Income Taxes

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

28. Income Taxes

The Company's net loss before provision for income taxes for the year ended March 31, 2024 and March 31, 2023 were as follows:

Particulars	For the year ended March 31, 2024			For the year ended March 31, 2023
Domestic		(93,127,552	)		(8,917,510	)
Foreign		(6,755,174	)		(5,325,906	)
Total		(99,882,726	)		(14,243,416	)

The components of the provision for income taxes for the year ended March 31, 2024 and March 31, 2023 were as follows:

Particulars	For the year ended March 31, 2024			For the year ended March 31, 2023
Current:
Domestic		—			—
Foreign		19,177			86,420
		19,177			86,420
Deferred:
Domestic		—			—
Foreign		(42,825	)		(128,685	)
		(42,825	)		(128,685	)
Total provision for income taxes		(23,648	)		(42,265	)

The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the year ended March 31, 2024 and March 31, 2023:

Particulars	For the year ended March 31, 2024			For the year ended March 31, 2023
Federal statutory income tax rate		21.00	%		21.00	%
Non deductible expenses		(3.70	%)		(4.08	%)
Valuation allowance		(17.45	%)		(17.65	%)
Foreign rate differential		0.21	%		1.24	%
Share warrants		0.00	%		(0.05	%)
Other		(0.04	%)		(0.17	%)
Total provision for income taxes		0.02	%		0.30	%

The components of the Company’s net deferred tax assets as of the year ended March 31, 2024 and year ended March 31, 2023 were as follows:

Particulars	As of March 31, 2024			As of March 31, 2023
Deferred tax assets:
Net operating loss carry forwards		25,515,511			8,480,316
Unabsorbed depreciation carry forwards		76,126			54,438
Retirement benefits		72,349			56,603
Depreciation and amortization		109,299			50,918
Others		244,136			5,965
Total deferred tax assets		26,017,421			8,648,240
Less: valuation allowance		(25,995,368	)		(8,565,895	)
Deferred tax assets, net of valuation allowance		22,053			82,345
Deferred tax liabilities:
Intangibles on account of business combination		(263,665	)		—
Net deferred tax assets/ (liabilities)		(241,612	)		82,345

Movement recognized in net deferred tax assets:

	As of March 31, 2023			Recognized/ reversed through statements of operations			Impact of currency translation and acquisitions			As of March 31, 2024
Deferred tax assets:
Net operating loss carry forwards		8,480,316			17,035,195			—			25,515,511
Unabsorbed depreciation carry forwards		54,438			21,688			—			76,126
Retirement benefits		56,603			15,746			—			72,349
Depreciation and amortization		50,918			58,381			—			109,299
Fair value changes on convertible notes		—			—			—			—
Others		5,965			238,171			—			244,136
Less: valuation allowance		(8,565,895	)		(17,429,473	)		—			(25,995,368	)
Deferred tax liabilities:
Intangibles on account of business combination		—			(263,665	)		—			(263,665	)
Acquisitions		—			608,233			(608,233	)		—
Deconsolidation		—			(193,121	)		193,121			—
Currency translation		—			(48,330	)		48,330			—
Net deferred tax assets/ (liabilities)		82,345			42,825			(366,782	)		(241,612	)

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 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 $17,429,473 during the Year ended March 31, 2024 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 March 31, 2024, the Company has U.S. federal net operating loss carry forwards of approximately $85,862,820 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 March 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 (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 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, 2024 and 2023.

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.