II. Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.
1 Employee benefit plans
2 a Defined contribution plans
The Company makes Provident Fund, Superannuation Fund and contributions Employee State Insurance as defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs,,170.26 lakhs (Year ended 31 March, 2016 Rs,902.21 lakhs) for Provident Fund contributions, Rs, 476.91 lakhs (Year ended 31 March, 2016 Rs, 434.13 lakhs) for Superannuation Fund contributions and Employee State Insurance Scheme Rs,4.77 lakhs (Year ended 31 March, 2016 Rs,3.62 lakhs) in the Statement of Profit and Loss. Company also had contributed towards Employee Insurance Schemes outside India amounting to Rs, 130.87 lakhs (Year ended 31st March. 2016 Rs,87.56 lakhs). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
3 b Defined benefit plans
The Company offers gratuity (included as part of Contribution to Provident and other funds in Note 20 Employee benefits expense) to its employees under defined benefit plans.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
4 Segment information
The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily System integration & support and Software development & services. Revenues and expenses directly attributable to segments are reported under each reportable segment.
All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallowable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are India, Europe, US, Japan and others.
Note: Figures in bracket with respect to statement of profit and loss items pertain to year ended 31st Mar 2016. Segment revenue in India comprises revenue from System Integration and Software development and services. Segment revenue outside India predominantly comprises revenue from software development and services. Segment assets include all assets relating to the segment and consist principally of fixed assets, receivables, inventory, other current and non-current assets. Assets located outside India primarily relate to trade receivables.
Considering probability of successful outcome of such development and the ability of these entities to commercialize the product being developed, as a matter of prudence the company has recorded these investments at Re.1/-. Any gain on such investment will be recognized on its disposal.
5. The aggregate amount of research and development expenditure recognized as an expense during the year is Rs, 1689.82 lakhs (Previous year Rs, 1556.00 lakhs )
6 The Board of Directors at its meeting held on April 27, 2017 have recommended a dividend of 160% (Rs, 16 per equity share of par value Rs,10/- each) which is subject to approval of shareholders. If approved, this would result in a cash outflow of approximately Rs,5,996.36 lakhs, inclusive of dividend distribution tax.
7. Previous year''''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''''s/ periods classification / disclosure.