Schedules to the financial statements for the year ended December 31, 2010
13.2.8. 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 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 financial services comprising manufacturing companies and the retail industries.
Income and direct expenses in relation to segments are 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. 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 rest of the world places except, those mentioned above and India.
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 :
in 
Manufacturing |
Telecom |
Retail |
Total |
|
Revenues |
26,71,15,301 |
20,40,433 |
6,72,58,983 |
33,64,14,717 |
Identifiable operating expenses |
20,32,33,239 |
6,83,273 |
4,39,80,377 |
24,78,96,889 |
Allocated expenses |
15,34,26,468 |
11,71,990 |
3,86,32,412 |
19,32,30,870 |
Segmental operating income |
(8,95,44,406) |
1,85,170 |
(1,53,53,806) |
(10,47,13,042) |
Unallocable expenses |
4,75,60,853 |
|||
Operating Income |
(15,22,73,895) |
|||
Other income, net |
(49,62,517) |
|||
Net profit / (loss) before taxes |
(15,72,36,412) |
|||
Net profit / ( loss) after taxes |
(15,72,36,412) |
Year ended December 31, 2009 :
in
Manufacturing |
Retail |
Total |
|
Revenues |
1,95,42,730 |
76,64,949 |
2,72,07,679 |
Identifiable operating expenses |
74,07,688 |
4,85,318 |
78,93,006 |
Allocated expenses |
4,03,93,156 |
1,58,42,795 |
5,62,35,950 |
Segmental operating income |
(2,82,58,114) |
(86,63,164) |
(3,69,21,278) |
Unallocable expenses |
83,17,392 |
||
Operating Income |
(4,52,38,669) |
||
Other income, net |
5,77,304 |
||
Net profit / (loss) before taxes |
(4,46,61,365) |
||
Net profit / ( loss) after taxes |
(4,46,61,365) |
Geographic Segments
Year ended December 31, 2010 :
in
North America |
Europe |
Rest of the world |
Total |
|
Revenues |
7,49,09,102 |
7,16,18,799 |
18,98,86,816 |
33,64,14,717 |
Identifiable operating expenses |
5,70,27,562 |
4,93,40,171 |
1,41529,156 |
24,78,96,889 |
Allocated expenses |
4,30,26,509 |
4,11,36,615 |
1,09,067,746 |
19,32,30,870 |
Segmental operating income |
(2,51,44,969) |
(1,88,57,987) |
(6,07,10,086) |
(10,47,13,042) |
Unallocable expenses |
4,75,60,853 |
|||
Operating Income |
(15,22,73,895) |
|||
Other income, net |
(49,62,517) |
|||
Net profit / (loss) before taxes |
(15,72,36,412) |
|||
Net profit / (loss) after taxes |
(15,72,36,412) |
Year ended December 31, 2009 :
in
North America |
Europe |
Total |
|
Revenues |
1,23,17,884 |
1,48,89,795 |
2,72,07,679 |
Identifiable operating expenses |
29,50,702 |
49,42,305 |
78,93,006 |
Allocated expenses |
2,54,60,015 |
3,07,75,935 |
5,62,35,950 |
Segmental operating income |
(1,60,92,833) |
(2,08,28,445) |
(3,69,21,278) |
Unallocable expenses |
83,17,392 |
||
Operating Income |
(4,52,38,669) |
||
Other income, net |
5,77,304 |
||
Net profit / (loss) before taxes |
(4,46,61,365) |
||
Net profit / (loss) after taxes |
(4,46,61,365) |