Schedules to the financial statements for the year ended March 31, 2011

23.2.16. 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, 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 financial services comprising customers providing banking, finance and insurance services; manufacturing companies; companies in the telecommunications and the retail industries; and others such as utilities, transportation and logistics companies.

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.

Industry segments

Year ended March 31, 2011 and March 31, 2010 :

in crore

Particulars	Financial services	Manufacturing	Telecom	Retail	Others	Total
Revenues	9,293	4,686	3,134	3,757	4,515	25,385
	7,354	3,988	3,234	2,989	3,575	21,140
Identifiable operating expenses	4,210	2,107	1,471	1,643	2,115	11,546
	3,095	1,853	1,355	1,267	1,564	9,134
Allocated expenses	1,970	1,007	673	807	968	5,425
	1,615	877	712	657	785	4,646
Segmental operating income	3,113	1,572	990	1,307	1,432	8,414
	2,644	1,258	1,167	1,065	1,226	7,360
Unallocable expenses						740
						807
Operating income						7,674
						6,553
Other income, net						1,147
						910
Provision for investments						–
						(9)
Net profit before taxes and exceptional item						8,821
						7,472
Income taxes						2,378
						1,717
Net profit after taxes before exceptional item						6,443
						5,755
Exceptional item – Income on sale of investments, net of taxes						–
						48
Net profit after taxes and exceptional item						6,443
						5,803

Geographic segments

Year ended March 31, 2011 and March 31, 2010 :

in crore

Particulars	North America	Europe	India	Rest of the World	Total
Revenues	16,815	5,252	594	2,724	25,385
	14,170	4,633	269	2,068	21,140
Identifiable operating expenses	7,521	2,311	286	1,428	11,546
	6,028	1,963	77	1,066	9,134
Allocated expenses	3,610	1,120	122	573	5,425
	3,114	1,020	59	453	4,646
Segmental operating income	5,684	1,821	186	723	8,414
	5,028	1,650	133	549	7,360
Unallocable expenses					740
					807
Operating income					7,674
					6,553
Other income, net					1,147
					910
Provision for investments					–
					(9)
Net profit before taxes and exceptional item					8,821
					7,472
Income taxes					2,378
					1,717
Net profit after taxes before exceptional item					6,443
					5,755
Exceptional item – Income on sale of investments, net of taxes					–
					48
Net profit after taxes and exceptional item					6,443
					5,803

23.2.17. 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, 2011 the Company has provided for doubtful debts of 19 crore (21 crore as at March 31, 2010) on dues from certain customers although the outstanding amounts were less than 180 days old, since the amounts were considered doubtful of recovery. The Company pursues the recovery of the dues, in part or full.

23.2.18. Dividends remitted in foreign currencies

The Company remits the equivalent of the dividends payable to equity shareholders and holders of ADS. For ADS holders the dividend is remitted in Indian rupees to the depository bank, which is the registered shareholder on record for all owners of the Company’s ADSs. The depositary bank purchases the foreign currencies and remits dividends to the ADS holders.

The particulars of dividends remitted are as follows :

 

Particulars	Number of shares to which the dividends relate	Year ended March 31,
		2011	2010
Interim and 30th year special dividend for fiscal 2011	10,87,18,147	435	–
Interim dividend for fiscal 2010	10,70,15,201	–	107
Final dividend for fiscal 2010	10,68,22,614	160	–
Final dividend for fiscal 2009	10,73,97,313	–	145

23.2.19. Reconciliation of basic and diluted shares used in computing earnings per share

Particulars	Year ended March 31,
	2011	2010
Number of shares considered as basic weighted average shares outstanding	57,40,13,650	57,33,09,523
Add : Effect of dilutive issues of shares / stock options	1,88,308	6,40,108
Number of shares considered as weighted average shares and potential shares outstanding	57,42,01,958	57,39,49,631