18.

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 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 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, 2011, 2012 and 2013.


	2011						2012						2013
	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		13,817,053		3,548,083		17,365,136		12,517,461		3,462,646		15,980,107		8,485,560		2,872,638		11,358,198
Fee based services		4,125,556		304,771		4,430,327		3,705,761		256,398		3,962,159		4,041,904		258,602		4,300,506

Total revenues		17,942,609		3,852,854		21,795,463		16,223,222		3,719,044		19,942,266		12,527,464		3,131,240		15,658,704

Cost of revenues (excluding depreciation and amortization)		8,299,834		2,496,145		10,795,979		8,241,612		2,532,509		10,774,121		7,470,935		2,480,949		9,951,884

Segment Results		9,642,775		1,356,709		10,999,484		7,981,610		1,186,535		9,168,145		5,056,529		650,291		5,706,820

Segment Assets		57,334,942		4,702,523		62,037,465		44,457,954		3,483,912		47,941,866		35,577,371		820,713		36,398,084

Capital expenditures		4,034,753		11,303		4,046,056		5,375,763		33,786		5,409,549		2,105,552		2,315		2,107,867
Depreciation/amortization		3,776,809		9,589		3,786,398		3,490,725		9,044		3,499,769		3,651,816		12,560		3,664,376

The following is a reconciliation of the segment results to (loss) income before income taxes of the Company for the years ended March 31, 2011, 2012 and 2013.


	2011			2012			2013
	US$			US$			US$

Segment result		10,999,484			9,168,145			5,706,820
Operating expenses (including depreciation and amortization)		(19,695,625	)		(20,005,598	)		(19,571,322	)
Other income, net		2,927,113			3,441,498			2,314,721

Net loss before income taxes and equity in net earnings (loss) of equity method investees		(5,769,028	)		(7,395,955	)		(11,549,781	)

The following is a reconciliation of the segment assets to the total assets as at March 31, 2012 and 2013.


	As at March 31,
	2012		2013
	US$		US$
India Online business		44,457,954		35,577,371
US Publishing business		3,483,912		820,713

Total segment assets		47,941,866		36,398,084
Investments in equity method investees		81,473		—
Investment, at cost		1,300,000		1,404,987
Promissory note		1,100,000		—
Rediff.com India Employee trust		44,880		45,931

Total assets		50,468,219		37,849,002

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

Revenues derived from customers are as follows:

Years ended March 31,

2011

2012

2013

US$

United States and Canada

3,628,056

3,382,387

3,030,249

India

17,615,686

16,078,008

12,241,845

Rest of the world

551,721

481,871

386,610

Total revenues

21,795,463

19,942,266

15,658,704

No single customer accounted for 10 percent or more of the total revenues for the years ended March 31, 2011, 2012 and 2013.

Long-lived assets by location are as follows:


	As of March 31,
	2012		2013
	US$		US$
United States and Canada		2,055,307		45,063
India		9,829,783		7,657,611

Total		11,885,090		7,702,674