Schedules to the financial statements

16.2.11. 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. Accordingly, revenues represented along type of service 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

The only segment by service type is consulting services. Hence the Company does not have a primary classification of segments.

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. North America comprises the United States of America, Canada and Mexico and Rest of the World comprising all other 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

Geographic segments

Year ended March 31, 2011 and period from August 19, 2009 to March 31, 2010 :

Particulars	North America	India	ROW	Total
Revenues	20,60,88,041	5,69,12,930	1,65,51,906	27,95,52,878
	9,05,77,956	22,65,355	–	9,28,43,311

16.2.12. Gratuity Plan

The following table set out the status of the Gratuity Plan as required under AS 15.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets :

Particulars	As at March 31,
Particulars	2011	2010
Obligations at the beginning of the year	1,78,56,342	–
Transfer of obligation ⁽¹⁾	–	1,57,40,981
Service cost	1,15,92,710	15,40,325
Interest cost	11,78,178	6,15,472
Actuarial (gain) / loss	11,16,674	(40,436)
Benefits paid	(62,47,689)	–
Amendment in benefit plans	–	–
Obligations at the end of the year	2,54,96,215	1,78,56,342
Defined benefit obligation liability as at the Balance Sheet is fully funded by the Company
Change in plan assets
Plan assets at the beginning of the year, at fair value	21,29,344	–
Expected return on plan assets	5,36,267	19,337
Actuarial gain (loss)	(78,306)	537
Contributions	1,34,47,689	21,09,469
Benefits paid	(62,47,689)	–
Plan assets at the end of the year, at fair value	97,87,305	21,29,343
Reconciliation of present value of the obligation and the fair value of the plan assets :
Fair value of plan assets at the end of the year	97,87,305	21,29,343
Reimbursement (obligation) / asset ⁽¹⁾	1,57,40,981	1,57,40,981
Present value of the defined benefit obligations at the end of the year	2,54,96,215	1,78,56,342
Asset recognized in the Balance Sheet	32,071	13,982
Assumptions
Interest rate	7.91%	7.82%
Estimated rate of return on plan assets	7.91%	9.00%
Weighted average expected rate of salary increase	9.36%	7.27%

Particulars	For the year ended March 31 2011	For the period from August 19 2009 to March 31 2010
Gratuity cost for the year
Service cost	1,15,92,710	15,40,325
Interest cost	11,78,178	6,15,472
Expected return on plan assets	(5,36,267)	(19,338)
Actuarial (gain) / loss	11,94,980	(40,973)
Plan amendment amortization		–
Net gratuity cost	1,34,29,601	20,95,486
Actual return on plan assets	4,57,961	19,875

Notes :

⁽¹⁾

During the previous year, a reimbursement asset of

1,57,40,981 was transferred from Infosys Technologies Limited towards settlement of gratuity liability of the Company.

Gratuity cost, as disclosed above, is included under salaries and bonus which is segregated between software development expenses, and general and administration expenses on the basis of number of employees.

As of March 31, 2011, the plan assets have been primarily invested in government securities. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

The Company expects to contribute approximately 1,50,00,000 to the gratuity trust for fiscal 2012.

16.2.12.a. Provident Fund

The Company contributed 95,92,533 and 39,58,869 during the year ended March 31, 2011 and period ended March 31, 2010, respectively.

16.2.12.b. Superannuation

The Company contributed 72,88,732 and 35,13,690 to the Superannuation Trust during the year ended March 31, 2011 and period ended March 31, 2010, respectively.

16.2.13. Dues to micro and small enterprises

The company has no dues to micro and small enterprises during the year ended March 31, 2011 and March 31, 2010 and as at March 31, 2011 and March 31, 2010.

16.2.14. Unhedged foreign currency exposure

As of March 31, 2011 and March 31, 2010, the company’s net foreign currency exposures that are not hedged by a derivative instrument or otherwise is 2,26,65,831 and 71,83,603 respectively.

16.2.15. Previous year figures

The financial statements of the previous year is prepared for the period from August 19, 2009 (the date of incorporation) to March 31, 2010 (‘the period’). The amounts are therefore not comparable with the current year financials. Previous period figures have been regrouped/reclassified, wherever necessary, to conform to the current year’s presentation.