Amended Annual Report for the year ended 31 December 2011 (17-A)

11111111111111111111I111111111I1111111111111111111111111I1111111111111I11111111111111
106062012001542
Barcode Page
SECURITIES AND EXCHANGE COMMISSION
SEC Building, EDSA, Greenhlls,Mandaluyong City, Metro Manila,Philippines
TeI:(632) 726-0931 to 39 Fax:(632) 725-5293 Email: mis@sec.gov.ph
The following document has been received:
Receiving Officer/Encoder : Dharril Curaiies
Receiving Branch : SEC Head Office
Receipt Date and lime: June 06,201204:39:18 PM
Received From : Head Office
Company Representative
Doc Source
Company Information
SEC Registration No.
Company Name
Industry Classification
Company Type
Document Information
Document ID
Document Type
Document Code
Period Covered
No. of Days Late
Department
Remarks
A200101631
I-REMIT INC.
Stock Corporation
106062012001542
17 -A (FORM 11-A:AANU)
17-A
December 31, 2011
o CFD
Amendment

Registrant I-REMIT, INC.
SEC Form 17-A filed on April 13, 2012
General Instruction: A comment of “Not Disclosed” or “Not complied with” or “Incomplete” is indicated herein to emphasize or
highlight the information not found in the report. If the required information is not applicable, please state/explain in a separate
sheet.
SUMMARY OF COMMENTS
Part I – BUSINESS AND GENERAL INFORMATION
(2) BUSINESS OF ISSUER
(a) Business of Issuer: This section shall describe in detail what
business the registrant does and proposes to do, including what
products or goods are or will be produced or services that are or will be
rendered. Briefly describe the business of registrant and its significant
subsidiaries and include, to the extent material to an understanding of
the registrant.
Status of any publicly-announced new product or service (e.g. whether
in the planning stage, whether prototypes exist), the degree to which
product design has progressed or whether further engineering is
necessary. Indicate if completion of development of the product would
require a material amount of the resources of the registrant and the
estimated amount;
ITEM 2. PROPERTIES
(Part I, Paragraph (B) of Annex “C”)
Give the location and describe the condition of the principal properties
(such as real estate, plant and equipment, mines, patents, etc.) that the
registrant and its subsidiaries own. Disclose any mortgage, lien or
encumbrance over the property and describe the limitations on
ownership or usage over the same. Indicate also what properties it
leases, the amount of lease payments, expiration dates and the terms
of renewal options. Indicate what properties the registrant intends to
acquire in the next twelve (12) months, the cost of such acquisitions,
the mode of acquisition (i.e. by purchase, lease or otherwise) and the
sources of financing it expects to use:
Page
No.
Part II – OPERATIONAL AND FINANCIAL INFORMATION
ITEM 6. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
(Part III, Paragraph (A) of ”Annex C, as amended”)
(vi) Any significant elements of income or loss that did not arise from
the registrant’s continuing operations;
(vii) The causes for any material change from period to period which
shall include vertical and horizontal analyses of any material item;
The term “material” in this section shall refer to changes or items
amounting to five percent (5%) of the relevant accounts or such lower
amount, which the registrant deems material on the basis of other
factors.
Page 1 of 3
13
30
Remarks
Incomplete. Comply
with the highlighted
portion.
Incomplete. Comply
with the highlighted
portion.
Disclose, if any
Disclose, if any
I-Remit’s Response
There are no publiclyannounced
new
products or services
which completion of
development would
require a material
amount of the
resources of I-Remit.
Please see page 13
of the Amended SEC
Form 17-A.
I-Remit included the
disclosure regarding
the purchase of
significant equipment
on page 53 of the
SEC Form 17-A as
originally submitted.
A similar disclosure
with respect to all
types of properties is
already included on
page 30 of the
Amended SEC Form
17-A.
A disclosure on
discontinued
operations similar to
Note 28 (pages 54
and 55) of the 2011
Consolidated
Financial Statements
is already included on
page 39 of the
Amended SEC Form
17-A.
Done. Please see
pages 38, 39 and 40.

INFORMATION ON INDEPENDENT ACCOUNTANT
EXTERNAL AUDIT FEES (MC No. 14 Series of 2004)
2. Other assurance and related services by the external auditor that
are reasonably related to the performance of the audit or review of the
registrant’s financial statements. The registrant shall describe the
nature of the services comprising the fees disclosed under this
category.
(b) Under the caption “Tax Fees”, the aggregate fees billed in each of
the last two (2) fiscal years for professional services rendered by the
external auditor for tax accounting, compliance, advice, planning and
any other form of tax services. Registrant shall describe the nature of
the services comprising the fees disclosed under this category.
(c) Under the caption “All Other Fees”, the aggregate fees billed in
each of the last two (2) fiscal years for products and services provided
by the external auditor, other than the services reported under items (a)
& (b) above. Registrant shall describe the nature of the services
comprising the fees disclosed under this category.
Part III – CONTROL AND COMPENSATION INFORMATION
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
(Part IV, Paragraph (D) of “Annex C, as amended”)
(1) In addition to the disclosures in the financial statements which are
required under SFAS/IAS No. 24 on the Related Party Disclosures,
registrant shall describe under this item the elements of the
transactions that are necessary for an understanding of the
transactions’ business purpose and economic substance, their effect on
the financial statements, and the special risks or contingencies arising
from these transactions. The Commission considers the discussion of
the following to be necessary.
(a) the business purpose of the arrangement;
(b) identification of the related parties transaction business with the
registrant and nature of the relationship;
(c) how transaction prices were determined by parties;
(d) if disclosures represent that transactions have been evaluated for
fairness, a description of how the evaluation was made ; and
(e) any ongoing contractual or other commitments as a result of the
arrangement.
Page 2 of 3
72
Disclose, if any
Discussion under this
item should be
correlated with the
Notes to the 2011
Consolidated
Financial Statements
The external auditor
did not render
professional services
for tax accounting,
compliance, advice,
planning and any
other form of tax
services. This
disclosure is already
included on page 54
of the Amended SEC
Form 17-A.
The external auditor
did not provide
products and services
other than the
services reported
under items (a) & (b).
This disclosure is
already included on
page 54 of the
Amended SEC Form
17-A. The
Corporation did not
pay any other fees
except those in
relation to the
services provided by
the external auditor.
Disclosures similar to
Note 24 (pages 48 to
50) of the 2011
Consolidated
Financial Statements
are already included
on pages 72 and 73
of the Amended SEC
Form 17-A.

(2) The disclosure shall also include information about parties that fall
outside the definition “related parties” under SFAS/IAS No. 24, but with
whom the registrant or its related parties have a relationship that
enables the parties to negotiate terms of material transactions that may
not be available from other, more clearly independent parties on an
arm’s length basis. For example, an entity may be established and
operated by individuals that were former senior management of, or
have some other current or former relationship with, a registrant. The
purpose of the entity may be to own assets used by the registrant or
provide financing or services to the registrant. Although former
management or persons with other relationships may not meet the
definition of a related party pursuant to SFAS/IAS No. 24, the former
management positions may result in negotiation of terms that are more
or less favorable that those available on an arm’s-length basis from
clearly independent third parties that are material to the registrant’s
financial position or financial performance.
In some cases, investors may be unable to understand the registrant’s
reported results of operations without clear explanation of these
arrangements and relationships. Items of similar nature may be
disclosed in aggregate except when separate disclosure is necessary
for an understanding of the effect of related party transaction on the
financial statements.
Page 3 of 3
Disclosures similar to
Note 24 (pages 48 to
50) of the 2011
Consolidated
Financial Statements
are already included
on pages 72 and 73
of the Amended SEC
Form 17-A.

COVER SHEET
A 2 0 0 1 0 1 6 3 1
SEC Registration Number
I - R E M I T , I N C . A N D S U B S I D I A R I E S
(Company’s Full Name)
2 6 / F D i s c o v e r y C e n t r e , 2 5 A D B A v e
n u e , O r t i g a s C e n t e r , P a s i g C i t y
(Business Address: No. Street City/Town/Province)
Mr. HARRIS EDSEL D. JACILDO (02) 706 – 9999 Local 100/105/109
(Contact Person) (Company Telephone Number)
AMENDED
1 2 3 1 1 7 - A 0 7
Month Day (Form Type) Month Day
(Fiscal Year) (Annual Meeting)
(Secondary License Type, If Applicable)
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document ID Cashier
S T A M P S
Remarks: Please use BLACK ink for scanning purposes.

I-REMIT, INC.
AND SUBSIDIARIES
(Company’s Full Name)
26/F Discovery Centre, 25 ADB Avenue,
Ortigas Center, Pasig City, 1605 Metro Manila
(Company’s Address)
(02) 706 – 9999 Local 100 / 105 / 109
(Telephone Number)
December 31
(Fiscal Year Ending)
(Month and Day)
AMENDED
SEC FORM 17-A
Form Type
Amendment Designation (if applicable)
December 31, 2011
Period Ended Date
(Secondary License Type and File Number)
SEC Number A200101631
PSE Code
File Number

SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-A, AS AMENDED
ANNUAL REPORT PURSUANT TO SECTION 17
OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES
1. For the fiscal year ended December 31, 2011 (AMENDED)
2. Commission Identification No. A200101631 3. BIR Tax Identification No. 210-407-466-000
4. Exact name of registrant as specified in its charter I-REMIT, INC.
5. Metro Manila, PHILIPPINES 6. (SEC Use Only)
Province, Country or other jurisdiction of Industry Classification Code
incorporation or organization
7. 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City, Metro Manila 1605
Address of principal office Postal code
8. (02) 706 – 9999 Local 100 / 105 / 109
Issuer’s telephone number, including area code
9. Not applicable
Former name, former address, and former fiscal year, if changed since last report
10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA
Title Number of Shares of Common Stock
Outstanding and Amount of Debt Outstanding
Common Stock 602,852,800 shares (as of December 31, 2011)
11. Are any or all of these securities listed on a Stock Exchange?
Yes [] No [ ]
If yes, state the name of such stock exchange and the classes of securities listed therein:
The Philippine Stock Exchange, Inc.
12. Check whether the issuer:
(a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or
Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation
Code of the Philippines during the preceding twelve (12) months (or for such shorter period that the
registrant was required to file such reports)
Yes [] No [ ]
(b) has been subject to such filing requirements for the past 90 days
Yes [] No [ ]
13. Aggregate market value of the voting stock held by non-affiliates of the registrant:
PHP 1,476,989,360 (as of December 31, 2011, PHP 2.45 per share)

DOCUMENTS INCORPORATED BY REFERENCE
Documents incorporated by reference in any part of this report:
2011 Audited Parent Company and Consolidated Financial Statements of
I-Remit, Inc. and Subsidiaries
(incorporated as reference for Items 1, 6, 7 and 8 of SEC Form 17-A)

TABLE OF CONTENTS
PART I BUSINESS AND GENERAL INFORMATION
Item 1 Business 1
Item 2 Properties 29
Item 3 Legal Proceedings 31
Item 4 Submission of Matters to a Vote of Security Holders 31
PART II OPERATIONAL AND FINANCIAL INFORMATION
Item 5 Market for Issuer’s Common Equity and Related Stockholder Matters 32
Item 6 Management’s Discussion and Analysis or Plan of Operation 37
Item 7 Financial Statements 54
Item 8 Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
54
PART III CONTROL AND COMPENSATION INFORMATION
Item 9 Directors and Executive Officers of the Issuer 57
Item 10 Executive Compensation 69
Item 11 Security Ownership of Certain Beneficial Owners and Management 70
Item 12 Certain Relationships and Related Party Transactions 72
PART IV CORPORATE GOVERNANCE
Item 13 Corporate Governance 74
PART V EXHIBITS AND SCHEDULES
Item 14 a. Exhibit 79
b. Reports on SEC Form 17-C 79
SIGNATURES
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES
INDEX TO EXHIBIT

Item 1. Business
(A) Description of Business
(1) Business Development
PART I. BUSINESS AND GENERAL INFORMATION
I-Remit, Inc. (“I-Remit”, “Parent Company”, or “Company”) is a company in the Philippines
engaged in the business of servicing the remittance needs of overseas Filipino workers
(OFWs) and other migrant workers. The Parent Company was duly registered with the
Securities and Exchange Commission (SEC) on March 5, 2001 with SEC Registration No.
A200101631. It started commercial operations on November 11, 2001.
The Parent Company and its subsidiaries (“Group”) are primarily engaged in the business of
fund transfer and remittance services, from abroad into the Philippines or otherwise, of any
form or kind of currencies or monies, either by electronic, telegraphic, wire or any other mode
of transfer; as well as in undertaking the delivery of such funds or monies, both in the domestic
and international market, by providing courier or freight forwarding services; and conducting
foreign exchange transactions as may be provided by law and other allied activities relative
thereto; provided that the foreign exchange transactions of the Parent Company shall be
limited to ordinary money changing activity or “spot” foreign currency transaction; provided
further that the Parent Company shall not engage in the business of being a commodity future
broker or otherwise shall engage in financial derivatives activities such as foreign currency
swaps, forwards, options or other similar instruments as defined under Bangko Sentral ng
Pilipinas (BSP) Circular No. 102, Series of 1995.
The Parent Company is duly registered as a Remittance Agent (RA) subject to applicable
provisions of law and BSP rules and regulations, as well as the provisions of the Anti-Money
Laundering Act of 2001 (Republic Act. No. 9160, as amended by Republic Act. No. 9194) and
the implementing rules and regulations, with Certificate No. FX-2005-000364 issued by the
BSP on May 10, 2005.
The Parent Company’s list of services also includes auxiliary services such as liaising and
coordinating with, and accepting and distributing membership contributions, loan amortization
payments, and premium payments to various government and non-government entities such
as the Social Security System (SSS), the Home Development Mutual Fund (HDMF or Pag-
IBIG), the Philippine Retirement Authority (PRA) and the Philippine Health Insurance
Corporation (PhilHealth), as well as various insurance, pre-need, and real estate companies.
The Parent Company is to exist for fifty (50) years from and after the date of incorporation.
The registered office and principal place of business of the Parent Company is 26/F Discovery
Centre, ADB Avenue, Ortigas Center, Pasig City, 1605 Metro Manila, Philippines.
The Company also operates in various countries through subsidiaries, associates, or affiliates,
and via tie-ups and strategic partnerships. Tie-up and partnership arrangements are utilized
when the potential volume of remittances do not justify the investment of equity.
1

I-Remit currently operates in 24 countries and territories worldwide.
Lucky Star Management Limited, the first international office of I-Remit, opened in Hong Kong
in May 2001. In the same year, I-Remit started its aggressive global expansion by forging
alliances in other countries with high concentrations of overseas Filipino workers (OFWs) and
Filipino migrants. In July 2001, I-Remit forged a tie-up with its Canadian partner International
Remittance (Canada) Limited (IRCL), and established operations in three (3) major provinces
of Canada: British Columbia, Alberta, and Ontario. In 2005, I-Remit acquired 65% ownership
in the said company, and which was subsequently increased to 95% in 2006, and further
consolidated to 100% by the end of June 2007. Also, in July 2001, I-Remit entered into its first
European partnership in the United Kingdom (UK), and eventually started the operation of its
subsidiary, IRemit Global Remittance Limited, in January 2003. It was sold by the Company in
2004 and was repurchased in June 2007. iRemit’s expansion in Europe is in pursuit of the
authorization obtained from the Financial Services Authority of the United Kingdom by its
wholly-owned subsidiary, IRemit Global Remittance Limited to operate as a payment institution
in the European Economic Area (EEA). Under the European Payment Services Directive,
IRemit Global Remittance Limited may avail of its “passporting” rights and carry on its business
activities in other EEA states by establishing branches, engaging agents, or providing crossborder
services. I-Remit started its second Asian operation in Singapore through IRemit
Singapore Pte Ltd, which commenced its commercial operations in October 2001. I-Remit
acquired 49% ownership in the said company in June 2007. I-Remit further expanded in Asia
through a tie-up in Taiwan, Hwa Kung Hong & Co., Ltd., which became operational in 2001. I-
Remit acquired 49% ownership in the said tie-up in July 2009. I-Remit forged a tie-up in
Australia that began its operations in September 2002. I-Remit Australia Pty Ltd (“IAPL”) was
incorporated in December 2002 and in June 2007 ownership has been consolidated to 100%.
Worldwide Exchange Pty Ltd (“WEPL”) in Australia started commercial operations in
September 2003. The Company acquired 20% ownership of WEPL in June 2007 and
additional 15% ownership in September 2007. On March 31, 2011, I-Remit acquired the 35%
interest of minority shareholders in WEPL. With its 30% indirect voting interest through IAPL, I-
Remit effectively owns 100.00% of WEPL. On July 25, 2007, the Financial Monetary Authority
of Austria granted the remittance license of IREMIT EUROPE Remittance Consulting AG in
which the Company has 74.9% equity interest. It started commercial operations on September
16, 2007. In November 2009, IREMIT EUROPE Remittance Consulting AG was registered by
Banca D’Italia Eurosistema in the general list of financial intermediaries as a provider of money
transfer services under Article 106 of the legislative decree 385/1993 of Italy’s Banking Law.
On May 5, 2011, the Parent Company acquired the 25.10% ownership interest in IREMIT
EUROPE Remittance Consulting AG from the noncontrolling stockholder. The acquisition
increased the Parent Company’s ownership interest in IREMIT EUROPE Remittance
Consulting AG to 100.0% from 74.9%. Consequently, on October 11, 2011, IREMIT EUROPE
Remittance Consulting AG changed its legal name to IREMIT Remittance
Consulting GmbH and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities. I-Remit New Zealand Limited, a wholly-owned subsidiary
was incorporated and its registration was approved by the New Zealand Ministry of Economic
Development on September 11, 2007. It started commercial operations on February 13, 2008.
On November 28, 2008, I-Remit’s Board of Directors (“Board”) ratified the acquisition of the
100.00% ownership interest in Power Star Asia Group Limited, a company based in Hong
Kong which is engaged in foreign currency trading. On January 9, 2009, the Board of I-Remit
authorized the acquisition of up to 49% of the outstanding capital stock of Hwa Kung Hong &
Co., Ltd., a company engaged in the remittance business in Taiwan with offices in Taipei and
Kaohsiung. The acquisition of the shares was completed on July 1, 2009.
The Company’s presence in various countries hosting overseas Filipino workers (OFWs) and
Filipino migrants and several strategic partnerships and tie-ups with various local and
international banks, pawnshops, couriers, and telecommunications companies makes it the
largest independent local remittance company.
The Company was also the first remittance company registered with the Board of Investments
(BOI) as a New Information Technology (IT) Service Firm in the Field of Information
Technology Services (Remittance Infrastructure System) on a Non-Pioneer Status under the
Omnibus Investments Code of 1987 which entitled the Company to Income Tax Holiday (ITH)
Incentive for four (4) years and which was later extended to two (2) years and which expired
on November 11, 2007.
2

I-Remit’s vision is to become the ultimate choice remittance service provider globally and to
capture a significant share of the huge annual inward remittances of OFWs around the world.
It will achieve these by using the latest in information technology and communication
technology through the Internet platform in delivering its products and services to its target
customers.
The Company was initially incorporated with a capital stock of two hundred million pesos (PHP
200,000,000) divided into two million shares with a par value of one hundred pesos (PHP 100)
per share.
The subscribers at incorporation are the following:
Name Nationality No. of Shares
Subscribed
3
Amount of Capital
Stock Subscribed
(PHP)
Amount Paid on
Subscription (PHP)
iVantage Corporation Filipino 999,993 99,999,300.00 49,999,300.00
Ben C. Tiu Filipino 1 100.00 100.00
Wilson L. Sy Filipino 1 100.00 100.00
Willy N. Ocier Filipino 1 100.00 100.00
William L. Chua Filipino 1 100.00 100.00
Juan G. Chua Filipino 1 100.00 100.00
David R. de Leon Filipino 1 100.00 100.00
Randolph C. de Leon Filipino 1 100.00 100.00
TOTAL 1,000,000 100,000,000.00 50,000,000.00
On August 15, 2001, iVantage Corporation sold all its titles, rights, interests and obligations in
and to all its subscribed shares in the Company to the following:
Name Nationality No. of Shares
Subscribed
Amount of Capital
Stock Subscribed
(PHP)
Amount Paid on
Subscription (PHP)
JTKC Equities, Inc. Filipino 650,000 65,000,000.00 32,500,000.00
Surewell Equities, Inc. Filipino 300,000 30,000,000.00 15,000,000.00
JPSA Global Services Co. Filipino 50,000 5,000,000.00 2,500,000.00
TOTAL 1,000,000 100,000,000.00 50,000,000.00
The new shareholders assumed pro rata the subscription payable to I-Remit, Inc. of iVantage
Corporation amounting to fifty million pesos (PHP 50,000,000).
On February 8, 2005, JTKC Equities, Inc. assigned all of its rights, interests and obligations in
and to its entire subscription consisting of 650,000 shares in the Company unto Deighton
Limited, a corporation organized and existing under the laws of Hong Kong.
On June 27, 2007, JTKC Equities, Inc. bought back the 650,000 shares in the Company from
Deighton Limited.

On June 29, 2007, the Board and the stockholders of the Company approved the following
amendments to the Articles of Incorporation and By-Laws:
On the Articles of Incorporation
1. Reduction of par value per share from PHP 100.00 to PHP 1.00 per share;
2. Increase in authorized capital stock from PHP 200 million to PHP 1.0 billion;
3. Denial of pre-emptive rights;
4. Authority of the Board of Directors to grant stock options, issue warrants or enter into
stock purchase or similar agreements;
On the By-Laws
1. Period for closing of stock and transfer book or fixing of record date;
2. Period for notice of stockholders’ meeting;
3. Deadline for the submission / revocation of proxies;
4. Number, term of office, qualifications, and disqualifications;
5. Additional requirements for independent directors;
6. Election of directors;
7. Place of meeting of the Board of Directors;
8. Vacancies;
9. Constitution of a Nomination Committee; and
10. The addition of one or more Vice Chairmen to the list of officers of the Company.
On July 20, 2007, the Board approved a Special Stock Purchase Program (“SSPP”) for its
directors, the officers and employees of the Company who have been in service for at least
one (1) calendar year as of June 30, 2007, and the Company’s resource persons and
consultants. A total of fifteen million (15,000,000) shares of the Company, at a par value of
one peso (PHP 1.00) per share, was allocated under the SSPP. The shares were allocated to
those eligible to avail of the shares based on a formula developed by the Company’s SSPP
Committee and approved by the Board of Directors.
The Board of Directors of the Company also declared stock dividends worth PHP
43,000,000.00 to its shareholders on July 20, 2007, which declaration was subsequently
ratified and confirmed by the Company’s shareholders during their annual meeting held on the
same day, immediately after the Board meeting. The Record Date was set on August 19,
2007, thirty (30) days from the date of approval of the Company’s shareholders.
On August 22, 2007, the Securities and Exchange Commission (“SEC”) approved the
Amended Articles of Incorporation and By-Laws of the Company.
The shares subscribed and paid-up subsequent to the increase in capital stock were as
follows:
Name Nationality No. of Shares
Subscribed
4
Amount of Capital
Stock Subscribed
(PHP)
Amount Paid on
Subscription (PHP)
Star Equities Inc. Filipino 158,418,225 158,418,225.00 158,418,225.00
Surewell Equities, Inc. Filipino 119,100,000 119,100,000.00 119,100,000.00
JTKC Equities, Inc. Filipino 99,631,775 99,631,775.00 99,631,775.00
JPSA Global Services Co. Filipino 19,850,000 19,850,000.00 19,850,000.00
TOTAL 397,000,000 397,000,000.00 397,000,000.00
On September 13, 2007, the SEC granted to the Company an exemption from registration of
the SSPP shares under Section 10.2 of the SRC. On September 20, 2007, the Company
issued to the directors, officers and employees eligible to avail of the SSPP their respective
shares under the program. Notwithstanding the aforesaid confirmation of the exempt status of
the SSPP shares, the SEC nonetheless required the Corporation to include the SSPP shares
among the shares of iRemit which were registered with the Commission prior to the conduct of
its Initial Public Offering (IPO) in October 2007. The registration of the I-Remit shares, together
with the SSPP shares, was rendered effective on October 5, 2007.

All 15,000,000 shares were subscribed. The shares subject of the SSPP were sold at par
value or PHP 1.00 per share payable in full and in cash and subject to a lock-up period of two
(2) years from date of issue which ended on September 19, 2009. The sale is further subject
to the condition that should an officer or an employee resign from the Company prior to the
expiration of the lock-up period, the shares purchased by such resigning employee or officer
shall be purchased at cost by the Company’s Retirement Fund (“Retirement Fund”) for the
benefit of retiring employees or officers. Total share purchases amounting to PHP11.74 million
were paid in full while the difference amounting to PHP3.26 million were paid by way of salary
loan. The shares acquired through the SSPP were subject to a lock-up period of two (2) years
from the date of issue which ended on September 19, 2009.
On May 18, 2007, the Board of Directors of the Company approved the listing of its shares with
the Philippine Stock Exchange (“PSE”) in an initial public offering (IPO).
The Board of Directors of the PSE, in its regular meeting on September 27, 2007, approved
the Company’s application to list its common shares with the PSE. On October 5, 2007, the
Securities and Exchange Commission declared the Company’s Registration Statement in
respect of the IPO effective and issued the Certificate of Permit to Offer Securities for Sale in
respect of the offer shares.
The Company offered for subscription a total of 140,604,000 common shares each with par
value of PHP 1.00 per share consisting of (i) 107,417,000 new common shares issued and
offered by the Company by way of a primary offer and (ii) a total of 33,187,000 existing shares
offered by selling shareholders, JTKC Equities, Inc. (21,571,550 common shares issued),
Surewell Equities (9,956,100 common shares offered), and JPSA Global Services Co.
(1,659,350 common shares offered) pursuant to a secondary offer.
On October 17, 2007, the Company completed its IPO of 140,604,000 common shares,
representing slightly above 25% of the total outstanding capital stock of 562,367,000 (net of
50,000 treasury shares) at an offer price of PHP 4.68 per share for total gross proceeds of
PHP 658,026,720.00.
The net proceeds from the primary offer of PHP 466,198,457.05, determined by deducting
from the gross proceeds of the primary offer the Company’s pro-rated share in the professional
fees, underwriting and selling fees, listing and filing fees, taxes and other related fees and
expenses, is intended to be used by the Company to finance, in part, its expansion in other
countries and to partially retire some of the Company’s short term interest-bearing loans.
On August 16, 2008, the Board of the Company authorized the buy-back from the market of up
to 10 million shares, representing approximately 1.78% of I-Remit’s outstanding common
shares. The program was adopted with the objective of preserving the value of the Company’s
shares, which was grossly undervalued at that time. The program also sought to boost
investor confidence in the Company. A total of 10,000,000 shares have been purchased and
lodged as treasury shares.
On September 16, 201, the Board of the Company authorized the buy-back from the market of
up to 10 million shares, representing approximately 1.64% of I-Remit’s outstanding common
shares. The program was adopted with the objective of preserving the value of the Company’s
shares, which was grossly undervalued at that time. The program also sought to boost
investor confidence in the Company. A total of 4,873,000 shares have been purchased and
lodged as treasury shares.
As of March 31, 2012, the Company’s capital structure is as follows:
5
Amount of Capital
Stock Subscribed
% to Total
Number of
Shares
Name Nationality
No. of Shares
Subscribed
(PHP)
Star Equities Inc. Filipino 174,260,047 174,260,047.00 28.91%
Surewell Equities, Inc. Filipino 134,248,290 134,248,290.00 22.27%
JTKC Equities, Inc. Filipino 116,611,247 116,611,247.00 19.34%
JPSA Global Services Co. Filipino 18,700,000 18,700,000.00 3.10%
Public Various 158,983,216 158,983,216.00 26.37%
Total, March 31, 2012 602,802,800 602,802,800.00 100.00%

The Company’s general expansion plans in 2012 include the opening of new and/or additional
offices or the engagement of new tie-ups and partners in Ireland, Macau, Germany, the
Netherlands, Saudi Arabia and Kuwait.
(2) Business of Issuer
(a) Description of Registrant
The Parent Company and its subsidiaries are primarily engaged in the business of fund
transfer and remittance services of any form or kind of currencies or monies, either by
electronic, telegraphic, wire or any other mode of transfer and undertakes the delivery
of such funds or monies, both in the domestic and international market, by providing
either courier or freight forwarding services; and conducts foreign exchange
transactions as may be allowed by law and other allied activities relative thereto.
The Company’s subsidiaries are as follows:
International Remittance (Canada) Ltd., a wholly-owned subsidiary, was incorporated
on July 16, 2001. It started initially as a tie-up and partner of I-Remit, establishing its
operations in three (3) major provinces in Canada, namely: British Columbia, Alberta
and Ontario. In 2005, I-Remit acquired 65% ownership in the company that
subsequently increased to 95% in 2006, and eventually consolidated to 100% on June
29, 2007. International Remittance (Canada) Ltd. has seven (7) offices in Canada: two
(2) in British Columbia; three (3) in Ontario; and two (2) in Alberta. The Filipino
community is the third largest minority group in Canada. There are 350,000 Filipino
migrant families and about 500,000 Filipinos in Canada mostly in Toronto, Montreal,
and Vancouver. However, the Commission on Filipinos Overseas in its Stock Estimate
of Overseas Filipinos (December 2009) estimates that there are 639,686 Filipinos in the
country.
I-Remit Australia Pty Ltd, a wholly-owned subsidiary, is a company organized under the
Australian Corporations Act 2001 and registered with the Australian Securities and
Investments Commission with Australian Company Number 103 107 982. It was
incorporated on December 10, 2002 in Victoria, Australia and as of June 29, 2007, the
Company’s ownership in I-Remit Australia has been consolidated to 100%. It has no
regular employees and has not engaged, since incorporation, in any material activities
other than those related to the maintenance of a bank account with ANZ Bank
(Australia and New Zealand Banking Group Limited) where I-Remit’s subsidiary and tieups
in Australia deposit the remittances that they receive for purpose of eventually
transferring the accumulated balance to I-Remit’s bank account in the Philippines.
IREMIT EUROPE Remittance Consulting AG (74.9% owned) was incorporated on 20
July 2005 in Vienna, Austria. It started commercial operations on September 16, 2007.
There are about 30,000 Filipinos in Austria. In November 2009, IREMIT EUROPE
Remittance Consulting AG was registered by Banca D’Italia Eurosistema in the general
list of financial intermediaries as a provider of money transfer services under Article 106
of the legislative decree 385/1993 of Italy’s Banking Law. On April 18, 2010, it opened
a branch in Rome. On August 1, 2010, it opened its second branch in Milan. Italy is the
second most popular destination of overseas Filipino workers in Europe. Numbering
about 200,000, the vast majority of Filipinos work in the domestic service sector while
there are also a number employed in the nursing field and other skilled and semi-skilled
occupational groups.
IRemit Global Remittance Limited, a wholly-owned subsidiary, is a private limited
company in the United Kingdom and Wales that was incorporated on June 22, 2001. It
is registered with The Registrar of Companies for England and Wales, Companies
House with Company Number 04239974. It started commercial operations in July 2001.
Initially, the Company had a 96% equity interest in the IRemit Global Remittance
Limited until it was sold on January 18, 2004. I-Remit repurchased it on June 29, 2007
and acquired 100% ownership interest. Filipinos are the fourth largest source of
immigrants to the United Kingdom. There were approximately 200,000 Filipinos living
and working in the United Kingdom as nurses, caregivers in public and private nursing
homes, medical professionals and chambermaids.
6

I-Remit New Zealand Limited, a wholly-owned subsidiary was incorporated on
September 11, 2007. Its registration was approved by the New Zealand Ministry of
Economic Development last September 11, 2007. It is registered with the Registrar of
Companies of New Zealand, Companies Office with Company Number 1984331. The
company started operating commercially on February 13, 2008. There are over 20,000
Filipinos in New Zealand.
Lucky Star Management Limited, a wholly-owned subsidiary, was incorporated on
March 16, 2001 as a limited liability company under the Companies Ordinance of Hong
Kong whose principal activity is the provision of remittance services. It is registered
with the Companies Registry with Company Number 750525. It was the first
international branch of I-Remit and, to date, it has four (4) branches in Hong Kong: two
(2) at the Central District, one (1) at the Admiralty, and one (1) in Tsuen Wan. Hong
Kong is one of the top destinations of land-based OFWs in Asia. There are on average
around 140,000 Filipinos in Hong Kong, most of whom find work as domestic
household helpers.
Power Star Asia Group Limited, a wholly-owned subsidiary, was incorporated on April
28, 2008 under the Companies Ordinance of Hong Kong. It is engaged in foreign
exchange trading activities. It was acquired by I-Remit on November 12, 2008 with the
purchase of its 1,000,000 outstanding shares for a total consideration of HKD1,000,000
with the intention of outsourcing some of the Parent Company’s foreign exchange
activities to a company located in one of the regional financial centers in Asia. It is
registered with the Companies Registry with Company Number 1232132.
Worldwide Exchange Pty Ltd (consisting of direct voting interest of 70% and indirect
voting interest through I-Remit Australia Pty Ltd of 30%) was incorporated on
September 29, 2003 in Queensland, Australia. It is duly registered with the Australian
Securities and Investments Commission in Queensland, Australia with Australian
Company Registration Number 106493047. It started commercial operations in
September 2002. It currently has two (2) branches located in Blacktown and in Perth,
Western Australia. The Filipino-Australian community is composed of approximately
200,000 immigrants, many of whom moved to Australia from the Philippines in the early
1980’s.
The Company’s associates are as follows:
IRemit Singapore Pte Ltd (49% owned) is a private limited company incorporated in
Singapore whose principal business activity is to carry on the business of money
remittance services. It was incorporated on May 11, 2001 and started commercial
operations in October 2001. It is duly registered with the Registrar of Companies and
Businesses Singapore, Accounting and Corporate Regulatory Authority with Company
Number 200103087H. There are about 136,000 Filipinos in Singapore who work as
household workers, medical workers, IT professionals, and construction workers.
Hwa Kung Hong & Co. Ltd. (49% owned) is a company engaged in the remittance
business in Taiwan. It has offices in Taipei and Kaohsiung. It has a Taipei City
Business Number 00078598-2 and a Business Enterprise (For Profit) Unified Number
14033431. On January 9, 2009, the Board of I-Remit authorized the acquisition of up
to 49% of the outstanding capital stock of Hwa Kung Hong & Co. Ltd. The acquisition of
the shares was completed on July 1, 2009.
7

Principal Products and Services
Through the years, I-Remit has developed products and services that cater specifically
to the various remittance needs of OFWs and other migrant workers as follows:
Bank-to-Bank A facility for “same-day” online crediting to a bank
account in the Philippines. A remittance received
before 12:00 noon Manila time may be withdrawn by
the designated beneficiary from any BancNet,
MegaLink, or ExpressNet automated teller machine
(ATM) on the same day of the remittance transaction.
BancNet has 44 member banks and 15 subscribers
and almost 4,000 ATMs nationwide. Megalink has 22
members, 2,921 ATMs, and 17,000 POS terminals
nationwide. ExpressNet has five (5) member banks
and 3,113 ATMs nationwide.
Door-to-Door Delivery of cash remittances to designated
beneficiaries through third party couriers. I-Remit has
the widest delivery reach nationwide, capable of
delivering cash remittances within the day for
beneficiaries in Metro Manila and the province of Rizal.
Next-day deliveries may be made in the following cities
and provinces: Batangas, Bulacan, Cavite, Cebu,
Davao, Laguna, La Union, Pampanga, Pangasinan,
Tacloban, and Tarlac. Deliveries in other remote areas
may be made in two (2) to three (3) days or more
depending on the actual location of the beneficiary. I-
Remit can deliver in 17 regions, 79 provinces, and 136
cities and municipalities in the country.
Notify-to-Pay Allows a beneficiary in the Philippines to pick-up a
remittance in any of I-Remit’s 6,247 pay-out stations
nationwide within 24 hours. These designated pay-out
stations number 2,006 in Metro Manila, 1,918 in the
rest of Luzon, 1,366 in the Visayas, and 957 in
Mindanao. I-Remit has tied-up with the following
institutions whose branches serve as pay-out stations:
Allied Banking Corporation, Asiatrust Development
Bank, Bank of the Philippine Islands, Bayad Center,
Cebuana Lhuillier, China Banking Corporation, Land
Bank of the Philippines, Philippine National Bank,
Mindanao Capital Corporation, ML Kwarta Padala, One
Network Rural Bank, Inc., Philippine Savings Bank,
Philippine Veterans Bank, Premiere Development
Bank, Prime Asia Pawnshop, Rural Bank of Malinao,
Saint Sealtiel Services, Inc., Security Bank
Corporation, Sterling Bank of Asia, Inc. (A Savings
Bank), Tambunting Pawnshops, Union Bank of the
Philippines, Maybank Philippines, Inc., United Coconut
Planters Bank, UCPB Savings Bank, Rural Bank of
Malinao, and Wilmon Group.
8

Visa Card I-Remit Visa Card is a “debit and ATM card in one”
through which remitters can send money to their
beneficiaries almost instantaneously. Cardholders may
withdraw cash from more than 10,000 BancNet,
MegaLink, or ExpressNet ATMs in the Philippines and
any Visa ATM worldwide. As a debit card, cardholders
may use the I-Remit Visa Card to pay for their
purchases from any of the 12 million Visa-affiliated
merchant establishments in over 170 countries
worldwide. The I-Remit Visa Card is issued in
partnership with Chinatrust (Philippines) Commercial
Bank Corporation while the Visa Electron Card is
issued in partnership with the Standard Chartered
Bank Philippines. In 2008, I-Remit also introduced the
I-Remit Shop ‘N’ Pay Card in partnership with Sterling
Bank of Asia (A Savings Bank). The I-Remit Shop ‘N’
Pay Card utilizes the EMV (Europay, MasterCard,
Visa) technology, the standard for the interoperation of
IC cards (“chip cards”) and IC capable POS terminals
and ATMs, for authenticating credit and debit card
payments.
Auxiliary Services I-Remit is authorized to accept payments,
contributions, premiums or donations from Filipinos
abroad for the following government agencies and
private companies: Social Security System (SSS);
Overseas Workers Welfare Administration (OWWA);
Home Development Mutual Fund (HDMF or Pag-IBIG
Fund); Philippine Health Insurance Corporation
(PhilHealth); Philippine Retirement Authority; Loyola
Plans Consolidated, Inc. ; Platinum Plans Phil., Inc.;
Confed Properties, Inc. ; Surewell Equities, Inc. ;
Robinsons Homes, Inc.; Dynamic Realty and
Resources Corporation; CHMI Land, Inc.; Firm Builders
Realty Development Corporation; Regent Pearl;
Earth+Style Corporation; Extraordinary Development
Corporation; Earth Prosper Corporation; Earth Aspire
Corporation; P.A. Alvarez Properties and Development
Corporation; San Marco Realty and Development
Corporation; PHINMA Property Holdings Corporation;
NJR Realty and Development; R. J. Lhinet
Development Corporation; Pueblo de Oro
Development Corporation; Homeowners Development
Corporation; Ledesco Development Corporation;
Nippon Credit Co., Inc.; Automatic Centre; Kabalikat ng
OFW, and CBN Asia.
SMS (Short Message
Service) via Globe G-
Cash and Smart Padala
iRemit Direct Online
Remittance System
(iDOL)
9
Beneficiaries may encash remittances in more than
5,000 Globe G-Cash and Smart Padala encashment
centers and ATMs nationwide once received on their
mobile phones. Beneficiaries may also use the facility
for “cashless shopping” in G-Cash and Smart affiliated
business establishments.
iDOL is I-Remit’s Internet-based remittance service in
the Philippines. The product aims to offer convenient
and secure remittance services to Filipinos everywhere
that have Internet access.

I-Remit derives its income from remittance transactions in the form of: (i) service fees,
and (ii) on the spread on the applicable foreign exchange rate for each conversion of
any remittance to the Philippines. Service fees cover all logistical and operational
expenses of the Company and its partner or tie-up company for each remittance
transaction. These fees vary per country of operation depending on competition and
the current foreign exchange situation. The timing of a remittance is also a
consideration in applying a foreign exchange factor.
Percentage of Sales or Revenues Contributed by Foreign Sales
I-Remit operates in various countries through its subsidiaries and associates or through
tie-ups. The former allows the Company to own up to 100% equity while the latter is
through agent-partner agreements. Partnership arrangements are utilized when the
volume of remittances do not justify incorporating new companies.
Due to the nature of its business, all of the Company’s sales or revenues are from
foreign sales.
The percentage shares of the Company’s major markets in terms of total value of
inward remittances (in US dollar amounts) is as follows:
Share in Value (in USD) of Remittances
Region 2011 2010 2009
Asia-Pacific 31% 34% 33%
Europe 10% 11% 12%
Middle East 17% 19% 20%
North America 13% 15% 17%
Others 29% 21% 18%
Total 100% 100% 100%
The percentage shares of the Company’s major markets in terms of the volume
(number of transactions) of inward remittance transactions is as follows:
Share in Volume (in No. of Transactions) of Remittances
Region 2011 2010 2009
Asia-Pacific 43% 43% 43%
Europe 11% 10% 9%
Middle East 29% 29% 28%
North America 14% 15% 16%
Others 3% 3% 4%
Total 100% 100% 100%
10

Distribution Methods of the Products or Services
I-Remit operates globally through a combined network of branches and tie-ups
worldwide offering its products and services to overseas Filipino workers (OFWs).
Currently, I-Remit is present in the following 24 countries and territories:
Asia Pacific Europe Middle East North America
Australia Austria Bahrain Canada
Brunei Greece Israel
Hong Kong Ireland Jordan
Japan Italy Kuwait
Malaysia Spain Lebanon
Marshall Islands The Netherlands Qatar
New Zealand United Kingdom United Arab Emirates
Singapore
Taiwan
The Company’s general expansion plans in 2012 include the opening of new and/or
additional offices or the engagement of new tie-ups and partners in Ireland, Macau,
Germany, the Netherlands, Saudi Arabia and Kuwait.
The distribution methods in the Philippines of the Company’s products or services are
as described under “Principal Products and Services.”
Remittances may be credited to any account maintained in over 4,500 branches of I-
Remit’s partner banks in the Philippines. Remittances may also be withdrawn from any
of over 10,000 ATMs of the member banks and subscribers of BancNet, Megalink, and
ExpressNet.
11

I-Remit has the widest coverage in door-to-door delivery nationwide and is capable of
delivering cash remittances within the day for beneficiaries in Metro Manila and the
province of Rizal. Next-day deliveries may be made in the following cities and
provinces: Batangas, Bulacan, Cavite, Cebu, Davao, Laguna, La Union, Pampanga,
Pangasinan, Tacloban, and Tarlac. Deliveries in other remote areas may be made in
two (2) to three (3) days or 10 – 12 days depending on the specific location of the
beneficiary. I-Remit can deliver in 17 regions, 81 provinces, and 136 cities and
municipalities in the country.
Under the Company’s “Notify-to-Pay” services, remittances may be picked up by
beneficiaries in any of I-Remit’s 6,247 designated pay-out stations nationwide.
Beneficiaries may also encash remittances in more than 5,000 Smart Padala and Globe
G-Cash encashment centers nationwide once notified by “text” on their mobile phones.
New Products or Services
In May 2009, I-Remit implemented the Pag-IBIG Fund’s electronic collection system in
all its offices and tie-ups worldwide. I-Remit is an accredited non-bank remittance agent
of the Home Development Mutual Fund (also known as Pag-IBIG Fund). The new
service was introduced in line with the Pag-IBIG Fund’s Overseas Program (POP) for
its members.
In July 2009, I-Remit forged a partnership with Jollibee Foods Corporation for the “Salu-
Salo Padala Treat” for the purchase by OFWs of Jollibee meals and teats for delivery to
their families in the Philippines.
In December 2008, I-Remit tied-up with the Home Shopping Network, Inc. (HSNi) that
owns and operates Shop TV, a dedicated 24-hour TV shopping channel for the
purchase of various shopping items by OFWs for delivery to their families in the
Philippines.
In December 2008, I-Remit became an accredited marketer of the Philippine
Retirement Authority (PRA) that will conduct information dissemination, promotion and
collection activities in relation to PRA’s Retirement Program abroad.
On September 22, 2008, I-Remit signed a remittance partnership agreement with the
Bank of China Ltd. Manila branch. The agreement is initially intended to benefit
Chinese customers in the United Kingdom. The remittance proceeds may be
withdrawn by beneficiaries from any of Bank of China’s over 12,000 domestic branches
in the Chinese mainland.
On September 1, 2008, I-Remit introduced the I-Remit Shop ‘N’ Pay Card in
partnership with Sterling Bank of Asia. The I-Remit Shop I-Remit Shop ‘N’ Pay Card
utilizes the EMV (EuroPay, MasterCard, Visa) technology, the standard for the
interoperation of IC cards (“chip cards”) and IC capable POS terminals and ATMs, for
authenticating credit and debit card payments.
In May 2008, I-Remit signed a partnership agreement with the Land Bank of the
Philippines for the promotion and distribution of the Landbank OFW Cash Card, an
electronic debit card that can be linked to a Smart mobile phone.
On January 26, 2008, I-Remit introduced the I-Remit Electronic Overseas Collection
Service that allows OFWs to remit their contributions to the Social Security System
(SSS). I-Remit is the first non-bank remittance company authorized by the SSS to
provide this electronic service.
12

iDOL, which stands for iRemit Direct Online, will be initially launched in Canada, where
using the Internet for sending money has proven to be a huge convenience to its large
migrant population owing to the nation’s vast territorial expanse and seasonal
extremes. iRemit also aims to introduce the new remittance platform to Filipinos in
Australia, New Zealand, the United Kingdom, and Japan. Like Canada, these countries
have large Filipino communities.
There are other services planned for launching in 2012. These products and services
are intended to improve product delivery and enhance I-Remit’s competitiveness in the
OFW remittance market. Among these are various payment and collection services.
There are no publicly-announced new products or services which completion of
development would require a material amount of the resources of iRemit. New
products or services will be developed using internal resources.
Competition
Players
The overseas remittance industry has numerous players that are classified into two (2)
general categories: the formal and informal channels.
Formal Channels
Formal channels for remittances consist of organizations or institutions that transfer
funds from one geographic location to another and are operating within the regulated
financial sector. These institutions are covered by laws and are supervised by
government agencies that determine their establishment, and regulate their scope of
operations. Formal channels are characterized by licensing and registration
requirements and must also have in place mechanisms for customer identification,
record keeping, on-going monitoring of accounts and transactions, and customer due
diligence. Formal remittance channels consist of banks, money transfer agencies
(domestic and international), and telecommunications companies.
Banks. Presently, there are over twenty (20) commercial and thrift banks that are
active players in the overseas remittance business. Five (5) of these banks have a hold
on 80% to 90% of the banking sector’s remittance activities as they are able to utilize
their wide distribution overseas network and domestic branches to reach out to more
remitters and their beneficiaries. The major commercial banks in the Philippines such
as the Metropolitan Bank and Trust Company (Metrobank), Banco de Oro Unibank,
Inc., Bank of the Philippine Islands, and the Rizal Commercial Banking Corporation
(RCBC) have non-exclusive correspondent banking relationships with foreign banks
and tie-ups with international money transfer companies. These banks also subscribe
to the SWIFT system for bank-to-bank payments and have a combined international
network of correspondent banks, overseas branches or offshore remittance centers
located in key markets such as Canada, Italy, Austria, Spain, Singapore, Hong Kong,
Taiwan, Japan, the United Kingdom, and the United States. Banks usually offer any of
the following remittance services: over the counter or branch pick-up; door-to-door
delivery; credit to a deposit account; use of credit cards, cash cards, debit cards; or
pick-up from off-site payment centers.
International Money Transfer Agencies. The major players include I-Remit, Inc.,
Western Union, MoneyGram, Coinstar (that acquired Travelex), and the Omnex Group.
US-based Western Union maintains the most extensive network among global money
transfer agents in the country with over 6,000 agent locations in the Philippines and a
presence in over 200 countries and territories. The strength of these companies lies in
their network coverage and, with their global presence, they can easily address the
OFW recipients’ desire for accessibility and convenience.
13

Domestic Money Transfer Agencies. The major domestic players include I-Remit, Inc.,
Lucky Money, LBC Express, 2GO, and JRS Express. Most of the companies classified
under this category are local logistics service providers and courier companies that
branched out into the remittance business. There are 6,556 remittance agents (head
offices and branches) registered with the Bangko Sentral ng Pilipinas as at December
31, 2009.
Telecommunications Companies. The recent advances in information and
telecommunications technologies allowed companies such as Smart and Globe to offer
innovative modes of sending and receiving remittances. Smart Communications, Inc.
introduced Smart Padala in August 2004 while Globe introduced GCash in October
2004. Both are cash remittance services via short messaging system (SMS) or “text.”
Technology-Based Companies. The emerging new players in the industry are
composed mostly of technology-based companies that utilize the Internet in offering
remittance services. The online money transfer companies tapping the Philippine
market are composed of Remit2Home (part of The Times of India group), San
Francisco-based Xoom, Yahoo! Paydirect, PayPal, Billpoint, and Cashpin (based in
South America). Microsoft Philippines also tied-up with a local commercial bank in
offering the “Tele-OFW One Follow Me” system that allows users to manage their
funds in a bank account by connecting to the Microsoft live communication server using
Windows-based personal digital assistant (PDA) phones in a Wi-Fi area.
Informal Channels
Informal channels refer to methods of remittance or remittance activities conducted
outside of the regulated financial sectors. Cash may be sent through the recruitment
agency or through the local office of the employer; or through friends, relatives or coworkers
traveling back to the Philippines. Alternatively, overseas Filipinos can bring the
cash themselves upon their return or visit to the Philippines.
“Padala” System. The literal meaning of the local word “padala” is to send through the
courtesy of another person. In this practice, it is assumed that the person asked to
bring the money to the Philippines is reliable and trustworthy, and the practice repeats
as trust and confidence builds between the parties with each completed delivery.
“Kaliwaan” System. This system, despite its lack of popularity, operates through a welltested
network of currency exchanges. It involves the use of agents in the source and
destination countries who do not impose regulatory restrictions as they arrange
currency transfers. It has been the subject of recent congressional inquiries because of
its possible use in laundering monetary proceeds from various illegal activities.
Hand-carry System. This method refers to the practice of overseas Filipinos in bringing
home the cash themselves when they return to the Philippines on vacation or after the
expiration of their work contracts.
14

OFW remittances continue to fuel the Philippine economy. The continuing upward
trends in inward remittance flows are expected to be sustained by the increased
deployment of OFWs. Likewise, there is an observed overall shift from the utilization of
unregulated, informal channels to the more formal structured channels for remittances
that emphasizes the growing need for reliability, efficiency and convenience.
As competition among industry players intensifies, banks, money transfer agents, and
other similar service providers are expected to become more aggressive in their
marketing and promotional activities to lure potential clients and capture larger shares
of the market.
Advances in information and communications technology have allowed new players to
roll-out a growing variety of products and services catering to the evolving needs and
requirements of OFWs. Such innovative approaches are expected to fuel further
industry growth, help reduce transaction costs, and improve service delivery. Due to
rising competition from non-traditional players, banks and money transfer agents need
to upgrade their technology, expand network coverage, and enhance their distribution
structures.
Industry players, particularly banks and remittance agents, will always be on the lookout
and competing for new tie-up arrangements with overseas partners, particularly in
untapped geographic markets. Banks and other financial institutions will continue to
seek partnership opportunities with correspondent banks, money transfer agents, and
other types of partners overseas to expand their coverage while also planning to
establish their own offshore units in key overseas markets like the Middle East,
Canada, and the United States, that have a growing concentration of OFWs and
Filipino immigrants. While the industry remains highly-competitive, industry players
often link-up and have overlapping or complementary offerings with other service
providers under revenue-sharing schemes.
I-Remit expects to encounter direct and indirect competition from domestic and foreign
companies offering money remittance services locally and internationally.
The Company competes mainly in terms of pricing and service efficiency against the
domestic commercial banks, Philippine-based money transfer agencies, international
money transfer agencies, and telecommunications firms.
I-Remit is able to compete effectively against the major players in the industry because
of its network of branches and tie-ups abroad, its local tie-ups with local and foreign
banks, its flexibility to expand in other markets, its relatively faster decision-making
process, and its marketing strategies that are customized for the Filipino populations in
each country that it operates in.
The Company believes that its customer-centric model, complemented by its flexible
and dynamic structure, will allow it to compete actively in the local and international
markets by capitalizing on its strengths in its core business while offering value-added
services to OFWs around the world. The Company similarly believes that with its
relentless drive for innovation, its streamlined organization, and efficient cost structure
in its local and foreign operations, it will be able to compete effectively in the global
marketplace through the continuous establishment of foreign offices in strategic
locations characterized by high-densities of OFW populations that will allow it to tap a
broader market, and consequently, deliver potentially high-yield profits.
Sources and Availability of Raw Materials and Names of Principal Suppliers
The Company has a broad base of suppliers, both local and foreign. The Company is
not dependent on one or a few suppliers in conducting its business.
15

Dependence Upon a Single Customer or a Few Customers
The Company serves a wide spectrum of overseas Filipino workers (OFWs) and
Filipino immigrants of different occupational groups in 26 countries and territories
around the world. It is not dependent on a single customer or a few customers. Neither
is there a single customer that accounts for, or will account for, 20% or more of the
Company’s sales.
Over nine (9) million Filipinos, or around 10% of the Philippine population, work abroad
as nurses, doctors, domestic helpers, engineers, educators, musicians, entertainers,
seafarers, doctors, laborers, caregivers, manufacturing workers, electricians,
information technology professionals, and in other roles. The Philippine Overseas
Employment Administration estimates that such Filipinos are in present in 194 countries
and territories around the world, the largest groups being in the United States, Saudi
Arabia, Canada, Japan, Malaysia, Australia, United Arab Emirates, Hong Kong,
Taiwan, Italy, Singapore, and the United Kingdom.
In its Migration and Development Brief dated December 1, 2011, the World Bank
reported that officially recorded remittance flows to developing countries are estimated
to have reached USD351 billion in 2011, up 8% over 2010.
For the first time since the global financial crisis, remittance flows to all six developing
regions rose in 2011. Growth of remittances in 2011 exceeded the World Bank’s earlier
expectations in four (4) regions, especially in Europe and Central Asia (due to higher
outward flows from Russia that benefitted from high oil prices) and Sub-Saharan Africa
(due to strong south-south flows and weaker currencies in some countries that attracted
larger remittances). By contrast, growth in remittance flows to Latin America and
Caribbean was lower than previously expected, due to continuing weakness in the U.S.
economy and Spain. Flows to Middle East and Africa were also impacted by the “Arab
Spring.”
Following this rebound in 2011, the growth of remittance flows to developing countries
is expected to continue at a rate of 7-8 percent annually to reach USD441 billion by
2014. Worldwide remittance flows, including those to high-income countries, are
expected to exceed USD590 billion by 2014.
However, the World Bank believes there are serious downside risks to this outlook.
Persistent unemployment in Europe and the U.S. is affecting employment prospects of
existing migrants and hardening political attitudes toward new immigration. Volatile
exchange rates and uncertainty about the direction of oil prices also present further
risks to the outlook for remittances.
Recently, the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) reported
that the remittances of Filipino workers reached USD20.117 billion representing a 7.2%
growth over the USD18.763 billion in 2010.
The stable flow of remittances continued to provide strong support to domestic demand,
with the remittance level for the year amounting to close to 10 percent of the country’s
gross domestic product (GDP). The major driving factors that helped accelerate the
growth of remittances were the diversity of the destinations and skills of overseas
Filipinos combined with the expanding network of bank and non-bank service providers
both in the Philippines and around the world. The continuing innovation in financial
products and services (e.g., web-based remittance services, automated remittance
machines, reloadable/reusable money/cash cards, among others) being offered in the
market to facilitate money transfers have likewise contributed to the resilience of
remittances throughout the year.
In 2012, the Bangko Sentral ng Pilipinas sees remittance growth slowing down to 5
percent as a consequence of a more subdued global outlook.
16

Transactions and/or Dependence on Related Parties
The Company has transactions with its subsidiaries and associates abroad, i.e., the
remittance centers that accept transactions from its customers, mostly OFWs, in
Australia, Austria, Canada, Hong Kong, New Zealand, Singapore, and the United
Kingdom. These transactions primarily consist of delivery services for a fee.
Pursuant to the Company’s usual course of business, it also advances funds to its
subsidiaries, associates and affiliates. These are accounts receivable from subsidiaries,
associates and affiliates pertaining to remittance transactions. It also consists of
advances made to subsidiaries, associates, and affiliates for working capital to maintain
cash balances in bank accounts and other financial and operating requirements. The
account receivables are usually settled on the next banking day. On the other hand,
advances for financial and operating requirements are due on demand.
The Company leases office space from Oakridge Properties, a related party.
The Company has office sharing arrangements with Surewell Enterprises, Ltd. in Hong
Kong and Surewell Equities Pte. Ltd. in Singapore, both being related companies.
The Company maintains peso deposit accounts and has a revolving credit facility with
Sterling Bank of Asia, Inc., a related party.
Significant Agreements and/or Commitments
The Company conducts its remittance and collection business internationally by
organizing wholly-owned corporations, entering into joint ventures, and signing
Memoranda of Agreements (MOA) with individuals and corporations in various
countries and territories; these include: Australia, Austria, Bahrain, Bermuda, Brunei,
Canada, Greece, Hong Kong, Ireland, Israel, Italy, Jordan, Lebanon, Malaysia, Marshall
Islands, the Netherlands, Qatar, Saipan, Singapore, Spain, Taiwan, the United Arab
Emirates, and the United States of America.
The Memoranda of Agreement entered into with individuals and corporations in various
countries and territories follow a general format with minor variations. Generally, the
MOAs entered into on or after 2004 provide that I-Remit retain exclusive proprietary
rights over its I-Remit Foreign Remittance System which the foreign parties will use to
implement the remittance arrangement. MOAs entered into on or before 2003 do not
contain this provision. All MOAs, however, are aimed at limiting I-Remit’s exposure by
specifying that: (i) the foreign parties are not agents but independent contractors; (ii) the
foreign parties shall be shall be responsible for compliance with all applicable laws in
their respective countries and territories; and (iii) funds must first be deposited to an I-
Remit bank account before the Company shall release the same to the intended
beneficiaries in the Philippines. Contracts executed on or after 2004 also stipulate
amicable settlement or arbitration as the mode of settlement of disputes and provides
for the exclusive jurisdiction of the Philippine courts. New contracts with tie-ups require
bond or advanced payment cover in order to fulfill the delivery of any transaction. The
bond or “advanced payment cover” is deposited to an I-Remit-designated bank account
that serves as collateral.
The bulk of the MOAs executed in the Philippines cover the arrangement between the
Company and various companies and institutions, such as commercial banks, thrift
banks, and pawnshops for the appointment of the latter to provide pay-out stations
through their branches for the Company’s notify-to-pay services.
Certain MOAs also involve the appointment of the Company as a collection agent for
the remittance of amortization payments, loan payments, premiums, and contributions
for government financial institutions and agencies consisting of the Social Security
System (SSS), Overseas Workers Welfare Administration (OWWA), Home
Development Mutual Fund (HDMF or Pag-IBIG Fund), Philippine Retirement Authority
(PRA) and the Philippine Health Insurance Corporation (PhilHealth), and various preneed
and real estate development companies.
17

Principal Terms and Expiration Dates of All Patents, Trademarks, Copyrights, Licenses,
Concessions, and Royalty Agreements Held
The Company is duly registered as a Remittance Agent (RA) with the Bangko Sentral
ng Pilipinas (BSP) subject to applicable provisions of law and BSP rules and
regulations, as well as the provisions of the Anti-Money Laundering Act of 2001
(Republic Act. No. 9160, as amended by Republic Act. No. 9194) and its implementing
rules and regulations, with Certificate No. FX-2005-000364 issued by the BSP on May
10, 2005.
Licenses are held by I-Remit’s subsidiaries and affiliates that are registered in their host
countries in Australia, Austria, Canada, Hong Kong, New Zealand, Singapore, Taiwan,
and the United Kingdom. The said licenses are subject to compliance with mandatory
reportorial requirements. To secure these licensing rights, I-Remit ensures compliance
with all the reportorial requirements of the host countries.
I-Remit, Inc. is registered with and is supervised by the Bangko Sentral ng Pilipinas with
Registration No. FX-2005-000364.
I-Remit, Inc. has been entered in the Australian Transaction Reports and Analysis
Centre (AUSTRAC) Remittance Sector Register with registered remittance network
provider number is RNP100035640-001 effective April 13, 2012.
International Remittance (Canada) Ltd. is registered with the Financial Transactions
and Reports Analysis Centre of Canada (FINTRAC) as a money service business with
registration number M08160706.
IRemit Global Remittance Ltd. has been granted authorization by the Financial Services
Authority to carry on payment services activities from April 15, 2011 under the Payment
Services Regulations 2009 of the United Kingdom with FSA reference number 537568.
IRemit Global Remittance Ltd. is registered with HM Customs and Excise with Money
Laundering Registration Number 1213085.
IRemit Global Remittance Ltd.’s branch in Rome, Italy was included by the Banca D’
Italia in the Register of Payment Institutions effective July 7, 2011 with identification
code 36023.0.
IRemit Singapore Pte. Ltd. has been issued a license by the Monetary Authority of
Singapore to carry on the remittance business with RA No. 01038.
K.K. I-Remit Japan is registered with the Kanto Local Finance Bureau with Registration
No. KLFB00019.
I-Remit offers its products and services through the “I-Remit” trademark and/or trade
name. In addition, most of the Company’s subsidiaries and associate companies use
the “I-Remit” name.
18

I-Remit has registered the following patents, trademarks and/or trade names:
Name/Trademark Date Filed Date Registered
I-Remit Name and Logo January 20, 2004
Application No. 4-2004-
0000529
I-Load June 16, 2004
Application No. 4-2004-
0005251
I-Travel June 16, 2004
Application No. 4-2004-
0005252
I-Pay June 16, 2004
Application No. 4-2004-
0005253
iDol July 8, 2004
Application No. 4-2004-
0006066
I-Serve February 14, 2008
Application No. 4-2008-001818
I-Value February 14, 2008
Application No. 4-2008-001819
I-Reward February 14, 2008
Application No. 4-2008-001816
I-Care February 14, 2008
Application No. 4-2008-001817
I-Remit Trademark
I-Remit Trademark
I-Remit Trademark
June 23, 2006
e-Filing No. 125586
September 18, 2009
Application No. 145s2333
19
December 11, 2006
Registration No. 4-2004-000529
Registered for a term of 10 years
from date of registration
January 21, 2006
Registration No. 4-2004-0005251
Registered for a term of 10 years
from date of registration
October 1, 2005
Registration No. 4-2004-0005252
Registered for a term of 10 years
from date of registration
October 1, 2005
Registration No. 4-2004-0005253
Registered for a term of 10 years
from date of registration
July 30, 2006
Registration No. 4-2004-006066
Registered for a term of 10 years
from date of registration
December 15, 2008
Registration No. 4-2008-001818
Registered for a term of 10 years
from date of registration
September 8, 2008
Registration No. 4-2008-001819
Registered for a term of 10 years
from date of registration
December 1, 2008
Registration No. 4-2008-001819
Registered for a term of 10 years
from date of registration
September 8, 2008
Registration No. 4-2008-001819
Registered for a term of 10 years
from date of registration
June 23, 2006
Trademark No. T06/12356G
Registry of Trademarks, Property
Office of Singapore
November 1, 2007
New Zealand Trademark Registration
No. 778760
Registered for a term of 10 years
from date of registration
Registration pending; for publication
in Trademarks Journal (Canada)

I-Remit has licenses to the following information technology software and systems used
in its operations:
Software / System,
Acquisition and License / Renewal of
Version Purpose
Effectivity Maintenance Service
Enterprise Resource The General Ledger Version 3.2 acquired Support agreement is
Information and Control module serves as the in 2002; upgraded to renewed every year
(ERIC) Financial Suite central financial data version 5.2 in 2006;
(General Ledger & repository that allows for perpetual license
Accounts Payable) convenient and accurate
Version 5.2, Jupiter preparation of the
Systems, Inc.
Company’s financial
statements. The Accounts
Payable module manages
supplier payables and
disbursements.
Enterprise Resource The Payroll module is used Acquired in 2007; Support agreement is
Information and Control for employees’ pay perpetual license renewed every year
(ERIC) Payroll, Human computation, payroll
Resource Management, processing, and statutory
Timecard, Version 5.2, reporting. The Human
Jupiter Systems, Inc. Resource Management
module is used for
capturing 201-file
information and recordkeeping.
The Timecard
module is used in
recording and processing
employee working hours.
Microsoft SQL Server A relational data base Version 2000, Software assurance
2000 (Standard Edition), management system used acquired on October will end on February
Microsoft Corporation for the “back-end” data 31, 2005;
28, 2011
base of I-Remit’s
Version 2008,
remittance system acquired on February
27, 2009;
perpetual license
Microsoft SQL Server – A relational data base Version 2008, Software assurance
Enterprise Edition management system used acquired on February will end on February
for the “back-end” data 27, 2009; perpetual 28, 2011
base of I-Remit’s
remittance system
license
Microsoft Exchange A messaging and
Version 2003,
Server, 2003 and 2007 – collaborative software acquired on August
Enterprise Edition used for the electronic mail 11, 2006; additional
system of I-Remit, Inc. licenses acquired on
September 27, 2007;
perpetual license
Internet Service
Used as an internal firewall Acquired on August
Accelerator 2004
11, 2006
Microsoft Office – Small Software used in creating Version 2003,
Business
documents, files and acquired on October
reports
31, 2005; version
2007, acquired on
November 20, 2008;
perpetual license
20

Software / System,
Acquisition and License / Renewal of
Version Purpose
Effectivity Maintenance Service
Microsoft Windows Operating system used in Version 2003,
Server – Enterprise and servers
acquired on October
Standard Edition
31, 2005; additional
licenses acquired on
August 31, 2006,
September 30 &
October 31, 2007,
March 31 & October
31, 2008;
Version2008,
acquired February
27, 2009
Power Builder Software development tool Version 11.1,
acquired on
November 18, 2008
Kaspersky Anti-Virus Anti-virus system Open space security, Support agreement is
acquired in May 2009 renewed every year
Adobe Acrobat Reader File management Version 8 and 9
Hitachi Data Protection Backup and replication Version 7 and 8, Support agreement is
Suite (Commvault) software
acquired in 2009 renewed every year
VeriSign SSL Certificate SSL certificates for data Acquired in 2009 Support agreement is
encryption
renewed every year
Need for Any Government Approval of Principal Products or Services
There are no new products or services that require government approval.
Effect of Existing Probable Governmental Regulations on the Business
The normal operations of the Company is not adversely affected by any existing
governmental regulation nor is it expected that any probable governmental regulation
would have an adverse effect on the operations of the Company.
Other than the reportorial requirements of the Securities and Exchange Commission
(SEC), the Bangko Sentral ng Pilipinas (BSP), the Anti-Money Laundering Council
(AMLC), the Bureau of Internal Revenue (BIR), and the local permits that are required
by the City Government of Pasig, there is no other governmental permit required of the
Company for its operation in the Philippines. The Company is in full compliance with
the requirements of the SEC, BSP, AMLC, BIR and of the local government.
Licenses are held by the Company’s subsidiaries and affiliates that are registered in
their respective host countries in Australia, Austria, Canada, Hong Kong, Singapore,
Taiwan and the United Kingdom. The said licenses have no expiration dates but are
subject to compliance with mandatory reportorial requirements. The Company has
complied with all such reportorial requirements.
Amount Spent on Research and Development Activities
There is no material amount spent for research and development.
Costs and Effects of Compliance with Environmental Laws
The Company has not been subject to any penalties or legal or regulatory action and
has not incurred any costs for non-compliance with environmental laws or regulations of
the Philippines.
21

Employees
The Company has 369 employees including those directly employed by subsidiaries as
of December 31, 2011. These consist of 68 officers and 301 non-officers as follows:
No. of Employees (December 31, 2011)
Officers Non-Officers Total
Parent Company 44 181 225
Subsidiaries 24 120 144
Total 68 301 369
The Company projects no new additional personnel in 2012.
Type No. of Employees
Administrative 32
Finance 63
Information Technology 19
Sales and Marketing 36
Service and Operations 219
Total 369
None of the Company, its subsidiaries, affiliates and associate companies is subject to
any collective bargaining agreement (CBA). There has been no strike, nor any attempt
to protest against the Company, its subsidiaries and associates during their entire
histories.
The supplemental benefits that the Company grants to its employees include medical,
dental and hospitalization benefits, per diem and travel allowances, group insurance,
birthday bonuses, meal and overtime allowances, and bereavement assistance.
Employees are also entitled to vacation, sick, maternity, paternity, and emergency
leaves. The Company provides the health and medical insurance benefits to its
employees through an independent health maintenance organization (HMO).
The Parent Company has a noncontributory defined benefit retirement plan covering
substantially all of its regular employees. Under this retirement plan, all qualified
employees are entitled to cash benefits after satisfying age and service requirements.
Under Republic Act No. 7641, also known as Retirement Pay Law, its applicability is
effective on the fifth year of an employee’s tenure, provided that the employee is 60
years old but not more than 65 years old.
The Company continues to invest in its employees through various training programs
strategically focused on the Company’s core values, team development, selling skills,
customer service and product knowledge.
22

Risk Management
The Company’s goal in risk management is to ensure that it understands, measures,
and monitors the various risks that arise from its business activities, and that it adheres
strictly to its established risk management policies.
Periodic strategic planning sessions and meetings by top management, and the various
management and Board committees are being held to identify, assess and formulate
contingency plans to manage or minimize the adverse impact of risks to the Company.
The Board performs an oversight role for the Company’s risk management activities
and approves I-Remit’s risk management policies and any revisions thereto. The Chief
Executive Officer, as the overall risk executive, oversees the risk management activities
of the Company and ensures that the responsibilities for managing risk are clear, the
levels of risk taken on by the Company is acceptable, and that an effective control
environment is in place.
Risk management is an integral part of the day-to-day business management of the
Company and each operating unit has a responsibility to measure, manage, and
controls the risks associated with the functions they perform.
There are three (3) major risks involved in the business of the Company: credit risk,
market risk, and operational risk.
Credit risks are risks that arise when a counter-party in a transaction may default and
cause a possible loss to the Company. The nature of its business exposes the
Company to potential risk from difficulties in recovering transaction money from its
foreign partners. Accounts receivable from foreign offices and agents arise as a result
of its remittance operations in various regions of the globe. In order to address this, the
Company has maintained the following credit policies: (i) enforce a contract that
incorporates a bond and advance payment cover such that the full amount of the
transactions will be credited to the Company prior to their delivery to the beneficiaries
which applies generally to all new agents of the Company and in certain cases, to old
agents, the advance funding equivalent to their average daily remittance transactions,
to fulfill or deliver their remittance transactions; (ii) all foreign offices and agents must
settle their accounts following the next banking day settlement policy, otherwise, the
fulfillment or delivery of their remittance transactions will be put on hold; (iii) evaluation
of individual potential partners and preferred associates’ credit worthiness, as well as a
close look into the other pertinent aspects of their businesses which assures the
Company of the financial soundness of its partner firms; (iv) receivable balances are
monitored daily by the Company’s regional managers with the result that the
Company’s exposure to bad debts is not significant.
The Company’s accounts receivables from agents are highly collectible which have
turnovers ranging from one (1) to five (5) days. The other receivables which include
advances to related parties is also highly collectible which are due in less than one (1)
year.
23

Market risks, consisting of foreign exchange risk and interest rate risk, are the risks that
the value of a currency position or financial instrument will fluctuate due to changes in
foreign exchange rates and interest rates. The Company’s financial instruments
consist of short-term loans from banks and advances from stockholders. The main
purpose of these financial instruments is to raise funds for the Company’s fulfillment or
delivery of remittance transactions to beneficiaries. The Company also has various
financial assets and liabilities such as accounts receivable from agents and accounts
payable to beneficiaries, which arise directly from its remittance operations.
I-Remit provides money transfer and remittance services in 25 countries and territories.
Foreign exchange risk is managed through the structure of the business and an active
risk management process. In the substantial majority of its transactions, I-Remit settles
with its foreign offices, associates, and agents in their respective local currencies, and
requires the foreign offices, associates, and agents to obtain settlement currency to
provide to recipients. The foreign currency exposure that does exist is limited by the
fact that the majority of transactions are settled within a day or two (2) days after these
are initiated. In addition, in money transfer transactions involving different currencies
received and paid in Philippine pesos, I-Remit generates revenue by receiving a foreign
currency spread based on the difference between buying currencies at wholesale
exchange rates and providing the currencies to its customers at retail exchange rates.
This spread provides some protection against currency fluctuations. The Company’s
policy is not to speculate in foreign currencies and it promptly trades foreign currencies
as necessary to cover its payables and receivables.
It is the Company’s policy that all daily foreign currencies, which arise as a result of its
remittance transactions, must be traded daily with bank partners only at prevailing
foreign exchange rates in the market. The daily closing foreign exchange rates are
used as the guiding rates in providing wholesale rates to foreign offices and agents,
respectively. The trading proceeds are used to pay out bank loans and other
obligations of the Company.
The Company is exposed to short-term interest rate risks on its peso-denominated
bank credit facilities. The Company’s exposure to cash flow interest rate risk is
minimal. It is the policy of the Company to manage its interest cost by entering into
fixed short-term debt.
24

Operational risks are risks of losses resulting from inadequate or failed internal
processes, people and systems or from external events, such as those resulting from
fraud or defalcations from internal or external sources, or actual financial losses arising
from failed processes, systems and procedures.
The Company’s main goal in managing operational risk is to create and maintain an
operating environment that ensures and protects the integrity of its financial resources,
assets, transactions, records, and information resources. The Company attempts to
mitigate operational risks by maintaining a comprehensive system of internal controls,
establishing standard systems and procedures, implementing a system to monitor
transactions, maintaining key back-up procedures, and undertaking regular contingency
planning.
The Company has operating manuals detailing the procedures for the processing of its
remittance transactions, the implementation of its various business processes, and the
use of its information technology resources. These operating manuals undergo
periodic reviews and revisions, if needed. Amendments to these manuals are
implemented through circulars sent to all divisions and offices of the Company.
Transactions and items of value are subject to a system of dual control whereby the
work of one person is verified by a second person to ensure that the transaction is
properly authorized, recorded, and settled.
Independent reviews are regularly conducted by the Internal Audit Department to
ensure that risk controls are in place and functioning effectively. The Internal Audit
Department undertakes a comprehensive audit of all divisions and departments in
accordance with a risk-based audit plan. It conceptualizes and recommends the
implementation of an improved system of internal controls, to minimize operational
risks. The Audit Plan for each fiscal year is approved by the Audit Committee of the
Board of Directors. These audits also include the area of information security that
covers application systems, databases, networks, and operating systems.
Recognizing the importance of customer service in its operations, the Company has a
Customer Support Team composed of a dedicated and highly-trained team of Country
Customer Care Officers (3COs) who support the foreign offices, associates, and the
Company’s customers and their beneficiaries. The Company provides 24 x 7 customer
service support and minimizes operational risks by ensuring accuracy and effectiveness
in operations and in the delivery of services.
The Company also has a Business Continuity Plan (BCP) that outlines the activities
and the procedures to be undertaken in the event of abnormal or emergency
conditions, or a disaster, to ensure that disruption to operations will be kept at a
manageable level, financial losses will be minimized, the safety and security of
employees, customers, and Company records will be maintained, and normal
operations will be restored in the shortest time possible. I-Remit maintains a disaster
recovery (DRP) site with Globe Telecom/Innove Communications in Makati City.
25

The other risks identified are: regulatory risk, legal risk, and technology risk.
Regulatory risk refers to the potential for the Company to suffer financial losses due to
changes in the laws or monetary, tax or other governmental regulations of the
Philippines or of a country. Losses may be in the form of regulatory sanctions for noncompliance,
and in extreme cases, may involve not just mere loss in terms of reputation
or financial penalties, but a revocation of the license, charter or franchise.
The Company’s Compliance Program, the implementation of which is overseen and
coordinated by the Compliance Officer, is the primary control process for regulatory risk
issues. The Compliance Officer is responsible for communicating and disseminating
new rules and regulations to all concerned units, analyzing and addressing compliance
issues, and reporting compliance findings to the Management Committee, Executive
Committee or the Board of Directors.
I-Remit’s subsidiaries, associates, affiliates, tie-ups and agents have and maintain all
licenses and permits necessary to provide remittance and money transfer services in
their host countries. Compliance officers are appointed in each of the Company’s
foreign offices whose primary responsibility is to ensure compliance with all local rules,
regulations, laws, and licensing requirements.
The Anti-Money Laundering Act (AMLA) of 2001 (Republic Act 9160) was passed into
law on November 29, 2001 and was subsequently amended on March 23, 2003
(Republic Act 9194). The AMLA created the Anti-Money Laundering Council (AMLC)
which is composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as
Chairman, and the Commissioner of the Insurance Commission and the Chairman of
the Securities and Exchange Commission as Members. The AMLC discharges the
functions enumerated in the AMLA, which basically regulates the transfer of funds via
the route of covered institutions.
As remittance agents are covered by the AMLA, the Bangko Sentral ng Pilipinas issued
BSP Circular No. 471, Series of 2005 on January 24, 2005 that prescribed rules and
regulations that govern the registration and operations of foreign exchange dealers,
money changers, and remittance agents. On January 5, 2011, the BSP issued BSP
Circular 706 Series of 2011 that prescribes updated anti-money laundering rules and
regulations.
The Company requires its subsidiaries, associates, and agents to validate the true
identity of a customer based on official or other reliable identifying documents or
records before accepting a transaction. The Company is required to submit a report on
“covered” transactions and “suspicious” transactions involving a single transaction in
cash or other monetary instruments in excess of PHP 500,000 within one (1) banking
day from the date of said transaction or from the date the Company gained information
that the transaction was done for the purpose of laundering proceeds of criminal or
other illegal activities or from the time the Company had reasonably suspected that said
transactions were entered into for the purpose of laundering proceeds of criminal and
other illegal activities.
The Company is required to establish and record the identities of its clients based on
official documents. The BSP requires all registered remittance agents to maintain
accurate and meaningful originator information on funds transferred or remitted by
requiring the sender or remitter to fill-out and sign an application form, which shall
contain minimum data and information, such as the printed name and signature of the
remitter, permanent address, nationality, amount and currency to be remitted and
source of foreign currency for individuals. For corporate or juridical entities, in addition
to a signed application form containing the applicable information for individual
customers, the requirement includes a photocopy of the authority and identification of
the person purporting to act in behalf of the client shall be required. In addition, all
records of transactions are required to be maintained and stored for five (5) years from
the date of a transaction.
26

The Company has adopted the anti-money laundering/counter-terrorism financing
(AML/CFT) policies and guidelines that are part of its Compliance Program. These
policies and guidelines cover areas such as the customer due diligence process (“Know
Your Customer” rule), large cash transactions, record-keeping, large cash and
suspicious transaction reporting, and AML/CFT training of employees. These policies
and guidelines are based on the Financial Action Task Force (FATF) 40
Recommendations and 9 Special Recommendations, and were formulated to ensure
compliance with the requirements of the AMLA and BSP Circular 706 Series of 2011.
I-Remit’s foreign subsidiaries, associates, and agents are required to comply with the
anti-money laundering regulations of their host countries to ensure that funds being
sent through the I-Remit foreign system are of lawful and verifiable origin. Among
others, remitters are required to present documents such as proofs of identification,
residency, and financial origin as required by local regulations of the host countries.
Remitted amounts are also subject to the prescribed transmission limits of the monetary
authorities or the financial intelligence units. I-Remit’s subsidiaries, associates, and
agents are registered with the various financial and central monetary authorities
globally such as the Office of the Superintendent of Financial Institutions (Canada), the
Hong Kong Monetary Authority, the Monetary Authority, etc. I-Remit’s subsidiaries,
associates, and agents are registered with and submit periodic reports, when required,
to the financial intelligence units (FIUs) of their host countries such as the Australian
Transaction Reports and Analysis Centre (AUSTRAC), Financial Transactions and
Reports Analysis Centre (FINTRAC) of Canada, the Joint Financial Intelligence Unit
(JFIU) in Hong Kong, Her Majesty’s Customs and Excise (United Kingdom), etc. In
ensuring compliance across the different locations, I-Remit’s Foreign System is linked
to the databases of the Office of Foreign Assets Control (OFAC) of the US Department
of the Treasury (Specially Designated Nationals and Blocked Persons List), Office of
the Superintendent of Financial Institutions (OSFI) of Canada (Consolidated List of
Names Subject to the Regulations Establishing a List of Entities Made Under
Subsection 83.05[1] of the Criminal Code or the Regulations Implementing the United
Nations Resolutions on the Suppression of Terrorism or the United Nations Al-Qaida
and Taliban Regulations), European Union (EU) (Consolidated List of Persons, Groups
and Entities Subject to EU Financial Sanctions), and United Nations Security Council
Consolidated List Established and Maintained by the 1267 Committee with respect to Al
Qaida, and the Taliban, and other individuals, groups, undertakings and entities
associated with them to filter specially-designated nationals and blocked individuals.
Regulatory risk also includes the strict monitoring or the limitation on the entry of foreign
workers entering specific countries by their respective governments. Governments of
some concerned nations have implemented strict monitoring measures on the number
and types of foreign workers entering their respective countries because some of their
citizens have incessantly blamed their inability to obtain jobs on the increasing
competition from foreign migrant workers. By nature, the Philippine remittance industry
relies heavily on the number of OFWs residing or working abroad, and sending money
to the Philippines. Any decline in the growth of OFW deployment as a result of
regulations or restrictions imposed by host countries may hamper the overall growth of
the remittance industry.
Legal risk refers to the uncertainty of the enforceability of the obligations of the
Company’s business partners, agents, tie-ups, and suppliers. Changes in law and
regulations could adversely affect the Company. Legal risk is higher in new areas of
business where the law is often untested by the courts. The Company seeks to
minimize its legal risks by using stringent legal documentation, employing procedures
designed to ensure that transactions are properly authorized, and by constantly
consulting its external legal counsels locally and in the countries it operates in.
27

The delivery of financial services is characterized by rapid technological change,
changing customer preferences, the introduction of new products and services, and the
emergence of new standards. The Company realizes the potential losses arising from
the breakdown or malfunction of computer systems as well as from the misuse of its
infrastructure and networks. The Company gives importance to computer security and
has a comprehensive information technology security policy. The Company defines
and maintains information security policies that follow industry standards, such as the
use of firewalls, secure socket layer (SSL) encryption, anti-virus measures, and userdefined
access controls. The Company’s major application systems have multiple
security features to protect the integrity of applications and data.
Access to I-Remit’s Foreign System via the Internet has several security restrictions
including firewalls, secure socket layers using 128-bit encryption, digital certificates and
password identification. All remittance transactions are encrypted with hash totals / test
keys to ensure authenticity of transaction details. “Check and balance control” is
implemented across the procedure cycle from foreign offices, associates, and agents to
the I-Remit office in Manila.
Most of the information technology assets including critical servers are located in a
centralized data center at the Company’s headquarters, which are subject to
appropriate physical and logical access controls. Likewise, the systems are designed
to be redundant to ensure continuity of business operations in the event of unforeseen
events or disasters. The system also has parallel servers concurrently operating and
connected to different ISP providers to ensure non-disruption of its operations.
Other Information
No bankruptcy, receivership or similar proceedings have been instituted against the
Company and its subsidiaries, affiliates or associates. Furthermore, no material
reclassification, merger, consolidation, or purchase or sale of a significant amount of
assets not in the ordinary course of business has taken place.
28

Item 2. Properties
(B) Description of Property
I-Remit and its subsidiaries do not own any real estate properties. I-Remit is leasing its headquarters
located at the 25 th , 26 th , and 27 th floors of the Discovery Centre, a condominium office and residential
building, located at 25 ADB Avenue, Ortigas Center, Pasig City from Oakridge Properties, Inc. In
addition, certain departments of the Company are holding office at the 8 th floor of the Wynsum
Corporate Plaza, a condominium office building located at 22 F. Ortigas Jr. Road (formerly Emerald
Avenue), Ortigas Center, Pasig City.
I-Remit and Oakridge Properties, Inc. are related to each other by virtue of JTKC Equities’ ownership
of the Discovery Leisure Company, Inc. which in turn owns Oakridge Properties, Inc. JTKC Equities,
Inc. is one of the Company’s major shareholders.
The lease on the unit at the 25 th floor of the Discovery Centre (Unit 2503), consisting of an area of
199.70 square meters, is covered by an operating lease agreement which was extended for a term of
six (6) months, commencing on February 1, 2012 and ending on August 31, 2012, with a 10 percent
escalation on the aggregate current monthly rental on the 13 th month of the lease term. The lease may
be renewed under terms and conditions mutually agreed upon by the parties 90 days prior to the
expiration of the contract of lease. At the start of the lease, for the use and occupancy of the
premises, the Company paid Oakridge Properties, Inc. the amount of PHP 658.85 per square meter
every month or its equivalent monthly rental of PHP131,572.35.
The lease on the unit at the 26 th floor of the Discovery Centre (Unit 2603), consisting of an area of
199.70 square meters, is covered by an operating lease agreement with a term of two (2) years,
commencing on December 1, 2011 and ending on November 30, 2013, with a 10 percent escalation
on the aggregate current monthly rental on the 13 th month of the lease term. The lease may be
renewed under terms and conditions mutually agreed upon by the parties 90 days prior to the
expiration of the contract of lease. I-Remit, as lessee, pays Oakridge Properties, Inc. every month the
amount of PHP798.60 per square meter or its equivalent monthly rental of PHP159,480.42.
The lease on the units at the 26 th floor of the Discovery Centre (Units 2604 and 2605) with an
aggregate useable floor area of 278.00 square meters and 273.80 square meters, is covered by an
operating lease agreement with a term of two (2) years, commencing on December 1, 2011 and
expiring on November 30, 2013, with a 10 percent escalation on the aggregate current monthly rental
on the 13 th month of the lease term. The lease may be renewed under terms and conditions mutually
agreed upon by the parties 90 days prior to the expiration of the contract of lease. At the start of the
lease, I-Remit, as lessee, paid Oakridge Properties, Inc. every month the amount of PHP827.21 per
square meter or its equivalent monthly rental of PHP456,454.48.
The lease on the unit at the 27 th floor of the Discovery Centre (Unit 2703) with an aggregate useable
floor area of 199.70 square meters, is covered by an operating lease agreement with a term of two (2)
years, which commenced on February 1, 2011 and expires on January 31, 2013, with an escalation
rate of 10 percent on the 13 th month of the lease term. The lease may be renewed under terms and
conditions mutually agreed upon by the parties 90 days prior to the expiration of the contract of lease.
At the start of the lease, I-Remit, as lessee, paid Oakridge Properties, Inc. every month the amount of
PHP671.00 per square meter or its equivalent monthly rental of PHP133,998.70.
The above monthly rentals with respect to the lease contracts with Oakridge Properties, Inc. exclude
charges for air-conditioning and electricity or generator set during brown-out, water, and other charges
such as association dues, parking fees, overtime pay of janitors and technicians which are borne by
I-Remit.
The lease on the unit at the 8 th floor of the Wynsum Corporate Plaza with an aggregate useable floor
area of 287 square meters and five (5) parking spaces, are covered by an operating lease agreement
with a term of two (2) years, commencing on September 1, 2010 and expiring on August 31, 2012.
The lease may be renewed under terms and conditions mutually agreed upon by the parties 90 days
prior to the expiration of the contract of lease. I-Remit, as lessee, paid Wynsum Realty Developer,
Inc. the rent on the condominium unit in the amount of PHP550.00 per square meter or its equivalent
of PHP 157,850.00 every month and on the five (5) parking spaces in the amount of PHP17,500.00
every month, both not subject to escalation.
The above monthly rentals with respect to the lease contract with Wynsum Realty Developer, Inc.
exclude charges for air-conditioning, electricity, gas, telephone and other charges such as association
dues, which are borne by I-Remit.
29

Current Rent
per Month
Contract Period
exclusive of Term
Unit & Location Address Area (sqm) VAT (PHP) (years) Start End
Unit 2503, 25/F 25 ADB Avenue, Ortigas 199.70 131,572.35 6 months Feb. 1, Aug. 31,
Discovery Centre Center, Pasig City
extension 2012 2012
Unit 2603, 26/F 25 ADB Avenue, Ortigas 199.70 159,480.42 2 Dec. 1, Nov. 30,
Discovery Centre Center, Pasig City
2011 2013
Unit 2604 & 2605, 25 ADB Avenue, Ortigas 551.80 456,454.48 2 Dec. 1, Nov. 30,
26/F Discovery
Centre
Center, Pasig City
2011 2013
Unit 2703, 27/F 25 ADB Avenue, Ortigas 199.70 133,998.70 2 Feb. 1, Jan. 31,
Discovery Centre Center, Pasig City
2011 2013
8/F Wynsum 22 F. Ortigas Jr. Road, 287.00 157,850.00 2 Sep. 1, Aug. 31,
Corporate Plaza Ortigas Center, Pasig
City
2010 2012
Five (5) parking 22 F. Ortigas Jr. Road, --- 17,500.00 2 Sep. 1, Aug. 31,
spaces, Wynsum Ortigas Center, Pasig
2010 2012
Corporate Plaza City
Rent expense pertaining to the above leased office spaces by the Parent Company, from Oakridge
Properties and Wynsum Realty amounted to PHP12.06 million in 2011, PHP11.01 million in 2010, and
PHP10.55 million in 2009.
I-Remit has office sharing arrangements with Surewell Equities (Singapore) Pte. Ltd. in Singapore.
Mr. Bansan C. Choa, Chairman and Chief Executive Officer of I-Remit, is also a shareholder in both
companies.
I-Remit’s subsidiaries have their respective operating lease agreements for their office spaces. The
lease contracts are for periods ranging from 1 to 10 years and may be renewed under the terms and
conditions mutually agreed upon by the subsidiaries and the lessors.
The Group’s rent expense includes operating lease agreements entered into by the subsidiaries for
the use of its office spaces. Rent expense of the Group amounted to PHP 56.52, PHP 50.38, and
PHP39.33 million in 2011, 2010, and 2009, respectively.
The Group does not expect any purchase of significant properties in the next twelve (12) months.
30

Item 3. Legal Proceedings
(C) Legal Proceedings
The Parent Company is not involved in nor are any of its properties subject to, any material legal
proceeding that could potentially affect its operations and financial capabilities.
Item 4. Submission of Matters to a Vote of Security Holders
Except for matters taken up during the annual meeting of stockholders, there were no matters
submitted to a vote of security holders during the period covered by this report.
31

PART II. OPERATIONAL AND FINANCIAL INFORMATION
Item 5. Market for Issuer’s Common Equity and Related Stockholder Matters
(A) Market Price of and Dividends on Registrant’s Common Equity and Related Stockholder Matters
(1) Market Information
The common shares of the Parent Company are traded in the Philippine Stock Exchange
(PSE).
Quarter end stock price ranges for 2009 were as follows:
Quarter Ending Date High Low Close
Mar. 31, 2009 PHP 4.80 PHP 3.70 PHP 4.45
Jun. 30, 2009 PHP 4.65 PHP 4.00 PHP 4.10
Sep. 30, 2009 PHP 4.60 PHP 3.85 PHP 4.00
Dec. 31, 2009 PHP 7.00 PHP 3.70 PHP 6.10
Quarter end stock price ranges for 2010 were as follows:
Quarter Ending Date High Low Close
Mar. 31, 2010 PHP 6.20 PHP 4.70 PHP 4.85
Jun. 30, 2010 PHP 5.00 PHP 4.25 PHP 4.40
Sep. 30, 2010 PHP 4.85 PHP 3.44 PHP 4.00
Dec. 31, 2010 PHP 4.08 PHP 3.20 PHP 3.34
Quarter end stock price ranges for 2011 were as follows:
Quarter Ending Date High Low Close
Mar. 31, 2011 PHP 3.67 PHP 3.00 PHP 3.10
Jun. 30, 2011 PHP 3.26 PHP 2.80 PHP 3.00
Sep. 30, 2011 PHP 3.26 PHP 1.91 PHP 2.25
Dec. 31, 2011 PHP 2.50 PHP 2.00 PHP 2.45
The closing price of the Company’s common shares as of the latest practicable trading date,
i.e., April 12, 2012, is PHP 2.47 per share.
32

(2) Holders
There were eighteen (18) common shareholders of record as of December 31, 2011.
Common shares amounted to 617,725,800* as of December 31, 2011.
* Inclusive of 14,873,000 common shares purchased by the Company under its stock buy-back
program.
The top twenty (20) common shareholders as of December 31, 2011, the number of shares
held and the percentage of total shares held by each are as follows:
Name Citizenship Total Shares
Percentage
(%)
1 PCD Nominee Corporation - Filipino Filipino * 240,775,288 38.9777
2 Star Equities Inc. Filipino 174,260,047 28.2099
3 Surewell Equities, Inc. Filipino 134,248,290 21.7327
4 JTKC Equities, Inc. Filipino 47,771,295 7.7334
5 JPSA Global Services Co. Filipino 18,700,000 3.0272
6 PCD Nominee Corporation – Non-Filipino Foreign 1,855,370 0.3004
7 Alba, Willy S. Filipino 88,000 0.0142
8 Lim, Nieves Q. &/or Charis Honeylet Q. Lim Filipino 10,000 0.0016
9 GTS Insurance Brokers Inc. Filipino 5,000 0.0008
10 Cruz, Napoleon D. Sr. and/or Luisa I. Cruz Filipino 3,000 0.0005
11 Soriano, Victor Martin J. Filipino 2,000 0.0003
12 Ona, Edgardo V. Filipino 2,000 0.0003
13 Simon, Dwight David M. and/or Corrine Jewel R. Simon Filipino 2,000 0.0003
14 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,000 0.0002
15 Hapi Iloilo Corporation Filipino 1,000 0.0002
16 M. J. Soriano Trading, inc. Filipino 1,000 0.0002
17 Au, Owen Nathaniel S. ITF: Li Marcus Au Filipino 400 0.0001
18 Gaw, Gilbert C. Filipino 110 0.0000
Total ** 617,725,800 100.0000
* Inclusive of 68,839,952 lodged common shares held by JTKC Equities, Inc., thus, its total
shareholdings is 116,611,247 representing 18.8775% ownership.
** Inclusive of 14,873,000 common shares purchased by the Company under its stock buy-back
program.
33

There were eighteen (18) common shareholders of record as of March 31, 2012. Common
shares amounted to 617,725,800* as of March 31, 2012.
* Inclusive of 14,873,000 common shares purchased by the Company under its stock buy-back
program.
The top twenty (20) common shareholders as of March 31, 2012, the number of shares held
and the percentage of total shares held by each are as follows:
Name Citizenship Total Shares
Percentage
(%)
1 PCD Nominee Corporation - Filipino Filipino * 240,773,588 38.9774
2 Star Equities Inc. Filipino 174,260,047 28.2099
3 Surewell Equities, Inc. Filipino 134,248,290 21.7327
4 JTKC Equities, Inc. Filipino 47,771,295 7.7334
5 JPSA Global Services Co. Filipino 18,700,000 3.0272
6 PCD Nominee Corporation – Non-Filipino Foreign 1,855,370 0.3004
7 Alba, Willy S. Filipino 88,000 0.0142
8 Lim, Nieves Q. &/or Charis Honeylet Q. Lim Filipino 10,000 0.0016
9 GTS Insurance Brokers Inc. Filipino 5,500 0.0009
10 Cruz, Napoleon D. Sr. and/or Luisa I. Cruz Filipino 3,300 0.0005
11 Soriano, Victor Martin J. Filipino 2,200 0.0004
12 Ona, Edgardo V. Filipino 2,200 0.0004
13 Simon, Dwight David M. and/or Corrine Jewel R. Simon Filipino 2,200 0.0002
14 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,100 0.0002
15 Hapi Iloilo Corporation Filipino 1,100 0.0002
16 M. J. Soriano Trading, inc. Filipino 1,100 0.0002
17 Au, Owen Nathaniel S. ITF: Li Marcus Au Filipino 400 0.0001
18 Gaw, Gilbert C. Filipino 110 0.0000
Total ** 617,725,800 100.0000
(3) Dividends
* Inclusive of 68,839,952 lodged common shares held by JTKC Equities, Inc., thus, its total
shareholdings is 116,611,247 representing 18.8775% ownership.
** Inclusive of 14,873,000 common shares purchased by the Company under its stock buy-back
program.
The Company’s Board of Directors is authorized to declare dividends. Pursuant to Sections 43
and 143 of the Corporation Code of the Philippines, Section 5 of the Securities Regulation
Code, and SEC Memorandum Circular No. 11, Series of 2008 (Guidelines on the
Determination of Retained Earnings Available for Dividend Declaration), dividends may be
declared and paid out of the unrestricted retained earnings which shall be payable in cash,
property, or stock to all stockholders on the basis of outstanding stock held by them, as often
and at such time as the Board of Directors may determine and in accordance with law and
applicable rules and regulations. Cash and property dividend declarations do not require any
further approval from the Company’s shareholders. Any stock dividend declaration requires
the approval of shareholders holding at least two-thirds of the Company’s total outstanding
capital stock.
Pursuant to existing Philippine regulations, cash dividends declared by the Company must
have a record date of not less than ten (10) days or more than thirty (30) days from the date
the cash dividends are declared.
34

With respect to stock dividends, the record date is to be not less than ten (10) days or more
than thirty (30) days from the shareholders’ approval, provided however, that the set record
date is not to be less than ten (10) training days from receipt of the Philippine Stock Exchange
of the notice of declaration of stock dividend. If no record date is set, under the Securities and
Exchange Commission rules, the record date will be deemed fixed at fifteen (15) days from the
date of stock dividend declaration. In the event that a stock dividend is declared in connection
with an increase in authorized capital stock, the corresponding record date is to be fixed by the
Securities and Exchange Commission.
The Board of Directors of the Company declared stock dividends worth PHP 43,000,000.00 to
its shareholders on July 20, 2007, which declaration was subsequently ratified and confirmed
by the Company’s shareholders during their annual meeting held on the same day,
immediately after the Board meeting. The Record Date was set on August 19, 2007, thirty (30)
days from the date of approval of the Company’s shareholders.
With the listing of the Company’s shares in the Philippine Stock Exchange, the Company
intends to maintain an annual dividend payment ratio for its shares of up to 20 percent of its
consolidated net income from the preceding fiscal year, subject to the requirements of
applicable laws and regulations and the absence of circumstances which may restrict the
payment of dividends. Circumstances which may restrict the payment of dividends include, but
are not limited to, situations when the Company undertakes major projects and developments
requiring substantial cash expenditures or when it is restricted from paying dividends by its
loan covenants. The Company’s Board, may, at any time, modify such dividend payout ratio
depending upon the results of operations and future projects and plans of the Company.
On April 25, 2008, the Board of Directors of the Parent Company declared cash dividends
amounting to PHP 21.99 million or PHP 0.0391 per share, payable to shareholders-of-record
as of May 15, 2008, which declaration was subsequently ratified and confirmed by the Parent
Company’ shareholders during their annual meeting held on July 31, 2008. The payment of
dividends was made on June 10, 2008.
On March 20, 2009, the Board of Directors of the Parent Company declared cash dividends
amounting to PHP 26 million, representing 20 percent of the Company’s consolidated net
income for the period ended December 31, 2008 or PHP 0.0471 per share, payable to
shareholders-of-record as of April 7, 2009. The payment of dividends will be on a date on or
before May 6, 2009.
On March 19, 2010, the Board of Directors of the Parent Company declared cash dividends
amounting to PHP 26,603,532, representing 20 percent of the Company’s consolidated net
income for the period ended December 31, 2009 or PHP 0.0481 per share, payable to
shareholders-of-record as of April 8, 2010. The payment of dividends will be on a date on or
before May 5, 2010.
On June 17, 2011, the Company’s Board of Directors authorized the declaration of Fifty-Five
Million, Three Hundred Eight Thousand, Eight Hundred (55,308,800) common shares stock
dividend, with a par value of one peso (PHP 1.00) per share, out of the unrestricted retained
earnings of the Company as of December 31, 2010. The stock dividend, which is equivalent to
10% of the issued and outstanding shares of the Company, was taken from its unissued
capital stock. Pursuant to the provisions of the Corporation Code, the aforementioned stock
dividend declaration was submitted for stockholders’ approval during their annual meeting on
July 29, 2011. On September 6, 2011, the PSE approved the listing of additional 55,308,800
common shares to cover said stock dividend declaration. On September 08, 2011, the stock
dividend was paid to all of the Company’s stockholders of record as of August 15, 2011.
Other than statutory limitations, there are no restrictions that prevent the Parent Company from
paying dividends on common equity.
35

(4) Recent Sales of Unregistered or Exempt Securities, Including Recent Issuances of Securities
Constituting an Exempt Transaction
On August 21, 2007, the Company distributed stock dividends worth PHP 43,000,000.00 to the
stockholders of record as of August 19, 2007.
The stock dividend declaration was approved by the Company’s Board of Directors on July 20,
2007 and was subsequently approved and ratified by the stockholders owning at least twothirds
(2/3) of the total outstanding capital stock of the Company on the same date of July 20,
2007 during the annual stockholders’ meeting. The issuance of the shares as stock dividend
was exempt from the Securities Regulation Code (SRC) registration requirements pursuant to
Section 10.1 (d). The shares were issued at the original par value of one hundred pesos (PHP
100.00) per share.
Thereafter, with the approval of the Securities and Exchange Commission (“SEC”) on August
22, 2007 of the Company’s application to increase its authorized capital stock to one billion
pesos (PHP 1,000,000,000.00) and to reduce its par value per share to one peso (P1.00), the
Company, on August 23, 2007, issued a total of two hundred ninety seven million
(297,000,000) common shares at the reduced par value of one peso (PHP 1.00) out of the
increase in the Company’s authorized capital stock to the following: (1) JPSA Global Services
Company; (2) JTKC Equities, Inc.; (3) Star Equities Inc.; (4) Surewell Equities, Inc.
Since no expense was incurred, or no commission, compensation or remuneration was paid or
given in connection with the issuance of the shares, the same was exempt from the SRC
registration requirements pursuant to Section 10.1 (i).
Subsequent to the increase in authorized capital stock, the Company issued a total of
15,000,000 shares out of its unissued and authorized capital stock on September 20, 2007 to
its Directors, key Officers, Employees, Consultants and Resource Persons under the Special
Stock Purchase Plan (“SSPP”).
The foregoing issuance of the 15,000,000 new shares under the SSPP was the subject of an
application for exemption from registration of the shares under Section 10.2 of the SRC, which
application was granted by the SEC on September 13, 2007. Notwithstanding the aforesaid
confirmation by the Commission of the exempt status of the SSPP shares, the Commission
nonetheless required the Corporation to include the SSPP shares among the shares of I-Remit
which were registered with the Commission prior to the conduct of its Initial Public Offering in
October 2007. The registration of the I-Remit shares, together with the SSPP shares, was
rendered effective on 5 October 2007. All 15,000,000 shares were subscribed and purchased.
The shares subject of the SSPP were sold at par value or PHP1.00 per share. Total share
purchases amounting to PHP11.74 million were paid in full, while the difference totaling
PHP3.26 million were paid by way of salary loan. Shares acquired through the SSPP are
subject to a lock-up period of two (2) years from the date of issue which ended on September
19, 2009. No underwriter was engaged in connection with the foregoing share issuance.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the share purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company’s Retirement
Fund for the benefit of the Parent Company’s retiring employees or officers. As of December
31, 2009, twenty-two (22) employees had resigned (seven in 2009, thirteen in 2008 and two in
2007) and their shares totaling to 808,100 (130,900 in 2009; 548,500 in 2008; and, 128,700 in
2007) were bought back by the Parent Company on behalf of the Retirement Fund. The total
cost of the shares acquired amounting to PHP808,100 was recognized as treasury stock.
With the establishment of the I-Remit, Inc. Retirement Fund and after the expiration of the lock
up period on September 19, 2009, the Company transferred to the Retirement Fund on
September 24, 2009 the 808,100 shares it has bought back from its resigned employees and
officers upon reimbursement of the advances made by the Company in acquiring such shares
on behalf of the Retirement Fund. With this transfer, the Company’s outstanding capital stock
stood at 553,088,000 shares from 552,279,900 shares.
Except for the above issuances, the Company has not issued or sold new shares within the
past three (3) years which were not registered pursuant to the requirements of the Securities
Regulation Code (“SRC”).
36

Item 6. Management’s Discussion and Analysis or Plan of Operation
(A) Management’s Discussion and Analysis (MD&A) or Plan of Operation
(1) Plan of Operation
The Company’s strategy is focused on creating a global brand for I-Remit by: (i) identifying
and tapping a wider customer base and (ii) maintaining its status as the leading and preferred
choice of OFWs for their remittance requirements. The Company will still continue to introduce
alternative delivery channels and find ways to further improve the speed and reliability of
deliveries, develop a wider delivery network, and forge strategic alliances with various banks.
The key elements of the Company’s strategy is as follows:
Utilize technological advances in increasing value for money of products and
services;
Implement product prioritization and differentiation;
Increase strategic alliances with banks with limited or no remittance business; and
Increase partnerships with various establishments to act as pay stations.
The Company’s general expansion plans in 2012 include the opening of new and/or additional
offices or the engagement of new tie-ups and partners in Ireland, Macau, Germany, the
Netherlands, Saudi Arabia and Kuwait.
37

(2) Management’s Discussion and Analysis
2011 compared to 2010
I-Remit realized a consolidated net income of PHP 136.1 million in 2011, an increase of PHP
70.1 million or 106.4% over the consolidated net income of PHP 65.9 million in 2010. The
consolidated net income in 2011 and 2010 are 17.3% and 8.7% of the 2011 and 2010
revenue, respectively.
Revenues increased by 3.4% or PHP 26.1 million from PHP 761.8 million in 2010 to PHP
787.9 million in 2011 mainly due to the increase in realized foreign exchange gains. Foreign
exchange gains increased by 4.6% or PHP 12.1 million from PHP 262.1 million in 2010 to
PHP 274.2 million in 2011. The Company’s revenue from delivery fees grew by 2.9% or PHP
14.5 million from PHP 498.7 million in 2010 to PHP 513.3 million in 2011 largely because of
the appreciation of the Philippine peso against the U.S. dollar. The Company’s fees are
largely settled in U.S. dollars. The average peso-dollar exchange rate was PHP 45.11 in 2010
against PHP 43.31 in 2011, a gain of 4.0% or PHP 1.80 per dollar. In December 2011, the
average peso-dollar exchange rate was PHP 43.65 per dollar. The value of transactions grew
by 16.7% or USD 202.3 million from USD 1.213 billion in 2010 to USD 1.415 billion in 2011.
The number of transactions processed by the Company grew by only 2% from 2.737 million in
2010 to 2.794 million in 2011. Other fees decreased by 60.69% or PHP 0.5 million from PHP
0.9 million in 2010 to PHP 0.4 million in 2011 due to lesser number of amendments and
retrievals recorded in 2011.
Costs of services decreased by 2.3% or PHP 4.7 million from PHP 204.1 million in 2010 to
PHP 199.4 million in 2011. Total costs of services in 2011 and 2010 are 25.3% and 26.8% of
the 2011 and 2010 revenue, respectively. These are mainly due to the decrease in delivery
charges by 49.8% or PHP 14.9 million from PHP 29.9 million in 2010 to PHP 15.0 million in
2011 brought about by the huge reduction in door-to-door transactions in 2011. These are
partly offset by the increase in the cost of fulfilling delivery of remittances to beneficiaries
mostly in the form of bank charges by 5.8% or PHP 10.2 million from PHP 174.2 million in
2010 to PHP 184.4 million in 2011.
Other operating income (loss)-net increased by 56.9% or PHP 9.7 million from PHP 17.0
million in 2010 to PHP 26.8 million in 2011. Total other operating income (loss)-net in 2011
and 2010 are 3.40% and 2.24% of the 2011 and 2010 revenue, respectively. These are
mainly due to the PHP 21.7 million refund of GST previously paid by International Remittance
(Canada) Limited (IRCL) and Worldwide Exchange Pty Ltd (WEPL) to the government of
Canada and Australia, respectively. Both entities are exempt from paying GST. These are
partly offset by the decline in net trading gains by PHP 5.5 million or 223.8% from PHP 2.5
million in 2010 to –PHP 3.1 million in 2011 due to unrealized capital loss accrued from
investment on stocks by Power Star Asia Group Limited (PSAGL). PSAGL invested on stocks
at an average cost of 126.90 marked at 126.30 as of the close of December 31, 2011.
Total operating expenses was higher by PHP 11.4 million (2.6%) from PHP 435.9 million in
2010 to PHP 447.3 million in 2011. Total other operating expenses in 2011 and 2010 are
56.8% and 57.2% of the 2011 and 2010 revenue, respectively. These are mainly on account
of higher rental, salaries, wages and employee benefits, photocopying and supplies,
entertainment, amusement and recreation, communication, light and water and other
operating expenses. The increase in these expense items are related mainly to the
Company’s expansion as it opened new offices in Canada, Italy and Japan. Rental expenses
increased by 15.4% from PHP 46.4 million in 2010 to PHP 53.5 million in 2011 due to the
yearly escalation applied by lessors on rented office premises. Salaries, wages and employee
benefits expenses increased by 2.4% from PHP 208.5 million in 2010 to PHP 213.5 million in
2011. Photocopying and supplies expenses increased by 24.7% from PHP11.7 million in 2010
to PHP 14.6 in 2011 due to higher production of visa cards and kits in 2011. Entertainment,
amusement and recreation expenses increased by 56.6% from PHP 3.8 million in 2010 to
PHP 6.0 million in 2011 mainly due to the development of offices/tie-ups in Japan, Kuwait,
Saudi Arabia and Oman. Communication, light and water increased by 6.4% from PHP 22.1
million in 2010 to PHP 23.5 million in 2011 due to increase in number of remittance
transactions in 2011 which required more communication between the company and its
customers. Along with this, electricity bills also increased as more transactions required
extended processing time. Other operating expenses increased by 34.0% from PHP 21.0
million in 2010 to PHP 28.2 million in 2011 mainly due to disallowed Input VAT for years 2005
and 2006 (PHP 2.1 million), license fee paid for the start in operation of K.K. I-Remit Japan
38

(PHP 3.9 million), cost of payroll outsourced to Prople BPO, Inc. and increase in association
dues charges by lessors of the Parent Company (PHP 1.1 milllion). These are partly offset by
lower marketing, professional fees, transportation and travel, depreciation and amortization
expenses. Marketing expenses decreased by 14.7% from PHP 42.6 million in 2010 to PHP
36.3 million in 2011 while transportation and travel expenses decreased by 10.7% from PHP
26.7 million in 2010 to PHP 23.8 million in 2011 due to cost cutting measures implemented by
the Parent Company in all its foreign subsidiaries. Professional fees decreased by 8.8% from
PHP 39.7 million in 2010 to PHP 36.2 million in 2011 due to termination of three (3) retainer
contracts of the Parent Company and cessation of operation in Austria. Depreciation and
amortization decreased by 13.3% from PHP 13.3 million in 2010 to PHP 11.5 million in 2011
due to higher number of office equipment fully depreciated in 2011.
Interest income increased by 10.8% or PHP 1.3 million from PHP 12.5 million in 2010 to PHP
13.9 million in 2011. Interest income in 2011 and 2010 are 1.8% and 1.6% of the 2011 and
2010 revenue, respectively. These are mainly due to higher deposits resulting from higher
volume of transactions in 2011.
Interest expense increased by 31.2% or PHP 9.1 million from PHP 29.2 million in 2010 to PHP
38.3 million 2011. Interest expense in 2011 and 2010 are -4.9% and -3.8% of the 2011 and
2010 revenue, respectively. These are mainly due to higher availment of loans from bank
partners during 2011 and higher annual interest rates on the Parent Company’s unsecured,
short-term interest-bearing peso-denominated bank loans ranging from 5.00% to 7.00% in
2011 and 5.50% to 6.00% in 2010.
In February 2010, IREMIT Remittance Consulting GmbH (formerly IREMIT EUROPE Remittance
Consulting AG) started its remittance business in Italy. On April 28, 2011, IREMIT Remittance
Consulting GmbH (IRCGmbH) stopped its money remittance operations in Rome and Milan in
Italy in accordance with Article 75 of the Transitional and Final Provisions of Austrian Payment
Services Act, which stipulated that credit institutions that have held authorizations pursuant to
Article 1 paragraph 1 no 23 BWG, as amended by the Federal Act Federal Law Gazette No.
35/2003, prior to December 25, 2009, have only until April 30, 2011 to carry out their money
remittance operations.
In December 2011, IRCGmbH sold assets relating to its operations in Italy to a third party.
These assets, with an aggregate carrying amount of PHP 7.29 million, were sold for a
consideration of PHP 72.43 million thereby resulting to a gain on sale of PHP 65.14 million.
The results of IRCGmbH’s operation in Italy follow:
2011 2010
Delivery fees PHP5,289,202 PHP7,486,658
Realized foreign exchange gains - net 1,006,867 673,204
6,296,069 8,159,862
Cost of services 596,703 3,749,195
Gross income 5,699,366 4,410,667
Other income - net 615,909 38,935
Operating expenses (45,024,921) (34,754,501)
Loss from operations (PHP38,709,646) (PHP30,304,899)
Gain on sale of assets 65,139,395 −
Income (Loss) from discontinued operations PHP26,429,749 (PHP30,304,899)
The total assets of the Company decreased by PHP 82.1 million or 3.5% to PHP 2.273 billion
as of December 31, 2011 against PHP 2.356 billion as of December 31, 2010. Cash and cash
equivalents increased by PHP 7.4 million or 0.8% from PHP 883.8 million in 2010 to PHP
891.2 million in 2011. Financial assets at fair value through profit or loss amounted to PHP
125.2 million at end-2011 against PHP 102.9 million at end-2010, increasing by PHP 22.3
million or 21.6%. Financial assets at fair value through profit or loss in 2011 and 2010 are
5.5% and 4.4% of the total assets in 2011 and 2010, respectively. These assets consist
mainly of investments in debt securities (listed overseas) held for trading. Power Star Asia
Group Limited started investing on stocks in 2011. Accounts receivable declined by PHP
125.8 million or 11.9% from PHP 1,059.3 million in 2010 to PHP 933.5 million in 2011.
Accounts receivable in 2011 and 2010 are 41.0% and 45.0% of the total assets in 2011 and
2010, respectively. These are mainly due to improved collection of advances to agents and
foreign subsidiaries in 2011. Other receivables increased by PHP 31.0 million or 37.1% from
39

PHP 83.4 million in 2010 to PHP 114.4 million in 2011. Other receivables in 2011 and 2010
are 5.0% and 3.5% of the total assets in 2011 and 2010, respectively. These are mainly due
to nontrade receivable from the sale of various assets of IREMIT Remittance Consulting
GmbH related to the discontinued operations in Italy which was subsequently collected in
March 2012 and partly offset by the application of receivables from non-controlling
shareholders of IREMIT Remittance Consulting GmbH and Worldwide Exchange Pty Ltd
amounting to PHP 12.3 million and PHP 25.01 million, respectively, against the acquisition
costs. Other current assets declined by PHP 7.4 million or 20.4% from PHP 36.3 million in
2010 to PHP 28.9 million in 2011. Other current assets in 2011 and 2010 are 1.3% and 1.5%
of the total assets in 2011 and 2010, respectively. These are mainly due to lower balances of
prepaid expenses and visa cards inventory.
The Company’s non-current assets declined by PHP 9.7 million or 5.1% from PHP 190.3
million at end-2010 to PHP 180.6 million at end-2011. Total noncurrent assets in 2011 and
2010 are 7.9% and 8.0% of the total assets in 2011 and 2010, respectively. These are mainly
due to the equity in net earnings of IRemit Singapore Pte Ltd of PHP 1.5 million and Hwa
Kung Hong & Co., Ltd. of PHP 0.6 million in 2011, lesser investment on fixed assets in 2011,
deferred tax asset on additional net loss of I-Remit New Zealand Limited in 2011 and issuance
of tax credit certificates by the BIR for Input VAT for the years 2005 and 2006 amounting to
PHP 1.71 million and PHP 3.82 million, respectively.
Total liabilities declined by PHP 171.6 million or 15.8% from PHP 1.084 billion at end-2010 to
PHP 912.7 million at end-2011 mainly due to lower level of current liabilities. Total liabilities in
2011 and 2010 are 40.1% and 46.0% of the total liabilities and equity in 2011 and 2010,
respectively. Current liabilities decreased by PHP 170.8 million or 15.7% from PHP 1.083
billion in 2010 to PHP 912.6 million in 2011. Total current liabilities in 2011 and 2010 are
40.1% and 46.0% of the total liabilities and equity in 2011 and 2010, respectively.
Beneficiaries and other payables increased by PHP 40.6 million or 20.3% from PHP 199.5
million in 2010 to PHP 240.1 million in 2011. Beneficiaries and other payables in 2011 and
2010 are 10.6% and 8.5% of the total liabilities and equity in 2011 and 2010, respectively.
These are mainly due to additional channels opened in 2011 for the delivery of remittances to
beneficiaries. Interest-bearing loans decreased by PHP 211 million or 24.1% from PHP 877
million in end-2010 to PHP 666 million in end-2011. Interest-bearing loans in end-2011 and
end-2010 are 29.3% and 37.2% of the total liabilities and equity in end-2011 and end-2010,
respectively. These are mainly due to lesser loan exposure at end-2011 mainly brought about
by improved collection of accounts receivable.
The Company’s stockholders’ equity as of December 31, 2011 stood at PHP 1.361 billion,
higher by PHP 89.4 million or 7.0% against the end-2010 level of PHP 1.271 billion. Total
equity in 2011 and 2010 are 59.9% and 54.0% of the total liabilities and equity in 2011 and
2010, respectively. Capital stock increased by PHP 55.3 million or 9.8% from PHP 562.4
million in 2010 to PHP 617.7 million in 2011. Capital stock in 2011 and 2010 are 27.2% and
23.9% of the total liabilities and equity in 2011 and 2010, respectively. These are mainly due
to the distribution of stock dividend to stockholders on September 8, 2011. Capital paid-in
excess of par value decreased by PHP 38.3 million or 8.9% from PHP 429.5 million in 2010 to
PHP 391.2 million in 2011. Capital paid-in excess of par value in 2011 and 2010 are 17.2%
and 18.2% of the total liabilities and equity in 2011 and 2010, respectively. The decrease in
capital paid-in excess of par value in 2011 represents excess of acquisition cost over the
carrying value of the non-controlling interests acquired in 2011 (IREMIT Remittance
Consulting GmbH and Worldwide Exchange Pty Ltd). Treasury stock increased by PHP 12.9
million or 32.1% from -PHP 40.1 million in 2010 to -PHP 53.0 million in 2011. Treasury stock
in 2011 and 2010 are -2.3% and -1.7% of the total liabilities and equity in 2011 and 2010,
respectively. The increase in Treasury stock in 2011 represents buy-back of 5,544,000
shares.
40

Below are the comparative key performance indicators of the Company (Parent Company and
subsidiaries):
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Definition Dec. 31, 2011 Dec. 31, 2010
Net income* over average
stockholders’ equity during the
period
Net income* over average total
assets during the period
Net income* over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
41
10% 5%
5% 3%
PHP 0.22 PHP 0.11
17% 10%
588.4 557.6
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS
computed using Net Income attributable to equity holders of the Parent Company for the year
ended December 31, 2011 and for the year ended December 31, 2010 are P 0.23 and P 0.13,
respectively.
Below are the comparative key performance indicators of the Company’s
subsidiaries:
International Remittance (Canada) Ltd.
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Lucky Star Management Limited
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
56% 3%
22% 1%
43.64 1.80
2% 3%
92.6 97.5
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
-3% 89%
-1% 26%
-1.33 30.53
-25% 8%
17.0 25.6

IRemit Global Remittance Limited
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
I-Remit Australia Pty Ltd
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Worldwide Exchange Pty Ltd
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
I-Remit New Zealand Limited
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
42
-767% 39%
-33% 6%
-108,090.79 10,191.13
28% 1%
50.7 43.8
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
0.4% 1%
0.2% 0.2%
7,306.00 14,435.50
- -
0.6 0.3
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
6% 5%
1% 1%
3.02 2.00
11% 20%
34.6 29.2
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
40% 20%
-24% -9%
-3,046.61 -1,129.10
23% 38%
5.3 8.8

IREMIT Remittance Consulting GmbH
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Power Star Asia Group Limited
Performance
Indicator
Return on Equity
(ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
2010 compared to 2009
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
43
194% -193%
14% -74%
141.86 -666.31
-19% 94%
0.5 11.7
Definition Dec. 31, 2011 Dec. 31, 2010
Net income over average
stockholders’ equity during the
period
Net income over average total
assets during the period
Net income over average number
of outstanding shares
Total transaction value in USD in
present year over previous year
Revenue less total cost of
services (PHP millions)
30% 38%
29% 36%
66.53 63.27
- -
70.4 62.4
I-Remit realized a consolidated net income of PHP 65.9 million in 2010, a decrease of PHP
67.2 million or 50.5% over the consolidated net income of PHP 133.1 million in 2009.
Revenues decreased by 1.1% or PHP 8.7 million from PHP 778.7 million in 2009 to PHP
769.9 million in 2010 mainly due to the decline in realized foreign exchange gains. Foreign
exchange gains dropped by 8.6% or PHP24.9 million from PHP287.7 million in 2009 to
PHP262.8 million in 2010. The value of transactions grew by 9.9% or USD109.5 million from
USD1.103 billion in 2009 to USD1.213 billion in 2010. The Company’s revenue from delivery
fees grew by only 3.2% or PHP15.9 million from PHP490.4 million in 2009 to PHP506.2 million
in 2010 largely because of the appreciation of the Philippine peso against the U.S. dollar. The
Company’s fees are largely settled in U.S. dollars. The average peso-dollar exchange rate
was PHP47.63 in 2009 against PHP45.08 in 2010, a gain of 5.3% or PHP2.55 per dollar. In
December 2010, the average peso-dollar exchange rate was PHP43.95 per dollar. The
number of transactions processed by the Company grew by only 2% from 2.683 million in
2009 to 2.737 million in 2010.
Total operating expenses was higher by PHP58.3 million (14.1%) from PHP412.4 million in
2009 to PHP470.7 million in 2010 mainly on account of higher rental, marketing, and
professional fee expenses. Rental expenses increased by 28.1% from PHP39.3 million in
2009 to PHP50.4 million in 2010. Marketing expenses increased by 32.0% from PHP33.0
million in 2009 to PHP43.5 million in 2010. Professional fees increased by 46.9% from
PHP29.7 million in 2009 to PHP43.6 in 2010. The increase in these expense items are
related mainly to the Company’s expansion as it opened new offices in Canada and Italy.
Other income decreased by 62.8% or PHP54.3 million from PHP86.4 million in 2009 to
PHP32.1 million in 2010 mainly due to the decline in net trading gains on debt securities
(listed overseas) held for trading and lower other income consisting of interest income,
rebates, and unrealized foreign exchange gain. Net trading gains declined by PHP30.3 million
or 92.4% from PHP32.8 million in 2009 to PHP2.5 million in 2010.

The total assets of the Company decreased by PHP131.9 million or 5.3% to PHP2.356 billion
as of December 31, 2010 against PHP2.488 billion as of December 31, 2009. Cash and cash
equivalents decreased by PHP79.0 million or 8.2% from PHP962.8 million in 2009 to
PHP883.8 million in 2010. Financial assets at fair value through profit or loss amounted to
PHP102.9 million at end-2010 against PHP65.8 million at end-2009, increasing by PHP37.1
million or 56.4%. These assets consist of investments in debt securities (listed overseas) held
for trading. Receivables declined by PHP80.2 million or 7.0% from PHP1.139 billion in 2009 to
PHP1.059 billion in 2010. The Company’s non-current assets declined by PHP300,928 or
0.2% from PHP190,039,196 at end-2009 to PHP190,340,124 at end-2010.
Total liabilities declined by PHP151.4 million or 12.2% from PHP1.235 billion at end-2009 to
PHP1.084 billion in 2010 mainly due to a lower level of current liabilities. Current liabilities
decreased by PHP148.6 million or 12.1% from PHP1.232 billion in 2009 to PHP 1.083 billion
in 2010.
The Company’s stockholders’ equity as of December 31, 2010 stood at PHP 1.271 billion,
higher by PHP19.5 million or 1.6% against the end-2009 level of PHP 1.252 billion.
Below are the comparative key performance indicators of the Company (Parent Company and
subsidiaries):
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income* over average stockholders’
equity during the period
5% 11%
Return on Assets
(ROA)
Net income* over average total assets
during the period
3% 6%
Earnings per Share
(EPS)
Net income* over average number of
outstanding shares
PHP 0.12 PHP 0.24
Sales Growth
Total transaction value in USD in present
year over previous year
10% 2%
Gross Income
Revenue less total cost of services (PHP
millions)
562.0 547.7
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using
Net Income attributable to equity holders of the Parent Company for the year ended December 31, 2010 and
for the year ended December 31, 2009 are P 0.14 and P 0.25, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
3% 33%
Return on Assets
(ROA)
Net income over average total assets
during the period
1% 10%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
1.80 18.18
Sales Growth
Total transaction value in USD in present
year over previous year
3% 11%
Gross Income
Revenue less total cost of services (PHP
millions)
97.5 99.7
44

Lucky Star Management Limited
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
89% 47%
Return on Assets
(ROA)
Net income over average total assets
during the period
26% 14%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
30.53 11.18
Sales Growth
Total transaction value in USD in present
year over previous year
8% 20%
Gross Income
Revenue less total cost of services (PHP
millions)
25.6 21.4
IRemit Global Remittance Limited
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
39% 60%
Return on Assets
(ROA)
Net income over average total assets
during the period
6% 4%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
10,191.13 10,021.79
Sales Growth
Total transaction value in USD in present
year over previous year
1% -17%
Gross Income
Revenue less total cost of services (PHP
millions)
43.8 46.9
I-Remit Australia Pty Ltd
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
1% 176%
Return on Assets
(ROA)
Net income over average total assets
during the period
0.2% 24%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
14,435.50 1,859,480.93
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
0.3 0.2
Worldwide Exchange Pty Ltd
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
5% 41%
Return on Assets
(ROA)
Net income over average total assets
during the period
1% 11%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
2.00 29.75
Sales Growth
Total transaction value in USD in present
year over previous year
20% -5%
Gross Income
Revenue less total cost of services (PHP
millions)
29.2 32.6
45

I-Remit New Zealand Limited
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
20% 81%
Return on Assets
(ROA)
Net income over average total assets
during the period
-9% -25%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-1,129.10 -2,654.42
Sales Growth
Total transaction value in USD in present
year over previous year
38% 595%
Gross Income
Revenue less total cost of services (PHP
millions)
8.8 7.6
IREMIT EUROPE Remittance Consulting AG
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
-193% -189%
Return on Assets
(ROA)
Net income over average total assets
during the period
-74% -31%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-666.31 -243.17
Sales Growth
Total transaction value in USD in present
year over previous year
94% 43%
Gross Income
Revenue less total cost of services (PHP
millions)
11.7 9.1
Power Star Asia Group Limited
Performance Indicator Definition Dec. 31, 2010 Dec. 31, 2009
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
38% 89%
Return on Assets
(ROA)
Net income over average total assets
during the period
36% 78%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
63.27 86.35
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
62.4 55.5
2009 compared to 2008
I-Remit realized a consolidated net income of PHP 133.1 million in 2009, an increase of PHP
3.2 million or 2.4% over the consolidated net income of PHP 129.98 million in 2008.
Revenues increased by PHP 16.6 million (2.2%) to PHP 778.6 million in 2009 from PHP 762.0
million in 2008 mainly due to the 11.9% increase in transaction count (from 2,397,180 in 2008
to 2,683,639 in 2009) and a 1.9% increase in USD remittance volume (from USD 1,083.6
million in 2008 to USD 1,104.0 million in 2009). Of the total transaction count in 2009, the
percentage contributions per region are as follows: Asia-Pacific, 43%; Middle East, 28%; North
America, 16%; and Europe, 9%. In terms of USD remittance volume, the regional
contributions are as follows: Asia-Pacific, 33%; Europe, 12%, Middle East, 20%, and North
America, 17%. The Company’s market share in 2009 was 6.4% from 6.6% in 2008 based on
the BSP-reported figure of total inward remittances to the Philippines of USD 17.3 billion.
Accordingly, the Company’s gross income decreased by PHP 17.7 million or -3.1% from PHP
565.4 million in 2008 to 547.7 million in 2009.
46

Total operating expenses was higher by PHP 15.0 million (3.8%) from PHP 397.4 million in
2008 to PHP 412.4 million in 2009 mainly on account of higher salaries, wages and employee
benefits, and rental expenses. Other income increased by 156.7% or PHP 52.7 million from
PHP 33.7 million in 2008 to PHP 86.4 million in 2009 mainly due to net trading gains on debt
securities (listed overseas) held for trading and higher other income of subsidiaries such as
rebates and sub-lease rental income. Interest expense was higher by PHP 35.2 million
(260.4%) from PHP 13.5 million in 2008 to PHP 48.7 million in 2009 due to increased loans.
The total assets of the Company increased by PHP 514.5 million or 26.1% to PHP 2.488
billion as of December 31, 2009 against PHP 1.974 billion as of the same period in 2008.
Cash and cash equivalents increased by PHP 130.2 million or 15.6% from PHP 832.6 million
in 2008 to PHP 962.8 million in 2009. Financial assets at FVPL amounting to PHP 65.8
million consist of investments in debt securities (listed overseas) held for trading. Receivables
increased by PHP 310.6 million or 33.2% from PHP 936.9 million in 2008 to PHP 1,247.5
million in 2009. Other current assets increased by PHP 2.0 million or 10.0% from PHP 20.3
million to PHP 22.3 million mainly because of a higher level of Visa cards inventory. Property
and equipment decreased by PHP 3.1 million or 9.9% from PHP 30.9 million in 2008 to PHP
27.8 million in 2009 on account of higher depreciation and amortization expenses. Goodwill
increased by PHP 6.1 million or 6.6% from PHP 91.5 million in 2008 to PHP 97.6 million in
2009 due to exchange adjustment. Deferred tax asset increased by PHP 2.5 million or
305.1% from PHP 0.8 million in 2008 to PHP 3.3 million in 2009. Other noncurrent assets
increased by PHP 4.6 million or 13.2% from PHP 34.7 million in 2008 to PHP 39.3 million in
2009.
Total liabilities increased by PHP 378.2 million or 44.1% from PHP 857.5 million in 2008 to
PHP 1,235.7 million in 2009 mainly higher level of current liabilities. Current liabilities
increased by PHP 380.0 million or 44.6% from PHP 852.1 million in 2008 to PHP 1,232.1
million in 2009 due to the increase in interest-earning loans by PHP 350.0 million or 60.3%
from PHP 580.0 million in 2008 to PHP 930.0 million in 2009.
The Company’s stockholders’ equity as of December 31, 2009 stood at PHP 1.252 billion,
higher by PHP 136.4 million or 12.2% against the year-end 2008 level of PHP 1.116 billion.
Below are the comparative key performance indicators of the Company (Parent Company and
subsidiaries):
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income* over average stockholders’
equity during the period
11% 12%
Return on Assets
(ROA)
Net income* over average total assets
during the period
6% 8%
Earnings per Share
(EPS)
Net income* over average number of
outstanding shares
PHP 0.24 PHP 0.23
Sales Growth
Total transaction value in USD in present
year over previous year
2% 42%
Gross Income
Revenue less total cost of services (PHP
millions)
547.7 565.4
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using
Net Income attributable to equity holders of the Parent Company for the year ended December 31, 2009 and
for the year ended December 31, 2008 are P 0.25 and P 0.23, respectively.
47

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
33% 62%
Return on Assets
(ROA)
Net income over average total assets
during the period
10% 9%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
18.18 26.60
Sales Growth
Total transaction value in USD in present
year over previous year
11% 35%
Gross Income
Revenue less total cost of services (PHP
millions)
99.7 85.8
Lucky Star Management Limited
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
47% 61%
Return on Assets
(ROA)
Net income over average total assets
during the period
14% 40%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
11.18 15.67
Sales Growth
Total transaction value in USD in present
year over previous year
20% 7%
Gross Income
Revenue less total cost of services (PHP
millions)
21.4 20.9
IRemit Global Remittance Limited
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
60% 5%
Return on Assets
(ROA)
Net income over average total assets
during the period
4.08% 0.2%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
10,021.79 666.34
Sales Growth
Total transaction value in USD in present
year over previous year
-17% -4%
Gross Income
Revenue less total cost of services (PHP
millions)
46.9 42.2
I-Remit Australia Pty Ltd
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
176% 108%
Return on Assets
(ROA)
Net income over average total assets
during the period
24% 17%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
1,859,480.93 1,623,710.00
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
0.2 0.4
48

Worldwide Exchange Pty Ltd
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
41% 91%
Return on Assets
(ROA)
Net income over average total assets
during the period
11% 45%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
29.75 106.93
Sales Growth
Total transaction value in USD in present
year over previous year
-5% 40%
Gross Income
Revenue less total cost of services (PHP
millions)
32.6 35.0
I-Remit New Zealand Limited
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
81% 104%
Return on Assets
(ROA)
Net income over average total assets
during the period
-25% -21%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-2,654.42 -1,721.28
Sales Growth
Total transaction value in USD in present
year over previous year
595% -
Gross Income
Revenue less total cost of services (PHP
millions)
7.6 1.1
IREMIT EUROPE Remittance Consulting AG
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
-189% 56%
Return on Assets
(ROA)
Net income over average total assets
during the period
-31% -34%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-243.17 -259.01
Sales Growth
Total transaction value in USD in present
year over previous year
43% -
Gross Income
Revenue less total cost of services (PHP
millions)
9.1 6.8
Power Star Asia Group Limited
Performance Indicator Definition Dec. 31, 2009 Dec. 31, 2008
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
89% 90%
Return on Assets
(ROA)
Net income over average total assets
during the period
78% 76%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
86.35 49.87
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
55.5 59.8
49

2008 compared to 2007
I-Remit realized a consolidated net income of PHP 129.9 million in 2008, an increase of PHP
16.7 million or 15% over the consolidated net income of PHP 113.3 million in 2007.
Revenues increased by PHP 200.3 million (36%) to PHP 762.0 million in 2008 from PHP
561.8 million in 2007 mainly due to the 29% increase in transaction count (from 1,864,869 in
2007 to 2,397,180 in 2008 ) and a 42% increase in USD remittance volume (from USD 762.3
million in 2007 to USD 1,083.6 million in 2008). Of the total transaction count in 2008, the
percentage contributions per region are as follows: Asia-Pacific, 42%; Middle East, 28%; North
America, 15%; and Europe, 10%. In terms of USD remittance volume, the regional
contributions are as follows: Asia-Pacific, 34%; Europe, 13% , Middle East, 20% , and North
America, 15%. The Company’s market share in 2008 grew to 6.60% from 5.28% in 2007
based on the BSP-reported figure of total inward remittances to the Philippines of USD 16.43
billion. Accordingly, the Company’s gross income increased by PHP 158.9 million or 39%
from PHP 406.4 million in 2007 to 565.4 million in 2008.
Total operating expenses was higher by PHP 119.7 million (43%) from PHP 277.7 million in
2007 to PHP 397.4 million in 2008 mainly on account of higher salaries, wages and employee
benefits, and marketing expenses. Other income increased by 99% or PHP 16.7 million from
PHP 16.9 million in 2007 to PHP 33.7 million in 2008 mainly due to higher other income of
subsidiaries such as sub-lease rental income. Interest expense was lower by PHP 10.8
million (44.5%) from PHP 24.3 million in 2007 to PHP 13.5 million in 2008.
The total assets of the Company increased by PHP 572.6 million or 41% to PHP 1.974 billion
as of December 31, 2008 against PHP 1.401 billion as of the same period in 2007. Cash and
cash equivalents increased by PHP 151.0 million or 22% from PHP 681.7 million in 2007 to
PHP 832.6 million in 2008. Receivables increased by PHP 390.7 million or 72% from PHP
546.2 million in 2007 to PHP 936.9 million in 2008. Other current assets increased by PHP
15.0 million or 284% from PHP 5.3 million in 2007 to PHP 20.3 million in 2008 mainly because
of a higher level of prepaid expenses and card inventory. Property and equipment increased
by PHP 11.8 million or 62% from PHP 19.1 million in 2007 to PHP 30.9 million in 2008 mainly
due to investments in office and communication equipment. Goodwill decreased by PHP 20.0
million from PHP 111.4 million in 2007 to PHP 91.5 million in 2008 due to exchange
adjustment. Other noncurrent assets increased by PHP 15.2 million or 68% from PHP 22.49
million in 2007 to PHP 37.7 million in 2008.
Total liabilities increased by PHP 533.6 million or 165% from PHP 323.9 million in 2007 to
PHP 857.5 million in 2008 mainly higher level of current liabilities. Current liabilities increased
by PHP 533.7 million or 168% from PHP 318.4 million in 2007 to PHP 852.1 million in 2008
due to the increase in interest-earning loans by PHP 405.0 million or 231% from PHP 175
million in 2007 to PHP 580 million in 2008.
The Company’s stockholders’ equity as of December 31, 2008 stood at PHP 1.116 billion,
higher by PHP 38.9 million or 4% against the year-end 2007 level of PHP 1.077 billion.
Below are the comparative key performance indicators of the Company (Parent Company and
subsidiaries):
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income* over average stockholders’
equity during the period
12% 21%
Return on Assets
(ROA)
Net income* over average total assets
during the period
8% 11%
Earnings per Share
(EPS)
Net income* over average number of
outstanding shares
PHP 0.23 PHP 0.56
Sales Growth
Total transaction value in USD in present
year over previous year
42% 37%
Gross Income
Revenue less total cost of services (PHP
millions)
565.4 406.4
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using
Net Income attributable to equity holders of the Parent Company for the year ended December 31, 2008 and for
the year ended December 31, 2007 are P 0.23 and P 0.53, respectively.
50

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
62% 99%
Return on Assets
(ROA)
Net income over average total assets
during the period
9% 7%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
26.60 21.74
Sales Growth
Total transaction value in USD in present
year over previous year
35% 74%
Gross Income
Revenue less total cost of services (PHP
millions)
85.8 67.3
Lucky Star Management Limited
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
61% -48%
Return on Assets
(ROA)
Net income over average total assets
during the period
40% 23%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
15.67 11.78
Sales Growth
Total transaction value in USD in present
year over previous year
7% 20%
Gross Income
Revenue less total cost of services (PHP
millions)
20.9 19.6
IRemit Global Remittance Limited
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
5% 33%
Return on Assets
(ROA)
Net income over average total assets
during the period
0.2% 1%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
666.34 4,193.47
Sales Growth
Total transaction value in USD in present
year over previous year
-4% -
Gross Income
Revenue less total cost of services (PHP
millions)
42.2 43.6
I-Remit Australia Pty Ltd
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
108% 98%
Return on Assets
(ROA)
Net income over average total assets
during the period
17% 7%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
1,623,710.00 1,167,012.29
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
0.4 0.3
51

Worldwide Exchange Pty Ltd
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
91% 58%
Return on Assets
(ROA)
Net income over average total assets
during the period
45% 34%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
106.93 77.14
Sales Growth
Total transaction value in USD in present
year over previous year
40% -
Gross Income
Revenue less total cost of services (PHP
millions)
35.0 20.4
I-Remit New Zealand Limited
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
104% -
Return on Assets
(ROA)
Net income over average total assets
during the period
-21% -
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-1,721.28 -
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
1.1 -
IREMIT EUROPE Remittance Consulting AG
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
56% -
Return on Assets
(ROA)
Net income over average total assets
during the period
-34% -
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
-259.01 -
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
6.8 -
Power Star Asia Group Limited
Performance Indicator Definition Dec. 31, 2008 Dec. 31, 2007
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
90% -
Return on Assets
(ROA)
Net income over average total assets
during the period
76% -
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
49.87 -
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
59.8 -
The Company is not aware of any known trends, commitments, events or uncertainties that will have a
material impact on the Company’s liquidity. The Company has not defaulted in paying its currently
maturing obligations. In addition, obligations of the Company are guaranteed up to a certain extent by
the Company’s majority stockholders.
The Company is not aware of any events that will trigger a direct or contingent financial obligation that
is material to the Company, including any default or acceleration of an obligation.
52

There are no material off-balance sheet transactions, arrangements, obligations (including contingent
obligations), and other relationships of the Company with unconsolidated entities or other persons
created during the reporting period.
The Company has no material commitments for capital expenditures.
Except as discussed above, the Company is not aware of any trends, events or uncertainties that have
had or that are reasonably expected to have a material favorable or unfavorable impact on sales,
revenues or income from continuing operations.
Except as discussed above, there are no other significant elements of income or loss that did not arise
from the Company’s continuing operations.
There are no seasonal aspects that had a material effect on the financial condition or results of
operations.
The Company does not expect any purchase of significant equipment in the next twelve (12) months.
The Company does not expect any significant changes in the number of employees in the next twelve
(12) months.
53

Item 7. Financial Statements
The consolidated financial statements and schedules listed in the accompanying Index to Financial
Statements and Supplementary Schedules are filed as part of this Form 17-A.
Item 8. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
I-Remit and its subsidiaries had no disagreement with the auditors on any matter of accounting principles or
practices, financial statements disclosure, or auditing scope or procedure as of December 31, 2011 and
December 31, 2010.
Appointment of and Review of the Performance of the External Auditor
The Board of Directors and the stockholders approve the Audit Committee’s recommendation for the
appointment and the review of the performance of the external auditors. In appointing its external auditors,
the Company considers the technical competence, training, experience and professional reputation of the
audit firm’s partners and staff, its capacity to perform the requirements of the audit engagement, its
correspondent and other professional relationships with reputable firms in other jurisdictions, and the general
reputation of the firm for integrity and efficiency.
Pursuant to the General Requirements of SRC Rule 68, Par. 3 (Qualifications and Reports of Independent
Auditors), I-Remit engaged the services of SyCip Gorres Velayo & Co. (SGV & Co.) (BOA/PRC Reg. No.
0001; SEC Accreditation No. 0012-FR-1) for the audit of the Group’s and Parent Company’s financial
statements which comprise the statements of condition as of December 31, 2011 and 2010, and the
statements of income, changes in equity, and cash flows for each of the three (3) years in the period ended
December 31, 2011.
SGV & Co. is the Philippines’ largest professional services firm with nine (9) offices across the country. It
employs over 1,800 people. SGV professionals from various disciplines provide integrated solutions that
draw on diverse and deep competencies in assurance, tax, and risk services. Upholding the highest
standards of quality, the Assurance and Advisory Business Services division of SGV & Co. has been ISOcertified
since 1996.
SGV & Co.’s track record has remained unmatched in the region. It has accumulated invaluable resources in
its more than 60 years of operation --- highly qualified and competent staff, state-of-the-art facilities, and an
enviable international network.
SGV & Co. is a member practice of Ernst & Young Global, a leader in professional services with 114,000
people serving as trusted advisors in more than 140 countries offering audit, tax, and transaction advisory
services across all industries to many of today’s leading global corporations as well as emerging growth
companies.
SGV & Co. has served as the Company’s external auditors since 2002. Josephine Adrienne A. Abarca (CPA
Certificate No. 92126; SEC Accreditation No. 0466-A) is the current audit partner for the Company. Aris C.
Malantic (CPA Certificate No. 90190; SEC Accreditation No. 0326-AR-1) is the former audit partner for the
Company and he has served as such from 2005 to 2008.
External Audit Fees and Services
For the audit of the Group’s and Parent Company’s annual financial statements and services provided in
connection with statutory and regulatory filings or engagements, the aggregate amounts to be billed/billed,
exclusive of value-added tax (VAT) and out-of-pocket expenses, by SGV & Co. amounts/amounted to PHP
577,500, PHP 550,000, and PHP 550,000 for 2011, 2010, and 2009, respectively.
SGV & Co. did not render professional services for tax accounting, compliance, advice, planning and any
other form of tax services.
SGV & Co. did not provide products and services other than the services reported above.
The Company’s Executive Committee approves the audit fees as recommended by the Management
Committee.
54

Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for the
adoption of the following new and amended PFRS, Philippine Accounting Standards (PAS) and
Philippine Interpretations which became effective on January 1, 2011:
• PAS 24 Amendment, Related Party Disclosures
• PAS 32 Amendment, Financial Instruments: Presentation - Classification of Rights Issues
• Philippine Interpretation International Financial Reporting Interpretations Committee (IFRIC) 14
Amendment, Prepayments of a Minimum Funding Requirement
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
The adoption of new standards, amendments and interpretations above did not have impact to the
Group except for the adoption of PAS 24 Amendment, Related Party Transactions.
PAS 24 Amendment, Related Party Transactions
PAS 24 clarifies the definitions of a related party. The new definitions emphasize a symmetrical view of
related party relationships and clarify the circumstances in which persons and key management
personnel affect related party relationships of an entity. In addition, the amendment introduces an
exemption from the general related party disclosure requirements for transactions with government and
entities that are controlled, jointly controlled or significantly influenced by the same government as the
reporting entity. The amendment only affects the disclosures and has no impact on the Group’s financial
position or performance.
Improvements to PFRS 2010
Improvements to PFRSs, an omnibus of amendments to standards, deal primarily with a view to
removing inconsistencies and clarifying wording. There are separate transitional provisions for each
standard. The adoption of the following amendments resulted in changes to accounting policies but did
not have any impact on the financial position or performance of the Group.
PFRS 3, Business Combinations (Revised)
The measurement options available for noncontrolling interest (NCI) were amended. Only components
of NCI that constitute a present ownership interest that entitles their holder to a proportionate share of
the entity’s net assets in the event of liquidation should be measured at either fair value or at the present
ownership instruments’ proportionate share of the acquiree’s identifiable net assets. All other
components are to be measured at their acquisition date fair value.
The amendments to PFRS 3 are effective for annual periods beginning on or after July 1, 2011. The
Group, however, adopted these as of January 1, 2011 and changed its accounting policy accordingly as
the amendment was issued to eliminate unintended consequences that may arise from the adoption of
PFRS 3.
PFRS 7, Financial Instruments - Disclosures
The amendment was intended to simplify the disclosures provided by reducing the volume of disclosures
around collateral held and improving disclosures by requiring qualitative information to put the
quantitative information in context. The Group reflects the revised disclosure requirements in Note 4.
PAS 1, Presentation of Financial Statements
The amendment clarifies that an entity may present an analysis of each component of other
comprehensive income maybe either in the statement of changes in equity or in the notes to the financial
statements.
Other amendments resulting from the 2010 Improvements to PFRSs to the following standards did not
have any impact on the accounting policies, financial position or performance of the Group:
• PFRS 3, Business Combinations (Contingent consideration arising from business combination prior
to adoption of PFRS 3 (as revised in 2008))
• PFRS 3, Business Combinations (Un-replaced and voluntarily replaced share-based payment
awards)
• PAS 27, Consolidated and Separate Financial Statements
• PAS 34, Interim Financial Statements
55

The following interpretation and amendments to interpretations did not have any impact on the
accounting policies, financial position or performance of the Group:
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes (determining the fair value of
award credits)
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
56

PART III. CONTROL AND COMPENSATION INFORMATION
Item 9. Directors and Executive Officers of the Issuer
(A) Directors, Executive Officers, Promoters and Control Persons
(1) Directors, Including Independent Directors and Control Persons
Bansan C. Choa, 57, Filipino
Director, Chairman and Chief Executive Officer
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 16, 2002 to date
Mr. Choa has served as Chairman and Chief Executive Officer of since 2005 and has been a
Director since 2002. He is involved in various businesses in the manufacturing, and
construction and property development sectors. He currently holds the following positions:
Chairman, Confed Properties, Inc. (1991 to date); Chairman, Surewell Equities, Inc. (2001 to
date); Director, Sterling Bank of Asia, Inc. (2007 to date); Board Member, Professional
Regulation Commission of Real Estate Service (2010 to date); President, Philippine
Retirement, Inc. (2009 to date) Treasurer, Six Alps Corporation (1997 to date); Treasurer,
Banwood Contruction Center, Inc. (1976 to date); Chairman, Flexi Woodworks, Inc. (1993 to
date), Chairman, Sure Fortune Properties, Inc. (2001 to date), Chairman, OLGC Psychological
Services (2001 to date); Chairman, Lucky Star Management, Ltd. (Hong Kong) (2001 to date);
Chairman, Surewell Enterprise Ltd. (Hong Kong) (1998 to date); Chairman, Surewell Equities
(Singapore) Pte. Ltd. (2001 to date).
Mr. Choa is a licensed real estate broker (Professional Regulation Commission License No.
00002), appraiser (Professional Regulation Commission License No. 00002), and real estate
consultant (Professional Regulation Commission License No. 00002). He is a certified public
accountant (Professional Regulation Commission License No. 030924). He is active in the real
property development and property management field and has served and continues to hold
board and officer positions in housing and real property development organizations including
the Organization of Socialized Housing Developers as Vice President (2001 to 2008),
President(2008 to 2009) and Board Member (2010); Subdivision and Housing Developers
Association as First Vice President (2008), Chairman (2004), Board Governor (2000 to 2010),
and Board Advisor (2011 to date). He is also the Chairman of the Board of Trustees of Kassel
Condominium Corporation (2001 to date).
He was one of the finalists of the 2006 Entrepreneur of the Year award of the Ernst & Young
global accounting firm. He is also a member of the Board of Trustees and the treasurer of
Kabalikat ng Migranteng Pilipino, Inc. (KAMPI), a non-stock non-profit organization serving
overseas Filipino workers.
Mr. Choa obtained his master in business administration degree from the Ateneo de Manila
University Graduate School of Business in 1985 and his bachelor’s degree in commerce from
the De La Salle University in 1974. He is a certified public accountant (CPA) and a member of
the Philippine Institute of Certified Public Accountants (PICPA). He was connected with the
accounting firm of SyCip Gorres Velayo & Co. from 1974 to 1976.
57

Armin V. Demetillo, 43, Filipino
Director, Chairman of the Executive Committee
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such July 17, 2009 to date
Mr. Demetillo has served as Director and Chairman of the Executive Committee of I-Remit,
Inc. since July 17, 2009. He is the Managing Director of Goldleaf Guard Services, Inc. (2002
to date); Executive Vice President, Rapid Security (2002 to date); and vice president, St.
Thomas Security Corporation (2002 to date). Mr. Demetillo is the Founding President/Charter
President of the Rotary Club of Pasay EDSA, R.I. District 3810. He also served as a member
of the Board of Trustees of the Rotary Street Children Foundation (2005 to 2007). In 2005 to
2006, he assumed the position of Chairman of the Board of Virlanie Foundation, Inc. (a street
children foundation supported by Princess Caroline of Monaco, which received an award in
Europe for its effort in protecting children’s rights). He became the Faculty Member/Academic
Counselor in College of Business and Economics, De La Salle University (1992 to 2002)
Mr. Demetillo obtained his bachelor of arts degree, major in philosophy cum laude from the
Saint Joseph Seminary College in 1990.
Harris Edsel D. Jacildo, 50, Filipino
Director, President & Chief Operating Officer
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 8, 2002 to date
Mr. Jacildo joined I-Remit, Inc. as Executive Vice President and Chief Operating Officer in
February 2002. He has been a Director and the President and Chief Operating Officer of the
Company since April 2003. He also currently holds the following positions: Director, Sterling
Bank of Asia, Inc. (A Savings Bank) (2006 to date); Director, Lucky Star Management Ltd.
(Hong Kong) (2003 to date); Director, Iremit Global Remittance Ltd. (United Kingdom) (2003 to
date); Director, I-Remit Australia Pty Ltd (2002 to date).
He is also a Trustee of the Kabalikat ng Migranteng Pilipino, Inc. (KAMPI) (2006 to date), a
non-stock non-profit organization serving overseas Filipino workers and likewise serves as a
Director of the Association of Philippine Private Remittance Services, Inc. (APPRISE) (2007 to
2010), an organization of registered non-bank money remittance companies in the Philippines.
Prior to joining I-Remit, he spent 20 years in the banking industry where he was initially
working in the field of information technology while employed by the Pacific Banking
Corporation (1982 – 1985). In 1985, he joined the remittance division of the Rizal Commercial
Banking Corporation (RCBC) where he was a Systems Analyst until 1991 and was the head of
its TeleMoney Asia-Pacific operations until 2002.
Mr. Jacildo obtained his bachelor of science degree in applied economics from the De La Salle
University in 1982. He also completed the basic management program of the Asian Institute of
Management in 1991.
Gilbert C. Gaw, 62, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 16, 2002 to date
Mr. Gaw has been a Director of I-Remit since 2002. He is a business engaged in steel
manufacturing. He is currently a partner of JPSA Global Services (2003 to date), and a
Director of Treasure Steelworks Corporation (2004 to date) and Zhangzhou Stronghold Steel
Works Co., Ltd. (China) (2003 to date).
He obtained his bachelor of science degree in electronics and communications engineering
from the University of the East in 1973.
58

A. Bayani K. Tan, 56, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such May 18, 2007 to date
Atty. Tan was the Corporate Secretary of I-Remit from 2001 until 2004 and has been a Director
since May 2007. He is currently a Director and Corporate Secretary of the following reporting
companies: First Abacus Financial Holdings Corporation (1994 to date); Sinophil
Corporation (1993 to date); TKC Steel Corporation (2007 to date); Tagaytay Highlands
International Golf Club, Inc. (1993 to date); Destiny Financial Plans, Inc. (2003 to date as
Director and 2009 to date as Corporate Secretary).
Mr. Tan has also been the Corporate Secretary and a Director of Sterling Bank of Asia, Inc. (A
Savings Bank) (2007 to date); FHE Properties, Inc. (1995 to date); Club Asia, Inc. (1999 to
date). He is also a Director for the following private companies: Highlands Gourmet Specialist
Corp. (2006 to date); Destiny LendFund, Inc. (2005 to date); and City Cane Corporation (1993
to date).
He is the Corporate Secretary of the following companies: Belle Corporation (1994 to date);
Pacific Online Systems Corporation (2007 to date); Vantage Equities, Inc. (1993 to date);
Yehey! Corporation (2004 to date); Philequity Fund, Inc. (1997 to date); Philequity Peso Bond
Fund, Inc. (2000 to date); Philequity Dollar Income Fund, Inc. (1999 to date); Philequity PSE
Index Fund, Inc. (1999 to date); HSAI-Raintree, Inc. (1999 to date); Tagaytay Midlands Golf
Club, Inc. (1997 to date); The Country Club at Tagaytay Highlands, Inc. (1995 to date); The
Spa and Lodge at Tagaytay Highlands, Inc. (1999 to date); Monte Oro Grid Resources Corp.
(2006 to date); E-Business Services, Inc. (2001 to date); Hella-Phil., Inc. (1992 to date); JTKC
Equities, Inc. (1998 to date); Goodyear Steel Pipe Corporation (1999 to date); Star Equities
Inc. (2006 to date); Tera Investments, Inc. (2001 to date); The Discovery Leisure Company,
Inc. (2001 to date); Touch Solutions, Inc. (2007 to date); and Karen Marie L. Ty Foundation,
Inc. (1995 to date).
He is a Trustee and the Corporate Secretary of Wellington Dee Ty Foundation, Inc. (2004 to
date). He is also a Trustee (2004 to date) and currently is the Executive Vice President of UP
Law ’80 Foundation, Inc.
Atty. Tan is also the Managing Partner of the law firm of Tan Venturanza Valdez. He also
concurrently holds the following positions: Managing Director, Shamrock Development
Corporation (1988 to date); Trustee, SC Tan Foundation, Inc. (1986 to date); and Legal
Counsel, Xavier School, Inc. (2005 to date). He is also a lecturer in Center for Global
Practices (2009 to date).
In the last five years, he has held the following positions: Director, Monte Oro Resources and
Energy, Inc. (2005 – 2008); Director, Philequity Fund, Inc. (1997 – 2007); Director, Philequity
Peso Bond Fund, Inc. (2000 – 2007); Director, Philequity Dollar Income Fund, Inc. (1999 –
2007); Director, Philequity PSE Index Fund, Inc. (1999 – 2007); Director, APC Group, Inc.
(1996 – 2006); Director, Metro Manila Turf Club, Inc. (1995 – 2006); Corporate Secretary,
International Exchange Bank (1995 – 2006).
Atty. Tan holds a Master of Laws degree from New York University, USA (class of 1988). He
obtained his Bachelor of Laws degree from the University of the Philippines in 1980 where he
was a member of the Order of the Purple Feather (the UP College of Law Honor Society)
having ranked ninth in his class. Atty. Tan was admitted to the Philippine Bar in 1981 after
placing sixth in the examinations. He also has a Bachelor of Arts Degree (Majored in Political
Science) from San Beda College (class of 1976) from where he graduated class valedictorian
and was awarded the medal for academic excellence.
59

Ben C. Tiu, 59, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such May 18, 2001 to date
Mr. Ben Tiu has been a Director of I-Remit, Inc. since 2001 and has also served as the
Chairman and Chief Executive Officer of I-Remit, Inc. from 2001 to 2004. He is also the
Chairman of the Boards of Sterling Bank of Asia, Inc. (A Savings Bank) (2007 to date), TKC
Steel Corporation (2007 to date), and The Discovery Leisure Company (the group behind the
Discovery Suites Hotel, The Country Suites at Tagaytay City and Discovery Shores Boracay)
(2001 to date). He is the Corporate Nominee in the Philippine Stock Exchange of Fidelity
Securities, Inc. (1998 to date). He is also a Director of Iremit Singapore Pte Ltd (2001 to date).
He also concurrently holds the following positions: Chairman, Tera Investments, Inc. (2001 to
date); President, JTKC Equities, Inc. (1993 to date); President, Union Pacific Ace Industries,
Inc. (1978 to date); President, Britishwire Industries Corporation (1976 to date); President,
Goodway Marketing Corporation (1998 to date); Executive Vice President, Hotel System Asia,
Inc. (1996 to date); Executive Vice President, JTKC Realty Corporation (1989 to date);
Executive Vice President, Pan Asean Multi Resources Corporation (1976 to date); Executive
Vice President and Treasurer, Aldex Realty Corporation (1982 to date); and Vice President,
Goodyear Steel Pipe Corporation (1976 to date). Mr. Tiu was also formerly the Vice Chairman
of the Board and Chairman of the Executive Committee of the International Exchange Bank
(1995 – 2006).
He obtained his master in business administration degree from the Ateneo de Manila
University Graduate School of Business in 1977 and his bachelor’s degree in mechanical
engineering from the Loyola Marymount University, USA in 1975.
John Y. Tiu, Jr., 35, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 16, 2002 to date
Mr. John Tiu has served as Director of I-Remit since 2002. He is also presently Chairman and
President of Tera Investments, Inc. (2003 to date); and a Director of Sterling Bank of Asia, Inc.
(A Savings Bank) (2007 to date). He is also the Director and Treasurer of the following
companies: Star Equities Inc. (2006 to date); Touch Solutions, Inc. (2001 to date); JTKC
Equities, Inc. (2003 to date); JTKC Land, Inc. (2003 to date); The Discovery Leisure Company,
Inc. (2001 to date); Cay Islands Corporation; Palawan Cove Corporation; Sonoran
Corporation; Tofino Corporation; Discovery Country Suites, Inc. (2004 to date). He is a
Director of Oakridge Properties, Inc. (2003 to date), Enderun Colleges, Inc., JT Perle
Corporation, One Cerrada Corporation, Sagesoft Solutions, Inc. and Tokyo Holdings, Inc. He
is a Director and President of Southern Visayas Property Holdings, Inc. (2003 to date), Director
and First Vice President of JTKC Realty Corporation (2005 to date) and the President of
Fidelity Securities, Inc. (2002 to date).
Mr. John Tiu obtained his bachelor of science in electrical engineering degree (minor in
mathematics) from the University of Washington, USA in 1998.
60

Ruben C. Tiu, 55, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such May 18, 2007 to date
Mr. Ruben Tiu has served as Director of I-Remit from 2002 to 2004 and was reappointed as
such on May 18, 2007. He currently holds the following positions: Director, Sterling Bank of
Asia, Inc. (A Savings Bank) (2007 to date); Director, Star Equities Inc. (2006 to date); Director
Tera Investments, Inc. (2001 to date); President, JTKC Realty Corporation (1988 to date);
President, Pan-Asean Multi Resources Corporation (1988 to date); President, Aldex Realty
Corporation (1988 to date); President, Oakridge Properties, Inc. (1996 to date); Executive Vice
President, JTKC Equities, Inc. (1993 to date).
Mr. Ruben Tiu obtained his bachelor of science in business administration degree from the De
La Salle University in 1976.
Calixto V. Chikiamco, 61, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 16, 2002 to date
Mr. Chikiamco has been a Director of I-Remit since 2002. He is a former columnist of the
Manila Standard and the Manila Times. He has authored two (2) books: “Reforming the
System” (Orange Publications and Kalikasan Press, 1992) and “Why We Are Who We Are”
(Foundation for Economic Freedom, 1998). In 2001, he was awarded by the Archdiocese of
Manila for the Best Business Column (“Agriculture, Not IT”, Manila Standard) in the Catholic
Mass Media Awards. He is the founder and CEO of Mobilemoco, Inc. ; founder and president
of MRM Studios, Inc., a company involved in mobile entertainment, digital musical services,
and e-commerce (2001 to date). He also concurrently holds the following positions: Director,
UPCC Securities (1999 to date); Vice Chairman, CBY, Inc. (1999 to date); Director, Golden
Sunrise (1984 to date); Director, APMC (1985 to date); Director, Foundation for Economic
Freedom (1996 to date). He is also involved in several professional and civic organizations
such as the Foundation for Economic Freedom where he is the President. He is also presently
a columnist of Business World and a property rights consultant to the Asia Foundation. He is a
member of the Philippine Internet Commerce Society and the Syracuse University Alumni
Association.
Mr. Chikiamco holds a Master’s degree in Professional Studies in Media Administration from
the Syracuse University (New York, USA). He obtained his bachelor’s degree in economics
summa cum laude from the De La Salle University.
61

In accordance with the requirements of Section 38 of the Securities Regulation Code, the
Revised SRC Rules, and the Company’s Manual on Corporate Governance, the following
Directors were nominated and elected as Independent Directors of the Company during the
Annual Stockholders’ Meeting held on July 29, 2011:
Jose Joel Y. Pusta, 59, Filipino
Independent Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 16, 2002 to date
Mr. Pusta has been a Director of I-Remit since 2002. He was a Director and Vice President of
Confed Properties, Inc. (1997 to 2009). He was also the Corporate Secretary and a Trustee
of the Kabalikat ng Migranteng Pilipino, Inc. (KAMPI) (2003 to 2009) and the President and a
Trustee of the Kassel Condominium Corporation (2002 to 2009).
Mr. Pusta obtained his bachelor of science in commerce degree (majored in accounting) from
the University of San Carlos in Cebu City in 1974. He has also earned units leading to the
master in business administration degree at the Ateneo de Manila University Graduate School
of Business from 1985 to 1988. He is a certified public accountant (CPA) and a member of the
Philippine Institute of Certified Public Accountants (PICPA) and the Institute of Internal
Auditors, Philippines.
Gregorio T. Yu, 53, Filipino
Director
Director’s Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such May 18, 2007 to date
Mr. Yu was a Director of I-Remit, Inc. from 2001 to 2004 and was re-elected as an
Independent Director of the Company on May 18, 2007. He is currently the Chairman of CATS
Automobile Corporation (2004 to date), Chairman of CATS Motors, Inc. (2000 to date),
Chairman of CATS Asian Cars, Inc. (Mazda Greenhills) (2004 to date), Director, Prople BPO,
Inc. (formerly Summersault, Inc.) (2006 to date), Director and Treasurer of CMB Partners, Inc.
(2003 to date), and President of the Domestic Satellite Corporation of the Philippines (2001 to
date). He is also the Vice Chairman of the Board and the Chairman of the Executive
Committee Sterling Bank of Asia, Inc. (2006 to date) and Chairman and President of Lucky
Star Network Communications Corporation (1994 to date). He is also concurrently a Director
of the following companies: National Reinsurance Corporation, (2011 to date); Ripple E-
Business International, Inc. (2010 to date); Jupiter Systems, Inc. (2001 to date); Wordtext
Systems, Inc. (2001 to date); Yehey, Inc. (2001 to date); Philequity Fund, Inc. (1994 to date)
Philequity PSE Index Fund, Inc. (1999 to date); Philequity Dollar Income Fund, Inc. (1999 to
date); Philequity Peso Bond Fund, Inc.; Philequity Strategic Growth Fund, Inc.; Philequity
Foreign Currency Fixed Income Fund, Inc.; Philequity Balanced Fund; and Philequity
Resources Fund, Inc. Mr. Yu is also a Trustee of the Government Service Insurance System
(2010 to date). He is also a Board Member of Ballet Philippines (2009 to date) and Manila
Symphony Orchestra (2009 to date), and a Trustee of the Xavier School, Inc. (1998 to date)
and a Trustee and the Chairman, Ways and Means Committee of the Xavier School
Educational and Trust Fund, Inc. (1998 to date).
Mr. Yu was formerly the President and Chief Executive Officer of Belle Corporation (1989 –
2001). He was also a Director and a Member of the Executive Committee of The International
Exchange Bank (1995 – 2006). He was also a Director of the following companies: Nexus
Technologies, Inc. (2001 – 2011); R.S. Lim & Co., Inc. (1997- 2008); and Ivantage Corporation
(1993 – 2006). He was also the President of the following organizations: Tagaytay Highlands
International Golf Club (1991 – 2001); President, The Country Club and Tagaytay Highlands
(1995 – 2001). He was also the President and Chief Executive Officer of Sinophil Corporation
(1993 – 2001) and Pacific Online Systems Corporation (1994 – 2001). He was also the Vice
Chairman of Philippine Global Communications (1996 – 2001) and the APC Group, Inc. (1994
– 2001). He was also connected with the Chase Manhattan Asia Limited as Director of
Corporate Finance (1988 – 1999) and with The Chase Manhattan Bank, NA Asia Pacific
Regional Headquarters as Vice President – Area Credit. He was also a Second Vice
President of the Chase Manhattan Bank, NA Manila Offshore Banking Unit from 1983 to 1986.
62

He was also the Assistant Vice President of R.S. Lim and Company, Inc. from 1978 to 1981
and a Lecturer in Economics at Dela Salle University from 1978 to 1980.
Mr. Yu obtained his Master of Business Administration degree from The Wharton School,
Graduate of the University of Pennsylvania in 1983. He obtained his bachelor of arts degree in
economics summa cum laude from the De La Salle University in 1978.
The above directors shall hold office from their date of election until the next annual
shareholders meeting or their resignation unless sooner terminated or removed in accordance
with law.
63

The names, ages, citizenship, present positions, previous positions, terms of office, and period
served by the Corporate Secretary and the Assistant Corporate Secretary are as follows:
Maria Cecilia V. Soria, 35, Filipino
Corporate Secretary
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such July 29, 2011 to date
Atty. Atty. Soria is the incumbent Corporate Secretary of I-Remit, Inc. She is also the Assistant
Corporate Secretary of the following companies: Sterling Bank of Asia, Inc., E-Business
Services Inc., FHE Properties Inc., Highlands Gourmet, iRipple, Inc., Philequity Management,
Inc., Touch Solutions, Inc., and JTKC Equities, Inc. She obtained her Bachelor of Arts degree
in Political Science and Bachelor of Laws degree from the University of the Philippines in 1998
and 2006, respectively. She is currently an associate of Tan Venturanza Valdez (2010 to
date). She was formerly connected with Reyes-Fajardo & Associates (2009 – 2010), SGV &
Co. (a member practice of Ernst & Young) (2008 – 2009), and Medialdea Ata Bello & Guevarra
law office (2007 – 2008). She was admitted to the Philippine bar in May 2007.
Darlene R. Vivas, 29, Filipino
Assistant Corporate Secretary
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such July 29, 2011 to date
Atty. Vivas is the incumbent Assistant Corporate Secretary of I-Remit, Inc. She is also the
Assistant Corporate Secretary of the following companies: Jolliville Holdings Corporation; The
Country Club at Tagaytay Highlands, Inc.; and Tagaytay Midlands Golf Club Inc. She obtained
her bachelor of arts degree in political science from the University of the Philippines and
bachelor of laws degree from San Beda College of Law in 2003 and 2009, respectively. She is
currently an associate of Tan Venturanza Valdez (2011 to date). She was formerly connected
with Pizarras & Associates (2009 – 2010) and Santos Parungao Aquino Abejo & Santos law
office (2010). She was admitted into the Philippine bar in May 2010.
64

The names, ages, citizenship, present positions, previous positions, terms of office, and period
served of all Executive Officers are as follows:
Bansan C. Choa, 57, Filipino
Director, Chairman and Chief Executive Officer
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such 2005 to date
(see above for business experience and positions held under “Directors”)
Harris Edsel D. Jacildo, 50, Filipino
Director, President and Chief Operating Officer
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such February 4, 2002 to date
(see above for business experience and positions held under “Directors”)
Ronald A. Benito, 42, Filipino
Senior Vice President & Head, International Treasury
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such November 15, 2010 to date
Mr. Benito joined I-Remit, Inc. in 2010 and currently heads the Company’s international
treasury unit in charge of trading its foreign currencies. He was previously connected with
ICAP AP (Singapore) as director of new business initiatives(2007-2010) and vice president
and deputy treasurer of Banco Santander Central Hispano (2001-2004)
He obtained his bachelor of arts degree in economics cum laude from the University of Santo
Tomas in 1991. He obtained his master of arts degree in international relations (school of
politics) in 2005 from the University of Durham, United Kingdom and his master of science
degree in economics and international business in 2007 from City University London.
Ma. Elizabeth G. Yao, 41, Filipino
Senior Vice President & Head, Service and Operations Division
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such August 12, 2002 to date
Ms. Yao joined I-Remit in 2002 and has since been in charge of its Service and Operations
Division. She was previously an equities sales officer of Belson Securities, Inc. (1997 – 2002).
She was previously connected with the institutional sales group of Belson PrimeEast Capital
(1996 – 1997) and was also a money market trader of the Security Bank Corporation (1995 –
1996).
She obtained her bachelor’s degree in business administration from the University of the
Philippines in 1994. She also attended the business administration program of the University
of New Mexico (USA) from 1988 to 1990.
Bernadette Cindy C. Tiu, 33, Filipino
First Vice President & Chief Financial Officer; Head, Finance Division
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such April 1, 2005 to date
Ms. Tiu has been the Chief Financial Officer of I-Remit since 2006. She was previously the
Finance Manager of IRemit Global Remittance Limited in the United Kingdom (2003) and
International Remittance (Canada) Ltd. (2004), both wholly-owned subsidiaries of the
Company. She joined I-Remit, Inc. in Manila in 2005 as Treasurer and Corporate Governance
Head.
65

She obtained her bachelor’s degree in business administration (majored in accounting and
finance) from the Boston University School of Management in 2001.
Fitzgerald S. Duba, 47, Filipino
Vice President & Compliance Officer; Head, Corporate Affairs and Information Division
Term of Office July 29, 2011 until the next annual stockholders’ meeting
Period Served as Such November 16, 2007 to date
Mr. Duba was a Vice President and the head of the Corporate Strategy Division of the Rizal
Commercial Banking Corporation (RCBC) from 2002 to 2005, where he was employed for 12
years. He was also a management consultant in the Management Services Division of SyCip
Gorres Velayo & Co (SGV) and later, the Manila office of Andersen Consulting.
He obtained his bachelor’s degree in industrial engineering from the University of the
Philippines in 1987 and completed the basic banking course of the Asian Institute of
Management in 1996. He also completed the corporate governance seminar of the Bangko
Sentral ng Pilipinas (BSP) in 2000. He is a member of the Philippine Institute of Industrial
Engineers.
66

(2) Significant Employees
There is no person other than the entire human resources as a whole, and the executive
officers who are expected to make a significant contribution to the Company.
(3) Family Relationships
Directors Ben C. Tiu, John Y. Tiu, Jr. and Ruben C. Tiu are brothers. Bernadette Cindy C. Tiu,
First Vice President and Chief Financial Officer of the Company, is a daughter of Director Ben
C. Tiu.
There are no other family relationships among the directors or the officers listed.
67

(4) Involvement in Certain Legal Proceedings
As a result of the delay in the delivery of the facilities of the Universal Leisure Club, Inc.
(ULCI), some of its members have initiated legal actions against ULCI, the Universal Rightfield
Property Holdings, Inc. (URPHI) and the Universal Leisure Corp. (ULCorp), as well as their
respective incumbent and former officers and directors, including their former Corporate
Secretary, A. Bayani K. Tan. The cases filed include:
i. Civil actions for breach of contract and/or of contract, specific performance, quieting of
title and reimbursement, damages with request for receivership and preliminary
attachment (Civil Case Nos. MC03-075, MC03-077, and MC04-082) before the RTC of
Mandaluyong City, which cases have been settled and the RTC Mandaluyong has, on 08
February 2006, promulgated a Joint Decision approving the Settlement Agreement,
Supplemental Agreement, and Second Supplemental Agreement re: Civil Case Nos.
MC03-077 and MC04-082. RTC Mandaluyong, noting the settlement of Civil Case Nos.
MC03-077 and MC04-082, likewise issued an Order dated 18 May 2006 re: Civil Case
No. MC-075 holding that the aforementioned settlement agreement likewise puts an end
to Civil Case No. MC03-075, as it involves substantially similar factual antecedents, and
holding further that the complaint and counterclaims of the parties are withdrawn with
prejudice. While the main cases have been settled, a group of ULCI members who were
not included in the settlement and are not in favor of its terms have initiated suit to nullify
the same. RTC Mandaluyong has rejected such moves to assail the settlement,
prompting said group to elevate their complaint to the Court of Appeals. The Court of
Appeals partially granted the group’s prayer and revived the writs of attachment and
garnishment but only to such extent as to cover the remaining claims. Respondents filed
a timely petition with the Supreme Court, where it is currently pending.
ii. A Complaint for Estafa (docketed as I.S. No. 08-K-19713) filed before the City Prosecutor
of Manila. A Counter-Affidavit has already been filed before the City Prosecutor seeking
to dismiss the Complaint for lack of cause of action.
Except as provided above, the Company is not aware of any of the following events wherein
any of its directors, executive officers, nominees for election as director, executive officers,
underwriter or control persons were involved during the past five (5) years up to the latest date.
(1) Any bankruptcy petition filed by or against any business of which any of the above
persons was a general partner or executive officer either at the time of bankruptcy or
within two years prior to that time;
(2) Any order or judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, domestic or foreign, permanently or temporarily
enjoining, barring, suspending or otherwise limiting the involvement of any of the
above persons in any type of business, securities, commodities, or banking activities;
and
(3) Any findings by a domestic or foreign court of competent jurisdiction (in civil action), the
SEC or comparable foreign body, or a domestic or foreign exchange or electronic
marketplace or self-regulatory organization, that any of the above persons has violated
a securities or commodities law, and the judgment has not been reversed, suspended,
or vacated.
The Company and its major subsidiaries and associates are not involved in, nor are any of
their properties subject to, any material legal proceedings that could potentially affect their
operations and financial capabilities.
68

Item 10. Executive Compensation
(B) Executive Compensation
(1) Summary Compensation Table
The following table summarizes the aggregate compensation paid or accrued during the last
two (2) calendar years and to be paid in the ensuing calendar year to the Company’s Chief
Executive Officer and four (4) other most highly compensated officers:
Year Name Principal Position
2012
(Estimate)
2011
(Actual)
2010
(Actual)
(2) Compensation of Directors
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
69
Aggregate
Compensation
9,745,799.32
All other officers and directors as a group unnamed 12,196,840.85
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
9,346,922.42
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed 11,541,657.95
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
8,658,723.75
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed 9,593,788.01
The directors receive per diems for attendance in meetings of the Board but do not receive
compensation from the Company for services rendered. There are no other standard
arrangements, including consultancy contracts, pursuant to which any Director of the Company
was compensated, or is to be compensated, directly or indirectly, for any services provided as
a Director, including any additional amounts payable for committee participation, or special
assignments, during the Company’s last completed fiscal year, and the ensuing year.
(3) Employment Contracts and Termination of Employment and Change-in-Control Arrangements
There was no compensatory plan or arrangement with respect to named Executive Officers
that resulted or will result from the resignation, retirement or termination of such executive
officer from a change-in-control of the Company.
(4) Warrants and Options Outstanding: Repricing
No warrants or options on the Company’s shares of stock have been issued to the Directors or
Executive Officers as a form of compensation for services rendered.

Item 11. Security Ownership of Certain Beneficial Owners and Management
(1) Security Ownership of Certain Record and Owners
The following are known to the registrant to be directly or indirectly the record or beneficial owner of
more than five per cent (5%) of registrant’s voting securities (registrant has only one class of voting
security, i.e., common shares) as of December 31, 2011:
Class
Name and Address of Record
Owner and Relationship with
Issuer
Common PCD Nominee Corporation
G/F Makati Stock Exchange
Building, 6767 Ayala Avenue,
Makati City
(stockholder)
Common Star Equities Inc.
2/F JTKC Center
2155 Pasong Tamo
Makati City
Common Surewell Equities, Inc.
690-A Quirino Ave.
Tambo, Paranaque City
Common JTKC Equities, Inc.
2/F JTKC Center
2155 Pasong Tamo
Makati City
Name and Address of
Beneficial Owner and
Relationship with
Number of Per cent
Record Owner Citizenship Shares Held
(Please see note below) Filipino 240,775,288¹ 38.9777%
Same as record owner Filipino 174,260,047 28.2099%
Same as record owner Filipino 134,248,290 21.7327%
Same as record owner Filipino 47,771,295 7.7334%
NOTE: PCD Nominee Corporation (“PCDNC”) is a wholly-owned subsidiary of the Philippine Central Depository, Inc. The
beneficial owners of such shares of the Company registered under the name of PCDNC are PCD’s participants who hold the
shares in there own behalf or in behalf of their clients. No PCD participant currently owns more than five per cent (5%) of
the Corporation’s shares forming part of the PCNDC account except Fidelity Securities, Inc., viz:
Class
Common
Name and Address of Owner
and Relationship with Issuer Citizenship Number of Shares Per cent Held
Fidelity Securities, Inc.*
2/F JTKC Centre
2155 Pasong Tamo, Makati City
Filipino 146,307,994² 23.6849%
* Fidelity Securities, Inc. (“Fidelity”) is a registered broker and dealer in securities and holds the shares of the Company in favor of beneficial
owners who hold the shares in their own behalf or on behalf of their respective clients.
Includes 4,873,000 and 10,000,000 Treasury shares purchased from the stock market under the Buy-back Program that were approved by
the Board on September 16, 2011 and August 15, 2008, respectively.
2 Includes 68,839,952 shares in favor of beneficial owner JTKC Equities, Inc. which owns a total of 116,611,247 shares or per cent held of
18.8775%.
70

(2) Security Ownership of Management (Individual Directors and Executive Officers)
Title of
Nature of Legal &
Per cent of
Class Name of Beneficial Owner Number of Shares Beneficial Ownership Citizenship Class
Common Bansan C. Choa 855,800 Direct Filipino 0.13854%
550,000 Indirect 0.08904%
Common Armin V. Demetillo 55,110 Direct Filipino 0.00892%
Common Harris Edsel D. Jacildo 17,930 Direct Filipino 0.00290%
Common Calixto V. Chikiamco 110 Direct Filipino 0.00002%
Common Gilbert C. Gaw 902,764 Direct Filipino 0.14614%
Common Jose Joel Y. Pusta 110 Direct Filipino 0.00002%
Common A. Bayani K. Tan 573,044 Direct Filipino 0.09277%
Common Ben C. Tiu 1,199,033 Direct Filipino 0.19410%
Common Ruben C. Tiu 416,856 Direct Filipino 0.06748%
Common John Y. Tiu, Jr. 166,419 Direct Filipino 0.02694%
Common Gregorio T. Yu 110 Direct Filipino 0.00002%
Common Bernadette Cindy C. Tiu 154,990 Direct Filipino 0.02509%
466,950 Indirect 0.07559%
The aggregate number of shares owned of record by all Directors and Executive Officers as a group
named herein as of December 31, 2011 is 5,359,226 common shares or approximately 0.87% of the
Company’s common shares. This includes the indirect ownership of 924,500 shares representing
0.16% of total outstanding and issued common shares.
(3) Voting Trust of 5% or More
The Company is not aware of any voting trust agreement executed granting any person the right to
exercise the voting rights of a holder of 5% or more of the securities.
(4) Changes In Control
There are no arrangements, existing or otherwise, which may result in a change in control of the
Company.
71

Item 12. Certain Relationships and Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Group transacts with its related parties. Under the Group’s
existing policies, these transactions are made substantially on the same terms and conditions as
transactions with other individuals and businesses of comparable risks. The Group engages in
transactions with related parties consisting primarily of the following:
(a) Delivery fees earned from clients of associates are as follows:
2011 2010
Hwa Kung Hong & Co., Ltd. (HKHCL) PHP46,127,251 PHP33,202,567
IRemit Singapore Pte Ltd (ISPL) 24,463,777 25,080,948
PHP70,591,028 PHP58,283,515
(b) The Parent Company, as Lessor, entered into four (4) Lease Agreements (please refer to Item 2.
Properties), covering its occupancy of its offices at the 25 th , 26 th and 27 th floors of the Discovery Center, at
No. 25 ADB Avenue, Ortigas Center, Pasig City, with Oakridge Properties, Inc., a related party by virtue of
JTKC Equities, Inc.’s ownership of the Discovery Leisure Company, Inc. which in turn owns Oakridge
Properties, Inc.
(c) I-Remit has office sharing arrangements with Surewell Equities Pte. Ltd. in Singapore for an initial term of
two (2) years. Mr. Bansan C. Choa, Chairman and Chief Executive Officer, is a shareholder in this company.
(d) The Parent Company maintains deposit accounts with the Sterling Bank of Asia, Inc. (A Savings Bank)
amounting to PHP118.6 million and PHP129.7 million as of December 31, 2011 and 2010, respectively.
These deposits earned PHP0.43 million and PHP1.12 million interest income in 2011 and 2010, respectively.
In 2011 and 2010, the Company has funded its retirement plan amounting to PHP 6.9 million and PHP 5.2
million, respectively, and maintained with Sterling Bank of Asia. The said bank’s majority shareholders are:
JTKC Equities, Inc., Surewell Equities, Inc. and Star Equities Inc.
In the normal course of doing business, there were occasions when the stockholders would be advancing
funds for working capital requirements of the Company. Reciprocally, there would also be occasions when
the Company would have excess funds and would employ these to advance funds to some of its affiliates,
payable on demand. In prior years, advances were made to foreign offices which, as these still in the
process of starting their commercial operations, were then owned by the stockholders or associates or
companies owned by the stockholders. The funds were then used either as working capital, to maintain cash
balances in bank accounts or for provision of cash bonds. Presently, these foreign offices are either
subsidiaries or affiliates of I-Remit.
Further to the Company’s usual course of business, it also advances funds to its subsidiaries, associates,
and affiliates. These are accounts receivable from subsidiaries, associates, and affiliates pertaining to
remittance transactions. These also consist of advances made to subsidiaries, associates, and affiliates for
working capital to maintain cash balances in bank accounts and to cover other financial and operating
requirements. The receivables are usually settled on the next banking day. On the other hand, advances
made to cover financial and operating requirements are due on demand.
In addition to the related information disclosed elsewhere in the consolidated financial statements,
the following are the yearend balances in respect of transactions with related parties which were
carried in terms that prevail in arm’s length transactions during the year:
2011 2010
Due from related parties - Associates:
IRemit Singapore Pte Ltd (ISPL) PHP16,034,603 PHP16,104,921
Hwa Kung Hong & Co., Ltd. (HKHCL) 8,986,123 10,888,056
PHP25,020,726 PHP26,992,977
Due to related parties – Directors: PHP- PHP1,431,156
72

Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due
on demand.
Advances to directors are non-interest bearing and are due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
In 2010, the Parent Company recognized dividend income amounting PHP0.6 million from
dividends declared by IRemit Singapore Pte Ltd.
The compensation of the key management personnel of the Group in 2011 and 2010 are as
follows:
2011 2010
Short-term employee benefits PHP27,036,984 PHP21,059,431
Post-employment benefits 1,571,444 549,541
PHP28,608,428 PHP21,608,972
The law firm of Tan Venturanza Valdez is among the firms engaged by the Company to render legal services.
Atty. A. Bayani K. Tan, a Director of the Company, is a managing partner of this firm while Atty. Maria Cecilia
V. Soria, the current Corporate Secretary, Atty. Nancy Joan M. Javier, former Corporate Secretary, and Atty.
Darlene R. Vivas, Assistant Corporate Secretary are associates. During the year, the Company paid Tan
Venturanza Valdez certain legal fees that the Company believes to be reasonable for the services rendered.
73

Item 13. Corporate Governance
PART IV. CORPORATE GOVERNANCE
I-Remit practices the principles of good corporate governance – transparency, accountability, fairness, and
responsibility – in reporting financial and non-financial information about its activities and in its manner of
conducting business with its customers, investors, staff, stockholders, and its various publics.
The basic foundation and framework for corporate governance of I-Remit, Inc. is contained in its Articles of
Incorporation and its By-Laws and in their subsequent amendments.
In ensuring adherence to the principles of good corporate governance, the Board establishes the vision,
strategic direction, key objectives, and the major policies and procedures for the management of the
Company. The Board also ensures that internal control mechanisms are in place and adequate for good
governance.
Manual on Corporate Governance
On June 22, 2007, the Board of Directors approved and adopted the Company’s Manual on Corporate
Governance (“Manual”) pursuant to SEC Memorandum Circular No. 2, Series of 2002 issued by the
Securities and Exchange Commission on April 5, 2002. The Manual contains the principles of good
corporate governance and best practices and is intended to be kept updated with new governance-related
regulatory issuances. The Manual also established and defined the responsibilities and functions of the
Board and various Board committees necessary for good corporate governance, i.e., Audit Committee;
Compensation and Remuneration Committee; and the Nominations Committee. The Manual also defines the
functions of the Corporate Secretary and prescribes the roles of the Company’s external and internal
auditors.
On February 18, 2011, the Board of Directors adopted the Company’s Revised Manual on Corporate
Governance in compliance with SEC Memorandum Circular No. 6, Series of 2009: Revised Code of
Corporate Governance.
In addition, the Company also has a Conduct, Discipline and Ethics (CODE) Manual that was first adopted on
May 1, 2004 and subsequently revised on July 7, 2004. This manual contains guidelines on matters
involving work performance; professionalism; behavior and dealings with employees, directors, customers,
and business partners; and handling of assets, records and information. This manual is in the process of
being revised to include standards on matters of good corporate governance such as insider trading and the
avoidance of conflict of interest situations.
Independent Directors
In accordance with SEC Memorandum Circular No. 16 Series of 2002, Guidelines on the Nomination and
Election of Independent Directors, two (2) of the eleven members of the Board of Directors are Independent
Directors in the persons of Messrs. Jose Joel Y. Pusta and Gregorio T. Yu.
As used in Section 38 of the SRC, an independent director is a person who, apart from his fees and
shareholdings, is independent of management and free from any business or other relationship which could,
or could reasonably be perceived to, materially interfere with his exercise of independent judgment in
carrying out his responsibilities as a Director of the Company.
In accordance with SEC Notice on Certificate of Qualification dated October 20, 2006, the Independent
Directors of I-Remit have, on August 1 and 12, 2011, executed sworn Certifications of Independent Directors
stating that they possess all the qualifications and none of the disqualifications to serve as Independent
Directors of the Parent Company, as provided for in Section 38 of the Securities Regulation Code. The
Certifications of Independent Directors have been submitted to the Securities and Exchange Commission on
August 16, 2011.
74

Committees of the Board of Directors
In aid of good corporate governance, the Company’s Board created each of the following committees and
appointed Board members thereto during the organizational meeting of the Board on July 29, 2011. Each
member of their respective committees named below began holding office on July 29, 2011 and will serve
until his successor shall have been duly qualified and elected.
Executive Committee
Except as provided in Section 35 of the Corporation Code, the Executive Committee has and
exercises all such powers as may be delegated to it by the Board. It acts on matters in accordance
with the authorities granted to it in case a full Board meeting cannot be convened. The The actions
and decisions of the Executive Committee are reported to and are ratified by the Board.
The Executive Committee is composed of the following: Mr. Armin V. Demetillo as Chairman, and
Messrs. Bansan C. Choa, Gilbert C. Gaw, Harris E. D. Jacildo, and Ben C. Tiu as Members.
Audit Committee
The Audit Committee is responsible in assisting the Board in its fiduciary responsibilities by providing
an independent and objective assurance to I-Remit’s management and shareholders of the
continuous improvement of the Company’s risk management systems and business operations, and
the proper safeguarding and use of the Company’s resources and assets. It also ensures that the
Board will take appropriate corrective action in addressing control and compliance issues of the
Company.
I-Remit’s Audit Committee shall have no less than three (3) members at least two (2) of whom are
Independent Directors, one of whom shall serve as the Committee’s Chairman. The Committee
reports to the Board and meets at twice every month.
The Audit Committee is composed of the following: Mr. Gregorio T. Yu (Independent Director) as
Chairman, and Messrs. Bansan C. Choa, John Y. Tiu, and Harris D. Jacildo as Members.
Compensation and Remuneration Committee
The Remuneration and Compensation Committee is responsible for objectively recommending a
formal and transparent framework of remuneration and evaluation for the members of the Board and
the Company’s Executive Officers. The committee is also responsible for providing oversight on the
remuneration of the Executive Officers and other key personnel and for ensuring that compensation is
always consistent with the Company’s culture, corporate strategy and control environment.
The Compensation and Remuneration Committee is composed of three (3) members of the Board,
one of whom is an Independent Director. The committee is composed of the following: Messrs.
Bansan C. Choa, Armin V. Demetillo, and Gregorio T. Yu (Independent Director).
75

Nomination Committee
The Nomination Committee is responsible for implementing a process that ensures that all Directors
to be nominated for election at the Annual Stockholders’ Meeting are all qualified and have none of
the disqualifications for Directors as provided in the Company’s By-Laws and Manual on Corporate
Governance. The committee provides the shareholders with an independent and objective evaluation
and assurance that the members of the Board will foster the Company’s long-term success and
competitiveness. The Nomination Committee is also responsible for reviewing and evaluating the
qualifications of all persons nominated to positions requiring appointment by the Board and for
assessing the Board’s effectiveness in directing the process of reviewing and replacing Board
members. The committee is also responsible for reviewing the qualifications of executives prior to
movement, promotion, or hiring.
The By-Laws of the Company require that all nominations for Directors shall be submitted to the
Nomination Committee by any stockholder of record on or before January 30 of each year to allow for
sufficient time to assess and evaluate the qualifications of the nominees. All nominations for
Independent Directors shall be signed by the nominating stockholder and shall bear the acceptance
and conformity of the persons nominated.
The Company’s Nomination Committee is composed of three (3) members of the Board, including one
(1) independent director and one non-voting member in the person of the Human Resources
Manager. The Company’s Nomination Committee reports directly to the Board and meets whenever
necessary to review and evaluate the qualifications of all persons nominated to the Board as well as
those nominated to other positions requiring appointment by the Board.
The Nomination Committee is composed of Messrs. Bansan C. Choa, Armin V. Demetillo, and
Gregorio T. Yu (Independent Director), and Ms. Catherine M. Chan (Head, Human Capital
Management Department).
76

Report on Attendance of Corporate Governance Seminars by Members of the Board of Directors
The following is an updated report on the attendance by the Directors of the Company of Corporate
Governance Seminars:
Name of Director Date/s Attended Institution
1 Chikiamco, Calixto V. Jan. 8, 2008 De La Salle Professional Schools, Inc.
Graduate School of Business, Makati City
2 Choa, Bansan C. Jun. 4 & 5, 2003 Rural Bankers’ Research and Development
Foundation, Inc., Academy for Banking in the
Countryside, Manila (for the directors of GMA
Rural Bank of Cavite)
3 Gaw, Gilbert C. Jan. 8, 2008 De La Salle Professional Schools, Inc.
Graduate School of Business, Makati City
4 Jacildo, Harris E. D. May 24 & 25, 2007 Development Finance Institute, Makati City
5 Pusta, Jose Joel Y. (Independent) Jan. 30 & 31, 2003 De La Salle Professional Schools, Inc.
Graduate School of Business, Makati City
6 Demetillo, Armin V. July 30 & 31, 2009 Development Finance Institute/Bangko Sentral
ng Pilipinas, Makati City
7 Tan, A. Bayani K. Oct. 17 & Dec. 17, 2001 Institute of Corporate Directors, Makati City
(for the directors of The International
Exchange Bank)
8 Tiu, Ben C. Oct. 17 & Dec. 17, 2001 Institute of Corporate Directors, Makati City
(for the directors of The International
Exchange Bank)
9 Tiu, John Jr. Y. Oct. 17 & Dec. 17, 2001 Institute of Corporate Directors, Makati City
(for the directors of The International
Exchange Bank)
10 Tiu, Ruben C. Oct. 17 & Dec. 17, 2001 Institute of Corporate Directors, Makati City
(for the directors of The International
Exchange Bank)
11 Yu, Gregorio T. (Independent) Dec. 17, 2002 Institute of Corporate Directors, Makati City
77

Evaluation System
The Company also adopted an evaluation system based on a self-assessment rating questionnaire to
determine the extent of compliance with the provisions of the Manual.
On December 11, 2007, the Board appointed a Compliance Officer to monitor and ensure compliance with
the provisions of the Manual.
The Company also adopted an evaluation system based on a self-assessment rating questionnaire to
determine the extent of compliance with the provisions of the Manual.
Results of Evaluation
Based on the results of the evaluation performed, there has been no significant deviation and, in general, the
Company has complied with most of the provisions and requirements of the Manual, SEC Memorandum
Circular No. 6 Series of 2009: Revised Code of Corporate Governance, and the leading practices and
principles of good corporate governance for the year 2009.
The Company’s Certificate of Compliance with the Manual on Corporate Governance (SEC Form MCG-2002)
was submitted by the Compliance Officer to the Securities and Exchange Commission and disclosed to the
Philippine Stock Exchange on January 18, 2011.
The Company accomplished and submitted the 2011 Corporate Governance Guidelines for Listed
Companies Disclosure Template of The Philippine Stock Exchange, Inc. on March 28, 2012.
78

PART V. EXHIBITS AND SCHEDULES
The other exhibits, as indicated in the Index to Exhibits, are either not applicable to the Company or require no
answer.
(a) Exhibit
A – Aging of Consolidated Receivables, Unaudited, December 31, 2011
(b) Reports on SEC Form 17-C
Reports under SEC Form 17-C (Current Report) that were filed during the last six (6) moths covered
by this report:
Date Report
July 28, 2011
Press release: I-Remit, Inc. opens its doors in Italy
July 29, 2011 Election of directors in the 2011 Annual Stockholders’ Meeting and the appointment of officers
and committee members in the subsequent organizational meeting of the Board of Directors;
Stock dividend update
Elected members of the Board of Directors
“Please be advised that during the annual shareholders’ meeting of I-Remit, Inc (“Corporation”)
held today, the following were elected as members of the Board of Directors of the Corporation for
the year 2011 – 2012 to hold office as such until their successors shall have been duly elected
and qualified:
Jose Joel Y. Pusta - Independent Director
Gregorio T. Yu - Independent Director
Calixto V. Chikiamco - Director
Bansan C. Choa - Director
Armin V. Demetillo - Director
Gilbert C. Gaw - Director
Harris E. D. Jacildo - Director
A. Bayani K. Tan - Director
Ben C. Tiu - Director
John Y. Tiu, Jr. - Director
Ruben C. Tiu - Director
During the same meeting, the shareholders approved the audited financial statements of the
Corporation as of year-end 2010, as well as the re-appointment of SyCip Gorres Velayo & Co. as
the Corporation’s external auditor for the year 2011.
Further, the shareholders approved the declaration of Fifty-Five Million Three Hundred Eight
Thousand Eight Hundred (55,308,800) common shares stock dividend with a par value of one
peso per share out of the unrestricted retained earnings of the Corporation as of December 31,
2010. The stock dividend, which is equivalent to 10% of the issued and outstanding shares, will
be taken from the unissued capital stock of the Corporation and will be submitted to the Securities
and Exchange Commission for approval. The stock dividend is payable to all of the Corporation’s
stockholders of record as of August 15, 2011. The payment date will be on or before September
08, 2011.
In the organizational meeting of the Board of Directors held after the shareholders’ meeting, the
following persons were elected officers of the Corporation for the year 2011 - 2012 to serve as
such until their successors shall have been duly elected and qualified:
Bansan Choa - Chairman and Chief Executive Officer
Harris E. D. Jacildo - President and Chief Operating Officer
Maria Cecilia V. Soria - Corporate Secretary
Darlene R. Vivas - Assistant Corporate Secretary
Bernadette Cindy C. Tiu - First VP & Chief Financial Officer
Fitzgerald S. Duba - Compliance Officer
79

Also during the aforesaid organizational meeting of the Board, the following directors were elected
as members of the various Committees for the year 2011 – 2012 to serve as such until their
successors shall have been duly elected and qualified:
Executive Committee
1. Armin V. Demetillo (Chairman)
2. Bansan C. Choa
3. Gilbert C. Gaw
4. Harris E. D. Jacildo
5. Ben C. Tiu
Audit and Risk Committee
1. Gregorio T. Yu (Chairman)
2. Bansan C. Choa
3. John Y. Tiu, Jr.
4. Harris E. D. Jacildo
Nomination Committee
1. Bansan C. Choa
2. Armin V. Demetillo
3. Gregorio T. Yu
Compensation & Remuneration Committee
1. Bansan C. Choa
2. Armin V. Demetillo
3. Gregorio T. Yu”
August 1, 2011 Clarification of PDI news article: i-Remit sees doubling of net income this year
September 16, 2011 Board Approval of Buy-back Program of up to 10 million shares
November 11, 2011 Press Release: iRemit named most innovative company
December 9, 2011 Approval by the Kanto Local Financial Bureau of Japan of the registration of K. K. I-Remit Japan
as a Funds Transfer Company effective December 07, 2011
80

I-REMIT, INC. AND SUBSIDIARIES
Aging of Consolidated Receivables
Unaudited
December 31, 2011
Exhibit A
Total Current 2-30 Days 31-60 Days Over 60 Days
Agents 930,022,937 930,022,937
-
-
-
Couriers 3,523,052 - 3,523,052
-
-
Related Parties 10,208,987 -
-
- 10,208,987
Others 105,309,773 - 1,621,481
- 103,688,292
1,049,064,749 930,022,937 5,144,533 - 113,897,279

SIGNATURES
Pursuant to the requirements of Section 17 of the Code and Section 14 of the Corporation Code, this report is
signed on behalf of the Issuer by the undersigned, thereunto duly authorized, in the City of Pasig on June 6, 2012.
By:
/
/ BERNAD~1T6(

P
A 2 0 0 1 0 1 6 3 1
SEC Registration Number
I - R E M I T , I N C . A N D S U B S I D I A R I E S
(Company’s Full Name)
2 6 / F D i s c o v e r y C e n t r e , 2 5 A D B A v e
n u e , O r t i g a s C e n t e r , P a s i g C i t y
(Business Address: No. Street City/Town/Province)
Mr. Bansan C. Choa 706-9999
(Contact Person) (Company Telephone Number)
1 2 3 1 A A F S
Month Day (Form Type) Month Day
(Fiscal Year) (Annual Meeting)
(Secondary License Type, If Applicable)
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document ID Cashier
S T A M P S
COVER SHEET
Remarks: Please use BLACK ink for scanning purposes.
*SGVMC116502*

I-REMIT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
I-Remit, Inc. (the Parent Company) was incorporated in the Philippines and was registered with
the Securities and Exchange Commission (SEC) on March 5, 2001 and started commercial
operations on November 11, 2001.
The Parent Company, which is domiciled in the Philippines, has its registered office and principal
place of business at the 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City. The
Parent Company’s common shares were listed with the Philippine Stock Exchange on
October 17, 2007.
The Parent Company and its subsidiaries (collectively referred to as “the Group”), except Power
Star Asia Group Limited (PSAGL), are primarily engaged in the business of fund transfer and
remittance services of any form or kind of currencies or monies, either by electronic, telegraphic,
wire or any other mode of transfer; delivery of such funds or monies, both in the domestic and
international market, by providing either courier or freight forwarding services; and conduct of
foreign exchange transactions as may be allowed by law and other allied activities relative thereto.
PSAGL, on the other hand, provides financial advisory and other services.
The Group is 28.91% owned by STAR Equities, Inc., 19.34% owned by JTKC Equities, Inc.,
22.27% owned by Surewell Equities, Inc., 3.10% owned by JPSA Global Services Co., and the
rest by the public. The Parent Company is the ultimate parent company of the Group.
The Parent Company’s subsidiaries and associates follow:
Subsidiaries:
International Remittance
Country of
Incorporation
Functional
Currency
Effective Percentage of Ownership
December 31
2011 2010 2009
(Canada) Ltd. (IRCL) Canada
Canadian
Dollar (CAD) 100.00 100.00 100.00
Lucky Star Management
Hong Kong
Limited (LSML) Hong Kong Dollar (HKD) 100.00 100.00 100.00
IRemit Global Remittance United Great Britain
Limited (IGRL) Kingdom Pound (GBP) 100.00 100.00 100.00
I-Remit Australia Pty Ltd
Australian
(IAPL) Australia Dollar (AUD) 100.00 100.00 100.00
Worldwide Exchange Pty
Australian
Ltd (WEPL)*
IREMIT Remittance
Consulting GmbH
Australia Dollar (AUD) 100.00 65.00 65.00
(IRCGmbH)** Austria Euro (EUR) 100.00 74.90 74.90
I-Remit New Zealand
New Zealand
Limited (INZL) New Zealand Dollar (NZD)
Hong Kong
100.00 100.00 100.00
PSAGL Hong Kong Dollar (HKD)
Japanese
100.00 100.00 100.00
K.K. Iremit Japan (KKIJ) Japan
Yen (JPY) 100.00 – –
(Forward)
*SGVMC116502*

Associates:
IRemit Singapore Pte Ltd
Country of
Incorporation
- 2 -
Functional
Currency
Effective Percentage of Ownership
December 31
2011 2010 2009
(ISPL) Singapore
Singapore
Dollar (SGD) 49.00 49.00 49.00
Hwa Kung Hong & Co.,
New Taiwan
Ltd. (HKHCL) Taiwan
Dollar (NTD) 49.00 49.00 49.00
* Consists of direct voting interest of 70.00% and indirect voting interest through IAPL of 30.00%
**Formerly IREMIT EUROPE Remittance Consulting AG (IERCAG)
On March 25, 2011, the Parent Company acquired 35.00% ownership interest in WEPL from the
noncontrolling stockholders for a consideration of P=12.30 million. The carrying value of the
noncontrolling interest at acquisition was P=1.09 million. The difference of P=11.21 million
between the consideration paid and the carrying value of the noncontrolling interest was
recognized as equity adjustment and deducted from ‘Capital paid-in excess of par value’. The
acquisition increased the Parent Company’s effective ownership in WEPL to 100.00% from
65.00%.
On May 5, 2011, the Parent Company acquired the 25.10% ownership interest in IERCAG from
the noncontrolling stockholder for a consideration of P=25.02 million. The carrying value of the
noncontrolling interest at acquisition was P=2.05 million deficit. The difference of P=27.06 million
between the consideration paid and the carrying value of the noncontrolling interest was
recognized as equity adjustment and deducted from ‘Capital paid-in excess of par value’. The
acquisition increased the Parent Company’s ownership interest in IERCAG to 100.00% from
74.90%.
Consequently, on October 11, 2011, IERCAG changed its legal name to IREMIT Remittance
Consulting GmbH (IRCGmbH) and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities.
On June 10, 2011, the Parent Company incorporated KKIJ in Japan to provide remittance services.
KKIJ has not started commercial operations as of March 23, 2012.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Group have been prepared on a
historical cost basis except for financial assets at fair value through profit or loss (FVPL) that have
been measured at fair value. The financial statements are presented in Philippine peso, the Parent
Company’s functional and presentation currency, and all values are rounded to the nearest peso
except when otherwise indicated.
Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency. The respective
functional currencies of the subsidiaries and associates are presented in Note 1.
*SGVMC116502*

- 3 -
Statement of Compliance
The accompanying consolidated financial statements have been prepared in compliance with
Philippine Financial Reporting Standards (PFRS).
Basis of Consolidation
The financial statements of subsidiaries are prepared for the same reporting year as the Parent
Company, using consistent accounting policies.
Subsidiaries are all entities over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group has control over the entity.
All significant intra-group balances, transactions, income and expenses and profits and losses
resulting from intra-group transactions are eliminated in full.
Subsidiaries are consolidated from the date on which control is transferred to the Group. Control
is achieved when the Group has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. Consolidation of subsidiaries ceases when
control is transferred out of the Group.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of income from the date of acquisition up to the date of disposal, as appropriate.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. If the Group losses control over the subsidiary, it:
• derecognizes the assets (including goodwill) and liabilities of the subsidiary;
• derecognizes the carrying amount of any noncontrolling interest;
• derecognizes the related other comprehensive income recorded in equity and recycle the same
to profit or loss or retained earnings;
• recognizes the fair value of the consideration received;
• recognizes the fair value of any investment retained; and
• recognizes any surplus or deficit in profit or loss.
Business Combinations and Goodwill
Business combinations from January 1, 2010
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair
value and the amount of any noncontrolling interest in the acquiree. For each business
combination, the acquirer measures the noncontrolling interest in the acquiree either at fair value
or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred
are expensed and included in operating expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
*SGVMC116502*

- 4 -
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability will be recognized in accordance with Philippine Accounting
Standards (PAS) 39 either in profit or loss or as a change to other comprehensive income. If the
contingent consideration is classified as equity, it should not be remeasured until it is finally
settled within equity.
Goodwill is initially measured at cost, being the excess of the aggregate of fair value of the
consideration transferred and the amount recognized for noncontrolling interest over the net
identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair
value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For
the purpose of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s cash-generating units (CGU) that are expected to
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are
assigned to those units.
Business combinations prior to January 1, 2010
In comparison to the above-mentioned requirements, the following differences apply:
Business combinations were accounted for using the purchase method. Transaction costs directly
attributable to the acquisition formed part of the acquisition costs. The noncontrolling interest
(formerly known as minority interest) was measured at the proportionate share of the acquiree’s
identifiable net assets.
Business combinations achieved in stages were accounted for as separate steps. Any additional
acquired share of interest did not affect previously recognized goodwill.
When the Group acquired a business, embedded derivatives separated from the host contract by
the acquiree were not reassessed on acquisition unless the business combination resulted in a
change in the terms of the contract that significantly modified the cash flows that otherwise would
have been required under the contract.
Contingent consideration was recognized if, and only if, the Group had a present obligation, the
economic outflow was more likely than not and a reliable estimate was determinable. Subsequent
adjustments to the contingent consideration were recognized as part of goodwill.
Noncontrolling Interest
Noncontrolling interest represents the portion of profit or loss and net assets not owned, directly or
indirectly, by the Parent Company.
Noncontrolling interests are presented separately in the consolidated statement of income,
consolidated statement of comprehensive income, and within equity in the consolidated balance
sheet, separately from equity attributable to the equity holder of the Parent Company’s
shareholders’ equity. Any losses applicable to the noncontrolling interests are allocated against
the interests of the noncontrolling interest even if this results in the noncontrolling interest having
a deficit balance.
*SGVMC116502*

- 5 -
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for
the adoption of the following new and amended PFRS, Philippine Accounting Standards (PAS)
and Philippine Interpretations which became effective on January 1, 2011:
• PAS 24 Amendment, Related Party Disclosures
• PAS 32 Amendment, Financial Instruments: Presentation - Classification of Rights Issues
• Philippine Interpretation International Financial Reporting Interpretations Committee (IFRIC)
14 Amendment, Prepayments of a Minimum Funding Requirement
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
The adoption of new standards, amendments and interpretations above did not have impact to the
Group except for the adoption of PAS 24 Amendment, Related Party Transactions.
PAS 24 Amendment, Related Party Transactions
PAS 24 clarifies the definitions of a related party. The new definitions emphasize a symmetrical
view of related party relationships and clarify the circumstances in which persons and key
management personnel affect related party relationships of an entity. In addition, the amendment
introduces an exemption from the general related party disclosure requirements for transactions
with government and entities that are controlled, jointly controlled or significantly influenced by
the same government as the reporting entity. The amendment only affects the disclosures and has
no impact on the Group’s financial position or performance.
Improvements to PFRS 2010
Improvements to PFRSs, an omnibus of amendments to standards, deal primarily with a view to
removing inconsistencies and clarifying wording. There are separate transitional provisions for
each standard. The adoption of the following amendments resulted in changes to accounting
policies but did not have any impact on the financial position or performance of the Group.
PFRS 3, Business Combinations (Revised)
The measurement options available for noncontrolling interest (NCI) were amended. Only
components of NCI that constitute a present ownership interest that entitles their holder to a
proportionate share of the entity’s net assets in the event of liquidation should be measured at
either fair value or at the present ownership instruments’ proportionate share of the acquiree’s
identifiable net assets. All other components are to be measured at their acquisition date fair
value.
The amendments to PFRS 3 are effective for annual periods beginning on or after July 1, 2011.
The Group, however, adopted these as of January 1, 2011 and changed its accounting policy
accordingly as the amendment was issued to eliminate unintended consequences that may arise
from the adoption of PFRS 3.
PFRS 7, Financial Instruments - Disclosures
The amendment was intended to simplify the disclosures provided by reducing the volume of
disclosures around collateral held and improving disclosures by requiring qualitative information
to put the quantitative information in context. The Group reflects the revised disclosure
requirements in Note 4.
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PAS 1, Presentation of Financial Statements
The amendment clarifies that an entity may present an analysis of each component of other
comprehensive income maybe either in the statement of changes in equity or in the notes to the
financial statements.
Other amendments resulting from the 2010 Improvements to PFRSs to the following standards did
not have any impact on the accounting policies, financial position or performance of the Group:
• PFRS 3, Business Combinations (Contingent consideration arising from business combination
prior to adoption of PFRS 3 (as revised in 2008))
• PFRS 3, Business Combinations (Un-replaced and voluntarily replaced share-based payment
awards)
• PAS 27, Consolidated and Separate Financial Statements
• PAS 34, Interim Financial Statements
The following interpretation and amendments to interpretations did not have any impact on the
accounting policies, financial position or performance of the Group:
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes (determining the fair value
of award credits)
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
Foreign Currency Translation
The consolidated financial statements are presented in Philippine peso, which is the Parent
Company’s functional currency. Each subsidiary in the Group determines its own functional
currency and items included in the financial statements of each entity are measured using that
functional currency.
Transactions and balances
Transactions denominated in foreign currencies are recorded using the exchange rate at the date of
the transaction. Outstanding financial assets and liabilities denominated in foreign currencies are
restated in Philippine pesos based on the Philippine Dealing System (PDS) closing rate prevailing
at the balance sheet date. Exchange differences arising on translation are taken directly to the
consolidated statement of income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Any goodwill arising on the acquisition of a foreign
operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on
the acquisition are treated as assets and liabilities of the foreign operation and translated at the
closing rate.
Foreign subsidiaries
As of the balance sheet date, the assets and liabilities of subsidiaries with functional currency
differs from the Philippine peso are translated into the Parent Company’s presentation currency
(the Philippine peso) at the PDS closing rate prevailing at the balance sheet date, and their income
and expenses are translated using the PDSWAR for the year. Exchange differences arising on
translation are recognized in other comprehensive income. Upon disposal of a foreign entity, the
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deferred cumulative amount previously recognized in other comprehensive income (included
under ‘Cumulative translation adjustment’ in the equity section of the consolidated balance sheet)
relating to the particular foreign operation is recognized in the consolidated statement of income.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, with original maturities of
three months or less from the dates of placement and that are subject to an insignificant risk of
changes in fair value.
Financial Instruments
Initial Recognition
Financial instruments within the scope of PAS 39 are classified as financial assets at FVPL, loans
and receivables, held-to-maturity (HTM) investments, available-for-sale (AFS) investments,
financial liabilities at FVPL and other financial liabilities. The classification of financial
instruments at initial recognition depends on the purpose for which the financial instruments were
acquired and their characteristics. All financial assets and financial liabilities are recognized
initially at fair value plus any directly attributable cost of acquisition or issue, except in the case of
financial assets and financial liabilities at FVPL. Management determines the classification of its
instruments at initial recognition and, where allowed and appropriate, re-evaluates such
designation at every balance sheet date.
Financial instruments are recognized in the consolidated balance sheet when the Group becomes a
party to the contractual provisions of the instrument. In the case of regular way of purchase or
sale of financial assets, recognition and derecognition, as applicable, are done using settlement
date accounting. Settlement date accounting refers to (a) recognition of an asset on the day it is
received by the Group, and (b) the derecognition of an asset and recognition of any gain or loss on
disposal on the day that it is delivered by the Group.
The subsequent measurement bases for financial instruments depend on its classification.
As of December 31, 2011 and 2010, the Group has no AFS investments, HTM investments and
financial liabilities at FVPL.
Subsequent Measurement
Financial assets at FVPL
Financial assets at FVPL includes financial assets held for trading (HFT) and financial assets
designated upon initial recognition at fair value through profit or loss. Financial assets are
classified as HFT if they are acquired for the purpose of selling and repurchasing in the near term.
Included in this classification are debt securities which have been acquired principally for trading
purposes.
The Group evaluates its HFT investments to determine whether the intention to sell them in the
near term is still appropriate. When in rare circumstances the Group is unable to trade these
financial assets due to inactive markets and management’s intention to sell them in the foreseeable
future significantly changes, the Group may elect to reclassify these financial assets. The
reclassification to loans and receivables, AFS or HTM depends on the nature of the asset. This
evaluation does not affect any financial assets designated at FVPL using the fair value option at
designation, these instruments cannot be reclassified after initial recognition.
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HFT investments are recorded in the consolidated balance sheet at fair value. Changes in fair
value are recognized as ‘Net trading gains’ in the consolidated statement of income. Interest
earned is recognized as interest income included under ‘Other income’ in the consolidated
statement of income. Quoted market prices, when available, are used to determine the fair value
of these financial instruments. If quoted market prices are not available, their fair values are
estimated based on inputs that are observable in the market.
Classified under this category are the Group’s HFT investments in debt and equity securities.
Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, receivables are carried at amortized
cost using the effective interest method less any allowance for credit losses. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the effective interest rate (EIR). Gains and losses are recognized in the
consolidated statement of income when the receivables are derecognized or impaired, as well as
through the amortization process. Receivables are classified as current assets when the Group
expects to realize or collect the asset within twelve months from the balance sheet date. Otherwise,
these are classified as non-current assets.
Classified under this category are the Group’s ‘Cash and cash equivalents’, ‘Accounts receivable’,
‘Other receivables’ and refundable deposits included under ‘Other noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability, where the substance of the contractual arrangement results in
the Group having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of its own equity shares. These include liabilities arising from operations
or borrowings. The components of issued financial instruments that contain both liability and
equity elements are accounted for separately, with the equity component being assigned the
residual amount after deducting from the instrument as a whole the amount separately determined
as the fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the EIR method.
Other financial liabilities are classified as current liabilities when the Group expects to settle the
liability within twelve months from the balance sheet date. Otherwise, these are classified as noncurrent
liabilities.
Other financial liabilities include ‘Beneficiaries and other payables’ and ‘Interest-bearing loans’.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date is based
on their quoted market prices or dealer price quotations (bid price for long positions and ask price
for short positions), without any deduction for transaction costs. When current bid and ask prices
are not available, the price of the most recent transaction provides evidence of the current fair
value as long as there has not been a significant change in economic circumstances since the time
of the transaction.
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For all other financial instruments not listed in an active market, the fair value is determined by
using appropriate valuation methodologies. Valuation methodologies include net present value
techniques, comparison to similar instruments for which market observable prices exist, option
pricing models, and other relevant valuation models.
Day 1 difference
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Group recognizes the difference
between the transaction price and fair value (a Day 1 difference) in the consolidated statement of
income unless it qualifies for recognition as some other type of asset. In cases where use is made
of data which is not observable, the difference between the transaction price and model value is
only recognized in the consolidated statement of income when the inputs become observable or
when the instrument is derecognized. For each transaction, the Group determines the appropriate
method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third part under a ‘pass through’ arrangement;
or
• the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the
Group’s continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in the consolidated statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the consolidated
balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
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Impairment of Financial Assets
The Group assesses at each balance sheet date whether there is an objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial
assets is deemed to be impaired if, and only if, there is an objective evidence of impairment as a
result of one or more events that has occurred after the initial recognition of the asset (an incurred
‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated. Evidence of
impairment may include indications that the borrower or a group of borrowers is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the
probability that they will enter bankruptcy or other financial reorganization, and where there are
observable data that indicates that there is a measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective evidence
of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through the use of an allowance account and the amount of
loss is charged to the consolidated statement of income. Interest income continues to be
recognized based on the original EIR of the asset. Receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized. If subsequently, the amount of the estimated impairment loss
decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Group determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of financial
assets with similar credit risk characteristics and collectively assesses for impairment. Those
characteristics are relevant to the estimation of future cash flows for groups of such assets by
being indicative of the debtors’ ability to pay all amounts due according to the contractual terms of
the assets being evaluated. Assets that are individually assessed for impairment and for which an
impairment loss is, or continues to be, recognized are not included in a collective assessment for
impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
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Estimates of changes in future cash flows reflect, and are directionally consistent with changes in
related observable data from period to period (such as changes in payment status, or other factors
that are indicative of incurred losses in the group and their magnitude). The methodology and
assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce
any differences between loss estimates and actual loss experience.
Investments in Associates
The Group’s investments in its associates are accounted for using the equity method of
accounting. An associate is an entity in which the Group has significant influence. The Group’s
investments in associates include its 49.00% interest in ISPL and HKHCL, entities based in
Singapore and Taiwan, respectively.
Under the equity method, the investment in the associate is carried in the consolidated balance
sheet at cost plus post acquisition changes in the Group’s share in the net assets of the associate.
The consolidated statement of income reflects the share in the results of operations of the
associate. Where there has been a change recognized directly in the equity of the associate, the
Group recognizes its share of any changes, as applicable, in the consolidated statement of changes
in equity. Unrealized gains and losses resulting from transactions between the Group and the
associate are eliminated to the extent of the interest in the associate.
The Group’s share in the net income (loss) of its associates is shown in the consolidated statement
of income as ‘Equity in net earnings of associates’. This is the profit attributable to equity holders
of the associate and therefore is profit after tax and noncontrolling interests in the subsidiaries of
the associates.
The financial statements of the associates are prepared for the same reporting period as the Parent
Company.
After application of the equity method, the Group determines whether it is necessary to recognize
an impairment loss on the Group’s investment in its associates. The Group determines at each
balance sheet date whether there is any objective evidence that the investment in the associate is
impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognizes the amount
as impairment loss in the consolidated statement of income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
remaining investment at its fair value. Any difference between the carrying amount of the
associate upon loss of significant influence and the fair value of the retaining investment and
proceeds from disposal is recognized in profit or loss.
Property and Equipment
Property and equipment is stated at cost less accumulated depreciation and amortization and any
impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the property and equipment to its working condition and location for
its intended use.
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Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance are normally charged to operations in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or CGU are written down to their recoverable amount (see policy on Impairment of Nonfinancial
Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the consolidated statement of income in the year the asset is derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangibles assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible assets may be impaired. The
amortization period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at each balance sheet date. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate, and treated as changes in accounting
estimates. The amortization expense on intangible assets with finite lives is recognized in the
consolidated statement of income in the expense category consistent with the function of the
intangible asset. Intangible assets with indefinite useful lives are tested for impairment annually
either individually or at the CGU level. Such intangibles are not amortized. The useful life of an
intangible asset with an indefinite life is reviewed annually to determine whether indefinite life
assessment continues to be supportable. If not, the change in the useful life assessment from
indefinite to finite is made on a prospective basis.
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Gains or losses arising from the derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the
consolidated statement of income when the asset is derecognized.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over the estimated useful life of three (3) years.
Goodwill
Any excess of the acquisition cost over the fair values of the identifiable net assets acquired is
recognized as goodwill. Goodwill represents the excess of the acquisition cost over the fair value
of their identifiable net assets at the date of acquisition of IRCL, IGRL, IAPL, LSML and WEPL
(see Note 13). Following initial recognition, goodwill is measured at cost less any accumulated
impairment losses. Goodwill is reviewed for impairment annually (see accounting policy on
Impairment of Nonfinancial Assets).
Impairment of Nonfinancial assets
Investments in associates
The Group assesses at each balance sheet date whether there is any indication that its investments
in associates may be impaired. If any indication exists, the Group estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value
less cost to sell and its value in use. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
Property and equipment and software costs
At each balance sheet date, the Group assesses whether there is any indication that its property and
equipment and software costs may be impaired. When an indicator of impairment exists or when
an annual impairment testing for an asset is required, the Group makes a formal estimate of
recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, in which case
the recoverable amount is assessed as part of the CGU to which it belongs. Where the carrying
amount of an asset (or CGU) exceeds its recoverable amount, the asset (or CGU) is considered
impaired and is written down to its recoverable amount. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset (or
CGU). In determining fair value less cost to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate evaluation model is
used. These calculations are corroborated with available fair value indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
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amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated
statement of income unless the asset is carried at a revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal, the depreciation and amortization expense
is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value,
on a systematic basis over its remaining life.
Goodwill
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the CGU (or group
of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU (or group of
CGUs) is less than the carrying amount of the CGU (or group of CGUs) to which goodwill has
been allocated, an impairment loss is recognized immediately in the consolidated statement of
income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods. The Group performs its annual impairment test of goodwill
at the balance sheet date.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured. The Group assesses its revenue arrangements
against specific criteria in order to determine if it is acting as principal or agent. The following
specific recognition criteria must also be met before revenue is recognized:
Delivery fees
Revenue from delivery fees is recognized as the service is rendered net of amounts payable to
principals (i.e., partner remittance companies) for fees billed on their behalf.
Service revenue
Service revenue is recognized when the service is rendered.
Interest income
Interest on financial instruments measured at amortized cost and interest bearing HFT investments
is recognized based on the effective interest rate (EIR) method.
The EIR method is a method of calculating the amortized cost of a financial asset or a financial
liability and allocating the interest income or interest expense over the relevant period. The EIR is
the rate that exactly discounts estimated future cash payments or receipts throughout the expected
life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of
the financial asset or financial liability. When calculating the EIR, the Group estimates cash flows
from the financial instrument (for example, prepayment options) but does not consider future
credit losses. The calculation includes all fees and points paid or received between parties to the
contract that are an integral part of the EIR, transaction costs and all other premiums or discounts.
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Once a financial asset or a group of financial assets has been written down as a result of an
impairment loss, interest income is recognized thereafter using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss.
Net trading gain/loss
Trading gain/loss represents results arising from trading activities, including all gains and losses
from changes in fair value of HFT investments.
Other income
Other income from processing remittance is recognized as the service is rendered.
Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Cost and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Group. The following specific recognition criteria must also be
met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the consolidated statement of income.
Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the consolidated balance sheet in respect of defined benefit retirement
plan is the present value of the defined benefit obligation at the balance sheet date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by an independent actuary
using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
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Past-service costs, if any, are recognized immediately in income, unless the changes to the
retirement plan are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis
over the vesting period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation
less past service costs not yet recognized and less the fair value of plan assets out of which the
obligations are to be settled directly. The value of any asset is restricted to the sum of any past
service cost not yet recognized and the present value of any economic benefits available in the
form of refunds from the plan or reductions in the future contributions to the plan.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at the inception date of whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) there is a substantial change to the asset.
When a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c), or (d) and at the date
of renewal or extension for scenario (b).
Group as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the
consolidated statement of income on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and benefits of ownership of
the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating
lease are added to the carrying amount of the leased asset and recognized over the lease term on
the same basis as rental income. Contingent rents are recognized as revenue in the period in which
they are earned.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 19) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009. The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the consolidated statement of
income over the lock-up period of two (2) years. The cumulative expense recognized for equitysettled
transactions at each balance sheet date until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the number of equity instruments that
will ultimately vest. The expense in the consolidated statement of income for the period
represents the movement in cumulative expense recognized at the beginning and end of the period.
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Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantially enacted at the balance sheet date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Discontinued Operations
A discontinued operation is a component of the Group’s business that represents a separate major
line of business or geographical area of operations that had been disposed of or is held for sale, or
is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued
operation occurs upon disposal or when the operation meets the criteria to be classified as held for
sale, if earlier. When an operation is classified as a discontinued operation, the comparative
consolidated statement of income are re-presented as if the operation had been discontinued from
the start of the comparative period. In the consolidated statement of income of the reporting
period, and of the comparable period of the previous year, income and expenses from
*SGVMC116502*

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discontinued operations are reported separately from normal income and expenses down to the
level of profit after taxes. The resulting profit or loss (after taxes) is reported separately in the
consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to issuance of equity, such as
underwriting, accounting and legal fees, printing costs and taxes are charged to ‘Capital paid-in
excess of par value’ account. If the ‘Capital paid-in excess of par value’ is not sufficient, the
excess is charged to profit or loss.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The excess of acquisition cost over the carrying value of the noncontrolling
interest is charged against the ‘Capital paid-in excess of par value’.
When the Group issues more than one class of stock, a separate account is maintained for each
class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Group less dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost as ‘Treasury
stock’ and deducted from equity. No gain or loss is recognized in the consolidated statement of
income on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any
difference between the carrying amount and the consideration is recognized in ‘Capital paid-in
excess of par value’.
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income for the year attributable to the
equity holders of the Parent Company by the weighted average number of common shares issued
and outstanding during the year, after giving retroactive effect to any stock dividends or stock
splits, if any, declared during the year. Diluted EPS is computed by dividing net income
applicable to common stockholders attributable to equity holder of the Parent Company by the
weighted average number of common shares issued and outstanding during the year after giving
effect to assumed conversion of dilutive potential common shares.
The weighted average number of ordinary shares outstanding during the period is the number of
ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary
shares bought back or issued during the period multiplied by a time-weighting factor. The timeweighting
factor is the number of days that the shares are outstanding as a proportion of the total
number of days in the period; a reasonable approximation of the weighted average is adequate in
many circumstances.
Dividends
Cash dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the Board of Directors (BOD) of the Parent Company. Stock dividends
are deducted from equity when declared and approved by the BOD and stockholders of the Parent
Company.
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Related party relationships and transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of assets embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Where the Group expects a provision to be reimbursed, the reimbursement is
recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the consolidated statement of income, net of any
reimbursement.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the consolidated financial statements but disclosed
when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Group’s financial position at
the balance sheet date (adjusting events) are reflected in the financial statements. Post year-end
events that are not adjusting events are disclosed in the notes to the consolidated financial
statements when material.
Segment Reporting
The Group’s operating businesses are organized and managed separately within a particular
economic environment or geographical area, with each segment representing a strategic business
unit which is subject to risks and rewards that are different from those of other segments.
Financial information on business segments is presented in Note 27.
Standards Issued but not Effective
The Group will adopt the following standards and interpretations enumerated below when these
become effective. Except as otherwise indicated, the Group does not expect the adoption of these
new and amended PFRS and Philippine Interpretations to have significant impact on its financial
position and performance.
Effective in 2012
PFRS 7 Amendments, Financial Instruments: Disclosures - Disclosures - Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
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PAS 12 Amendment, Income Taxes - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will normally be through sale.
Effective in 2013
PAS 1, Financial Statement Presentation – Presentation of Items of Other Comprehensive Income
(OCI)
The amendment effective for annual periods beginning or after July 1, 2012, changes the grouping
of items presented in OCI. Items that could be reclassified (or “recycled”) to profit or loss at a
future point in time would be presented separately from items that will never be reclassified.
PAS 27 Revised, Separate Financial Statements
The revised PAS 27 is effective for annual periods beginning on or after January 1, 2013. It
establishes that as a consequence of the new PFRS 10, Consolidated Financial Statement and
PFRS 12, Disclosure of Interests in Other Entities, what remains of PAS 27 is limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial
statements.
PFRS 7 Revised, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial
Liabilities
The revised PFRS 7 effective for annual periods beginning on or after January 1, 2013, requires an
entity to disclose information about rights of set-off and related arrangements (such as collateral
agreements). The new disclosures are required for all recognized financial instruments that are set
off in accordance with PAS 32. These disclosures also apply to recognized financial instruments
that are subject to an enforceable master netting arrangement or ‘similar agreement’, irrespective
of whether they are set-off in accordance with PAS 32.
PFRS 10, Consolidated Financial Statements
The standard, effective for annual periods beginning on or after January 1, 2013, establishes
principles for the presentation and preparation of consolidated financial statements when an entity
controls one or more other entities. The Group will assess the impact of the amendment on its
financial position and performance when they become effective.
PFRS 11, Joint Arrangements
PFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights
and obligations of the arrangement, rather than its legal form. The standard addresses
inconsistencies in the reporting of joint arrangements by requiring a single method to account for
interests in jointly controlled entities. The standard is effective for annual periods beginning on or
after January 1, 2013.
PFRS 12, Disclosure of Interests in Other Entities
PFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of
interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated
structured entities. The standard is effective for annual periods beginning on or after January 1,
2013. The Group will assess the impact of the amendment on its financial position and
performance when they become effective.
*SGVMC116502*

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PFRS 13, Fair Value Measurement
This standard represents the completion of the joint project to establish a single source for the
requirements on how to measure fair value under PFRS. This standard does not change when an
entity is required to use fair value, but rather, describes how to measure fair value under PFRS,
when fair value is required or permitted to be used. This standard is effective for annual periods
beginning on or after January 1, 2013. The Group will assess the impact of the amendment on its
financial position and performance when they become effective.
PAS 19 Amendments, Employee Benefits - Defined Benefit Plans
The amendments focus on the following key areas: the elimination of the option to defer the
recognition of gains and losses resulting from defined benefit plans (the corridor approach); the
elimination of options for the presentation of gains and losses relating to those plans; and the
improvement of disclosure requirements that will better show the characteristics of defined benefit
plans and the risks arising from those plans. The amendments to the recognition, presentation and
disclosure requirements will ensure that the financial statements provide investors and other users
with a clear picture of an entity’s commitments resulting from defined benefit plans. The
amendments to PAS 19 are effective for annual periods beginning on or after January 1, 2013.
The Group will assess the impact of the amendment on its financial position and performance
when they become effective.
Effective 2014
PAS 32 Amendment, Financial Instruments: Presentation – Offsetting Financial Assets and
Financial Liabilities
The amendment to PAS 32 is effective for annual periods beginning on or after January 1, 2014.
This clarifies the meaning of “currently has a legally enforceable right to set-off” and the
application of the PAS 32 offsetting criteria to settlement systems (such as central clearing house
systems) which apply gross settlement mechanisms that are not simultaneous.
Effective 2015
PFRS 9, Financial Instruments: Classification and Measurement
The standard is effective for annual periods beginning on or after January 1, 2015. It reflects the
first phase on the replacement of PAS 39, Financial Instruments: Recognition and Measurement
and applies to classification and measurement of financial assets and financial liabilities as defined
in PAS 39. The Group will assess the impact of the amendment on its financial position and
performance when they become effective.
Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate
This Interpretation, effective for annual periods beginning on or after January 1, 2015, covers
accounting for revenue and associated expenses by entities that undertake the construction of real
estate directly or through subcontractors. The Interpretation requires that revenue on construction
of real estate be recognized only upon completion, except when such contract qualifies as
construction contract to be accounted for under PAS 11, Construction Contracts, or involves
rendering of services in which case revenue is recognized based on stage of completion. Contracts
involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on
stage of completion.
*SGVMC116502*

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3. Significant Accounting Judgments and Estimates
The preparation of the financial statements in compliance with PFRS requires the Group to make
judgments and estimates that affect the reported amounts of assets, liabilities, income and
expenses and disclosure of contingent assets and contingent liabilities. Future events may occur
which will cause the assumptions used in arriving at the estimates to change. The effects of any
change in estimates are reflected in the financial statements as they become reasonably
determinable.
Judgments and estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Group
considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
Each entity in the Group determines its own functional currency being the currency that
mainly influences each entity’s revenues and costs and expenses. The functional currency of
the Parent Company is the Philippine peso, while those of the Parent Company’s subsidiaries
are disclosed in Note 1.
b. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The fair values of financial assets and financial liabilities of the
Group are disclosed in Note 4.
c. Operating leases
Group as lessee
The Group has entered into commercial property leases as a lessee for its office premises. The
Group has determined that it has not acquired the significant risks and rewards of ownership
of the leased properties and so account for the contracts as operating leases.
Group as lessor
The Group has entered into commercial property leases as lessor. The Group has determined,
based on an evaluation of the terms and conditions of the arrangements, that it retains all the
significant risks and rewards of ownership of these properties and accounts for the contracts as
operating leases.
*SGVMC116502*

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d. Discontinued Operations
Management has assessed that the Italy operations disposed by IRCGmbH in 2011 constitutes
a disposal group as its business operations and cash flows can be clearly distinguished
operationally (see Note 28).
e. Contingencies
The Group is currently involved in various proceedings. The estimate of the probable costs
for the resolution of these claims has been developed in consultation with outside counsel
handling the defense in these matters and is based upon an analysis of potential results. The
Group currently does not believe these proceedings will have a material effect on the Group’s
financial position. It is possible, however, that future results of operations could be materially
affected by changes in the estimates or in the effectiveness of the strategies relating to these
proceedings (see Note 29).
f. Determination of whether the Group is acting as a principal or an agent
The Group assesses its revenue arrangements against the following criteria to determine
whether it is acting as a principal or an agent:
• whether the Group has primary responsibility for providing the goods and services;
• whether the Group has inventory risk;
• whether the Group has discretion in establishing prices; and
• whether the Group bears the credit risk.
If the Group has determined it is acting as a principal, revenue is recognized on a gross basis
with the amount remitted to the other party being accounted for as part of costs and expenses.
If the Group has determined it is acting as an agent, only the net amount retained is recognized
as revenue.
The Group assessed its revenue arrangements and concluded that it is acting as principal in
some arrangements and as an agent in other arrangements.
g. Going concern
The Group’s management has made an assessment of the Group’s ability to continue as a
going concern and is satisfied that the Group has the resources to continue in business for the
foreseeable future. Furthermore, management is not aware of any material uncertainties that
may cast significant doubt upon the Group’s ability to continue as a going concern. Therefore,
the financial statements continue to be prepared on the going concern basis.
Estimates
a. Credit losses on receivables
The Group reviews its receivables at each balance sheet date to assess whether an allowance
for credit losses should be recorded in the consolidated balance sheet. In particular, judgment
by management is required in the estimation of the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions
about a number of factors such as the length of the Group’s relationship with counterparties
(e.g., agents and couriers), current credit status, average age of accounts, collection and
historical loss experience. Actual results may differ, resulting in future changes to the
allowance.
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As of December 31, 2011, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=0.93 billion and P=0.11 billion, respectively (see Notes 8 and 9).
As of December 31, 2010, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=1.06 billion and P=0.08 billion, respectively. The Group has
assessed that there is no need to recognize impairment losses on its receivables as of
December 31, 2011 and 2010.
b. Impairment of nonfinancial assets
(i) Investments in associates
The Group assesses impairment on its investments in associates whenever events or
changes in circumstances indicate that the carrying amount of the assets may not be
recoverable. Among others, the factors that the Group considers important, which could
trigger an impairment review on its investments in associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
• significant changes with an adverse effect on the associate have taken place during the
period, or will take place in the near future, in the technological, market, economic, or
legal environment in which the associate operates.
(ii) Goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This
requires an estimation of the recoverable amount, which is the higher of the net selling
price or value in use of the CGU to which the goodwill is allocated.
The Group’s impairment test for goodwill is based on value in use calculations that use a
discounted cash flow model. The cash flows are derived from the budget for the next five
years and do not include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset base of the CGU being tested.
The recoverable amount is most sensitive to the discount rate used for the discounted cash
flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
(iii) Property and equipment and software costs
The Group assesses impairment on property and equipment and software costs whenever
events or changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. The factors that the Group considers important, which could trigger an
impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Group recognizes an impairment loss whenever the carrying amount of the asset
exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future
cash flows expected to be generated from the continued use of the asset.
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As of December 31, 2011 and 2010, no impairment losses were recognized on the Group’s
nonfinancial assets, including goodwill. The carrying values of the Group’s nonfinancial
assets follow:
2011 2010
Investments in associates (Note 11) P=23,064,091 P=20,932,236
Property and equipment - net (Note 12) 19,207,458 27,013,308
Goodwill (Note 13) 92,655,340 93,092,118
Software costs - net (Note 14) 1,450,944 2,081,746
c. Estimated useful lives of property and equipment and software costs
The Group reviews the estimated useful lives of property and equipment and software costs
annually based on the expected asset utilization after considering the expected future
technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization (see Note 2).
As of December 31, 2011 and 2010, the carrying values of Property and equipment and
Software costs follow:
2011 2010
Property and equipment (Note 12) P=19,207,458 P=27,013,308
Software costs (Note 14) 1,450,944 2,081,746
In 2011, 2010 and 2009, the Group recognized depreciation and amortization in the
consolidated statements of income amounting to P=13.27 million, P=14.07 million and
P=14.22 million, respectively.
d. Recognition of deferred tax assets
The Group reviews the carrying amounts of deferred tax assets at each balance sheet date and
reduces it to the extent that it is no longer probable that sufficient taxable income will be
available to allow all or part of the deferred tax assets to be utilized. Significant judgment is
required to determine the amount of deferred tax assets that can be recognized, based upon the
likely timing and level of future taxable income together with future tax planning strategies.
As of December 31, 2011 and 2010, the Group’s recognized deferred tax assets amounted to
P=4.98 million and P=4.23 million, respectively. As of December 31, 2011 and 2010, the
Group’s recognized deferred tax liabilities amounted to P=31,969 and P=29,765, respectively.
As of December 31, 2011 and 2010, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.80 million and
P=2.85 million, respectively. Management believes that it is not highly probable that these
temporary differences will be realized in the future (see Note 25).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post employment benefits are determined
using actuarial valuations. The actuarial valuation involves making assumptions about
discount rates, expected rates of return on assets, future salary increases, mortality rates and
future retirement increases. Due to the long-term nature of these benefits, such estimates are
subject to significant uncertainty.
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The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 18 for the details of assumptions used in the
calculation. As of December 31, 2011 and 2010, the Group recognized retirement asset of
P=0.37 million and retirement liability of P=0.78 million, respectively. In 2011, 2010 and 2009,
the Group recognized retirement expense amounting to P=5.75 million, P=2.38 million and
P=3.02 million, respectively (see Note 18).
f. Share-based payment transactions
The Group determined the cost of its equity-settled share based program at grant date using
the price earnings multiple model taking into account the terms and conditions upon which the
shares were granted. At yearend, the Group estimates the number of equity instruments that
will ultimately vest. The Group recognized cost of equity-settled share based payments
amounting to P=1.53 million in 2009 (see Note 19). The vesting period of the stock purchase
program ended on September 19, 2009.
4. Fair Value Measurement
The following tables summarize the carrying amounts and fair values of the Group’s financial
assets and financial liabilities:
2011 2010
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Financial assets at FVPL
Debt securities P=112,624,807 P=112,624,807 P=102,905,294 P=102,905,294
Equity securities
Loans and receivables:
Cash and cash equivalents
12,601,457 12,601,457 – –
Cash on hand 47,998,476 47,998,476 52,322,332 52,322,332
Cash in banks 806,000,555 806,000,555 821,315,584 821,315,584
Short-term deposits
Accounts receivable
37,236,592 37,236,592 10,180,031 10,180,031
Agents 930,022,937 930,022,937 1,025,016,072 1,025,016,072
Couriers
Other receivables
3,523,052 3,523,052 34,283,201 34,283,201
Nontrade receivable 72,432,683 72,432,683 – –
Related parties 25,020,726 25,020,726 26,992,977 26,992,977
Officers and employees 9,514,306 9,514,306 9,686,457 9,686,457
Interest receivable 3,624,850 3,624,850 3,512,291 3,512,291
Noncontrolling shareholders – – 39,981,243 39,981,243
Others
Other noncurrent assets:
3,838,695 3,838,695 3,267,906 3,267,906
Refundable deposits 17,291,585 17,018,242 14,099,442 12,755,091
Total
Other Financial Liabilities
Beneficiaries and other payables:
P=2,081,730,721 P=2,081,457,378 P=2,143,562,830 P=2,142,218,479
Beneficiaries P=155,140,304 P=155,140,304 P=144,960,550 P=144,960,550
Agents, couriers and trading clients 65,550,071 65,550,071 44,773,236 44,773,236
Accrued expenses 14,801,411 14,801,411 2,701,805 2,701,805
Payable to suppliers 1,391,836 1,391,836 2,958,634 2,958,634
Advances from related parties – – 1,431,156 1,431,156
Others – – 5,165 5,165
Interest-bearing loans 666,000,000 666,000,000 877,000,000 877,000,000
Total P=902,883,622 P=902,883,622 P=1,073,830,546 P=1,073,830,546
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The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, Account receivables, Other receivables, Beneficiaries and other
payables and Interest-bearing loans - carrying amounts approximate fair values due to the
relatively short-term maturities of these instruments.
Financial assets at FVPL - fair values are based on quoted market prices.
Refundable deposits - fair values are based on the present value of future cash flows discounted
using prevailing interest rates ranging from 2.71% to 8.00% and 4.05% to 10.19% as at
December 31, 2011 and 2010, respectively.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
As of December 31, 2011 and 2010, the financial instruments carried at fair value only pertains to
the Group’s financial assets at FVPL, which consist of investments in debt and equity securities
(see Note 7). The fair values of these debt and equity securities are based on quoted prices
(Level 1). There were no transfers between Level 1 and Level 2 fair value measurements, and no
transfers into and out of Level 3 fair value measurement in 2011 and 2010.
5. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments mainly comprise of short-term loans from banks. The
main purpose of these financial instruments is to raise funds for the Group’s fulfillment or delivery
of remittance transactions to beneficiaries. The Group also has various other financial assets and
liabilities such as cash and cash equivalents, accounts receivables, and accounts payable to
beneficiaries, which arise directly from its remittance operations.
The main risks arising from the Group’s financial instruments are credit risk, foreign currency
risk, cash flow interest rate risk, fair value interest rate risk and liquidity risk. The BOD reviews
and approves policies for managing each of these risks and these are summarized below:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to perform its
obligations during the life of the transaction. This includes risk of non-payment by borrowers or
issuers, failed settlement of transactions and default on contracts.
The nature of its business exposes the Group to potential risk from difficulties in recovering
transaction money from foreign partners. Receivables from agents arise as a result of its
remittance operations in various regions of the globe. In order to address this, the Group has
maintained the following credit policies: (a) implement a contract that incorporates a bond and
advance payment cover such that the full amount of the transaction will be credited to the Group
*SGVMC116502*

- 28 -
prior to their delivery to the beneficiaries, which applies generally to all new agents of the Group
and in certain cases to old agents; (b) all foreign offices and agents must settle their accounts
within the agreed credit terms, otherwise, the fulfillment or delivery of their remittance
transactions will be put on hold; (c) evaluation of individual potential partners and preferred
associates’ creditworthiness, as well as a close look into the other pertinent aspects of their
partners’ businesses which assures the Group of the financial soundness of their partner firms; and
(d) receivable balances are monitored daily by the regional managers with the result that the
Group’s exposure to bad debts is not significant.
Receivables from agents and couriers are highly collectible and have a turnover ranging from 1 to
5 days and 30 to 60 days, respectively. Other receivables, which include advances to related
parties, are also highly collectible and are due in less than one year.
The table below shows the maximum credit exposure of the Group per account classification as of
December 31, 2011 and 2010 (see Notes 6, 7, 8, 9 and 14):
2011 2010
Financial assets at FVPL P=125,226,264 P=102,905,294
Loans and receivables:
Cash and cash equivalents* 843,237,147 831,495,615
Accounts receivable 933,545,989 1,059,299,273
Other receivables
Nontrade receivable 72,432,683 −
Related parties 25,020,726 26,992,977
Officers and employees 9,514,306 9,686,457
Interest receivable 3,624,850 3,512,291
Noncontrolling shareholders – 39,981,243
Others 3,838,695 3,267,906
Other noncurrent assets
Refundable deposits 17,291,585 14,099,442
P=2,033,732,245 P=2,091,240,498
* excludes cash on hand
Maximum exposure for financial instruments recorded at fair value as shown above represent the
risk exposure as of respective balance sheet dates but not the maximum risk exposure that could
arise in the future as a result of changes in value.
The table below shows the maximum credit exposure of the Group per geographical classification
as of December 31, 2011 and 2010:
2011 2010
Asia Pacific P=1,742,418,296 P=1,869,788,619
Middle East 108,885,265 106,023,556
North America 74,982,548 58,180,050
Europe 107,446,136 57,248,273
Total P=2,033,732,245 P=2,091,240,498
The Group classifies its neither past due nor impaired receivables as high grade. High grade
financial assets includes instruments with credit ratings of excellent, strong, good, or satisfactory,
wherein the borrower has a low probability of default and could withstand the normal business
cycle. Financial assets at FVPL are also assessed as high grade since these are issued by reputable
companies.
*SGVMC116502*

- 29 -
As at December 31, 2011, the Group has past due but not impaired receivables from agents
amounting to P=8.77 million. These receivables have been outstanding for more than six months
but less than one year. No impairment was recognized relative to these receivables. There are no
past due but not impaired receivables as of December 31, 2010.
Foreign Currency Risk
Foreign currency risk is the risk to earnings or capital arising from changes in foreign exchange
rates. It is the Group’s policy that all daily foreign currencies, which arise as a result of its
remittance transactions, must be traded daily with bank partners only at prevailing foreign
exchange rates in the market. The daily closing foreign exchange rates shall be the guiding rate in
providing wholesale rates and retail rates to foreign offices and agents, respectively. The trading
proceeds will be used to pay out bank loans and other obligations of the Group.
The tables below summarize the Group’s exposure to foreign exchange risk. Included in the tables
are the Group’s foreign currency-denominated monetary assets and liabilities as of
December 31, 2011 and 2010, and their PHP equivalent.
2011
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,774,317 2,993,761 (52,132) 4,715,946 P=201,888,510
EUR 1,079,751 370,790 (58,203) 1,392,338 78,985,839
HKD 12,632,975 10,000 (106,006) 12,536,969 70,680,963
SGD 440,811 1,628,629 – 2,069,440 69,903,060
AUD 792,392 765,809 (45,767) 1,512,434 66,901,848
USD 1,263,619 246,093 – 1,509,712 66,185,751
GBP 166,587 851,560 (23,301) 994,846 67,396,873
NTD – 20,248,641 – 20,248,641 29,205,344
NZD 128,013 268,978 (5,630) 391,361 13,192,205
QAR 275 – – 275 3,311
Net exposure P=664,343,704
2010
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,109,576 2,765,810 (121,524) 3,753,862 P=164,519,939
EUR 1,303,292 360,688 (96,888) 1,567,092 90,850,617
HKD 5,410,983 14,370,305 (154,859) 19,626,429 110,564,310
SGD 89,587 1,254,112 – 1,343,699 45,565,156
AUD 470,898 718,244 (14,991) 1,174,151 52,360,146
USD 1,026,855 901,651 – 1,928,506 84,545,703
GBP 153,415 570 (25,738) 128,247 8,715,202
NTD – 23,731,378 – 23,731,378 35,581,120
NZD 128,277 105,825 (5,412) 228,690 7,659,688
QAR 275 – – 275 3,312
Net exposure P=600,365,193
*SGVMC116502*

- 30 -
The following tables set forth for the year indicated the impact of reasonably possible changes in
the rates of other currencies on pretax income.
2011
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
CAD +2.81 P= 10,959,401 -1.60 (P= 6,238,760)
EUR +7.36 9,585,817 -0.25 (324,205)
SGD +1.95 4,038,058 -0.66 (1,363,182)
AUD +2.95 3,715,845 -2.94 (3,714,735)
GBP +4.40 3,573,796 -1.06 (856,884)
NTD +0.10 1,985,663 -0.12 (2,434,616)
USD +0.91 1,373,837 -1.94 (2,928,840))
NZD +3.50 1,099,962 -2.44 (766,071)
HKD +0.11 169,062 -0.26 (399,917)
QAR +0.24 66 -0.53 (147)
2010
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
CAD +1.75 P=6,041,607 -2.09 (P=7,215,405)
EUR +8.87 7,430,736 -3.04 (2,546,724)
SGD +0.32 429,984 -1.87 (2,512,717)
AUD +0.13 125,764 -7.05 (6,820,290)
GBP +8.01 118,164 -3.57 (52,665)
NTD +0.01 237,314 -0.12 (2,847,765)
USD +3.55 6,846,196 -1.61 (3,104,895)
NZD +1.03 226,486 -3.09 (679,457)
HKD +0.41 637,042 -0.08 (124,301)
QAR +1.73 476 -4.08 (1,122)
Translation Risk
The Group’s consolidated statement of financial position is exposed to foreign exchange
fluctuations as these affect the translation of subsidiaries’ net assets and income and expenses
denominated in foreign currencies. The following tables set forth for the year indicated the impact
of reasonably possible changes in the rates of other currencies on equity.
Change in nominal
foreign currency
2011
Change in nominal
foreign currency
Effect on
Effect on
Currency
exchange rate
equity exchange rate
equity
HKD +0.11 P=5,233,309 -0.26 (P=12,369,640)
CAD +2.81 2,386,352 -1.60 (1,358,777)
EUR +7.36 1,578,924 -0.25 (53,632)
NZD +3.50 (955,612) -2.44 666,198
AUD +2.95 600,471 -2.94 (598,435)
GBP +4.40 (12,964) -1.06 3,123
*SGVMC116502*

- 31 -
Change in nominal
2010
Change in nominal
foreign currency
Effect on foreign currency
Effect on
Currency
exchange rate
equity exchange rate
equity
HKD +0.41 P=14,638,271 -0.08 (P=2,856,248)
CAD +1.75 855,520 -2.09 (1,021,735)
EUR +8.87 (299,049) -3.04 102,493
NZD +1.03 (189,295) -3.09 567,885
AUD +0.13 25,632 -7.05 (738,995)
GBP +8.01 355,672 -3.57 (158,520)
Cash Flow Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows of financial instruments.
As of December 31, 2011 and 2010, the Group’s exposure to cash flow interest rate risk is
minimal. The Group’s policy is to manage its interest cost by entering only into fixed rate shortterm
loans from banks.
Fair Value Interest Rate Risk
Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due
to changes in market interest rates.
The Group accounts for its debt investments at fair value. Thus, changes in the benchmark interest
rate will cause changes in the fair value of quoted debt instruments.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates,
with all other variables held constant, of the Group’s profit before tax as of December 31, 2011
and 2010. There is no impact on the Group’s equity other than those already affecting the profit or
loss.
2011 2010
Increase in Sensitivity of Increase in Sensitivity of
basis points trading gains basis points trading gains
USD Interest Rate +50bps (2,016,773) +50bps (1,495,140)
USD Interest Rate -50bps 2,099,428 -50bps 1,226,880
Equity Price Risk
Equity price risk is the risk to earnings or capital arising from changes in stock exchange indices
relating to its quoted equity securities. The Group’s exposure to equity price risk relates primarily
to its investments in equity securities.
The Group’s policy is to maintain the risk to an acceptable level. Movement of share price is
monitored regularly to determine impact on its consolidated balance sheet.
Based on the historical movement of the stock exchange index, management’s assessment of
reasonable possible change was determined to be an increase (decrease) of 5.00% in 2011,
resulting to a possible effect of increase (decrease) of P=0.63 million in the 2011consolidated
statement of income.
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments.
*SGVMC116502*

- 32 -
The Group’s objective is to maintain a balance between continuity of funding and flexibility
through the use of short-term debts. In addition, the Group maintains credit facilities with local
banks. As of December 31, 2011 and 2010, the Parent Company has unused credit facilities
amounting to P=1.48 billion and P=1.02 billion, respectively (see Note 16).
Financial assets
Maturity profile of financial assets held for liquidity purposes is shown below. Analysis of debt
securities at FVPL into maturity groupings is based on the expected date on which these assets
will be realized. For other assets, the analysis is based on the remaining period from the end of the
reporting period to the contractual maturity date, or if earlier, the expected date the assets will be
realized.
Financial liabilities
The maturity grouping is based on the remaining period from the end of the reporting period to the
contractual maturity date. When a counterparty has a choice of when the amount is paid, the
liability is allocated to the earliest period in which the Group can be required to pay.
The tables below summarize the maturity profile of the Group’s financial instruments based on
undiscounted contractual payments.
2011
Less than 5 days 5 to 30 days 30 to 60 days
Over 60 days
but less than
one year Total
Financial assets
Cash and cash equivalents
Financial assets at fair value through
P=853,999,031 P=37,236,592 P=– P=– P=891,235,623
profit or loss – – 125,226,264
– 125,226,264
Accounts receivable 921,249,158 – 3,523,052 8,773,779 933,545,989
P=1,775,248,189 P=37,236,592 P=128,749,316 P=8,773,779 P=1,950,007,876
Financial liabilities
Beneficiaries and other payables:
Beneficiaries P=155,140,304 P=– P=– P=– P=155,140,304
Agents, couriers and trading clients 65,550,071 – – – 65,550,071
Accrued expenses – – 14,801,411 – 14,801,411
Advances from related parties – – – – –
Payable to suppliers – – 1,391,836 – 1,391,836
Others – – − – −
Interest-bearing loans 95,050,139 571,866,010 – – 666,916,149
P=315,740,514 P=571,866,010 P=16,193,247 P=– P=903,799,771
2010
Less than 5 days 5 to 30 days 30 to 60 days
Over 60 days
but less than
one year Total
Financial assets
Cash and cash equivalents
Financial assets at fair value through
P=873,637,916 P=10,180,031 P=– P=– P=883,817,947
profit or loss – – 102,905,294
– 102,905,294
Accounts receivable 1,025,016,072 – 34,283,201 – 1,059,299,273
P=1,898,653,988 P=10,180,031 P=137,188,495 P=– P=2,046,022,514
Financial liabilities
Beneficiaries and other payables:
Beneficiaries P=144,960,550 P=– P=– P=– P=144,960,550
Agents, couriers and trading clients 44,773,236 – – – 44,773,236
Payable to suppliers – – 2,958,634 – 2,958,634
Accrued expenses – – 2,701,805 – 2,701,805
Advances from related parties – – 1,431,156 – 1,431,156
Others – – 5,165 – 5,165
Interest-bearing loans 395,273,055 483,077,528 – – 878,350,583
P=585,006,841 P=483,077,528 P=7,096,760 P=– P=1,075,181,129
*SGVMC116502*

6. Cash and Cash Equivalents
This account consists of:
- 33 -
2011 2010
Cash on hand P=47,998,476 P=52,322,332
Cash in banks (Note 24) 806,000,555 821,315,584
Short-term deposits 37,236,592 10,180,031
P=891,235,623 P=883,817,947
Cash in banks earn interest at the respective bank deposit rates. Short-term deposits are made for
varying periods of up to three months and earn interest at the respective short-term deposit rates.
In 2011, 2010 and 2009, interest income amounted to P=3.14 million, P=3.47 million and
P=7.90 million, respectively.
The Group’s cash and cash equivalents denominated in foreign currency, with corresponding
Philippine peso (PHP) equivalent, are as follows:
December 31, 2011 December 31, 2010
Amount PHP equivalent Amount PHP equivalent
CAD 1,774,317 P=75,958,092 1,109,576 P=48,629,219
HKD 12,609,757 71,222,227 5,410,983 30,482,448
EUR 1,079,751 61,253,141 1,303,292 75,557,071
USD 1,263,619 55,397,074 1,026,855 45,017,323
AUD 792,392 35,051,104 470,898 20,999,248
SGD 440,811 14,890,037 89,587 3,037,917
GBP 166,587 11,285,606 153,415 10,425,529
NZD 128,013 4,315,137 128,277 4,296,479
QAR 275 3,311 275 3,312
P=329,375,729 P=238,448,546
Cash in banks earn interest rates in 2011, 2010 and 2009 ranging as follows for:
PHP-Denominated 0.50% to 2.00%
Foreign Currency-Denominated 0.25% to 0.50%
7. Financial Assets at Fair Value Through Profit or Loss
This account consists of:
2011 2010
Debt securities P=112,624,807 P=102,905,294
Equity securities 12,601,457 –
P=125,226,264 P=102,905,294
Debt securities are bonds issued by various foreign private corporations and foreign government
and are listed overseas. As of December 31, 2011 and 2010, the carrying amount includes net
unrealized gain of P=0.01 million and P=0.57 million, respectively. Interest income earned in 2011,
2010 and 2009 amounted to P=10.72 million, P=9.04 million and P=7.28 million, respectively.
*SGVMC116502*

- 34 -
Equity securities are common shares of various foreign corporations. As of December 31, 2011,
the carrying amount includes net unrealized loss of P=3.37 million.
Gains and losses from fair value changes of financial assets at FVPL are included in ‘Net trading
gains’ in the consolidated statements of income.
8. Accounts Receivable
This account consists of receivables from:
2011 2010
Agents P=930,022,937 P=1,025,016,072
Couriers 3,523,052 34,283,201
P=933,545,989 P=1,059,299,273
Receivables from agents pertain to advances made to fund the remittance transactions to
beneficiaries. These are settled within 1 to 5 days from transaction date.
Receivables from couriers pertain to advances made to the courier companies to ease up the doorto-door
delivery of the remittances to the beneficiaries. These are settled within 30 to 60 days
from transaction date.
9. Other Receivables
Other receivables consist of:
2011 2010
Nontrade receivable P=72,432,683 P=–
Related parties (Note 24) 25,020,726 26,992,977
Officers and employees 9,514,306 9,686,457
Interest receivable 3,624,850 3,512,291
Noncontrolling shareholders – 39,981,243
Others 3,838,694 3,267,906
P=114,431,259 P=83,440,874
Nontrade receivable pertains to the receivable from the sale of various assets of IRCGmbH related
to the discontinued operations in Italy (see Note 28). The receivable was subsequently collected in
March 2012.
The amounts due from noncontrolling shareholders pertain to the noncontrolling shareholders of
IRCGmbH and WEPL. In 2011, the Parent Company acquired additional interest in IRCGmbH
and WEPL and the receivables amounting to P=12.30 million and P=25.01 million, respectively,
were applied against the acquisition costs (see Note 1). The remaining balance of P=2.67 million,
was subsequently collected in July 2011.
Advances to officers and employees are non-interest bearing and are due on demand.
*SGVMC116502*

10. Other Current Assets
This account consists of:
- 35 -
2011 2010
Receivable from Bureau of Internal Revenue (BIR) P=13,160,535 P=13,160,535
Prepaid expenses 9,907,410 14,882,159
Visa cards inventory 3,371,662 8,054,220
Advances to suppliers and contractors 1,087,500 50,000
Refundable taxes 1,208,422 –
Office supplies 190,328 199,689
Creditable withholding tax 2,979 −
P=28,928,836 P=36,346,603
Receivable from the BIR pertains to the excess payments made by the Parent Company in 2007
for the Initial Public Offering (IPO) percentage tax. As of December 31, 2011, the case is pending
resolution with the Court of Tax Appeals. The Parent Company believes that it will be able to
obtain the refund from the BIR.
Prepaid expenses include prepayments for interest, rent, association dues and insurance.
Refundable taxes pertain to the advance income taxes paid by LSML at the beginning of the year
based on the tax assessment on the projected income. In 2011, LSML operations resulted to a loss
making the advance tax payments either refundable or applicable to other tax obligations.
11. Investments in Associates
The Parent Company’s investments in associates consist of the following:
2011 2010
Acquisition cost:
ISPL P=12,600,000 P=12,600,000
HKHCL 3,573,974 3,573,974
16,173,974 16,173,974
Accumulated equity in net earnings:
Balance at beginning of year 4,758,262 2,850,188
Equity in net earnings during the year 2,131,855 2,504,455
Dividends – (596,381)
Balance at end of year 6,890,117 4,758,262
P=23,064,091 P=20,932,236
Acquisition of associates
HKHCL
On July 1, 2009, the Parent Company acquired 49.00% ownership interest in HKHCL, for a
consideration of NTD2.45 million (P=3.57 million). HKHCL is a remittance business based in
Taiwan.
*SGVMC116502*

- 36 -
ISPL
On June 29, 2007, the Parent Company acquired 49.00% ownership interest in ISPL through the
execution of a deed of assignment by the previous stockholders (who are also stockholders of the
Parent Company) of the entity for a consideration of P=12.60 million. ISPL is a remittance
business based in Singapore.
The following tables present the summarized financial information of the Parent Company’s
associates as of and for the years ended December 31, 2011 and 2010:
2011
Balance Sheets Statements of Income
Total Total
Gross
Assets Liabilities Revenue
(In thousands)
Income Net Income
HKHCL P=26,875 P=23,906 P=19,340 P=13,151 P=1,223
ISPL 73,254 49,703 55,924 31,894 3,127
P=100,129 P=73,609 P=75,264 P=45,045 P=4,350
2010
Balance Sheets Statements of Income
Total
Gross
Assets Total Liabilities Revenue
(In thousands)
Income Net Income
HKHCL P=24,398 P=22,561 P=21,010 P=14,287 P=359
ISPL 61,209 40,638 56,130 33,198 4,754
P=85,607 P=63,199 P=77,140 P=47,485 P=5,113
2009
Balance Sheets Statements of Income
Total
Gross Net Income
Assets Total Liabilities Revenue
(In thousands)
Income (Loss)
HKHCL P=74,159 P=42,914 P=38,046 P=37,708 P=13,027
ISPL 31,970 30,572 21,096 14,295 (966)
P=106,129 P=73,486 P=59,142 P=52,003 P=12,061
12. Property and Equipment
The composition of and movements in this account follow:
Office and
Communication
Equipment
Transportation
and Deliver
Equipment
2011
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=43,553,651 P=7,002,071 P=10,147,352 P=30,636,325 P=91,339,399
Additions 5,425,325 35,315 473,849 1,175,690 7,110,179
Disposals (2,711,355) – (1,518,214) (1,984,214) (6,213,783)
Exchange adjustments 194,442 1,073 (23,832) (132,178) 39,505
Balance at end of year 46,462,063 7,038,459 9,079,155 29,695,623 92,275,300
Accumulated Depreciation and
Amortization
Balance at beginning of year 33,075,135 3,046,690 6,497,396 21,706,870 64,326,091
Depreciation and amortization 5,889,913 1,329,460 962,326 3,079,596 11,261,295
Disposals (738,675) – (776,847) (628,335) (2,143,857)
Exchange adjustments (131,317) 74 (16,230) (228,214) (375,687)
Balance at the end of the year 38,095,056 4,376,224 6,666,645 23,929,917 73,067,842
Net Book Value at End of Year 8,367,007 2,662,235 2,412,510 5,765,706 19,207,458
*SGVMC116502*

Office and
Communication
Equipment
- 37 -
Transportation
and Delivery
Equipment
2010
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=38,536,745 P=6,084,508 P=9,454,682 P=27,086,081 P=81,162,016
Additions 6,135,953 3,116,461 1,074,464 3,712,282 14,039,160
Disposals (195,500) (2,202,818) (91,412) – (2,489,730)
Exchange adjustments (923,547) 3,920 (290,382) (162,038) (1,372,047)
Balance at end of year 43,553,651 7,002,071 10,147,352 30,636,325 91,339,399
Accumulated Depreciation and
Amortization
Balance at beginning of year 27,932,474 2,422,598 5,391,722 17,595,090 53,341,884
Depreciation and amortization 5,770,034 1,330,203 1,255,968 4,188,639 12,544,844
Disposals (88,344) (708,790) (25,900) – (823,034)
Exchange adjustments (539,029) 2,679 (124,394) (76,859) (737,603)
Balance at the end of the year 33,075,135 3,046,690 6,497,396 21,706,870 64,326,091
Net Book Value at End of Year P=10,478,516 P=3,955,381 P=3,649,956 P=8,929,455 P=27,013,308
As of December 31, 2011 and 2010, the cost of fully depreciated property and equipment still in
use by the Group amounted to P=22.64 million and P=18.28 million, respectively.
Details of depreciation and amortization follow:
Consolidated
2011 2010 2009
Property and equipment - net P=11,261,295 P=12,544,844 P=12,554,531
Software costs - net (Note 14) 2,006,374 1,525,720 1,665,896
P=13,267,669 P=14,070,564 P=14,220,427
Depreciation and amortization amounting to P=1.76 million and P=0.80 million pertains to the
discontinued operations in Italy for the years ended December 31, 2011 and 2010, respectively
(see Note 28).
13. Goodwill
Movements in goodwill follow:
2011 2010
Balance at beginning of year P=93,092,118 P=97,582,106
Foreign exchange adjustment (436,778) (4,489,988)
Balance at end of year P=92,655,340 P=93,092,118
The Group’s goodwill relate to the excess of the acquisition cost over the ownership interest
acquired by the Parent Company in IGRL, IAPL, IRCL, LSML and WEPL, as follows:
IGRL and IAPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 100.00% ownership
interest in both IGRL and IAPL for a consideration of P=71.20 million and P=8.55 million,
respectively. IGRL and IAPL are based in United Kingdom and Australia, respectively. These
entities, which are in the remittance business, have the same operations as the Parent Company.
Accordingly, on June 29, 2007, the Parent Company acquired 100.00% ownership interest in
*SGVMC116502*

- 38 -
IGRL and IAPL through the execution of deeds of assignment by the previous stockholders (who
are also the stockholders of the Parent Company) of both entities. Under the deeds of assignment,
the existing advances by the Parent Company to certain stockholders were applied as payment for
the purchase of IGRL and IAPL.
WEPL
On June 2, 2007, the Parent Company’s BOD also approved the acquisition of 20.00% ownership
interest in WEPL for a consideration of P=5.60 million. WEPL was incorporated and is based in
Australia, and has the same operations as the Parent Company. Accordingly, on June 29, 2007,
the Parent Company acquired 20.00% ownership interest in WEPL through the execution of a
deed of assignment by the previous stockholders (who are also stockholders of the Parent
Company) of the entity. Under the deed of assignment, the existing advances of the Parent
Company to certain stockholders were applied as payment for the purchase of WEPL. On
September 4, 2007, an additional 15.00% ownership interest in WEPL was acquired by the Parent
Company for a consideration of P=3.43 million.
On March 25, 2011, the Parent Company’s BOD approved the acquisition of another 35.00%
ownership interest in WEPL for a consideration of AUD0.27 million (P=12.30 million). As
discussed in Note 1, WEPL is effectively 100.00% owned by the Parent Company through its
direct interest of 70.00% and indirect interest of 30.00% through IAPL.
IRCL
On October 1, 2004, the Parent Company’s BOD approved the acquisition of 65.00% of IRCL for
a consideration of P=10.34 million. IRCL, which was incorporated on July 16, 2001, is based in
Canada, and has the same operations as the Parent Company. The fair value of the net assets of
IRCL at acquisition date is P=8.25 million and the fair value of the 65.00% ownership interest was
P=5.36 million. The difference of P=4.98 million between the consideration paid and the fair value
of the interest acquired in IRCL was recognized as goodwill. On July 26, 2006, the additional
30.00% ownership interest from a noncontrolling stockholder in IRCL was transferred to the
Parent Company at no additional cost.
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 5.00% ownership
interest from a noncontrolling stockholder for a consideration of P=3.10 million taking its
ownership in IRCL to 100.00%. Accordingly on June 29, 2007, IRCL’s noncontrolling
stockholder executed a deed of assignment to transfer the ownership interest to the Parent
Company. Under the deed of assignment, the existing advances by the Parent Company to a
certain stockholder was applied as payment for the purchase of IRCL. The fair value of the net
assets of IRCL at acquisition date was P=11.50 million, and the fair value of the additional interest
acquired was P=0.57 million. The difference of P=2.53 million between the consideration paid and
the noncontrolling interest acquired in IRCL was recognized as goodwill.
LSML
LSML was incorporated on March 16, 2001, is based in Hong Kong, and has the same operations
as the Parent Company. On June 2, 2007, the Parent Company’s BOD approved the acquisition of
49.00% ownership interest in LSML for a consideration of P=24.70 million thereby taking its
ownership in LSML to 100.00%. Accordingly, on June 29, 2007, the noncontrolling stockholder
of LSML (who is also a stockholder of the Parent Company) executed a deed of assignment to
transfer its ownership interest to the Parent Company. Under the deed of assignment, the existing
advances by the Parent Company to the stockholder were applied as payment for the purchase of
LSML. The fair value of the net assets of LSML at acquisition date was P=8.23 million and the fair
*SGVMC116502*

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value of the additional interest acquired was P=4.03 million. The difference of P=20.67 million
between the consideration paid and the noncontrolling interest acquired in LSML was recognized
as goodwill.
Goodwill acquired through business combinations has been allocated to five individual CGUs as
follows:
2011 2010
IGRL P=50,833,394 P=50,991,293
LSML 19,695,652 19,681,102
IAPL 8,555,256 8,624,783
IRCL 7,268,177 7,440,857
WEPL 6,302,861 6,354,083
P=92,655,340 P=93,092,118
The recoverable amount of the CGUs have been determined based on value-in-use calculation
using cash flow projections from financial budgets approved by senior management covering a
five-year period. The discount rates applied to cash flow projections range from 8.55% to 10.60%
in 2011and 7.31% to 8.83% in 2010, and cash flows beyond the five year-period were extrapolated
using a steady growth rate of 1.00% in 2011 and 0.13% to 1.43% in 2010.
The calculation of the value-in-use of the CGUs are most sensitive to the following assumptions:
• Growth rate - The forecasted growth rate is based on a very conservative steady growth rate
that does not exceed the long term average rate for the industry.
• Pre-tax discount rates - Discount rates reflect management’s estimate of the risks specific to
each CGU. This is the benchmark used by management to assess operating performance.
With regard to the assessment of the value-in-use of each CGU, management believes that no
reasonably possible change in any of the above key assumptions would cause the carrying value
of the goodwill to materially exceed its recoverable amount.
14. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2011 2010
Cost
Balance at beginning of year P=12,384,629 P=11,425,409
Additions 2,034,070 852,274
Disposals (941,474) –
Foreign exchange adjustment (237,921) 106,946
Balance at end of year
Accumulated Amortization
13,239,304 12,384,629
Balance at beginning of year 10,302,883 8,720,725
Amortization (Note 12) 2,006,374 1,525,720
Disposals (459,811) –
Foreign exchange adjustment (61,086) 56,438
Balance at end of year 11,788,360 10,302,883
Net Book Value at end of year P=1,450,944 P=2,081,746
*SGVMC116502*

Other noncurrent assets consist of:
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2011 2010
Input VAT P=21,242,725 P=28,493,804
Refundable deposits 17,291,585 14,099,442
Deferred input VAT 326,057 350,550
Others 44,000 44,000
P=38,904,367 P=42,987,796
The Parent Company has applied for tax credits on Input VAT with the BIR and is waiting for the
issuance of Tax Credit Certificates (TCCs). In 2011, the BIR issued two tax credit certificates to
the Parent Company for its Input VAT filed for years 2005 and 2006 amounting to P=1.71 million
and P=3.82 million, respectively. Management of the Company believes that it will able to collect
the rest of the TCCs applicable to its outstanding claims. The carrying amounts are already net of
claims disallowed by the BIR amounting to P=2.06 million, nil and P=1.34 million in 2011, 2010 and
2009, respectively (see Note 22).
Refundable deposits pertain to the security deposits made by the Parent Company and some of its
subsidiaries in relation to rental lease agreements for the office spaces in the Philippines, Hong
Kong, United Kingdom, Canada and Italy.
15. Beneficiaries and Other Payables
This account consists of:
2011 2010
Beneficiaries P=155,140,304 P=144,960,550
Agents, couriers and trading clients 65,550,310 44,773,236
Accrued expenses 14,801,171 2,701,805
Payable to SSS, Philhealth and HDMF 1,636,232 620,661
Withholding tax payable 1,543,424 2,045,708
Payable to suppliers 1,391,836 2,958,634
Output VAT 17,875 −
Due to related parties (Note 24) – 1,431,156
Others – 5,165
P=240,081,152 P=199,496,915
Payables to beneficiaries, agents, couriers and trading clients are noninterest-bearing and are
normally settled within 1 to 30 days.
Accrued expenses include the Group’s accrual for various operating expenses such as vacation and
sick leave benefits, courier charges, training and development, professional fees and utilities.
*SGVMC116502*

16. Interest-Bearing Loans
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This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2011 and 2010, the outstanding loans payable of the Parent Company
amounted to P=666.00 million and P=877.00 million, respectively.
In 2011, 2010 and 2009, these loans bear annual interest rates ranging from 5.00% to 7.00%,
5.50% to 6.00%and 7.00% to 8.00%, respectively. In 2011, 2010 and 2009, the Parent Company
recognized interest expense of P=38.32 million, P=29.21 million and P=48.68 million, respectively.
The Parent Company has unused credit facilities with various banks aggregating to P=1.48 billion
and P=1.02 billion as of December 31, 2011 and 2010, respectively.
17. Equity
Capital Stock
The Parent Company’s capital stock consists of:
2011 2010 2009
Number of
Shares Amount
Number of
Shares Amount
Number of
Shares Amount
Common Stock
Authorized - P=1 par value
per share 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000
Issued:
Balance at beginning
of the year 562,417,000 P=562,417,000 562,417,000 P=562,417,000 562,417,000 P=562,417,000
Stock dividends 55,308,800 55,308,800 – – – –
Balance at end of the year 617,725,800 617,725,800 562,417,000 562,417,000 562,417,000 562,417,000
Treasury stock:
Balance at beginning
of the year (9,329,000) (40,115,150) (9,329,000) (40,115,150) (10,006,200) (40,792,350)
Acquisitions (5,544,000) (12,872,058) – – (130,900) (130,900)
Reissaunce – – – – 808,100 808,100
Balance at end of the year (14,873,000) (52,987,208) (9,329,000) (40,115,150) (9,329,000) (40,115,150)
Issued and outstanding 602,852,800 P=564,738,592 553,088,000 P=522,301,850 553,088,000 P=522,301,850
On September 13, 2007, the SEC approved the registration of 140,604,000 common shares with
offer price of P=4.68 and 454,950,000 outstanding shares with par value of P=1.00. There are 17
registered common stockholders as of December 31, 2011 and 13 registered common stockholders
as of December 31, 2010 and 2009. Shares lodged with the Philippine Central Depository are
registered under the name of PCD Nominee Corporation and as such are treated as being held by
only one shareholder.
Capital Paid-in Excess of Par Value
The Parent Company’s capital paid-in excess of par value is composed of excess of proceeds on
issuance of the Parent Company’s shares amounting to P=429.51 million and excess of acquisition
costs over the carrying value of the noncontrolling interests acquired in 2011 amounting to
P=38.28 million (see Note 1).
*SGVMC116502*

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Dividends
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 17, 2009. The payment of dividends was made on May 6, 2009.
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On June 17, 2011, the BOD of the Parent Company authorized the declaration of stock dividends
equivalent to 10% of outstanding shares of 553,088,000 in favor of its stockholders-of-record as of
August 15, 2011. The declaration was subsequently ratified and confirmed by the Parent
Company’s stockholders during their annual meeting held on July 29, 2011.
Accumulated net earnings of the subsidiaries amounting to P=200.65 million and P=121.85 million
as of December 31, 2011 and 2010, respectively, are not available for dividend declaration. This
accumulated equity in net earnings becomes available for dividend upon receipt of cash dividends
from the investees by the Parent Company.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the buy-back program to acquire up to
ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent Company’s
total outstanding common shares, from the market. The Parent Company purchased 9,329,000
shares (P=40.11 million) in 2008 under the buy-back program.
In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred in
September 2009 to the retirement fund of the Parent Company (see Notes 18 and 19).
On September 16, 2011, the BOD of the Parent Company adopted a resolution authorizing the
buy-back of up to ten million (10,000,000) of its shares from the market. The Parent Company
purchased 4,873,000 shares (P=11.35 million) under this buy-back program.
In 2011, the Parent Company also purchased 671,000 shares (P=1.52 million) under the buy-back
program approved on August 15, 2008 as discussed above.
Capital Management
The Group’s capital is composed of its equity, which amounts to P=1.36 billion and P=1.27 billion as
of December 31, 2011 and 2010, respectively.
The Group’s capital management activities seek to ensure that it maintains a healthy capital ratio
in order to support its businesses and maximize shareholder’s value by optimizing the level and
mix of its capital resources. Decisions on the allocation of capital resources are being performed as
part of the strategic planning review.
The Group manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. No changes
were made in the objectives, policies or processes during the years ended December 31, 2011 and
2010.
*SGVMC116502*

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The Group’s objective is to ensure that there are no known events that may trigger direct or
contingent financial obligation that is material to the Company, including default or acceleration
of an obligation.
The Group is not subject to externally imposed capital requirements.
18. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
The Parent Company determined its transitional liability for defined benefit retirement plan merely
as the present value of the obligation since the Parent Company had no plan assets at the date of
the adoption. Transitional liability is amortized prospectively over five (5) years starting on
January 1, 2005.
The latest actuarial valuation report on the retirement plan is dated December 31, 2011.
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2011 and 2010 follow:
2011 2010
Discount rate 9.69% 11.25%
Future salary increases 8.00% 9.00%
Expected return on plan assets 6.00% 6.00%
Average remaining working life (in years) 32.1 31.8
The discount rates used to arrive at the present value of the obligation as of December 31, 2011
and 2010 are 6.70% and 9.69%, respectively.
The amounts recognized in the consolidated balance sheets follow:
2011 2010
Present value of obligation P=22,524,680 P=21,847,360
Fair value of plan assets 21,816,324 15,196,930
Deficit 708,356 6,650,430
Unrecognized actuarial loss (1,076,750) (5,872,169)
Retirement (asset) liability (P=368,394) P=778,261
*SGVMC116502*

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The movements in the fair value of plan assets in 2011 and 2010 are as follows:
2011 2010
Balance at beginning of year P=15,196,930 P=12,421,022
Contributions 6,895,233 5,229,490
Expected return on plan assets 1,118,673 738,073
Actuarial loss (1,394,512) (2,643,029)
Benefits paid from plan assets – (548,626)
Balance at end of year P=21,816,324 P=15,196,930
The actual return on the plan assets of the Parent Company in 2011 and 2010 amounted to a loss
of P=0.28 million and P=1.90 million, respectively.
The Parent Company expects to contribute P=6.53 million to its retirement fund in 2012.
The movements in the present value of obligation follow:
2011 2010
Balance at beginning of year P=21,847,360 P=10,080,516
Current service cost 4,618,548 2,143,246
Interest cost 2,117,009 1,134,058
Benefits paid from plan assets – (548,626)
Actuarial (gain) loss (6,058,237) 9,038,166
Balance at end of year P=22,524,680 P=21,847,360
The amounts of retirement expense included in ‘Salaries, wages and employee benefits’ in the
consolidated statements of income follow:
2011 2010 2009
Current service cost P=4,618,548 P=2,143,246 P=1,819,273
Interest cost 2,117,009 1,134,058 999,326
Expected return on plan assets (1,118,673) (738,073) –
Actuarial (gain) loss recognized 131,694 (163,104) (53,418)
Amortization of transitional liability – – 252,228
P=5,748,578 P=2,376,127 P=3,017,409
The movements in the retirement (asset) liability recognized in the balance sheets are as follows:
2011 2010
Balance at beginning of year P=778,261 P=3,631,624
Retirement expense 5,748,578 2,376,127
Contributions (6,895,233) (5,229,490)
Balance at end of year (P=368,394) P=778,261
Movements in the unrecognized actuarial (gains) losses are as follows:
2011 2010
Balance at beginning of year P=5,872,169 (P=5,972,130)
Actuarial loss (gain) during the year (4,663,725) 11,681,195
Actuarial (loss) gain recognized (131,694) 163,104
Balance at end of year P=1,076,750 P=5,872,169
*SGVMC116502*

The major categories of plan assets follow:
- 45 -
2011 2010
Private equity securities* P=9,245,139 P=10,249,745
Deposits in banks 7,613,374 2,047,387
Government debt securities 4,763,467 2,760,719
Interest receivable 215,615 162,126
Trust fee payable (21,271) (23,047)
P=21,816,324 P=15,196,930
*This includes P=0.81 million of the Parent Company’s own equity securities bought under the SSPP (see Note 19).
The amounts of experience adjustments relating to the plan liabilities of the Parent Company
follow:
2011 2010 2009 2008 2007
Present value of obligation 22,524,680 P=21,847,360 P=10,080,516 P=6,574,511 P=7,770,113
Fair value of plan assets 21,816,324 15,196,930 12,421,022 3,168,050 −
Deficit (surplus) 708,356 6,650,430 (2,340,506) 3,406,461 7,770,113
Changes in actuarial assumptions (498,493) 9,932,542 1,070,082 (3,766,312) (9,785,892)
Experience adjustments on plan
liabilities (5,559,744) (894,376) (382,676) (206,448) 4,176,250
Experience adjustments on plan assets (1,394,512) (2,643,029) 4,452,972 – −
The subsidiaries are not required to establish and accrue retirement obligation.
19. Special Stock Purchase Program (SSPP)
On July 20, 2007, the Parent Company’s BOD approved the proposal to set up a SSPP totaling
15,000,000 shares for the employees of the Parent Company who have been in the service for at
least one (1) calendar year as of June 30, 2007, as well as its BOD members, resource persons and
consultants (collectively referred to as “the Participants”). A Notice of Exemption under Section
10.2 of the Securities Regulations Code had been approved by the SEC on September 13, 2007.
Notwithstanding the aforesaid confirmation by the SEC of the exempt status of the SSPP shares,
the SEC nonetheless required the Parent Company to include the SSPP shares among the shares
of the Parent Company which were registered with the SEC prior to the conduct of its Initial
Public Offering in October 2007. The registration of the Parent Company shares, together with
the SSPP shares, was rendered effective on October 5, 2007.
All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or
P=1.00 per share. Total shares amounting to P=11.74 million were paid in full, while the difference
totaling P=3.26 million were paid by way of salary loan. Shares acquired through SSPP are subject
to a lock-up period of two years from date of issue, which ended on September 19, 2009.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the shares purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company as Treasury stock.
As of December 31, 2009, 24 employees resigned (9 in 2009, 13 in 2008 and 2 in 2007) and their
shares totaling 808,100 (130,900 in 2009, 548,500 in 2008 and 128,700 in 2007) were bought
back by the Parent Company at par value.
*SGVMC116502*

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As approved by the Parent Company’s BOD, the fair value of the shares issued under the SSPP
was measured at the grant date using the price-earnings multiple model taking into account the
terms and conditions upon which the shares were granted. The fair value at grant date was
P=1.33 per share. This transaction also resulted in an increase in equity by P=1.53 million,
P=2.16 million and P=1.00 million in 2009, 2008 and 2007, respectively.
On September 19, 2009, which is the end of the lock up period, the 808,100 shares bought back at
cost was transferred to the Parent Company’s retirement fund upon reimbursement of the
P=0.81 million paid by the Parent Company for those shares.
The expense arising from the share-based payment plan is recognized over the two-year lock-up
period. The expense recognized under ‘Salaries, wages and employee benefits’ in the statements
of income amounted to P=1.53 million in 2009.
20. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
(b) A lease agreement with Wynsum Realty was entered into for a period of 24 months
commencing on September 1, 2008 to August 31, 2010 with a 5.00% escalation on the
monthly rental on the second year of the lease term. The contract was renewed for another
period of 2 years from September 1, 2010 to August 31, 2012 with the same terms.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of 36 months commencing on February 1, 2007 to January 31, 2010 with a 10.00%
escalation on the monthly rental payable effective on the 13th and 25th month of the lease
term. The contract was renewed for another period of 2 years from February 1, 2010 to
January 31, 2012 with the same terms.
(d) A lease agreement with Oakridge Properties (Unit 2603) was entered into for a period of 12
months, which commenced on December 1, 2008 and expired on November 30, 2009. The
contract was renewed for a period of 2 years commencing on December 1, 2009 to
November 30, 2011 with a 10.00% escalation on the monthly rental on the 13th month of the
lease term. The contract was renewed for another period of 2 years from December 1, 2011 to
November 30, 2013 with the same terms.
(e) On January 6, 2009, a lease agreement with Oakridge Properties (Unit 2703) was entered into
for a period of 24 months commencing February 1, 2009 to January 31, 2011 with a 10.00%
escalation rate on the aggregate monthly rental effective on the 13th month of the lease term.
The contract was renewed for a period of 2 years from February 1, 2011 to January 31, 2013
with the same terms.
*SGVMC116502*

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(f) On July 1, 2011, the Parent Company entered into a sublease agreement with Surewell
Equities Pte Ltd., one of the stockholders of the Parent Company, for the use of the latter’s
office space in Singapore for an initial term of two (2) years.
The subsidiaries have their respective operating lease agreements for their office spaces. The
lease contracts are for periods ranging from 1 to 10 years and may be renewed under the terms and
conditions mutually agreed upon by the subsidiaries and the lessors.
Rent expense of the Group amounted to P=57.43 million, P=50.38 million, and P=39.33 million in
2011, 2010 and 2009, respectively. P=3.92 million and P=4.02 million of the total rent expense
pertain to rent expense of the discontinued operations of Italy for the years ended
December 31, 2011 and 2010, respectively.
Future minimum rentals payable under non-cancelable operating leases are as follows:
2011 2010
Within one year P=43,590,836 P=51,662,348
After one year but not more than five years 53,212,917 71,152,989
P=96,803,753 P=122,815,337
In 2007, WEPL subleased its office space in Liverpool for a period of 20 months commencing on
August 2007 to April 2009.
21. Marketing Expenses
This account consists of:
2011 2010 2009
Marketing and promotions P=27,746,400 P=34,637,750 P=22,120,718
Advertising and publicity 9,617,140 8,883,266 10,856,700
P=37,363,540 P=43,521,016 P=32,977,418
Expenses amounting to P=1.02 million and P=0.93 million pertain to the marketing expenses of the
discontinued operations of Italy for the years ended December 31, 2011 and 2010, respectively
(see Note 28).
22. Other Operating Expenses
This account consists of:
2011 2010 2009
Taxes and licenses P=9,020,616 P=7,910,719 P=4,531,430
Repairs and maintenance 4,770,543 4,902,356 4,634,302
Association dues 3,230,078 1,927,949 2,066,643
Business development 2,974,651 2,679,500 943,210
Fines and penalty 2,992,353 − −
Disallowance of input VAT by BIR 2,058,616 – 1,338,804
Insurance 1,974,703 1,835,663 1,726,711
Donations and contributions – 1,155,280 1,209,115
Other charges − − 4,982,042
Miscellaneous 1,213,551 652,704 1,730,305
P=28,235,111 P=21,064,171 P=23,162,562
*SGVMC116502*

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‘Business development’ pertains to various expenses incurred for development of potential foreign
offices and other related expenses.
‘Miscellaneous’ includes expenses for recruitment, Christmas party expenses, and Christmas
giveaways.
Other charges of the Group in 2009 pertain mainly to goods and services tax (GST) written off.
23. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
sourced from the remittance transactions.
‘Other income’ consists of:
2011 2010 2009
GST refund P=21,668,641 P=– P=–
Unrealized foreign exchange gain - net 1,205,505 1,769,202 5,172,171
Rebates 2,881,469 6,728,713 14,608,204
Others 4,060,301 6,081,539 12,488,020
P=29,815,916 P=14,579,454 P=32,268,395
GST refund pertains to refund of GST previously paid by IRCL and WEPL to the government of
Canada and Australia, respectively. Both entities are exempt from paying GST.
Interest income pertains to interest earned from deposits, short-term placements with banks and
financial assets at FVPL.
Rebates pertain to refund of bank service charges and foreign exchange special rates relating to the
remittance transactions of WEPL.
‘Others’ pertains to commission from processing of remittance from one foreign office to another.
In 2009, this also includes WEPL’s income from sublease of office space (see Note 20).
24. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
*SGVMC116502*

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In the ordinary course of business, the Group transacts with its related parties. Under the Group’s
existing policies, these transactions are made substantially on the same terms and conditions as
transactions with other individuals and businesses of comparable risks. The Group engages in
transactions with related parties consisting primarily of the following:
(a) Delivery fees earned from clients of associates are as follows:
2011 2010 2009
HKHCL P=46,127,251 P=33,202,567 P=25,364,567
ISPL 24,463,777 25,080,948 27,016,303
P=70,591,028 P=58,283,515 P=52,380,870
(b) The Parent Company leases office spaces from Oakridge Properties (see Note 20). Rent
expense amounted to P=9.96 million, P=9.25 million and P=8.17 million in 2011, 2010 and 2009,
respectively. Oakridge Properties is owned by JTKC, one of the stockholders of the Parent
Company.
(c) The Parent Company entered into a sublease agreement with Surewell Equities Pte Ltd., one
of the stockholders of the Parent Company (see Note 20). Rent expense amounted to
P=0.90 million in 2011.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate due to common stockholders, as trustee (see Note 18). The Parent Company also has
deposits amounting to P=118.62 million and P=129.71 million with SBA as of
December 31, 2011 and 2010, respectively. These deposits earned P=0.43 million,
P=1.12 million and P=1.16 million interest income in 2011, 2010 and 2009, respectively.
In addition to the related information disclosed elsewhere in the consolidated financial statements,
the following are the yearend balances in respect of transactions with related parties which were
carried in terms that prevail in arm’s length transactions during the year:
2011 2010
Due from related parties (Note 9):
Associates
ISPL P=16,034,603 P=16,104,921
HKHCL 8,986,123 10,888,056
Due to related parties (Note 15):
P=25,020,726 P=26,992,977
Directors P= − P=1,431,156
Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due
on demand.
Advances to directors are non-interest bearing and are due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
*SGVMC116502*

- 50 -
In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million).
The compensation of the key management personnel of the Group in 2011, 2010 and 2009 are as
follows:
2011 2010 2009
Short-term employee benefits P=27,036,984 P=21,059,431 P=19,232,031
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment − – 435,303
P=28,608,428 P=21,608,972 P=20,388,966
25. Income Taxes
The provision for income tax consists of:
2011 2010 2009
Current:
RCIT P=36,053,005 P=28,576,367 P=40,862,007
Final 589,871 643,945 1,534,105
Deferred (745,224) (921,460) (2,471,568)
P=35,897,652 P=28,298,852 P=39,924,544
Parent Company
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=4.46 million, P=2.84 million and P=2.62 million in 2011, 2010 and 2009,
respectively. The allowed EAR limit was P=4.90 million, P=2.80 million and P=2.74 million in 2011,
2010 and 2009, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2011 and 2010 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
*SGVMC116502*

- 51 -
The table below shows the income tax rates provided on the assessable profit for the year of each
subsidiary:
2011 2010
PSAGL 16.50% 16.50%
LSML 16.50% 16.50%
IAPL 30.00% 30.00%
WEPL 30.00% 30.00%
INZL 28.00% 30.00%
IGRL 21.00% 21.00%
IRCL 34.20% 34.20%
As of December 31, 2011 and 2010, the deferred tax assets and liability recognized by the Group
relates to the tax effects of the following:
2011 2010
Deferred tax assets on:
Unused tax losses P=4,980,348 P=3,669,877
Unused tax credits − 443,755
Accumulated depreciation − 119,288
Subtotal
Less deferred tax liability on:
4,980,348 4,232,920
Capital allowance 31,969 29,765
Net deferred tax assets P=4,948,379 P=4,203,155
The Parent Company did not set up deferred tax assets on the following temporary differences:
2011 2010
Temporary differences on:
Accrued interest expense P=1,994,506 P=2,074,213
Accrued courier charges − 393,793
Others 808,582 381,961
P=2,803,088 P=2,849,967
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
A reconciliation of the statutory income tax rates and the effective income tax rates in 2011, 2010
and 2009 follows:
2011 2010 2009
Statutory income tax 30.00% 30.00% 30.00%
Tax effects of:
Nondeductible (nontaxable) expenses
(income) (0.58) (1.62) (3.91)
Interest income subject to final tax (0.17) (0.34) (0.44)
Unrecognized deferred tax asset (0.04) (0.71) (1.82)
Difference in tax jurisdiction (8.33) 2.71 (0.77)
Effective income tax 20.88% 30.04% 23.06%
*SGVMC116502*

26. Earnings Per Share
- 52 -
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to
ordinary equity holders of the Parent Company by the weighted average number of ordinary shares
outstanding during the year.
The following reflects the income and share data used in the basic earnings per share
computations:
2011 2010 2009
a. Net income from continuing operations P=109,633,447 P=96,219,135 P=133,148,358
b. Income/(loss) from discontinued operations 26,429,749 (30,304,899) −
c. Net income (a+b) 136,063,196 65,914,236 133,148,358
d. Net income attributable to ordinary equity
holders of the Parent Company for basic
earnings 138,069,380 77,551,227 136,379,766
e. Weighted average number of shares for
basic earnings per share 607,014,606 608,396,800 607,823,506
f. Basic earnings per share (c/e) 0.22 0.11 0.22
g. Basic earnings per share attributable to
ordinary equity holders of the Parent
Company (d/e) 0.23 0.13 0.22
h. Basic earnings per share from continuing
operations (a/e) 0.18 0.16 0.22
i. Basic earnings (loss) per share attributable
to equity holders of the Parent Company
from discontinued operations (b/e) 0.04 (0.05) −
As of December 31, 2011, 2010 and 2009, there are no dilutive potential common shares.
27. Segment Reporting
The Group’s operating businesses are organized and managed separately according to
geographical areas representing strategic business units. These segments are the bases on which
the Group reports its segment information. Transactions among segments are conducted at market
rates on an arm’s length basis. The Group only reports a geographical segment analysis and no
secondary business segment was presented since all operations relate to the remittance business.
Segment assets are those operating assets that are employed by a segment in its operating activities
that are either directly attributable to the segment or can be allocated to the segment on a
reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a
segment and that are either directly attributable to the segment or can be allocated to the segment
on a reasonable basis.
*SGVMC116502*

- 53 -
Segment information as of and for the years ended December 31, 2011, 2010 and 2009 follow
(amounts in thousands):
Philippines Asia Pacific Europe
2011
North
America
Adjustments
and eliminations Total
Financial Performance
Revenue P=490,087 P=131,329 P=64,288 P= 103,124 (P=969) P=787,859
Cost of services (175,332) (3,440) (10,384) (10,271) − (199,427)
Gross income 314,755 127,889 53,904 92,853 (969) 588,432
Operating expenses (213,536) (67,598) (78,730) (94,336) 6,876 (447,324)
Other income (expense) (21,949) 14,071 (1,450) 17,901 (4,150) 4,423
Income before income tax 79,270 74,362 (26,276) 16,418 1,757 145,531
Provision for income tax (23,764) (10,830) (1,034) (270) − (35,898)
Net income 55,506 63,532 (27,310) 16,148 1,757 109,633
Noncontrolling interest − − − − 2,006 2,006
Net income attributable to equity
holders of the Parent Company P=55,506 P=63,532 (P=27,310) P=16,148 P=3,763 P=111,639
Financial Position
Total assets P=2,161,338 P=356,540 P=125,544 P= 87,150 (P=456,573) P=2,273,999
Total liabilities P=959,263 P=82,971 P=113,573 P=50,795 (P=293,925) P=912,677
Other Segment Information
Capital expenditures P=2,593 P=158 P=1,489 P=2,681 P= − =6,921 P
Depreciation and amortization P=6,535 P=1,307 P=1,534 P=2,131 P= − =11,507 P
2010
North Adjustments
Philippines Asia Pacific Europe America and eliminations Total
Financial Performance
Revenue P=463,249 P=128,963 P= 60,481 P=109,058 P=– P=761,751
Cost of services (180,569) (2,665) (9,411) (11,532) – (204,177)
Gross income 282,680 126,298 51,070 97,526 – 557,574
Operating expenses (204,595) (67,535) (66,600) (97,186) – (435,916)
Other income (expense) (21,110) 20,957 490 675 1,848 2,860
Income before income tax 56,975 79,720 (15,040) 1,015 1,848 124,518
Provision for income tax (16,430) (11,242) (278) (349) – (28,299)
Net income 40,545 68,478 (15,318) 666 1,848 96,219
Noncontrolling interest
Net income attributable to equity
– – – – 11,637 11,637
holders of the Parent Company P=40,545 P=68,478 (P=15,318) P=666 P=13,485 P=107,856
Financial Position
Total assets P= 2,298,118 P=256,831 P=85,245 P=62,144 (P=346,188) P=2,356,150
Total liabilities P= 1,138,677 P=53,107 P=84,182 P=40,718 (P=232,437) P=1,084,247
Other Segment Information
Capital expenditures P=5,949 P=1,015 P=6,081 P=994 P=– P=14,039
Depreciation and amortization P=8,059 P=1,800 P= 1,341 P=2,075 P=– P=13,275
*SGVMC116502*

- 54 -
2009
North Adjustments
Philippines Asia Pacific Europe America and eliminations Total
Financial Performance
Revenue P=473,446 P=119,824 P=73,103 P=112,284 P=– P=778,657
Cost of services (198,769) (2,502) (17,047) (12,619) – (230,937)
Gross income 274,677 117,322 56,056 99,665 – 547,720
Operating expenses (179,005) (69,321) (73,965) (90,068) – (412,359)
Other income (expense) 60,933 53,687 2,167 517 (79,592) 37,712
Income before income tax 156,605 101,688 (15,742) 10,114 (79,592) 173,073
Provision for income tax (27,198) (9,060) (278) (3,389) – (39,925)
Net income 129,407 92,628 (16,020) 6,725 (79,592) 133,148
Noncontrolling interest
Net income attributable to equity
– – – – 3,231 3,231
holders of the Parent Company P=129,407 P=92,628 (P=16,020) P=6,725 (P=76,361) P=136,379
Financial Position
Total assets P=2,404,902 P=248,228 P=73,889 P=81,580 (P=320,488) P=2,488,111
Total liabilities P=1,160,025 P=103,799 P=21,373 P=60,602 (P=110,115) P=1,235,684
Other Segment Information
Capital expenditures P=1,914 P=1,192 P=729 P=5,548 P=– P=9,383
Depreciation and amortization P=8,615 P=1,755 P=1,574 P=2,276 P=– P=14,220
The Group has no intersegment revenues and costs of services in 2011 and 2010.
The Group has no significant customers which contributes 10% or more of the consolidated
revenues.
Segment assets as of December 31, 2011 and 2010 do not include investments in subsidiaries
amounting to P=279.16 million and P=228.98 million, respectively and inter-segment receivables
amounting to P=291.98 million and P=211.64, respectively, which are eliminated on consolidation.
Capital expenditures, which pertain to property, plant and equipment acquired, are disclosed
according to the asset’s physical location.
The Group’s share in net income of associates amounting to P=2.05 million, P=2.50 million and
P=6.15 million in 2011, 2010 and 2009, respectively, are included under Asia Pacific.
28. Discontinued Operations
In February 2010, IRCGmbH (formerly IERCAG) started its remittance business in Italy. On
April 28, 2011, IRCGmbH stopped its money remittance operations in Rome and Milan in Italy in
accordance with Article 75 of the Transitional and Final Provisions of Austrian Payment Services
Act, which stipulated that credit institutions that have held authorizations pursuant to Article 1
paragraph 1 no 23 BWG, as amended by the Federal Act Federal Law Gazette No. 35/2003, prior
to December 25, 2009, have only until April 30, 2011 to carry out their money remittance
operations.
In December 2011, IRCGmbH sold assets relating to its operations in Italy to a third party. These
assets, with an aggregate carrying amount of P=7.29 million, were sold for a consideration of
P=72.43 million thereby resulting to a gain on sale of P=65.14 million.
*SGVMC116502*

- 55 -
The results of IRCGmbH’s operation in Italy follow:
2011 2010
Delivery fees P=5,289,202 P=7,486,658
Realized foreign exchange gains - net 1,006,867 673,204
6,296,069 8,159,862
Cost of services 596,703 3,749,195
Gross income 5,699,366 4,410,667
Other income - net 615,909 38,935
Operating expenses (45,024,921) (34,754,501)
Loss from operations (P=38,709,646) (P=30,304,899)
Gain on sale of assets 65,139,395 −
Income (Loss) from discontinued operations P=26,429,749 (P=30,304,899)
The net cash flows incurred by IRCGmbH in its Italy operations are as follows:
2011 2010
Operating P=27,911,882 (P=29,509,273)
Financing (27,911,882) 30,152,409
P= − P=643,136
29. Contingencies
The Group has various contingencies arising in the ordinary conduct of business which have
pending decision with the courts or are being contested, the outcome of which are not presently
determinable.
In the opinion of management and its legal counsel, the eventual liability under these lawsuits or
claims, if any, will not have a material or adverse effect on the Group’s financial position and
results of operations. The information usually required by PAS 37 is not disclosed on the grounds
that it can be expected to prejudice the outcome of these lawsuits, claims and assessments.
30. Approval of the Release of the Financial Statements
The accompanying consolidated financial statements were approved and authorized for issue by
the Parent Company’s BOD on March 23, 2012.
*SGVMC116502*

I-REMIT, INC. AND SUBSIDIARIES
INDEX TO THE
CONSOLIDATED FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
December 31, 2011
Schedu le Content Page No.
Part 1
I Schedule
of Retained Earnings Available for Dividend Declaration
(Part 1 4C,
Annex 68-C)
II Schedule of all effective standards and interpretations under PFRS
(Part 1 4J)
III Map showing
relationships between and among parent, subsidiaries, an
associate,
and joint venture (Part 1 4H)
Part 2
A Financial
Assets 8
B Amounts
Receivable from Directors, Officers, Employees, Related Parties
and Principal
Stockholders (Other than Affiliates)
9
C Amounts
Receivable from Related Parties which are eliminated during the
consolidation of financial statements 10
D Intangible Assets - Other Assets 11
E Long-Term
Debt 12
F Indebtedness
to Related Parties (included in the consolidated statement of
position) 13
G Guarantees of Securities of Other Issuers 14
H Capital Stock 15
1
2 - 6
7

- 1 -
I-REMIT, INC.
SCHEDULE OF RETAINED EARNINGS
AVAILABLE FOR DIVIDEND DECLARATION
DECEMBER 31, 2011
Schedule I
Unappropriated retained
earnings, as adjusted to available for dividend
distribution, beginning
P=161,219,561
Add: Net income earned
during the year
Net income during
the year 55,506,145
Less: Unrealized foreign
exchange gains - net (except those attributable
to cash and cash
equivalents) 1,205,505
Subtotal
54,300,640
Add: Realized income categorized as unrealized in previous years 6,419,981
Net income actually earned
during the year 60,720,621
Less: Dividend declarations
during the year 55,308,800
Treasury shares
12,872,058
Subtotal
(7,460,237)
Retained earnings available for dividend distribution, ending P=153,759,324

- 2 -
I-REMIT, INC.
SCHEDULE OF ALL EFFECTIVE STANDARDS
AND INTERPRETATIONS UNDER PFRS
DECEMBER 31, 2011
Schedule II
Page 1 of 5
PFRSs
Adopted/Not adopted/
Not applicable
PFRS 1, First-time Adoption of Philippine Financial Reporting Standards Not applicable
PFRS 2, Share-based Payment Adopted PFRS 3, Business Combinations Adopted
PFRS 4, Insurance Contracts
Not applicable
PFRS 5, Non-current Assets Held for Sale and Discontinued Operati ons
Adopted
PFRS 6, Exploration for and Evaluation of Mineral Resources Not applicable
PFRS 7, Financial Instruments: Disclosures Adopted
PFRS 8, Operating Segments Adopted
PAS 1, Presentation of Financial Statements Adopted
PAS 2, Inventories Not applicable
PAS 7, Statement of Cash Flows Adopted
PAS 8, Accounting Policies, Changes in Accounting Estimates and Errors Adopted
PAS 10, Events after the Reporting Period
Adopted
PAS 11, Construction Contracts Not applicable
PAS 12, Income Taxes Adopted PAS 16, Property, Plant and Equipment Adopted
PAS 17, Leases Adopted
PAS 18, Revenue Adopted
PAS 19, Employee Benefits
PAS 20, Accounting for Government Grants and Disclosure of Government
Adopted
Assistance
Not applicable
PAS 21, The Effects of Changes in Foreign Exchange Rates Adopted
PAS 23, Borrowing Costs
Adopted
PAS 24, Related Party Disclosures Adopted
PAS 26, Accounting and Reporting by Retirement Benefit Plans Not applicable
PAS 27, Consolid ated and Separate Financial Statements Adopted
PAS 28, Investments in Associates
Adopted
PAS 29, Financial Reporting in Hyperinflationary Economies Not applicable
PAS 31, Interests in Joint Ventures Not applicable
PAS 32, Financial Instruments: Presentation Adopted
PAS 33, Earnings per Share Adopted

- 3 -
Schedule II
Page 2 of 5
PFRSs
Adopted/Not adopted/
Not applicable
PAS 34, Interim Financial
Reporting Adopted
PAS 36, Impairment of Assets Adopted
PAS 37, Provisions, Contingent Liabilities and Contingent Assets Adopted
PAS 38, Intangible Assets Adopted
PAS 39, Financial Instruments: Recognition and Measurement Adopted
PAS 40, Investment Property Not applicable
PAS 41, Agriculture
Philippine Interpretation
IFRIC–1, Changes in Existing Decommissioning,
Not applicable
Restoration and Similar Liabilities Philippine Interpretation
IFRIC–2, Members' Shares in Co-operative
Not
Applicable
Entities and Similar Instruments
Philippine Interpretation IFRIC–4, Determining whether an Arrangement
Not Applicable
contains a Lease Philippine Interpretation
IFRIC–5, Rights to Interests arising from
Not Applicable
Decommissioning, Restoration and
Environmental Rehabilitation Funds
Philippine Interpretation IFRIC–6, Liabilities arising from Participating in
Not Applicable
a Specific Market - Waste Electrical and Electronic Equipment
Philippine Interpretation
IFRIC–7, Applying the Restatement Approach
Not Applicable
under PAS 29, Financial
Reporting in Hyperinflationary Economies Not Applicable
Philippine Interpretation IFRIC–9, Reassessment of Embedded Derivatives
Philippine Interpretation IFRIC–10, Interim Financial Reporting and
Not Adopted
Impairment Adopted
Philippine Interpretation IFRIC–12, Service Concession Arrangements Not Applicable
Philippine Interpretation IFRIC–13, Customer Loyalty Programmes
Philippine Interpretation
IFRIC–14, PAS 19 - The Limit on a Defined
Not applicable
Benef it Asse t, Minimum Funding Requirements and their Interaction
Philippine Interpretation IFRIC–16, Hedges of a Net Investment in a
Adopted
Forei gn Oper ation
Philippine Interpretation IFRIC–17, Distributions of Non-cash Assets to
Not Applicable
Owners Not applicable
Philippine Interpretation IFRIC–18, Transfers of Assets from Customers
Philippine Interpretation IFRIC–19, Extinguishing Financia l Liabilities
Not Applicable
with Equity Instruments Not Applicable Philippine Interpretation SIC–7, Introduction of the Euro Philippine Interpretation SIC–10, Government Assistance - No
Specific
Not applicable Relation t o Operating Activities Not applicable Philippine Interpretation SIC–12, Consolida tion - Special Purpose Entities Philippine Interpretation SIC–13, Jointly Controlled Entities - Non-
Not Applicable Moneta ry Contributions by Venturers Not Applicable
Philippine Interpretation SIC–15, Operating Leases – Incentives
Philippine Interpretation
SIC–21, Income Taxes - Recovery of Revalued
Not Applicable
Non-Depreciable Assets
Not Applicable

- 4 -
Schedule II
Page 3 of 5
Philippine Interpretation
SIC–25, Income Taxes - Changes in the Tax Status
of an Entity or its Shareholders
Not Applicable
Philippine Interpretation
SIC–27, Evaluating the Substance of Transactions
Involving the Legal Form
of a Lease Not Applicable
Philippine Interpretation
SIC–29, Service Concession Arrangements:
Disclosures Not Applicable
Philippine Interpretation SIC–31, Revenue - Barter Transactions Involving
Advertising Services Not Applicable
Philippine Interpretation SIC–32, Intangible Assets - Web Site Costs Not applicable
PIC Q&A No. 2006-01:
PAS 18, Appendix, paragraph 9 - Revenue
recognition for sales of property units under pre-completion
contracts
Not Applicable
PIC Q&A No. 2006-02: PAS 27.10(d) - Clarification
of criteria for
exempti on from presenting consolidated financial statements Not Applicable
PIC Q&A No. 2007-03:
PAS 40.27 - Valuation of bank real and other
properties acquired
(ROPA) Not Applicable
PIC Q&A No. 2008-01
(Revised): PAS 19.78 - Rate used in discounting
post-employment
benefit obligations Not Applicable
PIC Q&A No. 2008-02:
PAS 20.43 - Accounting for government loans
with low interest
rates under the amendments to PAS 20 Not Applicable
PIC Q&A No. 2009-01:
Framework.23 and PAS 1.23 - Financial
statements prepared on a basis other than going concern
Not Applicable
PIC Q&A No. 2010-01:
PAS 39.AG71-72 - Rate used in determining the
fa ir valu e of government
securities in the Philippines Not Applicable
PIC Q&A No. 2010-02:
PAS 1R.16 - Basis of preparation of financial
statements Adopted
PIC Q&A No. 2011-01:
PAS 1.10(f) - Requirements for a Third Statement
of Financial Position Not Applicable

- 5 -
Schedule II
Page 4 of 5
Important: If an entit y has early adopted any of the following pronouncements, please take note of
the: (1) additional disclosures the entity has to make for the early adoption of the said
pronouncement s and (2) the existing pronouncements
that the entity may have to mark as “Not
applicable”:
Applicable to annual Early
Pronouncemen ts issued
but period beginning on application
not yet effective
Amendments to PFRS 7:
or after
allowed Remarks
Disclosures-Transfers of
Financial
To be adopted
Asse ts
July 1, 2011 Yes when effective
Amendments to PFRS 7:
Disclosures-Offsetting Financial
Assets and Financial Liabilities
January 1, 2013 Not mentioned
To be adopted
when effective
PFRS 9, Financial Instruments January 1, 2015 Yes Adopted
PFRS 10, Consolidated Financial
Statements
January 1, 2013 Yes
To be adopted
when effective
PFRS 11, Joint Arrangements
January 1, 2013 Yes
To be adopted
when effective
PFRS 12, Disclosure of Interests
in
Other Entities
January 1, 2013 Yes
To be adopted
when effective
PFRS 13, Fair Value Measurement
January 1, 2013 Yes
To be adopted
when effective
Amendments to PAS 1: Presentation
To be adopted
of Items of Other Comprehensive
Income
July 1, 2012 Yes when effective
Amendments to PAS 12-Deferred
Tax: Recovery of Underlying
Assets
January 1, 2012 Yes
To be adopted
when effective
PAS 19, Employee Benefits
(Revised)
January 1, 2013 Yes
To be adopted
when effective
PAS 27, Separate Financial
Statements
January 1, 2013 Yes
To be adopted
when effective
PA S 28, Investments in Associates
and Joint Ventures
January 1, 2013 Yes Not applicable
Amendments to PAS 32, Offsetting
Financial Assets and Financial
Liabilities
January 1, 2014 Yes
To be adopted
when effective
Philippine Interpretation IFRIC-15,
Agreements for the Construction
of
Real Estate
Philippine Interpretation IFRIC-20,
Deferred by SEC and
FRSC
No
To be adopted
when effective
Strippin g Costs in the Production Phase of a Surface Mine PIC Q&A No. 2011-02: PFRS
3.2 -
January 1, 2013 Yes Not applicable
Common Control Business
Combinations
January 1, 2012 Yes Not applicable

- 6 -
Schedule II
Page 5 of 5
Applicable to annual Early
Pronouncements issued but period beginning on application
not yet effective
or after allowed Remarks
PIC Q&A No. 2011-03: Accounting
for Inter-company Loans
January 1, 2012 Yes
To be adopted
when effective
PIC Q&A No. 2011-04: PAS
32.37-
38 - Costs of Public Offering
of
Shares
January 1, 2012 Yes
To be adopted
when effective
PIC Q&A No. 2011-05: PFRS
1.D1-
D8 - Fair Value or Revaluation
as
Deemed Cost
January 25, 2012 Not mentioned
To be adopted
when effective

- 7 -
I-REMIT, INC. AND SUBSIDIARIES
MAP SHOWING RELATIONSHIPS BETWEEN AND AMONG PARENT,
SUBSIDIARIES, AN ASSOCIATE, AND JOINT VENTURE
Schedule III

Name of issuing entity and
association of each issue
- 8 -
I-Remit, Inc. and Subsidiaries
Schedule A – Financial Assets
December 31, 2011
Number of shares or
principal amount of bonds
or notes
Amount shown on the
balance sheet
Income accrued
Debt securities
Republic of Venezuela
$782,748 P=35,313,120 P=3,563,146
Citic Pacific Ltd.
402,000 16,834,560 996,362
FTP Finance Ltd 300,650 13,842,918 899,532
Royal Capi tal BV
301,775 13,388,736 726,518
Claudius Limited Notes
208,000 8,753,971 732,756
Various private corporations
599,579 24,491,502 1,940,997
Equity securities (shares)
P=112,624,807 P=8,859,311
SHS General Motors 5,400 4,798,639 P=–
Apple Inc
200
3,551,040 –
HSBC Holdings
10,000
3,326,316 –
Global X Silver ( SIL)
1,000
925,462 –
P=12,601,457 P=–
P=125,226,264 P=8,859,311

Name of Debtor
- 9 -
I-Remit, Inc. and Subsidiaries
Schedule B - Amounts Receivable from Directors, Officers, Employees, Related Parties and
Principal Stockholders (Other than Related Parties)
December 31, 2011
Balance at
beginning of
period Additions
Amounts
Collected
Amounts
Written-off Current
Non-
Current
Balance at end
of period
Annie Angeles P=338,944 P=– P= 203,242
P=– P= 135,702 P= – P=135,702
Bansan Choa 281,891 – –
– 281,891 – 281,891
Bernadette Tiu 7,864,414 11, 126 239,287 – 7,
636,253 – 7,636,253
Catherine Chan – 27, 493 13,747 – 13,746 – 13,746
Ian Chryzl Gonzales – 2,999
– –
2,999 – 2,999
Dina Simbulan 56,124 – – – 56,124 – 56,124
Fatima Ramos – 2,800 2,800 –
0 –
0
Gabriel de Guzman – 864 864 –
0 –
0
Joanna Badilla – 2,800 2,800 –
0 –
0
Jonathan Bunag – 64,143 50,000 – 14,143 – 14,143
Joselyn Bagalan – 2, 577
–
–
2,577 – 2,577
Juan Miguel Guerero – 10,000 10,000 –
0 –
0
Junell Dasun – 16,086 – – 16,086 – 16,086
Justine Castellon 272,310 – – – 272,310 – 272,310
Karen Remo – 955
955 –
0 –
0
Ma Cristina Castellejo – 503, 405
43,077
– 460,328 – 460,328
Michael Velasco –
1, 841
1,841
–
0 – 0
Paul Art Vidallo – 1,926
1,926 –
0 – 0
Paul Erick Villaluz – 1,518
– –
1,518 – 1,518
Ronald Santos 222,362 – – – 22 2,362 – 222,362
P=9,036,045 P=650, 533
P=570,539 P= – P= 9,116,039 P=– P=9,116,039

Name of Debtor
- 10 -
I-Remit, Inc. and Subsidiaries Schedule C - Amounts Receivable from Related Parties which are eliminated
during the consolidation of financial statements)
December 31, 2011
Balance at
beginning of
period Additions
Amounts
Collected
Amounts
Written-off Current
Non-
Current
Balance at end
of period
Lucky Star Management Ltd. P=4,454,735 P=15,392,560 P=4,633,819 P= – P=1 5,213, 476
P=– P=15,213,
476
Iremit Global Remittance Ltd 5,099,127 26,168,530 10,846,363 – 20,421,294 – 20,421,
294
Worldwide Exchange Pty. Ltd 94,113 25,973,348 1,893,496 – 24,173 ,965
– 24,173,
965
International Remittance Canada Ltd. 71,646 43,316,090 1,096,561 – 42,291,175 – 42,291,
175
Iremit New Zealand Limited 9,285,149 11,594,400 3,824 – 20,875,725 – 20,875,
725
Power Star Group Asia Ltd. – 33,166 –
–
33,166 – 33,
166
K.K. Iremit Japan – 5,611,520 –
– 5,611,520 – 5,611,
520
Iremit Europe Remittance Consulting AG 54,579,655 34,162,850 25,931,196 – 62,811,309 – 62,811,
309
Iremit Australia Pyt. Ltd – 697,587 323, 847
–
373 ,740
– 373,
740
P=73,584,425 P=162,950,051 P=44,729,106 P= – P=191,805,370 P=– P=191,805,
370

- 11 -
I-Remit, Inc. and Subsidiaries
Schedule D - Intangible Assets - Other Assets
December 31, 2011
Description (i) Beginning
Balance
Additions at Cost
(ii)
Charged to cost
and expenses
Charged to other
accounts
Other changes
additions
(iii)
(deductions)
Ending Balance
Goodwill 93,092,118 – – – (436,778) 92,655,340
Software 2,081, 747 2,034,070 (2, 4 56,524)
– (208,349) 1,450,944
_______________________________________________ (I)
The information required
shall be grouped into ( a) intangibles shown under
the caption
intangible
assets and (b) de ferrals shown under the
caption Other Assets in the related
balance sheet.
Show by major
classifications.
(II)
For each change representing
other
than an acquisition,
clearly
state the na ture of the
change and the other accounts affected.
Describe
cost of
additions representing other
than cash expenditures.
(III)
If provision for amortization
of int
angible assets is credited in the books
di rectly to the intangible
asset account,
the amounts
shall
be stated
with explanations, including
the accounts
charged.
Clearly state
the nature
of deductions
if these
represent anything
other
than regular
amortization.

Title of issue and
type of obligation (i)
Amount authorized
by indenture
- 12 -
I-Remit, Inc. and Subsidiaries
Schedule E - Long-Term Debt
December 31, 2011
Amount shown under caption “Current
portion of long-term debt’ in related
balance sheet (ii)
None to Report
Amount shown under caption
“Long-Term Debt” in related
balance sheet (iii)
Interest
Rate
%
Maturity
Date

- 13 -
I-Remit, Inc. and Subsidiaries
Schedule F - Indebtedness to Related Parties
(included in the consolidated financial statement of position)
December 31, 2011
Name of Related Parties (i) Balance at beginning of period Balance at end of period (ii)
__________________________________________________
None to Report
(i)
The related parties named shall be grouped as in Schedule
D. The
informatio
n called shall be stated for any persons whose
investments
shown separately in such related schedule.
(ii)
For each affiliate named in the first column, explain
in a note hereto the nature
and purpose
o f any material increase during the period
that
is in excess of 10 percent of the related b alance at either the beginning
or end
of the period.

Name of issuing entity of
securities guaranteed by
the company for which
this statement is filed
Title of issue of each class
of securitie s guaranteed
_____________________________________________________ - 14 -
I-Remit, Inc. and Subsidiaries
Schedule G - Guarantees of Securities of Other Issuers
December 31, 2011
Total amount of
guaranteed and
outstanding (i)
None
to Report
Amount owned by person
of which statement is Nature of guarantee (ii)
filed
(i) Indicate in a note
any
significant changes since
the date of
the last balance sheet file. If this schedule
is filed in support
of consolidated
financial statements,
there shall be set forth guarantees by any person
included
in the consolidation except such guarantees
of securities
which
are inclu ded in the consolidated
balance sheet.
(ii) There m ust be a brief
statement of the nature
of the guarantee,
such
as “Guarantee
of principal and interest”, “Guarantee
of Interest”,
or
“Guarantee of Divid ends”. If the guarantee is of interest, dividends,
or both,
state the annual aggregate
amount of interest
or dividends
so
guaranteed.

Title of Issue (i)
Number of
shares
authorized Common stock
- P= 1 par value 1,000,000,000
_________________________________________________ - 15 -
I-Remit, Inc. and Subsidiaries
Schedule H - Capital Stock
December 31, 2011
Number of
shares issued
and
outstanding as
shown under
the related
balance sheet
caption
602,852,800
Number of
shares reserved
for options,
warrants,
conversion
and
other
rights
Number of
shares held by
related parties
(ii)
– 443,819,584
Directors,
officers and Others (iii)
employees
(i)
Include in this col umn each type of issue authorized
(ii)
Related parties referred to include persons
for which
separate financial
statements
are filed and those
included
in the consolidated financial
statements, other than the issuer of the particular security.
(iii)
Indi cate in a note any significant changes
since
the date of the
last balance
sheet file
110
159,033,106

P
I - R E M I T , I N C .
(Company’s Full Name)
A 2 0 0 1 0 1 6 3 1
SEC Registration Number
2 6 / F D i s c o v e r y C e n t r e , 2 5 A D B A v e
n u e , O r t i g a s C e n t e r , P a s i g C i t y
(Business Address: No. Street City/Town/Province)
Mr. Bansan C. Choa 706-9999
(Contact Person) (Company Telephone Number)
1 2 3 1 A A F S
Month Day (Form Type) Month Day
(Fiscal Year) (Annual Meeting)
(Secondary License Type, If Applicable)
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document ID Cashier
S T A M P S
COVER SHEET
Remarks: Please use BLACK ink for scanning purposes.
*SGVMC116501*

I-REMIT, INC.
NOTES TO PARENT COMPANY FINANCIAL STATEMENTS
1. Corporate Information
I-Remit, Inc. (the Parent Company) was incorporated in the Philippines and was registered with
the Securities and Exchange Commission (SEC) on March 5, 2001 and started commercial
operations on November 11, 2001.
The Parent Company, which is domiciled in the Philippines, has its registered office and principal
place of business at the 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City. The
Parent Company’s common shares were listed with the Philippine Stock Exchange (PSE) on
October 17, 2007.
The Parent Company and its subsidiaries (collectively referred to as “the Group”), except Power
Star Asia Group Limited (PSAGL), are primarily engaged in the business of fund transfer and
remittance services of any form or kind of currencies or monies, either by electronic, telegraphic,
wire or any other mode of transfer; delivery of such funds or monies, both in the domestic and
international market, by providing either courier or freight forwarding services; and conduct of
foreign exchange transactions as may be allowed by law and other allied activities relative thereto.
PSAGL, on the other hand, provides financial advisory and other services.
The Group is 28.91% owned by STAR Equities, Inc., 19.34% owned by JTKC Equities, Inc.,
22.27% owned by Surewell Equities, Inc., 3.10% owned by JPSA Global Services Co., and the
rest by the public. The Parent Company is the ultimate parent company of the Group.
The Parent Company’s subsidiaries and associates are as follows:
Subsidiaries:
International Remittance
Country of
Incorporation
Functional
Currency
Effective Percentage of Ownership
December 31
2011 2010 2009
(Canada) Ltd. (IRCL) Canada
Canadian
Dollar (CAD) 100.00 100.00 100.00
Lucky Star Management
Hong Kong
Limited (LSML) Hong Kong Dollar (HKD) 100.00 100.00 100.00
IRemit Global Remittance United Great Britain
Limited (IGRL)
Kingdom Pound (GBP) 100.00 100.00 100.00
I-Remit Australia Pty Ltd
Australian
(IAPL) Australia
Dollar (AUD) 100.00 100.00 100.00
Worldwide Exchange Pty
Australian
Ltd (WEPL)*
IREMIT Remittance
Consulting GmbH
Australia
Dollar (AUD) 100.00 65.00 65.00
(IRCGmbH)** Austria Euro (EUR) 100.00 74.90 74.90
I-Remit New Zealand
New Zealand
Limited (INZL) New Zealand Dollar (NZD)
Hong Kong
100.00 100.00 100.00
PSAGL Hong Kong Dollar (HKD)
Japanese
100.00 100.00 100.00
K.K. Iremit Japan (KKIJ)
(Forward)
Japan
Yen (JPY) 100.00 – –

Associates:
IRemit Singapore Pte Ltd
Country of
Incorporation
- 2 -
Functional
Currency
Effective Percentage of Ownership
December 31
2011 2010 2009
(ISPL) Singapore
Singapore
Dollar (SGD) 49.00 49.00
Hwa Kung Hong & Co.,
New Taiwan
Ltd.(HKHCL) Taiwan
Dollar (NTD) 49.00 49.00
* Consists of direct voting interest of 70.00% and indirect voting interest through IAPL of 30.00%
**Formerly IREMIT EUROPE Remittance Consulting AG (IERCAG)
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying financial statements of the Parent Company have been prepared on a historical
cost basis. The Parent Company’s financial statements are presented in Philippine peso, the
Parent Company’s functional and presentation currency, and all values are rounded to the nearest
peso except when otherwise indicated.
Statement of Compliance
The accompanying financial statements of the Parent Company have been prepared in compliance
with Philippine Financial Reporting Standards (PFRS).
Changes in Accounting Policies
The accounting policies adopted in the preparation of the parent company financial statements are
consistent with those of the previous financial year except for the adoption of the following new
and amended PFRS, Philippine Accounting Standards (PAS) and Philippine Interpretations which
became effective on January 1, 2011.
• PAS 24 Amendment, Related Party Disclosures
• PAS 32 Amendment, Financial Instruments: Presentation - Classification of Rights Issues
• Philippine Interpretation International Financial Reporting Interpretations Committee (IFRIC)
14 Amendment, Prepayments of a Minimum Funding Requirement
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
The adoption of new standards, amendments and interpretations above did not have impact to the
Parent Company except for the adoption of PAS 24 Amendment, Related Party Transactions.
PAS 24 Amendment, Related Party Transactions
PAS 24 clarifies the definitions of a related party. The new definitions emphasize a symmetrical
view of related party relationships and clarify the circumstances in which persons and key
management personnel affect related party relationships of an entity. In addition, the amendment
introduces an exemption from the general related party disclosure requirements for transactions
with government and entities that are controlled, jointly controlled or significantly influenced by
the same government as the reporting entity. The amendment only affects the disclosures and has
no impact on the Parent Company’s financial position or performance.
Improvements to PFRS 2010
The omnibus amendments to PFRSs were issued in 2010 primarily with a view to remove
inconsistencies and clarify wording. There are separate transitional provisions for each standard.
49.00
49.00
*SGVMC116501*

- 3 -
The adoption of the following amendment resulted in changes to accounting policies but did not
have any impact on the financial position or performance of the Parent Company.
PFRS 7, Financial Instruments - Disclosures
The amendment was intended to simplify the disclosures provided by reducing the volume of
disclosures around collateral held and improving disclosures by requiring qualitative information
to put the quantitative information in context. The Parent Company reflects the revised disclosure
requirements in Note 4.
PAS 1, Presentation of Financial Statements: The amendment clarifies that an entity may present
an analysis of each component of other comprehensive income maybe either in the statement of
changes in equity or in the notes to the financial statements.
Other amendments resulting from the 2010 Improvements to PFRSs to the following standards did
not have any impact on the accounting policies, financial position or performance of the Parent
Company:
• PFRS 3, Business Combinations (Contingent consideration arising from business combination
prior to adoption of PFRS 3 (as revised in 2008))
• PFRS 3, Business Combinations (Un-replaced and voluntarily replaced share-based payment
awards)
• PAS 27, Consolidated and Separate Financial Statements
• PAS 34, Interim Financial Reporting
The following interpretation and amendments to interpretations did not have any impact on the
accounting policies, financial position or performance of the Parent Company:
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes (determining the fair value
of award credits)
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
Foreign Currency Transactions and Translations
The functional and presentation currency of the Parent Company is the Philippine peso.
Transactions denominated in foreign currencies are recorded in Philippine peso using the
exchange rate at the date of the transaction. For financial reporting purposes, foreign currencydenominated
accounts are translated into their equivalents in Philippine pesos based on the
Philippine Dealing System (PDS) closing rate prevailing at the balance sheet date (for assets and
liabilities). Foreign exchange differences arising from revaluation and translation of foreign
currency-denominated monetary assets and liabilities are credited to or charged against operations
in the year in which the rates change. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rates as at the dates of the initial
transactions.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, with original maturities of
three months or less from the dates of placement and that are subject to an insignificant risk of
changes in fair value.
*SGVMC116501*

- 4 -
Financial Instruments
Initial Recognition
Financial instruments within the scope of PAS 39 are classified as financial assets at fair value
through profit or loss (FVPL), loans and receivables, held-to-maturity (HTM) investments,
available-for-sale (AFS) investments, financial liabilities at FVPL and other financial liabilities.
The classification of financial instruments at initial recognition depends on the purpose for which
the financial instruments were acquired and their characteristics. All financial assets and financial
liabilities are recognized initially at fair value plus any directly attributable cost of acquisition or
issue, except in the case of financial assets and financial liabilities at FVPL. Management
determines the classification of its instruments at initial recognition and, where allowed and
appropriate, re-evaluates such designation at every balance sheet date.
Financial instruments are recognized in the consolidated balance sheet when the Parent Company
becomes a party to the contractual provisions of the instrument. In the case of regular way of
purchase or sale of financial assets, recognition and derecognition, as applicable, are done using
settlement date accounting. Settlement date accounting refers to (a) recognition of an asset on the
day it is received by the Parent Company, and (b) the derecognition of an asset and recognition of
any gain or loss on disposal on the day that it is delivered by the Parent Company. Receivables,
beneficiaries and other payables, and interest-bearing loans are recognized when cash is received
by the Parent Company or advanced to the borrowers/beneficiaries.
The subsequent measurement bases for financial instruments depend on its classification.
As of December 31, 2011 and 2010, the Parent Company has no financial assets and financial
liabilities at FVPL, AFS investments and HTM investments.
Subsequent Measurement
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, receivables are carried at amortized
cost using the effective interest method less any allowance for credit losses. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the effective interest rate (EIR). Gains and losses are recognized in the
parent company statement of income when the receivables are derecognized or impaired, as well
as through the amortization process. Receivables are classified as current assets when the Parent
Company expects to realize or collect the asset within twelve months from the balance sheet date.
Otherwise, these are classified as non-current assets.
Classified under this category are the Parent Company’s ‘Cash and cash equivalents’, ‘Accounts
receivable’, ‘Other receivables’ and refundable deposits included under ‘Other noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability, where the substance of the contractual arrangement results in
the Parent Company having an obligation either to deliver cash or another financial asset to the
holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another
financial asset for a fixed number of its own equity shares. These include liabilities arising from
operations or borrowings. The components of issued financial instruments that contain both
liability and equity elements are accounted for separately, with the equity component being
assigned the residual amount after deducting from the instrument as a whole the amount separately
determined as the fair value of the liability component on the date of issue.
*SGVMC116501*

- 5 -
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the EIR method.
Other financial liabilities are classified as current liabilities when the Parent Company expects to
settle the liability within twelve months from the balance sheet date. Otherwise, these are
classified as non-current liabilities.
Other financial liabilities include ‘Beneficiaries and other payables’ and ‘Interest-bearing loans’.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date is based
on their quoted market prices or dealer price quotations (bid price for long positions and ask price
for short positions), without any deduction for transaction costs. When current bid and ask prices
are not available, the price of the most recent transaction provides evidence of the current fair
value as long as there has not been a significant change in economic circumstances since the time
of the transaction.
For all other financial instruments not listed in an active market, the fair value is determined by
using appropriate valuation methodologies. Valuation methodologies include net present value
techniques, comparison to similar instruments for which market observable prices exist, option
pricing models, and other relevant valuation models.
Day 1 difference
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Parent Company recognizes the
difference between the transaction price and fair value (a Day 1 difference) in the parent company
statement of income unless it qualifies for recognition as some other type of asset. In cases where
use is made of data which is not observable, the difference between the transaction price and
model value is only recognized in the parent company statement of income when the inputs
become observable or when the instrument is derecognized. For each transaction, the Parent
Company determines the appropriate method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Parent Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third part under a ‘pass through’
arrangement; or
• the Parent Company has transferred its rights to receive cash flows from the asset and either
(a) has transferred substantially all the risks and rewards of the asset, or (b) has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
When the Parent Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, and has neither transferred nor retained substantially all
the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the
extent of the Parent Company’s continuing involvement in the asset. Continuing involvement that
*SGVMC116501*

- 6 -
takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Parent Company
could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amount of a
financial liability (or part of a financial liability) extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or liabilities assumed, shall be
recognized in the parent company statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet
if, and only if, there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously.
Impairment of Financial Assets
The Parent Company assesses at each balance sheet date, whether there is an objective evidence
that a financial asset or group of financial assets is impaired. A financial asset or a group of
financial assets is deemed to be impaired if, and only if, there is an objective evidence of
impairment as a result of one or more events that has occurred after the initial recognition of the
asset (an incurred ‘loss event’) and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset or the group of financial assets that can be reliably
estimated. Evidence of impairment may include indications that the borrower or a group of
borrowers is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial
reorganization, and where there are observable data that indicates that there is a measurable
decrease in the estimated future cash flows, such as changes in arrears or economic conditions that
correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Parent Company first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through the use of an allowance account and the amount of
loss is charged to the parent company statement of income. Interest income continues to be
recognized based on the original EIR of the asset. Receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized. If subsequently, the amount of the estimated impairment loss
decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
*SGVMC116501*

- 7 -
If the Parent Company determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses for impairment.
Those characteristics are relevant to the estimation of future cash flows for groups of such assets
by being indicative of the debtors’ ability to pay all amounts due according to the contractual
terms of the assets being evaluated. Assets that are individually assessed for impairment and for
which an impairment loss is, or continues to be, recognized are not included in a collective
assessment for impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
Estimates of changes in future cash flows reflect, and are directionally consistent with changes in
related observable data from period to period (such as changes in payment status, or other factors
that are indicative of incurred losses in the group and their magnitude). The methodology and
assumptions used for estimating future cash flows are reviewed regularly by the Parent Company
to reduce any differences between loss estimates and actual loss experience.
Investments in Subsidiaries and Associates
Subsidiaries
Investments in subsidiaries in the parent company financial statements are accounted for at cost.
Subsidiaries of the Parent Company are shown in Note 1.
Associates
The Parent Company’s investments in its associates are accounted for at cost. An associate is an
entity in which the Parent Company has significant influence. The Parent Company's investments
in associates include its 49.00% interest in ISPL and HKHCL, entities based in Singapore and
Taiwan, respectively.
Property and Equipment
Property and equipment is stated at cost less accumulated depreciation and amortization and any
impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the property and equipment to its working condition and location for
its intended use.
Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance are normally charged to operations in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
*SGVMC116501*

- 8 -
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or cash-generating units (CGU) are written down to their recoverable amount (see policy on
Impairment of Nonfinancial Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the parent company statement of income in the year the asset is
derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over its estimated useful life of three (3) years.
The asset’s amortization period and amortization method are reviewed at least at each balance
sheet date. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by changing the amortization period or
method, as appropriate, and treated as changes in accounting estimates.
Impairment of Nonfinancial assets
Investments in subsidiaries and associates
The Parent Company assesses at each balance sheet date whether there is any indication that its
investments in subsidiaries and associates may be impaired. If any indication exists, the Parent
Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or CGU’s fair value less cost to sell and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
Property and equipment and software costs
At each balance sheet date, the Parent Company assesses whether there is any indication that its
property and equipment and software costs may be impaired. When an indicator of impairment
exists or when an annual impairment testing for an asset is required, the Parent Company makes a
formal estimate of recoverable amount. Recoverable amount is the higher of an asset’s (or
CGU’s) fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other
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assets or groups of assets, in which case the recoverable amount is assessed as part of the CGU to
which it belongs. Where the carrying amount of an asset (or CGU) exceeds its recoverable
amount, the asset (or CGU) is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset (or CGU). In determining fair value less cost to sell, recent
market transactions are taken into account, if available. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by available fair
value indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the parent
company statement of income unless the asset is carried at a revalued amount, in which case the
reversal is treated as a revaluation increase. After such a reversal, the depreciation and
amortization expense is adjusted in future years to allocate the asset’s revised carrying amount,
less any residual value, on a systematic basis over its remaining life.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Parent Company and the revenue can be reliably measured. The Parent Company assesses its
revenue arrangements against specific criteria in order to determine if it is acting as principal or
agent. The following specific recognition criteria must also be met before revenue is recognized:
Delivery fees
Revenue from delivery fees is recognized as the service is rendered net of amounts payable to
principals (i.e., partner remittance companies) for fees billed on their behalf.
Service revenue
Service revenue is recognized when the service is rendered.
Interest income
Interest on financial instruments measured at amortized cost is recognized based on the EIR
method.
The EIR method is a method of calculating the amortized cost of a financial asset or a financial
liability and allocating the interest income or interest expense over the relevant period. The EIR is
the rate that exactly discounts estimated future cash payments or receipts throughout the expected
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life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of
the financial asset or financial liability. When calculating the EIR, the Parent Company estimates
cash flows from the financial instrument (for example, prepayment options) but does not consider
future credit losses. The calculation includes all fees and points paid or received between parties
to the contract that are an integral part of the EIR, transaction costs and all other premiums or
discounts.
Once a financial asset or a group of financial assets has been written down as a result of an
impairment loss, interest income is recognized thereafter using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss.
Dividends
Dividend income is recognized when the Parent Company’s right to receive payment is
established.
Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Costs and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Parent Company. The following specific recognition criteria
must also be met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the parent company statement of income.
Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the parent company balance sheet in respect of defined benefit
retirement plan is the present value of the defined benefit obligation at the balance sheet date less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses
and past service costs. The defined benefit obligation is calculated annually by an independent
actuary using the projected unit credit method. The present value of the defined benefit obligation
is determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
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actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
Past-service costs, if any, are recognized immediately in income, unless the changes to the
retirement plan are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis
over the vesting period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation
less past service costs not yet recognized and less the fair value of plan assets out of which the
obligations are to be settled directly. The value of any asset is restricted to the sum of any past
service cost not yet recognized and the present value of any economic benefits available in the
form of refunds from the plan or reductions in the future contributions to the plan.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at the inception date of whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) there is a substantial change to the asset.
When a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c), or (d) and at the date
of renewal or extension for scenario (b).
Parent Company as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as an operating lease. Operating lease payments are recognized as an expense in the
parent company statement of income on a straight-line basis over the lease term.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 17) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009. The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the statement of income over the
lock-up period of two (2) years. The cumulative expense recognized for equity-settled
transactions at each balance sheet date until the vesting date reflects the extent to which the
vesting period has expired and the Parent Company’s best estimate of the number of equity
instruments that will ultimately vest. The expense in the statement of income for the period
represents the movement in cumulative expense recognized at the beginning and end of the period.
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Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted at the balance sheet
date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to issuance of equity, such as
underwriting, accounting and legal fees, printing costs and taxes are chargeable to ‘Capital paid-in
excess of par value’. If the ‘Capital paid-in excess of par value’ is not sufficient, the excess is
charged to profit or loss.
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A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The excess of acquisition cost over the carrying value of the noncontrolling
interest (formerly known as minority interest) is charged against the ‘Capital paid-in excess of par
value’.
When the Parent Company issues more than one class of stock, a separate account is maintained
for each class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Parent Company less
dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost and
deducted from equity as ‘Treasury stock’. No gain or loss is recognized in the parent company
statement of income on the purchase, sale, issue or cancellation of the Parent Company’s own
equity instruments. Any difference between the carrying amount and the consideration is
recognized in ‘Capital paid-in excess of par value’.
Dividends
Cash dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the Board of Directors (BOD) of the Parent Company. Stock dividends
are deducted from equity when declared and approved by the BOD and stockholders of the Parent
Company.
Related party relationships and transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
Provisions
Provisions are recognized when the Parent Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of assets embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Parent Company expects a provision to be reimbursed,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the parent company statement of
income, net of any reimbursement.
Contingencies
Contingent liabilities are not recognized in the parent company financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the parent company financial statements but
disclosed when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Parent Company’s financial
position at the balance sheet date (adjusting events) are reflected in the parent company financial
statements. Post year-end events that are not adjusting events are disclosed in the notes to the
parent company financial statements when material.
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Standards Issued but not yet Effective
The Parent Company will adopt the following standards and interpretations enumerated below
when these become effective. Except as otherwise indicated, the Parent Company does not expect
the adoption of these new and amended PFRS and Philippine Interpretations to have significant
impact on its financial position and performance.
Effective in 2012
PFRS 7 Amendments, Financial Instruments: Disclosures - Disclosures - Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
PAS 12 Amendment, Income Taxes - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will normally be through sale.
Effective in 2013
PAS 1, Financial Statement Presentation - Presentation of Items of Other Comprehensive Income
(OCI)
The amendment effective for annual periods beginning or after July 1, 2012, changes the grouping
of items presented in OCI. Items that could be reclassified (or “recycled”) to profit or loss at a
future point in time would be presented separately from items that will never be reclassified.
PAS 27 Revised, Separate Financial Statements
The revised PAS 27 is effective for annual periods beginning on or after January 1, 2013. It
establishes that as a consequence of the new PFRS 10, Consolidated Financial Statement and
PFRS 12, Disclosure of Interests in Other Entities, what remains of PAS 27 is limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial
statements.
PFRS 7 Revised, Financial instruments: Disclosures - Offsetting Financial Assets and Financial
Liabilities
The revised PFRS 7 effective for annual periods beginning on or after January 1, 2013, requires an
entity to disclose information about rights of set-off and related arrangements (such as collateral
agreements). The new disclosures are required for all recognized financial instruments that are set
off in accordance with PAS 32. These disclosures also apply to recognized financial instruments
that are subject to an enforceable master netting arrangement or ‘similar agreement’, irrespective
of whether they are set-off in accordance with PAS 32.
PFRS 10, Consolidated Financial Statements
The standard, effective for annual periods beginning on or after January 1, 2013, establishes
principles for the presentation and preparation of consolidated financial statements when an entity
controls one or more other entities. The Parent Company will assess the impact of the amendment
on its financial position and performance when they become effective.
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PFRS 11, Joint Arrangements
PFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights
and obligations of the arrangement, rather than its legal form. The standard addresses
inconsistencies in the reporting of joint arrangements by requiring a single method to account for
interests in jointly controlled entities. The standard is effective for annual periods beginning on or
after January 1, 2013.
PFRS 12, Disclosure of Interests in Other Entities
PFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of
interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated
structured entities. The standard is effective for annual periods beginning on or after January 1,
2013. The Parent Company will assess the impact of the amendment on its financial position and
performance when they become effective.
PFRS 13, Fair Value Measurement
This standard represents the completion of the joint project to establish a single source for the
requirements on how to measure fair value under PFRS. This standard does not change when an
entity is required to use fair value, but rather, describes how to measure fair value under PFRS,
when fair value is required or permitted to be used. This standard is effective for annual periods
beginning on or after January 1, 2013. The Parent Company will assess the impact of the
amendment on its financial position and performance when they become effective.
PAS 19 Amendments, Employee Benefits - Defined Benefit Plans
The amendments focus on the following key areas: the elimination of the option to defer the
recognition of gains and losses resulting from defined benefit plans (the corridor approach); the
elimination of options for the presentation of gains and losses relating to those plans; and the
improvement of disclosure requirements that will better show the characteristics of defined benefit
plans and the risks arising from those plans. The amendments to the recognition, presentation and
disclosure requirements will ensure that the financial statements provide investors and other users
with a clear picture of an entity’s commitments resulting from defined benefit plans. The
amendments to PAS 19 are effective for annual periods beginning on or after January 1, 2013.
The Parent Company will assess the impact of the amendment when this becomes effective.
Effective 2014
PAS 32 Amendment, Financial Instruments: Presentation - Offsetting Financial Assets and
Financial Liabilities
The amendment to PAS 32 is effective for annual periods beginning on or after January 1, 2014.
This clarifies the meaning of “currently has a legally enforceable right to set-off” and the
application of the PAS 32 offsetting criteria to settlement systems (such as central clearing house
systems) which apply gross settlement mechanisms that are not simultaneous.
Effective 2015
PFRS 9, Financial Instruments: Classification and Measurement
The standard is effective for annual periods beginning on or after January 1, 2015. It reflects the
first phase on the replacement of PAS 39, Financial Instruments: Recognition and Measurement
and applies to classification and measurement of financial assets and financial liabilities as defined
in PAS 39. The Parent Company will assess the impact of the amendment on its financial position
and performance when they become effective.
Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate
This Interpretation, effective for annual periods beginning on or after January 1, 2015, covers
accounting for revenue and associated expenses by entities that undertake the construction of real
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estate directly or through subcontractors. The Interpretation requires that revenue on construction
of real estate be recognized only upon completion, except when such contract qualifies as
construction contract to be accounted for under PAS 11, Construction Contracts, or involves
rendering of services in which case revenue is recognized based on stage of completion. Contracts
involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on
stage of completion.
3. Significant Accounting Judgments and Estimates
The preparation of the parent company financial statements in compliance with PFRS requires the
Parent Company to make judgments and estimates that affect the reported amounts of assets,
liabilities, income and expenses and disclosure of contingent assets and contingent liabilities.
Future events may occur which will cause the assumptions used in arriving at the estimates to
change. The effects of any change in estimates are reflected in the parent company financial
statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Parent
Company considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
The Parent Company determined its functional currency to be Philippine peso, being the
currency that mainly influences the Parent Company’s revenues and cost and expenses.
b. Operating leases
Parent Company as lessee
The Parent Company has entered into commercial property leases as a lessee for its office
premises. The Parent Company has determined that it has not acquired the significant risks
and rewards of ownership of the leased properties and so account for the contracts as operating
leases.
c. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The fair values of financial assets and financial liabilities of the
Parent Company are disclosed in Note 4.
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d. Contingencies
The Parent Company is currently involved in various proceedings. The estimate of the
probable costs for the resolution of these claims has been developed in consultation with
outside counsel handling the defense in these matters and is based upon an analysis of
potential results. The Parent Company currently does not believe these proceedings will have
a material effect on the Parent Company’s financial position. It is possible, however, that
future results of operations could be materially affected by changes in the estimates or in the
effectiveness of the strategies relating to these proceedings (see Note 24).
e. Determination of whether the Parent Company is acting as a principal or an agent
The Parent Company assesses its revenue arrangements against the following criteria to
determine whether it is acting as a principal or an agent:
• whether the Parent Company has primary responsibility for providing the goods and
services;
• whether the Parent Company has inventory risk;
• whether the Parent Company has discretion in establishing prices; and
• whether the Parent Company bears the credit risk.
If the Parent Company has determined it is acting as a principal, revenue is recognized on a
gross basis with the amount remitted to the other party being accounted for as part of costs and
expenses.
If the Parent Company has determined it is acting as an agent, only the net amount retained is
recognized as revenue.
The Parent Company assessed its revenue arrangements and concluded that it is acting as
principal in some arrangements and as an agent in other arrangements.
Estimates
a. Credit losses on receivables
The Parent Company reviews its receivables at each balance sheet date to assess whether an
allowance for credit losses should be recorded in the parent company balance sheet. In
particular, judgment by management is required in the estimation of the amount and timing of
future cash flows when determining the level of allowance required. Such estimates are based
on assumptions about a number of factors such as length of the Parent Company’s relationship
with counterparties (e.g., agents and couriers), current credit status, average age of accounts,
collection and historical loss experience. Actual results may differ, resulting in future changes
to the allowance.
As of December 31, 2011, accounts receivable and other receivables are carried in the parent
company balance sheet at P=1.00 billion and P=0.14 billion, respectively. As of
December 31, 2010, accounts receivable and other receivables are carried in the balance sheet
at P=1.12 billion and P=0.14 billion, respectively. The Parent Company has assessed that there
is no need to recognize impairment losses on its receivables as of December 31, 2011 and
2010.
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b. Impairment of nonfinancial assets
(i) Investments in subsidiaries and associates
The Parent Company assesses impairment on its investments in subsidiaries and associates
whenever events or changes in circumstances indicate that the carrying amount of the
assets may not be recoverable. Among others, the factors that the Parent Company
considers important, which could trigger an impairment review on its investments in
subsidiaries and associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
• significant changes with an adverse effect on the subsidiary/associate have taken place
during the period, or will take place in the near future, in the technological, market,
economic, or legal environment in which the subsidiary/associate operates.
(ii) Property and equipment and software costs
The Parent Company assesses impairment on property and equipment and software costs
whenever events or changes in circumstances indicate that the carrying amount of the
asset may not be recoverable. The factors that the Parent Company considers important,
which could trigger an impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Parent Company recognizes an impairment loss whenever the carrying amount of the
asset exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future cash
flows expected to be generated from the continued use of the asset.
As of December 31, 2011 and 2010, no impairment losses were recognized on the Parent
Company’s nonfinancial assets. The carrying values of the Parent Company’s nonfinancial
assets as of December 31 follow:
2011 2010
Investments in subsidiaries and associates (Note 10) P=295,334,077 P=245,149,252
Property and equipment - net (Note 11) 7,094,474 9,493,115
Software costs - net (Note 12) 1,396,241 1,868,072
c. Estimated useful lives of property and equipment and software costs
The Parent Company reviews the estimated useful lives of property and equipment and
software costs annually based on the expected asset utilization after considering the expected
future technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization.
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As of December 31, 2011 the carrying values of Property and equipment and Software costs
follow:
2011 2010
Property and equipment - net (Note 11) P=7,094,474 P=9,493,115
Software costs - net (Note 12) 1,396,241 1,868,072
In 2011, 2010 and 2009, the Parent Company recognized depreciation and amortization in the
statements of income amounting to P=6.54 million, P=8.06 million and P=8.61 million,
respectively.
d. Recognition of deferred tax assets
The Parent Company reviews the carrying amounts of deferred tax assets at each balance sheet
date and reduces it to the extent that it is no longer probable that sufficient taxable income will
be available to allow all or part of the deferred tax assets to be utilized. Significant judgment
is required to determine the amount of deferred tax assets that can be recognized, based upon
the likely timing and level of future taxable income together with future tax planning
strategies.
As of December 31, 2011 and 2010, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.80 million and
P=2.85 million, respectively. Management believes that it is not highly probable that these
temporary differences will be realized in the future (see Note 23).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post-employment benefits are
determined using actuarial valuations. The actuarial valuation involves making assumptions
about discount rates, expected rates of return on assets, future salary increases, mortality rates
and future retirement increases. Due to the long-term nature of these benefits, such estimates
are subject to significant uncertainty.
The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 16 for the details of assumptions used in the
calculation. As of December 31, 2011 and 2010, the Parent Company recognized retirement
asset of P=0.37 million and retirement liability of P=0.78 million, respectively. In 2011, 2010
and 2009, the Parent Company recognized retirement expense amounting to P=5.75 million,
P=2.38 million and P=3.02 million, respectively (see Note 16).
f. Share-based payment transactions
The Parent Company determined the cost of its equity-settled share based program at grant
date using the price earnings multiple model taking into account the terms and conditions
upon which the shares were granted. At yearend, the Parent Company estimates the number
of equity instruments that will ultimately vest. The Parent Company recognized cost of
equity-settled share based payments amounting to P=1.53 million in 2009 (see Note 17). The
vesting period of the stock purchase program ended on September 19, 2009.
*SGVMC116501*

4. Fair Value Measurement
- 20 -
The following tables summarize the carrying amounts and fair values of the Parent Company’s
financial assets and financial liabilities:
2011 2010
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Loans and receivables:
Cash and cash equivalents
Cash on hand P=24,772,521 P=24,772,521 P=41,745,551 P=41,745,551
Cash in banks
Accounts receivable
642,750,978 642,750,978 685,920,368 685,920,368
Agents 993,280,050 993,280,050 1,081,402,745 1,081,402,745
Couriers
Other receivables
3,523,052 3,523,052 34,283,201 34,283,201
Related parties 137,260,244 137,260,244 97,767,888 97,767,888
Advances to officers and employees 2,526,259 2,526,259 2,991,428 2,991,428
Noncontrolling shareholders – – 39,981,243 39,981,243
Others 3,457,329 3,457,329 1,166,686 1,166,686
Refundable deposits 4,568,661 4,492,159 4,099,931 3,860,098
Total P=1,812,139,094 P=1,812,062,592 P=1,989,359,041 P=1,989,119,208
Other Financial Liabilities
Beneficiaries and other payables:
Beneficiaries P=155,140,304 P=155,140,304 P=144,960,550 P=144,960,550
Advances from related parties 79,753,117 79,753,117 74,161,090 74,161,090
Agents, couriers and trading clients 44,404,974 44,404,974 27,101,817 27,101,817
Accrued expenses 7,019,510 7,019,510 6,250,462 6,250,462
Payable to suppliers 1,391,836 1,391,836 2,958,634 2,958,634
Others 476,730 476,730 803,350 803,350
Interest-bearing loans 666,000,000 666,000,000 877,000,000 877,000,000
Total P=954,186,471 P=954,186,471 P=1,133,235,903 P=1,133,235,903
The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, Accounts receivable, Other receivables, Beneficiaries and other
payables and Interest-bearing loans - carrying amounts approximate fair values due to the
relatively short-term maturities of these instruments.
Refundable deposits - fair values are based on the present value of future cash flows discounted
using prevailing interest rates ranging from 1.56% to 2.14% and 2.31% to 3.12% as at
December 31, 2011 and 2010, respectively.
As of December 31 2011 and 2010, the Parent Company has no financial instruments carried at
fair value.
5. Financial Risk Management Objectives and Policies
The Parent Company’s principal financial instruments mainly comprise of short-term loans from
banks. The main purpose of these financial instruments is to raise funds for the Parent Company’s
fulfillment or delivery of remittance transactions to beneficiaries. The Parent Company also has
various other financial assets and liabilities such as cash and cash equivalents, accounts receivable
and accounts payable to beneficiaries, which arise directly from its remittance operations.
*SGVMC116501*

- 21 -
The main risks arising from the Parent Company’s financial instruments are credit risk, foreign
currency risk, cash flow interest rate risk, and liquidity risk. The BOD reviews and approves
policies for managing each of these risks and these are summarized below:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to perform its
obligations during the life of the transaction. This includes risk of non-payment by borrowers or
issuers, failed settlement of transactions and default on contracts.
The nature of its business exposes the Parent Company to potential risk from difficulties in
recovering transaction money from foreign partners. Receivables from foreign offices and agents
arise as a result of its remittance operations in various regions of the globe. In order to address
this, the Parent Company has maintained the following credit policies: (a) implement a contract
that incorporates a bond and advance payment cover such that the full amount of the transaction
will be credited to the Parent Company prior to their delivery to the beneficiaries, which applies
generally to all new agents and in certain cases to old agents; (b) all foreign offices and agents
must settle their accounts within the agreed credit terms, otherwise, the fulfillment or delivery of
their remittance transactions will be put on hold; (c) evaluation of individual potential partners and
preferred associates’ creditworthiness, as well as a close look into the other pertinent aspects of
their partners’ businesses which assures the Parent Company of the financial soundness of their
partner firms; and (d) receivable balances are monitored daily by the regional managers with the
result that the Parent Company’s exposure to bad debts is not significant.
The Parent Company’s receivables from agents and courier companies are highly collectible and
have a turnover ranging from 1 to 5 days and 30 to 60 days, respectively. The other receivables,
which include advances to related parties, are also highly collectible and are due in less than one
year.
The table below shows the maximum credit exposure of the Parent Company per account
classification as of December 31, 2011 and 2010 (see Notes 6, 7, 8 and 12):
2011 2010
Loans and receivables:
Cash and cash equivalents* P=642,750,978 P=685,920,368
Accounts receivable
Other receivables
996,803,102 1,115,685,946
Related parties 137,260,244 97,767,888
Advances to officers and employees 2,526,259 2,991,428
Noncontrolling shareholders – 39,981,243
Others
Other noncurrent assets
3,457,329 1,166,686
Refundable deposits 4,568,661 4,099,931
Total
* excludes cash on hand
P=1,787,366,573 P=1,947,613,490
*SGVMC116501*

- 22 -
The table below shows the maximum credit exposure of the Parent Company per geographical
classification as of December 31, 2011 and 2010:
2011 2010
Asia Pacific P=1,386,607,212 P=1,742,336,664
North America 169,629,594 54,214,381
Europe 122,244,502 52,265,667
Middle East 108,885,265 98,796,778
Total P=1,787,366,573 P=1,947,613,490
The Parent Company classifies its neither past due nor impaired receivables as high grade. High
grade financial assets includes instruments with credit ratings of excellent, strong, good, or
satisfactory, wherein the borrower has a low probability of default and could withstand the normal
business cycle.
As at December 31, 2011, the Parent Company has past due but not impaired receivables from
agents amounting to P=8.77 million. These receivables have been outstanding for more than six
months but less than one year. No impairment was recognized relative to these receivables. There
are no past due but not impaired receivables as of December 31, 2010.
Foreign Currency Risk
Foreign currency risk is the risk to earnings or capital arising from changes in foreign exchange
rates. It is the Parent Company’s policy that all daily foreign currencies, which arise as a result of
its remittance transactions, must be traded daily with bank partners only at prevailing foreign
exchange rates in the market. The daily closing foreign exchange rates shall be the guiding rate in
providing wholesale rates and retail rates to foreign offices and agents, respectively. The trading
proceeds will be used to pay out bank loans and other obligations of the Parent Company.
The tables below summarize the Parent Company’s exposure to foreign exchange risk. Included
in the tables are the Parent Company’s foreign currency-denominated monetary assets and
liabilities and their PHP equivalent.
Cash and Cash
Equivalents Receivables Total
2011 2010
PHP
Equivalent
Cash and Cash
Equivalents Receivables Total
PHP
Equivalent
Currency
CAD − 3,899,810 3,899,810 P=166,949,916 139,422 3,312,925 3,452,347 P=151,305,487
EUR 600,992 702,086 1,303,078 73,922,243 321,739 515,999 837,738 48,567,036
SGD 440,811 1,628,629 2,069,440 69,903,060 89,587 1,254,112 1,343,699 45,565,156
USD 1,263,619 246,093 1,509,712 66,185,751 1,026,855 901,651 1,928,506 84,545,703
AUD 45,588 1,215,971 1,261,559 55,804,483 184,346 783,071 967,417 43,141,040
GBP 14,873 796,606 811,479 54,974,473 14,752 – 14,752 1,002,493
NTD − 20,248,641 20,248,641 29,205,344 – 23,731,378 23,731,378 35,581,120
NZD 4,809 309,338 314,147 10,589,449 7,518 212,371 219,889 7,364,909
HKD 23,219 1,496,086 1,519,305 8,565,572 – 1,553,760 1,553,760 8,753,014
QAR 275 – 275 3,311 275 – 275 3,312
Net exposure P=536,103,602 P=425,829,270
*SGVMC116501*

- 23 -
The following tables set forth for the year indicated the impact of reasonably possible changes in
the rates of other currencies on pretax income.
Currency
Change in nominal
foreign currency
exchange rate
Effect on
pretax
income
2011
Change in nominal
foreign currency
exchange rate
Effect on
pretax
income
CAD +2.81 P=10,959,401 -1.60 (P=6,238,760)
EUR +7.36 9,585,817 -0.25 (324,205)
SGD +1.95 4,038,058 -0.66 (1,363,182)
AUD +2.95 3,715,845 -2.94 (3,714,735)
GBP +4.40 3,573,796 -1.06 (856,884)
NTD +0.10 1,985,663 -0.12 (2,434,616)
USD +0.91 1,373,837 -1.94 (2,928,840)
NZD +3.50 1,099,962 -2.44 (766,071)
HKD +0.11 169,062 -0.26 (399,917)
QAR +0.24 66 -0.53 (147)
Change in nominal
2010
Change in nominal
foreign currency
Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
CAD +1.75 P=6,041,607 -2.09 (P=7,215,405)
EUR +8.87 7,430,736 -3.04 (2,546,724)
SGD +0.32 429,984 -1.87 (2,512,717)
AUD +0.13 125,764 -7.05 (6,820,290)
GBP +8.01 118,164 -3.57 (52,665)
NTD +0.01 237,314 -0.12 (2,847,765)
USD +3.55 6,846,196 -1.61 (3,104,895)
NZD +1.03 226,486 -3.09 (679,457)
HKD +0.41 637,042 -0.08 (124,301)
QAR +1.73 476 -4.08 (1,122)
There is no other impact on the Parent Company’s equity other than those already affecting the
profit or loss.
Cash Flow Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows of financial instruments.
As of December 31, 2011 and 2010, the Parent Company’s exposure to cash flow interest rate risk
is minimal. The Parent Company’s policy is to manage its interest cost by entering only into fixed
rate short-term loans from banks.
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments.
The Parent Company’s objective is to maintain a balance between continuity of funding and
flexibility through the use of short-term debts. In addition, the Parent Company maintains credit
facilities with local banks. As of December 31, 2011 and 2010, the Parent Company has unused
credit facilities amounting to P=1.48 billion and P=1.02 billion, respectively (see Note 14).
*SGVMC116501*

- 24 -
Financial assets
Maturity profile of financial assets held for liquidity purposes is shown below. The analysis is
based on the remaining period from the end of the reporting period to the contractual maturity
date, or if earlier, the expected date the assets will be realized.
Financial liabilities
The maturity grouping is based on the remaining period from the end of the reporting period to the
contractual maturity date. When counterparty has a choice of when the amount is paid, the
liability is allocated to the earliest period in which the Parent Company can be required to pay.
The tables below summarize the maturity profile of the Parent Company’s financial instruments
based on undiscounted contractual payments.
2011
Over 60 days
but less than
Less than 5 days 5 to 30 days 30 to 60 days one year Total
Financial assets
Cash and cash equivalents
Cash on hand P=24,772,521 P=– P=– P= − =24,772,521 P
Cash in banks
Accounts receivable
642,750,978 − − − 642,750,978
Agents 984,506,271 − − 8,773,779 993,280,050
Couriers − − 3,523,052 − 3,523,052
P=1,652,029,770 P=– P=3,523,052 P=8,773,779 P=1,664,326,601
Financial liabilities
Beneficiaries and other
payables:
Beneficiaries
Advances from related
P=155,140,304 P=– P=– P= − =155,140,304 P
parties
Agents, couriers and
– – 79,753,117
− 79,753,117
trading clients 44,404,974 – –
− 44,404,974
Accrued expenses – – 7,019,510 − 7,019,510
Payable to suppliers – – 1,391,836 − 1,391,836
Others – – 476,730 − 476,730
Interest-bearing loans 95,050,139 571,866,010 − − 666,916,149
P=294,595,417 P=571,866,010 P=88,641,193 P= − =955,102,620 P
2010
Less than 5 days 5 to 30 days 30 to 60 days
Over 60 days
but less than
one year Total
Financial assets
Cash and cash equivalents
Cash on hand P=41,745,551 P=– P=– P=– P=41,745,551
Cash in banks
Accounts receivable
685,920,368 – – – 685,920,368
Agents 1,081,402,745 – – − 1,081,402,745
Couriers – – 34,283,201 – 34,283,201
P=1,809,068,664 P=– P=34,283,201 P=− P=1,843,351,865
Financial liabilities
Beneficiaries and other
payables:
Beneficiaries
Advances from related
P=144,960,550 P=– P=– P=− P=144,960,550
parties
Agents, couriers and
– – 74,161,090
− 74,161,090
trading clients 27,101,817 – –
− 27,101,817
Accrued expenses – – 6,250,462 − 6,250,462
Payable to suppliers – – 2,958,634 − 2,958,634
Others – – 803,350 − 803,350
Interest-bearing loans 395,273,055 483,077,528 – − 878,350,583
P=567,335,422 P=483,077,528 P=84,173,536 P=− P=1,134,586,486
*SGVMC116501*

6. Cash and Cash Equivalents
This account consists of:
- 25 -
2011 2010
Cash on hand P=24,772,521 P=41,745,551
Cash in banks (Note 22) 642,750,978 685,920,368
P=667,523,499 P=727,665,919
Cash in banks earn interest at the respective bank deposit rates.
In 2011, 2010 and 2009, interest income amounted to P=2.95 million, P=3.22 million and
P=7.67 million, respectively.
The Parent Company’s cash and cash equivalents denominated in foreign currency, with
corresponding Philippine peso (PHP) equivalent, are as follows:
December 31, 2011 December 31, 2010
Amount PHP equivalent Amount PHP equivalent
USD 1,263,619 P=55,397,057 1,026,855 P=45,017,323
EUR 600,992 34,093,651 321,739 18,652,502
SGD 440,811 14,890,031 89,587 3,037,917
AUD 45,588 2,016,565 184,346 8,220,734
GBP 14,873 1,007,585 14,752 1,002,493
NZD 4,809 162,105 7,518 251,806
HKD 23,219 130,905 − −
QAR 275 3,312 275 3,312
CAD – – 139,422 6,110,427
P=107,701,211 P=82,296,514
Cash in banks earn interest rates in 2011, 2010 and 2009 ranging as follows for:
PHP-Denominated 0.50% to 2.00%
Foreign Currency-Denominated 0.25% to 0.50%
7. Accounts Receivable
This account consists of receivables from:
2011 2010
Agents P=993,280,050 P=1,081,402,745
Couriers 3,523,052 34,283,201
P=996,803,102 P=1,115,685,946
Receivables from agents pertain to advances made to fund the remittance transactions to
beneficiaries. These are settled within 1 to 5 days from transaction date.
Receivables from couriers pertain to advances made to the courier companies to ease up the doorto-door
delivery of the remittances to the beneficiaries. These are settled within 30 to 60 days
from transaction date.
*SGVMC116501*

8. Other Receivables
This account consists of:
- 26 -
2011 2010
Related parties (Note 22) P=137,260,244 P=97,767,888
Officers and employees 2,526,259 2,991,428
Noncontrolling shareholders (Note 10) – 39,981,243
Others 3,457,329 1,166,686
P=143,243,832 P=141,907,245
Receivable from the noncontrolling shareholders pertain to the Parent Company’s advances to the
noncontrolling shareholders of IRCGmbH and WEPL. In 2011, the Parent Company acquired
additional interest in IRCGmbH and WEPL. The receivable from noncontrolling shareholders of
IRCGmbH and WEPL amounting to P=25.01 million and P=12.30 million, respectively, were
applied against the acquisition costs (see Note 10). The remaining P=2.67 million was settled in
July 2011.
‘Others’ includes advances to contractors and trading clients for foreign exchange transactions.
These outstanding receivables are due within one year.
9. Other Current Assets
This account consists of:
2011 2010
Receivable from Bureau of Internal Revenue (BIR) P=13,160,535 P=13,160,535
Prepaid expenses 5,579,968 1,895,811
Visa cards inventory 3,371,662 8,054,220
Suppliers and contractors 1,087,500 50,000
Office supplies 190,328 199,689
Creditable withholding tax 2,979 –
P=23,392,972 P=23,360,255
Receivable from BIR pertains to the excess payments made by the Parent Company in 2007 for
the Initial Public Offering (IPO) percentage tax. As of December 31, 2011, the case is pending
resolution with the Court of Tax Appeals. The Parent Company believes that it will be able to
obtain the refund from the BIR.
Prepaid expenses include prepayments for business development, rent, internet connection and
association dues.
*SGVMC116501*

10. Investments in Subsidiaries and Associates
- 27 -
The Parent Company’s investments in subsidiaries and associates consist of the following:
2011 2010
Subsidiaries:
IRCGmbH P=103,215,083 P=78,200,341
IGRL 78,653,145 71,200,000
LSML 42,554,665 42,554,665
WEPL 21,336,890 9,033,072
IRCL 13,444,000 13,444,000
IAPL 8,552,000 8,552,000
PSAGL 5,958,800 5,958,800
KKIJ 5,413,120 –
INZL
Associates:
32,400 32,400
ISPL 12,600,000 12,600,000
HKHCL 3,573,974 3,573,974
P=295,334,077 P=245,149,252
Establishment of subsidiaries
IRCGmbH
The Parent Company’s BOD approved IRCGmbH’s incorporation on July 8, 2005 as a stock
corporation to be organized and registered in Austria. Accordingly, the Parent Company made an
investment of P=3.55 million on July 18, 2005.
On December 21, 2009, the shareholders of IRCGmbH made a non-refundable shareholders’
contribution amounting to EUR1.50 million (P=99.66 million) to the entity to strengthen its equity.
The additional investments were taken from the outstanding receivables of the Parent Company
from IRCGmbH amounting to P=91.16 million and were recognized by the latter as capital reserves
to wipe out its accumulated deficit amounting to GBP0.56 million (P=52.41 million). As a result of
the application of receivables, the Parent Company recognized a receivable amounting to
P=16.52 million from the noncontrolling shareholder. The remaining P=8.49 million was recognized
as a receivable from the noncontrolling shareholder in the separate financial statements of
IRCGmbH. On September 28, 2010, the Parent Company advanced the P=8.49 million to
IRCGmbH as payment of the receivable from the noncontrolling shareholder. This resulted to the
increase in the Parent Company’s receivable by P=8.49 million (see Note 8). The existing
ownership ratio of 74.90% and 25.10% was maintained towards the end of December 31 2010.
On May 5, 2011, the Parent Company acquired the remaining 25.10% ownership interest in
IRCGmbH from the noncontrolling stockholder for a consideration of P=25.01 million. The
acquisition increased the Parent Company’s ownership interest in IRCGmbH to 100.00% from
74.90%. The receivable from noncontrolling shareholder was applied in full against the total
consideration (see Note 8).
Consequently, on October 11, 2011, IERCAG changed its legal name to IREMIT Remittance
Consulting GmbH (IRCGmbH) and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities.
*SGVMC116501*

- 28 -
INZL
On August 17, 2007, the Parent Company’s BOD approved the incorporation of INZL as a stock
corporation to be organized and registered in New Zealand. Accordingly, the Parent Company
made an investment of NZD1,000 (P=32,400). INZL started commercial operations on
February 13, 2008.
KKIJ
On June 10, 2011, the Parent Company incorporated KKIJ in Japan with the primary purpose of
engaging in money remittance services and other activities related thereto. Accordingly, the
Parent Company made an investment of JPY10.00 million (P=5.41 million). KKIJ has not started
commercial operations as of March 23, 2012.
Acquisition of subsidiaries
IGRL and IAPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 100.00% ownership
interest in both IGRL and IAPL for a consideration of P=71.20 million and P=8.55 million,
respectively. IGRL and IAPL are based in United Kingdom and Australia, respectively. These
two entities, which are in the remittance business, have the same operations as the Parent
Company. Accordingly, on June 29, 2007, the Parent Company acquired 100.00% ownership
interest in IGRL and IAPL through the execution of deeds of assignment by the previous
stockholders (who are also the stockholders of the Parent Company) of the two entities. Under the
deeds of assignment, the existing advances by the Parent Company to certain stockholders were
applied as payment for the purchase of IGRL and IAPL.
On April 15, 2011, IGRL was authorized by the Financial Services Authority (FSA) of the United
Kingdom as an Authorized Payment Institution under the European Payment Services Directive, a
legislation adopted by the European Union that aims to harmonize laws across Europe pertaining
to the provision of payment services, including money transfer services. Prior to this grant, the
BOD of IGRL approved the increase of IGRL’s authorized shares to 105,000. Accordingly, the
Parent Company invested GBP0.10 million (P=7.45 million) for the additional capital requirement.
WEPL
On June 2, 2007, the Parent Company’s BOD also approved the acquisition of 20.00% ownership
interest in WEPL for a consideration of P=5.60 million. WEPL was incorporated and is based in
Australia, and has the same operations as the Parent Company. Accordingly, on June 29, 2007,
the Parent Company acquired 20.00% ownership interest in WEPL through the execution of a
deed of assignment by the previous stockholders (who are also stockholders of the Parent
Company) of the entity. Under the deed of assignment, the existing advances of the Parent
Company to certain stockholders were applied as payment for the purchase of WEPL. On
September 4, 2007, an additional 15.00% ownership interest in WEPL was acquired by the Parent
Company for a consideration of P=3.43 million.
On March 25 2011, the Parent Company’s BOD approved the acquisition of 35.00% ownership
interest from the noncontrolling stockholders of WEPL for a consideration of AUD0.27 million
(P=12.30 million), consequently making the ownership of the Parent Company over WEPL at
100.00%. The Parent Company applied its receivables from the noncontrolling shareholders
against the acquisition cost (see Note 8).
As discussed in Note 1, WEPL is effectively 100.00% owned by the Parent Company through its
direct interest of 70.00% and indirect interest of 30.00% through IAPL.
*SGVMC116501*

- 29 -
IRCL
On October 1, 2004, the Parent Company’s BOD approved the acquisition of 65.00% of IRCL for
a consideration of P=10.34 million. IRCL was incorporated on July 16, 2001 and is based in
Canada and has the same operations as the Parent Company. On July 26, 2006, the additional
30.00% ownership interest from a noncontrolling stockholder in IRCL was transferred to the
Parent Company at no additional cost.
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 5.00% ownership
interest from a noncontrolling stockholder for a consideration of P=3.10 million thereby taking its
ownership in IRCL to 100.00%. Accordingly on June 29, 2007, the IRCL noncontrolling
stockholder executed a deed of assignment to transfer the ownership interest to the Parent
Company. Under the deed of assignment, the existing advances by the Parent Company to certain
stockholder were applied as payment for the purchase of IRCL.
PSAGL
On November 28, 2008, the Parent Company’s BOD ratified the acquisition of 100.00%
ownership interest in PSAGL for a consideration of P=5.96 million. PSAGL is based in Hong
Kong and was incorporated on April 28, 2008 to engage in foreign currencies trading services.
LSML
LSML was incorporated on March 16, 2001 and is based in Hong Kong and has the same
operations as the Parent Company. On April 2001, the Parent Company’s BOD approved the
acquisition of 51.00% ownership interest in LSML for a consideration of P=17.85 million. On
June 2, 2007, the Parent Company’s BOD approved the acquisition of the 49.00% ownership
interest in LSML from its noncontrolling stockholder for a consideration of P=24.70 million.
Accordingly on June 29, 2007, the noncontrolling stockholder of LSML (who is also a stockholder
of the Parent Company) executed deed of assignment to transfer its ownership interest to the
Parent Company.
Acquisition of associates
HKHCL
On July 1, 2009, the Parent Company acquired 49.00% ownership interest in HKHCL, for a
consideration of NTD2.45 million (P=3.57 million). HKHCL is a remittance business based in
Taiwan.
ISPL
On June 29, 2007, the Parent Company acquired 49.00% ownership interest in ISPL through the
execution of a deed of assignment by the previous stockholders (who are also stockholders of the
Parent Company) of the entity for a consideration of P=12.60 million. ISPL is a remittance
business based in Singapore.
*SGVMC116501*

- 30 -
The following tables present the summarized financial information of the Parent Company’s
subsidiaries and associates as of and for the years ended December 31, 2011 and 2010:
2011
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets Liabilities Revenue
(In thousands)
Income (Loss)
Subsidiaries:
PSAGL P=260,768 P=1,959 P=70,608 P=70,409 P=66,526
IRCL 87,150 50,795 102,900 92,629 16,148
IRCGmbH 76,487 64,317 7,053 6,174 9,930
IGRL 49,057 49,256 60,754 50,653 (10,809)
WEPL 33,093 28,188 36,404 34,563 302
LSML 26,072 16,658 17,064 17,055 (265)
INZL 13,083 22,286 6,338 5,277 (3,047)
IAPL 12,301 8,236 953 623 15
KKIJ 11,223 5,612 − − −
Associates:
569,234 247,307 302,074 277,383 78,800
ISPL 73,254 49,703 55,924 31,894 3,127
HKHCL 26,875 23,906 19,340 13,151 1,223
P=669,363 P=320,916 P=377,338 P=322,428 P=83,150
2010
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets Liabilities Revenue
(In thousands)
Income (Loss)
Subsidiaries:
PSAGL P=193,141 P=1,722 P=62,610 P=62,413 P=63,271
IRCL 62,144 40,718 109,058 97,525 666
IRCGmbH 68,553 70,507 13,400 11,711 (46,642)
IGRL 16,662 13,645 55,240 43,769 1,019
WEPL 21,785 17,111 30,546 29,226 200
LSML 24,435 14,722 25,562 25,553 6,107
INZL 11,870 18,025 9,618 8,798 (1,129)
IAPL 5,600 1,526 628 308 29
Associates:
404,190 177,976 306,662 279,303 23,521
ISPL 61,209 40,638 56,130 33,198 4,754
HKHCL 69,159 53,006 65,648 22,037 5,996
P=534,558 P=271,620 P=428,440 P=334,538 P=34,271
*SGVMC116501*

- 31 -
2009
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets
(In thousands)
Liabilities Revenue Income (Loss)
Subsidiaries:
PSAGL P=156,824 P=19,388 P=55,647 P=55,480 P=86,354
IRCL 81,580 60,602 112,284 99,665 6,725
IRCGmbH 57,672 7,355 10,750 9,146 (17,022)
IGRL 16,217 14,018 62,353 46,910 1,003
WEPL 27,696 23,595 33,940 32,627 2,975
LSML 21,719 17,771 21,404 21,392 2,236
INZL 13,113 17,987 8,243 7,580 (2,654)
IAPL 28,877 25,058 590 244 3,719
Associates:
403,698 185,774 305,211 273,044 83,336
ISPL 74,159 42,914 38,046 37,708 13,027
HKHCL 31,970 30,572 21,096 14,295 (966)
P=509,827 P=259,260 P=364,353 P=325,047 P=95,397
11. Property and Equipment
The composition of and movements in this account follow:
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2011
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=25,050,187 P=6,834,602 P=3,779,467 P=11,795,343 P=47,459,599
Additions 2,222,849 35,315 285,181 50,000 2,593,345
Disposals – – (10) – (10)
Balance at end of year 27,273,036 6,869,917 4,064,638 11,845,343 50,052,934
Accumulated Depreciation and
Amortization
Balance at beginning of year 21,499,889 2,944,869 2,984,108 10,537,618 37,966,484
Depreciation and amortization 2,483,026 1,309,027 414,913 785,010 4,991,976
Balance at end of year 23,982,915 4,253,896 3,399,021 11,322,628 42,958,460
Net Book Value at End of Year P=3,290,121 P=2,616,021 P=665,617 P=522,715 P=7,094,474
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2010
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=22,623,757 P=5,920,959 P=3,692,945 P=11,762,843 P=44,000,504
Additions 2,621,930 3,116,461 177,934 32,500 5,948,825
Disposals (195,500) (2,202,818) (91,412) – (2,489,730)
Balance at end of year 25,050,187 6,834,602 3,779,467 11,795,343 47,459,599
Accumulated Depreciation and
Amortization
Balance at beginning of year 18,066,791 2,350,632 2,594,128 9,227,166 32,238,717
Depreciation and amortization 3,521,442 1,303,027 415,880 1,310,452 6,550,801
Disposals (88,344) (708,790) (25,900) – (823,034)
Balance at end of year 21,499,889 2,944,869 2,984,108 10,537,618 37,966,484
Net Book Value at End of Year P=3,550,298 P=3,889,733 P=795,359 P=1,257,725 P=9,493,115
As of December 31, 2011 and 2010, the cost of fully depreciated property and equipment still in
use amounted to P=23.13 million and P=22.64 million, respectively.
*SGVMC116501*

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Details of depreciation and amortization follow:
2011 2010 2009
Property and equipment P=4,991,976 P=6,550,801 P=6,948,635
Software cost (Note 12) 1,543,083 1,507,900 1,665,896
P=6,535,059 P=8,058,701 P=8,614,531
12. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2011 2010
Cost
Balance at beginning of year P=12,096,697 P=11,425,409
Additions 1,071,252 671,288
Balance at end of year
Accumulated Amortization
13,167,949 12,096,697
Balance at beginning of year 10,228,625 8,720,725
Amortization (Note 11) 1,543,083 1,507,900
Balance at end of year 11,771,708 10,228,625
Net Book Value at end of year P=1,396,241 P=1,868,072
Other noncurrent assets consist of:
2011 2010
Input VAT P=21,242,725 P=28,493,804
Refundable deposits 4,568,661 4,099,931
Deferred input VAT 326,056 350,550
Others 44,000 44,000
P=26,181,442 P=32,988,285
The Parent Company has applied for tax credits on Input VAT with the BIR and is waiting for the
issuance of Tax Credit Certificates (TCCs). In 2011, the BIR issued two tax credit certificates to
the Parent Company for its input VAT filed for years 2005 and 2006 amounting to P=1.71 million
and P=3.82 million, respectively. Management of the Company believes that it will able to collect
the rest of the TCCs applicable to its outstanding claims. The carrying amounts are already net of
claims disallowed by the BIR amounting to P=2.06 million, nil and P=1.34 million in 2011, 2010 and
2009, respectively (see Note 20).
Refundable deposits pertain to the security deposits made by the Parent Company in relation to
rental lease agreements for its office spaces.
*SGVMC116501*

13. Beneficiaries and Other Payables
This account consists of:
- 33 -
2011 2010
Beneficiaries P=155,140,304 P=144,960,550
Advances from related parties (Note 22) 79,753,117 74,161,090
Agents, couriers and trading clients 44,404,974 27,101,817
Accrued expenses 7,019,510 6,250,462
Payable to suppliers 1,391,836 2,958,634
Withholding tax payable 819,129 814,996
Payable to SSS, Philhealth and HDMF 639,773 7,754
Vat payable 17,875 −
Others 476,730 803,350
P=289,663,248 P=257,058,653
Payables to beneficiaries, agents, couriers and trading clients are noninterest-bearing and are
normally settled within 1 to 30 days.
Accrued expenses include accruals for various operating expenses such as vacation and sick leave
benefits, courier charges, training and development, professional fees and utilities.
14. Interest-Bearing Loans
This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2011 and 2010, the outstanding loans payable of the Parent Company
amounted to P=666.00 million and P=877.00 million, respectively.
In 2011, 2010 and 2009, these loans bear annual interest rates ranging from 5.00% to 7.00%,
5.50% to 6.00% and 7.00% to 8.00%, respectively. In 2011, 2010 and 2009, the Parent Company
recognized interest expense of P=38.32 million, P=29.21 million and P=48.68 million, respectively.
The Parent Company has unused credit facilities with various banks amounting to P=1.48 billion
and P=1.02 billion as of December 31, 2011 and 2010, respectively.
The loans outstanding as of December 31, 2011 were subsequently paid on various dates in
January and February 2012.
*SGVMC116501*

15. Equity
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Capital Stock
The Parent Company’s capital stock consists of:
2011 2010 2009
Number of
Shares Amount
Number of
Shares Amount
Number of
Shares Amount
Common Stock
Authorized - P=1 par value
per share 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000
Issued:
Balance at beginning
of the year 562,417,000 P=562,417,000 562,417,000 P=562,417,000 562,417,000 P=562,417,000
Stock dividends 55,308,800 55,308,800 – – – –
Balance at end of the year 617,725,800 617,725,800 562,417,000 562,417,000 562,417,000 562,417,000
Treasury stock:
Balance at beginning
of the year (9,329,000) (40,115,150) (9,329,000) (40,115,150) (10,006,200) (40,792,350)
Acquisitions (5,544,000) (12,872,058) – – (130,900) (130,900)
Reissaunce – – – – 808,100 808,100
Balance at end of the year (14,873,000) (52,987,208) (9,329,000) (40,115,150) (9,329,000) (40,115,150)
Issued and outstanding 602,852,800 P=564,738,592 553,088,000 P=522,301,850 553,088,000 P=522,301,850
On September 13, 2007, the SEC approved the registration of 140,604,000 common shares with
offer price of P=4.68 and 454,950,000 outstanding shares with par value of P=1.00. There are 17
registered common stockholders as of December 31, 2011 and 13 registered common stockholders
as of December 31, 2010 and 2009. Shares lodged with the Philippine Central Depository are
registered under the name of PCD Nominee Corporation and as such are treated as being held by
only one shareholder.
Dividends
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 17, 2009. The payment of dividends was made on
May 6, 2009.
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On June 17, 2011, the Board of Directors of the Parent Company authorized the declaration of
stock dividends equivalent to 10% of outstanding shares of 553,088,000 in favor of its
stockholders-of-record as of August 15, 2011. The declaration was subsequently ratified and
confirmed by the Parent Company’s stockholders during their annual meeting held on
July 29, 2011.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the buy-back program to acquire up to
ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent Company’s
total outstanding common shares, from the market. The Parent Company purchased 9,329,000
shares (P=40.12 million) in 2008 under the buy-back program.
*SGVMC116501*

- 35 -
In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred on
September 2009 to the retirement fund of the Parent Company (see Notes 16 and 17).
On September 16, 2011, the Board of Directors of the Parent Company adopted a resolution
authorizing the buy-back of up to ten million (10,000,000) of its shares from the market. The
Parent Company purchased 4,873,000 shares (P=11.35 million) under the buy-back program.
In 2011, the Parent Company also purchased 671,000 shares (P=1.52 million) under the buy-back
program approved in August 15, 2008 as discussed above.
Capital Management
The Parent Company’s capital is composed of its equity, which amounts to P=1.20 billion and
P=1.16 billion as of December 31, 2011 and 2010, respectively.
The Parent Company’s capital management activities seek to ensure that it maintains a healthy
capital ratio in order to support its businesses and maximize shareholder value by optimizing the
level and mix of its capital resources. Decisions on the allocation of capital resources are being
performed as part of the strategic planning review.
The Parent Company manages its capital structure and makes adjustments to it, in light of changes
in economic conditions. To maintain or adjust the capital structure, the Parent Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years ended
December 31, 2011 and 2010.
The Parent Company’s objective is to ensure that there are no known events that may trigger direct
or contingent financial obligation that is material to the Company, including default or
acceleration of an obligation.
The Parent Company is not subject to externally imposed capital requirements.
16. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
The Parent Company determined its transitional liability for defined benefit retirement plan merely
as the present value of the obligation since the Parent Company had no plan assets at the date of
the adoption. Transitional liability is amortized prospectively over five (5) years starting on
January 1, 2005.
The latest actuarial valuation report on the retirement plan is dated December 31, 2011.
*SGVMC116501*

- 36 -
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2011 and 2010 follow:
2011 2010
Discount rate 9.69% 11.25%
Future salary increases 8.00% 9.00%
Expected return on plan assets 6.00% 6.00%
Average remaining working life (in years) 32.10 31.8
The discount rates used to arrive at the present value of the obligation as of December 31, 2011
and 2010 are 6.70% and 9.69%, respectively.
The amounts recognized in the parent company balance sheets follow:
2011 2010
Present value of obligation P=22,524,680 P=21,847,360
Fair value of plan assets 21,816,324 15,196,930
Deficit (surplus) 708,356 6,650,430
Unrecognized actuarial losses (1,076,750) (5,872,169)
Retirement (asset) liability (P=368,394) P=778,261
The movements in the fair value of plan assets in 2011 and 2010 are as follows:
2011 2010
Balance at beginning of year P=15,196,930 P=12,421,022
Contributions 6,895,233 5,229,490
Expected return on plan assets 1,118,673 738,073
Benefits paid from plan assets – (548,626)
Actuarial (loss) gain (1,394,512) (2,643,029)
Balance at end of year P=21,816,324 P=15,196,930
The actual return on the plan assets of the Parent Company in 2011 and 2010 amounted to a loss
of P=1.90 million and a gain of P=4.45 million, respectively.
The Parent Company expects to contribute P=6.53 million to its retirement fund in 2012.
The movements in the present value of obligation are as follows:
2011 2010
Balance at beginning of year P=21,847,360 P=10,080,516
Current service cost 4,618,548 2,143,246
Interest cost 2,117,009 1,134,058
Benefits paid from plan assets – (548,626)
Actuarial loss (6,058,237) 9,038,166
Balance at end of year P=22,524,680 P=21,847,360
*SGVMC116501*

- 37 -
The amounts of retirement expense included in ‘Salaries, wages and employee benefits’ in the
parent company statements of income are as follows:
2011 2010 2009
Current service cost P=4,618,548 P=2,143,246 P=1,819,273
Interest cost 2,117,009 1,134,058 999,326
Expected return on plan assets (1,118,673) (738,073) –
Actuarial (gains) loss recognized 131,694 (163,104) (53,418)
Amortization of transitional liability – – 252,228
P=5,748,578 P=2,376,127 P=3,017,409
The movements in the retirement (asset) liability recognized in the parent company balance sheets
are as follows:
2011 2010
Balance at beginning of year P=778,261 P=3,631,624
Retirement expense 5,748,578 2,376,127
Contributions (6,895,233) (5,229,490)
Balance at end of year (P=368,394) P=778,261
Movements in the unrecognized actuarial (gains) losses are as follows:
2011 2010
Balance at beginning of year 5,872,169 (P=5,972,130)
Actuarial loss (gain) during the year (4,663,725) 11,681,195
Actuarial (loss) gain recognized (131,694) 163,104
Balance at end of year P=1,076,750 P=5,872,169
The major categories of plan assets follow:
2011 2010
Private equity securities* P=9,245,139 P=10,249,745
Deposits in banks 7,613,374 2,047,387
Government debt securities 4,763,467 2,760,719
Interest receivable 215,615 162,126
Trust fee payable (21,271) (23,047)
P=21,816,324 P=15,196,930
*This includes P=0.81 million of the Parent Company’s own equity securities bought under the SSPP (see Note 17).
The amounts of experience adjustments relating to the plan liabilities of the Parent Company
follow:
2011 2010 2009 2008 2007
Present value of obligation 22,524,680 P=21,847,360 P=10,080,516 P=6,574,511 P=7,770,113
Fair value of plan assets 21,816,324 15,196,930 12,421,022 3,168,050 −
Deficit (surplus) 708,356 6,650,430 (2,340,506) 3,406,461 7,770,113
Changes in actuarial assumptions (498,493) 9,932,542 1,070,082 (3,766,312) (9,785,892)
Experience adjustments on plan
liabilities (5,559,744) (894,376) (382,676) (206,448) 4,176,250
Experience adjustments on plan assets (1,394,512) (2,643,029) 4,452,972 – −
*SGVMC116501*

17. Special Stock Purchase Program (SSPP)
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On July 20, 2007, the Parent Company’s BOD approved the proposal to set up an SSPP totaling
15,000,000 shares for the employees of the Parent Company who have been in the service for at
least one (1) calendar year as of June 30, 2007, as well as its BOD members, resource persons and
consultants (collectively referred to as “the Participants”). A Notice of Exemption under
Section 10.2 of the Securities Regulations Code had been approved by the SEC on
September 13, 2007. Notwithstanding the aforesaid confirmation by the SEC of the exempt
status of the SSPP shares, the SEC nonetheless required the Parent Company to include the SSPP
shares among the shares of the Parent Company which were registered with the SEC prior to the
conduct of its Initial Public Offering in October 2007. The registration of the Parent Company
shares, together with the SSPP shares, was rendered effective on October 5, 2007.
All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or
P=1.00 per share. Total shares amounting to P=11.74 million were paid in full, while the difference
totaling P=3.26 million were paid by way of salary loan. Shares acquired through SSPP are subject
to a lock-up period of 2 years from date of issue, which ended on September 19, 2009.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the shares purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company as Treasury
stock. As of December 31, 2009, 24 employees resigned (9 in 2009, 13 in 2008 and 2 in 2007)
and their shares totaling 808,100 (130,900 in 2009, 548,500 in 2008 and 128,700 in 2007) were
bought back by the Parent Company.
As approved by the Parent Company’s BOD, the fair value of the shares issued under the SSPP
was measured at the grant date using the price-earnings multiple model taking into account the
terms and conditions upon which the shares were granted. The fair value at grant date was
P=1.33 per share. This transaction also resulted in an increase in equity by P=1.53 million,
P=2.16 million and P=1.00 million recognized as ‘Share-based payment’ under equity in 2009, 2008
and 2007, respectively.
On September 19, 2009, which is the end of the lock up period, the 808,100 shares bought back at
cost was transferred to the Parent Company’s retirement fund upon reimbursement of the
P=0.81 million paid by the Parent Company for those shares (see Note 16).
The expense arising from the share-based payment plan is recognized over the two-year lock-up
period. The expense recognized under ‘Salaries, wages and employee benefits’ in the parent
company statements of income amounted to P=1.53 million in 2009.
18. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
*SGVMC116501*

- 39 -
(b) A lease agreement with Wynsum Realty was entered into for a period of 24 months
commencing on September 1, 2008 to August 31, 2010 with a 5.00% escalation on the
monthly rental on the second year of the lease term. The contract was renewed for another
period of 2 years from September 1, 2010 to August 31, 2012 with the same terms.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of 36 months commencing on February 1, 2007 to January 31, 2010 with a 10.00%
escalation on the monthly rental payable effective on the 13th and 25th month of the lease
term. The contract was renewed for another period of 2 years from February 1, 2010 to
January 31, 2012 with the same terms.
(d) A lease agreement with Oakridge Properties (Unit 2603) was entered into for a period of 12
months, which commenced on December 1, 2008 and expired on November 30, 2009. The
contract was renewed for a period of 2 years commencing on December 1, 2009 to
November 30, 2011 with a 10.00% escalation on the monthly rental on the 13th month of the
lease term. The contract was renewed for another period of 2 years from December 1, 2011 to
November 30, 2013 with the same terms.
(e) On January 6, 2009, a lease agreement with Oakridge Properties (Unit 2703) was entered into
for a period of 24 months commencing February 1, 2009 to January 31, 2011 with a 10.00%
escalation rate on the aggregate monthly rental effective on the 13th month of the lease term.
The contract was renewed for a period of 2 years from February 1, 2011 to January 31, 2013
with the same terms.
(f) On July 1, 2011, the Parent Company entered into a sublease agreement with Surewell
Equities Pte Ltd., one of the stockholders of the Parent Company, for the use of the latter’s
office space in Singapore for an initial term of two (2) years.
Total rent expense of the Parent Company amounted to P=14.23 million, P=11.74 million and
P=11.11 million in 2011, 2010 and 2009, respectively (see Note 22).
Future minimum rentals payable under non-cancelable operating leases are as follows:
2011 2010
Within one year P=10,458,903 P=11,225,119
After one year but not more than five years 7,101,949 3,122,961
P=17,560,852 P=14,348,080
19. Marketing Expenses
This account consists of:
2011 2010 2009
Marketing and promotions P=22,310,186 P=27,448,244 P=11,465,823
Advertising and publicity 5,937,904 4,950,676 3,378,503
P=28,248,090 P=32,398,920 P=14,844,326
*SGVMC116501*

20. Other Operating Expenses
This account consists of:
- 40 -
2011 2010 2009
Taxes and licenses P=6,726,300 P=6,085,301 P=2,253,135
Association dues 3,230,078 1,927,949 2,066,643
Business development 2,974,650 2,679,500 943,210
Disallowance of input VAT by BIR 2,058,616 – 1,338,804
Insurance 814,865 613,229 754,666
Repairs and maintenance 691,037 799,563 508,566
Donations and contributions – 1,155,280 1,209,115
Miscellaneous 2,136,107 1,784,742 1,730,305
P=18,631,653 P=15,045,564 P=10,804,444
‘Miscellaneous’ includes various expenses incurred on recruitment, Christmas parties, and
Christmas giveaways.
21. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
sourced from the remittance transactions.
‘Other operating income’ consists of:
2011 2010 2009
Service fees P=6,316,114 P=– P=–
Rebates 2,881,469 687,509 2,595,006
Foreign exchange gain - net 2,722,754 116,205 5,172,171
Reversal of foreign income tax − 2,406,695 −
Dividends – 596,381 34,242,442
Others 1,504,014 1,077,589 2,594,154
P=13,424,351 P=4,884,379 P=44,603,773
Service fees pertain to revenue earned from services rendered by the call center agents employed
by the Parent Company to service the phone in transactions of its foreign subsidiary offices in
Canada, New Zealand, Australia and UK (see Note 22). Also included on this classification is the
service fee collected from the Social Security System (SSS) for remittance accepted and transacted
by the Parent Company on its behalf amounting to P=0.15 million.
Foreign exchange gain - net represents currency exchange income (net of losses) arising from
revaluation of foreign currency denominated assets and liabilities.
Rebates pertain to the refund of bank service charges.
*SGVMC116501*

22. Related Party Transactions
- 41 -
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Parent Company transacts with its related parties. Under
the Parent Company’s existing policies, these transactions are made substantially on the same
terms and conditions as transactions with other individuals and businesses of comparable risks.
The Parent Company engages in transactions with related parties consisting primarily of the
following:
(a) Delivery fees earned from clients of subsidiaries and associates are as follows:
2011 2010 2009
IRCL P=55,556,118 P=55,227,017 P=51,071,109
HKHCL 46,127,251 33,202,567 25,364,567
IAPL and WEPL 28,136,596 26,166,135 30,787,242
ISPL 24,463,777 25,080,948 27,016,303
IGRL 17,147,494 21,562,260 22,736,884
LSML 7,562,975 10,342,216 9,633,356
INZL 4,032,091 3,498,875 2,697,639
IRCGmbH 1,242,098 3,899,549 4,368,628
P=184,268,400 P=178,979,567 P=173,675,728
(b) The Parent Company leases office spaces from Oakridge Properties (see Note 18). Rent
expense amounted to P=9.88 million, P=9.25 million and P=8.17 million in 2011, 2010, and 2009,
respectively. Oakridge Properties is owned by JTKC, one of the stockholders of the Parent
Company.
(c) The Parent Company entered into a sublease agreement with Surewell Equities Pte Ltd., one
of the stockholders of the Parent Company (see Note 18). Rent expense amounted to
P=0.90 million in 2011.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate due to common stockholders, as trustee (see Note 16). The Parent Company also has
deposits amounting to P=118.62 million and P=129.71 million with SBA as of
December 31, 2011 and 2010, respectively. These deposits earned P=0.43 million, P=1.12
million and P=1.16 million interest income in 2011, 2010, and 2009, respectively.
(e) In 2011, the Parent Company provides call center services to process the phone-in transactions
of IRCL, INZL, IGRL and WEPL. Service income earned amounted to P=6.17 million.
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In addition to the related information disclosed elsewhere in the Parent Company’s financial
statements, the following are the yearend balances in respect of transactions with related parties
which were carried in terms that prevail in arm’s length transactions during the year:
2011 2010
Accounts receivable (Note 7):
Subsidiaries:
IRCL 42,142,000 28,873,378
WEPL 23,569,790 11,794,898
IGRL 19,114,840 –
LSML 8,434,669 8,750,196
INZL 5,149,801 7,113,107
IRCGmbH – 9,476,775
IAPL
Associates:
– 25,949
ISPL 66,321,905 38,681,856
HKHCL 29,463,514 35,543,489
P=194,196,519 P=140,259,648
Advances to related parties (Note 8):
Subsidiaries:
IRCGmbH P=62,811,308 P=54,579,655
IGRL 20,421,294 5,099,127
INZL 15,725,924 9,285,149
LSML 6,778,807 4,454,735
KKIJ 5,611,520 –
WEPL 604,175 94,113
IAPL 373,740 –
IRCL 150,199 71,646
PSAGL 33,166 –
Associates:
ISPL 16,034,604 16,104,921
HKHCL 8,715,507 8,078,542
P=137,260,244 P=97,767,888
Advances from related parties (Note 13):
Subsidiaries:
PSAGL P=75,534,429 P=70,214,989
IAPL 4,218,688 3,946,101
P=79,753,117 P=74,161,090
Accounts receivable pertains to advances made by the Parent Company to beneficiaries of
remittance transactions processed by the subsidiaries and associates.
Advances to subsidiaries include operational cash advances from the Parent Company. These are
non-interest bearing and are due on demand.
Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due
on demand.
*SGVMC116501*

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The amounts payable to PSAGL pertain to cash advances for Parent Company’s trading
transactions. These are non-interest bearing and are due on demand.
Advances from IAPL include unremitted dividend income from dividends declared by WEPL.
This is non-interest bearing and is due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million).
The compensation of the key management personnel of the Parent Company in 2011, 2010 and
2009 are as follows:
2011 2010 2009
Short-term employee benefits P=21,310,932 P=19,605,330 P=17,836,472
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment − – 435,303
P=22,882,376 P=20,154,871 P=18,993,407
23. Income Taxes
The provision for income tax consists of:
2011 2010 2009
Current
RCIT P=23,174,172 P=15,785,947 P=25,662,740
Final 589,871 643,945 1,534,105
P=23,764,043 P=16,429,892 P=27,196,845
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=4.46 million, P=2.84 million and P=2.62 million in 2011, 2010 and 2009,
respectively. The allowed EAR limit was P=4.90 million, P=4.63 million and P=4.73 million in 2011,
2010 and 2009, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
*SGVMC116501*

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RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2011 and 2010 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
As of December 31, 2011 and 2010, the deferred tax assets and liability recognized by the Parent
Company relates to the tax effects of the following:
2011 2010
Deferred tax assets on:
Accrued courier charges P=245,354 P=249,069
Other accrued expenses 184,629 −
Retirement liability − 281,692
Subtotal
Less deferred tax liability on
429,983 530,761
Unrealized foreign exchange gain 361,652 530,761
Retirement asset 68,331 −
Subtotal 429,983 530,761
Net deferred tax assets P=– P=–
The Parent Company did not set up deferred tax assets on the following temporary differences:
2011 2010
Temporary differences on:
Accrued interest P=1,994,506 P=2,074,213
Accrued courier charges − 393,793
Others 808,582 381,961
P=2,803,088 P=2,849,967
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
A reconciliation of the statutory income tax rates and the effective income tax rates in 2011, 2010
and 2009 follows:
2011 2010 2009
Statutory income tax 30.00% 30.00% 30.00%
Tax effects of:
Unrecognized deferred tax asset (0.02) (1.15) (2.59)
Interest income subject to final tax (0.37) (0.57) (0.77)
Nondeductible interest expense 0.37 0.56 0.76
Effective income tax 29.98% 28.84% 27.40%
24. Contingencies
The Parent Company has various contingencies arising in the ordinary conduct of business which
have either pending decision by the courts or are being contested, the outcome of which are not
presently determinable.
*SGVMC116501*

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In the opinion of management and its legal counsel, the eventual liability under these lawsuits or
claims, if any, will not have a material or adverse effect on the Parent Company’s financial
position and results of operations. The information usually required by PAS 37 is not disclosed on
the grounds that it can be expected to prejudice the outcome of these lawsuits, claims and
assessments.
25. Approval of the Release of the Parent Company Financial Statements
The accompanying financial statements of the Parent Company were approved and authorized for
issue by the BOD on March 23, 2012.
26. Supplementary Information Required Under Revenue Regulations No. 19-2011
On December 9, 2011, the BIR issued RR No. 19-2011 prescribing the new income tax forms to
be used effective calendar year 2011. In the case of corporations using BIR Form 1702, the
taxpayer is now required to include as part of its notes to the financial statements, schedules and
information on taxable income and deductions.
In compliance with the requirements set forth by RR 19-2011, the schedule and information of
taxable income and deductions are as follows:
Service income P=490,087,163
Cost of services 175,332,116
314,755,047
Non-Operating Taxable Other Income
Miscellaneous Income 14,350,754
Total Gross Income 329,105,801
Less: Itemized deductions
Salaries and Allowances 89,059,553
Interest 38,322,540
Advertising and promotions 28,248,090
Transportation and travel 21,159,472
Rent 14,230,999
Communication, Light and Water 13,782,359
Office Supplies 8,941,140
Professional fees 8,488,153
Taxes and Licenses 6,726,300
Depreciation and amortization 6,535,059
Representation and entertainment 4,459,545
Insurance 814,865
Repairs and maintenance 691,037
Miscellaneous 7,169,373
Others 3,230,078
251,858,563
Net Taxable Income P=77,247,238
*SGVMC116501*

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27. Supplementary Information Required Under Revenue Regulations No. 15-2010
The Parent Company reported and/or paid the following types of taxes in 2011:
Value added tax (VAT)
The Parent Company’s sales are subject to output VAT while its purchases from other VATregistered
individuals or corporations are subject to input VAT. The VAT rate is 12.0%.
a. Output VAT for 2011
Zero-rated sales of goods and services consist of export sales and those rendered to persons or
entities whose exemptions are provided under special laws or international agreements to
which the Philippines is a signatory.
The Parent Company, being engaged in the business of fund transfer and remittance services
of any form or kind of currencies or monies, is registered as a zero-rated VAT taxpayer under
Section 108 (B)(2) of NIRC .
By way of exception, the Parent Company started collecting service fee from the Social
Security System in July 2011 for contributions remitted by SSS members abroad to the foreign
subsidiary offices of the Parent Company and released subsequently to SSS’s offices by the
Parent Company. The output VAT recognized related to the service fee collected amounts to
P=17,875 as of December 31, 2011.
b. Input VAT
Amount
Balance at January 1, 2011 P=28,493,804
Current year’s domestic purchases/payments for:
Goods other than for resale or manufacture −
Capital goods subject to amortization 24,493
Capital goods not subject to amortization 11,820
Services lodged under other accounts 307,055
Total 28,837,172
Write-off (2,058,616)
Penalty (6,250)
Claims for Tax Credit/Refund (5,529,581)
Balance at December 31, 2011 P=21,242,725
c. Withholding taxes
Details of total remittances in 2011 and balance as of December 31, 2011 of withholding taxes
are as follows:
Total Remittances Balance
Withholding taxes on compensation and benefits P=9,242,698 P=284,404
Expanded withholding taxes 6,400,381 534,725
P=15,643,079 P=819,129
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Taxes and licenses
Other taxes and licenses include all other taxes, local and national, recognized as ‘Taxes and
licenses’. Details follow:
Amount
Documentary stamp taxes:
Applied on loans P=3,708,779
Applied on other transactions 323,286
Licenses and permits 2,163,071
Others 531,164
P=6,726,300
*SGVMC116501*

INDEPENDENT AUDITORS’ REPORT
ON SUPPLEMENTARY SCHEDULES
The Stockholders and the Board of Directors
I-Remit, Inc.
26/F Discovery Centre, 25 ADB Avenue
Ortigas Center, Pasig City
We have audited in accordance with Philippine Standards on Auditing, the financial statements of
I-Remit, Inc. (the Parent Company) and have issued our report thereon dated March 23, 2012. Our
audits were made for the purpose of forming an opinion on the basic financial statements taken as a
whole. The accompanying Schedule of Retained Earnings Available for Dividend Declaration as of
December 31, 2011 is the responsibility of the Parent Company’s management. This schedule is
presented for the purpose of complying with Securities Regulation Code Rule 68.1 and Securities and
Exchange Commission Memorandum Circular No. 11, Series of 2008, and is not part of the basic
financial statements. This schedule has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, fairly states in all material respects the financial
data required to be set forth therein in relation to the basic financial statements taken as a whole.
SYCIP GORRES VELAYO & CO.
Josephine Adrienne A. Abarca
Partner
CPA Certificate No. 92126
SEC Accreditation No. 0466-AR-1 (Group A),
February 11, 2010, valid until February 10, 2013
Tax Identification No. 163-257-145
BIR Accreditation No. 08-001998-61-2009,
June 1, 2009, valid until May 31, 2012
PTR No. 3174577, January 2, 2012, Makati City
March 23, 2012
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Phone: (632) 891 0307
Fax: (632) 819 0872
www.sgv.com.ph
BOA/PRC Reg. No. 0001,
January 25, 2010, valid until December 31, 2012
SEC Accreditation No. 0012-FR-2 (Group A),
February 4, 2010, valid until February 3, 2013
*SGVMC116501*
A member firm of Ernst & Young Global Limited

I-REMIT, INC.
26/F Discovery Centre, 25 ADB Avenue,
Ortigas Center, Pasig City
SCHEDULE OF RETAINED EARNINGS
AVAILABLE FOR DIVIDEND DECLARATION
DECEMBER 31, 2011
Unappropriated retained earnings, as adjusted to available for dividend
distribution, beginning P=161,219,561
Add: Net income earned during the year
Net income during the year 55,506,145
Less: Unrealized foreign exchange gains - net (except those attributable
to cash and cash equivalents) 1,205,505
Subtotal 54,300,640
Add: Realized income categorized as unrealized in previous years 6,419,981
Net income actually earned during the year 60,720,621
Less: Dividend declarations during the year 55,308,800
Treasury shares 12,872,058
Subtotal (7,460,237)
Retained earnings available for dividend distribution, ending P=153,759,324
*SGVMC116501*