VIRTUSA CORPORATION (NASDAQ:VRTU) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On June5, 2018, Virtusa Corporation (the “Company”) purchased multiple foreign currency forward contracts designed to hedge fluctuation in the Indian rupee against the U.S. dollar and U.K. pound sterling. The U.S. dollar contracts have an aggregate notional amount of approximately 2,684,991,000 Indian rupees (approximately $38,303,540) and have an average settlement rate of69.80 Indian rupees. The U.K. pound sterling contracts have an aggregate notional amount of approximately 1,323,484,953 Indian rupees (approximately £13,887,624) and have an average settlement rate of 94.67 Indian rupees. These contracts will expire at various dates during the 18 months period ending on December31, 2019. The Company will be obligated to settle these contracts based upon the Reserve Bank of India’s published Indian rupee exchange rates. Based on the U.S. dollar to U.K. pound sterling spot rate on June5, 2018 of $1.33495, the blended weighted average Indian rupee rate associated with both the U.S. dollar and U.K. pound sterling contracts would be approximately 70.52 Indian rupees per U.S. dollar.