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Income taxes (Tables)
 12 Months Ended
Mar. 31, 2020
Text block [abstract]  
Summary of Allocation of Income Tax Expense to Other Comprehensive Income
Income tax expense has been allocated as follows:
 
 
  
Year ended March 31,
 
 
  
2018
 
  
2019
 
  
2020
 
Income tax expense as per the consolidated statement of income
  
₹
22,390
 
  
₹
25,242
 
  
₹
24,799
 
Income tax included in other comprehensive income on:
  
   
  
   
  
   
Unrealized losses on investment securities
  
 
(644
) 
  
 
(65
) 
  
 
(230
) 
Gains/(losses) on cash flow hedging derivatives
  
 
(1,448
) 
  
 
633
 
  
 
(1,165
) 
Defined benefit plan actuarial gains/(losses)
  
 
255
 
  
 
47
 
  
 
(196
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
₹
20,553
 
  
₹
25,857
 
  
₹
23,208
 
 
  
 
 
 
  
 
 
 
  
 
 
Summary of Components of Income Tax Expense
Income tax expense consists of the following:
 
 
  
Year ended March 31,
 
 
  
2018
 
  
2019
 
  
2020
 
Current taxes
  
   
  
   
  
   
Domestic
  
₹
18,500
 
  
₹
17,987
 
  
₹
18,437
 
Foreign
  
 
7,834
 
  
 
5,663
 
  
 
5,887
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
26,334
 
  
 
23,650
 
  
 
24,324
 
Deferred taxes
  
   
  
   
  
   
Domestic
  
 
3
 
  
 
(180
) 
  
 
1,624
 
Foreign
  
 
(3,947
) 
  
 
1,772
 
  
 
(1,149
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
(3,944
) 
  
 
1,592
 
  
 
475
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
₹
22,390
 
  
₹
25,242
 
  
₹
24,799
 
 
  
 
 
 
  
 
 
 
  
 
 
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,
 
 
  
2018
 
 
2019
 
 
2020
 
Profit before taxes
  
₹
102,474
 
 
₹
115,415
 
 
₹
122,512
 
Enacted income tax rate in India
  
 
34.61
% 
 
 
34.94
% 
 
 
34.94
% 
 
  
 
 
 
 
 
 
 
 
 
 
 
Computed expected tax expense
  
 
35,466
 
 
 
40,326
 
 
 
42,
806
 
Effect of:
  
   
 
   
 
   
Income exempt from tax
  
 
(12,878
) 
 
 
(18,469
) 
 
 
(12,930
) 
Basis differences that will reverse during a tax holiday period
  
 
167
 
 
 
(796
) 
 
 
480
 
Income taxed at higher/ (lower) rates
  
 
(111
) 
 
 
(1,002
) 
 
 
(3,122
) 
Reversal of deferred tax for past years due to rate reduction *
  
 
(1,563
) 
 
 
—  
 
 
 
—  
 
Taxes related to prior years
  
 
(380
) 
 
 
(2,267
) 
 
 
(116
) 
Changes in unrecognized deferred tax assets
  
 
239
 
 
 
3,972
 
 
 
(3,898
) 
Expenses disallowed for tax purpose
  
 
1,431
 
 
 
3,503
 
 
 
1,785
 
Others, net
  
 
19
 
 
 
(25
) 
 
 
(2
06
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
  
₹
22,390
 
 
₹
25,242
 
 
₹
24,799
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Effective income tax rate
  
 
21.85
% 
 
 
21.87
% 
 
 
20.24
% 
 
 
*
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,
 
 
  
2019
 
  
2020
 
Carry forward losses *
  
₹
3,149
 
  
₹
2,044
 
Trade payables, accrued expenses and other liabilities
  
 
3,713
 
  
 
4,994
 
Allowances for lifetime expected credit loss
  
 
4,521
 
  
 
3,921
 
Minimum alternate tax
  
 
—  
 
  
 
3,425
 
Cash flow hedges
  
 
—  
 
  
 
561
 
Others
  
 
318
 
  
 
—  
 
 
  
 
 
 
  
 
 
 
 
  
 
11,701
 
  
 
14,945
 
 
  
 
 
 
  
 
 
 
Property, plant and equipment
  
 
(1,840
) 
  
 
(686
) 
Amortizable goodwill
  
 
(1,899
) 
  
 
(2,166
) 
Intangible assets
  
 
(2,295
) 
  
 
(1,541
) 
Interest income and fair value movement of investments
  
 
(1,455
) 
  
 
(626
) 
Cash flow hedges
  
 
(604
) 
  
 
—  
 
Contract liabilities
  
 
(289
) 
  
 
(11
) 
SEZ
Re-investment
Reserve
  
 
(1,132
) 
  
 
(6,614
) 
Others
  
 
—  
 
  
 
(121
) 
 
  
 
 
 
  
 
 
 
 
  
 
(9,514
) 
  
 
(11,765
) 
 
  
 
 
 
  
 
 
 
Net deferred tax assets
  
₹
2,187
 
  
₹
3,180
 
Amounts presented in consolidated statement of financial position:
  
   
  
   
Deferred tax assets
  
₹
5,604
 
  
₹
6,005
 
Deferred tax liabilities
  
₹
(3,417
) 
  
₹
(2,825
) 
 
*  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, 2018                            
  
As at April 1,

2017
 
 
Credit/

(charge) in

the

consolidated

statement of

income
 
 
Credit/ (charge)

in 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 income 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 other
comprehensive
income *
 
 
Others (Note
36)
 
  
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 income and fair value movement of investments
  
 
(1,712
) 
 
 
186
 
 
 
71
 
 
 
—  
 
  
 
(1,455
) 
Cash flow hedges
  
 
29
 
 
 
—  
 
 
 
(633
) 
 
 
—  
 
  
 
(604
) 
Contract liabilities
  
 
(273
) 
 
 
(1
) 
 
 
(15
) 
 
 
—  
 
  
 
(289
) 
SEZ
Re-investment
Reserve
  
 
—  
 
 
 
(1,132
) 
 
 
—  
 
 
 
—  
 
  
 
(1,132
) 
Others
  
 
(403
) 
 
 
693
 
 
 
27
 
 
 
1
 
  
 
318
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Total
  
₹
3,849
 
 
₹
(1,592
) 
 
₹
(616
) 
 
₹
546
 
  
₹
2,187
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Movement during the year ended
March 31, 2020                            
  
As at April 1,
2019
 
 
Credit/ (charge)
in the
consolidated
statement of
income
 
 
Credit/ (charge)
in other
comprehensive
income *
 
 
On account
of business
combination
 
 
As at March 31,
2020
 
Carry forward losses
  
₹
3,149
 
 
₹
(1,287
) 
 
₹
182
 
 
₹
—  
 
 
₹
2,044
 
Trade payables, accrued expenses and other liabilities
  
 
3,713
 
 
 
1,033
 
 
 
248
 
 
 
—  
 
 
 
4,994
 
Allowances for lifetime expected credit loss
  
 
4,521
 
 
 
(591
) 
 
 
(9
) 
 
 
—  
 
 
 
3,921
 
Minimum alternate tax
  
 
—  
 
 
 
3,425
 
 
 
—  
 
 
 
—  
 
 
 
3,425
 
Property, plant and equipment
  
 
(1,840
) 
 
 
1,150
 
 
 
4
 
 
 
—  
 
 
 
(686
) 
Amortizable goodwill
  
 
(1,899
) 
 
 
(92
) 
 
 
(175
) 
 
 
—  
 
 
 
(2,166
) 
Intangible assets
  
 
(2,295
) 
 
 
1,021
 
 
 
(90
) 
 
 
(177
) 
 
 
(1,541
) 
Interest income and fair value movement of investments
  
 
(1,455
) 
 
 
599
 
 
 
230
 
 
 
—  
 
 
 
(626
) 
Cash flow hedges
  
 
(604
) 
 
 
—  
 
 
 
1,165
 
 
 
—  
 
 
 
561
 
Contract liabilities
  
 
(289
) 
 
 
285
 
 
 
(7
) 
 
 
—  
 
 
 
(11
) 
SEZ
Re-investment
Reserve
  
 
(1,132
) 
 
 
(5,482
) 
 
 
—  
 
 
 
—  
 
 
 
(6,614
) 
Others
  
 
318
 
 
 
(536
) 
 
 
97
 
 
 
—  
 
 
 
(121
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
  
₹
2,187
 
 
₹
(475
) 
 
₹
1,645
 
 
₹
(177
) 
 
₹
3,180
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes impact of foreign currency translation.