SEC Filings

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


Table of Contents

The average Indian rupee to US dollar exchange rate was approximately 64.46 per $1.00 in fiscal 2018, which represented an appreciation of the Indian rupee of 3.9% as compared to average exchange rate of 67.10 per $1.00 in fiscal 2017, which in turn represented a depreciation of the Indian rupee of 2.6% as compared with the average exchange rate of approximately 65.43 per $1.00 in fiscal 2016. The average pound sterling to US dollar exchange rate was approximately £0.75 per $1.00 in fiscal 2018, which represented an appreciation of the pound sterling of 1.4% as compared with the average exchange rate of approximately £0.77 per $1.00 in fiscal 2017, which in turn represented a depreciation of the pound sterling of 13.4% as compared with the average exchange rate of approximately £0.66 per $1.00 in fiscal 2016. The average Australian dollar to US dollar exchange rate was approximately A$1.29 per $1.00 in fiscal 2018, which represented an appreciation of the Australian dollar of 2.8% as compared with the average exchange rate of approximately A$1.33 per $1.00 in fiscal 2017, which in turn represented an appreciation of the Australian dollar of 2.1% as compared with the average exchange rate of approximately A$1.36 per $1.00 in fiscal 2016. The average South African rand to US dollar exchange rate was approximately R12.98 per $1.00 in fiscal 2018, which represented an appreciation of the South African rand of 7.8% as compared with the average exchange rate of approximately R14.07 per $1.00 in fiscal 2017, which in turn represented a depreciation of the South African rand of 2.3% as compared with the average exchange rate of approximately R13.75 per $1.00 in fiscal 2016.

The appreciation of the Indian rupee against the US dollar by 3.9% in fiscal 2018 as compared to the average exchange rate in fiscal 2017 had a negative impact on our expenses in fiscal 2018 while the depreciation of the India rupee against the US dollar by 2.6% in fiscal 2017 as compared to the average exchange rate in fiscal 2016 had a positive impact on our expenses in fiscal 2017. As a result, increases in our cost of revenue, and to a lesser extent, our general and administrative expenses were partially due to the impact of the appreciation of Indian rupee in fiscal 2018 whereas increases in these expenses were partially offset by the impact of the depreciation of Indian rupee in fiscal 2017. The appreciation of the South African rand in fiscal 2018 against the US dollar negatively impacted our results of operations in fiscal 2018 whereas the depreciation of the South African rand in fiscal 2017 against the US dollar and the appreciation of the Australian dollar in fiscal 2018 and 2017 positively impacted our results of operations in those years. The appreciation of the pound sterling in fiscal 2018 agaisnt the US dollar positively impacted our results of operations in 2018 and the depreciation of the pound sterling in fiscal 2017 against the US dollar negatively impacted our results of operations in that year. See “Part I — Item 11. Quantitative and Qualitative Disclosures About Market Risk — B. Risk Management Procedures — Components of Market Risk — Exchange Rate Risk.”

We have subsidiaries in several countries and hence, the functional currencies of these entities differ from our reporting currency, the US dollar. The financial statements of these entities are translated to the reporting currency as at the balance sheet date. Adjustments resulting from the translation of these financial statements from functional currency to reporting currency are accumulated and reported as other comprehensive income (loss), which is a separate component of equity and such exchange differences are recognized in the consolidated statement of income in the period in which such subsidiaries are disposed. Foreign currency transaction gains and losses are recorded as other income or expense.

 

98