31.	Segment reporting

The operating segments of the Group are as under:

Telecom-centric services - Domestic data, international data wholesale voice and network managed services

Data Center-centric IT Services

Data Center services: Co-location services

Cloud and managed services: IT infra services, IT transformation services, remote and onsite infrastructure managed services and delivery platforms

Technology integration services: Data Center build, network integration, information security, end user computing and collaborative tools and solutions

Applications integration services: Application development and maintenance, application testing, mobility solutions, eLearning, portals, online assessment tools, process and automation.

The Chief Operating Decision Maker (“CODM”), i.e, The Board of Directors and the senior management, evaluate the Group’s performance and allocate resources to various strategic business units that are identified based on the products and services that they offer and on the basis of the market served. The measure of profit / loss reviewed by the CODM is “Earnings/loss before interest, taxes, depreciation and amortization” also referred to as “segment operating income / loss”. Revenue in relation to segments is categorized based on items that are individually identifiable to that segment.

Bandwidth costs, which form a significant part of the total expenses, is allocated to Network Services. Manpower costs of Technology resources rendering services to support Infrastructure operations, Managed services and Application services, are identified to respective operating segments specifically. The Group believes that the resulting allocations are reasonable.

Certain expenses, such as depreciation, technology infrastructure and administrative overheads, which form a significant component of total expenses, are not allocable to specific segments as the underlying services are used interchangeably. Management believes that it is not practical to provide segment disclosure of these expenses and, accordingly, they are separately disclosed as “unallocated” and adjusted only against the total income of the Group.

A significant part of the fixed assets used in the Group’s business are not identifiable to any of the reportable segments and can be used interchangeably between segments. Management believes that it is not feasible to provide segment disclosures relating to total assets and liabilities since meaningful segregation of available data is onerous.

The Group’s operating segment information for the years ended March 31, 2018, 2017 and 2016, are presented below:

Year ended March 31, 2018

			Data Center-centric IT services
	Telecom- centric Services (A)		Data Center Services (i)		Cloud and Managed Services (ii)		Technology Integration Services (iii)		Applications Integration Services (iv)		Total (B)= (i)+(ii)+(iii)+(iv)		Total (C) = (A)+(B)
Segment revenue		9,981,730		2,434,561		956,672		3,444,642		3,868,008		10,703,883		20,685,613
Allocated segment expenses		(7,653,359)		(1,753,440)		(1,052,720)		(2,933,507)		(3,288,028)		(9,027,695)		(16,681,054)
Segment operating income / (loss)		2,328,371		681,121		(96,048)		511,135		579,980		1,676,188		4,004,559
Unallocated expenses:
Selling, general and administrative expenses														(1,148,710)
Depreciation and amortization														(1,754,537)
Other income / (expense), net														189,738
Finance income														129,325
Finance expenses														(496,780)
Profit / (loss) before tax														923,595
Income tax (expense) / benefit														(194)
Profit / (loss) for the year														923,401

Year ended March 31, 2017

			Data Center-centric IT services *
	Telecom- centric Services (A)		Data Center Services (i)		Cloud and Managed Services (ii)		Technology Integration Services (iii)		Applications Integration Services (iv)		Total (B)= (i)+(ii)+(iii)+(iv)		Total (C) = (A)+(B)
Segment revenue		10,173,014		1,975,076		919,960		2,687,852		2,676,118		8,259,006		18,432,020
Allocated segment expenses		(8,050,025)		(1,489,135)		(824,979)		(2,306,170)		(2,186,512)		(6,806,796)		(14,856,821)
Segment operating income / (loss)		2,122,989		485,941		94,981		381,682		489,606		1,452,210		3,575,199
Unallocated expenses:
Selling, general and administrative expenses														(1,004,673)
Depreciation and amortization														(1,758,776)
Other income / (expense), net														145,872
Finance income														122,584
Finance expenses														(437,109)
Profit / (loss) before tax														643,097
Income tax (expense) / benefit														(698)
Profit / (loss) for the year														642,399

*The Chief Operating Decision Maker (CODM) has evaluated and grouped Data Center services, cloud and managed services, technology integration services and applications integration services into Data Center and IT services. There are no changes in the components of Telecom service segment. Accordingly, the segment information has been presented.

Year ended March 31, 2016

			Data Center-centric IT services
	Telecom Centric Services (A)		Data Center Services (i)		Cloud and Managed Services (ii)		Technology Integration Services* (iii)		Applications Integration Services* (iv)		Total (B)= (i)+(ii)+(iii)+(iv)		Total (C) = (A)+(B)
Segment revenue		9,549,289		1,522,944		941,204		1,705,702		1,315,757		5,485,607		15,034,896
Allocated segment expenses		(7,342,032)		(1,165,293)		(767,109)		(1,419,287)		(999,765)		(4,351,454)		(11,693,486)
Segment operating income / (loss)		2,207,257		357,651		174,095		286,415		315,992		1,134,153		3,341,410
Unallocated expenses:
Selling, general and administrative expenses														(889,665)
Depreciation and amortization														(1,598,037)
Other income / (expense), net														104,885
Finance income														45,437
Finance expenses														(565,712)
Profit / (loss) before tax														438,318
Income tax (expense) / benefit														135
Profit / (loss) for the year														438,453

Geographic segments

The Group has two geographic segments India and rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:

Description	India		Rest of the world		Total
Revenues
Year ended March 31, 2018		16,649,473		4,036,140		20,685,613
Year ended March 31, 2017		13,441,211		4,990,809		18,432,020
Year ended March 31, 2016		9,860,427		5,174,469		15,034,896

The Group does not disclose information relating to non-current assets located in India and rest of the world as the necessary information is not available and the cost to develop it would be excessive.

Revenue from one customer of the Group’s Data center-centric IT services is ₹ 2,261,482 (2016-17 ₹ 1,267,499) which is more than 10% of the Group’s total revenue.