Schedules to the financial statements for the year ended March 31, 2010 (continued)

16.2.20. 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.

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, 2010 and March 31, 2009

in Rs.

Particulars Financial services Manufacturing Telecom Retail Others Total
Revenues 276,34,27,431 278,67,05,555 395,51,35,610 19,17,53,092 156,93,48,538 1126,63,70,226
  295,22,73,592 210,04,62,092 444,95,15,981 18,71,05,169 112,59,59,064 1081,53,15,898
Identifiable operating expenses 72,26,66,414 104,92,64,523 115,64,25,120 5,67,97,691 63,43,66,733 361,95,20,481
  83,35,15,873 83,70,12,566 134,63,35,541 5,80,09,902 37,15,84,252 344,64,58,134
Allocated expenses 106,09,42,131 111,89,79,714 153,87,37,365 7,57,49,821 64,05,39,858 443,49,48,889
  129,78,19,700 100,23,09,486 195,60,07,570 8,22,51,447 49,49,71,692 483,33,59,895
Segmental operating profit 97,98,18,886 61,84,61,318 125,99,73,125 5,92,05,580 29,44,41,947 321,19,00,856
  82,09,38,019 26,11,40,040 114,71,72,870 4,68,43,820 25,94,03,120 253,54,97,869
Unallocable expenses           53,86,79,767
Operating profit           267,32,21,089
Other income net           25,81,45,382
Net profit before taxes           293,13,66,471
Taxes           19,32,34,404
Net profit after taxes           273,81,32,067
Geographical segments

Years ended March 31, 2010 and March 31, 2009

In Rs.
Particulars United States of America Europe Others Total
Revenues 6,72,30,60,776 4,02,03,24,688 52,29,84,762 11,26,63,70,226
  5,73,89,24,878 4,75,77,51,915 31,86,39,105 10,81,53,15,898
Identifiable operating expenses 2,12,17,29,673 1,30,93,70,539 18,84,20,269 3,61,95,20,481
  1,93,03,48,323 1,42,28,72,933 9,32,36,878 3,44,64,58,134
Allocated expenses 2,67,14,80,385 1,55,95,11,178 20,39,57,326 4,43,49,48,889
  2,52,28,31,821 2,17,04,54,298 14,00,73,776 4,83,33,59,895
Segmental operating profit 1,92,98,50,718 1,15,14,42,971 13,06,07,167 3,21,19,00,856
  1,28,57,44,734 1,16,44,24,684 8,53,28,451 2,53,54,97,869
Unallocable expenses       53,86,79,767
Operating profit       2,67,32,21,089
Other income net       25,81,45,382
Net profit before taxes       2,93,13,66,471
Taxes       19,32,34,404
Net profit after taxes       2,73,81,32,067

16.2.21. Provision for doubtful debts

Periodically, the Company evaluates all customer dues to the Company for collectability. The need for provisions is assessed based on various factors including collectability of specific dues, risk perceptions of the industry in which the customer operates, general economic factors, which could affect the customer’s ability to settle. The Company normally provides for debtor dues outstanding for 180 days or longer as at the Balance Sheet date. As at March 31, 2010 the company has provided for doubtful debts of Rs. Nil (Rs. 18,26,988 as at March31, 2009) on dues from certain customers although the outstanding amounts were less than 180 days old, since the amounts were considered doubtful of recovery.

16.2.22 Previous period figures have been regrouped/reclassified, wherever necessary, to conform to the current period's presentation.