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 Registrant

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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 Registrant
Item 2.03.  Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On June 7, 2017, 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 932,724,000 Indian rupees (approximately $13,982,000) and have an average settlement rate of 66.66 Indian rupees. The U.K. pound sterling contracts have an aggregate notional amount of approximately 354,087,000 Indian rupees (approximately £4,037,000) and have an average settlement rate of 87.31 Indian rupees. These contracts will expire at various dates during the 15 month period ending on September 28, 2018. The Company will be obligated to settle these contracts based upon the Reserve Bank of India published Indian rupee exchange rates. Based on the U.S. dollar to U.K. pound sterling spot rate on June 7, 2017 of $1.29, the blended weighted average Indian rupee rate associated with both the U.S. dollar and U.K. pound sterling contracts would be approximately 67.05 Indian rupees per U.S. dollar.

On June 9, 2017, the Company’s majority owned subsidiary, Polaris Consulting and Services Ltd, purchased multiple foreign currency forward contracts designed to hedge fluctuation in the Indian rupee against the U.S. dollar. The U.S dollar contracts have an aggregate notional amount of approximately 1,173,008,750 Indian rupees (approximately $17,500,000) and have an average settlement rate of 67.03 Indian rupees. These contracts will expire at various dates during the 15 month period ending on September 28, 2018.


About VIRTUSA CORPORATION (NASDAQ:VRTU)

Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.