SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 11/05/2018
Entire Document
 


Table of Contents

WNS (HOLDINGS) LIMITED

NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

 

Uncertain tax positions are reflected at the amount likely to be paid to the taxation authorities. A liability is recognized in connection with each item that is not probable of being sustained on examination by taxing authority. The liability is measured using single best estimate of the most likely outcome for each position taken in the tax return. Thus, the provision would be the aggregate liability in connection with all uncertain tax positions. As at September 30, 2018, the Company has provided a tax reserve of $11,123 primarily on account of the Indian tax authorities’ denying the set off of brought forward business losses and unabsorbed depreciation.

As at September 30, 2018, corporate tax returns for years ended March 31, 2015 and onward remain subject to examination by tax authorities in India.

Based on the facts of these cases, the nature of the tax authorities’ disallowances and the orders from appellate authorities deciding similar issues in favor of the Company in respect of assessment orders for earlier fiscal years and after consultation with the Company’s external tax advisors, the Company believe these orders are unlikely to be sustained at the higher appellate authorities. The Company has deposited $12,063 of the disputed amounts with the tax authorities and may be required to deposit the remaining portion of the disputed amounts with the tax authorities pending final resolution of the respective matters.

Others

On March 21, 2009, the Company received an assessment order from the Indian service tax authority, demanding payment of $4,803 of service tax and related penalty for the period from March 1, 2003 to January 31, 2005. The assessment order alleges that service tax is payable in India on BPM services provided by the Company to clients based abroad as the export proceeds are repatriated outside India by the Company. In response to the appeal filed by the Company with appellate tribunal against the assessment order in April 2009, the appellate tribunal has remanded the matter back to lower tax authorities to be adjudicated afresh. After consultation with Indian tax advisors, the Company believes this order of assessment is more likely than not to be upheld in favor of the Company. The Company intends to continue to vigorously dispute the assessment.

 

25.

Earnings per share

The following table sets forth the computation of basic and diluted earnings per share:

 

     Three months ended September 30,      Six months ended September 30,  
     2018      2017      2018      2017  

Numerator:

           

Profit after tax

   $ 24,794      $ 18,926      $ 47,178      $ 35,622  

Denominator:

           

Basic weighted average ordinary shares outstanding

     50,081,093        50,665,150        50,298,819        50,476,529  

Dilutive impact of equivalent share-based options and RSUs

     1,776,369        1,912,321        2,010,454        2,262,359  

Diluted weighted average ordinary shares outstanding

     51,857,462        52,577,471        52,309,273        52,738,888  

The computation of earnings per ordinary share (“EPS”) was determined by dividing profit after tax by the weighted average ordinary shares outstanding during the respective periods.

The Company excluded from the calculation of diluted EPS options and RSUs to purchase 38,150 and 30,850 shares for the three and six months ended September 30, 2018 and 2017, respectively, because their effect would be anti-dilutive.

 

43