Schedules to the financial statements for the year ended December 31, 2010

13.2.7. Segment reporting

The Company’s operations predominantly relate to providing end-to-end business solutions that leverage technology thereby enabling clients to enhance business performance. These solutions are delivered to customers globally operating in various industry segments. 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 and expenditure in individual segments. These are as set out in the significant accounting policies.

Industry segments at the Company are primarily manufacturing companies and the retail industries.

Income and direct expenses in relation to segments is categorized based on items that are individually identifiable to that segment, while the remainder of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as ‘unallocated’ and directly charged against total income.

Fixed assets used in the Company’s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made.

Customer relationships are driven based on the location of the respective client. Europe includes continental Europe (both the east and the west).

Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.

Industry Segments

Year ended December 31, 2010 :

	Manufacturing	Retail	Total
Revenues	3,36,76,018	8,25,69,418	11,62,45,436
Identifiable operating expenses	1,98,23,417	5,74,63,677	7,72,87,094
Allocated expenses	1,03,10,308	2,31,12,538	3,34,22,846
Segmental operating income	35,42,294	19,93,203	55,35,497
Other income, net			(35,637)
Net profit before taxes			54,99,860
Income taxes			15,39,960
Net profit after taxes			39,59,900

Year ended December 31, 2009 :

	Manufacturing	Retail	Total
Revenues	2,06,60,755	5,55,15,888	7,61,76,643
Identifiable operating expenses	1,59,28,120	4,01,44,589	5,60,72,709
Allocated expenses	44,81,198	1,20,41,074	1,65,22,272
Segmental operating income	2,51,437	33,30,225	35,81,662
Other income, net			(2,10,137)
Net profit before taxes			33,71,525
Income taxes			9,47,585
Net profit after taxes			24,23,940

Geographic Segments

Year ended December 31, 2010 :

	Europe	Total
Revenues	11,62,45,436	11,62,45,436
Identifiable operating expenses	7,72,87,094	7,72,87,094
Allocated expenses	3,34,22,845	3,34,22,845
Segmental operating income	55,35,497	55,35,497
Operating income		55,35,497
Other income, net		(35,637)
Net profit before taxes		54,99,860
Income taxes		15,39,960
Net profit after taxes		39,59,900

Year ended December 31, 2009 :

	Europe	Total
Revenues	7,61,76,643	7,61,76,643
Identifiable operating expenses	5,60,72,709	5,60,72,709
Allocated expenses	1,65,22,272	1,65,22,272
Segmental operating income	35,81,662	35,81,662
Operating income		35,81,662
Other income, net		(2,10,136)
Net profit before taxes		33,71,525
Income taxes		9,47,585
Net profit after taxes		24,23,940