Income taxes (Tables)

12 Months Ended

Mar. 31, 2018

The domestic and foreign source component of profit / (loss) before income taxes is as follows:

The Company’s provision for income taxes consists of the following:

Income taxes recognized directly in equity are as follows:


	Year ended March 31,
	2018			2017			2016
Current taxes:
Excess tax deductions related to share-based payments		(685	)		(270	)		(229	)

	$	(685	)	$	(270	)	$	(229	)

Deferred taxes:
Excess tax deductions related to share-based payments		(1,135	)		715			(688	)

	$	(1,135	)	$	715		$	(688	)

Total income tax recognized directly in equity	$	(1,820	)	$	445		$	(917	)

Income taxes recognized in other comprehensive income are as follows:


	Year ended March 31,
	2018			2017		2016
Current taxes		—			—		—
Deferred taxes:
Unrealized gain/(loss) on cash flow hedging derivatives		(9,409	)		6,921		(4,259	)

Total income tax recognized directly in other comprehensive income	$	(9,409	)	$	6,921	$	(4,259	)

The reconciliation of estimated income tax to provision for income taxes:


	Year ended March 31,
	2018			2017			2016
Profit before income taxes	$	101,867		$	55,293		$	81,060
Income tax expense at tax rates applicable to individual entities		32,702			21,765			28,067
Effect of:
Items not deductible for tax		221			455			771
Exempt income		(11,250	)		(7,706	)		(6,845	)
Non tax deductible goodwill impairment		—			4,335			—
(Gain)/Loss in respect of which deferred tax (liability)/asset not recognized due to uncertainty and ineligibility to carry forward		324			(105	)		259
Recognition of unutilized tax benefits / Unrecognized losses utilized		—			(1,220	)		(294	)
Temporary difference that will reverse during tax holiday period		22			1,580			30
Change in tax rate and law		(5,685	)		78			(152	)
Provision for uncertain tax position		—			(1,499	)		2
State taxes		317			14			12
Due to acquisitions and merger		(1,686	)		—			—
One time tax on undistributed earnings		266			—			—
Others, net		200			(167	)		(670	)

Provision for income taxes	$	15,431		$	17,530		$	21,180

Deferred taxes for the year ended March 31, 2017 arising from temporary differences and unused tax losses can be summarized below:


	Opening balance			Additions due to acquisition during the year			Recognized in statement of income			Recognized in equity			Recognized in/ Reclassified from other comprehensive income			Foreign currency translation			Closing balance
Deferred tax assets:
Property and equipment	$	5,512		$	(873	)	$	932		$	—		$	—		$	77		$	5,648
Net operating loss carry forward		3,684			—			2,026			—			—			12			5,722
Accruals deductible on actual payment		5,352			70			(1	)		—			—			220			5,641
Share-based compensation expense		11,008			—			1,781			(715	)		—			190			12,264
Minimum alternate tax		68			—			96			—			—			3			167
Others		362			—			679			—			—			(66	)		975

Total deferred tax assets	$	25,986		$	(803	)	$	5,513		$	(715	)	$	—		$	436		$	30,417

Deferred tax liabilities:
Intangibles		(712	)		24,577			(2,769	)		—			—			27			21,123
Unrealized gain/(loss) on cash flow hedging and investments		4,857			—			27			—			6,921			489			12,294
Others		1,108			—			—			—			—			5			1,113

Total deferred tax liabilities	$	5,253		$	24,577		$	(2,742	)	$	—		$	6,921		$	521		$	34,530

Net deferred tax assets/(liabilities)	$	20,733		$	(25,380	)	$	8,255		$	(715	)	$	(6,921	)	$	(85	)	$	(4,113	)

Deferred taxes for the year ended March 31, 2016 arising from temporary differences and unused tax losses can be summarized below:


	Opening balance		Additions due to acquisition during the year			Recognized in statement of income			Recognized in equity		Recognized in/ Reclassified from other comprehensive income			Foreign currency translation			Closing balance
Deferred tax assets:
Property and equipment	$	6,538	$	—		$	(724	)	$	—	$	—		$	(302	)	$	5,512
Net operating loss carry forward		4,304		—			(448	)		—		—			(172	)		3,684
Accruals deductible on actual payment		4,201		—			1,443			—		—			(292	)		5,352
Share-based compensation expense		6,110		—			4,480			688		—			(270	)		11,008
Minimum alternate tax		8,327		—			(7,941	)		—		—			(318	)		68
Others		1,444		—			(1,179	)		—		—			97			362

Total deferred tax assets	$	30,924	$	—		$	(4,369	)	$	688	$	—		$	(1,257	)	$	25,986

Deferred tax liabilities:
Intangibles		2,045		837			(3,477	)		—		—			(118	)		(712	)
Unrealized gain/(loss) on cash flow hedging and investments		9,821		—			(436	)		—		(4,259	)		(269	)		4,857
Others		—		—			1,108			—		—			—			1,108

Total deferred tax liabilities	$	11,866	$	837		$	(2,804	)	$	—	$	(4,259	)	$	(387	)	$	5,253

Net deferred tax assets/(liabilities)	$	19,058	$	(837	)	$	(1,565	)	$	688	$	4,259		$	(870	)	$	20,733

Deferred tax presented in the statement of financial position is as follows: