SEC Filings

20-F
WNS (HOLDINGS) LTD filed this Form 20-F on 05/16/2018
Entire Document
 


Table of Contents

WNS (HOLDINGS) LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except share and per share data)

 

The assets and liabilities measured at fair value on a recurring basis as at March 31, 2017 are as follows:-

 

            Fair value measurement at reporting date using  

Description

   March 31,
2017
     Quoted
prices in
active
markets
for identical
assets
(Level 1)
     Significant
other
observable
inputs
(Level 2)
     Significant
unobservable
inputs
(Level 3)
 

Assets

           

Financial assets at FVTPL

           

Foreign exchange contracts

   $ 5,041      $ —        $ 5,041      $ —    

Investment in FMPs

     96        96        —          —    

Financial assets at fair value through other comprehensive income

           

Foreign exchange contracts

     36,733        —          36,733        —    

Interest rate swaps

     208        —          208        —    

Investments in marketable securities and mutual funds

     87,652        87,223        429        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 129,730      $ 87,319      $ 42,411      $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities

           

Financial liabilities at FVTPL

           

Foreign exchange contracts

   $ 26      $ —        $ 26      $ —    

Contingent consideration

     19,678        —          —          19,678  

Financial liabilities at fair value through other comprehensive income

           

Foreign exchange contracts

     4,136        —          4,136        —    

Interest rate swaps

     621        —          621        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 24,461      $ —        $ 4,783      $ 19,678  
  

 

 

    

 

 

    

 

 

    

 

 

 

Description of significant unobservable inputs to Level 3 valuation

The fair value of the contingent consideration liability was estimated using a probability weighted method and achievement of revenue target with a discount rate of 2.5%. One percentage point change in the unobservable inputs used in fair valuation of the contingent consideration does not have a significant impact on its value.

The fair value is estimated using discounted cash flow approach which involves assumptions and judgments regarding risk characteristics of the instruments, discount rates, future cash flows, foreign exchange spot, forward premium rates and market rates of interest.

The movement in contingent consideration categorized under Level 3 fair value measurement is given below:

 

     For the year ended  
     March 31,
2018
     March 31,
2017
 

Balance at the beginning of the year

   $ 19,678      $ —    

Additions

     —          19,934

Payouts

     (7,000      —    

Gain recognized in the consolidated statement of income

     (1,553      (279

Finance expense recognized in the consolidated statement of income

     263        23  
  

 

 

    

 

 

 

Balance at the end of the year

     11,388        19,678  
  

 

 

    

 

 

 

During the years ended March 31, 2018 and 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements.

Fair value on a non-recurring basis as at March 31, 2017

The non-recurring fair value measurement for the Auto Claim BPM CGU of $38,492 (before cost of disposal of $656) has been categorized as Level 3 fair value based on the inputs to the valuation technique used (Refer Note 9).

 

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