|WNS (HOLDINGS) LTD filed this Form 6-K on 08/06/2018|
General and Administrative Expenses
Our general and administrative expenses comprise primarily employee costs for senior management and other support personnel, travel expenses, legal and professional fees, share-based compensation expense and other general expenses not related to cost of revenue and selling and marketing.
Foreign Exchange Loss / (Gain), Net
Foreign exchange gains or losses, net include:
Amortization of Intangible Assets
Amortization of intangible assets is primarily associated with our acquisitions of Aviva Global in July 2008 (included up to November 2016), Fusion in June 2012, Value Edge and its subsidiaries in June 2016, Denali in January 2017, HealthHelp in March 2017 and the acquisition of a customer contract from Telkom SA SOC LIMITED (Telkom) in May 2015.
Other Income, Net
Other income, net comprises primarily interest income, income from investments, gain or loss on sale of assets and other miscellaneous expenses.
Finance Expense, Net
Finance expense, net primarily relates to interest charges payable on our term loans and short term borrowings, transaction costs and the gains/losses on settlement of related derivative instruments.
Our profit margin is largely a function of our asset utilization and the rates we are able to recover for our services. One of the most significant components of our asset utilization is our seat utilization rate which is the average number of work shifts per day, out of a maximum of three, for which we are able to utilize our seats. Generally, an improvement in seat utilization rate will improve our profitability unless there are other factors which increase our costs such as an increase in lease rentals, large ramp-ups to build new seats, and increases in costs related to repairs and renovations to our existing or used seats. In addition, an increase in seat utilization rate as a result of an increase in the volume of work will generally result in a lower cost per seat and a higher profit margin as the total fixed costs of our built up seats remain the same while each seat is generating more revenue.
The following table presents certain operating data as at the dates indicated:
Critical Accounting Policies
For a description of our critical accounting policies and estimates, refer to Part I Item 5. Operating and Financial Review and Prospects Critical Accounting Policies and Note 2 to the consolidated financial statements included in our Annual Report on Form 20-F for the fiscal year ended March 31, 2018, except as mentioned in Note 2 to the unaudited consolidated financial statements contained herein.