Income taxes (Tables)

12 Months Ended

Mar. 31, 2019

Summary of Allocation of Income Tax Expense to Other Comprehensive Income

Income tax expenses has been allocated as follows:


	Year ended March 31,
	2017		2018			2019
Income tax expense as per the consolidated statement of income	₹	25,213	₹	22,390		₹	25,242
Income tax included in Other comprehensive income on:
Unrealized gains/ (losses) on investment securities		594		(644	)		(65	)
Gains/(losses) on cash flow hedging derivatives		962		(1,448	)		633
Defined benefit plan actuarial gains/(losses)		43		255			47

	₹	26,812	₹	20,553		₹	25,857

Summary of Components of Income Tax Expense

Income tax expenses consists of the following:

	Year ended March 31,
	2017			2018			2019
Current taxes
Domestic	₹	21,089		₹	18,500		₹	17,987
Foreign		5,412			7,834			5,663

		26,501			26,334			23,650
Deferred taxes
Domestic		(63	)		3			(180	)
Foreign		(1,225	)		(3,947	)		1,772

		(1,288	)		(3,944	)		1,592

	₹	25,213		₹	22,390		₹	25,242

Summary of Reconciliation of Income Tax Expense

The reconciliation between the provision of income tax and amounts computed by applying the Indian statutory income tax rate to profit before taxes is as follows:


	Year ended March 31,
	2017			2018			2019
Profit before taxes	₹	110,356		₹	102,474		₹	115,415
Enacted income tax rate in India		34.61	%		34.61	%		34.94	%

Computed expected tax expense		38,194			35,466			40,326
Effect off:
Income exempt from tax		(12,684	)		(12,878	)		(18,469	)
Basis differences that will reverse during a tax holiday period		(274	)		167			(796	)
Income taxed at higher/ (lower) rates		(1,105	)		(111	)		(1,002	)
Reversal of deferred tax for past years due to rate reduction *		—			(1,563	)		—
Taxes related to prior years		(593	)		(380	)		(2,267	)
Changes in unrecognized deferred tax assets		40			239			3,972
Expenses disallowed for tax purpose		1,787			1,431			3,503
Others, net		(152	)		19			(25	)

Income tax expense	₹	25,213		₹	22,390		₹	25,242

Effective income tax rate		22.85	%		21.85	%		21.87	%

The “Tax Cuts and Jobs Act,” was signed into law on December 22, 2017 (‘US tax reforms’) which among other things, makes significant changes to the rules applicable to the taxation of corporations, such as changing the corporate tax rate from 35% to 21% rate effective January 1, 2018. For the year ended March 2018, the Company took a positive impact of ₹ 1,563 on account of re-statement of deferred tax items pursuant to US tax reforms.

Summary of Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:


	As at March 31,
	2018			2019
Carry forward losses *	₹	5,694		₹	3,149
Trade payables, accrued expenses and other liabilities		3,107			3,713
Allowances for lifetime expected credit loss		4,499			4,521
Minimum alternate tax		74			—
Cash flow hedges		29			—
Others		—			318

		13,403			11,701

Property, plant and equipment		(2,166	)		(1,840	)
Amortizable goodwill		(1,810	)		(1,899	)
Intangible assets		(3,190	)		(2,295	)
Interest on bonds and fair value movement of investments		(1,712	)		(1,455	)
Cash flow hedges		—			(604	)
Contract liabilities		(273	)		(289	)
Others		(403	)		(1,132	)

		(9,554	)		(9,514	)

Net deferred tax assets / (liabilities)	₹	3,849		₹	2,187
Amounts presented in statement of financial position:
Deferred tax assets	₹	6,908		₹	5,604
Deferred tax liabilities	₹	(3,059	)	₹	(3,417	)

*	Includes deferred tax asset recognized on carry forward losses pertaining to business combinations.

Movement in Deferred Tax Assets and Liabilities

Movement in deferred tax assets and liabilities


Movement during the year ended March 31, 2017	As at April 1, 2016			Credit/(charge) in the consolidated statement of income			Credit/(charge) in the Other comprehensive income			On account of business combination			As at March 31, 2017
Carry forward losses		5,250			825			(562	)		—			5,513
Trade payables, accrued expenses and other liabilities		3,270			(44	)		(75	)		—			3,151
Allowances for lifetime expected credit loss		3,039			(77	)		(7	)		—			2,955
Minimum alternate tax		1,457			63			—			—			1,520
Property, plant and equipment		(4,262	)		(249	)		358			—			(4,153	)
Amortizable goodwill		(3,963	)		(401	)		307			—			(4,057	)
Intangible assets		(4,665	)		2,639			279			(2,764	)		(4,511	)
Interest on bonds and fair value movement of investments		(814	)		(837	)		(594	)		—			(2,245	)
Cash flow hedges		(458	)		—			(961	)		—			(1,419	)
Contract liabilities		(4	)		(192	)		13			—			(183	)
Others		328			(439	)		24			—			(87	)

Total		(822	)		1,288			(1,218	)		(2,764	)		(3,516	)


Movement during the year ended March 31, 2018	As at April 1, 2017			Credit/ (charge) in the consolidated statement of income			Credit/(charge) in the Other comprehensive income			On account of business combination			Assets held for sale			As at March 31, 2018
Carry forward losses		5,513			133			48			—			—			5,694
Trade payables, accrued expenses and other liabilities		3,151			243			(246	)		—			(41	)		3,107
Allowances for lifetime expected credit loss		2,955			1,564			2			—			(22	)		4,499
Minimum alternate tax		1,520			(1,446	)		—			—			—			74
Property, plant and equipment		(4,153	)		912			(75	)		—			1,150			(2,166	)
Amortizable goodwill		(4,057	)		1,522			(53	)		—			778			(1,810	)
Intangible assets		(4,511	)		1,546			(112	)		(113	)		—			(3,190	)
Interest on bonds and fair value movement of investments		(2,245	)		(112	)		645			—			—			(1,712	)
Cash flow hedges		(1,419	)		—			1,448			—			—			29
Contract liabilities		(183	)		(35	)		(9	)		—			(46	)		(273	)
Others		(87	)		(383	)		(75	)		—			142			(403	)

Total		(3,516	)		3,944			1,573			(113	)		1,961			3,849


Movement during the year ended March 31, 2019	As at April 1, 2018			Credit/(charge) in the consolidated statement of income			Credit/(charge) in the Other comprehensive income			Others (Note 32)		As at March 31, 2019
Carry forward losses		5,694			(2,879	)		334			—		3,149
Trade payables, accrued expenses and other liabilities		3,107			295			(22	)		333		3,713
Allowances for lifetime expected credit loss		4,499			9			2			11		4,521
Minimum alternate tax		74			(74	)		—			—		—
Property, plant and equipment		(2,166	)		219			(94	)		201		(1,840	)
Amortizable goodwill		(1,810	)		16			(105	)		—		(1,899	)
Intangible assets		(3,190	)		1,076			(181	)		—		(2,295	)
Interest on bonds and fair value movement of investments		(1,712	)		186			71			—		(1,455	)
Cash flow hedges		29			—			(633	)		—		(604	)
Contract liabilities		(273	)		(1	)		(15	)		—		(289	)
Others		(403	)		(439	)		27			1		(814	)

Total		3,849			(1,592	)		(616	)		546		2,187