Schedules to the Financial Statements for the year ended March 31, 2011
15.2.7. Segment reporting
The Company’s operations primarily relate to providing business process management services to organizations that outsource their business processes. Accordingly, revenues represented along industry classes comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of the geographical location of customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income in individual segments. These are set out in the note on significant accounting policies. Industry segments at the Company primarily comprise customers relating to financial services, manufacturing, telecom, retail and other industries. Income in relation to segments is categorized based on items that are individually identified to those segments while expenditure is categorized in relation to the associated turnover of the segment. Expenses which form a significant component of total expenses are not specifically allocable to specific segments as the underlying services are used interchangeably. These expenses are separately disclosed as ‘unallocated’ and adjusted only against the total income of the Company. The Company believes that it is not practical to provide segment disclosures relating to these costs and expenses, and accordingly these expenses are separately disclosed as unallocated and directly charged against total income. Fixed assets or liabilities contracted have not been identified to any reportable segments, as these are used interchangeably between segments. Accordingly no disclosure relating to total segment assets and liabilities are made.
Geographical segments are segregated based on the location of the customers, or in relation to which the revenue is otherwise recognized. North America comprises the United States of America, Canada and Mexico; Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom; and others comprises all other places except, those mentioned above and India. All direct costs are identified to its respective verticals/ geographies on the basis of revenues from the respective verticals/ geographies while unallocable cost consists of depreciation only.
Industry segments
Years ended March 31, 2011 and March 31, 2010
in 
Financial Services |
Manufacturing |
Telecom |
Retail |
Others |
Total |
|
Revenue |
7,97,13,790 |
45,21,32,850 |
2,62,10,480 |
– |
6,40,982 |
55,86,98,102 |
5,69,77,580 |
51,12,22,368 |
1,27,17,537 |
14,40,695 |
1,21,55,029 |
59,45,13,209 |
|
Identifiable operating expenses |
3,60,57,915 |
26,27,97,668 |
1,33,53,956 |
– |
5,99,104 |
31,28,08,643 |
5,36,02,589 |
28,86,27,485 |
60,90,038 |
(16,56,084) |
1,21,91,109 |
35,88,55,137 |
|
Allocated segment expenses |
2,84,64,149 |
16,71,64,070 |
98,34,647 |
– |
3,36,919 |
20,57,99,785 |
1,99,70,279 |
17,97,67,407 |
45,99,448 |
7,99,199 |
34,05,074 |
20,85,41,407 |
|
Segmental operation income |
1,51,91,726 |
2,21,71,112 |
30,21,877 |
– |
(2,95,041) |
4,00,89,674 |
(1,65,95,288) |
4,28,27,476 |
20,28,051 |
22,97,580 |
(34,41,154) |
2,71,16,665 |
|
Unallocable expenses |
1,05,34,482 |
|||||
1,76,13,942 |
||||||
Operating income |
2,95,55,192 |
|||||
95,02,723 |
||||||
Other income |
(14,74,881) |
|||||
1,45,74,889 |
||||||
Net profit before tax |
2,80,80,311 |
|||||
2,40,77,612 |
||||||
Income tax |
1,25,96,716 |
|||||
1,01,91,405 |
||||||
Net profit after taxes |
1,54,83,595 |
|||||
1,38,86,207 |
Geographical segments
Years ended March 31, 2011 and March 31, 2010
in
North America |
Europe |
India |
Others |
Total |
|
Revenue |
8,98,79,088 |
46,88,19,014 |
– |
– |
55,86,98,102 |
2,99,62,563 |
56,45,50,646 |
– |
– |
59,45,13,209 |
|
Identifiable operating expenses |
6,16,95,625 |
25,11,13,018 |
– |
– |
31,28,08,643 |
2,11,51,928 |
33,77,03,209 |
– |
– |
35,88,55,137 |
|
Allocated segment expenses |
2,86,86,701 |
17,71,13,084 |
– |
– |
20,57,99,785 |
99,59,309 |
19,85,82,098 |
– |
– |
20,85,41,407 |
|
Segmental operation income |
(5,03,238) |
4,05,92,912 |
– |
– |
4,00,89,674 |
(11,48,674) |
2,82,65,339 |
– |
– |
2,71,16,665 |
|
Unallocable expenses |
1,05,34,482 |
||||
1,76,13,942 |
|||||
Operating income |
2,95,55,192 |
||||
95,02,723 |
|||||
Other income |
(14,74,881) |
||||
1,45,74,889 |
|||||
Net profit before tax |
2,80,80,311 |
||||
2,40,77,612 |
|||||
Income tax |
1,25,96,716 |
||||
1,01,91,405 |
|||||
Net profit after taxes |
1,54,83,595 |
||||
1,38,86,207 |