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

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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
Page 2: 11111111111111111111I111111111I1111
Page 5 and 6: INFORMATION ON INDEPENDENT ACCOUNTA
Page 7 and 8: COVER SHEET A 2 0 0 1 0 1 6 3 1 SEC
Page 9 and 10: SECURITIES AND EXCHANGE COMMISSION
Page 11 and 12: TABLE OF CONTENTS PART I BUSINESS A
Page 13 and 14: I-Remit currently operates in 24 co
Page 15 and 16: On June 29, 2007, the Board and the
Page 17 and 18: The Company’s general expansion p
Page 19 and 20: Principal Products and Services Thr
Page 21 and 22: I-Remit derives its income from rem
Page 23: I-Remit has the widest coverage in
Page 27 and 28: Dependence Upon a Single Customer o
Page 29 and 30: Principal Terms and Expiration Date
Page 31 and 32: I-Remit has licenses to the followi
Page 33 and 34: Employees The Company has 369 emplo
Page 35 and 36: Market risks, consisting of foreign
Page 37 and 38: The other risks identified are: reg
Page 39 and 40: The delivery of financial services
Page 41 and 42: Current Rent per Month Contract Per
Page 43 and 44: PART II. OPERATIONAL AND FINANCIAL
Page 45 and 46: There were eighteen (18) common sha
Page 47 and 48: (4) Recent Sales of Unregistered or
Page 49 and 50: (2) Management’s Discussion and A
Page 51 and 52: PHP 83.4 million in 2010 to PHP 114
Page 53 and 54: IRemit Global Remittance Limited Pe
Page 55 and 56: The total assets of the Company dec
Page 57 and 58: I-Remit New Zealand Limited Perform
Page 59 and 60: Below are the comparative key perfo
Page 61 and 62: 2008 compared to 2007 I-Remit reali
Page 63 and 64: Worldwide Exchange Pty Ltd Performa
Page 65 and 66: Item 7. Financial Statements The co
Page 67 and 68: The following interpretation and am
Page 69 and 70: Armin V. Demetillo, 43, Filipino Di
Page 71 and 72: Ben C. Tiu, 59, Filipino Director D
Page 73 and 74: In accordance with the requirements
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The names, ages, citizenship, prese
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She obtained her bachelor’s degre
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(4) Involvement in Certain Legal Pr
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Item 11. Security Ownership of Cert
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Item 12. Certain Relationships and
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Item 13. Corporate Governance PART
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Nomination Committee The Nomination
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Evaluation System The Company also
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Also during the aforesaid organizat
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SIGNATURES Pursuant to the requirem
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I-REMIT, INC. AND SUBSIDIARIES NOTE
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- 3 - Statement of Compliance The a
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- 5 - Changes in Accounting Policie
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- 7 - deferred cumulative amount pr
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- 9 - For all other financial instr
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- 11 - Estimates of changes in futu
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- 13 - Gains or losses arising from
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- 15 - Once a financial asset or a
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- 17 - Income Taxes Current tax Cur
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- 19 - Related party relationships
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- 21 - PFRS 13, Fair Value Measurem
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- 23 - d. Discontinued Operations M
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- 25 - As of December 31, 2011 and
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- 27 - The following methods and as
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- 29 - As at December 31, 2011, the
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- 31 - Change in nominal 2010 Chang
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6. Cash and Cash Equivalents This a
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10. Other Current Assets This accou
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Office and Communication Equipment
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- 39 - value of the additional inte
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16. Interest-Bearing Loans - 41 - T
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- 43 - The Group’s objective is t
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The major categories of plan assets
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- 47 - (f) On July 1, 2011, the Par
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- 49 - In the ordinary course of bu
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- 51 - The table below shows the in
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- 53 - Segment information as of an
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- 55 - The results of IRCGmbH’s o
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- 1 - I-REMIT, INC. SCHEDULE OF RET
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- 3 - Schedule II Page 2 of 5 PFRSs
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- 5 - Schedule II Page 4 of 5 Impor
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- 7 - I-REMIT, INC. AND SUBSIDIARIE
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Name of Debtor - 9 - I-Remit, Inc.
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- 11 - I-Remit, Inc. and Subsidiari
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- 13 - I-Remit, Inc. and Subsidiari
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Title of Issue (i) Number of shares
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I-REMIT, INC. NOTES TO PARENT COMPA
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- 3 - The adoption of the following
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- 5 - After initial measurement, ot
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- 7 - If the Parent Company determi
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- 9 - assets or groups of assets, i
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- 11 - actuarial gains and losses a
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- 13 - A change in the ownership in
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- 15 - PFRS 11, Joint Arrangements
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- 17 - d. Contingencies The Parent
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- 19 - As of December 31, 2011 the
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- 21 - The main risks arising from
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- 23 - The following tables set for
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6. Cash and Cash Equivalents This a
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10. Investments in Subsidiaries and
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- 29 - IRCL On October 1, 2004, the
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- 31 - 2009 Balance Sheets Statemen
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13. Beneficiaries and Other Payable
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- 35 - In 2009 and 2008, the Parent
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- 37 - The amounts of retirement ex
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- 39 - (b) A lease agreement with W
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22. Related Party Transactions - 41
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- 43 - The amounts payable to PSAGL
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- 45 - In the opinion of management
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- 47 - Taxes and licenses Other tax
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I-REMIT, INC. 26/F Discovery Centre
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Amended Annual Report for the year ended 31 December 2011 (17-A)

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