Prepaid expenses in the amount of 214 KUSD were primarily recorded for prepaid rent, insurance and advance on technological collaboration events (December 31, 2012 restated year end: 84 KUSD).

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Notes Payable - Additional Information (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Short-term Debt [Line Items]
Notes payable	$ 260,421	$ 2,313,572

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SUPPLEMENTAL CASH FLOW DISCLOSURES

3 Months Ended

Mar. 31, 2013

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW DISCLOSURES

Note 25 SUPPLEMENTAL CASH FLOW DISCLOSURES

The significant non-cash transactions through March 31, 2013 were as follows: 

· On April 1, 2011, the Company acquired Pavone AG, for 350 KUSD, assumption of $583,991 debt and 1,000,000 shares of its common stock.

· On June 1, 2011, the Company acquired GroupWare, Inc., for 250 KUSD, assumption of $694,617 debt and 250,000 shares of its common stock.

· On July 25, 2011, the Company acquired IDC Global, Inc. for 750 KUSD, $ 883,005 assumption of debt, 25 (KUSD) reimbursement for accounting and legal fees, 35 KUSD signing bonuses and 880,000 shares of common stock.

· On September 27, 2011, the Company acquired SD Holdings Ltd for $525,529 and issued 612,874 shares of Common Stock.

· On February 27, 2012, an outstanding debt of GROUP was converted into an aggregate of 1,750,000 shares of GROUP common stock, increasing GROUP’s total outstanding common stock to 26,982,000 shares. As a result of the foregoing increase in the number of total outstanding shares of GROUP common stock, the Company increased its ownership of GROUP common stock to an aggregate of 13,525,000 shares, representing approximately 50.1% of the outstanding common stock of GROUP, by purchasing the 883,765 shares of GROUP common stock from GAVF LLC for an average purchase price of $0.70 per share.

· On March 31, 2012, warrants were issued in lieu of consulting services and the fair value, based on the Black Scholes method, was determined to be $ 270,208 and recorded as Additional Paid-In Capital.

· On April 28, 2012, $ 632,500 in notes payable to RealRisk Ventures, LL were converted into 550,000 shares of common stock and into 550,000 warrants with each warrant allowing the holder to purchase one common share at $1.75 for a period of 3 years. On April 30, 2012, $ 460,000 in notes payable to Lotus Holdings Ltd. were converted into 400,000 shares of common stock and 400,000 warrants, with each warrant allowing the holder to purchase one common share at $1.75 for a period of 3 years.

· On April 30, 2012 $ 172,500 of accounts payable due to Vitamin B Venture, GmbH was converted into 150,000 shares of common stock in satisfaction of a converted note to Kjell Jahn.

· On July 5, 2012, promissory notes for $552,500 were issued at 8.5% and had a conversion feature. Similar notes without the conversion were issued at 20%. Therefore, it was determined that the conversion feature had a value which was calculated by discounting the note as if the cost of capital was 20% and based on the due date set forth of 6 months. The calculated value was classified as discounted debt and amortized over the life of the promissory notes resulting in additional Interest expense and a credit to Additional Paid-In Capital for $26,700.

· On December 21, 2012, warrants were issued in lieu of consulting services and the fair value, based on the Black Scholes method, was determined to be $ 2,624 and recorded as Additional Paid-In Capital.

· On March 1, 2013, $700,000 of Notes Payable and Accounts Payable due to Vitamin VbV GmbH was dissolved as payment against a Loan Payable from Group AG.

· On March 20, 2013, 450,960 shares were issued at a rate of .30/share on conversion of accrued interest due on a Note Payable to John Moore.

· On March 27, 2013, 200,000 shares were issued at a rate of .30/share on conversion of accrued interest due on a Note Payable to Stephen Baksa.

· On March 27, 2013, 200,000 shares were issued in lieu of services and the fair value, based on the Black Scholes, method was determined to be $ 70,000 and recorded as Additional Paid-In Capital.

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DUE TO RELATED PARTIES (Tables)

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

	3/31/2013		12/31/2012 Restated
	KUSD		KUSD
Accounts payable and accruals
Green Mind Ventures		0		72.0
Vitamin-B Venture Gmbh		0		493.6
Board of Directors fees and expenses		224.5		110.4
Notes payable – see below		52.0		1,391.8
Due to associated company		0		48.1
		276.5		2,115.9

Due to Related Party Debt

	Date of Loan	Principal		Interest Accrued		Total		Due Date
		$		$		$
Total	7/5/2012		50,000		2,084		52,084	1/5/2013

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OTHER RECEIVABLES NON-CURRENT

3 Months Ended

Mar. 31, 2013

Other Assets, Noncurrent [Abstract]

OTHER RECEIVABLES NON-CURRENT

Note 11 OTHER RECEIVABLES NON-CURRENT

The major components of the Non-current Receivables include the following:

OTHER RECEIVABLES NON-CURRENT	KUSD		KUSD Restated
	3/31/2013		12/31/2012
Cooperative shares		1		1
Intercompany Loan Values during the quarter		0		0
Other long term receivables		0		427
Balance		1		428

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Assumption for Warrants Issued (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Warranty Liability [Line Items]
Volatility		77.10%
Risk free interest rate		1.19%
Expected life	3 years	3 years
Dividend rate
Maximum
Warranty Liability [Line Items]
Volatility	134.30%
Risk free interest rate	0.51%
Minimum
Warranty Liability [Line Items]
Volatility	120.60%
Risk free interest rate	0.34%

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ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Note 7       ACCOUNTS RECEIVABLE

As of the financial statement date, Accounts Receivable was 3,206 KUSD (December 31, 2012 restated year end: 4,143 KUSD). Receivables are generally measured at their nominal value and taking into account all foreseeable risks. Probable default risks are handled with specific allowances for bad debts. With regard to the trade receivables which are neither impaired nor delinquent, there are no indications as of the financial statement date that the debtors will not meet their payment obligations.

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INTERIM REPORTING

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

INTERIM REPORTING

Note 2      INTERIM REPORTING

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. They do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, they include all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. These interim financial statements follow the same accounting policies and methods of their application as the Company’s audited financial statements. All adjustments are of a normal recurring nature.

Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that can be expected for the year ending December 31, 2013.

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Cash and Cash Equivalents - Additional Information (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 738,369	$ 1,154,602	$ 1,241,358	$ 3,142,308
Cash equivalents	$ 3,000	$ 3,000

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Effects of Restatement of Balance Sheets (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 738,369	$ 1,154,602	$ 1,241,358	$ 3,142,308
Accounts receivable	3,205,807	4,143,448
Prepaid expenses	214,435	84,304
Other receivables	1,019,080	676,976
Total current assets	5,177,691	6,444,192
Property, plant and equipment	317,771	332,839
other non-current receivables	1,154	428,422
Deferred tax assets	1,104,222	1,132,103
Goodwill	31,260,500	34,254,881		39,126.0
Software	10,947,781	12,207,031
Other assets	160,340	156,379
Total non-current assets	43,791,768	50,358,300
Total assets	48,969,459	56,802,492
Current liabilities
Notes payable	260,421	2,313,572
Liabilities to banks	9,293	6,774
Accounts payable and accrued liabilities	3,662,133	6,241,733
Other liabilities	800,740	860,032
Deferred income	8,852,860	6,099,570
Due to related parties	276,542	2,115,869
Total current liabilities	13,861,989	18,227,184
Liabilities to banks	2,563,260	3,716,102
Deferred tax liabilities	0
Retirement benefit obligation	160,874	165,876
Other liabilities	0
Total non-current liabilities	2,724,134	4,041,876
Total liabilities	16,586,123	22,269,060
Capital stock Authorized: 75,000,000 common shares and 25,000,000 preferred shares each with a par value of $.001
Issued and outstanding: 30,812,624 common shares	30,813	29,462
Additional paid in capital	50,055,132	49,691,195
Subscription Receivable	50,000	0
Accumulated deficit	(20,308,707)	(18,974,582)
Other comprehensive income	112,249	442,841
Total shareholders' equity	29,939,487	31,188,916
Noncontrolling interest in subsidiaries	2,443,849	3,344,516
Total equity and liabilities	48,969,459	56,802,492
Scenario, Previously Reported
Current Assets
Cash and cash equivalents	738,369	1,154,602
Accounts receivable	3,205,807
Prepaid expenses	214,435
Other receivables	1,019,080
Total current assets	5,177,691
Property, plant and equipment	317,771
other non-current receivables	1,154
Deferred tax assets	1,104,222
Goodwill	31,260,500
Software	10,947,781
Other assets	160,340
Total non-current assets	43,791,768
Total assets	48,969,459
Current liabilities
Notes payable	260,421
Liabilities to banks	9,293
Accounts payable and accrued liabilities	3,662,133
Other liabilities	800,740
Deferred income	8,852,860
Due to related parties	276,542
Total current liabilities	13,861,989
Liabilities to banks	2,563,260
Deferred tax liabilities	0
Retirement benefit obligation	160,874
Other liabilities	0
Total non-current liabilities	2,724,134
Total liabilities	16,586,123
Capital stock Authorized: 75,000,000 common shares and 25,000,000 preferred shares each with a par value of $.001
Issued and outstanding: 30,812,624 common shares	30,813
Additional paid in capital	50,055,132
Subscription Receivable	50,000
Accumulated deficit	(20,308,707)
Other comprehensive income	112,249
Total shareholders' equity	29,939,487
Noncontrolling interest in subsidiaries	2,443,849
Total equity and liabilities	48,969,459
Restatement Adjustment
Current Assets
Cash and cash equivalents	0	0
Accounts receivable	0
Prepaid expenses	0
Other receivables	0
Total current assets	0
Equity investments in related parties	0
Property, plant and equipment	0
other non-current receivables	0
Deferred tax assets	0
Goodwill	0
Software	0
Other assets	0
Total non-current assets	0
Total assets	0
Current liabilities
Notes payable	0
Liabilities to banks	0
Accounts payable and accrued liabilities	0
Other liabilities	0
Deferred income	0
Due to related parties	0
Total current liabilities	0
Liabilities to banks	0
Deferred tax liabilities	0
Retirement benefit obligation	0
Other liabilities	0
Total non-current liabilities	0
Total liabilities	0
Capital stock Authorized: 75,000,000 common shares and 25,000,000 preferred shares each with a par value of $.001
Issued and outstanding: 30,812,624 common shares	0
Additional paid in capital	0
Accumulated deficit	0
Other comprehensive income	0
Total shareholders' equity	0
Noncontrolling interest in subsidiaries	0
Total equity and liabilities	$ 0

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CHANGE IN ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2013

Change In Accounting Policies [Abstract]

Restatement to Prior Year Income

In accordance with ASC 250, effects of this restatement to the respective statements are shown below:

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Assets
Current Assets
Cash and cash equivalents		738,369		738,369		0
Accounts receivable		3,205,807		3,205,807		0
Prepaid expenses		214,435		214,435		0
Other receivables		1,019,080		1,019,080		0
Total current assets		5,177,691		5,177,691		0
Equity investments in related parties						0
Property, plant and equipment		317,771		317,771		0
other non-current receivables		1,154		1,154		0
Deferred tax assets		1,104,222		1,104,222		0
Goodwill		31,260,500		31,260,500		0
Software		10,947,781		10,947,781		0
Other assets		160,340		160,340		0
Total non-current assets		43,791,768		43,791,768		0
Total assets		48,969,459		48,969,459		0
Liabilities and shareholders' equity
Current liabilities
Notes payable		260,421		260,421		0
Liabilities to banks		9,293		9,293		0
Accounts payable and accrued liabilities		3,662,133		3,662,133		0
Other liabilities		800,740		800,740		0
Deferred income		8,852,860		8,852,860		0
Due to related parties		276,542		276,542		0
Total current liabilities		13,861,989		13,861,989		0
Liabilities to banks		2,563,260		2,563,260		0
Deferred tax liabilities		0		0		0
Retirement benefit obligation		160,874		160,874		0
Other liabilities		0		0		0
Total non-current liabilities		2,724,134		2,724,134		0
Total liabilities		16,586,123		16,586,123		0
Shareholders' equity
Capital Stock
Authorized:
75,000,000 common shares and 25,000,000 preferred shares each with a par value of $.001
Issued and outstanding
30,812,624 common shares
		30,813		30,813		0
Additional paid in capital		50,055,132		50,055,132		0
Subscription Receivable		50,000		50,000
Accumulated deficit		(20,308,707)		(20,308,707)		0
Other comprehensive income		112,249		112,249		0
Total shareholders' equity		29,939,487		29,939,487		0
Noncontrolling interest in subsidiaries		2,443,849		2,443,849		0
Total equity and liabilities		48,969,459		48,969,459		0

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Net sales		5,224,379		5,224,379		0
Cost of goods sold		3,101,698		3,101,698		0
Gross profit		2,122,681		2,122,681		0
Operating expenses
Selling expenses		2,371,530		2,371,530		0
Administrative expenses		1,500,042		1,500,042		0
General expenses		229,147		229,147		0
		4,100,719		4,100,719		0
Operating income		(1,978,038)		(1,978,038)		0
Other Income (expense)
Other Income (expense)		173,479		173,479		0
Interest income		341		341		0
Interest expense		(177,036)		(177,036)		0
		(3,216)		(3,216)		0
Income (loss) before income taxes		(1,981,254)		(1,981,254)		0
Income tax (income) expense		(72,960)		(72,960)		0
Net income (loss)		(1,908,294)		(1,908,294)		0
Net income (loss) attributable to non controlling interest		(574,169)		(574,169)		0
Net income (loss) attributable to shareholders		(1,334,125)		(1,334,125)		0
Other comprehensive income (loss)		(659,864)		(659,864)		0
Net income (loss) and comprehensive income (loss) attributed to shareholders		(1,664,717)		(1,664,717)		0
Basic and diluted income (loss) per share		(0.0447)		(0.509)		0.464
Weighted average number of shares outstanding		29,816,782		24,847,525		4,969,257

	For the three months ended
	Restated		Originally Filed
	March 31, 2013		March 31, 2013		Difference
	$		$		$
Cash flow from operating activities
Net loss / net income		(1,908,294)		(1,908,294)		0
Adjustments
Deferred income taxes		27,881		27,881		0
Depreciation and amortization		1,561,952		1,561,952		0
Consulting Expense		70,000		70,000		0
Interest Expense		195,288		195,288		0
Minority interest losses		(900,667)		(900,667)		0
Changes in operating assets and liabilities
Accounts receivable and other assets		2,692,952		2,692,952		0
Retirement benefit obligation		(5,002)		(5,002)		0
Inventories		0		0
Accounts payable and other liabilities		(635,135)		(635,135)		0
Net cash provided by operating activities		1,098,975		1,098,975		0
Cash flow from investing activities
Purchase (sale) of intangible assets		(2,756,007)		(2,756,007)		0
Purchase of property, plant and equipment		(31,639)		(31,639)		0
Sale (Purchase) of subsidiaries		3,577,195		3,577,195		0
Write-down goodwill and intangibles		2,994,381		2,994,381		0
Purchase of financial assets		(427,267)		(427,267)		0
Net cash used in investing activities		3,356,663		3,356,663		0
Cash flow from financing activities
Net borrowings - banks		(1,150,322)		(1,150,322)		0
other borrowings		(2,053,151)		(2,053,151)		0
Forgiveness of Debt		10,659		10,659
Capital paid-in		150,000		150,000
Loans from related parties		(1,839,327)		(1,839,327)
Net cash used in financing activities		(4,882,141)		(4,882,141)		0
Effect of exchange rate changes on cash		10,270		10,270		0
Net increase in cash		(416,233)		(416,233)		0
Cash and cash equivalents - Beginning of the period		1,154,602		1,154,602		0
Cash and cash equivalents - End of period		738,369		738,369		0

Explanation of Differences:

Weighted Average Shares/ Earnings per Share

The 3/31/13 financials were restated due to an error in the calculation of weighted shares resulting in erroneous earnings per share.

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Subsequent Event - Additional Information (Detail) (USD $)	1 Months Ended	0 Months Ended	1 Months Ended								1 Months Ended				1 Months Ended
	Apr. 29, 2013	Jan. 05, 2011	Nov. 01, 2010	Mar. 31, 2013	Dec. 31, 2012	Oct. 26, 2012	Aug. 01, 2012	Apr. 30, 2012	Mar. 27, 2012	Apr. 01, 2011	Apr. 29, 2013 Conditional Warrant	Oct. 26, 2012 Stephen D. Baksa	Apr. 29, 2013 Chairman	Jul. 05, 2012 Promissory Notes	Apr. 26, 2013 Promissory Notes Subsequent Event Stephen D. Baksa	Apr. 26, 2013 Promissory Notes Subsequent Event Chairman	May 31, 2012 GROUP Business Software AG	Feb. 27, 2012 GROUP Business Software AG	Jan. 06, 2011 GROUP Business Software AG
Subsequent Event [Line Items]
Business acquisition, percentage of interests acquired							100.00%										100.00%	50.10%	50.10%
Issuance date of secured notes		Jan. 05, 2011	Nov. 01, 2010												Apr. 26, 2013	Oct. 26, 2012
Promissory note aggregate principal amount												$ 1,000,000			$ 200,000	$ 200,000
Debt instrument, interest rate, stated percentage		5.00%	5.00%	3.25%								20.00%		20.00%	2.00%	2.00%
Debt instrument, maturity date															Jun. 30, 2013	Jun. 30, 2013
Debt instrument secured percent															50.00%	50.00%
Warrant issued to purchase common stock	100,000										100,000
Exercise price of warrants	0.25				0.21	0.35		1.75	1.10	1.50			0.25

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Other Accrual Cover Future Payment Obligation, Perceivable and Uncertain Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Accrued Liabilities [Line Items]
Beginning Balance	$ 3,149
Utilization	(2,811)
Dissolution	114
Increase	1,654
Currency differences	107
Ending Balance	1,985
Tax provision
Accrued Liabilities [Line Items]
Beginning Balance	57
Utilization	(57)
Dissolution	0
Increase	55
Currency differences	0
Ending Balance	55
Salary
Accrued Liabilities [Line Items]
Beginning Balance	861
Utilization	(861)
Dissolution	24
Increase	434
Currency differences	16
Ending Balance	426
Vacation
Accrued Liabilities [Line Items]
Beginning Balance	315
Utilization	(303)
Dissolution	30
Increase	258
Currency differences	12
Ending Balance	253
Workers Compensation Insurance Association
Accrued Liabilities [Line Items]
Beginning Balance	25
Utilization	(21)
Dissolution	0
Increase	25
Currency differences	1
Ending Balance	30
Compensation Levy for Non-Employment of Severely Handicapped Persons
Accrued Liabilities [Line Items]
Beginning Balance	19
Utilization	(16)
Dissolution	0
Increase	17
Currency differences	0
Ending Balance	21
Outstanding Invoices
Accrued Liabilities [Line Items]
Beginning Balance	1,059
Utilization	(1,056)
Dissolution	60
Increase	489
Currency differences	22
Ending Balance	454
Annual Financial Statement Costs
Accrued Liabilities [Line Items]
Beginning Balance	128
Utilization	(186)
Dissolution	0
Increase	180
Currency differences	4
Ending Balance	126
Other Provisions
Accrued Liabilities [Line Items]
Beginning Balance	446
Utilization	(221)
Dissolution	0
Increase	118
Currency differences	6
Ending Balance	349
Warranties
Accrued Liabilities [Line Items]
Beginning Balance	96
Utilization	(16)
Dissolution	0
Increase	6
Currency differences	41
Ending Balance	127
Gesture of Goodwill
Accrued Liabilities [Line Items]
Beginning Balance	0
Utilization	0
Dissolution	0
Increase	0
Currency differences	0
Ending Balance	0
Provision for Legal Costs
Accrued Liabilities [Line Items]
Beginning Balance	73
Utilization	(4)
Dissolution	0
Currency differences	5
Ending Balance	74
Severance
Accrued Liabilities [Line Items]
Beginning Balance	70
Utilization	(70)
Dissolution	0
Increase	70
Currency differences	0
Ending Balance	$ 70

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Goodwill Arise from Business Acquisition (Detail) (USD $)	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 GROUP Business Software AG	Dec. 31, 2012 GROUP Business Software AG	Dec. 31, 2012 GROUP Business Software Corp	Mar. 31, 2013 GROUP Business Software (UK) Ltd.	Dec. 31, 2012 GROUP Business Software (UK) Ltd.	Dec. 31, 2012 evVokus Software GmbH	Mar. 31, 2013 Permessa Corporation	Dec. 31, 2012 Permessa Corporation	Mar. 31, 2013 Pavone GmbH	Dec. 31, 2012 Pavone GmbH	Jul. 25, 2011 IDC Global Inc.	Mar. 31, 2013 IDC Global Inc.	Dec. 31, 2012 IDC Global Inc.	Sep. 27, 2011 SD Holdings	Dec. 31, 2012 SD Holdings	Mar. 31, 2013 GBS India	Dec. 31, 2012 GBS India
Acquired Intangible Assets [Line Items]
Date of the First Consolidation			Jan. 06, 2011	Jan. 06, 2011	Dec. 31, 2005	Dec. 31, 2005	Dec. 31, 2005	Oct. 01, 2005	Sep. 22, 2011	Sep. 22, 2011	Jan. 04, 2011	Jan. 04, 2011	Jul. 25, 2011	Jul. 25, 2010	Jul. 25, 2010	Sep. 27, 2011	Sep. 27, 2011	Aug. 01, 2012	Aug. 01, 2012
Opening	$ 34,254,881	$ 39,126.0	$ 18,425.6	$ 20,194.4	$ 2,177.5	$ 2,765.1	$ 2,765.1	$ 443.6	$ 2,387.4	$ 2,387.4	$ 5,950.5	$ 5,950.5		$ 2,994.4	$ 2,994.4		$ 2,213.1	$ 1,731.9	$ 0
Addtions	0	2,350.5	0	618.6	0	0	0	0	0	0	0	0		0	0		0	0	1,731.9
Adjustments	(2,994.4)	(5,044.1)	0	(2,387.4)	0	0	0	(443.60)	0	0	0	0		(2,994)	0		(2,213.1)	0	0
Written off as impaired	0	2,177.5	0	0	2,177.5	0	0	0	0	0	0	0		0	0		0	0	0
Closing	$ 31,260,500	$ 34,254,881	$ 18,425.6	$ 18,425.6	$ 0	$ 2,765.1	$ 2,765.1	$ 0	$ 2,387.4	$ 2,387.4	$ 5,950.5	$ 5,950.5		$ 0	$ 2,994.4		$ 0	$ 1,731.9	$ 1,731.9

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OTHER ASSETS

3 Months Ended

Mar. 31, 2013

Other Assets [Abstract]

OTHER ASSETS

Note 14 OTHER ASSETS

The balance of this account of 160 KUSD primarily includes rent and other security deposits (December 31, 2012 restated year end: 156 KUSD).

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PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

Note 10       PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are measured at cost less scheduled straight-line depreciation. Depreciation of the computer hardware listed as office equipment is distributed over a period of three to five years. The depreciation period for other office equipment is three to ten years. Office furnishings are depreciated over a period of eight to ten years. Leasehold Improvements are depreciated up to 40 years.

Property, Plant and Equipment kUSD	Development of the cost		Development of accumulated depreciation		Balance
Restated 12/31/2012		7,206.5		6,873.7		332.8
Additions		23		14
Disposals		(36)		(6)
Currency differences		9		3
Reclassifications		0		0
Updated 03/31/2013		7,202.5		6,884.7		317.8

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Other Short Term Liabilities - Additional Information (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Other Short Term Liabilities [Line Items]
Other liabilities, current	$ 800,740	$ 860,032

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

3 Months Ended

Mar. 31, 2013

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Note 17           ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Trade payables

As of the financial statement date, trade accounts payable amounted to 1,677 KUSD (December 31, 2012 RESTATED  year end: 3,274 KUSD). Trade payables are carried at their repayment amount and all have a residual term of up to one year.

Other Accrual

Other provisions are created as of the financial statement date in an amount necessary according to a reasonable commercial appraisal, to cover future payment obligations, perceivable risks and uncertain liabilities of the Company. Amounts deemed to be most likely to occur, in careful assessment, are accrued.

	Status								Currency		Status
USD	12/31/2012		Utilization		Dissolution		Increase		Differences		3/31/2013
Tax provision		57		(57)		0		55		0		55
Salary		861		(861)		24		434		16		426
Vacation		315		(303)		30		258		12		253
Workers Compensation Insurance Association		25		(21)		0		25		1		30
Compensation Levy for Non-Employment of Severely Handicapped Persons		19		(16)		0		17		0		21
Outstanding Invoices		1,059		(1,056)		60		489		22		454
Annual Financial Statement Costs		128		(186)		0		180		4		126
Other Provisions		446		(221)		0		118		6		349
Warranties		96		(16)		0		6		41		127
Gesture of Goodwill		0		0		0		0		0		0
Provision for Legal Costs		73		(4)		0				5		74
Severance		70		(70)		0		70		0		70
Total		3,149		(2,811)		114		1654		107		1,985

Provisions for salaries of 426 KUSD (December 31, 2012 restated year end: 861 KUSD) include the provisions created for the variable salaries of the sales staff for the sales objectives reached in this business period.

Vacation provisions of 253 KUSD (December 31, 2012 restated year end: 315 KUSD) include the obligations of GROUP’s companies to their employees for remaining vacation claims from the reporting period. The amount of the provision is calculated on the gross salary of the individual employee plus the employer contribution to social security/Medicare and based on the unused vacation days as of the financial statement date.

For liabilities not yet settled, a provision totaling 454 KUSD (December 31, 2012 restated year end: 1059 KUSD) was created.

Other Provisions of 349 KUSD (December 31, 2012 restated year end: 446 KUSD) include miscellaneous provisions.

Expenses for the audit of the Company and preparation of the annual consolidated financial statements were recognized at 126 KUSD (December 31, 2012 restated year end: 128 KUSD).

A provision for anticipated legal consulting of 74 KUSD was recorded (December 31, 2012 restated year end: 73 KUSD).

For warranty claims, a provision of 127 KUSD (December 31, 2012 restated year end: 96 KUSD) was created determined by service income.

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NOTES PAYABLE

3 Months Ended

Mar. 31, 2013

Notes Payable [Abstract]

NOTES PAYABLE

Note 15 NOTES PAYABLE

As described more fully in Note 22, a breakdown of the Notes Payable of $ 260,421 at March 31, 2013 (December 31, 2012 restated year end: $2,313,572) is as follows:

	Loan		Accrued
		$	$	$
	7/5/2012	250,000	10,421	260,421
	10/26/2012	1,000,000	36,165	1,036,165
	11/30/2012	500,000	8,493	508,493
	11/30/2012	500,000	8,493	508,493
Balance at December 31, 2012		2,250,000	63,572	2,313,572
Accrued Interest converted into shares			36,165
Payments made through March 31, 2013		2,000,000	16,986	2,053,151
Balance at March 31, 2013		250,000	10,421	260,421

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Document And Entity Information	3 Months Ended
	Mar. 31, 2013	Aug. 15, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	GBSX
Entity Common Stock, Shares Outstanding		30,812,624
Entity Registrant Name	GBS Enterprises Inc
Entity Central Index Key	0001413754
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company

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LIABILITIES TO BANKS - CURRENT

3 Months Ended

Mar. 31, 2013

Liabilities To Banks - Current [Abstract]

LIABILITIES TO BANKS - CURRENT

Note 16           LIABILITIES  TO BANKS – CURRENT

Included in this account is an operating line of credit of 5 KUSD (December 31, 2012 year end: 5 KUSD) bearing interest at a 3.25% daily periodic rate with a credit limit of 100 KUSD.

Also included are checks in transit as of the financial statement date (4 KUSD).

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Other Assets - Additional Information (Detail) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Other assets	$ 160,340	$ 156,379

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Amortization of Concessions, Industrial Property Rights and Assets (Detail) (USD $)			3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Concessions and licenses
Research And Development Arrangement Contract To Perform For Others [Line Items]
Beginning Balance, Development of the cost			$ 33,038,700
Additions, Development of the cost			120,000
Disposals, Development of the cost			(1,420,000)
Currency differences, Development of the cost			143,000
Reclassifications, Development of the cost			0
Ending Balance, Development of the cost			31,881,700
Beginning Balance, Development of accumulated depreciation			20,831,700
Additions, Development of accumulated depreciation			98,000
Disposals, Development of accumulated depreciation			122,000
Currency differences, Development of accumulated depreciation			126,000
Reclassifications, Development of accumulated depreciation			0
Ending Balance, Development of accumulated depreciation			21,177,700
Beginning Balance	317,771	332,839	12,207,000
Additions			22,000
Disposals			(1,298,000)
Currency differences			17,000
Reclassifications			0
Ending Balance	$ 317,771	$ 332,839	$ 10,948,000