Income taxes (Tables)

12 Months Ended

Mar. 31, 2019

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

The Company’s income tax expense consists of the following:

Income taxes recognized directly in equity are as follows:


	Year ended March 31,
	2019			2018			2017
Current taxes:
Excess tax deductions related to share-based payments		(1,260	)		(685	)		(270	)

	$	(1,260	)	$	(685	)	$	(270	)

Deferred taxes:
Excess tax deductions related to share-based payments		46			(1,135	)		715

	$	46		$	(1,135	)	$	715

Total income tax recognized directly in equity	$	(1,214	)	$	(1,820	)	$	445

Income taxes recognized in other comprehensive income are as follows:


	Year ended March 31,
	2019			2018			2017
Current taxes	—			—			—
Deferred taxes:
Unrealized gain/(loss) on cash flow hedging derivatives		1,877			(9,409	)		6,921
Pension liability		(939	)		—			—

Total income tax recognized directly in other comprehensive income	$	938		$	(9,409	)	$	6,921

The reconciliation of estimated income tax to income tax expense:


	Year ended March 31,
	2019			2018			2017
Profit before income taxes	$	131,152		$	101,867		$	55,293
Income tax expense at tax rates applicable to individual entities		41,264			32,702			21,765
Effect of:
Items not deductible for tax		544			221			455
Exempt income		(16,024	)		(11,250	)		(7,706	)
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		138			324			(105	)
Recognition of unutilized tax benefits / Unrecognized losses utilized		(841	)		—			(1,220	)
Temporary difference that will reverse during tax holiday period		614			22			1,580
Change in tax rate and law		(401	)		(5,685	)		78
Provision for uncertain tax position		—			—			(1,499	)
State taxes		620			317			14
Due to acquisitions and merger		—			(1,686	)		—
One time tax on undistributed earnings		—			266			—
Others, net		(195	)		200			(167	)

Income tax expense	$	25,719		$	15,431		$	17,530

Deferred taxes for the year ended March 31, 2019 arising from temporary differences and unused tax losses can be summarized below:


	Opening Balance		Transition adjustments on adoption of IFRS 15 & IFRS 9			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	$	7,291	$	—		$	321		$	—		$	—		$	(539	)	$	7,073
Net operating loss carry forward		2,879		—			(1,559	)		—			—			(33	)		1,287
Accruals deductible on actual payment		7,424		(1,783	)		1,214			—			939			(436	)		7,358
Share-based compensation expense		12,770		—			1,980			(46	)		—			(584	)		14,120
Minimum alternate tax		420		—			153			—			—			(21	)		552
Others		328		3			174			—			—			(23	)		482

Total deferred tax assets	$	31,112	$	(1,780	)	$	2,283		$	(46	)	$	939		$	(1,636	)	$	30,872

Deferred tax liabilities:
Intangibles		12,662					(573	)		—			—			94			12,183
Unrealized gain/(loss) on cash flow hedging and investments		1,759		—			46			—			1,877			(143	)		3,539
Others		1,108		—			1,003			—			—			(27	)		2,084

Total deferred tax liabilities	$	15,529	$	—		$	476		$	—		$	1,877		$	(76	)	$	17,806

Net deferred tax assets/(liabilities)	$	15,583	$	(1,780	)	$	1,807		$	(46	)	$	(938	)	$	(1,560	)	$	13,066

Deferred taxes for the year ended March 31, 2018 arising from temporary differences and unused tax losses can be summarized below:


	Opening Balance			Additions due to acquisition			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	$	5,648		$	(11	)	$	1,623		$	—	$	—		$	31		$	7,291
Net operating loss carry forward		5,722			—			(2,950	)		—		—			107			2,879
Accruals deductible on actual payment		5,641			—			1,661			—		—			122			7,424
Share-based compensation expense		12,264			—			(702	)		1,135		—			73			12,770
Minimum alternate tax		167			—			257			—		—			(4	)		420
Others		975			—			(661	)		—		—			14			328

Total deferred tax assets	$	30,417		$	(11	)	$	(772	)	$	1,135	$			$	343		$	31,112

Deferred tax liabilities:
Intangibles		21,123			6			(8,555	)		—		—			88			12,662
Unrealized gain/(loss) on cash flow hedging and investments		12,294			—			(1,280	)		—		(9,409	)		154			1,759
Others		1,113									—		—			(5	)		1,108

Total deferred tax liabilities	$	34,530		$	6		$	(9,835	)	$	—	$	(9,409	)	$	237		$	15,529

Net deferred tax assets/(liabilities)	$	(4,113	)	$	(17	)	$	9,063		$	1,135	$	9,409		$	106		$	15,583

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