Income Taxes

9 Months Ended

12 Months Ended

Dec. 31, 2023

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

25.Income taxes

The Company’s net loss before provision for income taxes for the three months and nine months periods ended December 31, 2023 and December 31, 2022 was as follows:

Particulars	For the three months ended December 31, 2023			For the three months ended December 31, 2022			For the nine months ended December 31, 2023			For the nine months ended December 31, 2022
Domestic		(28,679,087	)		2,796,117			(61,637,236	)		(5,806,071	)
Foreign		(2,058,059	)		(2,450,329	)		(4,254,813	)		(3,932,603	)
Total		(30,737,146	)		345,788			(65,892,049	)		(9,738,674	)

The components of the provision for income taxes for the three months and nine months periods ended December 31, 2023 and December 31, 2022 were as follows:

Particulars	For the three months ended December 31, 2023			For the three months ended December 31, 2022			For the nine months ended December 31, 2023			For the nine months ended December 31, 2022
Current:
Domestic		—			—			—			—
Foreign		(27,700	)		17,214			44,377			22,115
		(27,700	)		17,214			44,377			22,115
Deferred:
Domestic		—			—			—			—
Foreign		(99,032	)		(65,933	)		(137,759	)		(68,826	)
		(99,032	)		(65,933	)		(137,759	)		(68,826	)
Total provision for income taxes		(126,732	)		(48,719	)		(93,382	)		(46,711	)

The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the three months and nine months periods ended December 31, 2023 and December 31, 2022:

Particulars	For the three months ended December 31, 2023			For the three months ended December 31, 2022			For the nine months ended December 31, 2023			For the nine months ended December 31, 2022
Federal statutory income tax rate		21.00	%		21.00	%		21.00	%		21.00	%
Non deductible expenses		0.03	%		26.80	%		4.98	%		(2.93	)%
Valuation allowance		(20.51	)%		0.82	%		(25.73	)%		(19.41	)%
Foreign rate differential		(0.16	)%		(27.81	)%		(0.17	)%		1.64	%
Share warrants		0.00	%		2.01	%		0.00	%		(0.07	)%
Other		0.05	%		(36.91	)%		0.06	%		0.25	%
Total provision for income taxes		0.41	%		(14.09	)%		0.14	%		0.48	%

The components of the Company’s net deferred tax assets as of the nine months period ended December 31, 2023 and year ended March 31, 2023 were as follows:

Particulars	As of December 31, 2023			As of March 31, 2023
Deferred tax assets:
Net operating loss carry forwards		25,134,198			8,480,316
Unabsorbed depreciation carry forwards		107,160			54,438
Retirement benefits		74,587			56,603
Depreciation and amortization		124,269			50,918
Others		241,303			5,965
Total deferred tax assets		25,681,517			8,648,240
Less: valuation allowance		(25,521,208	)		(8,565,895	)
Deferred tax assets, net of valuation allowance		160,309			82,345
Deferred tax liabilities:
Intangibles on account of business combination		(523,462	)		—
Net deferred tax assets/ (liabilities)		(363,153	)		82,345

Movement in net deferred tax assets:

	As of March 31, 2023			Recognized/ reversed through statements of operations			Impact of currency translation and acquisitions			As of December 31, 2023
Deferred tax assets:
Net operating loss carry forwards		8,480,316			16,653,882			—			25,134,198
Unabsorbed depreciation carry forwards		54,438			52,722			—			107,160
Retirement benefits		56,603			17,984			—			74,587
Depreciation and amortization		50,918			73,351			—			124,269
Fair value changes on convertible notes		—			—			—			—
Others		5,965			235,338			—			241,303
Less: valuation allowance		(8,565,895	)		(16,955,313	)		—			(25,521,208	)
Deferred tax liabilities:
Intangibles on account of business combination		—			(523,462	)		—			(523,462	)
Acquisitions		—			606,512			(606,512	)		—
Currency translation		—			(23,255	)		23,255			—
Net deferred tax assets/ (liabilities)		82,345			137,759			(583,257	)		(363,153	)

Particulars	As of March 31, 2022			Recognized/ reversed through statements of operations			Impact of currency translation and acquisitions		As of March 31, 2023
Deferred tax assets:
Net operating loss carry forwards		5,742,033			2,738,283			—		8,480,316
Unabsorbed depreciation carry forwards		9,174			45,264			—		54,438
Retirement benefits		53,656			2,947			—		56,603
Depreciation and amortization		25,232			25,686			—		50,918
Fair value changes on convertible notes		3,967			(3,967	)		—		—
Others		288,348			(282,383	)		—		5,965
Less: valuation allowance		(6,052,307	)		(2,513,588	)		—		(8,565,895	)
Deferred tax liabilities:
Intangibles on account of business combination		(117,729	)		117,729			—		—
Currency translation		—			(1,286	)		1,286		—
		(47,626	)		128,685			1,286		82,345

The Company regularly reviews its deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. The Company’s judgement regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Company’s income tax provision would increase or decrease in the period in which the assessment is changed. The Company’s valuation allowance increased by $16,955,313 during the nine months ended December 31, 2023 and $2,515,200 during the year ended March 31, 2023.

The Company has not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because the Company intends to permanently reinvest such earnings outside the U.S.

Net operating loss and credit carry forwards

As of December 31, 2023, the Company has U.S. federal net operating loss carry forwards of approximately $85,158,720, of which none are subject to limitation under Internal Revenue Code Section 382 (IRC Section 382). The federal net operating loss carry forwards that were generated prior to the 2018 tax year will begin to expire in 2030 if not utilized. For net operating loss carry forwards arising in tax years beginning after December 31, 2017, the tax act limits the Company’s ability to utilize carryforwards to 80% of taxable income, however, these operating losses may be carried forward indefinitely. The state (Delaware) net operating loss carry forwards will begin to expire in 2032 if not utilized. The Company has foreign tax credits which will expire at the end of 8 years from the end of the assessment year in which these tax credits were originated.

Utilization of the net operating loss carry forwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the inability to fully offset future annual taxable income and could result in the expiration of net operating loss carryforwards before utilization. The Company continually reviews the impact to net operating losses of any ownership changes.

Unrecognized tax benefits

The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company did not have any unrecognized tax benefits with a significant impact on its financial statements as of December 31, 2023 and 2022.

The Company’s major tax jurisdictions are India, the United Kingdom and the U.S. The U.S. federal, state and foreign jurisdictions have statutes of limitations that generally range from three to six years. Due to the Company’s net losses, substantially all of its federal and state income tax returns are subject to examination for federal and state purposes.

21.Income taxes

The Company’s net loss before provision for income taxes for the years ended March 31, 2023 and 2022 were as follows:

Particulars	As of March 31, 2023			As of March 31, 2022
Domestic		(8,917,510	)		(8,311,979	)
Foreign		(5,325,906	)		(1,469,642	)
Total		(14,243,416	)		(9,781,621	)

The components of the provision for income taxes for the years ended March 31, 2023 and 2022, were as follows:

Particulars	As of March 31, 2023			As of March 31, 2022
Current:
Domestic		—			—
Foreign		86,420			114,422
		86,420			114,422
Deferred:
Domestic		—			(32,778	)
Foreign		(128,685	)		(56,687	)
		(128,685	)		(89,465	)
Total provision for income taxes		(42,265	)		24,957

The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended March 31, 2023 and 2022:

Particulars	As of March 31, 2023			As of March 31, 2022
Federal statutory income tax rate		21.00	%		21.00	%
Non-deductible expenses		(4.08	)%		1.57	%
Valuation allowance		(17.65	)%		(21.04	)%
Foreign rate differential		1.24	%		1.20	%
Share warrants		(0.05	)%		(3.66	)%
Other		(0.17	)%		0.68	%
Total provision for income taxes		0.30	%		(0.26	)%

The components of the Company’s net deferred tax assets as of the years ended March 31, 2023 and 2022 were as follows:

Particulars	As of March 31, 2023			As of March 31, 2022
Deferred tax assets:
Net operating loss carryforwards		8,480,316			5,742,033
Unabsorbed depreciation carryforwards		54,438			9,174
Retirement benefits		56,603			53,656
Depreciation and amortization		50,918			25,232
Fair value changes on convertible notes		—			3,967
Others		5,965			288,348
Total deferred tax assets		8,648,240			6,122,410
Less: valuation allowance		(8,565,895	)		(6,052,307	)
Deferred tax assets, net of valuation allowance		82,345			70,103
Deferred tax liabilities:
Intangibles on account of business combination		—			(117,729	)
Net deferred tax assets/ (liabilities)		82,345			(47,626	)

Movement in net deferred tax assets:

	As of March 31, 2022			Recognised/ reversed through statements of operations			Impact of currency translation and acquisitions		As of March 31, 2023
Deferred tax assets:
Net operating loss carry forwards		5,742,033			2,738,283			—		8,480,316
Unabsorbed depreciation carry forwards		9,174			45,264			—		54,438
Retirement benefits		53,656			2,947			—		56,603
Depreciation and amortization		25,232			25,686			—		50,918
Fair value changes on convertible notes		3,967			(3,967	)		—		—
Others		288,348			(282,383	)		—		5,965
Less: valuation allowance		(6,052,307	)		(2,513,588	)		—		(8,565,895	)
Deferred tax liabilities:
Intangibles on account of business combination		(117,729	)		117,729			—		—
Currency translation		—			(1,286	)		1,286		—
Net deferred tax assets/ (liabilities)		(47,626	)		128,685			1,286		82,345

Particulars	As of March 31, 2021			Recognised/ reversed through statements of operations			Impact of currency translation and acquisitions			As of March 31, 2022
Deferred tax assets:
Net operating loss carry forwards		3,921,905			1,820,128			—			5,742,033
Unabsorbed depreciation carry forwards		8,399			775			—			9,174
Retirement benefits		27,311			26,344			—			53,656
Depreciation and amortization		15,919			9,314			—			25,232
Fair value changes on convertible notes		—			—			—			—
Fair value changes on convertible notes		—			3,967			—			3,967
Others		55,267			233,081			—			288,348
Less: valuation allowance		(3,994,222	)		(2,058,085	)		—			(6,052,307	)
Deferred tax liabilities:
Intangibles on account of business combination		(11,039	)		(106,690	)		—			(117,729	)
Gain on convertible notes		(32,778	)		32,778			—			—
Currency translation		—			(1,131	)		1,131			—
Acquisitions		—			128,985			(128,985	)		—
		(9,238	)		89,466			(127,854	)		(47,626	)

The Company regularly reviews its deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. The Company’s judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Company’s income tax provision would increase or decrease in the period in which the assessment is

changed. The Company’s valuation allowance increased by $2,515,200 and $2,058,085 during the years ended March 31, 2023 and 2022, respectively.

The Company has not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because the Company intends to permanently reinvest such earnings outside the U.S.

Net operating loss and credit carry forwards

As of March 31, 2023, the Company has U.S. federal net operating loss carry forwards of approximately $32,549,767, of which none are subject to limitation under Internal Revenue Code Section 382 (IRC Section 382). The federal net operating loss carry forwards that were generated prior to the 2018 tax year will begin to expire in 2030 if not utilized. For net operating loss carry forwards arising in tax years beginning after December 31, 2017, the tax act limits the Company’s ability to utilize carry forwards to 80% of taxable income, however, these operating losses may be carried forward indefinitely. The state net operating loss carry forwards will begin to expire in 2032 if not utilized. The Company has foreign tax credits which will expire at the end of 8 years from the end of the assessment year in which these tax credits were originate.

Utilization of the net operating loss carry forwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the inability to fully offset future annual taxable income and could result in the expiration of net operating loss carry forwards before utilization. The Company continually reviews the impact to net operating losses of any ownership changes.

Unrecognized tax benefits

The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company did not have any unrecognized tax benefits with a significant impact on its financial statements as of March 31, 2023 and 2022.

The Company’s major tax jurisdictions are India and the U.S. The U.S. federal, state and foreign jurisdictions have statutes of limitations that generally range from three to six years. Due to the Company’s net losses, substantially all of its federal and state income tax returns are subject to examination for federal and state purposes.