17.

Segments

The chief operating decision maker’s (Rediff’s Chairman and Managing Director) allocates resources to and assess the performance of the segments of the Company. The chief operating decision maker evaluates segment performance primarily by results of the segment before operating expenses.

The Company has two operating segments, namely, the India Online business and the U.S. Publishing business.

(i)

India Online business primarily includes revenues from advertising and fee-based services. Advertising includes revenues mainly from display and performance based advertising and to a lesser extent from sponsorships. Fee-based services include revenues from online shopping, subscription services and mobile value-added services.

(ii)

US Publishing business primarily includes revenues from advertisement on the Rediff India Abroad website and revenues from the print newspapers, India Abroad and India in New York.

Following are the segment results and segment assets for the years ended March 31, 2012, 2013 and 2014.

	2012						2013						2014
	India Online Business		US Publishing Business		Total		India Online Business		US Publishing Business		Total		India Online Business		US Publishing Business		Total
	US$		US$		US$		US$		US$		US$		US$		US$		US$
Revenues from external customers:
Advertising		12,517,461		3,462,646		15,980,107		8,485,560		2,872,638		11,358,198		8,161,964		2,534,345		10,696,309
Fee based services		3,705,761		256,398		3,962,159		4,041,904		258,602		4,300,506		5,206,078		218,410		5,424,488
Total revenues		16,223,222		3,719,044		19,942,266		12,527,464		3,131,240		15,658,704		13,368,042		2,752,755		16,120,797

Cost of revenues (excluding depreciation and amortization)		8,241,612		2,532,509		10,774,121		7,470,935		2,480,949		9,951,884		8,330,948		2,082,116		10,413,064
Segment Results		7,981,610		1,186,535		9,168,145		5,056,529		650,291		5,706,820		5,037,094		670,639		5,707,733
Segment Assets		44,457,954		3,483,912		47,941,866		35,577,371		820,713		36,398,084		24,960,743		2,447,659		27,408,402

Capital expenditure		5,375,763		33,786		5,409,549		2,105,552		2,315		2,107,867		1,469,037		6,325		1,475,362
Depreciation/amortization		3,490,725		9,044		3,499,769		3,651,816		12,560		3,664,376		3,054,173		6,096		3,060,269

The following is a reconciliation of the segment results to (loss) income before income taxes of the Company for the years ended March 31, 2012, 2013 and 2014.

	2012		2013		2014
	US$		US$		US$

Segment result		9,168,145		5,706,820		5,707,733
Operating expenses (including depreciation and amortization)		(20,005,598)		(19,571,322)		(18,048,045)
Other income, net		3,441,498		2,314,721		4,716,132
Net loss before income taxes and equity in net earnings (loss) of equity method investees		(7,395,955)		(11,549,781)		(7,624,180)

The following is a reconciliation of the segment assets to the total assets as at March 31, 2013 and 2014.

	As at March 31,
	2013		2014
	US$		US$
India Online business		35,577,371		24,960,743
US Publishing business		820,713		2,447,659
Total segment assets		36,398,084		27,408,402
Investment, at cost		1,404,987		—
Rediff.com India Employee trust		45,931		45,137
Total assets		37,849,002		27,453,539

Revenues are attributed to individual countries according to the location of the customers.

Revenues derived from external customers are as follows:

	Years ended March 31,
	2012		2013		2014
	US$		US$		US$
United States and Canada		3,382,387		3,030,249		3,314,354
India		16,078,008		12,241,845		12,176,561
Rest of the world		481,871		386,610		629,882
Total revenues		19,942,266		15,658,704		16,120,797

No single customer accounted for 10 percent or more of the total revenues for the years ended March 31, 2012, 2013 and 2014.

Long-lived assets by location are as follows:

	As of March 31,
	2013		2014
	US$		US$
United States and Canada		45,063		5,912
India		7,657,611		3,565,310
Total		7,702,674		3,571,222